Document:

ARC RCA 09.30.2013 EX 10.22 Tiffany Springs Term Loan Agreement

Exhibit 10.22

TERM LOAN AGREEMENT
by and between
ARC TSKCYMO001, LLC, 
a Delaware limited liability company
as Borrower,
and
BANK OF AMERICA, N.A., 
a national banking association,
as Lender,
with respect to 

Tiffany Springs Market Center 
Kansas City, Missouri 

Table of Contents 

Article I    General Information    1
Section 1.1    Conditions to Closing    1
Section 1.2    Schedules    1
Section 1.3    Defined Terms    1
Article II    Terms of the Loan    1
Section 2.1    The Loan    1
Section 2.2    Initial Advance    1
Section 2.3    Holdback for Tenant Improvements and Leasing Commissions    1
Section 2.4    Automatic Deduction    2
Section 2.5    Liability of Lender    2
Section 2.6    Release    2
Article III    Representations and Warranties    3
Section 3.1    Organization, Power and Authority of Borrower; Loan Documents    3
Section 3.2    Other Documents; Laws    3
Section 3.3    Taxes    3
Section 3.4    Legal Actions    3
Section 3.5    Nature of Loan    3
Section 3.6    Trade Names    4
Section 3.7    Financial Statements    4
Section 3.8    No Material Adverse Change    4
Section 3.9    ERISA and Prohibited Transactions    4
Section 3.10    Compliance with Laws and Zoning and Other Requirements; Encroachments    4
Section 3.11    Certificates of Occupancy    5
Section 3.12    Utilities; Roads; Access    5
Section 3.13    Other Liens    5
Section 3.14    No Defaults    5
Section 3.15    Affirmation of Representations and Warranties; Draw Requests    5
Article IV    Affirmative Covenants and Agreements    5
Section 4.1    Compliance with Laws; Use of Proceeds    6
Section 4.2    Inspections; Cooperation    6
Section 4.3    Payment and Performance of Contractual Obligations    6
Section 4.4    Insurance    6
Section 4.5    Adjustment of Condemnation and Insurance Claims    8
Section 4.6    Utilization of Net Proceeds    8
Section 4.7    Management    9
Section 4.8    Books and Records; Financial Statements; Tax Returns    10
Section 4.9    Estoppel Certificates    11
Section 4.10    Taxes; Tax Receipts    11

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Section 4.11    Lender’s Rights to Pay and Perform    11
Section 4.12    Reimbursement; Interest    11
Section 4.13    Notification by Borrower    11
Section 4.14    Release and Indemnification by Borrower    11
Section 4.15    Fees and Expenses    12
Section 4.16    Appraisals    12
Section 4.17    Leasing and Tenant Matters    13
Section 4.18    Preservation of Rights    13
Section 4.19    Income from Property; Distributions    13
Section 4.20    Representations and Warranties    13
Section 4.21    Deposit Accounts; Principal Depository    13
Section 4.22    Reserve Deposits    14
Section 4.23    INTENTIONALLY DELETED    14
Section 4.24    Swap Contracts    14
Section 4.25    Notice to Lender    14
Section 4.26    Intentionally Deleted    14
Section 4.27    Intentionally Deleted    14
Section 4.28    Lender’s Rights    14
Section 4.29    Financial Covenants    14
Article V    Negative Covenants.    15
Section 5.1    Conditional Sales    15
Section 5.2    Insurance Policies and Bonds    15
Section 5.3    Additional Debt    15
Section 5.4    Intentionally Omitted    15
Section 5.5    Commingling; Transfers of Ownership of Borrower    15
Article VI    Events of Default    16
Section 6.1    Payment Default    16
Section 6.2    Default Under Other Loan Documents    16
Section 6.3    Accuracy of Information; Representations and Warranties    16
Section 6.4    Deposits    16
Section 6.5    Insurance Obligations    16
Section 6.6    Other Obligations    16
Section 6.7    Damage to Improvements    17
Section 6.8    Intentionally Deleted    17
Section 6.9    Mechanic’s Lien    17
Section 6.10    Bankruptcy    17
Section 6.11    Appointment of Receiver, Trustee, Liquidator    17
Section 6.12    Intentionally Deleted    17
Section 6.13    Judgment    17
Section 6.14    Dissolution; Change in Business Status    17
Section 6.15    Default Under Other Indebtedness    18
Section 6.16    Intentionally Deleted    18
Section 6.17    Change in Controlling Interest    18
Section 6.18    Material Adverse Effect    18

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Section 6.19    Default Under Major Lease    18
Section 6.20    Financial Covenants    18
Article VII    Remedies on Event of Default    18
Section 7.1    Remedies on Event of Default    18
Section 7.2    No Release or Waiver; Remedies Cumulative and Concurrent    20
Article VIII    Miscellaneous.    20
Section 8.1    Further Assurances; Authorization to File Documents    20
Section 8.2    No Warranty by Lender    21
Section 8.3    Standard of Conduct of Lender    21
Section 8.4    No Partnership    21
Section 8.5    Severability    21
Section 8.6    Authorized Signers    21
Section 8.7    Notices    21
Section 8.8    Permitted Successors and Assigns; Disclosure of Information    23
Section 8.9    Modification; Waiver    23
Section 8.10    Third Parties; Benefit    24
Section 8.11    Rules of Construction    24
Section 8.12    Counterparts    24
Section 8.13    Publicity    24
Section 8.14    Governing Law    24
Section 8.15    Time of Essence    25
Section 8.16    Electronic Communications    25
Section 8.17    Forum    25
Section 8.18    WAIVER OF JURY TRIAL    26
Section 8.19    USA Patriot Act Notice    26
Section 8.20    Entire Agreement    27

Schedules to Term Loan Agreement

Schedule 1    Definitions
Schedule 2    Tenant Improvements and Leasing Commissions
Schedule 2A    Budget for Tenant Improvements and Leasing Commissions
Schedule 3    Form of Draw Request
Schedule 4    Leasing and Tenant Matters
Schedule 5    Loan Reserves
Schedule 6    Form of Compliance Certificate
Schedule 7    Swap Contracts
Schedule 8    Release Prices
Schedule 9    Minimum Rent

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TERM LOAN AGREEMENT
This TERM LOAN AGREEMENT (this “Agreement”) is made as of the 26th day of September, 2013 by and between ARC TSKCYMO001, LLC, a Delaware limited liability company (“Borrower”), and BANK OF AMERICA, N.A., a national banking association (“Lender”).
Recitals
Borrower has applied to Lender for a loan for the purpose of acquiring the real property and improvements as security for the loan.  Lender has agreed to make the loan on the terms and conditions set forth in this Agreement and in the other documents evidencing and securing the loan.
Now, therefore, in consideration of the premises, and in further consideration of the mutual covenants and agreements herein set forth and of the sum of Ten Dollars ($10.00) paid by each party to the other, receipt of which is hereby acknowledged, the parties covenant and agree as follows:
Agreements 

Article I
General Information

Section 1.1    Conditions to Closing

The conditions precedent to closing the Loan and recording the Deed of Trust are set forth in the Closing Checklist.
Section 1.2    Schedules
The Schedules attached to this Agreement are incorporated herein and made a part hereof.
Section 1.3    Defined Terms
Capitalized terms in this Agreement shall have the meanings ascribed to such terms in the Preamble hereto and in Schedule 1.
 
Article II
Terms of the Loan

Section 2.1    The Loan

Borrower agrees to borrow the Loan from Lender, and Lender agrees to lend the Loan to Borrower, subject to the terms and conditions herein set forth, in an amount not to exceed the Loan Amount.  Interest shall accrue and be payable in arrears only on sums advanced hereunder for the period of time outstanding.  The Loan is not a revolving loan; amounts repaid may not be re-borrowed.

Section 2.2    Initial Advance
    
At closing, Lender shall advance Loan proceeds in the amounts, and to the parties, specified in the closing statement agreed upon between Borrower and Lender.

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Section 2.3    Holdback for Tenant Improvements and Leasing Commissions
At closing, Lender will establish the TILC Holdback.  Lender will advance the TILC Holdback funds in accordance with the terms and conditions of Schedule 2 to reimburse Borrower for costs and expenses incurred by Borrower for Tenant Improvements and Leasing Commissions.
Section 2.4    Automatic Deduction
(a)    Throughout the term of the Loan, Borrower shall maintain the Checking Account in good standing with Lender.  Borrower hereby grants to Lender a security interest in the Checking Account, and any other accounts and deposit accounts from which Borrower may from time to time authorize Lender to debit payments due on the Loan, for the purpose of securing the Obligations.
(b)    Borrower agrees that regularly-scheduled monthly payments on the Note will be deducted automatically on their due dates from the Checking Account.  Lender shall, and is hereby authorized to apply the amounts so debited to Borrower’s obligations under the Loan.  Notwithstanding the foregoing, Lender will not automatically deduct the principal payment at maturity from the Checking Account, or deduct Prepaid Principal (as defined in the Note) without the prior written consent of Borrower.
(c)    Lender will debit the Checking Account on the dates the regularly-scheduled monthly payments become due.  If a due date does not fall on a Banking Day, Lender will debit the Checking Account on the first Banking Day following the due date.
(d)    Borrower shall maintain sufficient funds in the Checking Account on the dates Lender enters debits authorized by this Agreement.  If there are insufficient funds in the Checking Account on the date Lender enters any debit authorized by this Agreement, without limiting Lender’s other remedies in such an event, the debit will be reversed in whole or in part, in Lender’s sole and absolute discretion, and such amount not debited shall be deemed to be unpaid and shall be due and payable in accordance with the terms of the Note, and subject to any grace period set forth therein.
Section 2.5    Liability of Lender
Lender shall in no event be responsible or liable to any Person other than Borrower for the disbursement of or failure to disburse the Loan proceeds or any part thereof and no Person other than Borrower shall have any right or claim against Lender under this Agreement or the other Loan Documents as a result of any disbursement or failure to disburse.
Section 2.6    Release
Borrower shall be entitled to obtain a release of the liens created by the Deed of Trust on one or more pad sites at the Property and the Improvements related thereto, as depicted on the Survey (the “Proposed Release Parcel”), and upon the following terms and conditions:
(a)    The Proposed Release Parcel is a lawfully-created separate tax parcel, and Lender has approved in its reasonable discretion any declarations or cross-easements requested of Borrower in connection with such release;
(b)    No Event of Default has occurred and has not been waived by Lender at the time of such request, or will result after giving effect to the release; and 

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(c)    Borrower shall pay the applicable Release Price. 
Concurrent with receipt of the Release Payment and subject to compliance by Borrower with this section, Lender shall release all liens and security interests created by the Loan Documents covering the applicable Proposed Release Parcel.  After such release, Lender shall terminate or authorize Borrower to terminate of record any UCC financing statements relating thereto.  Borrower shall be required to pay all expenses of Lender and its reasonable fees of outside counsel in connection with any such release.
Article IIIRepresentations and Warranties

Borrower represents and warrants to Lender that:
Section 3.1    Organization, Power and Authority of Borrower; Loan Documents
Borrower (a) is a limited liability company duly organized, existing and in good standing under the Laws of the state in which it is organized and is duly qualified to do business and in good standing in the state in which the Land is located (if different from the state of its formation), and (b) has the power, authority and legal right to own its property and carry on the business now being conducted by it and to engage in the transactions contemplated by the Loan Documents.  The Loan Documents to which Borrower is a party have been duly executed and delivered by Borrower, and the execution and delivery of, and the carrying out of the transactions contemplated by, such Loan Documents, and the performance and observance of the terms and conditions thereof, have been duly authorized by all necessary organizational action by and on behalf of Borrower.  The Loan Documents to which Borrower is a party constitute the valid and legally binding obligations of Borrower and are fully enforceable against Borrower in accordance with their respective terms, except to the extent that such enforceability may be limited by principles of equity, Laws relating to bankruptcy and insolvency and those generally affecting the enforcement of creditors’ rights.
Section 3.2    Other Documents; Laws
The execution and performance of the Loan Documents to which Borrower is a party and the consummation of the transactions contemplated thereby will not conflict with, result in any breach of, or constitute a default under, the organizational documents of Borrower, or to Borrower’s current, actual knowledge, any contract, agreement, document or other instrument to which Borrower is a party or by which Borrower or any of its properties may be bound or affected, and such execution and performance of the Loan Documents do not and will not violate or contravene any Law to which Borrower is subject.
Section 3.3    Taxes
To the extent required by Laws, Borrower has filed all federal, state, county and municipal Tax returns required to have been filed by Borrower and has paid all Taxes which have become due pursuant to such returns or pursuant to any Tax assessments received by Borrower.
Section 3.4    Legal Actions
There are no Claims or investigations by or before any court or Governmental Authority, pending, or to Borrower’s current, actual knowledge, threatened against or affecting Borrower, Borrower’s business or the Property which have not been disclosed in writing to Lender.  Borrower is not in default with respect to any order, writ, injunction, decree or demand of any court or any Governmental Authority affecting Borrower or the Property.

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Section 3.5    Nature of Loan
Borrower is a business or commercial organization.  The Loan is being obtained solely for business or investment purposes, and will not be used for personal, family, household or agricultural purposes.  
Section 3.6    Trade Names
Borrower conducts its business solely under the name set forth in the Preamble to this Agreement and makes use of no trade names in connection therewith, unless such trade names have been previously disclosed to Lender in writing.
Section 3.7    Financial Statements
The financial statements heretofore delivered for Borrower and Guarantor to Lender are true and correct in all material respects, have been prepared in accordance with sound accounting principles consistently applied, and fairly present the respective financial conditions of the subjects thereof as of the respective dates thereof.  
Section 3.8    No Material Adverse Change
No material adverse change has occurred in the financial conditions reflected in the financial statements of Borrower or Guarantor since the respective dates of such statements, and no material additional liabilities have been incurred by Borrower since the dates of such statements other than the borrowings contemplated herein or as approved in writing by Lender.
Section 3.9    ERISA and Prohibited Transactions
As of the date hereof and throughout the term of the Loan: (a) Borrower is not and will not be (i) an “employee benefit plan,” as defined in Section 3(3) of ERISA, (ii) a “governmental plan” within the meaning of Section 3(32) of ERISA, or (iii) a “plan” within the meaning of Section 4975(e) of the Code; (b) the assets of Borrower do not and will not constitute “plan assets” within the meaning of the United States Department of Labor Regulations set forth in Section 2510.3-101 of Title 29 of the Code of Federal Regulations; (c) transactions by or with Borrower are not and will not be subject to state statutes applicable to Borrower regulating investments of fiduciaries with respect to governmental plans; and (d) Borrower will not engage in any transaction that would cause any Obligation or any action taken or to be taken hereunder (or the exercise by Lender of any of its rights under the Deed of Trust or any of the other Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA or Section 4975 of the Code.  Borrower agrees to deliver to Lender such certifications or other evidence of compliance with the provisions of this Section as Lender may from time to time request.
Section 3.10    Compliance with Laws and Zoning and Other Requirements; Encroachments
To Borrower’s current, actual knowledge, Borrower is in compliance with the requirements of all applicable Laws.  To Borrower’s current, actual knowledge, and except as disclosed by any environmental report, physical condition report, zoning report, or estoppel certificate delivered to Lender prior to the date hereof, (a) the use of the Property complies with applicable zoning ordinances, regulations, deed restrictions and restrictive covenants affecting the Land, (b) all use and other requirements of any Governmental Authority having jurisdiction over the Property have been satisfied, and (c) no violation of any Law exists with respect to the Property.
To Borrower’s current, actual knowledge, and except as disclosed on the Survey, any zoning report, or in any estoppel certificates delivered to Lender prior to the date hereof, the Improvements (i) are constructed entirely on the Land and do not encroach upon any easement or right-of-way, or upon the land of others, and (ii) comply with all 

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applicable building restriction lines and set-backs, however established, and are in strict compliance with all applicable use or other restrictions and the provisions of all applicable agreements, declarations and covenants and all applicable zoning and subdivision ordinances and regulations.
Section 3.11    Certificates of Occupancy
To Borrower’s current, actual knowledge, all certificates of occupancy and other permits and licenses necessary or required in connection with the use and occupancy of the Improvements have been validly issued.
Section 3.12    Utilities; Roads; Access
All utility services necessary for the operation of the Improvements for their intended purposes have been fully installed, including telephone service, cable television, water supply, storm and sanitary sewer facilities, natural gas and electric facilities, including cabling for telephonic and data communication, and the capacity to send and receive wireless communication.
All roads and other accesses necessary to serve the Land and Improvements have been completed, are serviceable in all weather and where required by the appropriate Governmental Authority, have been dedicated to and formally accepted by such Governmental Authority.
Section 3.13    Other Liens
Excepting contracts and agreements provided to Lender prior to the date hereof, Borrower has made no contract or arrangement of any kind the performance of which by the other party thereto would give rise to a lien on the Property.  Prior to the recordation of the Deed of Trust, Borrower has not caused any work of any kind (including destruction or removal of any existing improvements, site work, clearing, grading, grubbing, draining or fencing of the Land) to be commenced or performed on the Land, and has not contracted for the supplying of labor, materials, or services for the design or construction of the Improvements, which could cause a mechanic's or materialman's lien or similar lien to achieve priority over the Deed of Trust or the rights of Lender thereunder.
Section 3.14    No Defaults
There is no Default or Event of Default under any of the Loan Documents, and, to Borrower’s current, actual knowledge, there is no default or event of default under any material contract, agreement or other document related to the construction or operation of the Improvements which would have a Material Adverse Effect.
Section 3.15    Affirmation of Representations and Warranties; Draw Requests
Each draw request or other request for an advance hereunder and each receipt of the funds requested thereby shall constitute an affirmation that:  (a) no uncured Default or Event of Default has occurred hereunder; and (b) the foregoing representations and warranties of Borrower are true and correct as of the date of the draw request or other request for an advance and, unless Lender is notified to the contrary prior to the disbursement of the advance requested, will be so on the date of the disbursement.
 
Article IV
Affirmative Covenants and Agreements

Borrower covenants as of the date hereof and until such time as all Obligations shall be indefeasibly paid and performed in full, that:

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Section 4.1    Compliance with Laws; Use of Proceeds
Borrower and the Property shall comply with all Laws and all orders, writs, injunctions, decrees and demands of any court or any Governmental Authority affecting Borrower or the Property.  Borrower shall use all proceeds of the Loan for the purposes contemplated herein and which are not in contravention of any Law or any Loan Document.
Section 4.2    Inspections; Cooperation
Subject to the rights of other parties under Leases, Borrower shall permit representatives of Lender to enter upon the Land, to inspect the Improvements and any and all materials to be used in connection with any construction at the Property, including any construction of tenant improvements, to examine all detailed plans and shop drawings and similar materials as well as all books and records of Borrower (regardless of where maintained) and all supporting vouchers and data and to make copies and extracts therefrom and to discuss the affairs, finances and accounts pertaining to the Loan and the Improvements with representatives of Borrower.  Borrower shall at all times cooperate and cause each and every one of its contractors, subcontractors and material suppliers to cooperate with the representatives of Lender in connection with or in aid of the performance of Lender’s functions under this Agreement.  Except in the event of an emergency, Lender shall give Borrower at least twenty-four (24) hours’ notice by telephone in each instance before entering upon the Land and/or exercising any other rights granted in this Section, shall cause such entry to be made only during ordinary business hours (or such other mutually agreeable time) and subject to the rights of other parties under the Leases.
Section 4.3    Payment and Performance of Contractual Obligations
Borrower shall perform in a timely manner all of its obligations under any and all contracts and agreements related to any construction activities at the Property or the maintenance or operation of the Improvements, and Borrower will pay when due all bills for services or labor performed and materials supplied in connection with such construction, maintenance and/or operation.  Within thirty (30) days after receipt of written notice of the filing of any mechanic’s lien or other lien or encumbrance against the Property other than Permitted Encumbrances, Borrower will promptly discharge the same by payment or filing a bond or otherwise as permitted by Law or, at Borrower’s option, otherwise protect against losses relating to same in a manner satisfactory to Beneficiary.  So long as Lender’s security has been protected by the filing of a bond or otherwise in a manner satisfactory to Lender in its sole and absolute discretion, Borrower shall have the right to contest in good faith any claim, lien or encumbrance, provided that Borrower does so diligently and without prejudice to Lender or material delay in completing construction of any tenant improvements.
Section 4.4    Insurance
Borrower shall maintain the following insurance at its sole cost and expense:
(d)    Insurance against Casualty to the Property under a policy or policies covering such risks as are presently included in “special form” (also known as “all risk”) coverage, including such risks as are ordinarily insured against by similar businesses, but in any event including fire, lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, damage from aircraft, smoke, vandalism, malicious mischief and acts of terrorism.  Such insurance shall name Lender as mortgagee and loss payee.  Unless otherwise agreed in writing by Lender, such insurance shall be for the full insurable value of the Property on a replacement cost basis, with a deductible amount, if any, satisfactory to Lender.  No policy of insurance shall be written such that the proceeds thereof will produce less than the minimum coverage required by this Section by reason of co-insurance provisions or otherwise.  The term “full insurable value” means one hundred percent (100%) of the actual replacement cost of the Property, including tenant improvements (excluding excavation costs and costs of underground flues, pipes, drains and other uninsurable items).  

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(e)    Commercial general liability insurance on an “occurrence” basis against claims for “personal injury” liability and liability for death, bodily injury and damage to property, products and completed operations, in limits satisfactory to Lender with respect to any one occurrence and the aggregate of all occurrences during any given annual policy period.  Such insurance shall name Lender as an additional insured.
(f)    Workers’ compensation insurance for all employees of Borrower in such amount as is required by Law and including employer’s liability insurance, if required by Lender.
(g)    During any period of construction of tenant improvements, Borrower shall maintain, or cause others to maintain, such insurance as may be required by Lender of the type customarily carried in the case of similar construction for one hundred percent (100%) of the full replacement cost of materials stored at or upon the Property.  During any period of other construction upon the Property, Borrower shall maintain, or cause others to maintain, builder’s risk insurance (non-reporting form) of the type customarily carried in the case of similar construction for one hundred percent (100%) of the full replacement cost of work in place and materials stored at or upon the Property.
(h)    If at any time any portion of any structure on the Property is insurable against Casualty by flood and is located in a Special Flood Hazard Area under the Flood Disaster Protection Act of 1973, as amended, a flood insurance policy on the structure and Borrower owned contents in form and amount acceptable to Lender but in no amount less than the amount sufficient to meet the requirements of applicable Law as such requirements may from time to time be in effect.
(i)    Loss of rental value insurance and business interruption insurance in an amount equal to twelve (12) months of the projected gross income of the Property.
(j)    Such other and further insurance as may be required from time to time by Lender in order to comply with regular requirements and practices of Lender in similar transactions including, if required by Lender, boiler and machinery insurance, pollution liability insurance, wind insurance and earthquake insurance, so long as any such insurance is generally available at commercially reasonable premiums as determined by Lender from time to time.
Each policy of insurance (i) shall be issued by one or more insurance companies each of which must have an A.M. Best Company financial and performance rating of A-VIII or better and are qualified or authorized by the Laws of the State to assume the risks covered by such policy, (ii) with respect to the insurance described under the preceding Subsections (a), (d), (e) and (f), shall have attached thereto standard non-contributing, non-reporting mortgagee clauses in favor of and entitling Lender without contribution to collect any and all proceeds payable under such insurance, either as sole payee or as joint payee with Borrower, (iii) shall provide that such policy shall not be canceled or modified without at least thirty (30) days prior written notice to Lender, and (iv) shall provide that any loss otherwise payable thereunder shall be payable notwithstanding any act or negligence of Borrower which might, absent such agreement, result in a forfeiture of all or a part of such insurance payment.  Borrower shall promptly pay all premiums when due on such insurance and, not less fifteen (15) days prior to the expiration dates of each such policy, Borrower will deliver to Lender acceptable evidence of insurance, such as certificates of insurance marked “premium paid” or other evidence satisfactory to Lender reflecting that all required insurance is current and in force.  Borrower will immediately give Notice to Lender of any cancellation of, or change in, any insurance policy.  Lender shall not, because of accepting, rejecting, approving or obtaining insurance, incur any liability for (A) the existence, nonexistence, form or legal sufficiency thereof, (B) the solvency of any insurer, or (C) the payment of losses.  Borrower may satisfy any insurance requirement hereunder by providing one or more “blanket” insurance policies, subject to Lender’s approval in each instance as to limits, coverages, forms, deductibles, inception and expiration dates, and cancellation provisions.

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TEXAS FINANCE CODE §307.052 COLLATERAL PROTECTION INSURANCE NOTICE.  BORROWER IS REQUIRED TO:  (I) KEEP THE PROPERTY INSURED AGAINST DAMAGE IN THE AMOUNT EQUAL TO THE FULL REPLACEMENT COST OF THE PROPERTY; (II) PURCHASE THE INSURANCE FROM AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN THE STATE OF TEXAS OR AN ELIGIBLE SURPLUS LINES INSURER; AND (III) NAME LENDER AS THE PERSON TO BE PAID UNDER THE POLICY IN THE EVENT OF LOSS.  BORROWER MUST, IF REQUIRED BY LENDER, DELIVER TO LENDER A COPY OF THE POLICY AND PROOF OF THE PAYMENT OF PREMIUMS.  IF BORROWER FAILS TO MEET ANY REQUIREMENT LISTED IN THE FIRST TWO SENTENCES OF THIS PARAGRAPH, LENDER MAY OBTAIN COLLATERAL PROTECTION INSURANCE ON BEHALF OF BORROWER AT BORROWER'S EXPENSE.
Section 4.5    Adjustment of Condemnation and Insurance Claims
Borrower shall give prompt Notice to Lender of any Casualty or Borrower’s receipt of written notice of any Condemnation or threatened Condemnation.  Lender is authorized, at its sole and absolute option, to commence, appear in and prosecute, in its own or Borrower’s name, any action or proceeding relating to any Condemnation or Casualty, and to make proof of loss for and to settle or compromise any Claim in connection therewith; provided, that, Lender shall provide Borrower Notice of its intent to so act so long as not Event of Default has occurred which has not been waived by Lender.  In such case, Lender shall have the right to receive all Condemnation Awards and Insurance Proceeds, and may deduct therefrom any and all of its Expenses.  However, so long as no Event of Default has occurred and has not been waived by Lender, and Borrower is diligently pursuing its rights and remedies with respect to a Claim, Lender will obtain Borrower’s written consent (which consent shall not be unreasonably withheld or delayed) before making proof of loss for or settling or compromising such Claim.  Borrower agrees to diligently assert its rights and remedies with respect to each Claim and to promptly pursue the settlement and compromise of each Claim subject to Lender’s approval, which approval shall not be unreasonably withheld or delayed.  If, prior to the receipt by Lender of any Condemnation Award or Insurance Proceeds, the Property shall have been sold pursuant to the provisions of the Deed of Trust, Lender shall have the right to receive such funds (a) to the extent of any deficiency found to be due upon such sale with interest thereon (whether or not a deficiency judgment on the Deed of Trust shall have been sought or recovered or denied), and (b) to the extent necessary to reimburse Lender for its Expenses.  If any Condemnation Awards or Insurance Proceeds are paid to Borrower, Borrower shall receive the same in trust for Lender.  Within ten (10) days after Borrower’s receipt of any Condemnation Awards or Insurance Proceeds, Borrower shall deliver such awards or proceeds to Lender in the form in which they were received, together with any endorsements or documents that may be necessary to effectively negotiate or transfer the same to Lender.  Borrower agrees to execute and deliver from time to time, upon the request of Lender, such further instruments or documents as may be requested by Lender to confirm the grant and assignment to Lender of any Condemnation Awards or Insurance Proceeds.  Notwithstanding the foregoing, Borrower shall have the right, without the consent of Lender, to settle and/or compromise any Claims relating to a Condemnation or Casualty, the value of which is $1,000,000 or less and so long as no Event of Default or Trigger Period has occurred.
Section 4.6    Utilization of Net Proceeds
(a)    Net Proceeds must be utilized either for payment of the Obligations or for the restoration of the Property; provided, that, except during an Event of Default or Trigger Period, if the Net Proceeds are less than $1,000,000, the net proceeds shall be utilized for the restoration of the Property unless Borrower agrees to apply same to the Obligations.  Otherwise, Net Proceeds may be utilized for the restoration of the Property only if no Event of Default shall then exist and only if in the reasonable judgment of Lender (i) there has been no material adverse change in the financial viability of the Improvements (as may be restored after such Casualty or Condemnation), (ii) the Net Proceeds, together with other funds deposited with Lender for that purpose, are sufficient to pay the cost of the restoration pursuant to a budget and plans and specifications approved by Lender, not to be unreasonably withheld, conditioned 

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or delayed, (iii) the restoration can be completed prior to the final maturity of the Loan and prior to the date required by any permanent loan commitment or any purchase and sale agreement or by any Lease affecting more than 10,000 square feet, and (iv) following restoration, the Property will have a loan-to-value ratio no higher than that existing immediately prior to such Casualty or Condemnation, based on a new “as-is” appraisal adjusted by Lender to include the projected net operating income from the to-be-restored portion of the Property.  Otherwise, Net Proceeds shall be utilized for payment of the Obligations.
(b)    If Net Proceeds are to be utilized for the restoration of the Property, the Net Proceeds, together with any other funds deposited with Lender for that purpose, must be deposited in a Borrower’s Deposit Account, which shall be an interest-bearing account, with all accrued interest to become part of Borrower’s deposit.  Borrower agrees that it shall include all interest and earnings on any such deposit as its income (and, if Borrower is a partnership or other pass-through entity, the income of its partners, members or beneficiaries, as the case may be), and shall be the owner of all funds on deposit in the Borrower’s Deposit Account for federal and applicable state and local tax purposes.  Subject to the obligations of Lender to disburse Net Proceeds under subsection (a) above and this subsection (b), Lender shall have the exclusive right to manage and control all funds in the Borrower’s Deposit Account, but Lender shall have no fiduciary duty with respect to such funds.  Prior to the advance by Lender of any funds so deposited and the commencement of such restoration, Borrower shall take all steps necessary to avoid the imposition of any mechanics’ liens on the Property or the Improvements.  Thereafter, Lender will advance the deposited funds from time to time to Borrower for the payment of costs of restoration of the Property upon presentation of evidence acceptable to Lender that such restoration has been completed satisfactorily and lien-free.  If at any time Lender reasonably determines that there is a deficiency in the funds available in the Borrower’s Deposit Account to complete the restoration as contemplated, then Borrower will promptly deposit in the Borrower’s Deposit Account additional funds equal to the amount of the deficiency.  Any account fees and charges may be deducted from the balance, if any, in the Borrower’s Deposit Account.  Borrower grants to Lender a security interest in the Borrower’s Deposit Account and all funds hereafter deposited to such deposit account, and any proceeds thereof, as security for the Obligations.  Such security interest shall be governed by the Uniform Commercial Code of the State, and Lender shall have available to it all of the rights and remedies available to a secured party thereunder.  The Borrower’s Deposit Account may be established and held in such name or names as Lender shall deem appropriate, including in the name of Lender.  Borrower hereby constitutes and appoints Lender and any officer or agent of Lender its true and lawful attorneys-in-fact with full power of substitution to open the Borrower’s Deposit Account and to do any and every act that Borrower might do on its own behalf to fulfill the terms of this Section 4.6.  To the extent permitted by Law, Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.  It is understood and agreed that this power of attorney, which shall be deemed to be a power coupled with an interest, cannot be revoked.
Section 4.7    Management
Borrower at all times shall provide for the competent and responsible management and operation of the Property.  At all times, Borrower shall cause the Property to be managed by an Approved Manager.  All management contracts affecting the Property shall be terminable upon thirty (30) days’ written notice without penalty or charge (except for unpaid accrued management fees and costs thereunder).  Any management contract or other contracts affecting the Property, which other contracts are for amounts in excess of $100,000.00, must be approved in writing by Lender (such approval not to be unreasonably withheld, conditioned or delayed) prior to the execution of the same.  In the event that Lender fails to respond to Borrower’s initial written request for approval of a new Manager or any contract for which Borrower requests Lender’s approval within ten (10) Banking Days after Lender’s receipt thereof, Borrower shall resubmit such request, with the notation “IMMEDIATE RESPONSE REQUIRED.  FAILURE TO RESPOND TO THIS REQUEST FOR APPROVAL WITHIN TEN (10) BANKING DAYS AFTER LENDER’S RECEIPT SHALL CONSTITUTE DEEMED APPROVAL BY LENDER” prominently displayed in bold, all caps and fourteen (14) point or larger font.  If Lender does not approve or reject the proposed new Manager within ten (10) Banking Days after Lender’s receipt of the resubmitted written request, Lender shall be deemed to have approved such Manager.

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Section 4.8    Books and Records; Financial Statements; Tax Returns
Borrower shall provide or cause to be provided to Lender all of the following:
(a)    For Borrower, a balance sheet and an income statement, for each fiscal year of such reporting party, within one-hundred twenty (120) days after the close of such fiscal year.
(b)    For Guarantor, (i) annual financial statements comprised of a balance sheet, an income statement, and disclose contingent liabilities in the notes to the financial statements for each fiscal year of such reporting party, within one-hundred twenty (120) days after the end of each fiscal year of such reporting party, and (ii) balance sheets and income statements for each fiscal quarter ending of March 31, June 30, and September 30 of such reporting party, within sixty (60) days after the close of such fiscal quarters.
(c)    Prior to the beginning of each calendar year, a capital and operating budget for the Property.
(d)    For each quarter  (and for the fiscal year through the end of that quarter), and, during a Trigger Period, for each month, (i) property operating statements which include all income and expenses in connection with the Property, and (ii) rent rolls, including in each case a comparison to the budget, within sixty (60) days after the end of each such quarter, and, during a Trigger Period, thirty (30) days after the end of each month, certified in writing as true and correct by a representative of Borrower satisfactory to Lender or an officer of Borrower or Managing Member.  Items provided under this paragraph shall be in form and detail reasonably satisfactory to Lender.
(e)    Within sixty (60) days after the end of each fiscal quarter of Borrower, Borrower shall submit a Compliance Certificate evidencing compliance with the covenants set forth in Section 4.29 of this Agreement.  During any Trigger Period, Borrower shall submit a statement of Excess Cash Flow within thirty (30) days of the end of each month.
(f)    From time to time promptly after Lender’s request, such additional information, reports and statements respecting the Property and the Improvements, or the business operations and financial condition of each reporting party, as Lender may reasonably request.
Borrower will keep and maintain full and accurate books and records administered in accordance with sound accounting principles, consistently applied, showing in detail the earnings and expenses of the Property and the operation thereof.  All financial statements shall be in form and detail reasonably satisfactory to Lender and shall contain or be attached to the signed and dated written certification of the reporting party in form acceptable to Lender to certify that the financial statements are furnished to Lender in connection with the extension of credit by Lender and constitute a true and correct statement of the reporting party’s financial position.  All certifications and signatures on behalf of corporations, partnerships, limited liability companies or other entities shall be by a representative of the reporting party satisfactory to Lender, or an officer of Borrower or Managing Member for certifications with respect to Borrower, or an officer of Guarantor for certifications by Guarantor.  All fiscal year-end financial statements of Borrower and quarterly financial statements of Guarantor may be prepared by the reporting party.  All fiscal year-end financial statements of Guarantor shall be audited and certified, without any qualification or exception not acceptable to Lender, by independent certified public accountants reasonably acceptable to Lender (it being acknowledged and agreed that the firms of Grant Thornton LLP and WeizerMazars LLP shall be deemed acceptable to Lender), and shall contain all reports and disclosures required by generally accepted accounting principles for a fair presentation.  Additionally, Borrower will provide Lender at Borrower’s expense with all evidence that Lender may from time to time reasonably request as to compliance with all provisions of the Loan Documents.  Borrower shall promptly notify Lender of any event or condition known to Borrower that, to Borrower’s current, actual knowledge, is that could reasonably be expected to cause a Material Adverse Effect in the financial condition of Borrower or Guarantor.

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Section 4.9    Estoppel Certificates
Within ten (10) days after any written request by Lender or a proposed assignee or purchaser of the Loan or any interest therein, but not more than one (1) time per calendar year (unless an Event of Default has occurred and has not been waived in writing by Lender), Borrower shall certify in writing to Lender, or to such proposed assignee or purchaser, whether Borrower claims any right of defense or setoff to the payment or performance of any of the Obligations, and if Borrower claims any such right of defense or setoff, Borrower shall give a detailed written description of such claimed right.
Section 4.10    Taxes; Tax Receipts
Borrower shall pay and discharge all Taxes prior to the date on which penalties are attached thereto unless and to the extent only that such Taxes are contested in accordance with the terms of the Deed of Trust.  So long as Borrower complies with the terms of Schedule 5 of this Agreement, Lender shall advance funds that have been deposited for Taxes as provided in Schedule 5 of this Agreement.  If Borrower fails, following written demand from Lender, to provide Lender the tax receipts as and when required under the Deed of Trust, without limiting any other remedies available to Lender, Lender may, at Borrower’s sole expense, obtain and enter into a tax services contract with respect to the Property with a tax reporting agency satisfactory to Lender.
Section 4.11    Lender’s Rights to Pay and Perform
If, after any required notice, Borrower fails to promptly pay or perform any of the Obligations within any applicable grace or cure periods, Lender, without Notice to or demand upon Borrower, and without waiving or releasing any Obligation or Default, may (but shall be under no obligation to) at any time thereafter make such payment or perform such act for the account and at the expense of Borrower.  Subject to the limitations on entry set forth in Section 4.2, Lender may enter upon the Property for that purpose and take all action thereon as Lender considers necessary or appropriate.
Section 4.12    Reimbursement; Interest
If Lender shall incur any Expenses or pay any Claims by reason of the Loan or the rights and remedies provided under the Loan Documents (regardless of whether or not any of the Loan Documents expressly provide for an indemnification by Borrower against such Claims), Lender’s payment of such Expenses and Claims shall constitute advances to Borrower which shall be paid by Borrower to Lender on demand, together with interest thereon from the date incurred until paid in full at the rate of interest then applicable to the Loan under the terms of the Note.  Each advance shall be secured by the Deed of Trust and the other Loan Documents as fully as if made to Borrower, regardless of the disposition thereof by the party or parties to whom such advance is made.  Notwithstanding the foregoing, however, in any action or proceeding to foreclose the Deed of Trust or to recover or collect the Obligations, the provisions of Law governing the recovery of costs, disbursements and allowances shall prevail unaffected by this Section.
Section 4.13    Notification by Borrower
Borrower will promptly give Notice to Lender of the occurrence of any Default or Event of Default hereunder or under any of the other Loan Documents.  Borrower will also promptly give Notice to Lender of any claim of a default by Borrower, or any claim by Borrower of a default by any other party, under any property management contract or any Lease.

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Section 4.14    Release and Indemnification by Borrower
Borrower agrees to release, indemnify the Indemnified Parties and to hold the Indemnified Parties harmless from and against, and to defend the Indemnified Parties by counsel approved by Lender (such approval not to be unreasonably withheld, conditioned or delayed) from and against, any and all Claims directly or indirectly arising out of or resulting from any transaction, act, omission, event or circumstance in any way connected with the Property or the Loan, including any Claim arising out of or resulting from (a) any construction activity at the Property, including any defective workmanship or materials; (b) any failure by Borrower to comply with the requirements of any Laws or to comply with any agreement that applies or pertains to the Property, including any agreement with a broker or “finder” in connection with the Loan or other financing of the Property; (c) any failure by Borrower to observe and perform any of the obligations imposed upon the landlord under the Leases; (d) any other Default or Event of Default hereunder or under any of the other Loan Documents; (e) any assertion or allegation that an Indemnified Party is liable for any act or omission of Borrower or any other Person in connection with the ownership, development, financing, leasing, operation or sale of the Property; or (f) Environmental Matters; WITHOUT LIMITATION, THE FOREGOING RELEASES AND INDEMNITIES SHALL APPLY TO EACH INDEMNIFIED PARTY WITH RESPECT TO MATTERS WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF, OR ARE CLAIMED TO BE CAUSED BY OR ARISE OUT OF, THE NEGLIGENCE (WHETHER SOLE, COMPARATIVE OR CONTRIBUTORY) OR STRICT LIABILITY OF SUCH INDEMNIFIED PARTY.  HOWEVER, SUCH RELEASES AND INDEMNITIES SHALL NOT APPLY TO AN INDEMNIFIED PARTY TO THE EXTENT THAT THE SUBJECT OF THE RELEASE OR INDEMNIFICATION IS CAUSED BY OR ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY.  The agreements and indemnifications contained in this Section shall apply to Claims arising both before and after the repayment of the Loan and shall survive the repayment of the Loan, any foreclosure or deed, assignment or conveyance in lieu thereof and any other action by Lender to enforce the rights and remedies of Lender hereunder or under the other Loan Documents; provided, however, notwithstanding anything to the contrary, in no event shall Borrower be liable for any act or occurrence, or any release, indemnity, hold harmless, or defense obligation relating thereto which first arises after the Transition Date unless such act or occurrence is caused by the actions of Borrower or Guarantor.  Upon demand by an Indemnified Party, Borrower shall diligently defend any Environmental Claim which relates to the Property or is threatened or commenced against such Indemnified Party, all at Borrower’s own cost and expense and by counsel to be approved by Lender (such approval not to be unreasonably withheld, conditioned or delayed) in the exercise of its reasonable judgment.  In the alternative, Lender may elect, at any time and for any reason, to conduct its own defense through counsel selected by Lender and at the sole cost and expense of Borrower.
Section 4.15    Fees and Expenses
Borrower shall pay all fees, charges, costs and expenses required to satisfy the conditions of the Loan Documents.  Without limitation of the foregoing, Borrower will pay, when due, and if paid by Lender will reimburse Lender on written demand the actual third party fees and expenses of any construction inspector (if any), the title insurance company, environmental engineers, appraisers, surveyors and Lender’s counsel in connection with the closing, administration, modification or any “workout” of the Loan, or the enforcement of Lender’s rights and remedies under any of the Loan Documents.  Borrower acknowledges that Lender may receive a benefit, including a discount, credit or other accommodation, from outside counsel based on the fees such counsel may receive on account of their relationship with Lender including fees paid pursuant hereto.
In addition to and without limitation of the foregoing, Borrower shall pay to Lender at closing, a non-refundable upfront fee in an amount equal to three-quarters of one percent (0.75%) of the Loan Amount, which shall be fully earned at closing.

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Section 4.16    Appraisals
Lender may obtain from time to time an appraisal of all or any part of the Property, prepared in accordance with written instructions from Lender, from a third-party appraiser satisfactory to, and engaged directly by, Lender.  The cost of one such appraisal, including any costs for internal review thereof, obtained by Lender in each calendar year and the cost of each such appraisal obtained by Lender following the occurrence of an Event of Default shall be borne by Borrower and shall be paid by Borrower within ten (10) days after receipt of written demand from Lender.
Section 4.17    Leasing and Tenant Matters
Borrower shall comply with the terms and conditions of Schedule 4 in connection with the leasing of space within the Improvements.  In addition, Borrower shall deposit with Lender on the date of Borrower’s receipt thereof any and all termination fees or other similar funds paid by tenant in connection with any tenant’s election to exercise an early termination option contained in its respective Lease or otherwise at the Property (the “Termination Fee Deposit”).  Lender shall have the right, in its sole and absolute discretion, to either (a) make the Termination Fee Deposit available to reimburse Borrower for Tenant Improvements and Leasing Commissions paid with respect to reletting the vacated space at the Property which shall be disbursed in accordance with the terms and conditions of Schedule 2 attached hereto, or (b) apply the Termination Fee Deposit to repay a portion of the outstanding principal balance of the Loan in accordance with Section 4 of the Note.
Section 4.18    Preservation of Rights
Borrower shall obtain, preserve and maintain in good standing, as applicable, all rights, privileges and franchises necessary or desirable for the operation of the Property and the conduct of Borrower’s business thereon or therefrom, if the failure to preserve or maintain same would cause a Material Adverse Effect.
Section 4.19    Income from Property; Distributions
Borrower shall first apply all income derived from the Property, including all income from Leases, to pay costs and expenses associated with the ownership, maintenance, operation and leasing of the Property, including all amounts then required to be paid under the Loan Documents, before using or applying such income for any other purpose.  No such income shall be distributed or paid to any member, partner, shareholder or, if Borrower is a trust, to any beneficiary or trustee, unless and until all such costs and expenses which are then due shall have been paid in full.  Without prior written approval of Lender, Borrower shall not make any distributions (a) during the existence of a monetary Default, (b) following an Event of Default unless such Event of Default has been waived by Lender, or (c) during a Trigger Period; provided, that, if Borrower provided a Letter of Credit to Lender in connection with a Trigger Period, Borrower may make distributions in amounts not to exceed the amount of the Letter of Credit so long as no monetary Default exists and no Event of Default has occurred that has not been waived by Lender. Notwithstanding the foregoing sentence, Lender shall not withhold its consent to distributions by Borrower following the Event of Default that has not been waived by Lender unless (i) such distributions are prohibited under subsection (a) or (c) in the foregoing sentence, or (ii) Lender reasonably believes that the security for the repayment of the Obligations has been or will be materially impaired as a result of such Event of Default or such distribution.
Section 4.20    Representations and Warranties
Borrower shall not knowingly take any action or do anything to cause Borrower’s representations and warranties in this Agreement to be untrue or incorrect in any material respect.

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Section 4.21    Deposit Accounts; Principal Depository
Borrower shall maintain Bank of America, N.A. as its principal depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts.  Without limiting the generality of the foregoing, Borrower shall maintain with Lender all deposit accounts related to the Property, including all operating accounts, any reserve or escrow accounts, any accounts from which Borrower may from time to time authorize Lender or Swap Counterparty to debit payments due on the Loan and any Swap Contracts, and any lockbox, cash management or other account into which tenants are required from time to time to pay rent.  Borrower hereby grants to Lender a security interest in the foregoing accounts and deposit accounts.
Section 4.22    Reserve Deposits
Borrower shall make monthly payments in an amount estimated by Lender to pay installments of real property Taxes and insurance premiums for insurance pursuant to the terms and conditions of Section 1 of Schedule 5.
Section 4.23    Intentionally Deleted

Section 4.24    Swap Contracts
In the event that Borrower shall elect to enter into a Swap Contract with Swap Counterparty, Borrower shall comply with all of the terms and conditions of Schedule 7 with respect to all Swap Contracts.
Section 4.25    Notice to Lender
If, at any time, Borrower receives written notice, or obtains actual knowledge, that any Release or threatened Release of any Hazardous Material has occurred or will occur at the Property, or if Borrower identifies or otherwise obtains actual knowledge of any noncompliance or alleged non-compliance with any Environmental Requirement by Borrower or at the Property, or receives written notice of any threatened or pending Environmental Claim related to the Property or any event or condition which could result in an Environmental Claim, Borrower shall notify Lender immediately in writing of such circumstance and shall include a full description of all relevant information.  Borrower shall, upon receipt, promptly deliver to Lender a copy of any report, audit, summary or investigation, of any kind or character, whether prepared by or on behalf of Borrower or by any other Person, related to environmental conditions at the Property or the compliance status of the Property with respect to any Environmental Requirement.  
Section 4.26    Intentionally Deleted
Section 4.27    Intentionally Deleted
Section 4.28    Lender’s Rights
Subject to the limitations on entry set forth in Section 4.2, Lender shall have the right, but not the obligation, without limitation of Lender’s rights under the other Loan Documents, and at Borrower’s sole risk and expense, to enter onto the Property and/or to take, or cause to be taken, such actions as Lender deems necessary or advisable, based on a good faith, reasonable belief that Hazardous Materials exist at the Property in violation of Environmental Law, to investigate, clean up, remediate or otherwise respond to, address or correct any of the issues addressed in this Agreement.  Borrower shall reimburse Lender on demand for the actual costs of any such action.  Lender agrees, however, that, except in the case of an emergency, Lender will take such action only after written notice to Borrower of the circumstances and the failure by Borrower, within a reasonable period of time following receipt of such notice, to commence or diligently pursue to completion the appropriate corrective action.  Lender owes no duty of care to 

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protect Borrower or any other Person against, or to inform Borrower or any other Person of, any Hazardous Material or other environmental condition affecting the Property.
Section 4.29    Financial Covenants
(a)    Within sixty (60) days after the end of each calendar quarter, commencing with the calendar quarter ending on December 31, 2013 and continuing with each calendar quarter thereafter, Borrower shall deliver a Compliance Certificate to Lender, verifying (i) Borrower’s Debt Service Coverage Ratio, and (ii) if a written notice of any rent abatement or termination has been received by Borrower under any Lease affecting more than 10,000 square feet of leased space in the Improvements as a result of a co-tenancy requirement in any Lease relating to the continuation of operations of J.C. Penny or Target, the Unencumbered Liquid Assets (as defined in the Guaranty) of Guarantor.
(b)    During a Trigger Period, Borrower shall deposit Excess Cash Flow into the Cash Collateral Account within thirty (30) days of the end of each month during the Trigger Period.  Notwithstanding the foregoing sentence, in lieu of depositing Excess Cash Flow into the Cash Collateral Account during a Trigger Period, Borrower shall be entitled to deposit with Lender a Letter of Credit in an amount reasonably estimated by Lender to be the projected Excess Cash Flow for the next three (3) months for the Property.  If the Trigger Period continues for more than three (3) months, at the end of each three (3) month period, Borrower shall deliver to Lender an additional Letter of Credit in an amount reasonably estimated by Lender to be the Excess Cash Flow for the upcoming three (3) month period.  Upon the expiration of a Trigger Period, and provided that no Default or Event of Default exists under the Loan, any amounts held in the Cash Collateral Account and any Letter of Credit delivered to Lender as provided in this Section shall be promptly released to Borrower.  During the continuance of an Event of Default, Lender may apply the amounts held in the Cash Collateral Account to the Obligations, or draw on any Letter of Credit delivered to Lender to apply to the Obligations.
 
Article V
Negative Covenants

Borrower covenants as of the date hereof and until such time as all Obligations shall be paid and performed in full, that:

Section 5.1    Conditional Sales
Borrower shall not incorporate in the Improvements any property acquired under a conditional sales contract or lease or as to which the vendor retains title or a security interest, without the prior written consent of Lender.
Section 5.2    Insurance Policies and Bonds
Borrower shall not do or permit to be done anything that would affect the coverage or indemnities provided for pursuant to the provisions of any insurance policy, performance bond, labor and material payment bond or any other bond given in connection with any construction at the Property, including any construction of tenant improvements.
Section 5.3    Additional Debt
Borrower shall not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (a) the Loan, and (b) advances or trade debt or accrued expenses incurred in the ordinary course of business of operating the Property.  No other debt may be secured by the Property, whether senior, subordinate or pari passu.  

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Section 5.4    Intentionally Omitted
Section 5.5    Commingling; Transfers of Ownership of Borrower
Borrower shall not commingle the funds and other assets of Borrower with those of any Affiliate or any other Person.  Other than Permitted Transfers, there shall not be sold, pledged, encumbered, assigned, transferred or otherwise disposed of, voluntarily or involuntarily, by operation of law or otherwise, any direct or indirect interest in Borrower or the Property without the prior written consent of Lender.  
 
Article VI
Events of Default

The occurrence or happening, from time to time, of any one or more of the following shall constitute an Event of Default under this Agreement:
Section 6.1    Payment Default
Borrower fails to pay any Obligation under this Agreement within five (5) days of when due; provided, that two (2) times during any twelve (12) month period, Lender shall provide written notice to Borrower of Borrower’s failure to pay, and Borrower shall have five (5) days to cure such failure.  Notwithstanding anything herein to the contrary, there is no grace or notice period for amounts due upon acceleration of the Loan or at the maturity of the Loan. 
Section 6.2    Default Under Other Loan Documents
An Event of Default (as defined therein) occurs under the Note or the Deed of Trust or any other Loan Document, or Borrower or Guarantor fails to promptly pay, perform, observe or comply with any term, obligation or agreement contained in any of the Loan Documents (within any applicable grace or cure period).
Section 6.3    Accuracy of Information; Representations and Warranties
Any information contained in any financial statement, schedule, report or any other document delivered by Borrower, Guarantor or any other Person to Lender in connection with the Loan proves to have been knowingly false or incorrect when made or disclosed by Borrower or Guarantor, or Borrower, Guarantor or any other Person shall have knowingly failed to state any material fact or any fact necessary to make such information not misleading, or any representation or warranty contained in this Agreement or in any other Loan Document or other document, certificate or opinion delivered to Lender in connection with the Loan, proves at any time to be false or misleading in any material respect either on the date when made or on the date when reaffirmed pursuant to the terms of this Agreement, and in any such case, which to the extent curable, is not cured within twenty (20) days after Lender delivers Notice thereof to Borrower.
Section 6.4    Deposits
Borrower fails to deposit funds with Lender, in the amount requested by Lender, pursuant to the provisions of Section 4.6, within ten (10) days from the effective date of a Notice from Lender requesting such deposit, or Borrower fails to deliver to Lender any Condemnation Awards or Insurance Proceeds within ten (10) days after Borrower’s receipt thereof.
Section 6.5    Insurance Obligations

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Borrower fails to promptly perform or comply with any of the covenants contained in the Loan Documents with respect to maintaining insurance, including the covenants contained in Section 4.4; provided that Lender shall provide notice and a three (3) day period to cure any failure to deliver insurance certificates as and when required.
Section 6.6    Other Obligations
Borrower fails to promptly perform or comply with any of the Obligations set forth in this Agreement (other than those expressly described in other Sections of this Article VI), and such failure continues uncured for a period of thirty (30) days after Notice from Lender to Borrower, unless (a) such failure, by its nature, is not capable of being cured within such period, and (b) within such period, Borrower commences to cure such failure and thereafter diligently prosecutes the cure thereof, and (c) Borrower causes such failure to be cured no later than ninety (90) days after the date of such Notice from Lender.
Section 6.7    Damage to Improvements
The Improvements are substantially damaged or destroyed by fire or other casualty and Lender determines that the Improvements cannot be restored in accordance with the terms and provisions of this Agreement and the Deed of Trust; provided, that, Borrower shall have a period of sixty (60) days to provide evidence that Borrower has sufficient funds to restore, and will commence immediately with restoration of, the Improvements or to repay the Loan in full.
Section 6.8    Intentionally Deleted
Section 6.9    Mechanic’s Lien
A lien for the performance of work or the supply of materials filed against the Property, or any stop notice served on Borrower, any contractor of Borrower, or Lender, remains unsatisfied or unbonded for a period of thirty (30) days after Borrower receives written notice of such filing or of such stop notice.
Section 6.10    Bankruptcy
Borrower, Managing Member, or Guarantor files a bankruptcy petition or makes a general assignment for the benefit of creditors, or a bankruptcy petition is filed against Borrower, Managing Member, or Guarantor and such involuntary bankruptcy petition continues undismissed for a period of ninety (90) days after the filing thereof.
Section 6.11    Appointment of Receiver, Trustee, Liquidator
Borrower, Managing Member or Guarantor applies for or consents in writing to the appointment of a receiver, trustee or liquidator of Borrower, Managing Member, Guarantor, the Property, or all or substantially all of the other assets of Borrower, Managing Member or Guarantor, or an order, judgment or decree is entered by any court of competent jurisdiction on the application of a creditor appointing a receiver, trustee or liquidator of Borrower, Managing Member, Guarantor, the Property, or all or substantially all of the other assets of Borrower, Managing Member or Guarantor; provided, that, if there is an ex parte appointment of a receiver, trustee or liquidator of Borrower, Managing Member, Guarantor, the Property, or all or substantially all of the other assets of Borrower, Managing Member or Guarantor, there shall be a sixty (60) day period to get the same dismissed.
Section 6.12    Intentionally Deleted
Section 6.13    Judgment

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A final nonappealable judgment for the payment of money involving more than $100,000.00 is entered against Borrower or involving more than $500,000.00 is entered against Guarantor, and Borrower or Guarantor fails to discharge the same, or fails to cause it to be discharged or bonded off to Lender’s satisfaction, within thirty (30) days from the date of the entry of such judgment.
Section 6.14    Dissolution; Change in Business Status
Unless it is a Permitted Transfer or the written consent of Lender is previously obtained, all or substantially all of the business assets of Borrower, Managing Member or Guarantor are sold, Borrower or Managing Member is dissolved, or there occurs any change in the form of business entity through which Borrower, Managing Member or Guarantor presently conducts its business or any merger or consolidation involving Borrower, Managing Member or Guarantor.
Section 6.15    Default Under Other Indebtedness
Borrower or Guarantor fails to pay any indebtedness (other than the Loan) owed by Borrower or such Guarantor to Lender when and as due and payable beyond any applicable cure periods (whether by acceleration or otherwise).
Section 6.16    Intentionally Deleted
Section 6.17    Change in Controlling Interest
Borrower violates the terms of Section 5.5 of this Agreement.
Section 6.18    Material Adverse Effect
In the reasonable opinion of Lender, a Material Adverse Effect has occurred
Section 6.19    Default Under Major Lease
A material default occurs under the Major Lease that could cause a termination and activate a Trigger Period, which is not cured within any applicable notice and cure period (if any) provided in such Lease, and an Approved Lease with a replacement tenant acceptable to Lender has not been executed within twelve (12) months following the default under the Major Lease; provided, however, in the event that the applicable default in question is a default by the tenant under a Major Lease, the twelve (12) month time period referenced above shall not commence until forty-five (45) days after such tenant has failed to cure the applicable default under its lease.
Section 6.20    Financial Covenants
Failure to satisfy the delivery requirements of the financial covenants set forth in Section 4.29 of this Agreement; provided, that, two (2) times during any twelve (12) month period, Lender shall provide notice to Borrower of Borrower’s failure to comply with the delivery requirements of Section 4.29 following which Borrower shall have five (5) days to remedy such failure.
 
Article VII
Remedies on Event of Default

Section 7.1    Remedies on Event of Default

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Upon the occurrence of any Event of Default and unless such Event of Default has been waived in writing, Lender shall have the right, in addition to any other rights or remedies available to Lender under the Deed of Trust or any of the other Loan Documents or under applicable Law, to exercise any one or more of the following rights and remedies:
(k)    Lender may accelerate all of Borrower’s Obligations under the Loan Documents, whether or not matured and regardless of the adequacy of any other collateral securing the Loan, whereupon such Obligations shall become immediately due and payable, without notice of default, acceleration or intention to accelerate, presentment or demand for payment, protest or notice of nonpayment or dishonor, or notices or demands of any kind or character (all of which are hereby waived by Borrower), excepting only notices expressly set forth in this Agreement.
(l)    Lender may apply to any court of competent jurisdiction for, and obtain appointment of, a receiver for the Property.
(m)    To the extent permitted under applicable Law, Lender may set off the amounts due to Lender under the Loan Documents, whether or not matured and regardless of the adequacy of any other collateral securing the Loan, against any and all accounts, credits, money, securities or other property of Borrower now or hereafter on deposit with, held by or in the possession of Lender to the credit or for the account of Borrower, without notice to or the consent of Borrower.
(n)    Lender may enter into possession of the Property and perform any and all work and labor necessary to complete any construction at the Property, including any construction of tenant improvements, and to employ watchmen to protect the Property and the Improvements.  All sums expended by Lender for such purposes shall be deemed to have been advanced to Borrower under the Note and shall be secured by the Deed of Trust.  For this purpose, Borrower hereby constitutes and appoints Lender its true and lawful attorney-in-fact with full power of substitution, which power is coupled with an interest and cannot be revoked, to complete the work in the name of Borrower, and hereby empowers said attorney or attorneys, in the name of Borrower or Lender:
(i)    To use any funds of Borrower including any balance which may be held by Lender and any funds (if any) which may remain unadvanced hereunder for the purpose of completing any construction, including any construction of tenant improvements, whether or not in the manner called for in the applicable plans and specifications;
(ii)    To make such additions and changes and corrections to any plans and specifications as shall be necessary or desirable in the judgment of Lender to complete any construction, including any construction of tenant improvements;
(iii)    To employ such contractors, subcontractors, agents, architects and inspectors as shall be necessary or desirable for said purpose;
(iv)    To pay, settle or compromise all existing bills and claims which are or may be liens against the Property, or may be necessary or desirable for the completion of the work or the clearance of title to the Property;
(v)    To execute all applications and certificates which may be required in the name of Borrower;
(vi)    To enter into, enforce, modify or cancel Leases and to fix or modify Rents on such terms as Lender may consider proper;

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(vii)    To file for record, at Borrower’s cost and expense and in Borrower’s name, any notices of completion, notices of cessation of labor, or any other notices that Lender in its sole and absolute discretion may consider necessary or desirable to protect its security;
(viii)    To prosecute and defend all actions or proceedings in connection with any construction at the Property, including any construction of tenant improvements, and to take such actions and to require such performance as Lender may deem necessary; and
(ix)    To do any and every act with respect to any such construction which Borrower may do in its own behalf.
(o)    Lender may exercise any and all other rights and remedies under this Agreement, the Loan Documents or at Law, equity or otherwise.
Without limitation of the foregoing, upon the occurrence of an actual or deemed entry of an order for relief with respect to Borrower under the Bankruptcy Code (Title 11 of the United States Code, as in effect from time to time), any obligation of Lender to make advances shall automatically terminate, and the unpaid principal amount of the Loan outstanding and all interest and other amounts payable hereunder and under the Note and other Loan Documents shall automatically become due and payable, in each case without further act of Lender.
Section 7.2    No Release or Waiver; Remedies Cumulative and Concurrent
Borrower shall not be relieved of any Obligation by reason of the failure of Lender to comply with any request of Borrower or of any other Person to take action to foreclose on the Property under the Deed of Trust or otherwise to enforce any provision of the Loan Documents, or by reason of the release, regardless of consideration, of all or any part of the Property.  No delay or omission of Lender to exercise any right, power or remedy accruing upon the happening of an Event of Default shall impair any such right, power or remedy or shall be construed to be a waiver of any such Event of Default or any acquiescence therein.  No delay or omission on the part of Lender to exercise any option for acceleration of the maturity of the Obligations, or for foreclosure of the Deed of Trust following any Event of Default as aforesaid, or any other option granted to Lender hereunder in any one or more instances, or the acceptance by Lender of any partial payment on account of the Obligations shall constitute a waiver of any such Event of Default and each such option shall remain continuously in full force and effect.  No remedy herein conferred upon or reserved to Lender is intended to be exclusive of any other remedies provided for in the Loan Documents, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder, or under the Loan Documents, or now or hereafter existing at Law or in equity or by statute.  Every right, power and remedy given by the Loan Documents to Lender shall be concurrent and may be pursued separately, successively or together against Borrower or the Property or any part thereof, and every right, power and remedy given by the Loan Documents may be exercised from time to time as often as may be deemed expedient by Lender.  All notice and cure periods provided in this Agreement or in any Loan Document shall run concurrently with any notice or cure periods provided by Law.
 
Article VIII
Miscellaneous

Section 8.1    Further Assurances; Authorization to File Documents
At any time, and from time to time, upon request by Lender, Borrower will, with each party paying for its own expenses, (a) correct any defect, error or omission which may be discovered in the form or content of any of the Loan Documents, and (b) make, execute, deliver and record, or cause to be made, executed, delivered and recorded, any and all further instruments, certificates and other documents as may, in the reasonable opinion of Lender, be necessary 

TERM LOAN AGREEMENT (RCA Tiffany Springs)    Page 20

or desirable in order to complete, perfect or continue and preserve the lien of the Deed of Trust.  Following an Event of Default and for so long as Lender has not waived same, upon any failure by Borrower to do so, Lender may make, execute and record any and all such instruments, certificates and other documents for and in the name of Borrower, all at the sole expense of Borrower, and Borrower hereby appoints Lender the agent and attorney-in-fact of Borrower to do so, this appointment being coupled with an interest and being irrevocable.  Without limitation of the foregoing, Borrower irrevocably authorizes Lender at any time and from time to time to file any initial financing statements, amendments thereto and continuation statements deemed necessary or desirable by Lender to establish or maintain the validity, perfection and priority of the security interests granted in the Deed of Trust, and Borrower ratifies any such filings made by Lender prior to the date hereof.  In addition, at any time, and from time to time, upon request by Lender, Borrower will, at Borrower’s expense, provide any and all further instruments, certificates and other documents as may, in the opinion of Lender, be necessary or desirable in order to verify Borrower’s identity and background in a manner satisfactory to Lender.
Section 8.2    No Warranty by Lender
By accepting or approving anything required to be observed, performed or fulfilled by Borrower or to be given to Lender pursuant to this Agreement, including any certificate, Survey, receipt, appraisal or insurance policy, Lender shall not be deemed to have warranted or represented the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof and any such acceptance or approval thereof shall not be or constitute any warranty or representation with respect thereto by Lender.
Section 8.3    Standard of Conduct of Lender
Except as expressly provided in this Agreement or any other Loan Documents, nothing contained in this Agreement or any other Loan Document shall limit the right of Lender to exercise its business judgment or to act, in the context of the granting or withholding of any advance or consent under this Agreement or any other Loan Document, in a subjective manner, whether or not objectively reasonable under the circumstances. Borrower and Lender intend by the foregoing to set forth and affirm their entire understanding with respect to the standard pursuant to which Lender’s duties and obligations are to be judged and the parameters within which Lender’s discretion may be exercised hereunder and under the other Loan Documents. 
Section 8.4    No Partnership
Nothing contained in this Agreement shall be construed in a manner to create any relationship between Borrower and Lender other than the relationship of borrower and lender and Borrower and Lender shall not be considered partners or co-venturers for any purpose on account of this Agreement.
Section 8.5    Severability
In the event any one or more of the provisions of this Agreement or any of the other Loan Documents shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any other respect, or in the event any one or more of the provisions of any of the Loan Documents operates or would prospectively operate to invalidate this Agreement or any of the other Loan Documents, then and in either of those events, at the option of Lender, such provision or provisions only shall be deemed null and void and shall not affect the validity of the remaining Obligations, and the remaining provisions of the Loan Documents shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby.
Section 8.6    Authorized Signers

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Lender is authorized to rely upon the continuing authority of the Authorized Signers to bind Borrower with respect to all matters pertaining to the Loan and the Loan Documents, including the submission of draw requests and the selection of interest rates.  Such authorization may be changed only upon written notice addressed to Lender accompanied by evidence, reasonably satisfactory to Lender, of the authority of the Person giving such notice.  Such notice shall be effective not sooner than five (5) Business Days (as defined in the Note) following receipt thereof by Lender.
Section 8.7    Notices
All Notices required or which any party desires to give hereunder or under any other Loan Document shall be in writing and, unless otherwise specifically provided in such other Loan Document, shall be deemed sufficiently given or furnished if delivered by personal delivery, by nationally recognized overnight courier service or by certified United States mail, postage prepaid, addressed to the party to whom directed at the applicable address set forth below (unless changed by similar notice in writing given by the particular party whose address is to be changed) or by facsimile.  Any Notice shall be deemed to have been given either at the time of personal delivery or, in the case of courier or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile, upon receipt; provided that service of a Notice required by any applicable statute shall be considered complete when the requirements of that statute are met.  Notwithstanding the foregoing, no notice of change of address shall be effective except upon actual receipt.  This Section shall not be construed in any way to affect or impair any waiver of notice or demand provided in this Agreement or in any other Loan Document or to require giving of notice or demand to or upon any Person in any situation or for any reason.
The address and fax number of Borrower are: 
 
ARC TSKCYMO001, LLC
c/o American Realty Capital
405 Park Avenue, 15th Floor
New York, New York  10022
Attention:  General Counsel
Facsimile No.:  (212) 421-5799

With a copy to:

c/o American Realty Capital
405 Park Avenue, 15th Floor
New York, New York  10022
Attention:  Chief Financial Officer
Facsimile No.:  (212) 421-5799

With a copy to:

Condon Thornton Sladek Harrell PLLC
8080 Park Lane, Suite 700
Dallas, Texas  75231
Attention:  William Sladek, Esq.
Facsimile No.:  (214) 691-6311

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The address and fax number of Lender are: 
 
Bank of America, N.A. 
901 Main Street, 20th Floor 
Dallas, Texas  75202 
Attn: CREB Loan Administration 
Facsimile: (214) 209-1571 

With a copy to: 
 
Jackson Walker L.L.P. 
901 Main Street, Suite 6000 
Dallas, Texas 75202 
Attn: Debbie A. Robinowitz 
Facsimile: (214) 661-6686 

Section 8.8    Permitted Successors and Assigns; Disclosure of Information
(a)    Each and every one of the covenants, terms, provisions and conditions of this Agreement and the Loan Documents shall apply to, bind and inure to the benefit of Borrower, its successors and those assigns of Borrower consented to in writing by Lender, and shall apply to, bind and inure to the benefit of Lender and the endorsees, transferees, successors and assigns of Lender, and all Persons claiming under or through any of them.
(b)    Except to the extent permitted under this Agreement, Borrower agrees not to transfer, assign, pledge or hypothecate any right or interest in any payment or advance due pursuant to this Agreement, or any of the other benefits of this Agreement, without the prior written consent of Lender, which consent may be withheld by Lender in its sole and absolute discretion.  Any such transfer, assignment, pledge or hypothecation made or attempted by Borrower without the prior written consent of Lender shall be void and of no effect.  No consent by Lender to an assignment shall be deemed to be a waiver of the requirement of prior written consent by Lender with respect to each and every further assignment and as a condition precedent to the effectiveness of such assignment.
(c)    Lender may sell or offer to sell the Loan or interests therein to one or more assignees or participants.  Borrower shall execute, acknowledge and deliver any and all instruments reasonably requested by Lender in connection therewith, and to the extent, if any, specified in any such assignment or participation, such assignee(s) or participant(s) shall have the same rights and benefits with respect to the Loan Documents as such Person(s) would have if such Person(s) were Lender hereunder.  Each of Borrower and Lender will pay its own expenses in connection with the preparation and the closing of such assignment and/or participation; provided, that, Borrower shall not be obligated to draft documentation on behalf of Lender.  Lender may disseminate any information it now has or hereafter obtains pertaining to the Loan, including any security for the Loan, any credit or other information on the Property (including environmental reports and assessments), Borrower, any of Borrower’s principals or Guarantor, to any actual or prospective assignee or participant, to Lender’s Affiliates, including Merrill Lynch, Pierce, Fenner & Smith Incorporated, to any regulatory body having jurisdiction over Lender to any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and the Loan, or to any other party, each only as necessary or appropriate in Lender’s reasonable judgment for purposes of selling or administering the Loan or interests therein.  Lender shall use commercially reasonable efforts to keep any and all non-public information delivered to Lender by or on behalf of Borrower and/or Guarantor confidential and shall only disclose or deliver information that is not otherwise available to the general public to the foregoing Persons, or other Persons, under the agreement that such information be and remain confidential.

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(d)    Lender may at any time, at its sole cost and expense, pledge or assign all or any portion of its rights under the Loan Documents, which evidence and/or secure the Loan, including under the Note, to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341.  No such pledge or assignment or enforcement thereof shall release Lender from its obligations under any of the Loan Documents, which evidence and/or secure the Loan.
Section 8.9    Modification; Waiver
None of the terms or provisions of this Agreement may be changed, waived, modified, discharged or terminated except by instrument in writing executed by the party or parties against whom enforcement of the change, waiver, modification, discharge or termination is asserted.  None of the terms or provisions of this Agreement shall be deemed to have been abrogated or waived by reason of any failure or failures to enforce the same.
Section 8.10    Third Parties; Benefit
All conditions to the obligation of Lender to make advances hereunder are imposed solely and exclusively for the benefit of Lender and its assigns and no other Persons shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make advances in the absence of strict compliance with any or all thereof and no other Person shall, under any circumstances, be deemed to be the beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender at any time in the sole and absolute exercise of its discretion.  The terms and provisions of this Agreement are for the benefit of the parties hereto and, except as herein specifically provided, no other Person shall have any right or cause of action on account thereof.
Section 8.11    Rules of Construction
The words “hereof,” “herein,” “hereunder,” “hereto,” and other words of similar import refer to this Agreement in its entirety.  The terms “agree” and “agreements” mean and include “covenant” and “covenants.”  The words “include” and “including” shall be interpreted as if followed by the words “without limitation.”  The captions and headings contained in this Agreement are included herein for convenience of reference only and shall not be considered a part hereof and are not in any way intended to define, limit or enlarge the terms hereof.  All references (a) made in the neuter, masculine or feminine gender shall be deemed to have been made in all such genders, (b) made in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well, (c) to the Loan Documents are to the same as extended, amended, restated, supplemented or otherwise modified from time to time unless expressly indicated otherwise, (d) to the Land, the Improvements or the Property shall mean all or any portion of each of the foregoing, respectively, and (e) to Articles, Sections and Schedules are to the respective Articles, Sections and Schedules contained in this Agreement unless expressly indicated otherwise.
Section 8.12    Counterparts
This Agreement may be executed in any number of counterparts, each of which shall be considered an original for all purposes; provided, however, that all such counterparts shall together constitute one and the same instrument.
Section 8.13    Publicity
Any news releases, publicity or advertising by Lender or its Affiliates through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents or to Borrower, Guarantor or any of their Affiliates shall only be made after the date that Borrower or Guarantor first publishes its news release or other media release intended to reach the general public announcing the financing evidenced by the Loan Documents.  Subject to the foregoing sentence, Borrower expressly authorizes Lender, at its sole cost and 

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expense, to prepare and to furnish to the news media for publication from time to time news releases with respect to Lender’s involvement with the financing of the Property in general terms (without identifying the specific name of Borrower, Managing Member, Guarantor or any of their Affiliates unless approved by such Person, or any specific economic details other than Loan amount).
Section 8.14    Governing Law
This Agreement shall be governed by and construed, interpreted and enforced in accordance with the Laws of the State.
Section 8.15    Time of Essence
Time shall be of the essence for each and every provision of this Agreement of which time is an element.
Section 8.16    Electronic Communications
(a)    Electronic Transmission of Data Lender and Borrower agree that certain data related to the Loan (including confidential information, documents, applications and reports) may be transmitted electronically, including transmission over the Internet.  This data may be transmitted to, received from or circulated among agents and representatives of Borrower and/or Lender and their Affiliates and other Persons involved with the subject matter of this Agreement.  
(b)    Borrower Controlled Websites  Borrower may elect to deliver documentation required pursuant to the Closing Checklist or Schedule 2 hereof electronically, and if so delivered, such documentation shall be deemed to have been delivered on the date (i) on which Borrower posts such documents, or provides a link thereto on Borrower’s website on the Internet at the website address listed on Borrower’s signature page to this Agreement; or (ii) on which such documents are posted on Borrower’s behalf on an Internet or intranet website, if any, to which Lender has access (whether a commercial, third-party website or whether sponsored by Lender; provided that: (i) Borrower shall deliver paper copies of such documents to Lender upon its request to Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by Lender, and (ii) Borrower shall notify Lender (by facsimile or electronic mail) of the posting of any such documents and provide to Lender by electronic mail electronic versions (i.e., soft copies) of such documents.  Borrower agrees that in the event that Borrower would like to update or revise a document previously posted to the Borrower controlled website, Borrower shall notify Lender (by facsimile or electronic mail) that such document has been revised and an updated version has been posted.
(c)    Assumption of Risks; Indemnification  Borrower acknowledges and agrees that (i) there are risks associated with the use of electronic transmission and Borrower controlled websites and that Lender does not control the method of transmittal, the service providers or the operational or technical issues that could occur; (ii) Lender has no obligation or responsibility whatsoever and assumes no duty or obligation for the security, receipt or third party interception of any such electronic transmission of data or Borrower controlled website, or any operational or technical issues that may occur with the electronic transmission of data or the Borrower controlled website excepting only the gross negligence and/or willful misconduct of Lender, its Affiliates and/or their agents or employees; and (iii) EXCEPTING THE GROSS NEGLIGENCE AND/OR WILLFUL MISCONDUCT OF LENDER, ITS AFFILIATES, AND/OR THEIR AGENTS OR EMPLOYEES, BORROWER WILL RELEASE, HOLD HARMLESS AND INDEMNIFY LENDER FROM ANY CLAIM, DAMAGE OR LOSS, INCLUDING THAT ARISING IN WHOLE OR PART FROM LENDER’S STRICT LIABILITY OR SOLE, COMPARATIVE OR CONTRIBUTORY NEGLIGENCE, WHICH IS RELATED TO THE ELECTRONIC TRANSMISSION OF DATA OR THE BORROWER CONTROLLED WEBSITE.
Section 8.17    Forum

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Borrower hereby irrevocably submits generally and unconditionally for itself and in respect of its property to the non-exclusive jurisdiction of any state court or any United States federal court sitting in the State specified in the governing law section of this Agreement and to the non-exclusive jurisdiction of any state court or any United States federal court sitting in the state in which any of the Property is located, over any Dispute.  Borrower hereby irrevocably waives, to the fullest extent permitted by Law, any objection that Borrower may now or hereafter have to the laying of venue in any such court and any claim that any such court is an inconvenient forum.  Borrower hereby agrees and consents that, in addition to any methods of service of process provided for under applicable Law, all service of process in any such suit, action or proceeding in any state court or any United States federal court sitting in the State specified in the governing law section of this Agreement or in which any of the Property is located may be made by certified or registered mail, return receipt requested, directed to Borrower at its address for notice set forth in this Agreement, or at a subsequent address of which Lender received actual notice from Borrower in accordance with the notice section of this Agreement, and service so made shall be complete five (5) days after the same shall have been so mailed.  Nothing herein shall affect the right of Lender to serve process in any manner permitted by Law or limit the right of Lender to bring proceedings against Borrower in any other court or jurisdiction.
Section 8.18    WAIVER OF JURY TRIAL
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTE, THE MORTGAGE, OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO HEREBY:
(a)    CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER;
(b)    ACKNOWLEDGES THAT THIS WAIVER AND THE PROVISIONS OF THIS SECTION WERE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS;
(c)    CERTIFIES THAT THIS WAIVER IS KNOWINGLY, WILLINGLY, AND VOLUNTARILY MADE;
(d)    AGREES AND UNDERSTANDS THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH PROCEEDING OR ACTION, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS OR ANY OTHER AGREEMENT, AND FURTHER AGREES THAT SUCH PARTY SHALL NOT SEEK TO CONSOLIDATE ANY SUCH PROCEEDING OR ACTION WITH ANY OTHER PROCEEDING OR ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED;
(e)    AGREES THAT BORROWER AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING OR ACTION AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL; AND
(f)    REPRESENTS AND WARRANTS THAT SUCH PARTY HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL 

TERM LOAN AGREEMENT (RCA Tiffany Springs)    Page 26

COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 
Section 8.19    USA Patriot Act Notice
Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), Lender is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance with the Act.  Borrower shall, promptly following a request by Lender, provide all documentation and other information that Lender requests in order to comply with its ongoing obligation under “know your customer” and anti-money laundering rules and regulations, including the Act.
Section 8.20    Entire Agreement
The Loan Documents constitute the entire understanding and agreement between Borrower and Lender with respect to the transactions arising in connection with the Loan, and supersede all prior written or oral understandings and agreements between Borrower and Lender with respect to the matters addressed in the Loan Documents.  In particular, and without limitation, the terms of any commitment by Lender to make the Loan are merged into the Loan Documents.  Except as incorporated in writing into the Loan Documents, there are no representations, understandings, stipulations, agreements or promises, oral or written, with respect to the matters addressed in the Loan Documents.  If there is any conflict between the terms, conditions and provisions of this Agreement and those of any other instrument or agreement, including any other Loan Document, the terms, conditions and provisions of this Agreement shall prevail.
THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

TERM LOAN AGREEMENT (RCA Tiffany Springs)    Page 27

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the date first above written.
BORROWER: 
 
ARC TSKCYMO001, LLC, 
a Delaware limited liability company 
 
 
By:     /s/ Jesse C. Galloway             
Name:     Jesse C. Galloway             
Title:     Authorized Signatory             
 
 

LENDER: 
 
BANK OF AMERICA, N.A., 
a national banking association 
 
 
By:     /s/ Shane M. Bowen             
Name:     Shane M. Bowen             
Title:     Senior Vice President            

TERM LOAN AGREEMENT (RCA Tiffany Springs)    Signature PageExhibit 4.1

 

AMENDED
AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

 

OF

 

AMERICAN
REALTY CAPITAL GLOBAL OPERATING PARTNERSHIP, L.P.

 

 

 

Date as
of July 2, 2013

 

 

 

    	 

    	 

    

TABLE OF CONTENTS

 

	 	Page
	Article 1. DEFINED TERMS	1
	Article 2. ORGANIZATIONAL MATTERS	19
	2.1	Formation	19
	2.2	Name	20
	2.3	Registered Office and Agent; Principal Office	20
	2.4	Power of Attorney	20
	2.5	Term	22
	Article 3. PURPOSE	22
	3.1	Purpose and Business	22
	3.2	Powers	22
	Article 4. CAPITAL CONTRIBUTIONS	23
	4.1	Capital Contributions of the Partners	23
	4.2	Additional Funds; Restrictions on the General Partner	24
	4.3	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners	25
	4.4	Contribution of Proceeds of Issuance of Common Stock	26
	4.5	Repurchase of Common Stock; Shares-In-Trust	26
	4.6	No Third-Party Beneficiary	27
	4.7	No Interest; No Return	27
	4.8	No Preemptive Rights.	28
	Article 5. DISTRIBUTIONS	28
	5.1	Distributions	28
	5.2	Qualification as a REIT	32
	5.3	Withholding	33
	5.4	Additional Partnership Interests	33
	Article 6. ALLOCATIONS	33
	6.1	Allocations	33
	6.2	Revisions to Allocations to Reflect Issuance of Partnership Interests	33
	Article 7. MANAGEMENT AND OPERATIONS OF BUSINESS	34
	7.1	Management	34
	7.2	Certificate of Limited Partnership	38
	7.3	Reimbursement of the General Partner	39
	7.4	Outside Activities of the General Partner	40
	7.5	Contracts with Affiliates	40
	7.6	Indemnification	41
	7.7	Liability of the General Partner	43
	7.8	Other Matters Concerning the General Partner	44
	7.9	Title to Partnership Assets	45

 

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	7.10	Reliance by Third Parties	45
	7.11	Loans By Third Parties	46
	Article 8. RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	46
	8.1	Limitation of Liability	46
	8.2	Management of Business	46
	8.3	Outside Activities of Limited Partners	47
	8.4	Return of Capital	47
	8.5	Rights of Limited Partners Relating to the Partnership	47
	8.6	Exchange Rights Agreements	48
	Article 9. BOOKS, RECORDS, ACCOUNTING AND REPORTS	50
	9.1	Records and Accounting	50
	9.2	Fiscal Year	50
	9.3	Reports	50
	Article 10. TAX MATTERS	51
	10.1	Preparation of Tax Returns	51
	10.2	Tax Elections	51
	10.3	Tax Matters Partner	52
	10.4	Organizational Expenses	54
	10.5	Withholding	54
	Article 11. TRANSFERS AND WITHDRAWALS	55
	11.1	Transfer	55
	11.2	Transfer of the General Partner’s General Partner Interest	55
	11.3	Limited Partners’ Rights to Transfer	57
	11.4	Substituted Limited Partners	59
	11.5	Assignees	59
	11.6	General Provisions	60
	Article 12. ADMISSION OF PARTNERS	62
	12.1	Admission of Successor General Partner	62
	12.2	Admission of Additional Limited Partners	63
	12.3	Amendment of Agreement and Certificate of Limited Partnership	64
	Article 13. DISSOLUTION, LIQUIDATION AND TERMINATION	64
	13.1	Dissolution	64
	13.2	Winding Up	65
	13.3	No Obligation to Contribute Deficit	67
	13.4	Rights of Limited Partners	67
	13.5	Notice of Dissolution	67
	13.6	Termination of Partnership and Cancellation of Certificate of Limited Partnership	67
	13.7	Reasonable Time for Winding-Up	68
	13.8	Waiver of Partition	68

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	Article 14. AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	68
	14.1	Amendments	68
	14.2	Meetings of the Partners	69
	Article 15. GENERAL PROVISIONS	70
	15.1	Addresses and Notice	70
	15.2	Titles and Captions	70
	15.3	Pronouns and Plurals	71
	15.4	Further Action	71
	15.5	Binding Effect	71
	15.6	Creditors	71
	15.7	Waiver	71
	15.8	Counterparts	71
	15.9	Applicable Law	71
	15.10	Invalidity of Provisions	72
	15.11	Entire Agreement	72
	15.12	Merger	72
	15.13	No Rights as Stockholders	72

 

EXHIBITS

 

Exhibit A – Partners’ Contributions and Partnership
Interests

Exhibit B – Allocations

 

    	iii

    	 

    

AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP OF

AMERICAN REALTY CAPITAL GLOBAL OPERATING PARTNERSHIP, L.P.

 

THIS AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP OF AMERICAN REALTY CAPITAL GLOBAL OPERATING PARTNERSHIP, L.P. (this “Agreement”) dated as of July
2, 2013, is entered into among AMERICAN REALTY CAPITAL GLOBAL TRUST, INC., a Maryland corporation, as general partner (the “General
Partner”), and AMERICAN REALTY CAPITAL GLOBAL SPECIAL LIMITED PARTNERSHIP, LLC, a Delaware limited liability company,
as Limited Partner (the “Initial Limited Partner” and “Special Limited Partner”), and the
Limited Partners party hereto from time to time.

 

WHEREAS, the General Partner formed American
Realty Capital Global Operating Partnership, L.P. (the “Partnership”) as a limited partnership on July 12, 2011
pursuant to the Revised Uniform Limited Partnership Act of the State of Delaware and filed a certificate of limited partnership
with the Secretary of State of the State of Delaware, which certificate was amended on October 7, 2011.

 

WHEREAS, the General Partner and the Initial
Limited Partner entered into the Agreement of Limited Partnership of the Partnership, dated as of April 20, 2012, including any
amendments thereto through the date hereof (the “Original Agreement”).

 

WHEREAS, the General Partner and the Initial
Limited Partner wish to redesignate the Partnership Interests and Partnership Units issued pursuant to the Original Agreement.

 

WHEREAS, the General Partner and the Initial
Limited Partner have agreed to make certain amendments, including creating a new class B limited partnership interest in the Partnership,
and desire to amend and restate the Original Agreement.

 

NOW THEREFORE, in consideration of the mutual
covenants herein contained, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties do hereby agree that the Original Agreement hereby is amended and restated in its entirety to read as follows:

 

Article
1.

DEFINED TERMS

 

The following definitions shall be for all
purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

 

“Acquisition Expenses”
means any and all expenses, exclusive of Acquisition Fees, incurred by the General Partner, the Operating Partnership, the Advisor
or any of their Affiliates (as such term is defined in the Advisory Agreement) in connection with the selection, evaluation, acquisition,
origination, making or development of any Real Estate Assets, whether or not acquired, including legal fees and expenses, travel
and communications expenses, brokerage fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting
fees and expenses, title insurance premiums and the costs of performing due diligence.

 

    	 

    	 

    

“Acquisition Fee”
means the fee payable to the Advisor or its assignees pursuant to Section 10(a) of the Advisory Agreement.

 

“Act” means the
Delaware Revised Uniform Limited Partnership Act, as amended from time to time, and any successor to such statute.

 

“Additional Limited Partner”
means a Person that has executed and delivered an additional limited partner signature page in the form attached hereto, has been
admitted to the Partnership as a Limited Partner pursuant to Section 4.3 hereof and that is shown as such on the books and records
of the Partnership.

 

“Adjusted Capital Account Deficit”
means with respect to any Partner, the negative balance, if any, in such Partner’s Capital Account as of the end of any relevant
fiscal year, determined after giving effect to the following adjustments:

 

(a)               
credit to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to restore
to the Partnership pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Regulations, or (ii) is deemed to be obligated
to restore to the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations;
and

 

(b)              
debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations.

 

“Adjustment
Event” has the meaning set forth in Section 16.1(b).

 

“Advisor”
means American Realty Capital Global Advisors, LLC, a Delaware limited liability company, its successors and assignees.

 

“Advisory Agreement”
means the Advisory Agreement dated as of July 2, 2013, by and among the Partnership and the General Partner, as advisees, and the
Advisor, as advisor, as the same may be amended, supplemented or restated from time to time.

 

“Affected Gain”
has the meaning set forth in subparagraph 4(b) of Exhibit B.

 

“Affiliate” means,

 

(a)               
with respect to any individual Person, any member of the Immediate Family of such Person or a trust established for the
benefit of such member, or

 

(b)              
with respect to any Entity, any Person which, directly or indirectly through one or more intermediaries, controls, is controlled
by, or is under common control with, any such Entity. For purposes of this definition, “control,” when used with respect
to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

    	2

    	 

    

“Agreement” means
this Amended and Restated Agreement of Limited Partnership, as originally executed and as amended, supplemented or restated from
time to time, as the context requires.

 

“Articles of Incorporation”
means the General Partner’s Articles of Incorporation, filed with the Maryland State Department of Assessments and Taxation,
or other organizational document governing the General Partner, as amended, supplemented or restated from time to time.

 

“Assignee” means
a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who has not
become a Substituted Limited Partner, and who has the rights set forth in Section 11.5.

 

“Available Cash”
means, with respect to the applicable period of measurement (i.e., any period (other than the first period in which this calculation
of Available Cash is being made) beginning on the first day of the fiscal year, quarter or other period commencing immediately
after the last day of the fiscal year, quarter or other applicable period for purposes of the prior calculation of Available Cash
for or with respect to which a distribution has been made, and ending on the last day of the fiscal year, quarter or other applicable
period immediately preceding the date of the calculation), the excess, if any, as of such date, of

 

(a)               
the gross cash receipts of the Partnership for such period from all sources whatsoever, including the following:

 

(i)                
all rents, revenues, income and proceeds derived by the Partnership from its operations, including distributions received
by the Partnership from any Entity in which the Partnership has an interest;

 

(ii)              
all proceeds and revenues received by the Partnership on account of any sales of any Partnership property or as a refinancing
of or payment of principal, interest, costs, fees, penalties or otherwise on account of any borrowings or loans made by the Partnership
or financings or refinancings of any property of the Partnership;

 

(iii)            
the amount of any insurance proceeds and condemnation awards received by the Partnership;

 

(iv)            
all capital contributions and loans received by the Partnership from its Partners;

 

(v)              
all cash amounts previously reserved by the Partnership, to the extent such amounts are no longer needed for the specific
purposes for which such amounts were reserved; and

 

(vi)            
the proceeds of liquidation of the Partnership’s property in accordance with this Agreement;

 

over

 

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(b)              
 the sum of the following:

 

(i)                
all operating costs and expenses, including taxes and other expenses of the properties directly and indirectly held by the
Partnership and capital expenditures made during such period (without deduction, however, for any capital expenditures, charges
for Depreciation or other expenses not paid in cash or expenditures from reserves described in clause (viii) below);

 

(ii)              
all costs and expenses expended or paid during such period in connection with the sale or other disposition, or financing
or refinancing, of the property directly or indirectly held by the Partnership or the recovery of insurance or condemnation proceeds;

 

(iii)            
all fees provided for under this Agreement;

 

(iv)            
all debt service, including principal and interest, paid during such period on all indebtedness (including under any line
of credit) of the Partnership;

 

(v)              
all capital contributions, advances, reimbursements, loans or similar payments made to any Person in which the Partnership
has an interest;

 

(vi)            
all loans made by the Partnership in accordance with the terms of this Agreement;

 

(vii)          
all reimbursements to the General Partner or its Affiliates during such period; and

 

(viii)        
the amount of any new reserve or increase in reserves established during such period which the General Partner determines
is necessary or appropriate in its sole and absolute discretion.

 

Notwithstanding the foregoing, Available Cash shall not include
any cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement
of the dissolution and liquidation of the Partnership.

 

“Business Combination”
has the meaning set forth in Section 7.1(a)(iii)(D).

 

“Business Day”
means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required
by law to close.

 

“Capital Account”
means with respect to any Partner, the Capital Account maintained for such Partner in accordance with the following provisions:

 

(a)               
to each Partner’s Capital Account there shall be credited

 

(i)                
such Partner’s Capital Contributions;

 

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(ii)              
 such Partner’s distributive share of Net Income, Net Property Gain and any items in the nature of income or gain
which are specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and

 

(iii)            
the amount of any Partnership liabilities assumed by such Partner or which are secured by any asset distributed to such
Partner;

 

(b)              
to each Partner’s Capital Account there shall be debited;

 

(i)                
the amount of cash and the Gross Asset Value of any property distributed to such Partner pursuant to any provision of this
Agreement;

 

(ii)              
such Partner’s distributive share of Net Losses, Net Property Loss and any items in the nature of expenses or losses
which are specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and

 

(iii)            
the amount of any liabilities of such Partner assumed by the Partnership or which are secured by any asset contributed by
such Partner to the Partnership; and

 

(c)               
if all or a portion of a Partnership Interest is transferred in accordance with the terms of this Agreement, the transferee
shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest.

 

The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with Sections 1.704-1(b) and 1.704-2 of the Regulations,
and shall be interpreted and applied in a manner consistent with such Regulations. If the General Partner shall reasonably determine
that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including debits or credits
relating to liabilities which are secured by contributed or distributed assets or which are assumed by the Partnership, the General
Partner or any Limited Partner) are computed in order to comply with such Regulations, the General Partner may make such modification;
provided, that , all allocations of Partnership income, gain, loss and deduction continue to have “substantial economic
effect” within the meaning of Section 704(b) of the Code and that no Limited Partner is materially adversely affected by
any such modification.

 

“Capital Contribution”
means, with respect to any Partner, any cash, cash equivalents or the Gross Asset Value of property (net of any liabilities secured
by contributed property that the Partnership is considered to assume or take subject to under Section 752 of the Code) which such
Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof.

 

“Capital Transaction”
means any sale, or other disposition (other than a deemed disposition pursuant to Section 708(b)(1)(B) of the Code and the Regulations
thereunder) of all or substantially all of the assets and properties of the Partnership or a related series of transactions that,
taken together, result in the sale or other disposition of all or substantially all of the assets and properties of the Partnership.

 

    	5

    	 

    

“Cash Amount”
means an amount of cash per Partnership Unit equal to the value of one share of Common Stock as determined under the applicable
Exchange Rights Agreement on the Valuation Date of the Common Stock Amount.

 

“Cash Available for Distribution”
means the Available Cash other than Net Sales Proceeds.

 

“Certificate”
has the meaning set forth in the Recitals.

 

“Claims”
has the meaning set forth in Section 7.6(a)(i).

 

“Class B Unit”
means a Partnership Unit which is designated as a Class B Unit of the Partnership.

 

“Code” means the
Internal Revenue Code of 1986, as amended and in effect from time to time, as interpreted by the applicable regulations thereunder.
Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding
provision of future law.

 

“Common Stock”
means the common stock of the General Partner, $.01 par value per share. Common Stock may be issued in one or more classes or series
in accordance with the terms of the Articles of Incorporation. If, at any time, there is more than one class or series of Common
Stock, the term “Common Stock” shall, as the context requires, be deemed to refer to the class or series of Common
Stock that correspond to the class or series of Partnership Interests for which the reference to Common Stock is made.

 

“Common Stock Amount”
means that number of shares of Common Stock equal to the product of (a) the number of OP Units offered for exchange by an exchanging
Partner, multiplied by (b) the Exchange Factor as of the Valuation Date, provided, however, that if the General Partner
or the Operating Partnership issues to all holders of Common Stock rights, options, warrants or convertible, exercisable or exchangeable
securities entitling the stockholders to subscribe for or purchase Common Stock, or any other securities or property (collectively,
the “rights”), then the Common Stock Amount shall also include the rights that a holder of that number of shares of
Common Stock would be entitled to receive.

 

“Consent” means
the consent or approval of a proposed action by a Partner given in accordance with Section 14.2 hereof.

 

“Consent of the Limited Partners”
means the Consent of Limited Partners (excluding for this purpose any Partnership Interests held by the General Partner, any other
Person of which the General Partner owns or controls more than fifty percent (50%) of the voting interests and any Person directly
or indirectly owning or controlling more than fifty percent (50%) of the outstanding voting interests of the General Partner) holding
Percentage Interests that are greater than fifty percent (50%) of the aggregate Percentage Interests of all Limited Partners who
are not excluded for the purposes hereof.

 

“Constituent Person”
has the meaning set forth in Section 16.4(d) hereof.

 

    	6

    	 

    

“Contributed Property”
means each property, partnership interest, contract right or other asset, in such form as may be permitted by the Act, contributed
or deemed contributed to the Partnership by any Partner, including any interest in any successor partnership occurring as a result
of a termination of the Partnership pursuant to Section 708 of Code.

 

“Conversion
Date” has the meaning set forth in Section 16.4(a) hereof.

 

“Cost of Assets”
means, with respect to a Real Estate Asset, the purchase price, Acquisition Expenses, capital expenditures and other customarily
capitalized costs, but shall exclude Acquisition Fees associated with such Real Estate Asset.

 

“Debt” means,
as to any Person, as of any date of determination and without duplication, (a) all indebtedness of such Person for borrowed money
or for the deferred purchase price of property or services; (b) all amounts owed by such Person to banks or other Persons
in respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment
or other performance of obligations by such Person; (c) all indebtedness for borrowed money or for the deferred purchase price
of property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person’s
interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (d) obligations
of such Person incurred in connection with entering into a lease which, in accordance with generally accepted accounting principles,
should be capitalized.

 

“Depreciation”
means, with respect to any asset of the Partnership for any fiscal year or other period, the depreciation, depletion, amortization
or other cost recovery deduction, as the case may be, allowed or allowable for federal income tax purposes in respect of such asset
for such fiscal year or other period; provided, however, that except as otherwise provided in Section 1.704-2 of the
Regulations, if there is a difference between the Gross Asset Value (including the Gross Asset Value, as increased pursuant to
paragraph (d) of the definition of Gross Asset Value) and the adjusted tax basis of such asset at the beginning of such fiscal
year or other period, Depreciation for such asset shall be an amount that bears the same ratio to the beginning Gross Asset Value
of such asset as the federal income tax depreciation, depletion, amortization or other cost recovery deduction for such fiscal
year or other period bears to the beginning adjusted tax basis of such asset; provided, further, that if the federal income tax
depreciation, depletion, amortization or other cost recovery deduction for such asset for such fiscal year or other period is zero,
Depreciation of such asset shall be determined with reference to the beginning Gross Asset Value of such asset using any reasonable
method selected by the General Partner.

 

“Distribution Date”
has the meaning set forth in Section 5.1(a).

 

“Effective
Date” means the date upon which the Registration Statement relating to the General Partner’s public offering
of Common Stock has been declared effective by the Securities and Exchange Commission.

 

“Entity” means
any general partnership, limited partnership, corporation, joint venture, trust, business trust, real estate investment trust,
limited liability company, limited liability partnership, cooperative or association.

 

    	7

    	 

    

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding provisions of succeeding
laws).

 

“Excess Oversight
Fee” has the meaning set forth in Section 16.1(a)(i).

 

“Exchange Factor”
means 1.0, provided, however, that if the General Partner (a) declares or pays a dividend on its outstanding Common Stock
in Common Stock or makes a distribution to all holders of its outstanding Common Stock in Common Stock; (b) subdivides its outstanding
Common Stock; or (c) combines its outstanding Common Stock into a smaller number of shares of Common Stock, the Exchange Factor
shall be adjusted by multiplying the Exchange Factor by a fraction, the numerator of which shall be the number of shares of Common
Stock issued and outstanding on the record date for such dividend, contribution, subdivision or combination (assuming for such
purpose that such dividend, distribution, subdivision or combination has occurred as of such time), and the denominator of which
shall be the actual number of shares of Common Stock (determined without the above assumption) issued and outstanding on the record
date for such dividend, distribution, subdivision or combination. Any adjustment to the Exchange Factor shall become effective
immediately after the effective date of such event retroactive to the record date, if any, for such event.

 

“Exchange Right”
means the exchange right of a Limited Partner described in Section 8.6 and to be set forth in one or more Exchange Rights Agreements.

 

“Exchange Rights Agreements”
has the meaning set forth in Section 8.6.

 

“General Partner”
means American Realty Capital Global Trust, Inc., a Maryland corporation, and any successor as general partner of the Partnership.

 

“General Partner Interest”
means a Partnership Interest held by the General Partner, in its capacity as general partner. A General Partner Interest may be
expressed as a number of GP Units.

 

“GP Unit”
means a Partnership Unit which is designated as a GP Unit of the Partnership.

 

“Gross Asset Value”
means, with respect to any asset of the Partnership, such asset’s adjusted basis for federal income tax purposes, except
as follows:

 

(a)               
the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value
of such asset, without reduction for liabilities, as determined by the contributing Partner and the Partnership on the date of
contribution thereof;

 

(b)              
if the General Partner determines that an adjustment is necessary or appropriate to reflect the relative economic interests
of the Partners, the Gross Asset Values of all Partnership assets shall be adjusted in accordance with Sections 1.704-1(b)(2)(iv)(f)
and (g) of the Regulations to equal their respective gross fair market values, without reduction for liabilities, as reasonably
determined by the General Partner, as of the following times:

 

    	8

    	 

    

(i)                
 a Capital Contribution (other than a de minimis Capital Contribution) to the Partnership by a new or existing Partner as
consideration for a Partnership Interest;

 

(ii)              
the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership assets as consideration
for the repurchase or redemption of a Partnership Interest;

 

(iii)            
the liquidation of the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations; and

 

(iv)            
the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision
of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting
in a partner capacity or in anticipation of becoming a Partner.

 

(c)               
the Gross Asset Values of Partnership assets distributed to any Partner shall be the gross fair market values of such assets
(taking Section 7701(g) of the Code into account) without reduction for liabilities, as determined by the General Partner as of
the date of distribution; and

 

(d)              
the Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted
basis of such assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken
into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations (as set forth in Exhibit
B); provided, however, that Gross Asset Values shall not be adjusted pursuant to this paragraph (d) to the extent that
the General Partner determines that an adjustment pursuant to paragraph (b) above is necessary or appropriate in connection with
a transaction that would otherwise result in an adjustment pursuant to this paragraph (d).

 

At all times, Gross Asset Values shall be adjusted by any Depreciation
taken into account with respect to the Partnership’s assets for purposes of computing Net Income and Net Loss.

 

“Gross Proceeds”
means the aggregate purchase price of all shares of Common Stock sold for the account of the General Partner through an Offering,
without deduction for Organization and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any
share of Common Stock for which reduced selling commissions are paid to (i) Realty Capital Securities, LLC or any successor dealer
manager to the General Partner or (ii) a broker-dealer (where net proceeds to the General Partner are not reduced) shall be
deemed to be the full amount of the offering price per share of Common Stock pursuant to the Registration Statement for such Offering
without reduction.

 

“Incapacity” or
“Incapacitated” means,

 

(a)               
as to any individual who is a Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating
him incompetent to manage his person or his estate;

 

    	9

    	 

    

(b)              
 as to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation
or the revocation of its charter;

 

(c)               
as to any partnership which is a Partner, the dissolution and commencement of winding up of the partnership;

 

(d)              
as to any limited liability company which is a Partner, the dissolution and commencement of winding up of the limited liability
company;

 

(e)               
as to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership;

 

(f)               
as to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee);
or

 

(g)              
as to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when

 

(i)                
the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency
or other similar law now or hereafter in effect;

 

(ii)              
the Partner is adjudged as bankrupt or insolvent, or a final and nonappealable order for relief under any bankruptcy, insolvency
or similar law now or hereafter in effect has been entered against the Partner;

 

(iii)            
the Partner executes and delivers a general assignment for the benefit of the Partner’s creditors;

 

(iv)            
the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed
against the Partner in any proceeding of the nature described in clause (ii) above;

 

(v)              
the Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or
for all or any substantial part of the Partner’s properties;

 

(vi)            
any proceeding seeking liquidation, reorganization or other relief of or against such Partner under any bankruptcy, insolvency
or other similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement
thereof;

 

(vii)          
the appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated
or stayed within ninety (90) days of such appointment; or

 

(viii)        
an appointment referred to in clause (vii) which has been stayed is not vacated within ninety (90) days after the expiration
of any such stay.

 

    	10

    	 

    

“Include”, “includes”
and “including” shall be construed as if followed by the phrase “without limitation”.

 

“Included Assets”
means the Investments owned as of the Termination Date or the Investment Liquidity Date, as applicable, and any Investments acquired
after the Termination Date or the Investment Liquidity Date, as applicable, for which a contract to acquire such Investment had
been entered into by or on behalf of the General Partner as of the Termination Date or the Investment Liquidity Date, as applicable.

 

“Indemnitee” means

 

(a)               
any Person made a party to a proceeding by reason of:

 

(i)                
its status as the General Partner,

 

(ii)              
its status as a Limited Partner,

 

(iii)            
its status as the Service Provider,

 

(iv)            
its status as an investment advisor to the General Partner,

 

(v)              
its status as a trustee, director or officer of the Partnership, the General Partner, or the investment advisor to the General
Partner,

 

(vi)            
its status as a director, trustee, member or officer of any other Entity, each Person serving in such capacity at the request
of the Partnership or the General Partner, or

 

(vii)          
his or its liabilities, pursuant to a loan guarantee or otherwise, for any indebtedness of the Partnership or any Subsidiary
of the Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken
assets subject to); and

 

(b)              
such other Persons (including Affiliates of the General Partner, a Limited Partner, the Partnership or the Service Provider)
as the General Partner may designate from time to time (whether before or after the event giving rise to potential liability),
in its sole and absolute discretion.

 

“Initial Limited Partner”
means American Realty Capital Global Special Limited Partnership, LLC.

 

“Investment” or
“Investments” means any investment or investments by the Partnership, directly or indirectly, in Properties,
Loans or other Permitted Investments.

 

“Investment Liquidity Amount”
has the meaning set forth in Section 5.1(e).

 

“Investment Liquidity Date”
means the date on which an Investment Liquidity Event is consummated.

 

    	11

    	 

    

“Investment Liquidity Event”
means a liquidation or the sale of all or substantially all the Investments (regardless of the form in which such sale shall occur,
including through a merger or sale of stock or other interests in an entity, and regardless of whether such transaction is taxable
or tax-free). For the avoidance of doubt, an Investment Liquidity Event includes a Business Combination and a Transaction (including
a merger in which the General Partner is the surviving entity).

 

“Investment Liquidity Value”
has the meaning set forth in Section 5.1(e).

 

“IRS” means the
Internal Revenue Service of the United States (or any successor organization).

 

“Liability
Shortfall” has the meaning set forth in subparagraph 4(d) of Exhibit B.

 

“Lien” means any
lien, security interest, mortgage, deed of trust, charge, claim, encumbrance, pledge, option, right of first offer or first refusal
and any other right or interest of others of any kind or nature, actual or contingent, or other similar encumbrance of any nature
whatsoever.

 

“Limited Partner”
means, prior to the admission of the first Additional Limited Partner to the Partnership, the Initial Limited Partner, and thereafter
any Person named as a Limited Partner in Exhibit A, as such Exhibit may be amended from time to time, upon the execution and delivery
by such Person of an additional limited partner signature page, or any Substituted Limited Partner or Additional Limited Partner,
in such Person’s capacity as a Limited Partner of the Partnership.

 

“Limited Partner Interest”
means a Partnership Interest of a Limited Partner in the Partnership representing a fractional part of the Partnership Interests
of all Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled, as provided
in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Limited
Partner Interest may be expressed as a number of Partnership Units (other than GP Units).

 

“Liquidating Event”
has the meaning set forth in Section 13.1(b) hereof.

 

“Liquidating
Gain” means net capital gain realized in connection with an actual or hypothetical Capital Transaction, including
the amount of any adjustment of the Gross Asset Value of any Real Estate Asset which requires that the Capital Accounts of the
Partners be adjusted pursuant to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations.

 

“Liquidator” has
the meaning set forth in Section 13.2(a)(iii) hereof.

 

“Liquidity Event”
means the first to occur of the following: (a) an OP Unit Transaction, (b) a Listing, or (c) a Termination Without Cause.

 

“Listing” means
the listing of the shares of Common Stock on a national securities exchange.

 

    	12

    	 

    

“Listing Note”
has the meaning set forth in Section 5.1(c) hereof.

 

“Loans” means
mortgage loans and other types of debt financing investments made by the Partnership, either directly or indirectly, including
through ownership interests in a joint venture or other entity and including mezzanine loans, B-notes, bridge loans, convertible
mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans.

 

“Management Agreement”
means the Property Management and Leasing Agreement between the General Partner, the Partnership and American Realty Capital Global
Properties, LLC, a Delaware limited liability company, as the manager.

 

“Market Value”
means the value calculated based on the average market value of the shares of Common Stock issued and outstanding at Listing over
the 30 days beginning 180 days after the shares of Common Stock are first listed or included for quotation.

 

“NAV” means the
General Partner’s net asset value, calculated pursuant to the valuation guidelines adopted by the General Partner’s
board of directors.

 

“NAV Pricing Start Date”
means the first business day of the first quarter after the General Partner acquires at least $1.2 billion in total portfolio assets,
calculated on the basis of cost, including the General Partner’s pro rata share of debt attributable to such assets,
on which date the General Partner will begin calculating NAV.

 

“Net Income” or
“Net Loss” means, for each fiscal year or other applicable period, an amount equal to the Partnership’s
taxable income or loss for such year or period as determined for federal income tax purposes by the General Partner, determined
in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to
be stated separately pursuant to Section 703(a) of the Code shall be included in taxable income or loss), adjusted as follows:

 

(a)               
by including as an item of gross income any tax-exempt income received by the Partnership and not otherwise taken into account
in computing Net Income or Net Loss;

 

(b)              
by treating as a deductible expense any expenditure of the Partnership described in Section 705(a)(2)(B) of the Code (or
which is treated as a Section 705(a)(2)(B) expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) and not
otherwise taken into account in computing Net Income or Net Loss, including amounts paid or incurred to organize the Partnership
(unless an election is made pursuant to Section 709(b) of the Code) or to promote the sale of interests in the Partnership and
by treating deductions for any losses incurred in connection with the sale or exchange of Partnership property disallowed pursuant
to Section 267(a)(1) or 707(b) of the Code as expenditures described in Section 705(a)(2)(B) of the Code;

 

(c)               
by taking into account Depreciation in lieu of depreciation, depletion, amortization and other cost recovery deductions
taken into account in computing taxable income or loss;

 

    	13

    	 

    

(d)              
 by computing gain or loss resulting from any disposition of Partnership property with respect to which gain or loss is
recognized for federal income tax purposes by reference to the Gross Asset Value of such property rather than its adjusted tax
basis;

 

(e)               
if an adjustment of the Gross Asset Value of any Partnership asset which requires that the Capital Accounts of the Partners
be adjusted pursuant to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations, by taking into account the amount of
such adjustment as if such adjustment represented additional Net Income or Net Loss pursuant to Exhibit B; and

 

(f)               
by excluding Net Property Gain and Net Property Loss; and

 

(g)              
by not taking into account in computing Net Income or Net Loss items separately allocated to the Partners pursuant to paragraphs
2 and 3 of Exhibit B.

 

“Net Investment”
means (a) as it relates to the Stockholders, the total amount of Gross Proceeds raised in all Offerings; and (b) as it relates
to the Limited Partners (other than the General Partner in its capacity as a Limited Partner) the total amount of Capital Contributions.

 

“Net Investment Balance”
means the excess, if any, of: (a) the Net Investment, over (b) in each case, without duplication, (i) as it relates to the Stockholders,
all prior distributions to Stockholders of Net Sales Proceeds and any amounts paid by the General Partner to repurchase shares
of Common Stock pursuant to the General Partner’s plan for redemption of Common Stock or otherwise; and (ii) as it relates
to the Limited Partners, all distributions pursuant to Section 5.1(b)(i) (other than distribution to the General Partner in its
capacity as a Limited Partner), and all proceeds or property used to redeem Limited Partner Interests (except those held directly
or indirectly by the General Partner).

 

“Net Property Gain”
or “Net Property Loss” means, for each fiscal year or other applicable period, an amount equal to the
Partnership’s taxable gain or loss for such year or period from Sales, including the amount of any adjustment of the Gross
Asset Value of any Real Estate Asset which requires that the Capital Accounts of the Partners be adjusted pursuant to Sections
1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations. For these purposes, the Gross Asset Value of the Real Estate Assets shall
reflect the market capitalization of the General Partner (increased by the amount of any Partnership liabilities).

 

“Net Sales Proceeds”
has the meaning set forth in the Articles of Incorporation.

 

“Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(b)(1) and 1.704-2(c) of the Regulations.

 

“Nonrecourse Liabilities”
has the meaning set forth in Section 1.704-2(b)(3) of the Regulations.

 

“Note” means a
non-interest bearing promissory note which shall be repaid from the Net Sales Proceeds of each sale of an Investment that occurs
after the date of Listing or the Termination Date, as applicable. The Partnership shall be the sole obligor with respect to any
Note, and may pay at its discretion all or a portion of such Note in shares of Common Stock,

 

    	14

    	 

    

which may or may not be registered under the Securities Act
of 1933, as amended, or cash. Any Note shall not represent an indebtedness of the Partnership, but rather shall be evidence of
a distribution obligation of the Partnership to the Special Limited Partner pursuant to the terms of Section 5.1.

 

“Offer” has the
meaning set forth in Section 11.2(c)(i).

 

“Offering” means
the public offering of shares of Common Stock pursuant to the Registration Statement on Form S-11.

 

“OP Unit” means
a Partnership Unit which is designated as an OP Unit of the Partnership.

 

“OP Unit Economic Balance”
has the meaning set forth in subparagraph 1(c)(ii) of Exhibit B.

 

“OP Unit Transaction”
means, in connection with a Class B Unit, a transaction to which the Partnership or the General Partner shall be a party, including
a merger, consolidation, unit exchange, self-tender offer for all or substantially all OP Units or other business combination or
reorganization, or sale of all or substantially all of the Partnership’s assets (but excluding any transaction which constitutes
an Adjustment Event and any merger in which the General Partner is the surviving entity) in each case as a result of which OP Units
shall be exchanged for or converted into the right, or the holders of such Units shall otherwise be entitled, to receive cash,
securities or other property or any combination thereof.

 

“Organization and Offering Expenses”
means all expenses incurred by or on behalf of the General Partner in connection with or in preparing the General Partner for registration
of and subsequently offering and distributing its shares of Common Stock to the public, whether incurred before, on or after the
date of the Advisory Agreement, which may include total underwriting and brokerage discounts and commissions (including fees of
the underwriters’ attorneys); any expense allowance granted by the General Partner to the underwriter or any reimbursement
of expenses of the underwriter by the General Partner; expenses for printing, engraving and mailing; compensation of employees
while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and
expenses of qualification of the sale of the securities under federal and state laws, including taxes and fees, accountants’
and attorneys’ fees.

 

“Original
Agreement” has the meaning set forth in the Recitals.

 

“Partner” means
the General Partner or a Limited Partner, and “Partners” means the General Partner and the Limited Partners collectively.
Solely for purposes of Exhibit B, “Partner” shall include the Special Limited Partner.

 

“Partner Nonrecourse Debt”
has the meaning set forth in Section 1.704-2(b)(4) of the Regulations.

 

“Partner Nonrecourse Debt Minimum
Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that
would result if such

 

    	15

    	 

    

Partner Nonrecourse Debt were treated as a Nonrecourse Liability,
determined in accordance with Section 1.704-2(i)(3) of the Regulations.

 

“Partner Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(i)(1) and (2) of the Regulations, and the amount of Partner Nonrecourse Deductions
with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Section
1.704-2(i)(2) of the Regulations.

 

“Partnership”
means the limited partnership formed under the Act and pursuant to this Agreement, and any successor thereto.

 

“Partnership Interest”
means an ownership interest in the Partnership representing a Capital Contribution by either a Limited Partner or the General Partner
or the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by
a new Partner acting in a partner capacity or in anticipation of becoming a Partner, and includes any and all benefits to which
the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership
Units.

 

“Partnership Minimum Gain”
has the meaning set forth in Section 1.704-2(b)(2) of the Regulations, and the amount of Partnership Minimum Gain, as well as any
net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year shall be determined in accordance with the
rules of Section 1.704-2(d) of the Regulations.

 

“Partnership Record Date”
means the record date established by the General Partner for a distribution pursuant to Section 5.1(a) hereof, which record date
shall be the same as the record date established by the General Partner for a distribution to its stockholders of some or all of
its portion of such distribution.

 

“Partnership Unit”
means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder. Partnership Units consist of
GP Units, OP Units, Class B Units and any classes or series of Partnership Units established after the date hereof. The number
of Partnership Units outstanding and the Percentage Interests in the Partnership represented by such Partnership Units are set
forth in Exhibit A, as such Exhibit may be amended from time to time. The ownership of Partnership Units shall be evidenced
by such form of certificate for Partnership Units as the General Partner adopts from time to time unless the General Partner determines
that the Partnership Units shall be uncertificated securities.

 

“Partnership Year”
means the fiscal year of the Partnership, as set forth in Section 9.2 hereof.

 

“Percentage Interest”
means, as to a Partner, the fractional part of the Partnership Interests owned by such Partner and expressed as a percentage as
specified in Exhibit A, as such Exhibit may be amended from time to time.

 

“Permitted Investments”
means all investments (other than Properties and Loans) in which the Partnership acquires an interest, either directly or indirectly,
including through

 

    	16

    	 

    

ownership interests in a joint venture or other entity, pursuant
to the Certificate, this Agreement and the investment objectives and policies adopted by the General Partner from time to time,
other than short-term investments acquired for purposes of cash management, and that allow the General Partner to meet the REIT
Requirements.

 

“Permitted Transferee”
means any person to whom Partnership Units are Transferred in accordance with Section 11.3.

 

“Person” means
an individual or Entity.

 

“Precontribution Gain”
has the meaning set forth in subparagraph 4(c) of Exhibit B.

 

“Priority Return”
means a 6% cumulative, non-compounded, pre-tax annual return (based on a 365-day year).

 

“Priority Return Balance”
means, as of any date, the excess, if any, of (a) a Priority Return from the Effective Date until such Distribution Date on the
Net Investment Balance (calculated like simple interest on a daily basis based on a 365-day year), over (b) distributions made
under Sections 5.1(a) and (b)(ii); provided, however, that for purposes of calculating the Priority Return Balance, the
Net Investment Balance shall be determined on a daily basis.

 

“Property” or
“Properties” means any real property or properties transferred or conveyed to the Partnership or any
subsidiary of the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to
a joint venture or partnership in which the Partnership is, directly or indirectly, a co-venturer or partner.

 

“PTP Safe
Harbors” has the meaning set forth in Section 11.6(f).

 

“Real Estate
Assets” means any investment by the Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Property”
means (a) land, (b) rights in land (including leasehold interests), and (c) any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.

 

“Quarter” means
each of the three-month periods ending on March 31, June 30, September 30 and December 31.

 

“Registration Statement”
means the Registration Statement on Form S-11 filed by the General Partner with the Securities and Exchange Commission, and any
amendments thereof at any time made, relating to the Common Stock.

 

“Regulations”
means the final, temporary or proposed income tax regulations promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

“Regulatory Allocations”
means the allocations set forth in paragraph 2 of Exhibit B.

 

    	17

    	 

    

“REIT” means a
real estate investment trust as defined in Section 856 of the Code.

 

“REIT Requirements”
has the meaning set forth in Section 5.2.

 

“Restricted
Class B Units” has the meaning set forth in Section 16.2(a)(i).

 

“Safe Harbor”
has the meaning set forth in Section 10.2(d).

 

“Safe Harbor Election”
has the meaning set forth in Section 10.2(d).

 

“Safe Harbor Interests”
has the meaning set forth in Section 10.2(d).

 

“Sales” has the
meaning set forth in the Articles of Incorporation.

 

“Securities” has
the meaning set forth in Section 4.2(b).

 

“Service Provider”
means any Person or Persons, appointed, employed or contracted with by the Initial Limited Partner to perform any of the services
required to be performed by the Initial Limited Partner pursuant to the Advisory Agreement.

 

“Special Limited Partner”
means American Realty Capital Global Special Limited Partnership, LLC, a Delaware limited liability company, which shall be a limited
partner of the Partnership and recognized as such under applicable Delaware law, but not a “Limited Partner” within
the meaning of this Agreement.

 

“Special Limited Partner Interest”
means the interest of the Special Limited Partner in the Partnership representing its right as the holder of an interest in distributions
described in Sections 5.1(b)(iii)(A), (c), (d), (e) and (f) (and any corresponding allocations of income, gain, loss and deduction
under this Agreement).

 

“Stockholder”
means a holder of Common Stock.

 

“Stockholder Distributions”
means any distributions of money or other property by the General Partner to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.

 

“Subsidiary” means,
with respect to any Person, any corporation, partnership, limited liability company or other entity of which a majority of (a)
the voting power of the voting equity securities, or (b) the outstanding equity interests (whether or not voting), is owned, directly
or indirectly, by such Person.

 

“Substituted Limited Partner”
means a Person who is admitted as a Limited Partner to the Partnership pursuant to Section 11.4.

 

“Surviving
General Partner” has the meaning set forth in Section 11.2(d)(i)(A).

 

“Tax Allocations”
means the allocations set forth in paragraph 4 of Exhibit B.

 

“Tax Items” has
the meaning set forth in subparagraph 4(a) of Exhibit B.

 

    	18

    	 

    

“Termination”
means the termination of the Advisory Agreement.

 

“Termination
Amount” means the Termination Liquidity Amount, the Termination Listing Amount or the amount distributable pursuant
to Section 5.1(d)(i) in the form of a Termination Note.

 

“Termination Date”
means the date of Termination.

 

“Termination
Liquidity Amount” has the meaning set forth in Section 5.1(d)(ii)(B).

 

“Termination
Listing Amount” has the meaning set forth in Section 5.1(d)(ii)(A).

 

“Termination
Note” has the meaning set forth in Section 5.1(d)(i).

 

“Termination
Without Cause” means the termination of the Advisory Agreement as provided in the Advisory Agreement by the Independent
Directors (as defined in the Advisory Agreement) of the General Partner without Cause (as defined in the Advisory Agreement).

 

“Transaction”
has the meaning set forth in Section 11.2(c).

 

“Transfer” as
a noun, means any sale, assignment, conveyance, pledge, hypothecation, gift, encumbrance or other transfer, and as a verb, means
to sell, assign, convey, pledge, hypothecate, give, encumber or otherwise transfer.

 

“Unrestricted
Class B Units” has the meaning set forth in Section 16.2(a)(ii) hereof.

 

“Valuation Date”
means the date of receipt by the Partnership and the General Partner of notice from an exchanging Partner that such Partner is
exercising its Exchange Rights or, if such date is not a Business Day, the first Business Day thereafter.

 

“Value” means
the Offering price for a share of Common Stock less any selling commissions and dealer manager fee that would be payable with respect
to the sale of a share of Common Stock.

 

Certain additional terms and phrases have
the meanings set forth in Exhibit B.

 

Article
2.

ORGANIZATIONAL MATTERS

 

2.1             
Formation

 

The General Partner has formed the Partnership
by filing the Certificate on July 12, 2011 in the office of the Delaware Secretary of State. The Partnership is a limited partnership
organized pursuant to the provision of the Act and upon the terms and conditions set forth in this Agreement. Except as expressly
provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership
shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes.

 

2.2             
Name

 

    	19

    	 

    

The name of the Partnership is American
Realty Capital Global Operating Partnership, L.P. The Partnership’s business may be conducted under any other name or names
deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited
Partnership”, “LP”, “Ltd.” or similar words, phrases or letters shall be included in the Partnership’s
name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its
sole and absolute discretion may change the name of the Partnership and shall notify the Limited Partners of such change in the
next regular communication to the Limited Partners.

 

2.3             
Registered Office and Agent; Principal Office

 

The address of the registered office of
the Partnership in the State of Delaware and the name and address of the registered agent for service of process on the Partnership
in the State of Delaware is the Corporation Service Company, 2711 Centerville Road Suite 400, Wilmington, Delaware 19808. The principal
office of the Partnership shall be 405 Park Avenue, New York, New York 10022, or such other place as the General Partner may from
time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such other place or places within
or outside the State of Delaware as the General Partner deems advisable.

 

2.4             
Power of Attorney

 

(a)               
Each Limited Partner and each Assignee who accepts Partnership Units (or any rights, benefits or privileges associated
therewith) is deemed to irrevocably constitute and appoint the General Partner, any Liquidator, and authorized officers and attorneys-in-fact
of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact,
with full power and authority in its name, place and stead to:

 

(i)                
execute, swear to, acknowledge, deliver, file and record in the appropriate public offices

 

(A)            
all certificates, documents and other instruments (including this Agreement and the Certificate and all amendments
or restatements thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue
the existence or qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have
limited liability) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business
or own property, including any documents necessary or advisable to convey any Contributed Property to the Partnership;

 

(B)             
all instruments that the General Partner or any Liquidator deems appropriate or necessary to reflect any amendment,
change, modification or restatement of this Agreement in accordance with its terms;

 

(C)             
all conveyances and other instruments or documents that the General Partner or any Liquidator deems appropriate or
necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including a certificate
of cancellation;

 

    	20

    	 

    

(D)            
 all instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other
events described in, Article 11, 12 or 13 hereof or the Capital Contribution of any Partner;

 

(E)             
all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges
of Partnership Interest; and

 

(F)              
amendments to this Agreement as provided in Article 14 hereof; and

 

(ii)              
execute, swear to, seal, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments
appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give,
confirm or ratify any vote, consent, approval, agreement or other action which is made or given by the Partners hereunder or is
consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator,
to effectuate the terms or intent of this Agreement.

 

Nothing contained herein shall be construed as authorizing the
General Partner or any Liquidator to amend this Agreement except in accordance with Article 14 hereof or as may be otherwise expressly
provided for in this Agreement.

 

(b)           (i)               The
foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact
that each of the Limited Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated
by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by
the subsequent Incapacity of any Limited Partner or Assignee and the Transfer of all or any portion of such Limited Partner’s
or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors,
assigns and personal representatives.

 

(ii)              
Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner
or any Liquidator, acting in good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives
any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator,
taken in good faith under such power of attorney.

 

(iii)            
Each Limited Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within fifteen
(15) days after receipt of the General Partner’s or Liquidator’s request therefore, such further designation, powers
of attorney and other instruments as the General Partner or the Liquidator, as the case may be, deems necessary to effectuate this
Agreement and the purposes of the Partnership.

 

(c)               
For the purposes of this Section 2.4, the term “Limited Partner” shall be deemed to include the Special
Limited Partner, unless the context otherwise requires.

 

2.5             
Term

 

    	21

    	 

    

The term of the Partnership shall commence
on the date hereof and shall continue until December 31, 2099, unless the Partnership is dissolved sooner pursuant to the provisions
of Article 13 or as otherwise provided by law.

 

Article
3.

PURPOSE

 

3.1             
Purpose and Business

 

(a)               
The purpose and nature of the business to be conducted by the Partnership is to conduct any business that may be
lawfully conducted by a limited partnership organized pursuant to the Act including to engage in the following activities:

 

(i)                
to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange,
and otherwise dispose of or deal with the properties described in the prospectus contained in the Registration Statement;

 

(ii)              
to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange,
and otherwise dispose of or deal with real and personal property of all kinds;

 

(iii)            
to enter into any partnership, joint venture, corporation, limited liability company, trust or other similar arrangement
to engage in any of the foregoing;

 

(iv)            
to undertake such other activities as may be necessary, advisable, desirable or convenient to the business of the
Partnership; and

 

(v)              
to engage in such other ancillary activities as shall be necessary or desirable to effectuate the foregoing purposes;

 

provided, however , that such business shall be limited
to and conducted in such a manner as to permit the General Partner at all times to be classified as a REIT, unless the General
Partner determines not to qualify as a REIT or ceases to qualify as a REIT for any reason not related to the business conducted
by the Partnership.

 

(b)              
The Partnership shall have all powers necessary or desirable to accomplish the purposes enumerated.

 

3.2             
Powers

 

(a)               
The Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental
to or convenient for the furtherance and accomplishment of the purposes and business described herein and for the protection and
benefit of the Partnership including full power and authority to enter into, perform, and carry out contracts of any kind, to borrow
money and to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other Lien, and, directly
or indirectly, to acquire, own, improve, develop and construct real property, and lease, sell, transfer and dispose of real

 

    	22

    	 

    

property; provided, however, that the Partnership shall
not take, or refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute discretion,

 

(i)                
could adversely affect the ability of the General Partner to continue to qualify as a REIT, unless the General Partner
otherwise ceases to qualify as a REIT;

 

(ii)              
could subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code; or

 

(iii)            
could violate any law or regulation of any governmental body or agency having jurisdiction over the General Partner
or its securities, unless such action (or inaction) shall have been specifically consented to by the General Partner in writing.

 

(b)              
The General Partner also is empowered to do any and all acts and things necessary, appropriate or advisable to ensure
that the Partnership will not be classified as a “publicly traded partnership” for the purposes of Section 7704 of
the Code, including but not limited to imposing restrictions on exchanges of Partnership Units.

 

Article
4.

CAPITAL CONTRIBUTIONS

 

4.1             
Capital Contributions of the Partners

 

(a)               
The Partners have made the Capital Contributions as set forth in Exhibit A.

 

(b)              
To the extent the Partnership acquires any property by the merger of any other Person into the Partnership or the
contribution of assets by any other Person, Persons who receive Partnership Interests in exchange for their interests in the Person
merging into or contributing assets to the Partnership shall become Limited Partners and shall be deemed to have made Capital Contributions
as provided in the applicable merger agreement or contribution agreement and as set forth in Exhibit A, as amended to reflect
such deemed Capital Contributions.

 

(c)               
As of the effective date of this Agreement, the Partnership shall have three classes of Partnership Units, entitled
“GP Units”, “OP Units” and “Class B Units”, respectively. The Class B Units shall have the
same rights, privileges and preferences as the OP Units, except as set forth in Article 16. Each Partner shall own Partnership
Units in the amounts set forth for such Partner in Exhibit A and shall have a Percentage Interest in the Partnership as
set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to time by the General
Partner to the extent necessary to reflect accurately exchanges, additional Capital Contributions, the issuance of additional Partnership
Units, transfers of Partnership Units or similar events having an effect on any Partner’s Percentage Interest.

 

(d)              
The number of Partnership Units held by the General Partner, in its capacity as general partner, as evidenced by
GP Units, shall be deemed to be the General Partner Interest.

 

(e)               
Except as otherwise may be expressly provided herein, the Partners shall have no obligation to make any additional
Capital Contributions or provide any additional funding to the

 

    	23

    	 

    

Partnership (whether in the form of loans, repayments of loans
or otherwise) and no Partner shall have any obligation to restore any deficit that may exist in its Capital Account, either upon
a liquidation of the Partnership or otherwise.

 

4.2             
Additional Funds; Restrictions on the General Partner

 

(a)           (i)The sums of money required to finance the business and affairs of the Partnership shall be derived from the
Capital Contributions made to the Partnership by the Partners as set forth in Section 4.1 and from funds generated from the operation
and business of the Partnership, including rents and distributions directly or indirectly received by the Partnership from any
Subsidiary.

 

(ii)              
If additional financing is needed from sources other than as set forth in Section 4.2(a)(i) for any reason, the General
Partner may, in its sole and absolute discretion, in such amounts and at such times as it solely shall determine to be necessary
or appropriate,

 

(A)            
cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership
in accordance with Section 4.3;

 

(B)             
make additional Capital Contributions to the Partnership (subject to the provisions of Section 4.2(b));

 

(C)             
cause the Partnership to borrow money, enter into loan arrangements, issue debt securities, obtain letters of credit
or otherwise borrow money on a secured or unsecured basis;

 

(D)            
make a loan or loans to the Partnership (subject to Section 4.2(b)); or

 

(E)             
sell any assets or properties directly or indirectly owned by the Partnership.

 

(iii)            
In no event shall any Limited Partners be required to make any additional Capital Contributions or any loan to, or
otherwise provide any financial accommodation for the benefit of, the Partnership.

 

(b)              
The General Partner shall not issue any debt securities, any preferred stock or any common stock (including additional
Common Stock (other than (i) as payment of the Common Stock Amount or (ii) in connection with the conversion or exchange of securities
of the General Partner solely in conversion or exchange for other securities of the General Partner)) or rights, options, warrants
or convertible, exercisable or exchangeable securities containing the right to subscribe for or purchase any of the foregoing (collectively,
“Securities”), other than to all holders of Common Stock, unless the General Partner shall,

 

(i)                
in the case of debt securities, lend to the Partnership the proceeds of or consideration received for such Securities
on the same terms and conditions, including interest rate and repayment schedule, as shall be applicable with respect to or incurred
in

 

    	24

    	 

    

connection with the issuance of such Securities and
the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable);

 

(ii)              
in the case of equity Securities senior or junior to the Common Stock as to dividends and distributions on liquidation,
contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received for such
Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable),
and receive from the Partnership, interests in the Partnership in consideration therefor with the same terms and conditions, including
dividend, dividend priority and liquidation preference, as are applicable to such Securities; and

 

(iii)            
in the case of Common Stock or other equity Securities on a parity with the Common Stock as to dividends and distributions
on liquidation, (including Common Stock or other Securities granted as a stock award to directors and officers of the General Partner
or directors, officers or employees of its Affiliates in consideration for services or future services, and Common Stock issued
pursuant to a dividend reinvestment plan or issued to enable the General Partner to make distributions to satisfy the REIT Requirements),
contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets, including services)
received for such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion
thereof (if applicable), and receive from the Partnership a number of additional Partnership Units in consideration therefor equal
to the product of

 

(A)            
the number of shares of Common Stock or other equity Securities issued by the General Partner, multiplied by

 

(B)             
a fraction the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date
of such contribution.

 

4.3             
Issuance of Additional Partnership Interests; Admission of Additional Limited Partners

 

(a)               
In addition to any Partnership Interests issuable by the Partnership pursuant to Section 4.2, the General Partner
is authorized to cause the Partnership to issue additional Partnership Interests (or options therefore) in the form of Partnership
Units or other Partnership Interests in one or more series or classes, or in one or more series of any such class senior, on a
parity with, or junior to the Partnership Units to any Persons at any time or from time to time, on such terms and conditions,
as the General Partner shall establish in each case in its sole and absolute discretion subject to Delaware law, including (i)
the allocations of items of Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests,
(ii) the right of each class or series of Partnership Interests to share in Partnership distributions, and (iii) the rights of
each class or series of Partnership Interest upon dissolution and liquidation of the Partnership; provided, however, that
no such Partnership Interests shall be issued to the General Partner unless either (A) the Partnership Interests are issued in
connection with the grant, award, or issuance of Common Stock or other equity interests in the General Partner having designations,
preferences and other rights such that the economic interests attributable to such Common Stock or other equity interests are substantially
similar to the designations, preferences

 

    	25

    	 

    

and other rights (except voting rights) of the Partnership Interests
issued to the General Partner in accordance with this Section 4.3(a) or (B) the additional Partnership Interests are issued to
all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such class,
without any approval being required from any Limited Partner or any other Person; provided further, however, that:

 

(i)                
such issuance does not cause the Partnership to become, with respect to any employee benefit plan subject to Title
I of ERISA or Section 4975 of the Code, a “party in interest” (as defined in Section 3(14) of ERISA) or a “disqualified
person” (as defined in Section 4975(e) of the Code); and

 

(ii)              
such issuance would not cause any portion of the assets of the Partnership to constitute assets of any employee benefit
plan pursuant to Section 2510.3-101 of the regulations of the United States Department of Labor.

 

(b)              
Subject to the limitations set forth in Section 4.3(a), the General Partner may take such steps as it, in its sole
and absolute discretion, deems necessary or appropriate to admit any Person as a Limited Partner of the Partnership or to issue
any Partnership Interests, including amending the Certificate, Exhibit A or any other provision of this Agreement.

 

4.4             
Contribution of Proceeds of Issuance of Common Stock

 

In connection with any offering, grant,
award, or issuance of Common Stock or securities, rights, options, warrants or convertible or exchangeable securities pursuant
to Section 4.2, the General Partner shall make aggregate Capital Contributions to the Partnership of the proceeds raised in
connection with such offering, grant, award, or issuance, including any property issued to the General Partner pursuant to a merger
or contribution agreement in exchange for Common Stock; provided, however, that if the proceeds actually received by the
General Partner are less than the gross proceeds of such offering, grant, award, or issuance as a result of any underwriter’s
discount, commission, or fee or other expenses paid or incurred in connection with such offering, grant, award, or issuance, then
the General Partner shall make a Capital Contribution to the Partnership in the amount equal to the sum of (i) the net proceeds
of such issuance plus (ii) an intangible asset in an amount equal to the capitalized costs of the General Partner relating to such
issuance of Common Stock. Upon any such Capital Contribution by the General Partner, the Capital Account of the General Partner
shall be increased by the amount of its Capital Contribution as described in the previous sentence.

 

4.5             
Repurchase of Common Stock; Shares-In-Trust

 

(a)               
If the General Partner shall elect to purchase from its stockholders Common Stock for the purpose of delivering such
Common Stock to satisfy an obligation under any distribution reinvestment plan adopted by the General Partner, any employee stock
purchase plan adopted by the General Partner, or for any other purpose, the purchase price paid by the General Partner for such
Common Stock and any other expenses incurred by the General Partner in connection with such purchase shall be considered expenses
of the Partnership and shall be reimbursed to the General Partner, subject to the condition that:

 

    	26

    	 

    

(i)                
 if such Common Stock subsequently is to be sold by the General Partner, the General Partner shall pay to the Partnership
any proceeds received by the General Partner from the sale of such Common Stock (provided that an exchange of Common Stock for
Partnership Units pursuant to the applicable Exchange Rights Agreement would not be considered a sale for such purposes); and

 

(ii)              
if such Common Stock is not re-transferred by the General Partner within 30 days after the purchase thereof, the
General Partner shall cause the Partnership to cancel a number of Partnership Units held by the General Partner (as applicable)
equal to the product of

 

(x)the number of shares of such
Common Stock, multiplied by

 

(y)a fraction, the numerator
of which is one and the denominator of which is the Exchange Factor in effect on the date of such cancellation.

 

(b)              
If the General Partner purchases shares of Common Stock from the Trust (as from time to time defined in the Articles
of Incorporation), the Partnership will purchase from the General Partner a number of Partnership Units, at a price per Partnership
Unit equal to the price per share of Common Stock paid by the General Partner, equal to the product of

 

(i)                
the number of shares of Common Stock purchased by the General Partner from the Trust, multiplied by

 

(ii)              
a fraction, the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date
of such purchase.

 

4.6             
No Third-Party Beneficiary

 

No creditor or other third party having
dealings with the Partnership shall have the right to enforce the right or obligations of any Partner to make Capital Contributions
or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions
of this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors
and assigns.

 

4.7             
No Interest; No Return

 

(a)               
No Partner shall be entitled to interest on its Capital Contribution or on such Partner’s Capital Account.

 

(b)              
Except as provided herein or by law, no Partner shall have any right to demand or receive the return of its Capital
Contribution from the Partnership.

 

4.8             
No Preemptive Rights.

 

Subject to any preemptive rights that may
be granted pursuant to Section 4.3 hereof, no Person shall have any preemptive or other similar right with respect to

 

    	27

    	 

    

(a)               
 additional Capital Contributions or loans to the Partnership; or

 

(b)              
issuance or sale of any Partnership Units or other Partnership Interests.

 

Article
5.

DISTRIBUTIONS

 

5.1             
Distributions

 

(a)               
Cash Available for Distribution. Subject to the provisions of Sections 5.3, 5.4, 12.2(c) and 13.2, the General
Partner shall cause the Partnership to distribute, at such times as the General Partner shall determine (each a “Distribution
Date”), an amount of Cash Available for Distribution, determined by the General Partner in its sole discretion to the Partners
holder GP Units, OP Units and/or Class B Units who are Partners on the applicable Partnership Record Date, in accordance with each
such Partner’s respective Percentage Interest.

 

(b)              
Net Sales Proceeds. Subject to the provisions of Sections 5.1(f), 5.3, 5.4, 12.2(c) and 13.2, Net Sales Proceeds
shall be distributed as follows:

 

(i)                
First, 100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective
Percentage Interest with respect to such GP Units and/or OP Units until the Net Investment Balance is zero;

 

(ii)              
Second, 100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective
Percentage Interest with respect to such GP Units and/or OP Units until such Partners have received in the aggregate, pursuant
to this Section 5.1(b)(ii) and Section 5.1(a), an amount such that the Priority Return Balance is zero; and

 

(iii)            
Thereafter, (A) 15% to the Special Limited Partner, and (B) 85% to be distributed to the Partners holding
GP Units, OP Units and/or Class B Units in proportion to their respective Percentage Interests with respect to such GP Units, OP
Units and/or Class B Units.

 

(c)               
Listing Amounts. Upon a Listing and subject to Section 5.1(f), the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest in the form of a Note
(the “Listing Note”) equal to 15% of the amount, if any, by which (i) the sum of (A) the Market Value of all
issued and outstanding shares of Common Stock plus (B) the sum of all Stockholder Distributions paid by the General Partner prior
to Listing, exceeds (ii) the sum of (Y) the total Gross Proceeds in all Offerings plus (Z) the total amount of cash that, if distributed
to those Stockholders who purchased shares of Common Stock in an Offering, would have provided such Stockholders a Priority Return
on the Gross Proceeds raised in all such Offerings. The Listing Note will only be paid to the Special Limited Partner if the Advisory
Agreement has not been terminated by the General Partner or the Advisor prior to the Listing. Notwithstanding anything herein to
the contrary, in accordance with Section 736 of the Code, the Listing Note shall be disregarded for applicable income tax purposes
and the Special Limited Partner shall continue to be treated as a partner of the Partnership in respect of its Special Limited
Partner Interest for such purposes until

 

    	28

    	 

    

the Partnership has satisfied all of its obligations under the
Listing Note. Without limiting the foregoing, the Special Limited Partner shall not be required to accrue interest on the Listing
Note in income and the Partnership shall not deduct such interest for such purposes; provided, that, any cash or property paid
to the Special Limited Partner with respect to such interest shall be reported to the Special Limited Partner on Internal Revenue
Service Schedule K-1 to Form 1065 (or such successor schedule or form).

 

(d)              
Termination Amounts.

 

(i)                
Upon a Termination and subject to Sections 5.1(d)(ii) and (f), the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest in the form of a Note
(the “Termination Note”) equal to 15% of the amount, if any, by which (A) the sum of (1) the fair market value
(determined by appraisal as of the Termination Date) of the Investments on the Termination Date, minus (2) any Loans secured by
such Investments, plus (3) the sum of all Stockholder Distributions paid by the General Partner through the Termination Date on
shares of Common Stock issued in all Offerings through the Termination Date, minus (4) any amounts distributable as of the Termination
Date to the Limited Partners who received Partnership Units in connection with the contribution of any Investments (including cash
used to acquire Investments) to the Partnership, upon the liquidation or sale of such Investments (assuming the liquidation or
sale of such Investments on the Termination Date), exceeds (B) the sum of (1) the Gross Proceeds raised in all Offerings through
the Termination Date (less amounts paid on or prior to the Termination Date to purchase or redeem any shares of Common Stock purchased
in an Offering pursuant to the General Partner’s share repurchase plan) plus (2) the total amount of cash that, if distributed
to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date, would have provided
such Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the
period from inception through the Termination Date. Notwithstanding anything herein to the contrary, in accordance with Section
736 of the Code, the Termination Amount in the Form of a Note shall be disregarded for applicable income tax purposes and the Special
Limited Partner shall continue to be treated as a partner of the Partnership in respect of its Special Limited Partner Interest
for such purposes until the Partnership has satisfied all of its obligations under the Termination Note. Without limiting the foregoing,
the Special Limited Partner shall not be required to accrue interest on the Termination Note in income and the Partnership shall
not deduct such interest for such purposes; provided, that any cash or property paid to the Special Limited Partner with
respect to such interest shall be reported to the Special Limited Partner on Internal Revenue Service Schedule K-1 to Form 1065
(or such successor schedule or form).

 

(ii)              
Upon a Termination and subject to Section 5.1(f), the Special Limited Partner may elect to receive, in lieu
of its right to receive the Termination Note, either:

 

(A)            
If there is a Listing subsequent to the Termination Date, then the General Partner shall cause the Partnership to
distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or more
payments solely out of Net Sales Proceeds (the “Termination Listing

 

    	29

    	 

    

Amount”), equal to 15% of the amount, if any,
by which (1) the sum of (w) the fair market value (determined by appraisal as of the date of Listing) of the Included Assets,
minus (x) any Loans secured by the Included Assets, plus (y) the sum of all Stockholder Distributions paid by the General
Partner through the date of Listing on shares of Common Stock issued in Offerings through the Termination Date, minus (z) any amounts
distributable as of the date of Listing to the Limited Partners who received Partnership Units in connection with the contribution
of any Included Assets (including cash used to acquire Included Assets) to the Partnership, upon the liquidation or sale of such
Included Assets (assuming the liquidation or sale of such Included Assets on the date of Listing), exceeds (2) the sum of (y) the
Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the date of Listing to purchase
or redeem any shares of Common Stock purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s
share repurchase plan), plus (z) the total amount of cash that, if distributed to those Stockholders who purchased shares of Common
Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross
Proceeds raised in all Offerings through the Termination Date, measured for the period from inception of the General Partner through
the date of Listing.

 

(B)             
If there is an Investment Liquidity Event subsequent to the Termination Date, then the General Partner shall cause
the Partnership to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable
in one or more payments solely out of Net Sales Proceeds (the “Termination Liquidity Amount”), equal to 15%
of the amount, if any, by which (1) the sum of (w) the fair market value (determined by appraisal as of the Investment Liquidity
Date) of the Included Assets, minus (x) any Loans secured by the Included Assets, plus (y) the sum of all Stockholder Distributions
paid by the General Partner through the Investment Liquidity Date on shares of Common Stock issued in Offerings through the Termination
Date, minus (z) any amounts distributable as of the Investment Liquidity Date to the Limited Partners who received Partnership
Units in connection with the contribution of any Included Assets (including cash used to acquire Included Assets) to the Partnership,
upon the liquidation or sale of such Included Assets (assuming the liquidation or sale of such Included Assets on the Investment
Liquidity Date), exceeds (2) the sum of (y) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts
paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased in an Offering on
or prior to the Termination Date pursuant to the General Partner’s share repurchase plan), plus (z) the total amount of cash
that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date,
would have provided such Stockholders Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date,
measured for the period from inception of the General Partner through the Investment Liquidity Date.

 

    	30

    	 

    

(e)               
 Investment Liquidity Amounts. Upon an Investment Liquidity Event and subject to Section 5.1(f), the General
Partner shall cause the Partnership to distribute an amount to the Special Limited Partner in redemption of the Special Limited
Partner Interest, payable in one or more payments solely out of Net Sales Proceeds (the “Investment Liquidity Amount”),
equal to 15% of the amount, if any, by which (A) the sum of (1) the fair market value of the Included Assets or all issued and
outstanding shares of Common Stock as determined in good faith by the General Partner as of the Investment Liquidity Date (the
“Investment Liquidity Value”), plus (2) the sum of all Stockholder Distributions paid by the General Partner
through the Investment Liquidity Date, exceeds (B) the sum of (1) the Gross Proceeds raised in all Offerings through the
Investment Liquidity Date (less amounts paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common
Stock purchased in an Offering pursuant to the General Partner’s share repurchase plan) plus (2) the total amount of cash
that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Investment Liquidity
Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Investment
Liquidity Date, measured for the period from inception of the General Partner through the Investment Liquidity Date..

 

(f)               
Coordination.

 

(i)                
Any Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to a Listing
shall reduce dollar for dollar the amount of a Listing Note to be issued and distributed pursuant to Section 5.1(c). If the Special
Limited Partner receives a Listing Note pursuant to Section 5.1(c), (A) the Special Limited Partner would no longer be entitled
to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Termination Amount pursuant to Section 5.1(d)
or the Investment Liquidity Amount pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the Partnership after
the Listing shall be applied first to satisfy the Partnership’s obligation to make distributions pursuant to the Listing
Note.

 

(ii)              
Any Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to the Termination
Date shall reduce dollar for dollar the Termination Amount to be distributed pursuant to Section 5.1(d). If the Special Limited
Partner receives, or is entitled to receive, a Termination Amount pursuant to Section 5.1(d), (A) the Special Limited Partner would
no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Listing Note pursuant
to Section 5.1(c) or the Investment Liquidity Amount pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the
Partnership after the Termination Date, in connection with a Termination Note, the date of the subsequent Listing, in connection
with the Termination Listing Amount, and the Investment Liquidity Date, in connection with the Termination Liquidity Amount, shall
be applied first to satisfy the Partnership’s obligation to make distributions pursuant to Section 5.1(d).

 

(iii)            
Any Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to an Investment
Liquidity Date shall reduce dollar for dollar the Investment Liquidity Amount to be issued and distributed pursuant to Section
5.1(e). If the Special Limited Partner is entitled to receive an Investment Liquidation Amount pursuant to Section 5.1(e), (A)
the Special Limited Partner would no longer be entitled to

 

    	31

    	 

    

receive distributions of Net Sales Proceeds pursuant
to Section 5.1(b)(iii)(A), a Listing Note pursuant to Section 5.1(c) or a Termination Amount pursuant to Section 5.1(d) and (B)
any Net Sales Proceeds received by the Partnership as a result of or after the Investment Liquidity Event shall be applied first
to satisfy the Partnership’s obligation to make distributions pursuant to Section 5.1(e).

 

(iv)            
If the General Partner chooses in its discretion to satisfy all or a portion of the distributions required to be
made to the Special Limited Partner pursuant to a Listing Note or Termination Note with shares of Common Stock, the amount of the
Listing Note or Termination Note due to the Special Limited Partner shall be reduced by (y) the Market Value, with respect to the
Listing Note, and (z) the fair market value, with respect to the Termination Note, of the Common Stock on the date such Common
Stock is issued to the Special Limited Partner.

 

(v)              
If the Special Limited Partner converts all or a portion of its Special Limited Partner Interest into OP Units pursuant
to Section 8.7(a), the amount of the Listing Note or Termination Note due to the Special Limited Partner shall be reduced by an
amount equal to the product of (i) the number of OP Units issued in the conversion multiplied by (ii) the product of (A)
the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange Factor. If the Special Limited
Partner contributes its Special Limited Partner Interest to the Partnership in exchange for OP Units pursuant to Section 8.7(b),
the Special Limited Partner shall no longer be entitled the Termination Listing Amount, the Termination Liquidity Amount or the
Investment Liquidity Amount or distributions of Net Sales Proceeds in respect of such Termination Listing Amount, the Termination
Liquidity Amount or the Investment Liquidity Amount pursuant to Sections 5.1(f)(ii) or (iii), as the case may be.

 

(vi)            
If the priority distribution of Net Sales Proceeds to the Special Limited Partner pursuant to this Section 5.1(f)
prevents the Partnership from being able to distribute sufficient amounts to the General Partner pursuant to Section 5.1(b) to
enable the General Partner to satisfy the REIT Requirement, the General Partner may in its sole discretion cause the Partnership
to distribute some or all of the Net Sales Proceeds subject to a priority distribution pursuant to this Section 5.1(f) to the General
Partner in an amount sufficient to enable the General Partner to pay dividends to the Stockholders in order to satisfy the REIT
Requirements.

 

(g)              
In no event may any Partner receive a distribution pursuant to Sections 5.1(a) or (b) with respect to a Partnership
Unit if such Partner is entitled to receive a distribution with respect to Common Stock for which such a Partnership Unit has been
exchanged.

 

5.2             
Qualification as a REIT

 

The General Partner shall use its best efforts
to cause the Partnership to distribute sufficient amounts under this Article 5 to enable the General Partner to pay dividends to
the Stockholders that will enable the General Partner to

 

    	32

    	 

    

(a)               
 satisfy the requirements for qualification as a REIT under the Code and Regulations (“REIT Requirements”),
and

 

(b)              
avoid any federal income or excise tax liability;

 

provided, however, that the General Partner shall not
be bound to comply with this covenant to the extent such distributions would

 

(i)                
violate applicable Delaware law or

 

(ii)              
contravene the terms of any notes, mortgages or other types of debt obligations to which the Partnership may be subject
in conjunction with borrowed funds.

 

5.3             
Withholding

 

With respect to any withholding tax or other
similar tax liability or obligation to which the Partnership may be subject as a result of any act or status of any Partner or
the Special Limited Partner or to which the Partnership becomes subject with respect to any Partnership Unit or the Special Limited
Partner Interest, the Partnership shall have the right to withhold amounts distributable pursuant to this Article V to such Partner
or the Special Limited Partner or with respect to such Partnership Units or the Special Limited Partner Interest, to the extent
of the amount of such withholding tax or other similar tax liability or obligation pursuant to the provisions contained in Section
10.5, and the amount of any withholding shall reduce the right of such Partner or the Special Limited Partner to future distribution
to the extent provided in Section 10.5.

 

5.4             
Additional Partnership Interests

 

If the Partnership issues Partnership Interests
in accordance with Section 4.2 or 4.3, the distribution priorities set forth in Section 5.1 shall be amended, as necessary, to
reflect the distribution priority of such Partnership Interests and corresponding amendments shall be made to the provisions of
Exhibit B.

 

Article
6.

ALLOCATIONS

 

6.1             
Allocations

 

The Net Income, Net Loss, Net Property Gain,
Net Property Loss and other Partnership items shall be allocated pursuant to the provisions of Exhibit B.

 

6.2             
Revisions to Allocations to Reflect Issuance of Partnership Interests

 

If the Partnership issues Partnership Interests
to the General Partner or any additional Limited Partner pursuant to Article IV, the General Partner shall make such revisions
to this Article 6 and Exhibit B as it deems necessary to reflect the terms of the issuance of such Partnership Interests, including
making preferential allocations to classes of Partnership Interests

 

    	33

    	 

    

that are entitled thereto. Such revisions shall not require
the consent or approval of any other Partner.

 

Article
7.

MANAGEMENT AND OPERATIONS OF BUSINESS

 

7.1             
Management

 

(a)            (i)Except as otherwise expressly provided in this Agreement, full, complete and exclusive discretion to manage
and control the business and affairs of the Partnership are and shall be vested in the General Partner, and no Limited Partner
shall have any right to participate in or exercise control or management power over the business and affairs of the Partnership.

 

(ii)              
The General Partner may not be removed by the Limited Partners with or without cause.

 

(iii)            
In addition to the powers now or hereafter granted a general partner of a limited partnership under applicable law
or which are granted to the General Partner under any other provision of this Agreement, the General Partner, subject to Section
7.11, shall have full power and authority to do all things deemed necessary or desirable by it to conduct the business of the Partnership,
to exercise all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including:

 

(A)          (1)the making of any expenditures, the lending or borrowing of money, including making prepayments on loans
and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as will permit the General
Partner (so long as the General Partner qualifies as a REIT) to avoid the payment of any federal income tax (including, for this
purpose, any excise tax pursuant to Section 4981 of the Code) and to make distributions to its Stockholders in amounts sufficient
to permit the General Partner to maintain REIT status,

 

(2)              
the assumption or guarantee of, or other contracting for, indebtedness and other liabilities,

 

(3)              
the issuance of evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or
other lien or encumbrance on the Partnership’s assets), and

 

(4)              
the incurring of any obligations it deems necessary for the conduct of the activities of the Partnership, including
the payment of all expenses associated with the General Partner;

 

(B)             
the acquisition, purchase, ownership, operating, leasing and disposition of any real property and any other property
or assets, including mortgages and real estate-related notes, whether directly or indirectly;

 

    	34

    	 

    

(C)             
 the making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other
agencies having jurisdiction over the business or assets of the Partnership or the General Partner;

 

(D)            
the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of all or substantially all
of the assets of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or
other right available in connection with any assets at any time held by the Partnership) or the merger, consolidation or other
combination (each a “Business Combination”) of the Partnership with or into another Entity on such terms as
the General Partner deems proper; provided, however, that the General Partner shall be required to send to each Limited
Partner a notice of such proposed Business Combination no less than 15 days prior to the record date for the vote of the General
Partner’s Stockholders on such Business Combination, if any;

 

(E)             
the use of the assets of the Partnership (including cash on hand) for any purpose consistent with the terms of this
Agreement and on any terms it sees fit, including,

 

(1)              
the financing of the conduct of the operations of the General Partner, the Partnership or any of the Partnership’s
Subsidiaries,

 

(2)              
the lending of funds to other Persons (including the Subsidiaries of the Partnership and/or the General Partner)
and the repayment of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment,
and

 

(3)              
the making of capital contributions to its Subsidiaries;

 

(F)              
the expansion, development, redevelopment, construction, leasing, repair, rehabilitation, repositioning, alteration,
demolition or improvement of any property in which the Partnership or any Subsidiary of the Partnership owns an interest;

 

(G)            
the negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner
considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s
powers under this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other
professional advisors and other agents and the payment of their expenses and compensation out of the Partnership’s assets;

 

(H)            
the distribution of Partnership cash or other Partnership assets in accordance with this Agreement;

 

(I)               
holding, managing, investing and reinvesting cash and other assets of the Partnership;

 

    	35

    	 

    

(J)               
 the collection and receipt of revenues and income of the Partnership;

 

(K)            
the establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership
(including employees having titles such as “president”, “vice president”, “secretary” and “treasurer”
of the Partnership), and agents, outside attorneys, accountants, consultants and contractors of the Partnership, and the determination
of their compensation and other terms of employment or engagement;

 

(L)             
the maintenance of such insurance for the benefit of the Partnership and the Partners and directors and officers
thereof as it deems necessary or appropriate;

 

(M)           
the formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates
of the Partnership or third parties) in, and the contribution of property to, any further Entities or other relationships that
it deems desirable, including the acquisition of interests in, and the contributions of funds or property to, or making of loans
to, its Subsidiaries and any other Person from time to time, or the incurrence of indebtedness on behalf of such Persons or the
guarantee of the obligations of such Persons; provided, however, that, as long as the General Partner has determined to
elect to qualify as a REIT or to continue to qualify as a REIT, the Partnership may not engage in any such formation, acquisition
or contribution that would cause the General Partner to fail to qualify as a REIT;

 

(N)            
the control of any matters affecting the rights and obligations of the Partnership, including:

 

(1)              
the settlement, compromise, submission to arbitration or any other form of dispute resolution, or abandonment of,
any claim, cause of action, liability, debt or damages, due or owing to or from the Partnership,

 

(2)              
the commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of
dispute resolution, and

 

(3)              
the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations
or other forms of dispute resolution, the incurring of legal expenses, and the indemnification of any Person against liabilities
and contingencies to the extent permitted by law;

 

(O)            
the undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries
or any other Person (including the contribution or loan of funds by the Partnership to such Persons);

 

    	36

    	 

    

(P)              
 the determination of the fair market value of any Partnership property distributed in kind using such reasonable
method of valuation as the General Partner, in its sole discretion, may adopt;

 

(Q)            
the exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney,
of any right, including the right to vote, appurtenant to any asset or investment held by the Partnership;

 

(R)             
the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection
with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect interest, or jointly
with any such Subsidiary or other Person;

 

(S)              
the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in
which the Partnership does not have an interest pursuant to contractual or other arrangements with such Person;

 

(T)              
the making, execution and delivery of any and all deeds, leases, notes, mortgages, deeds of trust, security agreements,
conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary
or appropriate, in the judgment of the General Partner, for the accomplishment of any of the foregoing;

 

(U)            
the issuance of additional Partnership Units in connection with Capital Contributions by Additional Limited Partners
and additional Capital Contributions by Partners pursuant to Article 4 hereof;

 

(V)            
the authorization, issuance, sale, redemption or purchase of any Partnership Units or any securities of the Partnership;

 

(W)           
the opening of bank accounts on behalf of, and in the name of, the Partnership and its Subsidiaries; and

 

(X)            
the amendment and restatement of Exhibit A to reflect accurately at all times the Capital Contributions and
Percentage Interests of the Partners as the same are adjusted from time to time to the extent necessary to reflect redemptions,
Capital Contributions, the issuance of Partnership Units, the admission of any Additional Limited Partner or any Substituted Limited
Partner or otherwise, which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be
deemed an amendment of this Agreement, as long as the matter or event being reflected in Exhibit A otherwise is authorized by this
Agreement.

 

(b)           (i)              Each of the Limited Partners agree that the General Partner is authorized to execute, deliver and perform
the above-mentioned agreements and transactions on behalf of the Partnership without any further act, approval or vote of the
Partners, notwithstanding any

 

    	37

    	 

    

other provision of this Agreement to the fullest extent permitted
under the Act or other applicable law, rule or regulation.

 

(ii)              
The execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted
under this Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership
or the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity.

 

(c)               
At all times from and after the date hereof, the General Partner at the expense of the Partnership, may or may not,
cause the Partnership to obtain and maintain

 

(i)                
casualty, liability and other insurance on the properties of the Partnership;

 

(ii)              
liability insurance for the Indemnitees hereunder; and

 

(iii)            
such other insurance as the General Partner, in its sole and absolute discretion, determines to be appropriate and
reasonable.

 

(d)              
At all times from and after the date hereof, the General Partner may cause the Partnership to establish and maintain
at any and all times working capital accounts and other cash or similar balances in such amount as the General Partner, in its
sole and absolute discretion, deems appropriate and reasonable from time to time.

 

(e)            (i)In exercising its authority under this Agreement, the General Partner may, but shall be under no obligation
to, take into account the tax consequences to any Partner (including the General Partner) of any action taken (or not taken) by
it. The General Partner and the Partnership shall not have liability to any Limited Partner for monetary damages or otherwise
for losses sustained, liabilities incurred or benefits not derived by such Limited Partner in connection with such decisions,
provided that the General Partner has acted in good faith pursuant to its authority under this Agreement. The Limited Partners
expressly acknowledge that the General Partner is acting on behalf of the Partnership, the General Partner, and the General Partner’s
Stockholders, collectively.

 

(ii)              
The General Partner and the Partnership shall not have liability to the any Limited Partner or the Special Limited
Partner under any circumstances as a result of an income tax liability incurred by such Limited Partner or the Special Limited
Partner as a result of an action (or inaction) by the General Partner taken pursuant to its authority under and in accordance with
this Agreement.

 

7.2             
Certificate of Limited Partnership

 

(a)               
The General Partner has previously filed the Certificate with the Secretary of State of Delaware as required by the
Act.

 

(b)           (i)The General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents
as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership
(or a partnership in

 

    	38

    	 

    

which the limited partners have limited liability) in the State
of Delaware and any other state, or the District of Columbia, in which the Partnership may elect to do business or own property.

 

(ii)              
To the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate,
the General Partner shall file amendments to and restatements of the Certificate and do all of the things to maintain the Partnership
as a limited partnership (or a partnership in which the limited partners have limited liability) under the laws of the State of
Delaware and each other state, or the District of Columbia, in which the Partnership may elect to do business or own property.

 

(iii)            
The General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or
any amendment thereto to any Limited Partner.

 

7.3             
Reimbursement of the General Partner

 

(a)               
Except as provided in this Section 7.3 and elsewhere in this Agreement (including the provisions of Articles 5 and
6 regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated
for its services as general partner of the Partnership.

 

(b)          (i)The
Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s organization, the ownership
of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such other basis as it may determine
in its sole and absolute discretion, for all expenses that it incurs on behalf of the Partnership relating to the ownership and
operation of the Partnership’s assets, or for the benefit of the Partnership, including all expenses associated with compliance
by the General Partner and the Initial Limited Partner with laws, rules and regulations promulgated by any regulatory body, expenses
related to the operations of the General Partner and to the management and administration of any Subsidiaries of the General Partner
or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees and any and all salaries, compensation
and expenses of officers and employees of the General Partner, but excluding any portion of expenses reasonably attributable to
assets not owned by or for the benefit of, or to operations not for the benefit of, the Partnership or Affiliates of the Partnership;
provided, however, that the amount of any such reimbursement shall be reduced by any interest earned by the General Partner
with respect to bank accounts or other instruments or accounts held by it in its name.

 

(ii)              
Such reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to Section
7.6 hereof.

 

(iii)            
The General Partner shall determine in good faith the amount of expenses incurred by it related to the ownership
and operation of, or for the benefit of, the Partnership. If certain expenses are incurred for the benefit of the Partnership and
other entities (including the General Partner), such expenses will be allocated to the Partnership and such other entities in such
a manner as the General Partner in its reasonable discretion deems fair and reasonable. All payments and reimbursements hereunder
shall be characterized for federal income tax purposes as expenses of the Partnership incurred on its behalf, and not as expenses
of the General Partner.

 

    	39

    	 

    

(c)            (i)               Expenses incurred by the General Partner relating to the organization or reorganization of the Partnership
and the General Partner the issuance of Common Stock in connection with an Offering and any issuance of additional Partnership
Interests, Common Stock or rights, options, warrants, or convertible or exchangeable securities pursuant to Section 4.2 hereof
and all costs and expenses associated with the preparation and filing of any periodic reports by the General Partner under federal,
state or local laws or regulations (including all costs, expenses, damages, and other payments resulting from or arising in connection
with litigation related to any of the foregoing) are primarily obligations of the Partnership.

 

(ii)              
To the extent the General Partner pays or incurs such expenses, the General Partner shall be reimbursed for such
expenses.

 

7.4             
Outside Activities of the General Partner

 

(a)               
Without the Consent of the Limited Partners, the General Partner shall not directly or indirectly enter into or conduct
any business other than in connection with the ownership, acquisition, and disposition of Partnership Interests and the management
of its business and the business of the Partnership, and such activities as are incidental thereto.

 

(b)              
The General Partner and any Affiliates of the General Partner may acquire Limited Partner Interests and shall be
entitled to exercise all rights of a Limited Partner relating to such Limited Partner Interests.

 

7.5             
Contracts with Affiliates

 

(a)            (i)               The Partnership may lend or contribute funds or other assets to its Subsidiaries or other Persons in which it has an
equity investment and such Subsidiaries and Persons may borrow funds from the Partnership, on terms and conditions established
in the sole and absolute discretion of the General Partner.

 

(ii)              
The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

 

(b)              
Except as provided in Section 7.4, the Partnership may Transfer assets to Entities in which it is or thereby becomes
a participant upon such terms and subject to such conditions consistent with this Agreement and applicable law as the General Partner,
in its sole and absolute discretion, may determine.

 

(c)               
Except as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell,
Transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to
transactions that are determined by the General Partner in good faith to be fair and reasonable.

 

(d)              
The General Partner, in its sole and absolute discretion and without the approval the Limited Partners, may propose
and adopt, on behalf of the Partnership, employee benefit plans, stock option plans, and similar plans funded by the Partnership
for the benefit of employees of the Partnership, the General Partner, any Subsidiaries of the Partnership or any Affiliate of any
of them in respect of services performed, directly or indirectly, for the benefit of

 

    	40

    	 

    

the Partnership, the General Partner, any Subsidiaries of the
Partnership or any Affiliate of any of them.

 

(e)               
The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, a “right
of first opportunity” or “right of first offer” arrangement, non-competition agreements and other conflict
avoidance agreements with various Affiliates of the Partnership and the General Partner, on such terms as the General Partner,
in its sole and absolute discretion, believes are advisable.

 

7.6             
Indemnification

 

(a)             (i)             To the fullest extent permitted by Delaware law or as provided herein, the Partnership shall indemnify
each Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including reasonable
attorneys’ fees and other legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and
all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”),
that relate to the operations of the Partnership or the General Partner as set forth in this Agreement, in which such Indemnitee
may be involved, or is threatened to be involved, as a party or otherwise, so long as (A) the course of conduct which gave rise
to the Claim was taken, in the reasonable determination of the Indemnitee made in good faith, in the best interests of the Partnership
or the General Partner, (B) such Claim was not the result of negligence or misconduct by the Indemnitee, (C) the Indemnitee
(if other than the General Partner) was acting on behalf of or performing services for the Partnership and (D) such indemnification
is not satisfied or recoverable from the assets of the Stockholders of the General Partner. Notwithstanding the foregoing, no Indemnitee
(other than the General Partner) shall be indemnified for any Claim arising from or out of an alleged violation of federal or state
securities laws unless (1) there has been a successful adjudication on the merits of each count involving alleged securities law
violations as to such Indemnitee, (2) such allegations have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to such Indemnitee, or (3) a court of competent jurisdiction approves a settlement of such allegations against
such Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering
the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published
position of any state securities regulatory authority in which the Common Stock was offered or sold as to indemnification for violations
of securities law.

 

(ii)              
Without limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty
(except a guaranty by a limited partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan
guaranty), contractual obligation for any indebtedness or other obligation or otherwise for any indebtedness of the Partnership
or any Subsidiary of the Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has
assumed or taken subject to), and the General Partner is hereby authorized and empowered, on behalf of the Partnership, to enter
into one or more indemnity agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially
having liability for any such indebtedness.

 

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(iii)            
 Any indemnification pursuant to this Section 7.6 shall be made only out of the assets of the Partnership, and neither
the General Partner nor any Limited Partner shall have any obligation to contribute to the capital of the Partnership, or otherwise
provide funds, to enable the Partnership to fund its obligations under this Section 7.6.

 

(b)              
Reasonable expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership
in advance of the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative
or investigative made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee
of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.6 has been met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met.

 

(c)               
The indemnification provided by this Section 7.6 shall be in addition to any other rights to which an Indemnitee
or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise,
and shall continue as to an Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written agreement
pursuant to which such Indemnities are indemnified.

 

(d)              
The Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnities
and such other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that
may be incurred by such Person in connection with the Partnership’s activities, regardless of whether the Partnership would
have the power to indemnify such Person against such liability under the provisions of this Agreement.

 

(e)               
For purposes of this Section 7.6, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary
of an employee benefit plan whenever the performance by such Indemnitee of its duties to the Partnership also imposes duties on,
or otherwise involves services by, such Indemnitee to the plan or participants or beneficiaries of the plan; excise taxes assessed
on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning
of this Section 7.6. Actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of
its duties for a purpose reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall
be deemed to be for a purpose which is not opposed to the best interests of the Partnership.

 

(f)               
In no event may an Indemnitee subject any of the Partners (other than the General Partner) to personal liability
by reason of the indemnification provisions set forth in this Agreement.

 

(g)              
An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.6 because the Indemnitee
had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted
by the terms of this Agreement.

 

    	42

    	 

    

(h)           (i)                 The
provisions of this Section 7.6 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons.

 

(ii)              
Any amendment, modification or repeal of this Section 7.6 or any provision hereof shall be prospective only and shall
not in any way affect the Partnership’s liability to any Indemnitee under this Section 7.6, as in effect immediately prior
to such amendment, modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

 

(i)                
If and to the extent any payments to the General Partner pursuant to this Section 7.6 constitute gross income
to the General Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall constitute
guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership
and all Partners, and shall not be treated as distributions for purposes of computing the Partners’ Capital Accounts.

 

(j)                
Notwithstanding anything to the contrary in this Agreement, the General Partner shall not be entitled to indemnification
hereunder for any loss, claim, damage, liability or expense for which the General Partner is obligated to indemnify the Partnership
under any other agreement between the General Partner and the Partnership.

 

7.7             
Liability of the General Partner

 

(a)               
Notwithstanding anything to the contrary set forth in this Agreement, neither the General Partner nor the investment
advisor of the General Partner, nor any of their respective officers and directors, shall be liable for monetary damages to the
Partnership, any Partners or any Assignees for losses sustained or liabilities incurred as a result of errors in judgment or mistakes
of fact or law or of any act or omission unless the General Partner or its investment advisor, as the case may be, acted in bad
faith and the act or omission was material to the matter giving rise to the loss, liability or benefit not derived.

 

(b)         (i)         The Limited Partners and the Special Limited Partner expressly acknowledge that the General Partner (and
its investment advisor) is acting on behalf of the Partnership and the Stockholders of the General Partner collectively, that
the General Partner (and its investment advisor), subject to the provisions of Section 7.1(e) hereof, is under no obligation to
consider the separate interest of the Limited Partners or the Special Limited Partner (including the tax consequences to any Limited
Partners, the Special Limited Partner or any Assignees) in deciding whether to cause the Partnership to take (or decline to take)
any actions, and that the General Partner (and its investment advisor) shall not be liable for monetary damages for losses sustained,
liabilities incurred, or benefits not derived by Limited Partners or the Special Limited Partner in connection with such decisions;
provided, that the General Partner (and its investment advisor) has acted in good faith.

 

    	43

    	 

    

(ii)              
 With respect to any indebtedness of the Partnership which any Limited Partner or the Special Limited Partner may
have guaranteed, the General Partner (and its investment advisor) shall have no duty to keep such indebtedness outstanding.

 

(c)           (i)                Subject
to its obligations and duties as General Partner set forth in Section 7.1(a) hereof, the General Partner may exercise any
of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or
through its agent, including its investment advisor.

 

(ii)              
The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed
by the General Partner in good faith.

 

(d)              
The Limited Partners expressly acknowledge that if any conflict in the fiduciary duties owed by the General Partner
to its Stockholders and by the General Partner, in its capacity as a general partner of the Partnership, to the Limited Partners
or the Special Limited Partner, the General Partner may act in the best interests of the General Partner’s Stockholders without
violating its fiduciary duties to the Limited Partners or the Special Limited Partner, and that the General Partner shall not be
liable for monetary damages for losses sustained, liabilities incurred, or benefits not derived by the Limited Partners or the
Special Limited Partner in connection with any such violation.

 

(e)               
Any amendment, modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall
not in any way affect the limitations on the General Partner’s and its officers’ and directors’ liability to
the Partnership, the Special Limited Partner and the Limited Partners under this Section 7.7 as in effect immediately prior to
such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part,
prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

 

7.8             
Other Matters Concerning the General Partner

 

(a)               
The General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by
it in good faith to be genuine and to have been signed or presented by the proper party or parties.

 

(b)              
The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers,
architects, engineers, environmental consultants and other consultants and advisers selected by it, and any act taken or omitted
to be taken in reliance upon the opinion of such Persons as to matters which such General Partner reasonably believes to be within
such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith
and in accordance with such opinion.

 

(c)           (i)       The
General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and duly appointed attorneys-in-fact.

 

    	44

    	 

    

(ii)              
 Each such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power
and authority to do and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder.

 

(d)              
Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of
the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good
faith belief that such action or omission is necessary or advisable in order

 

(i)                
to protect the ability of the General Partner to continue to qualify as a REIT; or

 

(ii)              
to avoid the General Partner incurring any taxes under Section 857 or Section 4981 of the Code,

 

is expressly authorized under this Agreement and is deemed approved
by all of the Limited Partners and the Special Limited Partner.

 

7.9             
Title to Partnership Assets

 

(a)               
Title to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed
to be owned by the Partnership as an entity, and no Partner, individually or collectively, shall have any ownership interest in
such Partnership assets or any portion thereof.

 

(b)           (i)                Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner
or one or more nominees, as the General Partner may determine, including Affiliates of the General Partner.

 

(ii)              
The General Partner hereby declares and warrants that any Partnership asset for which legal title is held in the
name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use
and benefit of the Partnership in accordance with the provisions of this Agreement; provided, however, that the General
Partner shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon
as reasonably practicable.

 

(iii)            
All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective
of the name in which legal title to such Partnership assets is held.

 

7.10         
Reliance by Third Parties

 

(a)               
Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled
to assume that the General Partner has full power and authority, without consent or approval of any other Partner or Person, to
encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter into any contracts on behalf of
the Partnership, and take any and all actions on behalf of the Partnership, and such

 

    	45

    	 

    

Person shall be entitled to deal with the General Partner as
if the General Partner were the Partnership’s sole party in interest, both legally and beneficially.

 

(b)              
Each Limited Partner and the Special Limited Partner hereby waive any and all defenses or other remedies which may
be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such
dealing.

 

(c)               
In no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that
the terms of this Agreement have been complied with or to inquire into the necessity or expediency of any act or action of the
General Partner or its representatives.

 

(d)              
Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner
or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that

 

(i)                
at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full
force and effect;

 

(ii)              
the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to
do so for and on behalf of the Partnership; and

 

(iii)            
such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions
of this Agreement and is binding upon the Partnership.

 

7.11         
Loans By Third Parties

 

The Partnership may incur Debt, or enter
into similar credit, guarantee, financing or refinancing arrangements for any purpose (including in connection with any acquisition
of property) with any Person upon such terms as the General Partner determines appropriate.

 

Article
8.

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

 

8.1             
Limitation of Liability

 

No Limited Partner shall have any liability
under this Agreement except as expressly provided in this Agreement, including Section 10.5 hereof, or under the Act.

 

8.2             
Management of Business

 

(a)               
No Limited Partner or Assignee (other than the General Partner, any of its Affiliates or any officer, director, employee,
agent or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part
in the operation, management or control (within the meaning of the Act) of the Partnership’s business, transact

 

    	46

    	 

    

any business in the Partnership’s name or have the power
to sign documents for or otherwise bind the Partnership.

 

(b)              
The transaction of any such business by the General Partner, any of its Affiliates or any officer, director, employee,
partner, agent or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall
not affect, impair or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement.

 

8.3             
Outside Activities of Limited Partners

 

(a)               
Subject to any agreements entered into pursuant to Section 7.5 hereof and any other agreements entered into by a
Limited Partner, the Special Limited Partner, or any of their Affiliates with the Partnership or any of its Subsidiaries, any Limited
Partner, the Special Limited Partner and any officer, director, employee, agent, trustee, Affiliate or shareholder of any Limited
Partner or the Special Limited Partner shall be entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and activities that are in direct competition with
the Partnership or that are enhanced by the activities of the Partnership.

 

(b)              
Neither the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures
of any Limited Partner, the Special Limited Partner, any Assignee or any of their Affiliates.

 

(c)               
No Limited Partner nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship
established hereby in any business ventures of any other Person and such Person shall have no obligation pursuant to this Agreement
to offer any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such
opportunity is of a character which, if presented to the Partnership, any Limited Partner or such other Person, could be taken
by such Person.

 

8.4             
Return of Capital

 

(a)               
Except pursuant to the Exchange Rights Agreements, no Limited Partner shall be entitled to the withdrawal or return
of its Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership
as provided herein.

 

(b)              
Except as provided in Articles 5, 6 and 13 hereof, no Limited Partner or Assignee shall have priority over any other
Limited Partner or Assignee, either as to the return of Capital Contributions or as to profits, losses or distributions.

 

8.5             
Rights of Limited Partners Relating to the Partnership

 

(a)               
In addition to the other rights provided by this Agreement or by the Act, and except as limited by Section 8.5(b)
hereof, each Limited Partner and the Special Limited Partner shall have the right, for a purpose reasonably related to such Person’s
interest as a limited partner in the Partnership, upon written demand with a statement of the purpose of such demand and at

 

    	47

    	 

    

such Person’s own expense (including such reasonable copying
and administrative charges as the General Partner may establish from time to time):

 

(i)                
to obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission
by the General Partner pursuant to the Securities Exchange Act of 1934; and

 

(ii)              
to obtain a copy of the Partnership’s federal, state and local income tax returns for each Partnership Year.

 

(b)              
Notwithstanding any other provision of this Section 8.5, the General Partner may keep confidential from the Limited
Partners and the Special Limited Partner, for such period of time as the General Partner determines in its sole and absolute discretion
to be reasonable, any information that

 

(i)                
the General Partner reasonably believes to be in the nature of trade secrets or other information, the disclosure
of which the General Partner in good faith believes is not in the best interests of the Partnership or could damage the Partnership
or its business; or

 

(ii)              
the Partnership is required by law or by agreements with an unaffiliated third party to keep confidential.

 

8.6             
Exchange Rights Agreements

 

(a)               
The Limited Partners (other than the General Partner in its capacity as a Limited Partner) will be granted the right,
but not the obligation, to exchange all or a portion of their Partnership Units for cash or, at the option of the Partnership,
for shares of Common Stock on such terms and subject to such conditions and restrictions as will be contained in one or more exchange
rights agreements among the General Partner, the Partnership and one or more Limited Partners (as amended from time to time, the
“Exchange Rights Agreements”); provided, however, that such Partnership Units shall have been outstanding for
at least one year. The form of each Exchange Rights Agreement governing the exchange of Partnership Units hereafter shall be determined
by the General Partner.

 

(b)              
The Limited Partners and all successors, assignees and transferees (whether by operation of law, including by merger
or consolidation, dissolution or liquidation of an entity that is a Limited Partner, or otherwise) shall be bound by the provisions
of the Exchange Rights Agreement to which they are parties.

 

8.7             
Conversion and Exchange of Special Limited Partner Interests.

 

(a)               
Conversion of Listing Note or Termination Note.

 

(i)                
If the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant to the Partnership’s
obligation under a Listing Note or a Termination Note, at such time as the Capital Account balance of the Special Limited Partner
attributable to the Special Limited Partner Interest is equal to the remaining

 

    	48

    	 

    

amount of Net Sales Proceeds distributable to the
Special Limited Partner pursuant to the Listing Note or Termination Note, respectively, the Special Limited Partner shall have
the right, but not the obligation, to convert all or a portion of the Special Limited Partner Interest into OP Units. The Special
Limited Partner shall provide written notice to the General Partner of its intention to convert all or a portion of its Special
Limited Partner Interest at least ten (10) days prior to the date on which the conversion is to occur, and such notice shall indicate
the amount of the Special Limited Partner Interest that the Special Limited Partner intends to convert. The maximum number of OP
Units issuable upon a conversion of the Special Limited Partner Interest shall be equal to the quotient of (i) the net amount of
the Partnership’s remaining obligation pursuant to the Listing Note or Termination Note on the date of conversion divided
by (ii) the product of (A) the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange
Factor. Only a whole number of OP Units may be issuable upon a conversion of the Special Limited Partner Interest. The Special
Limited Partner covenants and agrees with the Partnership that the Special Limited Partner Interest shall be free and clear of
all liens. The conversion of all or a portion of the Special Limited Partner Interest shall occur automatically after the close
of business on the applicable date of conversion, as of which time the Special Limited Partner shall be credited on the books and
records of the Partnership with the issuance as of the opening of business on the next day of the number of OP Units issuable upon
such conversion.

 

(ii)              
Exchange. OP Units issuable upon a conversion of the Special Limited Partner Interest as set forth in this
Section 8.7(a) shall be exchangeable for cash or, at the option of the Partnership, for shares of Common Stock pursuant to Section
8.6.

 

(iii)            
Impact of Conversion for Purposes of Subparagraph 1(c)(iii) of Exhibit B. For purposes of making future allocations
under subparagraph 1(c)(iii) of Exhibit B, the Special Limited Partner’s Capital Account balance shall be reduced,
as of the date of conversion, by an amount equal to the product of (i) the number of OP Units issued in the conversion multiplied
by (ii) the product of (A) the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange
Factor.

 

(b)              
Conversion of Termination Listing Amount, Termination Liquidity Amount or Investment Liquidity Amount. At
such time as the Special Limited Partner is entitled to the Termination Listing Amount, Termination Liquidity Amount or Investment
Liquidity Amount, the Special Limited Partner shall have the right, but not the obligation, to contribute the entire Special Limited
Partner Interest to the Partnership in exchange for OP Units in a transaction intended to qualify as a contribution of property
pursuant to Section 721 of the Code. The Special Limited Partner shall notify the General Partner of its intention to exchange
its Special Limited Partner Interest as soon as reasonably practicable after learning of the event that will give rise to its right
to receive the Termination Listing Amount, Termination Liquidity Amount or Investment Liquidity Amount. The number of OP Units
issuable upon a conversion of the Special Limited Partner Interest shall be equal to the quotient of (i) the Termination Listing
Amount, Termination Liquidity Amount or Investment Liquidity Amount, as the case may be, divided by (ii) the product of
(A) in the case of the Termination Listing Amount or the Termination Liquidity Amount, the Value of one share of Common Stock,
and in the case of the Investment Liquidity Amount, the Investment Liquidity Value per one share of Common Stock

 

    	49

    	 

    

multiplied by (B) the Exchange Factor. The Special Limited
Partner covenants and agrees with the Partnership that the Special Limited Partner Interest shall be free and clear of all liens.
The conversion of all or a portion of the Special Limited Partner Interest shall occur automatically after the close of business
on the applicable date of conversion, as of which time the Special Limited Partner shall be credited on the books and records of
the Partnership with the issuance as of the opening of business on the next day of the number of OP Units issuable upon such conversion.

 

Article
9.

BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

9.1             
Records and Accounting

 

(a)               
The General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents
required to be maintained by the Act and other books and records deemed by the General Partner to be appropriate with respect to
the Partnership’s business, including all books and records necessary for the General Partner to comply with applicable REIT
Requirements and to provide to the Limited Partners and the Special Limited Partner any information, lists and copies of documents
required to be provided pursuant to Sections 8.5(a) and 9.3 hereof.

 

(b)              
Any records maintained by or on behalf of the Partnership in the regular course of its business may be kept on, or
be in the form of, punch cards, magnetic tape, photographs, micrographics or any other information storage device, provided that
the records so maintained are convertible into clearly legible written form within a reasonable period of time.

 

(c)               
The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in
accordance with generally accepted accounting principles, or such other basis as the General Partner determines to be necessary
or appropriate.

 

9.2             
Fiscal Year

 

The fiscal year of the Partnership shall
be the calendar year.

 

9.3             
Reports

 

(a)               
As soon as practicable, but in no event later than the date on which the General Partner mails its annual report
to its Stockholders, the General Partner shall cause to be mailed to each Limited Partner and the Special Limited Partner as of
the close of the Partnership Year, an annual report containing financial statements of the Partnership, or of the General Partner,
if such statements are prepared on a consolidated basis with the Partnership, for such Partnership Year, presented in accordance
with the standards of the Public Accounting Oversight Board (United States), such statements to be audited by a nationally recognized
firm of independent public accountants selected by the General Partner in its sole discretion.

 

(b)              
If and to the extent that the General Partner mails quarterly reports to its Stockholders, then as soon as practicable,
but in no event later than the date such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner
and the Special

 

    	50

    	 

    

Limited Partner a report containing unaudited financial statements
as of the last day of the calendar quarter of the Partnership, or of the General Partner, if such statements are prepared on a
consolidated basis with the Partnership, and such other information as may be required by applicable law or regulation, or as the
General Partner determines to be appropriate.

 

(c)               
Notwithstanding the foregoing, the General Partner may deliver to the Limited Partners and the Special Limited Partner
each of the reports described above, as well as any other communications that it may provide hereunder, by e-mail or by any other
electronic means.

 

Article
10.

TAX MATTERS

 

10.1         
Preparation of Tax Returns

 

(a)               
The General Partner shall arrange for the preparation and timely filing of all returns of Partnership income, gains,
deductions, losses and other items required of the Partnership for federal and state income tax purposes and shall use all reasonable
efforts to furnish, within ninety (90) days of the close of each taxable year, the tax information reasonably required by the Limited
Partners and the Special Limited Partner for federal and state income tax reporting purposes. The federal income tax return of
the Partnership shall be filed annually on IRS Form 1065 (or such other successor form) or on any other IRS form as may be required.

 

(b)              
If required under the Code or applicable state or local income tax law, the General Partner shall also arrange for
the preparation and timely filing of all returns of income, gains, deductions, losses and other items required of the Subsidiaries
of the Partnership for federal and state income tax purposes and shall use all reasonable efforts to furnish, within ninety (90)
days of the close of each taxable year, the tax information reasonably required by the Limited Partners and the Special Limited
Partner for federal and state income tax reporting purposes.

 

10.2         
Tax Elections

 

(a)               
Except as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether
to make any available election pursuant to the Code.

 

(b)              
The General Partner shall elect a permissible method (which need not be the same method for each item or property)
of eliminating the disparity between the Gross Asset Value and the tax basis for each item of property contributed to the Partnership
or to a Subsidiary of the Partnership pursuant to the Regulations promulgated under the provisions of Section 704(c) of the Code.

 

(c)               
The General Partner shall have the right to seek to revoke any tax election it makes, including, without limitation,
the election under Section 754 of the Code, upon the General Partner’s determination, in its sole and absolute discretion,
that such revocation is in the best interests of the Partners.

 

(d)              
The Partners, intending to be legally bound, hereby authorize the Partnership to make an election (the “Safe
Harbor Election”) to have the “liquidation value” safe harbor provided in Proposed Treasury Regulation Section
1.83-3(1) and the Proposed Revenue

 

    	51

    	 

    

Procedure set forth in Internal Revenue Service Notice 2005-43,
as such safe harbor may be modified when such proposed guidance is issued in final form or as amended by subsequently issued guidance
(the “Safe Harbor”), apply to any interest in the Partnership transferred to a service provider while the Safe
Harbor Election remains effective, to the extent such interest meets the Safe Harbor requirements (collectively, such interests
are referred to as “Safe Harbor Interests”). The tax matters partner is authorized and directed to execute and
file the Safe Harbor Election on behalf of the Partnership and the Partners if and when the Safe Harbor Election becomes available.
The Partnership and the Partners (including any person to whom an interest in the Partnership is transferred in connection with
the performance of services) hereby agree to comply with all requirements of the Safe Harbor (including forfeiture allocations)
with respect to all Safe Harbor Interests and to prepare and file all U.S. federal income tax returns reporting the tax consequences
of the issuance and vesting of Safe Harbor Interests consistent with such final Safe Harbor guidance. The General Partner is authorized
to take such actions as are necessary to achieve, under the Safe Harbor, the effect that the election and compliance with all requirements
of the Safe Harbor referred to above would be intended to achieve under Proposed Treasury Regulation Section 1.83-3, including
amending this Agreement.

 

10.3         
Tax Matters Partner

 

(a)           (i)               The
General Partner shall be the “tax matters partner” of the Partnership for federal income tax purposes.

 

(ii)              
Pursuant to Section 6230(e) of the Code, upon receipt of notice from the Internal Revenue Service of the beginning
of an administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the Internal Revenue Service
with the name, address, taxpayer identification number, and profit interest of each of the Limited Partners, the Special Limited
Partner and the Assignees; provided, however, that such information is provided to the Partnership by the Limited Partners,
the Special Limited Partner and the Assignees.

 

(iii)            
The tax matters partner is authorized, but not required:

 

(A)            
to enter into any settlement with the Internal Revenue Service with respect to any administrative or judicial proceedings
for the adjustment of Partnership items required to be taken into account by a Partner (including the Special Limited Partner)
for income tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings
being referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state
that such agreement shall bind all Partners (including the Special Limited Partner), except that such settlement agreement shall
not bind any Partner or the Special Limited Partner

 

(1)              
who (within the time prescribed pursuant to the Code and Regulations) files a statement with the Internal Revenue
Service providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such
Partner or the Special Limited Partner; or

 

    	52

    	 

    

(2)              
 who is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice
group” (as defined in Section 6223(b)(2) of the Code);

 

(B)             
if a notice of a final administrative adjustment at the Partnership level of any item required to be taken into account
by a Partner or the Special Limited Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner,
to seek judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court or the
filing of a complaint for refund with the United States Claims Court or the District Court of the United States for the district
in which the Partnership’s principal place of business is located;

 

(C)             
to intervene in any action brought by any other Partner or the Special Limited Partner for judicial review of a final
adjustment;

 

(D)            
to file a request for an administrative adjustment with the Internal Revenue Service and, if any part of such request
is not allowed by the Internal Revenue Service, to file an appropriate pleading (petition or complaint) for judicial review with
respect to such request;

 

(E)             
to enter into an agreement with the Internal Revenue Service to extend the period for assessing any tax which is
attributable to any item required to be taken account of by a Partner or the Special Limited Partner for tax purposes, or an item
affected by such item; and

 

(F)              
to take any other action on behalf of the Partners, the Special Limited Partner or the Partnership in connection
with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations.

 

The taking of any action and the incurring of any
expense by the tax matters partner in connection with any such proceeding, except to the extent required by law, is a matter in
the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner
set forth in Section 7.6 of this Agreement shall be fully applicable to the tax matters partner in its capacity as such.

 

(b)           (i)               The
tax matters partner shall receive no compensation for its services.

 

(ii)              
All third party costs and expenses incurred by the tax matters partner in performing its duties as such (including
legal and accounting fees and expenses) shall be borne by the Partnership.

 

(iii)            
Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm to assist the tax
matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable.

 

10.4         
Organizational Expenses

 

    	53

    	 

    

The Partnership shall elect to deduct expenses,
if any, incurred by it in organizing the Partnership ratably over a one hundred eighty (180) month period as provided in Section
709 of the Code.

 

10.5         
Withholding

 

(a)               
Each Limited Partner and the Special Limited Partner hereby authorizes the Partnership to withhold from, or pay on
behalf of or with respect to, such Limited Partner or the Special Limited Partner any amount of federal, state, local, or foreign
taxes that the General Partner determines that the Partnership is required to withhold or pay with respect to any amount distributable
or allocable to such Limited Partner or the Special Limited Partner pursuant to this Agreement, including any taxes required to
be withheld or paid by the Partnership pursuant to Sections 1441, 1442, 1445, or 1446 of the Code.

 

(b)           (i)                 Any
amount paid on behalf of or with respect to a Limited Partner or the Special Limited Partner shall constitute a loan by the Partnership
to such Limited Partner or the Special Limited Partner, which loan shall be repaid by such Limited Partner or the Special Limited
Partner as the case may be within fifteen (15) days after notice from the General Partner that such payment must be made unless

 

(A)            
the Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner or
the Special Limited Partner; or

 

(B)             
the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the
available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner or the Special Limited
Partner.

 

(ii)              
Any amounts withheld pursuant to the foregoing clauses (i)(A) or (B) shall be treated as having been distributed
to the Limited Partner or the Special Limited Partner.

 

(c)           (i)               Each
Limited Partner and the Special Limited Partner hereby unconditionally and irrevocably grant to the Partnership a security interest
in such Limited Partner’s Partnership Interest and such Special Limited Partner’s Special Limited Partner Interest,
as the case may be, to secure such Limited Partner’s or Special Limited Partner’s obligation to pay to the Partnership
any amounts required to be paid pursuant to this Section 10.5.

 

(ii)          (A)              If
a Limited Partner or the Special Limited Partner fails to pay when due any amounts owed to the Partnership pursuant to this Section
10.5, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf of
such defaulting Limited Partner or Special Limited Partner, and in such event shall be deemed to have loaned such amount to such
defaulting Limited Partner or Special Limited Partner and shall succeed to all rights and remedies of the Partnership as against
such defaulting Limited Partner or Special Limited Partner.

 

    	54

    	 

    

(B)             
 Without limitation, in such event, the General Partner shall have the right to receive distributions that would
otherwise be distributable to such defaulting Limited Partner or Special Limited Partner until such time as such loan, together
with all interest thereon, has been paid in full, and any such distributions so received by the General Partner shall be treated
as having been distributed to the defaulting Limited Partner or Special Limited Partner and immediately paid by the defaulting
Limited Partner or Special Limited Partner to the General Partner in repayment of such loan.

 

(iii)            
Any amount payable by a Limited Partner or the Special Limited Partner hereunder shall bear interest at the highest
base or prime rate of interest published from time to time by The Wall Street Journal, plus four (4) percentage points, but in
no event higher than the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount
is due (i.e., fifteen (15) days after demand) until such amount is paid in full.

 

(iv)            
Each Limited Partner or the Special Limited Partner shall take such actions as the Partnership or the General Partner
shall request in order to perfect or enforce the security interest created hereunder.

 

Article
11.

TRANSFERS AND WITHDRAWALS

 

11.1         
Transfer

 

(a)          
 (i)               The term “Transfer,” when used in this Article 11 with respect to a Partnership Interest or a
Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of
its General Partner Interest to another Person, or a Limited Partner purports to assign all or any part of its Limited Partner
Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any
other disposition by law or otherwise.

 

(ii)              
The term “Transfer” when used in this Article 11 does not include any exchange of Partnership Units for
cash or Common Stock pursuant to the Exchange Rights Agreement.

 

(b)           (i)                No
Partnership Interest shall be Transferred, in whole or in part, except in accordance with the terms and conditions set forth in
this Article 11.

 

(ii)              
Any Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article 11 shall be
null and void.

 

11.2         
Transfer of the General Partner’s General Partner Interest

 

(a)               
The General Partner may not Transfer any of its General Partner Interest or withdraw as General Partner, or Transfer
any of its Limited Partner Interest, except

 

    	55

    	 

    

(i)                
 if holders of at least two-thirds of the Limited Partner Interests consent to such Transfer or withdrawal;

 

(ii)              
if such Transfer is to an entity which is wholly owned by the General Partner and is a Qualified REIT Subsidiary
as defined in Section 856(i) of the Code; or

 

(iii)            
in connection with a transaction described in Section 11.2(c) or 11.2(d) (as applicable)

 

(b)              
If the General Partner withdraws as general partner of the Partnership in accordance with Section 11.2(a), the General
Partner’s General Partner Interest shall immediately be converted into a Limited Partner Interest.

 

(c)               
Except as otherwise provided in Section 11.2(d), the General Partner shall not engage in any merger, consolidation
or other combination of the General Partner with or into another Person (other than a merger in which the General Partner is the
surviving entity) or sale of all or substantially all of its assets, or any reclassification, or any recapitalization of outstanding
Common Stock (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination
of Common Stock) (a “Transaction”), unless

 

(i)                
in connection with the Transaction all Limited Partners will either receive, or will have the right to elect to receive,
for each Partnership Unit an amount of cash, securities, or other property equal to the product of the Exchange Factor and the
amount of cash, securities or other property or value paid in the Transaction to or received by a holder of one share of Common
Stock corresponding to such Partnership Unit in consideration of one share of Common Stock at any time during the period from and
after the date on which the Transaction is consummated; provided, however, that if, in connection with the Transaction,
a purchase, tender or exchange offer (“Offer”) shall have been made to and accepted by the holders of more than
50% of the outstanding Common Stock, each holder of Partnership Units shall be given the option to exchange its Partnership Units
for the amount of cash, securities, or other property which a Limited Partner would have received had it

 

(A)            
exercised its Exchange Right and

 

(B)             
sold, tendered or exchanged pursuant to the Offer the Common Stock received upon exercise of the Exchange Right immediately
prior to the expiration of the Offer.

 

The foregoing is not intended
to, and does not, affect the ability of (i) a Stockholder of the General Partner to sell its stock in the General Partner or (ii)
the General Partner to perform its obligations (under agreement or otherwise) to such Stockholders (including the fulfillment of
any obligations with respect to registering the sale of stock under applicable securities laws).

 

(d)             (i)                Notwithstanding
Section 11.2(c), the General Partner may merge into or consolidate with another entity if immediately after such merger or consolidation

 

    	56

    	 

    

(A)            
 substantially all of the assets of the successor or surviving entity (the “Surviving General Partner”),
other than Partnership Units held by the General Partner, are contributed to the Partnership as a Capital Contribution in exchange
for Partnership Units with a fair market value equal to the value of the assets so contributed as determined by the Surviving General
Partner in good faith and

 

(B)             
the Surviving General Partner expressly agrees to assume all obligations of the General Partner hereunder.

 

(ii)           (A)             Upon
such contribution and assumption, the Surviving General Partner shall have the right and duty to amend this Agreement and the
Exchange Rights Agreement as set forth in this Section 11.2(d).

 

(B)           (1)              The
Surviving General Partner shall in good faith arrive at a new method for the calculation of the Exchange Factor for a Partnership
Unit after any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably
possible.

 

(2)              
Such calculation shall take into account, among other things, the kind and amount of securities, cash and other property
that was receivable upon such merger or consolidation by a holder of Common Stock or options, warrants or other rights relating
thereto, and which a holder of Partnership Units could have acquired had such Partnership Units been redeemed for Common Stock
immediately prior to such merger or consolidation.

 

(C)             
Such amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly
equivalent as may be practicable to the adjustments provided for with respect to the Exchange Factor.

 

(iii)            
The above provisions of this Section 11.2(d) shall similarly apply to successive mergers or consolidations permitted
hereunder.

 

11.3         
Limited Partners’ Rights to Transfer

 

(a)               
Subject to the provisions of Sections 11.3(c), 11.3(d), 11.3(e), 11.4 and 11.6, a Limited Partner may, without the
consent of the General Partner, Transfer all or any portion of its Limited Partner Interest, or any of such Limited Partner’s
economic right as a Limited Partner. In order to effect such transfer, the Limited Partner must deliver to the General Partner
a duly executed copy of the instrument making such transfer and such instrument must evidence the written acceptance by the assignee
of all of the terms and conditions of this Agreement and represent that such assignment was made in accordance with all applicable
laws and regulations.

 

(b)           (i)                If
a Limited Partner is Incapacitated, the executor, administrator, trustee, committee, guardian, conservator or receiver of such
Limited Partner’s estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other
Limited Partners, for

 

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the purpose of settling or managing the estate and such power
as the Incapacitated Limited Partner possessed to Transfer all or any part of his or its interest in the Partnership.

 

(ii)              
The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership.

 

(c)               
The General Partner may prohibit any Transfer by a Limited Partner of its Partnership Units if it reasonably believes
(based on the advice of counsel) such Transfer would require filing of a registration statement under the Securities Act of 1933,
as amended, or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the
Partnership Units.

 

(d)              
No Transfer by a Limited Partner of its Partnership Units may be made to any Person if

 

(i)                
it would adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the
General Partner to any additional taxes under Section 857 or Section 4981 of the Code;

 

(ii)              
it would result in the Partnership being treated as an association taxable as a corporation for federal income tax
purposes;

 

(iii)            
such Transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I
of ERISA, a “party-in-interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined
in Section 4975(c) of the Code);

 

(iv)            
such Transfer would, in the opinion of legal counsel for the Partnership, cause any portion of the assets of the
Partnership to constitute assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101;

 

(v)              
such Transfer would subject the Partnership to regulation under the Investment Company Act of 1940, the Investment
Advisors Act of 1940 or the Employee Retirement Income Security Act of 1974, each as amended;

 

(vi)            
such Transfer is a sale or exchange, and such sale or exchange would, when aggregated with all other sales and exchanges
during the 12-month period ending on the date of the proposed Transfer, result in 50% or more of the interests in Partnership capital
and profits being sold or exchanged during such 12-month period without the consent of the General Partner, which consent may
be withheld in its sole and absolute discretion; or

 

(vii)          
such Transfer is effectuated through an “established securities market” or a “secondary market
(or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code.

 

(e)               
No transfer of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within
the meaning of Section 1.752-4(b) of the Regulations) to any

 

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lender to the Partnership whose loan constitutes a nonrecourse
liability (within the meaning of Section 1.752-1(a)(2) of the Regulations), without the consent of the General Partner, which may
be withheld in its sole and absolute discretion; provided, however, that as a condition to such consent the lender will
be required to enter into an arrangement with the Partnership and the General Partner to exchange for the Cash Amount any Partnership
Units in which a security interest is held simultaneously with the time at which such lender would be deemed to be a partner in
the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code.

 

(f)               
Any Transfer in contravention of any of the provisions of this Section 11.3 shall be void and ineffectual and shall
not be binding upon, or recognized by, the Partnership.

 

11.4         
Substituted Limited Partners

 

(a)            (i)               No
Limited Partner shall have the right to substitute a Permitted Transferee for a Limited Partner in its place.

 

(ii)              
The General Partner shall, however, have the right to consent to the admission of a Permitted Transferee of the Partnership
Interest of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld
by the General Partner in its sole and absolute discretion.

 

(iii)            
The General Partner’s failure or refusal to permit such transferee to become a Substituted Limited Partner
shall not give rise to any cause of action against the Partnership or any Partner.

 

(b)              
A transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have
all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement.

 

(c)           (i)               No
Permitted Transferee will be admitted as a Substituted Limited Partner, unless such transferee has furnished to the General Partner
evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and, as
it relates to the Substituted Limited Partners, the Exchange Rights Agreement, including the power of attorney granted in Section
2.4 hereof.

 

(ii)              
Upon the admission of a Substituted Limited Partner, the General Partner shall amend Exhibit A to reflect the name,
address, number of Partnership Units, and Percentage Interest of such Substituted Limited Partner, and to eliminate or adjust,
if necessary, the name, address and interest of the predecessor of such Substituted Limited Partner.

 

11.5         
Assignees

 

(a)               
If the General Partner, in its sole and absolute discretion, does not consent to the admission of any transferee
as a Substituted Limited Partner, as described in Section 11.4(a), such transferee shall be considered an Assignee for purposes
of this Agreement.

 

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(b)              
 An Assignee shall be deemed to have had assigned to it, and shall be entitled to receive distributions from the
Partnership and the share of Net Income, Net Losses, Net Property Gain, Net Property Loss, and any other items of gain, loss, deduction
or credit of the Partnership attributable to the Partnership Units assigned to such transferee, but shall not be deemed to be a
holder of Partnership Units for any other purpose under this Agreement, and shall not be entitled to vote such Partnership Units
in any matter presented to the Limited Partners, for a vote (such Partnership Units being deemed to have been voted on such matter
in the same proportion as all other Partnership Units held by Limited Partners are voted).

 

(c)               
If any such transferee desires to make a further assignment of any such Partnership Units, such transferee shall
be subject to all of the provisions of this Article 11 to the same extent and in the same manner as any Limited Partner desiring
to make an assignment of Partnership Units.

 

11.6         
General Provisions

 

(a)               
No Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer of all of such
Limited Partner’s Partnership Units in accordance with this Article 11 or, as it relates to the Limited Partners, pursuant
to exchange of all of its Partnership Units pursuant to the applicable Exchange Rights Agreement.

 

(b)           (i)                Any
Limited Partner which shall Transfer all of its Partnership Units in a Transfer permitted pursuant to this Article 11 shall cease
to be a Limited Partner upon the admission of all Assignees of such Partnership Units as Substituted Limited Partners.

 

(ii)              
Similarly, any Limited Partner which shall Transfer all of its Partnership Units pursuant to an exchange of all of
its Partnership Units pursuant to an Exchange Rights Agreement shall cease to be a Limited Partner.

 

(c)               
Other than pursuant to the Exchange Rights Agreement or with the consent of the General Partner, transfers pursuant
to this Article 11 may only be made as of the first day of a fiscal quarter of the Partnership.

 

(d)          (i)                If
any Partnership Interest is transferred or assigned during the Partnership’s fiscal year in compliance with the provisions
of this Article 11 or exchanged pursuant to the applicable Exchange Rights Agreement on any day other than the first day of a
Partnership Year, then Net Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items attributable
to such interest for such Partnership Year shall be divided and allocated between the transferor Partner and the transferee Partner
by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using
the interim closing of the books method or such other method permitted by the Code as the General Partner may select.

 

(ii)              
Solely for purposes of making such allocations, each of such items for the calendar month in which the Transfer or
assignment occurs shall be allocated to the transferee Partner, and none of such items for the calendar month in which an exchange
occurs shall be allocated to the exchanging Partner, provided, however, that the General

 

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Partner may adopt such other conventions relating
to allocations in connection with transfers, assignments, or exchanges as it determines are necessary or appropriate.

 

(iii)            
All distributions pursuant to Section 5.1(a) and Section 5.1(b) attributable to Partnership Units, with respect to
which the Partnership Record Date is before the date of such Transfer, assignment, or exchange of such Partnership Units, shall
be made to the transferor Partner or the exchanging Partner, as the case may be, and in the case of a Transfer or assignment other
than an exchange, all distributions pursuant to Section 5.1(a) and Section 5.1(b) thereafter attributable to such Partnership
Units shall be made to the transferee Partner.

 

(e)               
In addition to any other restrictions on transfer herein contained, including the provisions of this Article 11,
in no event may any Transfer or assignment of a Partnership Interest by any Partner (including pursuant to Section 8.6) be made
without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks
the legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion
of a Partnership Interest, such as the Capital Account, or rights to distributions, separate and apart from all other components
of a Partnership Interest; (iv) if in the opinion of legal counsel to the Partnership such transfer would cause a termination of
the Partnership for federal or state income tax purposes (except as a result of the exchange for Common Stock of all Partnership
Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (v) if in the opinion
of counsel to the Partnership, there would be a significant risk that such transfer would cause the Partnership to cease to be
classified as a partnership for federal income tax purposes (except as a result of the exchange for Common Stock of all Partnership
Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (vi) if such transfer
requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such
transfer is effectuated through an “established securities market” or a “secondary market (or the substantial
equivalent thereof)” within the meaning of Section 7704 of the Code or such transfer causes the Partnership to become a “publicly
traded partnership,” as such term is defined in Section 469(k)(2) or Section 7704(b) of the Code (provided, however,
that this clause (vii) shall not be the basis for limiting or restricting in any manner the exercise of the Exchange Right under
Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that,
in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a “publicly
traded partnership” and, by reason thereof, taxable as a corporation); (viii) such transfer could adversely affect the ability
of the General Partner to remain qualified as a REIT; or (ix) if in the opinion of legal counsel of the transferring Partner (which
opinion and counsel are reasonably satisfactory to the Partnership), or legal counsel of the Partnership, such transfer would adversely
affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes
under Section 857 or Section 4981 of the Code, if the General Partner has elected to be qualified as a REIT.

 

(f)               
The General Partner shall monitor the transfers of interests in the Partnership to determine (i) if such interests
are being traded on an “established securities market” or a “secondary market (or the substantial equivalent
thereof)” within the meaning of Section 7704 of the Code; and (ii) whether additional transfers of interests would result
in the Partnership being

 

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unable to qualify for at least one of the “safe harbors”
set forth in Section 1.7704-1 of the Regulations (or such other guidance subsequently published by the IRS setting forth safe harbors
under which interests will not be treated as “readily tradable on a secondary market (or the substantial equivalent thereof)”
within the meaning of Section 7704 of the Code) (the “PTP Safe Harbors”). The General Partner shall take all
steps reasonably necessary or appropriate to prevent any trading of interests or any recognition by the Partnership of transfers
made on such markets and, except as otherwise provided herein, to insure that at least one of the PTP Safe Harbors is met; provided,
however , that the foregoing shall not authorize the General Partner to limit or restrict in any manner the right of any holder
of a Partnership Unit to exercise the Exchange Right in accordance with the terms of the applicable Exchange Rights Agreement unless,
and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence
of such limitation or restriction, there is a significant risk that the Partnership will be treated as a “publicly traded
partnership” and, by reason thereof, taxable as a corporation.

 

Article
12.

ADMISSION OF PARTNERS

 

12.1         
Admission of Successor General Partner

 

(a)            (i)                A
successor to all of the General Partner Interest pursuant to Article 11 hereof who is proposed to be admitted as a successor General
Partner shall be admitted to the Partnership as the General Partner, effective immediately following such transfer and the admission
of such successor General Partner as a general partner of the Partnership upon the satisfaction of the terms and conditions set
forth in Section 12.1(b).

 

(ii)              
Any such transferee shall carry on the business of the Partnership without dissolution.

 

(b)              
A Person shall be admitted as a substitute or successor General Partner of the Partnership only if the following
terms and conditions are satisfied:

 

(i)                
the Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound
by all the terms and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as
may be required or appropriate in order to effect the admission of such Person as a General Partner;

 

(ii)              
if the Person to be admitted as a substitute or additional General Partner is a corporation or a partnership it shall
have provided the Partnership with evidence satisfactory to counsel for the Partnership of such Person’s authority to become
a General Partner and to be bound by the terms and provisions of this Agreement; and

 

(iii)            
counsel for the Partnership shall have rendered an opinion (relying on such opinions from other counsel as may be
necessary) that the admission of the person to be admitted as a substitute or additional General Partner is in conformity with
the Act, that none of the actions taken in connection with the admission of such Person as a substitute or additional General Partner
will cause

 

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(A)            
 the Partnership to be classified other than as a partnership for federal income tax purposes, or

 

(B)             
the loss of any Limited Partner’s limited liability.

 

(c)               
In the case of such admission on any day other than the first day of a Partnership Year, all items attributable to
the General Partner Interest for such Partnership Year shall be allocated between the transferring General Partner and such successor
as provided in Section 11.6(d) hereof.

 

12.2         
Admission of Additional Limited Partners

 

(a)               
A Person who makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted
to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner

 

(i)                
evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement
and the applicable Exchange Rights Agreement, including the power of attorney granted in Section 2.4 hereof, and

 

(ii)              
such other documents or instruments as may be required in the discretion of the General Partner in order to effect
such Person’s admission as an Additional Limited Partner.

 

(b)           (i)               Notwithstanding
anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner without the consent
of the General Partner, which consent may be given or withheld in the General Partner’s sole and absolute discretion.

 

(ii)              
The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name
of such Person is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission.

 

(c)            (i)                If
any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Partnership Year, then
Net Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items allocable among Partners and
Assignees for such Partnership Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees
by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using
the interim closing of the books method or such other method permitted by the Code as the General Partner may select.

 

(ii)            (A)            Solely
for purposes of making such allocations, each of such items for the calendar month in which an admission of any Additional Limited
Partner occurs shall be allocated among all of the Partners and Assignees, including such Additional Limited Partner.

 

(B)             
distributions pursuant to Section 5.1(a) and Section 5.1(b) with respect to which the Partnership Record Date is
before the date of such admission

 

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shall be made solely to Partners and Assignees, other
than the Additional Limited Partner, and all distributions pursuant to Section 5.1(a) and Section 5.1(b) thereafter shall be made
to all of the Partners and Assignees, including such Additional Limited Partner.

 

12.3         
Amendment of Agreement and Certificate of Limited Partnership

 

For the admission to the Partnership of
any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership
and, if necessary, to prepare as soon as practical an amendment of this Agreement (including an amendment of Exhibit A) and, if
required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney
granted pursuant to Section 2.4 hereof.

 

Article
13.

DISSOLUTION, LIQUIDATION AND TERMINATION

 

13.1         
Dissolution

 

(a)               
The Partnership shall not be dissolved by the admission of Substituted Limited Partners, Additional Limited Partners
or by the admission of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General
Partner, any successor General Partner shall continue the business of the Partnership.

 

(b)              
The Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following
(each, a “Liquidating Event”):

 

(i)                
the expiration of its term as provided in Section 2.5 hereof;

 

(ii)              
an event of withdrawal of the General Partner, as defined in the Act (other than an event of bankruptcy), unless,
within ninety (90) days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining
Partners Consent in writing to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal,
of a successor General Partner;

 

(iii)            
an election to dissolve the Partnership made by the General Partner, with the Consent of the Limited Partners holding
at least a majority of the Percentage Interest of the Limited Partners (including Limited Partner Interests held by the General
Partner);

 

(iv)            
entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of the Act;

 

(v)              
a Capital Transaction;

 

(vi)            
a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner
is bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction
against the General Partner, in each case under any federal or state bankruptcy or insolvency

 

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laws as now or hereafter in effect, unless prior to
the entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in
writing to continue the business of the Partnership and to the appointment, effective as of a date prior to the date of such order
or judgment, of a substitute General Partner.

 

As used herein, a “majority in interest”
shall refer to Partners (excluding the General Partner) who hold more than fifty percent (50%) of the outstanding Percentage Interests
not held by the General Partner.

 

13.2         
Winding Up

 

(a)            (i)               Upon
the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in an
orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners.

 

(ii)              
No Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up
of the Partnership’s business and affairs.

 

(iii)            
The General Partner, or, if there is no remaining General Partner, any Person elected by the Limited Partners holding
at least a “majority in interest” (the General Partner or such other Person being referred to herein as the “Liquidator”),
shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership’s
liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair
value thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner, include shares of common
stock or other securities of the General Partner) shall be applied and distributed in the following order:

 

(A)            
First, to the payment and discharge of all of the Partnership’s debts and liabilities to creditors other than
the Partners;

 

(B)             
Second, to the payment and discharge of all of the Partnership’s debts and liabilities to the General Partner;

 

(C)             
Third, to the payment and discharge of all of the Partnership’s debts and liabilities to the other Partners;
and

 

(D)            
the balance, if any, shall be distributed to all Partners (including the Special Limited Partner) with positive Capital
Accounts in accordance with their respective positive Capital Account balances after giving effect to all allocations in Exhibit
B and all prior distributions under Section 5.1.

 

(iv)            
The General Partner shall not receive any additional compensation for any services performed pursuant to this Article
13.

 

(v)              
Any distributions pursuant to this Section 13.2(a) shall be made by the end of the Partnership’s taxable year
in which the liquidation occurs (or, if later, within 90 days after the date of the liquidation).

 

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(b)           (i)                Notwithstanding
the provisions of Section 13.2(a) hereof which require liquidation of the assets of the Partnership, but subject to the order
of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate
sale of part or all of the Partnership’s assets would be impractical or would cause undue loss to the Partners (including
the Special Limited Partner), the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation
of any asset except those necessary to satisfy liabilities of the Partnership (including to those Partners, including the Special
Limited Partner, as creditors) or distribute to the Partners (including the Special Limited Partner), in lieu of cash, as tenants
in common and in accordance with the provisions of Section 13.2(a) hereof, undivided interests in such Partnership assets as the
Liquidator deems not suitable for liquidation.

 

(ii)              
Any such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions
in kind are in the best interests of the Partners (including the Special Limited Partner), and shall be subject to such conditions
relating to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements
governing the operation of such properties at such time.

 

(iii)            
The Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method
of valuation as it may adopt.

 

(c)               
In the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the
General Partner, the Limited Partners and the Special Limited Partner pursuant to this Article 13 may be:

 

(A)            
distributed to a trust established for the benefit of the General Partner, the Limited Partners and the Special Limited
Partner for the purposes of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent
or unforeseen liabilities or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership;
the assets of any such trust shall be distributed to the General Partner, the Limited Partners and the Special Limited Partner
from time to time, in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust
by the Partnership would otherwise have been distributed to the General Partner, the Limited Partners and the Special Limited Partner
pursuant to this Agreement; or

 

(B)             
withheld or escrowed to provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to
reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed
amounts shall be distributed to the General Partner, the Limited Partners and the Special Limited Partner in the manner and order
of priority set forth in Section 13.2(a), as soon as practicable.

 

13.3         
No Obligation to Contribute Deficit

 

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If any Partner (other than a holder of Class
B Units) has a deficit balance in his Capital Account (after giving effect to all contributions, distributions and allocations
for all taxable years, including the year during which such liquidation occurs), such Partner shall have no obligation to make
any contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a debt
owed to the Partnership or to any other Person for any purpose whatsoever. If a holder of Class B Units has a deficit balance in
its Capital Account attributable to such Class B Units (after giving effect to all contributions, distributions and allocations
for all taxable years, including the year during with such liquidation occurs), such holder of Class B Units shall restore and
contribute to the capital of the Partnership the amount necessary to restore such deficit balance to zero, but not to exceed an
amount equal to the excess of the cash distributions of Net Sales Proceeds made (if any) to such holder of Class B Units over the
amount of Net Property Gain (including, to the extent necessary, individual items of income and gain comprising Net Property Gain)
and Liquidating Gain allocated to such holder of Class B Units in accordance with subparagraph 1(c)(ii) of Exhibit B, in
compliance with Section 1.704-1(b)(2)(ii)(b)(3) of the Regulations, which restoration and contribution shall be before
the later to occur of (x) the end of the taxable year in which the Partnership is liquidated, or (y) ninety (90) days after the
date of the liquidation of the Partnership, which amount shall be paid to creditors of the Partnership or, if the amount contributed
exceeds the amount due to creditors, shall be distributed to the Partners with positive Capital Account balances.

 

13.4         
Rights of Limited Partners

 

(a)               
Except as otherwise provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership
for the return of its Capital Contributions and shall have no right or power to demand or receive property other than cash from
the Partnership.

 

(b)              
Except as otherwise provided in this Agreement, no Limited Partner shall have priority over any other Partner as
to the return of its Capital Contributions, distributions, or allocations.

 

13.5         
Notice of Dissolution

 

If a Liquidating Event occurs or an event
occurs that would, but for the provisions of an election or objection by one or more Partners pursuant to Section 13.1, result
in a dissolution of the Partnership, the General Partner shall, within thirty (30) days thereafter, provide written notice thereof
to each of the Partners (including the Special Limited Partner).

 

13.6         
Termination of Partnership and Cancellation of Certificate of Limited Partnership

 

Upon the completion of the liquidation of
the Partnership’s assets, as provided in Section 13.2 hereof, the Partnership shall be terminated, a certificate of
cancellation shall be filed, and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other
than the state of Delaware shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken.

 

13.7         
Reasonable Time for Winding-Up

 

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A reasonable time shall be allowed for the
orderly winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to Section 13.2 hereof
in order to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement shall remain in
effect among the Partners (including the Special Limited Partner) during the period of liquidation.

 

13.8         
Waiver of Partition

 

Each Partner hereby waives any right to
partition of the Partnership property.

 

Article
14.

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS

 

14.1         
Amendments

 

(a)             (i)               The
General Partner shall have the power, without the consent of the Limited Partners or the Special Limited Partner, to amend this
Agreement except as set forth in Sections 14.1(b). The General Partner shall provide notice to the Limited Partners and the Special
Limited Partner when any action under this Section 14.1(a) is taken in the next regular communication to the Limited Partners.

 

(b)              
Notwithstanding Section 14.1(a) hereof, this Agreement shall not be amended with respect to

 

(i)                
any Partner, including the Special Limited Partner, adversely affected without the Consent of such Partner adversely
affected if such amendment would:

 

(A)            
convert a Limited Partner’s or the Special Limited Partner’s interest in the Partnership into a General
Partner Interest;

 

(B)             
modify the limited liability of a Limited Partner or the Special Limited Partner in a manner adverse to such Limited
Partner or the Special Limited Partner; or

 

(C)             
amend this Section 14.1(b)(i).

 

(ii)              
any Limited Partner adversely affected without the Consent of Limited Partners holding more than fifty percent (50%)
of the outstanding Percentage Interests of the Limited Partners adversely affected if such amendment would:

 

(A)            
alter or change Exchange Rights;

 

(B)             
create an obligation to make Capital Contributions not contemplated in this Agreement;

 

(C)             
alter or change the terms of this Agreement or the Exchange Rights Agreement regarding the rights of the limited
partners with respect to Business Combinations;

 

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(D)            
 alter or change the distribution and liquidation rights provided in Section 5 and 13 hereto, except as otherwise
permitted under this Agreement; or

 

(E)             
amend this Section 14.1(b)(ii).

 

(c)               
Section 14.1(b)(i) does not require unanimous consent of all Partners adversely affected unless the amendment is
to be effective against all Partners adversely affected.

 

(d)              
Notwithstanding Section 14.1(a) hereof, no provision of this Agreement shall be amended or modified without the Special
Limited Partner’s prior written consent if such amendment or modification (i) relates to the distributions, allocations or
other rights and privileges of the Special Limited Partner or (ii) would amend this Section 14.1(d).

 

14.2         
Meetings of the Partners

 

(a)           (i)                Meetings
of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written
request by Limited Partners holding 25 percent or more of the Partnership Interests.

 

(ii)              
The request shall state the nature of the business to be transacted.

 

(iii)            
Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30)
days prior to the date of such meeting.

 

(iv)            
Partners may vote in person or by proxy at such meeting.

 

(v)              
Whenever the vote or Consent of the Limited Partners is permitted or required under this Agreement, such vote or
Consent may be given at a meeting of the Partners or may be given in accordance with the procedure prescribed in Section 14.1(a).

 

(vi)            
Except as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Percentage
Interests held by Partners (including the General Partner) shall control.

 

(b)            (i)              Subject
to Section 14.2(a)(vi), any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting
if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or
such other percentage as is expressly required by this Agreement).

 

(ii)              
Such Consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote
of a majority of the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement).

 

(iii)            
Such Consent shall be filed with the General Partner.

 

(iv)            
An action so taken shall be deemed to have been taken at a meeting held on the effective date of the Consent as certified
by the General Partner.

 

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(c)            (i)              Each
Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting.

 

(ii)              
Every proxy must be signed by the Partner or an attorney-in-fact and a copy thereof delivered to the Partnership.

 

(iii)            
No proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided
in the proxy.

 

(iv)            
Every proxy shall be revocable at the pleasure of the Partner executing it, such revocation to be effective upon
the General Partner’s receipt of written notice of such revocation from the Partner executing such proxy.

 

(d)           (i)              
Each meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may
appoint pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deems
appropriate.

 

(ii)              
Meetings of Partners may be conducted in the same manner as meetings of the Stockholders of the General Partner and
may be held at the same time, and as part of, meetings of the Stockholders of the General Partner.

 

Article
15.

GENERAL PROVISIONS

 

15.1         
Addresses and Notice

 

Any notice, demand, request or report required
or permitted to be given or made to a Partner, the Special Limited Partner, Indemnitee or Assignee under this Agreement shall be
in writing and shall be deemed given or made when delivered in person or five days after being sent by first class United States
mail or by overnight delivery or via facsimile to the Partner or Assignee at the address set forth in Exhibit A or such
other address of which the Partner shall notify the General Partner in writing. Notwithstanding the foregoing, the General Partner
may elect to deliver any such notice, demand, request or report by E-mail or by any other electronic means, in which case such
communication shall be deemed given or made one day after being sent.

 

15.2         
Titles and Captions

 

All article or section titles or captions
in this Agreement are for convenience of reference only, shall not be deemed part of this Agreement and shall in no way define,
limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to
“Articles” and “Sections” are to Articles and Sections of this Agreement.

 

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15.3         
Pronouns and Plurals

 

Whenever the context may require, any pronoun
used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns
and verbs shall include the plural and vice versa.

 

15.4         
Further Action

 

The parties shall execute and deliver all
documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes
of this Agreement.

 

15.5         
Binding Effect

 

This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted
assigns.

 

15.6         
Creditors

 

Other than as expressly set forth herein
with respect to the Indemnities, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable
by, any creditor of the Partnership.

 

15.7         
Waiver

 

No failure by any party to insist upon the
strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent
upon a breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition.

 

15.8         
Counterparts

 

This Agreement may be executed (including
by facsimile transmission) which counterpart signature pages or in counterparts, all of which together shall constitute one agreement
binding on all of the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart.
Each party shall become bound by this Agreement immediately upon affixing its signature hereto.

 

15.9         
Applicable Law

 

This Agreement shall be construed and enforced
in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of laws thereof.

 

15.10     
Invalidity of Provisions

 

If any provision of this Agreement is or
becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not be affected thereby.

 

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15.11     
Entire Agreement

 

This Agreement contains the entire understanding
and agreement among the Partners with respect to the subject matter hereof and supersedes any other prior written or oral understandings
or agreements among them with respect thereto.

 

15.12     
Merger

 

Notwithstanding any provision of this Agreement,
the General Partner, without the consent of the Limited Partners or any other Person, may (i) merge or consolidate the Partnership
with or into any other domestic or foreign partnership, limited partnership, limited liability company, corporation or other Person
or (ii) sell all or substantially all of the assets of the Partnership and may amend this Agreement in any manner or adopt a new
limited partnership agreement for the Partnership in connection with any such transaction consistent with the provisions of this
Section 15.12.

 

15.13     
No Rights as Stockholders

 

Nothing contained in this Agreement shall
be construed as conferring upon the holders of the Partnership Units any rights whatsoever as Stockholders of the General Partner,
including any right to receive dividends or other distributions made to Stockholders or to vote or to consent or receive notice
as Stockholders in respect to any meeting or Stockholders for the election of directors of the General Partner or any other matter.

 

Article
16.

CLASS B UNITS

 

16.1         
Designation and Number

 

(a)               
A series of Partnership Units in the Partnership, designated as the “Class B Units,” is hereby established.
Except as set forth in this Article 16, Class B Units shall have the same rights, privileges and preferences as the OP Units. Subject
to the provisions of this Article 16 and the special provisions of subparagraph 1(c)(ii) of Exhibit B, Class B Units shall
be treated as Partnership Units, with all of the rights, privileges and obligations attendant thereto. In connection with services
provided by the Advisor under the Advisory Agreement, the General Partner shall cause the Partnership to issue to the Initial Limited
Partner within thirty (30) days after the end of each Quarter a number of Class B Units equal to the quotient of:

 

(i)                
Prior to the NAV Pricing Start Date, (i) the excess of (A) the product of (y) the Cost of Assets multiplied by
(z) 0.1875% over (B) any amounts payable as an Oversight Fee (as defined in the Management Agreement) for such Quarter divided
by (ii) the Value of one share of Common Stock as of the last day of such Quarter; provided, that if the amounts payable
as an Oversight Fee for such Quarter exceed the amount determined under clause (A) for such Quarter (an “Excess Oversight
Fee”), no Class B Units shall be issued for such Quarter and the Excess Oversight Fee shall be carried forward to the
next succeeding Quarter and included with and treated as amounts payable as an Oversight Fee for such Quarter for purposes of determining
the amount of Class B

 

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Units issuable for such Quarter; provided further,
that the sum of (I) the amounts determined under clause (i) for a calendar year plus (II) the amounts payable as an Oversight
Fee for such calendar year, shall not be less than 0.75% of the Cost of Assets for such calendar year; provided further,
that each quarterly issuance of Class B Units shall be subject to the approval of the General Partner’s board of directors.

 

(ii)              
After the NAV Pricing Start Date. (i) the excess of (A) the product of (y) the lower of the Cost of Assets and the
General Partner’s quarterly NAV multiplied by (z) 0.1875% over (B) any amounts payable as an Oversight Fee
(as defined in the Management Agreement) for such Quarter divided by (ii) the NAV per share of Common Stock as of the last
day of such Quarter; provided, that if there is an Excess Oversight Fee, no Class B Units shall be issued for such Quarter
and the Excess Oversight Fee shall be carried forward to the next succeeding Quarter and included with and treated as amounts payable
as an Oversight Fee for such Quarter for purposes of determining the amount of Class B Units issuable for such Quarter; provided
further, that the sum of (I) the amounts determined under clause (i) for a calendar year plus (II) the amounts payable
as an Oversight Fee for such calendar year, shall not be less than 0.75% of the lower of the Cost of Assets and the General Partner’s
NAV for such calendar year; provided further, that each quarterly issuance of Class B Units shall be subject to the
approval of the General Partner’s board of directors.

 

(b)              
It is intended that the Partnership shall maintain at all times a one-to-one correspondence between Class B Units
and OP Units for conversion and other purposes. If an Adjustment Event (as defined below) occurs, then the General Partner shall
make a corresponding adjustment to the Class B Units to maintain a one-for-one conversion and economic equivalence ratio between
OP Units and Class B Units. The following shall be “Adjustment Events:” (A) the Partnership makes a distribution
on all outstanding OP Units in Partnership Units, (B) the Partnership subdivides the outstanding OP Units into a greater number
of units or combines the outstanding OP Units into a smaller number of units, or (C) the Partnership issues any Partnership Units
in exchange for its outstanding OP Units by way of a reclassification or recapitalization of its OP Units. If more than one Adjustment
Event occurs, the adjustment to the Class B Units need be made only once using a single formula that takes into account each and
every Adjustment Event as if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following events shall
not be Adjustment Events: (x) the issuance of Partnership Units in a financing, reorganization, acquisition or other similar business
transaction, (y) the issuance of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment
plan, or (z) the issuance of any Partnership Units in respect of a capital contribution to the Partnership, including a contribution
by the General Partner of proceeds from the sale of securities by the General Partner. If the Partnership takes an action affecting
the OP Units other than actions specifically described above as Adjustment Events and, in the opinion of the General Partner such
action would require an adjustment to the Class B Units to maintain the one-to-one correspondence described above, the General
Partner shall have the right to make such adjustment to the Class B Units, to the extent permitted by law, in such manner and at
such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment
is made to the Class B Units as herein provided, the Partnership shall promptly file in the books and records of the Partnership
an officer’s certificate setting forth such adjustment and a brief statement of the facts requiring such

 

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adjustment, which certificate shall be conclusive evidence of
the correctness of such adjustment absent manifest error. Promptly after the filing of such certificate, the Partnership shall
mail a notice to each holder of Class B Units setting forth the adjustment to his, her or its Class B Units and the effective date
of such adjustment.

 

16.2         
Special Provisions. Class B Units shall be subject to the following special provisions:

 

(a)               
Restrictions and Forfeiture.

 

(i)                
All Class B Units when issued shall be subject to forfeiture and shall constitute “Restricted Class B Units”
and shall remain subject to forfeiture as provided in this Section 16.2(a) until the requirements of this Section 16.2(a) have
been satisfied.

 

(ii)              
One hundred percent (100%) of the outstanding Restricted Class B Units shall no longer be subject to forfeiture and
shall constitute “Unrestricted Class B Units” at such time as:

 

(A)            
the value of the Partnership’s assets (as determined by the General Partner) plus all distributions made under
Sections 5.1(a), 5.1(b)(i) and 5.1(b)(ii) equals the cumulative Net Investment plus the Priority Return on such cumulative Net
Investment (the “Economic Hurdle”); provided, that in the event of an OP Unit Transaction the determination
of the value of the Partnership’s assets shall take into account the offering price or transaction value of the Common Stock,
as appropriate; and

 

(B)             
a Liquidity Event occurs concurrently with or subsequent to the Economic Hurdle being met.

 

(iii)            
If the Advisory Agreement is terminated for any reason other than pursuant to a Termination Without Cause, any outstanding
Restricted Class B Units shall be forfeited immediately. If the Advisory Agreement is terminated pursuant to a Termination Without
Cause prior to the date on which the Economic Hurdle has been met, any outstanding Restricted Class B Units shall be forfeited
immediately. Upon such forfeiture, such Restricted Class B Units shall immediately, and without any further action, be treated
as cancelled and no longer outstanding for any purpose. No consideration or other payment shall be due with respect to any Class
B Units that have been forfeited. In connection with any forfeiture of Class B Units, the balance of the Capital Account of a holder
of Class B Units, if any, shall be reduced by the amount of the Capital Account attributable to the forfeited Class B Units, and
such reduction shall be reallocated to all holders of OP Units, pro rata in accordance with their respective Percentage Interests
with respect to OP Units.

 

(iv)            
The General Partner may in its sole discretion provide for the acceleration, waiver or change of the forfeiture provisions
contained in this Section 16.2(a), in whole or in part, based on such factors or criteria as the General Partner may determine.

 

(b)              
Distributions. The holders of Class B Units shall be entitled to (i) current distributions of Cash Available
for Distribution pursuant to Section 5.1(a), (ii) distributions, if

 

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any, of Net Sales Proceeds pursuant to Section 5.1(b)(iii),
and (iii) distributions in liquidation of the Partnership pursuant to Section 13.2.

 

(c)               
Allocations. Holders of Class B Units shall be entitled to certain special allocations of gain under subparagraph
1(c)(ii) of Exhibit B.

 

(d)              
Exchange Right. The right to exchange all or a portion of Partnership Units for cash or, at the option of
the Partnership, for shares of Common Stock provided to Limited Partners under Section 8.6 hereof shall not apply with respect
to Class B Units unless and until the Class B Units are converted to OP Units as provided in clause (e) below and Section 16.4
hereof.

 

(e)               
Conversion to OP Units. Unrestricted Class B Units are eligible to be converted into OP Units in accordance
with Section 16.4 hereof.

 

16.3         
Voting

 

(a)               
Holders of Class B Units shall (a) have the same voting rights as the Limited Partners, with the Class B Units voting
as a single class with the OP Units and having one vote per Class B Unit; and (b) have the additional voting rights that are expressly
set forth below. So long as any Class B Units remain outstanding, the Partnership shall not, without the affirmative vote of the
holders of at least a majority of the Class B Units outstanding at the time, given in person or by proxy, either in writing or
at a meeting (voting separately as a class), amend, alter or repeal, whether by merger, consolidation or otherwise, the provisions
of this Agreement applicable to Class B Units so as to materially and adversely affect any right, privilege or voting power of
the Class B Units or the holders of Class B Units as such, unless such amendment, alteration, or repeal affects equally, ratably
and proportionately the rights, privileges and voting powers of the Limited Partners; but subject, in any event, to the following
provisions:

 

(i)                
With respect to any OP Unit Transaction, so long as the Class B Units are treated in accordance with Section 16.4(c)
hereof, the consummation of such OP Unit Transaction shall not be deemed to materially and adversely affect such rights, preferences,
privileges or voting powers of the Class B Units or the holders of Class B Units as such; and

 

(ii)              
Any creation or issuance of any Partnership Units or of any class or series of Partnership Interest including additional
OP Units or Class B Units whether ranking senior to, junior to, or on a parity with the Class B Units with respect to distributions
and the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect
such rights, preferences, privileges or voting powers of the Class B Units or the holders of Class B Units as such.

 

(b)              
The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such
vote would otherwise be required, all outstanding Class B Units shall have been converted into OP Units.

 

16.4         
Conversion of Class B Units

 

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(a)               
 Conversion. Restricted Class B Units shall not be convertible into OP Units until they become Unrestricted
Class B Units. At such time as the Economic Capital Account Balance attributable to an Unrestricted Class B Unit is equal to the
OP Unit Economic Balance, each such balance determined on a per unit basis as of the effective date of conversion (the “Conversion
Date”), such Unrestricted Class B Unit shall automatically convert into one fully paid and non-assessable OP Unit, giving
effect to all adjustments (if any) made pursuant to Section 16.1 hereof; provided, that an Unrestricted Class B Unit
shall not be convertible into OP Units if the Economic Capital Account Balance attributable to such Unrestricted Class B Unit is
negative. Each holder of Class B Units covenants and agrees with the Partnership that all Unrestricted Class B Units to be converted
pursuant to this Section 16.4 shall be free and clear of all liens. The conversion of Unrestricted Class B Units shall occur
automatically after the close of business on the applicable Conversion Date without any action on the part of such holder of Unrestricted
Class B Units, as of which time such holder of Unrestricted Class B Units shall be credited on the books and records of the Partnership
with the issuance as of the opening of business on the next day of the number of OP Units issuable upon such conversion. For purposes
of determining the Economic Capital Account Balance attributable to an Unrestricted Class B Unit, allocations pursuant to subparagraph
1(c)(ii) of Exhibit B shall be made in such a manner so as to allow the greatest number of Class B Units to convert pursuant
to this Section 16.4 at any time.

 

(b)              
Adjustment to Gross Asset Value.

 

(i)                
The General Partner shall provide the holders of Class B Units the opportunity but not the obligation to make Capital
Contributions to the Partnership in exchange for OP Units in order to cause an adjustment to the Gross Asset Value of the Partnership’s
assets within the meaning of paragraph (b)(i) of the definition of Gross Asset Value up to two (2) times each fiscal year including:

 

(A)            
if the Partnership or the General Partner shall be a party to any OP Unit Transaction; provided, that the
General Partner shall give each holder of Class B Units written notice of such OP Unit Transaction at least thirty (30) days prior
to entering into any definitive agreement pursuant to which the OP Unit Transaction would be consummated;

 

(B)             
upon a Listing; provided, that the General Partner shall give each holder of Class B Units written notice
of such Listing at least thirty (30) days prior to such Listing; or

 

(C)             
upon a Termination Without Cause; provided, that the General Partner shall give each holder of Class B Units
written notice of such Termination Without Cause at least thirty (30) days prior to such Termination Without Cause.

 

(ii)              
For purposes of clause (i) of this Section 16.4(b), the value of each OP Unit issued in order to cause an adjustment
to the Gross Asset Value of the Partnership’s assets shall be an amount equal to the product of (y) the Value of a share
of Common Stock as of the date the holder of Class B Units makes a Capital Contribution to the Partnership multiplied by (z) the
Exchange Factor.

 

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(iii)            
 For the avoidance of doubt, the issuance of Class B Units shall be treated as an event allowing for an adjustment
to the Gross Asset Value of the Partnership’s assets within the meaning of paragraph (b)(iv) of the definition of Gross Asset
Value.

 

(c)               
Impact of Conversion for Purposes of Subparagraph 1(c)(ii) of Exhibit B. For purposes of making future allocations
under subparagraph 1(c)(ii) of Exhibit B, the portion of the Economic Capital Account Balance of the applicable holder of
Unrestricted Class B Units that is treated as attributable to his, her or its Class B Units shall be reduced, as of the date of
conversion, by the product of the number of Unrestricted Class B Units converted and the OP Unit Economic Balance.

 

(d)              
OP Unit Transactions. Immediately prior to or concurrent with an OP Unit Transaction the maximum number of
Class B Units then eligible for conversion (in accordance with the provisions of Section 16.4(a)) shall automatically be converted
into an equal number of OP Units, giving effect to all adjustments (if any) made pursuant to Section 16.1 hereof, taking into account
any allocations that occur in connection with the OP Unit Transaction or that would occur in connection with the OP Unit Transaction
if the assets of the Partnership were sold at the OP Unit Transaction price or, if applicable, at a value determined by the General
Partner in good faith using the value attributed to the Partnership Units in the context of the OP Unit Transaction (in which case
the Conversion Date shall be the effective date of the OP Unit Transaction). In anticipation of such OP Unit Transaction, the Partnership
shall use commercially reasonable efforts to cause each holder of Class B Units to be afforded the right to receive in connection
with such OP Unit Transaction in consideration for the OP Units into which his, her or its Class B Units will be converted the
same kind and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such
OP Unit Transaction by a holder of the same number of OP Units, assuming such holder of OP Units is not a Person with which the
Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer
was made, as the case may be (a “Constituent Person”), or an affiliate of a Constituent Person. In the event
that holders of OP Units have the opportunity to elect the form or type of consideration to be received upon consummation of the
OP Unit Transaction, prior to such OP Unit Transaction the General Partner shall give prompt written notice to each holder of Class
B Units of such election, and shall use commercially reasonable efforts to afford the holders of Class B Units the right to elect,
by written notice to the General Partner, the form or type of consideration to be received upon conversion of each Class B Unit
held by such holder into OP Units in connection with such OP Unit Transaction. If a holder of Class B Units fails to make such
an election, such holder (and any of its transferees) shall receive upon conversion of each Class B Unit held by him, her or it
(or by any of his, her or its transferees) the same kind and amount of consideration that a holder of an OP Unit would receive
if such OP Unit holder failed to make such an election. The Partnership shall use commercially reasonable effort to cause the terms
of any OP Unit Transaction to be consistent with the provisions of this Section 16.4(d) and to enter into an agreement with
the successor or purchasing entity, as the case may be, for the benefit of any holders of Class B Units whose Class B Units will
not be converted into OP Units in connection with the OP Unit Transaction that will (i) contain provisions enabling the holders
of Class B Units that remain outstanding after such OP Unit Transaction to convert their Class B Units into securities as comparable
as reasonably possible under the circumstances to the OP Units and (ii) preserve as far as

 

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reasonably possible under the circumstances the distribution,
special allocation, conversion, and other rights set forth in this Agreement for the benefit of the holders of Class B Units.

 

16.5         
Profits Interests

 

(a)               
Class B Units are intended to qualify as a “profits interest” in the Partnership issued to a new or existing
Partner in a partner capacity for services performed or to be performed to or for the benefit of the Partnership within the meaning
of Rev. Proc. 93-27, 1993-2 C.B. 343, and Rev. Proc. 2001-43, 2001-2 C.B. 191, the Code, the Regulations, and other future guidance
provided by the IRS with respect thereto, and the allocations under subparagraph 1(c)(ii) of Exhibit B shall be interpreted
in a manner that is consistent therewith.

 

(b)              
The Partners agree that the General Partner may make a Safe Harbor Election (if and when the Safe Harbor Election
becomes available), on behalf of itself and of all Partners, to have the Safe Harbor apply irrevocably with respect to Class B
Units transferred in connection with the performance of services by a Partner in a partner capacity. The Safe Harbor Election (if
and when the Safe Harbor Election becomes available) shall be effective as of the date of issuance of such Class B Units. If such
election is made, (i) the Partnership and each Partner agree to comply with all requirements of the Safe Harbor with respect to
all interests in the Partnership transferred in connection with the performance of services by a Partner in a partner capacity,
whether such Partner was admitted as a Partner or as the transferee of a previous Partner, and (ii) the General Partner shall cause
the Partnership to comply with all record-keeping requirements and other administrative requirements with respect to the Safe Harbor
as shall be required by proposed or final regulations relating thereto.

 

(c)               
The Partners agree that if a Safe Harbor Election is made by the General Partner, (A) each Class B Unit issued hereunder
with respect to which the Safe Harbor Election is available is a Safe Harbor Interest, (B) each Class B Unit represents a profits
interest received for services rendered or to be rendered to or for the benefit of the Partnership by such holder of Class B Units
in his, her or its capacity as a Partner or in anticipation of becoming a Partner, and (C) the fair market value of each Class
B Unit issued by the Partnership upon receipt by such holder of Class B Units as of the date of issuance is zero (plus the amount,
if any, of any Capital Contributions made to the Partnership by such holder of Class B Units in connection with the issuance of
such Class B Unit), representing the liquidation value of such interest upon receipt (with such valuation being consented to and
hereby approved by all Partners).

 

(d)              
Each Partner, by signing this Agreement or by accepting such transfer, hereby agrees (A) to comply with all requirements
of any Safe Harbor Election made by the General Partner with respect to each holder of Class B Units’ Safe Harbor Interest,
(B) that each holder of Class B Units shall take into account of all items of income, gain, loss, deduction and credit associated
with its Class B Units as if they were fully vested in computing its federal income tax liability for the entire period during
which it holds the Class B Units, (C) that neither the Partnership nor any Partner shall claim a deduction (as wages, compensation
or otherwise) for the fair market value of such Class B Units issued to a holder of such Class B Units, either at the time of grant
of the Class B Units or at the time the Class B Units becomes substantially vested, and (D) that to the extent that such profits
interest is forfeited after the date hereof, the Partnership shall make special forfeiture allocations of gross items of income,
deduction or loss

 

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(including, as may be permitted by or under Regulations (or
other rules promulgated) to be adopted, notional items of income, deduction or loss) in accordance with the Regulations to be adopted
under Sections 704(b) and 83 of the Code.

 

(e)               
The General Partner shall file or cause the Partnership to file all returns, reports and other documentation as may
be required, as reasonably determined by the General Partner, to perfect and maintain any Safe Harbor Election made by the General
Partner with respect to granting of each holder of Class B Units’ Safe Harbor Interest.

 

(f)               
The General Partner is hereby authorized and empowered, without further vote or action of the Partners, to amend
this Agreement to the extent necessary or helpful in accordance with the advice of Partnership tax counsel or accountants to sustain
the Partnership’s position that (A) it has complied with the Safe Harbor requirements in order to provide for a Safe Harbor
Election and it has ability to maintain the same, or (B) the issuance of the Class B Units is not a taxable event with respect
to the holders of Class B Units, and the General Partner shall have the authority to execute any such amendment by and on behalf
of each Partner pursuant to the power of attorney granted by this Agreement. Any undertaking by any Partner necessary or desirable
to (A) enable or preserve a Safe Harbor Election or (B) otherwise to prevent the issuance of Class B Units from being a taxable
event with respect to the holders of Class B Units may be reflected in such amendments and, to the extent so reflected, shall be
binding on each Partner.

 

(g)              
Each Partner agrees to cooperate with the General Partner to perfect and maintain any Safe Harbor Election, and to
timely execute and deliver any documentation with respect thereto reasonably requested by the General Partner, at the expense of
the Partnership.

 

(h)              
No Transfer of any interest in the Partnership by a Partner shall be effective unless prior to such Transfer, the
assignee or intended recipient of such interest shall have agreed in writing to be bound by the provisions of Section 10.2(d) and
this Section 16.5, in a form reasonably satisfactory to the General Partner.

 

(i)                
The provisions of this Section 16.5 shall apply regardless of whether or not a holder of Class B Units files an election
pursuant to Section 83(b) of the Code.

 

(j)                
The General Partner may amend this Section 16.5 as it deems necessary or appropriate to maximize the tax benefit
of the issuance of Class B Units to any holder of Class B Units if there are changes in the law or Regulations concerning the issuance
of partnership interests for services.

 

[SIGNATURE PAGE FOLLOWS]

 

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Signature Page to Agreement of Limited
Partnership of American Realty Capital Global Operating Partnership, L.P., among the undersigned and the other parties thereto.

 

GENERAL PARTNER:

 

AMERICAN REALTY CAPITAL GLOBAL TRUST,
INC.

 

		By:	/s/ Nicholas S. Schorsch

Name: Nicholas S. Schorsch

Title: Chief Executive Officer and Chairman of the Board of Directors

 

INITIAL LIMITED PARTNER:

 

AMERICAN REALTY CAPITAL GLOBAL SPECIAL
LIMITED PARTNERSHIP, LLC

 

By: AR Capital Global Holdings,
LLC, its Member

 

By: AR Capital, LLC, its sole member

 

		By:	/s/ Nicholas S. Schorsch \

Name: Nicholas S. Schorsch

Title: Manager

 

 

SPECIAL LIMITED PARTNER:

 

AMERICAN REALTY CAPITAL GLOBAL SPECIAL
LIMITED PARTNERSHIP, LLC

 

By: AR Capital Global Holdings,
LLC, its Member

 

By: AR Capital, LLC, its sole member

 

		By:	/s/ Nicholas S. Schorsch

Name: Nicholas S. Schorsch

Title: Manager

 

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Corporate/Limited Liability Company
Additional Limited Partner Signature Page to Agreement of Limited Partnership of American Realty Capital Global Operating Partnership,
L.P., among the undersigned and the other parties thereto.

 

	Dated:  ____________ __, 20___	
        [Name of Corporation/LLC]

         

        By:____________________________

        Name:

        Title:

         

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Individual Additional Limited Partner
Signature Page to Agreement of Limited Partnership of American Realty Capital Global Operating Partnership, L.P., among the undersigned
and the other parties thereto.

 

	Dated:  ____________ __, 20___	______________________________

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Partnership Limited Partner Signature
Page to Agreement of Limited Partnership of American Realty Capital Global Operating Partnership, L.P., among the undersigned and
the other parties thereto.

 

	Dated:  ____________ __, 20___	
        [Name of LP]

         

        By:______________________________

        Name:

        Title:

         

    	83

    	 

    

Exhibit A

Partners’ Contributions and Partnership Interests

 

	
        Name and
        Address of Partner
	
        Type of
        Interest
	
        Capital

        Contribution
	
        Number of

        Partnership Units
	
        Percentage
        Interest

	American Realty Capital 

Global Trust, Inc.

405 Park Avenue

New York, New York 10022	General Partnership Interest	$200,000	22,222	100%
	American Realty Capital 

Global Special Limited Partnership, LLC

405 Park Avenue

New York, New York 10022	Special Limited Partnership Interest	None	Not applicable	Not applicable

    	A-1

    	 

    

Exhibit B

 

Allocations

 

For purposes of this Exhibit B, the term “Partner”
shall include the Special Limited Partner.

 

1.                 
Allocations.

 

(a)               
Allocations of Net Income and Net Loss. Except as otherwise provided in this Agreement, after giving effect
to the special allocations in subparagraph 1(c) and paragraph 2, Net Income, Net Loss and, to the extent necessary, individual
items of income, gain, loss or deduction, of the Partnership for each fiscal year or other applicable period of the Partnership
shall be allocated among the General Partner and Limited Partners in accordance with their respective Percentage Interests.

 

(b)              
Allocations of Net Property Gain and Net Property Loss. Except as otherwise provided in this Agreement, after
giving effect to the special allocations in subparagraphs 1(c) and paragraph 2, Net Property Gain, Net Property Loss and, to the
extent necessary, individual items of income, gain, credit, loss and deduction comprising Net Property Gain and Net Property Loss
of the Partnership for each fiscal year or other applicable period shall be allocated among the Partners in a manner determined
in the reasonable discretion of the General Partner that will, as nearly as possible cause the Capital Account balance of each
Partner at the end of such fiscal year or other applicable period to equal (i) the amount of the distributions that would be made
to such Partner pursuant to Section 5.1(b) of the Agreement if the Partnership were dissolved, its affairs wound up and its assets
were sold for cash equal to their Gross Asset Value, taking into account any adjustments thereto for such period, all Partnership
liabilities were satisfied in full in cash according to their terms (limited with respect to each nonrecourse liability to the
Gross Asset Value of the assets securing such liability), and Net Sales Proceeds (after satisfaction of such liabilities) were
distributed in full in accordance with Section 5.1(b) to the Partners immediately after making such allocations, minus (ii) the
sum of such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any
and without duplication, that the Partner would be obligated to contribute to the capital of the Partnership, all computed immediately
prior to the hypothetical sale of assets.

 

(c)               
Special Allocations.

 

(i)                
General Partner Gross Income Allocation. After giving effect to the special allocations in paragraph 2 but prior
to any allocations under subparagraphs 1(a) or 1(b), there shall be specially allocated to the General Partner an amount of (i) first,
items of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period
in an amount equal to the excess, if any, of (A) the cumulative distributions made to the General Partner under Section 7.3(b)
of the Agreement, other than distributions which would properly be treated as “guaranteed payments” or which are attributable
to the reimbursement of expenses which would properly be either deductible by the Partnership or added to the tax basis of any
Partnership asset, over (B) the cumulative allocations of Partnership income and gain to the General Partner under this subparagraph
1(c)(i).

 

    	B-1

    	 

    

(ii)              
 Special Allocations Regarding Class B Units. After giving effect to the special allocations in subparagraph 1(c)(i)
and paragraph 2 but prior to any allocations under subparagraphs 1(a) or 1(b), Net Property Gain and Liquidating Gain and, to the
extent necessary, individual items of income and gain comprising Net Property Gain and Liquidating Gain of the Partnership shall
be allocated to the holders of Class B Units until their Economic Capital Account Balances are equal to (A) the OP Unit Economic
Balance, multiplied by (B) the number of their Class B Units; provided, that no such Net Property Gain or Liquidating
Gain or individual items of income and gain comprising Net Property Gain or Liquidating Gain will be allocated with respect to
any particular Class B Unit unless and to the extent that the OP Unit Economic Balance exceeds the OP Unit Economic Balance in
existence at the time such Class B Unit was issued. The “Economic Capital Account Balances” of the Class B Unit
holders will be equal to their Capital Account balances to the extent attributable to their ownership of Class B Units. The “OP
Unit Economic Balance” shall mean (Y) the aggregate Capital Account balance attributable to the OP Units outstanding,
plus the amount of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to the ownership
of OP Units and computed on a hypothetical basis after taking into account all allocations through the date on which any allocation
is made under this subparagraph 1(c)(ii), divided by (Z) the number of OP Units outstanding. Any allocations made pursuant
to the first sentence of this subparagraph 1(c)(ii) shall be made among the holders of Class B Units in proportion to the amounts
required to be allocated to each under this subparagraph 1(c)(ii). The parties agree that the intent of this subparagraph 1(c)(ii)
is to make the Capital Account balance associated with each Class B Unit to be economically equivalent to the Capital Account balance
associated with the OP Units outstanding (on a per-Unit basis), but only if and to the extent that the Capital Account balance
associated with the OP Units outstanding, without regard to the allocations under this subparagraph 1(c)(ii), has increased on
a per-Unit basis since the issuance of the relevant Class B Unit. Any remaining Net Property Gain or Liquidating Gain not allocated
pursuant to this subparagraph 1(c)(ii) shall be included in the calculation of Net Income, Net Loss, Net Property Gain and Net
Property Loss and will be allocated pursuant to subparagraphs 1(a) and 1(b).

 

(iii)            
Special Allocations Regarding the Special Limited Partner Interest. After giving effect to the special allocations
in subparagraphs 1(c)(i) and 1(c)(ii) and paragraph 2 but prior to any allocations under subparagraph 1(a) and 1(b), Net Property
Gain and Liquidating Gain and, to the extent necessary, individual items of income and gain comprising Net Property Gain and Liquidating
Gain of the Partnership shall be allocated to the Special Limited Partner until the Special Limited Partner has received aggregate
allocations of income for all fiscal years equal to the aggregate amount of distributions the Special Limited Partner is entitled
to receive or has received with respect to the Special Limited Partner Interest for such fiscal year and all prior fiscal years.
Notwithstanding the foregoing, if the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant
to the Partnership’s obligation under a Listing Note or a Termination Amount, Liquidating Gain shall be allocated to the
Special Limited Partner until the Special Limited Partner has received aggregate allocations equal to the aggregate amount of distributions
the Special Limited Partner is entitled to receive pursuant to such Listing Note or Termination Amount.

 

    	B-2

    	 

    

2.              Regulatory Allocations. Notwithstanding any provisions of paragraph 1 of this Exhibit B, the following
special allocations shall be made.

 

(a)               
Minimum Gain Chargeback (Nonrecourse Liabilities). Except as otherwise provided in Section 1.704-2(f) of the
Regulations, if there is a net decrease in Partnership Minimum Gain for any Partnership fiscal year, each Partner shall be specially
allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s
share of the net decrease in Partnership Minimum Gain to the extent required by Section 1.704-2(f) of the Regulations. The items
to be so allocated shall be determined in accordance with Sections 1.704-2(f) and (i) of the Regulations. This subparagraph 2(a)
is intended to comply with the minimum gain chargeback requirement in said section of the Regulations and shall be interpreted
consistently therewith. Allocations pursuant to this subparagraph 2(a) shall be made in proportion to the respective amounts required
to be allocated to each Partner pursuant hereto.

 

(b)              
Partner Minimum Gain Chargeback. Except as otherwise provided in Section 1.704-2(i)(4) of the Regulations,
if there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any fiscal year, each Partner who has a share of the
Partner Nonrecourse Debt Minimum Gain, determined in accordance with Section 1.704-2(i)(5) of the Regulations, shall be specially
allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to that Partner’s
share of the net decrease in the Partner Nonrecourse Debt Minimum Gain to the extent and in the manner required by Section 1.704-2(i)
of the Regulations. The items to be so allocated shall be determined in accordance with Sections 1.704-2(i)(4) and (j)(2)
of the Regulations. This subparagraph 2(b) is intended to comply with the minimum gain chargeback requirement with respect to Partner
Nonrecourse Debt contained in said section of the Regulations and shall be interpreted consistently therewith. Allocations pursuant
to this subparagraph 2(b) shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant
hereto.

 

(c)               
Qualified Income Offset. If a Partner unexpectedly receives any adjustments, allocations or distributions
described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations, and such Partner has an Adjusted Capital Account
Deficit, items of Partnership income (including gross income) and gain shall be specially allocated to such Partner in an amount
and manner sufficient to eliminate the Adjusted Capital Account Deficit as quickly as possible as required by the Regulations.
This subparagraph 2(c) is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of
the Regulations and shall be interpreted consistently therewith.

 

(d)              
Nonrecourse Deductions. Nonrecourse Deductions for any fiscal year or other applicable period shall be allocated
to the Partners in accordance with their respective Percentage Interests.

 

(e)               
Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any fiscal year or other applicable period
with respect to a Partner Nonrecourse Debt shall be specially allocated to the Partner that bears the economic risk of loss for
such Partner Nonrecourse Debt (as determined under Sections 1.704-2(b)(4) and 1.704-2(i)(1) of the Regulations).

 

    	B-3

    	 

    

(f)               
 Section 754 Adjustment. To the extent an adjustment to the adjusted tax basis of any asset of the Partnership
pursuant to Section 734(b) of the Code or Section 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the
Regulations, to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall
be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis)
and such gain or loss shall be specially allocated among the Partners in a manner consistent with the manner in which each of their
respective Capital Accounts are required to be adjusted pursuant to such section of the Regulations.

 

(g)              
Gross Income Allocation. If any Partner has an Adjusted Capital Account Deficit at the end of any fiscal year
or other applicable period which is in excess of the amount such Partner is obligated to restore pursuant to the penultimate sentences
of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations, such Partner shall be specially allocated items of Partnership
income (including gross income) and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant
to this subparagraph 2(g) shall be made if and only to the extent that such Partner would have an Adjusted Capital Account Deficit
in excess of such amount after all other allocations provided for under this Agreement have been tentatively made as if subparagraph
2(c) and this subparagraph 2(g) were not in this Agreement.

 

3.                 
Curative Allocations. The General Partner is authorized to offset all Regulatory Allocations either with other
Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss, or deduction pursuant to this
paragraph 3. Therefore, notwithstanding any other provision of this Exhibit B (other than the Regulatory Allocations and Tax Allocations),
the General Partner shall make such offsetting allocations of Partnership income, gain, loss or deduction in whatever manner the
General Partner determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account
balance is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations
were not part of this Agreement.

 

4.                 
Tax Allocations.

 

(a)               
Items of Income or Loss. Except as is otherwise provided in this Exhibit B, an allocation of Partnership
Net Income, Net Loss, Net Property Gain, Net Property Loss or Liquidating Gain to a Partner shall be treated as an allocation to
such Partner of the same share of each item of income, gain, loss, deduction and item of tax-exempt income or Section 705(a)(2)(B)
expenditure (or item treated as such expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) (“Tax Items”)
that is taken into account in computing Net Income, Net Loss, Net Property Gain, Net Property Loss or Liquidating Gain.

 

(b)              
Section 1245/1250 Recapture. Subject to subparagraph 4(c) below, if any portion of gain from the sale of Partnership
assets is treated as gain which is ordinary income by virtue of the application of Sections 1245 or 1250 of the Code or is gain
described in Section 1(h)(1)(D) of the Code (“Affected Gain”), then such Affected Gain shall be allocated among
the Partners in the same proportion that the depreciation and amortization deductions giving rise to the Affected Gain were allocated.
This subparagraph 4(b) shall not alter the amount of Net Income, Net Property Gain or Liquidating Gain (or items thereof) allocated
among the Partners, but merely the character of such Net Income, Net Property Gain or Liquidating Gain (or items

 

    	B-4

    	 

    

thereof). For purposes hereof, in order to determine the proportionate
allocations of depreciation and amortization deductions for each fiscal year or other applicable period, such deductions shall
be deemed allocated on the same basis as Net Income, Net Loss, Net Property Gain, Net Property Loss and Liquidating Gain for such
respective period.

 

(c)               
Precontribution Gain, Revaluations. With respect to any Contributed Property, the Partnership shall use any
permissible method contained in the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in
its sole discretion, to take into account any variation between the adjusted basis of such asset and the fair market value of such
asset as of the time of the contribution (“Precontribution Gain”). Each Partner hereby agrees to report income,
gain, loss and deduction on such Partner’s federal income tax return in a manner consistent with the method used by the Partnership.
If any asset has a Gross Asset Value which is different from the Partnership’s adjusted basis for such asset for federal
income tax purposes because the Partnership has revalued such asset pursuant to Section 1.704-1(b)(2)(iv)(f) of the Regulations,
the allocations of Tax Items shall be made in accordance with the principles of Section 704(c) of the Code and the Regulations
and the methods of allocation promulgated thereunder. The intent of this subparagraph 4(c) is that each Partner who contributed
to the capital of the Partnership a Contributed Property will bear, through reduced allocations of depreciation, increased allocations
of gain or other items, the tax detriments associated with any Precontribution Gain. This subparagraph 4(c) is to be interpreted
consistently with such intent.

 

(d)              
Excess Nonrecourse Liability Safe Harbor. Pursuant to Section 1.752-3(a)(3) of the Regulations, solely
for purposes of determining each Partner’s proportionate share of the “excess nonrecourse liabilities” of the
Partnership (as defined in Section 1.752-3(a)(3) of the Regulations), the Partners’ respective interests in Partnership profits
shall be determined under any permissible method reasonably determined by the General Partner; provided, however, that each
Partner who has contributed an asset to the Partnership shall be allocated, to the extent possible, a share of “excess nonrecourse
liabilities” of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which
is at least equal to the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the
“Liability Shortfall”). If there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an
amount of nonrecourse liabilities equal to the Liability Shortfall, then an amount of nonrecourse liabilities in proportion to,
and to the extent of, the Liability Shortfall shall be allocated to each Partner.

 

(e)               
References to Regulations. Any reference in this Exhibit B or the Agreement to a provision of proposed and/or
temporary Regulations shall, if such provision is modified or renumbered, be deemed to refer to the successor provision as so modified
or renumbered, but only to the extent such successor provision applies to the Partnership under the effective date rules applicable
to such successor provision.)

 

(f)               
Successor Partners. For purposes of this Exhibit B, a transferee of a Partnership Interest shall be deemed
to have been allocated the Net Income, Net Loss, Net Property Gain, Net Property Loss and other items of Partnership income, gain,
loss, deduction and credit allocable to the transferred Partnership Interest that previously have been allocated to the transferor
Partner pursuant to this Agreement.

 

 

    	B-5

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