Document:

Exhibit 10.3

THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.  NOTWITHSTANDING THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.  

      $2,000,000.00
Date: September 11, 2021

CLEARONE, INC.
AMENDED AND RESTATED PROMISSORY NOTE

 

FOR VALUE RECEIVED, CLEARONE, INC., a Delaware corporation (the “Company”), hereby unconditionally promises to pay to the order of Edward D. Bagley or his registered assigns (the “Holder”), the principal sum of Two Million Dollars $(2,000,000.00), on the earlier to occur of (i) the second business day following the date on which the Company receives its U.S. federal income tax return refund payment from the U.S. Internal Revenue Service, or (ii) January 3, 2022 (the “Maturity Date”), and to pay interest to the Holder on the then outstanding principal amount of this Note in accordance with the provisions hereof.  In addition, the Company shall pay to the order of the Holder interest on any principal, interest or other amount payable hereunder that is not paid in full when due (whether at the time of any stated interest or principal payment date, at maturity or by prepayment, acceleration or declaration or otherwise) for the period from and including the due date of such payment to but excluding the date the same is paid in full, at a rate per annum equal to five percent (5%) above the Interest Rate (as defined herein)(but in no event in excess of the maximum rate permitted under applicable law) (the “Default Rate”). 

Interest payable under this Note shall be computed on the basis of a year of 360 days and actual days elapsed (including the first day but excluding the last day) occurring in the period for which interest is payable. 

Payments of principal and interest shall be made in lawful money of the United States of America to the Holder at its address as provided on the signature page hereto or by wire transfer to such account specified from time to time by the Holder hereof for such purpose as provided in Section 12.

 

1.                   Definitions.  In addition to the terms defined elsewhere in this Note, the following terms have the meanings indicated:

 “Interest Rate” means a fixed annual rate of eight percent (8.0%).

 “Original Issue Date” means July 2, 2021. 

  Principal and Interest.

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(a)            The Company shall pay interest to the Holder on the then outstanding principal amount of this Note at a fixed rate per annum equal to the Interest Rate.  Interest shall be payable monthly in arrears in cash on the last day of each month, except if such day is not a Business Day in which case such interest shall be payable on the next succeeding Business Day (each, an “Interest Payment Date”).  The first Interest Payment Date shall be July 31, 2021 and shall be pro-rated for the number of days elapsed from the Original Issue Date through July 31, 2021.   Upon conversion of any portion of the principal amount of this Note into Common Stock in accordance with Section 6 (whether pursuant to Section 6(a) or 6(b)), the Company shall pay to the Holder, in cash, the accrued interest with respect to the principal amount of this Note so converted by no later than the second (2nd) Business Day following the applicable Conversion Date. 

(b)            On each Payment Date, the Company shall make a periodic cash amortization payment in respect of the principal balance of the Notes in accordance with Section 3.2(a)(ii) of the Purchase Agreement.

(c)            The Company shall have the right to prepay the Notes, from time to time, in cash following the one year anniversary of the Original Issue Date in accordance with Section 3.2(b) of the Purchase Agreement (including the payment of the prepayment premium specified therein).

(d)            The Company is obligated to prepay all or any portion of the Notes upon the occurrence of certain events as specified in, and in accordance with, Section 3.2(c) of the Purchase Agreement, including, without limitation, the payment of the premium specified therein.  The prepayment of all or any portion of the Notes in accordance with Sections 3.2(b) and 3.2(c) of the Purchase Agreement shall be allocated in accordance with Section 3.3 of the Purchase Agreement.

(e)            Except as expressly provided in Sections 3.2(a)(ii), 3.2(b) and 3.2(c) of the Purchase Agreement and except as expressly provided in this Note, the Note may not be prepaid in whole or in part absent the written consent of the Holder.

2.                   Ranking and Covenants.

(a)            (i) No Indebtedness of the Company or any Subsidiary shall be senior to or on a parity with the Notes in right of payment, whether with respect to interest, damages or upon liquidation or dissolution or otherwise and (ii) the Company will not, and will not permit any Subsidiary to, directly or indirectly, enter into, create, incur, assume or suffer to exist any Indebtedness of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom, except to the extent expressly permitted by, and subject to any approval required under, the Note Documents.  

(b)            The covenants set forth in the Purchase Agreement (including Articles 8 and 9 of the Purchase Agreement and the affirmative and negative covenants set forth therein) are incorporated by reference herein and are for the benefit of the holders of the Notes.  The covenants set forth in Articles 8 and 9 of the Purchase Agreement may only be amended or waived by the written consent of the Holder.

(c)            The Company covenants that it will at all times reserve and keep available out of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Underlying Shares as required under the Notes and Warrants, the number of Underlying Shares which are then issuable and deliverable upon the conversion of (and otherwise in respect of) each Note (taking into account the adjustments set forth in Section 10) and exercise of the Warrants (without giving effect to any limitations set forth therein), free from preemptive rights or any other contingent purchase rights of any other Person.  The Company covenants that all Underlying Shares so issuable and deliverable shall, upon issuance in accordance with the terms of the Notes and/or Warrants, be duly and validly authorized and issued and fully paid and nonassessable.

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3.                   Registration of Notes.  The Company shall register the Notes upon records to be maintained by the Company for that purpose (the “Note Register”) in the name of each record holder thereof from time to time.  The Company may deem and treat the registered Holder of this Note as the absolute owner hereof for the purpose of any conversion hereof or any payment of interest or principal hereon, and for all other purposes, absent actual notice to the contrary.

4.                   Registration of Transfers and Exchanges.  Subject to compliance with applicable federal and state securities laws, this Note and all rights hereunder are transferable in whole or in part upon the books of the Company by the Holder hereof; provided, however, that the transferee shall agree in writing to be bound by the terms and subject to the conditions of this Note, the Purchase Agreement and the other Note Documents to which the transferring Holder is a party.  The Company shall register the transfer of any portion of this Note in the Note Register upon surrender of this Note to the Company at its address for notice set forth herein.  Upon any such registration or transfer, a new Note, in substantially the form of this Note (any such new Note, a “New Note”), evidencing the portion of this Note so transferred shall be issued to the transferee and a New Note evidencing the remaining portion of this Note not so transferred, if any, shall be issued to the transferring Holder.  The acceptance of the New Note by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Note.  This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.  No service charge or other fee will be imposed in connection with any such registration of transfer or exchange.

5.                   Conversion.

(a)            At the Option of the Holder.  All or any portion of this Note shall be convertible into shares of Common Stock, at the option of the Holder, at any time and from time to time from and after the Original Issue Date.  The number of Underlying Shares issuable upon any conversion hereunder shall equal the outstanding principal amount of this Note to be converted divided by the Conversion Price on the Conversion Date (and any accrued interest on the principal amount of this Note that is being converted shall be paid, in cash, by the Company by no later than the second (2) Business Day following the Conversion Date).  The Holder shall effect conversions under this Section 6(a) by delivering to the Company a Conversion Notice together with a schedule in the form of Schedule 2 attached hereto (the “Conversion Schedule”).  If the Holder is converting less than all of the principal amount of this Note, the Company shall honor such conversion to the extent permissible hereunder and shall promptly deliver to the Holder a Conversion Schedule indicating the principal amount which has not been converted.  Any conversion of this Note (whether pursuant to Section 6(a) or 6(b)) in excess of the monthly principal amortization payment required to be paid on the next Payment Date shall, at the election of the Holder, be credited and applied against the next subsequent monthly principal amortization payment or any other monthly principal amortization payment, as designated by the Holder in its sole discretion.     

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(b)            At the Option of the Company.  If at any time (i) the VWAP exceeds 200% of the Conversion Price then in effect for at least ninety (90) consecutive Trading Days (such ninety (90) consecutive Trading Day period that commences after the first anniversary of the Closing Date, the “Mandatory Conversion Measuring Period”) and the VWAP continues to exceed 200% of the Conversion Price for each Trading Day following the Mandatory Conversion Measuring Period through and including the Conversion Date, and (ii) the Equity Conditions are satisfied for each day of such Mandatory Conversion Measuring Period and continue to be satisfied for each day following the Mandatory Conversion Measuring Period through and including the Conversion Date, then the Company may elect to require the Holder to convert (a “Mandatory Conversion”) a portion of the outstanding principal amount of this Note, up to its entirety, into Common Stock by delivering an irrevocable written notice of such election to the holders of the Notes within five (5) Trading Days following the end of such Mandatory Conversion Measuring Period (the “Mandatory Conversion Notice”).  For purposes of example only, if the Conversion Price is $1.00, then the VWAP would need to be greater than $2.00 for each Trading Day in the relevant period for the condition set forth in Section 6(b)(i) to be satisfied.  The Mandatory Conversion Notice shall state: (i) the Conversion Date applicable to such Mandatory Conversion, which shall be the tenth (10th) Trading Day after the delivery of such Mandatory Conversion Notice; (ii) the aggregate principal amount of the Notes to be converted pursuant to the Mandatory Conversion; (iii) the number of shares of Common Stock to be issued to the Holder upon such Mandatory Conversion (taking into account the limitations set forth in Section 6(c) hereof); and (iv) that the Mandatory Conversion conditions (including the Equity Conditions) have been satisfied at all times during the Mandatory Conversion Measuring Period and through and including the delivery of the Mandatory Conversion Notice.   The principal amount of the Notes convertible as provided in Section 6(b) of the Notes shall be limited to a number of shares of Common Stock equal to the Volume Limit as of the Conversion Date applicable to such Mandatory Conversion.  The principal amount of this Note convertible as provided in this Section 6(b) shall be limited by Section 6(c).  The tenth (10th) Trading Day after the delivery of such Mandatory Conversion Notice will be the “Conversion Date” for such Mandatory Conversion.  If any of the Mandatory Conversion conditions (including any of the Equity Conditions) do not continue to be satisfied after the delivery by the Company of the Mandatory Conversion Notice and prior to the Conversion Date, the Company shall promptly deliver to the holders of the Notes a notice of such failure and each holder shall have the right, in its sole discretion, to either (I) waive such failure, in which case the Company shall complete the Mandatory Conversion in accordance with this Section 6(b), or (II) elect that the conversion of such holder’s Notes pursuant to the Mandatory Conversion not occur.  Notwithstanding the foregoing, the Company may effect only one (1) Mandatory Conversion during any one hundred fifty (150) consecutive Trading Days.  If the Holder delivers a Conversion Notice following its receipt of the Mandatory Conversion Notice and prior to the Conversion Date applicable to such Mandatory Conversion, the principal amount of the Notes converted by the Holder as part of such Conversion Notice shall reduce the principal amount of the Holder’s Note to be converted on the Conversion Date applicable to such Mandatory Conversion, unless the Holder elects otherwise in its Conversion Notice.  

 If the Company elects to cause a Mandatory Conversion of any portion of this Note pursuant to this Section 6(b), then it must simultaneously take the same action in the same proportion with respect to all other Notes.  If the Company elects a Mandatory Conversion pursuant to Section 6(b) of the Notes with respect to less than the principal amount of all of the Notes then outstanding, then the Company shall require conversion of the Notes from each holder of the Notes in an amount equal to the product of (i) the aggregate principal amount of the Notes which the Company has elected to cause to be converted pursuant to Section 6(b) of the Notes, multiplied by (ii) a fraction, the numerator of which is the principal amount of such holder’s Note and the denominator of which is the principal amount of the Notes then outstanding. 

 

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6.                   Mechanics of Conversion; Restrictive Legends.

(a)            Upon conversion of this Note, the Company shall promptly (but in no event later than three (3) Trading Days after the Conversion Date) issue or cause to be issued and cause to be delivered to or upon the written order of the Holder and in such name or names as the Holder may designate a certificate for the Underlying Shares issuable upon such conversion (or the Holder or its designee shall receive a credit for such Underlying Shares issuable upon such conversion to its balance account with DTC through its Deposit Withdrawal Agent Commission System).  The Holder, or any Person so designated by the Holder to receive Underlying Shares, shall be deemed to have become the holder of record of such Underlying Shares as of the Conversion Date.  The Company shall, upon request of the Holder, use its reasonable best efforts to deliver the Underlying Shares hereunder electronically through The Depository Trust Company (the “DTC”), and to credit the number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with the DTC through its Deposit Withdrawal Agent Commission System.  If the Company is not presently eligible to deliver its Common Stock electronically through DTC, the Company shall use its best efforts to take all action necessary to become so eligible promptly following the Closing Date. 

(b)            The Holder shall not be required to deliver the original Note in order to effect a conversion hereunder.  Execution and delivery of the Conversion Notice shall have the same effect as cancellation of the original Note and issuance of a New Note representing the remaining outstanding principal amount; provided that the cancellation of the original Note shall not be deemed effective until a certificate for such Underlying Shares is delivered to the Holder, or the Holder or its designee receives a credit for such Underlying Shares to its balance account with DTC through its Deposit Withdrawal Agent Commission System.  Upon surrender of this Note following one or more partial conversions, the Company shall promptly deliver to the Holder a New Note representing the remaining outstanding principal amount.  The Holder shall deliver the original Note to the Company within thirty (30) days after the conversion of the entire Note hereunder, provided, that the Holder’s failure to so deliver the original Note shall not affect the validity of such conversion or any of the Company’s obligations under this Note, and the Company’s sole remedy for the Holder’s failure to deliver the original Note shall be to obtain an affidavit of lost note from the Holder.

(c)            The Company’s obligations to issue and deliver Underlying Shares upon conversion of this Note in accordance with the terms and subject to the conditions hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any set-off, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Underlying Shares (other than such limitations contemplated by this Note).

(d)            If by the fifth (5th) Trading Day after a Conversion Date the Company fails to deliver or cause to be delivered to the Holder such Underlying Shares in such amounts and in the manner required pursuant to Section 7(a), then the Holder will have the right to rescind such conversion (including any Mandatory Conversion).

(e)            If by the third (3rd) Trading Day after a Conversion Date the Company fails to deliver or cause to be delivered to the Holder such Underlying Shares in such amounts and in the manner required pursuant to Section 7(a), and if after such third (3rd) Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Underlying Shares which the Holder anticipated receiving upon such conversion (a “Buy-In”), then the Company shall, at the option of the Holder (in its sole discretion), either (i) pay cash to the Holder (in addition to any other remedies available to or elected by the Holder) in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Price on the date of the event giving rise to the Company’s obligation to deliver such certificate.  

(f)             Each certificate for Underlying Shares shall bear a restrictive legend only if (i) there is not then an effective Registration Statement covering the resale of the Underlying Shares and naming the Holder as a selling stockholder thereunder and (ii) the Underlying Shares are not freely transferable by the Holder without volume restrictions pursuant to Rule 144; provided, that, no such restrictive legend shall be required if, in the opinion of counsel for the Holder or the Company, the securities represented thereby are not, at such time, required by law to bear such legend. 

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7.                   Events of Default.

(a)            At any time or times following the occurrence of an Event of Default, the Holder shall have the rights and remedies set forth in Article 10 of the Purchase Agreement, including the right of acceleration set forth in Section 10.2 of the Purchase Agreement.   

(b)            If this Note is accelerated in accordance with Article 10 of the Purchase Agreement and is not redeemed, in cash, in accordance with, and for the payment required under, Section 10.2 of the Purchase Agreement (the “EofD Redemption Amount”), then, in addition to all other remedies that may be available, the Holder may require the Company to pay all or any portion of the EofD Redemption Amount from time to time in shares of Common Stock of the Company as specified in one or more written notices from the Holder to the Company, with the number of such shares of Common Stock to be issued pursuant to any written notice from the Holder to the Company to be determined by dividing the EofD Redemption Amount to be paid in shares of Common Stock, as specified by the Holder in such written notice to the Company, by 93% of the lower of (y) the Market Price as of the date such EofD Redemption Amount became due and payable to the Holder and (z) the Market Price as of the date of such written notice by the Holder to the Company.  In the event the Holder exercises its rights under this paragraph, the Company agrees promptly to take all actions as may be required, including without limitation seeking to obtain stockholder approval if required, in order to comply with its obligations under this paragraph.  The term “Market Price” means, with respect to any date of determination, the arithmetic average of the VWAP for each of the twenty (20) consecutive Trading Days prior to such date of determination.

8.                   Charges, Taxes and Expenses.  Issuance of certificates for Underlying Shares upon conversion of (or otherwise in respect of) this Note shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Underlying Shares or Notes in a name other than that of the Holder.  The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Note or receiving Underlying Shares in respect hereof.

9.                   Certain Adjustments.  The Conversion Price is subject to adjustment from time to time as set forth in this Section 10.

(a)            Stock Dividends and Splits.  If the Company, at any time while this Note is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Any adjustment made pursuant to clause (i) of this Section 10(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this Section 10(a) shall become effective immediately after the effective date of such subdivision or combination.  

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(b)            Pro Rata Distributions.  If the Company, at any time while this Note is outstanding, distributes to all holders of Common Stock (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock described in Section 10(a)), (iii) rights or warrants to subscribe for or purchase any security, or (iv) cash or any other asset (in each case, “Distributed Property”), then the Company shall deliver to the Holder (on the effective date of such distribution), the Distributed Property that the Holder would have been entitled to receive in respect of the Underlying Shares for which this Note could have been converted immediately prior to the date on which holders of Common Stock became entitled to receive such Distributed Property.

(c)            Fundamental Changes.  If, at any time while this Note is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or more transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (iv) the Company effects any reorganization, reclassification or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock described in Section 10(a)), or (v) there is a Change of Control (each case in clauses (i) through (v) above, a “Fundamental Change”), then upon any subsequent conversion of this Note, the Holder shall have the right to receive (except to the extent previously distributed to the Holder pursuant to Section 10(b)), for each Underlying Share that would have been issuable upon such conversion absent such Fundamental Change), the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Change if it had been, immediately prior to such Fundamental Change, the holder of one share of Common Stock (the “Alternate Consideration”).  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Change, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Change.  In the event of a Fundamental Change, the Company or the successor or purchasing Person, as the case may be, shall execute with the Holder a written agreement providing that:

 (x)  this Note shall thereafter entitle the Holder to purchase the Alternate Consideration;

 

 (y) in the case of any such successor or purchasing Person, upon such consolidation, merger, statutory exchange, combination, sale or conveyance such successor or purchasing Person shall be jointly and severally liable with the Company for the performance of all of the Company’s obligations under this Note and the other Note Documents; and 

 

 (z) if registration or qualification is required under the 1934 Act or applicable state law for the public resale by the Holder of shares of stock and other securities so issuable upon exercise of this Note, such registration or qualification shall be completed prior to such reclassification, change, consolidation, merger, statutory exchange, combination or sale.  

 

If, in the case of any Fundamental Change, the Alternate Consideration includes shares of stock, other securities, other property or assets of a Person other than the Company or any such successor or purchasing Person, as the case may be, in such Fundamental Change, then such written agreement shall also be executed by such other Person and shall contain such additional provisions to protect the interests of the Holder as the Board of Directors of the Company shall reasonably consider necessary by reason of the foregoing.  At the Holder’s request, any successor to the Company or surviving Person in such Fundamental Change shall issue to the Holder a new Note consistent with the foregoing provisions and evidencing the Holder’s right to convert such Note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Change is effected shall include terms requiring any such successor or surviving Person to comply with the provisions of this Section 10(c) and ensuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Change. If any Fundamental Change constitutes or results in a Change of Control, then the Company (or any such successor or surviving entity) will purchase each Note (unless such Holder declines to accept such payment in accordance with Section 3.2(c)(v) of the Purchase Agreement) for a purchase price, payable in cash, equal to the greater of (x) the purchase price specified in Section 3.2(c)(i)(I) of the Purchase Agreement, and (y) the product of (i) Event Equity Value and (ii) the Underlying Shares issuable upon conversion of the principal amount of each Note, plus all accrued but unpaid interest on each Note. Any repurchase of the Notes in connection with a Fundamental Change shall be made in the order of priority set forth in Section 3.3 of the Purchase Agreement (provided, that, any repurchase or repayment that is allocated to the principal amount of the Notes shall be applied to the principal payments in reverse chronological order).  

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(d)            Calculations.  All calculations under this Section 10 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.  The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

(e)            Notice of Adjustments.  Upon the occurrence of each adjustment pursuant to this Section 10, the Company at its expense will promptly compute such adjustment in accordance with the terms hereof and prepare and deliver to the Holder a certificate describing in reasonable detail such adjustment and the transactions giving rise thereto, including all facts upon which such adjustment is based.

(f)             Notice of Corporate Events.  If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for a Fundamental Change or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the holders of the Notes a notice describing the material terms and conditions of such transaction, at least twenty (20) Trading Days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to ensure that the holders of the Notes are given the practical opportunity to convert the Notes prior to such time so as to participate in or vote with respect to such transaction. 

10.              No Fractional Shares.  The Company shall not issue or cause to be issued fractional Underlying Shares on conversion of this Note.  If any fraction of an Underlying Share would, except for the provisions of this Section 11, be issuable upon conversion of this Note, the number of Underlying Shares to be issued will be rounded up to the nearest whole share.

11.              Notices.  Any and all notices or other communications or deliveries hereunder (including any Conversion Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 12 prior to 5:00 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 12 on a day that is not a Trading Day or later than 5:00 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service specifying next Business Day delivery, or (iv) upon actual receipt by the party to whom such notice is required to be given, if by hand delivery.  The address and facsimile number of a party for such notices or communications shall be as set forth in the Purchase Agreement, unless changed by such party by two (2) Trading Days’ prior notice to the other party in accordance with this Section 12.

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12.              Miscellaneous.

(a)            This Note shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Subject to the restrictions on transfer set forth herein, this Note may be assigned by the Holder.  The Company shall not be permitted to assign this Note absent the prior written consent of the Holder.

(b)            Except as expressly set forth herein, nothing in this Note shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause under this Note.

(c)            THE COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS NOTE OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THE COMPANY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

(d)            This Note shall be governed by and construed under the law of the State of New York, without giving effect to the conflicts of law principles thereof.  The Company and, by accepting this Note, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Note and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Note.  The Company and, by accepting this Note, the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  The Company and, by accepting this Note, the Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

(e)            If action is instituted to collect on this Note, the Company promises to pay all reasonable costs and expenses, including reasonable attorney’s fees, incurred in connection with such action.  The Company shall pay the reasonable attorneys’ fees incurred by the Holder in connection with any amendment to, or waiver of, this Note or any other Note Document. 

(f)             In case any one or more of the provisions of this Note shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Note shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Note.

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(g)            In the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in this Note to a price (if not otherwise adjusted) shall be amended to appropriately account for such event.

(h)            This Note, together with the other Note Documents, constitutes the entire agreement of the parties with respect to the subject matter hereof.  No provision of this Note may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Holder or, in the case of a waiver, by the Holder.  Any waiver executed by the Holder shall be binding on the Company and all holders of the Notes.  No waiver of any default with respect to any provision, condition or requirement of this Note shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 

 (i) This Note is one of the Notes referred to in the Purchase Agreement and is secured by the Collateral described therein.  The Guaranty and Collateral Agreement grants the Collateral Agent, on behalf of the Holder and the other holders of the Notes, certain rights with respect to the Collateral upon an Event of Default.  The Subsidiaries have guaranteed the obligations of the Company under the Notes pursuant to the Guaranty and Collateral Agreement. 

 

(j) The Holder shall have no rights as a holder of Common Stock as a result of being a holder of this Note, except as required by law or rights expressly provided in this Note.

 

(k) This Amended and Restated Promissory Note amends, restates and supersedes the Promissory Note dated July 2, 2021 in the principal amount of $2,000,000.00 issued by the Company in favor of the Holder. 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

	
	
 

	
	
CLEARONE, INC.

	
	
 

	
	
 

	
	
By/s/ Zeynep Hakimoglu

	
	
Name: Zeynep Hakimoglu

	
	
Title: Chief Executive Officer

  

Acknowledged and Agreed to by:

Edward D. Bagley

/s/ Edward D. Bagley

	10Exhibit 4.8

   

SIXTH AMENDMENT TO

THE AGREEMENT OF LIMITED PARTNERSHIP

OF HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P.

 

Dated as of September [•], 2021

 

THIS SIXTH AMENDMENT TO THE AGREEMENT OF LIMITED
PARTNERSHIP OF HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P. (this “Amendment”), dated as of September [•], 2021,
is entered into by HEALTHCARE TRUST, INC., a Maryland corporation, as general partner (the “General Partner”) of HEALTHCARE
TRUST OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the “Partnership”), for itself and on behalf of
any limited partners of the Partnership. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given
to such terms in the Agreement of Limited Partnership of the Partnership entered into on February 14, 2013 (as now or hereafter amended,
restated, modified, supplemented or replaced, the “Partnership Agreement”).

 

WHEREAS, Section 4.3 of the Partnership
Agreement authorizes the General Partner to cause the Partnership to issue additional Partnership Interests 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;

 

WHEREAS, the General Partner has authorized
the issuance and sale of up to [●] shares of its [●]% Series B Cumulative Redeemable Perpetual Preferred Stock, par value
$0.01 per share (the “Series B Preferred Stock”), at a gross offering price of $25.00 per share of Series B Preferred
Stock and, in connection therewith, the General Partner, pursuant to Section 4.3 of the Partnership Agreement, is contributing the net
proceeds of such issuance and sale to the Partnership in exchange for, and is causing the Partnership to issue to the General Partner,
the Series B Preferred Units (as hereinafter defined); and

 

WHEREAS, pursuant to the authority granted
to the General Partner pursuant to Sections 4.3 and 14.1 of the Partnership Agreement, and as authorized by the unanimous written consent
of the offering committee of the board of directors of the General Partner, which has been delegated certain power and authority of the
board of directors of the General Partner, dated as of [●], the General Partner desires to amend the Partnership Agreement (i) to
set forth the designations, rights, powers, preferences and duties and other terms of the Series B Preferred Units, (ii) to issue the
Series B Preferred Units to the General Partner, and (iii) and to make certain other changes to the Partnership Agreement.

 

NOW, THEREFORE, in consideration of good
and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the General Partner hereby amends the Partnership
Agreement as follows:

 

1.             Article
I is hereby revised by adding the following new defined terms:

 

““Budget Act” means the Bipartisan
Budget Act of 2015.”

 

““Net Operating Income” means, for
each fiscal year or other applicable period, any net items of income and gain over loss, or deduction that are components of Net Income
or Net Loss, excluding any items that are taken into account in determining Net Property Gain or Net Property Loss, but only to the extent
that those items were not economically accrued as of the date that a Class B Unit was issued (i.e., Net Operating Income includes only
items that are not included in the Valuation Threshold).”

 

““Partnership Tax Audit Rules” means
Sections 6221 through 6241 of the Code, together with any guidance issued thereunder or successor provisions and any similar provisions
of state and local tax laws.

 

““Partnership Representative” has
the meaning set forth in Section 10.3(a).”

 

““Profits Interest Catch Up Distributions”
has the meaning set forth in Section 5.1(h)(iii).”

 

     

     

    

 

““Profits Interest Distribution Limitation”
has the meaning set forth in Section 5.1(h)(i).”

 

““Tax Matters Partner” means the
 “tax matters partner” as such term is defined in Section 6231(a)(7) of the Code as in effect prior to the Budget Act.”

 

““Valuation Threshold” means, in
respect of each Class B Unit, the total amount available for distribution under Section 5.1(a) or Section 5.1(b), including by operation
of Section 13.2, as of the date that Class B Unit was issued if the Partnership were to liquidate completely and, in connection with such
liquidation, (a) its assets were sold for cash equal to their respective fair market values, (b) all Partnership liabilities were satisfied
(limited with respect to each nonrecourse liability to the fair market value of the assets securing such liability), (c) each Partner
were to pay its 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, and (d) the net assets of the Partnership were distributed in accordance with Section 5.1 to the Partners immediately
after making such allocation; provided, however, that the Valuation Threshold in respect of a Partnership Unit shall not be less than
zero dollars ($0).”

 

2.             Article
I is hereby revised by adding the following sentence as the first sentence of the last paragraph of the defined term “Capital
Account:”

 

“In determining the amount of any liability for purposes
of clauses (a)(iii) and (b)(iii), there shall be taken into account Section 752(c) of the Code and any other applicable provisions of
the Code or Regulations.”

 

3.             Article
I is hereby revised by adding the following sentence as the last sentence of the defined term “Depreciation:”

 

“Notwithstanding the foregoing, if the remedial allocation
method described in Section 1.704-3(d) of the Regulations is used to take account of the difference between an asset’s Gross Asset
Value and its adjusted tax basis, Depreciation shall be determined in accordance with Section 1.704-3(d)(2) of the Regulations.”

 

4.             Article I is hereby revised by deleting clause (f) from the defined term “Net Income” or “Net Loss:”

 

5.             Article
I is hereby revised by replacing the defined term “Net Property Gain” or “Net Property Loss” in
its entirety with the following:

 

““Net Property Gain” or “Net
Property Loss” means, for each fiscal year or other applicable period, items of income, gain, loss or deduction that are components
of the Partnership’s Net Income or Net Loss for such year or period from Sales, including, but not limited to, the amount of any
net capital gain realized in connection with an 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).”

 

6.             Article
I is hereby revised by removing the defined term “Liquidating Gain” in its entirety, and Section 13.3 is hereby revised
to delete the references to “Liquidating Gain” contained therein.

 

7.             The last sentence of Article 1 is hereby revised by replacing it in its entirety with the following new sentence:

 

“Certain additional terms and phrases have the meanings
set forth in Exhibit B, Annex A and Annex B. In the event of any inconsistency or conflict between the terms and provisions set
forth in this Agreement (including, any amendments hereto) and the terms and provisions of Annex A and Annex B, the terms and provisions
of this Agreement (including, any amendments hereto) shall control.”

 

     

     

    

 

8.             Section 5.1(a) is hereby revised by replacing it in its entirety with the following new Section 5.1(a):

 

“(a)         Cash Available for Distribution. Subject
to the provisions of Article V and Sections 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 holding GP Units, OP Units and/or Class B Units who are Partners
on the applicable Partnership Record Date, as follows:

 

(i)                 
First, 100% to the General Partner in its capacity as the holder of Series A Preferred Units and Series B Preferred Units
until the aggregate amount distributed or set aside for payment under this Section 5.1(a)(i) and Section 5.1(b)(i) is equal to the sum
of (x) (1) the Series A Preferred Return, multiplied by (2) the number of Series A Preferred Units, plus, (y) (1) the Series B Preferred
Return, multiplied by (2) the number of Series B Preferred Units;

 

(ii)                
Thereafter, subject to Section 5.1(h), 100% to the Partners holding GP Units, OP Units and Class B Units, pro rata
and pari passu in proportion to their respective Percentage Interests.”

 

9.             Section 5.1(b) is hereby replaced in its entirety with the following new Section 5.1(b):

 

“(b)         Net Sales Proceeds. Subject to the provisions
of Article V and Sections 12.2(c) and 13.2, Net Sales Proceeds shall be distributed as follows:

 

(i)                 
First, to the extent that the Cash Available for Distribution distributed to the General Partner pursuant to Section 5.1(a)(i)
is less than the sum of (x) (1) the Series A Preferred Return, multiplied by (2) the number of Series A Preferred Units, plus, (y) (1)
the Series B Preferred Return, multiplied by (2) the number of Series B Preferred Units, 100% to the General Partner in its capacity as
the holder of Preferred Units until the aggregate amount distributed or set aside for payment under this Section 5(b)(i) and Section 5.1(a)(i)
is equal to that sum.

 

(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 the Net Investment Balance is zero;

 

(iii)               
Third, 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

 

(iv)              
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.”

 

10.           Section
5.1 is hereby further revised by inserting the following as new Subsection 5.1(h):

 

“(h) Limitation on Distributions on Class B Units.
It is the intention of the parties to this Agreement that distributions to any Partner in respect of its Class B Units shall be limited
to the extent necessary so that such Partnership Units constitute a profits interest for all U.S. federal income tax purposes as set forth
in Section 16.5. Accordingly, and notwithstanding anything to the contrary in this Agreement, a Partner’s entitlement to cumulative
distributions under Article V shall be appropriately limited so that the Class B Units qualify as profits interests.

 

(i)                  Profits
Interest Distribution Limitation. A Partner shall only participate in distributions under Article V in respect of any Class B
Unit to the extent that in respect of a distribution date, on the related Partnership Record Date, either (x) the Partnership has
Net Operating Income, or (y) the net value of the Partnership, plus any prior distributions under Section 5.1(b), equals or exceeds
the Valuation Threshold for that Class B Unit (the limitation on distributions described in this Section 5.1(h)(i), the
 “Profits Interest Distribution Limitation”).

 

     

     

    

 

(ii)                
Reallocation of Limited Distributions. Cash Available for Distribution or Net Sales Proceeds that otherwise would have been
distributed to a Limited Partner in respect of Class B Unit but for the Profits Interest Distribution Limitation shall, instead, be distributed
to the other Limited Partners in respect of other Partnership Units in accordance with Section 5.1(a) or Section 5.1(b)(i), respectively
(including by operation of Section 13.2), but solely to the extent that distributions in respect of those Partnership Units are not subject
to the Profits Interest Distribution Limitation.

 

(iii)               
Profits Interest Catch-Up Distributions. If one or more Class B Units had been subject to the Profits Interest Distribution
Limitation and, after taking into account the Profits Interest Distribution Limitation, such Partnership Units are no longer so limited,
then, prior to making any further distributions under Section 5.1(b) to any Persons who received distributions under Section 5.1(b) in
respect of those Class B Units, all distributions pursuant to Section 5.1(b) that otherwise would have been made to such Persons shall
instead be made to the Limited Partner(s) in respect of the Class B Units that were subject to the Profits Interest Distribution Limitation
until the aggregate amount distributed to each such Limited Partner under this Section 5.1(h)(iii) equals the aggregate amount that would
have been distributed to each such Limited Partner had such Limited Partner’s respective Class B Unit been issued with a Valuation
Threshold equal to zero (the “Profits Interest Catch-Up Distributions”), in proportion to their respective Profits
Interest Catch-Up Distributions.

 

(iv)              
Authority to Make Adjustments. The General Partner shall have the authority to make such adjustments to distributions pursuant
to Article V (and corresponding allocations under Section 6.1) as it determines in good faith are necessary to effectuate the intent of
this Section 5.1(h).”

 

11.           Section 10.2(a) is hereby revised by replacing it in its entirety with the following new Section 10.2(a):

 

“(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; provided,
however, that any elections or determinations required to be made by the Partnership Representative shall be made by the Partnership
Representative.”

 

12.           Section
10.3 is hereby revised by replacing it in its entirety with the following new Section 10.3:

 

“(a)         The General Partner shall be the Tax Matters
Partner of the Partnership for federal income tax purposes with respect to taxable periods ending on or before December 31, 2017. With
respect to all subsequent taxable periods, the General Partner shall be the partnership representative (the “Partnership Representative”)
for purposes of Section 6223 of the Code, shall select a “designated individual” on behalf of the Partnership (as contemplated
by the proposed Regulations under Section 6223 of the Code), as applicable, and shall represent the Partnership in any disputes, controversies,
or proceedings with the Internal Revenue Service or with any state, local or non-U.S. taxing authority. The Tax Matters Partner or the
Partnership Representative, as applicable, shall have the right to retain professional assistance in respect of any audit of the Partnership
by the Internal Revenue Service and all out-of-pocket expenses and fees incurred by the Tax Matters Partner or the Partnership Representative,
as applicable, on behalf of the Partnership in performing its duties as such shall constitute Partnership expenses. The Tax Matters Partner
or the Partnership Representative, as applicable, shall have the right and obligation to take all actions authorized and required, respectively,
by the Code for the Tax Matters Partner or the Partnership Representative, as applicable. Subject to the Partnership Tax Audit Rules:

 

     

     

    

 

(i)                 
 In the event the Tax Matters Partner receives notice of a final Partnership adjustment under Section 6223(a)(2) of the Code
(as in effect prior to the Budget Act), the Tax Matters Partner shall either (A) file a court petition for judicial review of such final
adjustment within the period provided under Section 6226(a) of the Code (as in effect prior to the Budget Act), a copy of which petition
shall be mailed to all Limited Partners and the Special Limited Partner on the date such petition is filed, or (B) mail a written notice
to all Limited Partners and the Special Limited Partner, within such period, that describes the Tax Matters Partner’s reasons for
determining not to file such a petition.

 

(ii)               
The Partnership Representative shall, subject to the provisions in this Section 10.3(a)(ii), be entitled to take such actions on
behalf of the Partnership in any and all proceedings with the Internal Revenue Service and any other such taxing authority as it reasonably
determines to be appropriate and any decision made by the Partnership Representative shall be binding on all Partners. The Partners agree
to take such actions as may be required to effect the General Partner’s designation as the Partnership Representative (and its selection
of any designated individual, as applicable), cooperate in good faith to timely provide information reasonably requested by the Partnership
Representative as needed to comply with the Partnership Tax Audit Rules, including, without limitation, to make (and take full advantage
of) any elections available to the Partnership or to determine whether any imputed underpayment amount may be modified pursuant to Section
6225(c) of the Code. The Partnership Representative shall have no liability arising out of its performance of its duties as the Partnership
Representative hereunder, and the Partnership shall indemnify, defend and hold the Partnership Representative harmless from and against
any loss, liability, damage, cost or expense (including reasonable attorneys’ fees and costs) sustained or incurred as a result
of its acting as Partnership Representative hereunder, provided that the foregoing shall not insulate the Partnership Representative from
liability for any action constituting fraud, gross negligence, misappropriate of funds or an intentional breach of this Agreement. The
provisions contained in this Section 10.3(a)(ii) and Section 10.5 shall survive the liquidation, termination and dissolution of the Partnership
and the withdrawal of any Partner or the transfer of any Partner’s interest in the Partnership. With respect to all taxable years
to which the Partnership Tax Audit Rules apply to the Partnership, the Partnership Representative may, to the extent permitted by law,
make an election under Code Section 6226 with respect to any imputed underpayment of the Partnership, and furnish any adjustment statements
to the Partners and to the Internal Revenue Service as required under the Partnership Tax Audit Rules. In addition to all other remedies
that the Partnership may be entitled to pursue, in the event that a Limited Partner fails to pay any amount when due pursuant to this
Section 10.3(a), the Partnership may thereafter, at any time prior to the Partner’s payment in full of such amount (plus any accrued
interest), elect, if applicable, to redeem Partnership Units held by such Partner, with the valuation date being the date the Partnership
elects to redeem such Partnership Units, in an amount sufficient to pay any or all of such amount. In the event that proceeds to the Partnership
are reduced on account of taxes withheld at the source or the Partnership incurs a liability and such taxes (or a portion thereof) are
imposed on or with respect to one or more, but not all, of the Partners or if the rate of tax varies depending on the attributes of specific
Partners or to whom the corresponding income is allocated, the amount of the reduction in the Partnership’s net proceeds shall be
borne by and apportioned among the relevant Partners and treated as if it were paid by the Partnership as a withholding obligation with
respect to such Partners in accordance with such apportionment.

 

(b)           The Tax Matters
Partner and Partnership Representative shall receive no compensation for their services.

 

(c)            Nothing herein
shall be construed to restrict the Partnership from engaging an accounting firm to assist the Tax Matters Partner or Partnership Representative
in discharging their duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable.

 

(d)           In the event
that the General Partner shall be removed or replaced pursuant to any provision of this Agreement, the successor to the General Partner
shall assume the obligations of this Section 10.3.”

 

     

     

    

 

13.           Section 10.5(a) is hereby revised by replacing it in its entirety with the following new Section 10.5(a):

 

“(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, allocable or attributable to such Limited Partner or the Special Limited
Partner pursuant to this Agreement, including, but not limited to, (i) any withholding taxes required to be withheld or paid by the Partnership,
including, but not limited to, withholding taxes pursuant to Sections 1441, 1442, 1445, or 1446 of the Code, (ii) amounts for which the
Partnership is liable under Section 1446(f)(4) of the Code, or (iii) any amount attributable to any or actual imputed underpayment of
taxes under the Partnership Tax Audit Rules imposed on such Partner’s share of the Partnership’s gross or net income and gains
(or items thereof), and in each case, any interest, penalties or additions to tax thereof.”

 

14.          
Section 13.2(a) is hereby revised by inserting the following as new Subsection 13.2(a)(iv):

 

“(iv)      For
purposes of Section 13.2(a)(iii), the Capital Account of each Partner (including the Special Limited Partner) shall be determined after
making all adjustments in accordance with Sections 5.1 and Exhibit B resulting from Partnership operations and from all sales
and dispositions of all or any part of the Partnership’s assets.”

 

15.           Subparagraphs
1(c)(ii) through (v) of Exhibit B are hereby revised by replacing them in their entirety with the following new subparagraphs 1(c)(ii)
through (v):

 

“(ii)      Special Allocations Regarding Class B Units.
After giving effect to the special allocations in subparagraph 1(c)(i) and Regulatory Allocations in paragraph 2 but prior to any allocations
under subparagraph 1(a), Net Property Gain and, to the extent necessary, individual items of income and gain comprising Net Property 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 individual
items of income and gain comprising Net Property 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. To the extent Net Property Loss is allocated to Partners holding
Class B Units pursuant to subparagraph 1(a), such Net Property Loss shall be allocated among the Partners holding Class B Units in a manner
that reverses the allocation of Net Property Gain to such Partner pursuant to this subparagraph (b)(ii).

 

     

     

    

 

(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 the Regulatory Allocations in paragraph 2 but prior to any allocations under subparagraph 1(a), Net
Property Gain and, to the extent necessary, individual items of income and gain comprising Net Property 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.

 

(iv)      Special Allocation
of Depreciation. After giving effect to the allocations in subparagraph 1(c)(i) and paragraph 2, but prior to any allocation under
subparagraph 1(a), 1(c)(ii) or 1(c)(iii), the Initial Limited Partner shall be entitled to allocations of Depreciation until the cumulative
amount of Depreciation allocated to the Initial Limited Partner pursuant to this subparagraph 1(c)(iv) for all years equals $10,000,000; provided,
that (A) the Initial Limited Partner shall notify the Partnership in writing, within fifteen (15) days after the end of the year to which
the allocation of Depreciation relates, of the amount of Depreciation the Initial Limited Partner elects to have allocated to it for such
year, (B) the amount of Depreciation the Initial Limited Partner may elect to be allocated pursuant to this subparagraph 1(c)(iv) for
any year shall not exceed $10,000,000 minus the amount of Depreciation specially allocated pursuant to this subparagraph 1(c)(iv) to the
Initial Limited Partner for all prior years, and (C) if the amount of Depreciation the Partnership is able to allocate in a year is less
than the amount the Initial Limited Partner has elected for such year, the Partnership shall notify the Initial Limited Partner as early
as reasonably practicable but in no event later than five (5) days prior to the date it issues K-1’s for such year.

 

(v)       Special Allocation
of Net Property Gain. After giving effect to the allocations in subparagraph 1(c)(i) and paragraph 2 and to the extent not previously
allocated pursuant to subparagraph 2(b), but prior to any allocation under subparagraph 1(a) and/or 1(c)(ii), Net Property Gain shall
be allocated first to the Initial Limited Partner to the extent of the cumulative amount of Depreciation allocated to the Initial Limited
partner pursuant to subparagraph 1(c)(iv).”

 

16.           Paragraph
2 of Exhibit B is hereby revised by replacing it in its entirety with the following new paragraph 2:

 

“2.        Regulatory Allocations.
Notwithstanding any provisions of paragraph 1 of this Exhibit B, the following regulatory allocations shall be made (such allocations
 “Regulatory Allocations”).

 

(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(g) 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 Section 1.704-2(f) 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 attributable to a Partner Nonrecourse Debt during any fiscal year, each Partner who has a
share of the Partner Nonrecourse Debt Minimum Gain attributable to that Partner Nonrecourse Debt, 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 Section 1.704-2(i)(4) 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.

 

(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.

 

(f)       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 (including
gross 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.”

 

17.           
Paragraph 4 of Exhibit B is hereby further revised by replacing it in its entirety with the following new paragraph 4:

 

“4.        Tax
Allocations.

 

(a)       Items of
Income or Loss. Except as is otherwise provided in this Exhibit B, an allocation of Net Income, Net Loss, or any items thereof
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, or any items thereof.

 

     

     

    

 

(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, to the extent possible, 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 items thereof allocated among the
Partners, but merely the character of such Net Income, Net Property Gain or items 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 or Net Loss 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 U.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 U.S. 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 (within the meaning of 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 required to be allocated
to such Partner 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.)”

 

18.           
Exhibit B is hereby further revised by adding the following new paragraphs 5 through 7:

 

“5.        Allocations
Regarding General Partner In Respect of Preferred Units.

 

(a)       It is the
intention of the parties hereunder that the aggregate Capital Account balance of the General Partner in respect of the Series A
Preferred Units and Series B Preferred Units at any date shall not exceed the amount of the original Capital Contributions made in
respect of the Series A Preferred Units and Series B Preferred Units plus all accrued and unpaid distributions thereon, whether or
not declared, to the extent not previously distributed. Notwithstanding anything to the contrary contained herein, in connection
with the liquidation of the Partnership or the interest of a holder of Series B Preferred Units or Series B Preferred Units, and
prior to making any other allocations of Net Income or Net Loss, items of income and gain or deduction and loss shall first be
allocated to the General Partner in respect of the Series A Preferred Units and Series B Preferred Units in such amounts as is
required to cause the General Partner’s adjusted Capital Account in respect of the Series A Preferred Units and Series B
Preferred Units (taking into account any amounts such Partner is obligated to contribute to the capital of the Partnership or is
deemed obligated to contribute pursuant to Regulations Section 1.704-1(b)(2)(ii)(c)(2)) to equal the amount the General Partner is
entitled to receive pursuant to the provisions of this Agreement in respect to the Series A Preferred Units and Series B Preferred
Units.

 

     

     

    

 

(b)       Unless otherwise
required by applicable law, any amount distributed to the General Partner in its capacity as the holder of Series A Preferred Units and
Series B Preferred Units under Section 5.1 that exceeds the sum of (a) the cumulative Net Operating Income and Net Property Gain (and
individual items of income and gain comprising Net Operating Income and Net Property Gain) allocated to the General Partner plus (b) the
aggregate Capital Account balance of the General Partner, in each case, in respect of the Series A Preferred Units and Series B Preferred
Units, respectively, shall be treated as a guaranteed payment pursuant to Code Section 707(c).

 

6.        Allocations between Transferor and
Transferee. If a Partner transfers any part or all of its Partnership Interest, the distributive shares of the various items of
Net Income and Net Loss allocable among the Partners during such fiscal year of the Partnership shall be allocated between the
transferor and the transferee Partner either (a) as if the Partnership’s fiscal year had ended on the date of the transfer or
(b) based on the number of days of such fiscal year that each was a Partner without regard to the results of Partnership activities
in the respective portions of such fiscal year in which the transferor and the transferee were Partners; provided, however, that the
General Partner may apply a different method if required by applicable law. The General Partner, in its sole and absolute
discretion, shall determine which method shall be used to allocate the distributive shares of the various items of Net Income and
Net Loss between the transferor and the transferee Partner.

 

7.       
Substantial Economic Effect; Savings Clause.

 

(a)       It is the intent
of the Partners (including the Special Limited Partner) that the allocations of Net Income, Net Loss, Net Property Gain and Net Property
Loss under the Agreement have “substantial economic effect” (or be consistent with the Partners’ and the Special Limited
Partner’s interests in the Partnership in the case of the allocation of losses attributable to nonrecourse debt) within the meaning
of Section 704(b) of the Code as interpreted by the Regulations promulgated pursuant thereto. The provisions of this Exhibit B and other
relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent.

 

(b)       Notwithstanding
anything to the contrary in this Agreement, it is the intent of the Partners (including the Special Limited Partner) that the
allocation provisions of this Exhibit B produce (i) a final Capital Account balance of the General Partner in respect of the Series
A Preferred Units and the Series B Preferred Units equal to their aggregate respective Liquidating Distributions and (ii) final
Capital Account balances of the Partners (including the Special Limited Partner) equal to the amount such Partners would receive
with respect to their GP Units, OP Units, Class B Units, or the Special Limited Partner Interest pursuant to Section 5.1. To the
extent the allocation provisions of Exhibit B would fail to produce such final Capital Account balances, (y) such provisions shall
be amended by the General Partner if and to the extent necessary to produce such result and (z) Net Income, Net Loss, Net Property
Gain, Net Property Loss and, to the extent necessary, individual items of income, gain, loss and deduction, of the Partnership for
prior open years shall be reallocated by the General Partner, in its sole and absolute discretion, among the Partners to the extent
it is not possible to achieve such result with allocations of Net Income, Net Loss, Net Property Gain, Net Property Loss and, to the
extent necessary, individual items of income, gain, loss and deduction, of the Partnership for the current year and future years,
and if necessary, as a guaranteed payment as defined in Section 707(c) of the Code (unless the treatment of a portion of the return
on the Series A Preferred Return or on the Series B Preferred Return as a guaranteed payment would cause the entire Series A
Preferred Return or the Series B Preferred Return to be a guaranteed payment, in which case none of such return shall be so
treated). This paragraph 7(b) shall control notwithstanding any reallocation or adjustment of taxable Net Income, Net Loss, Net
Property Gain, Net Property Loss and, to the extent necessary, individual items of income, gain, loss and deduction, of the
Partnership by the Service or any other taxing authority. The General Partner shall have the authority to amend this Agreement
without the consent of the Limited Partners or the Special Limited Partner, as it reasonably considers advisable, to make the
allocations and adjustments described in this paragraph 7(b).”

 

     

     

    

 

		19.	The Partnership Agreement is hereby amended by the addition of a new annex thereto, entitled “Annex
B,” in the form attached hereto as Annex B, which sets forth the designations, allocations, preferences, conversion or other special
rights, powers and duties of the Series B Preferred Units, which exhibit shall be attached to and made a part of, and shall be an exhibit
to, the Partnership Agreement.

 

		20.	Pursuant to Sections 4.3 of the Partnership Agreement, effective as of the applicable issuance date
of any issuance of shares of Series B Preferred Stock by the General Partner, the Partnership will issue Series B Preferred Units to the
General Partner in an amount that will be reflected on Exhibit A to the Partnership Agreement, as such Exhibit A may be amended or restated
by the General Partner in its sole discretion from time to time to the extent necessary to reflect such issuances, but in no event shall
the aggregate number of Series B Preferred Units issued pursuant to this Amendment exceed [●] or such greater number of shares of
Series B Preferred Stock as may be hereafter authorized for issuance by the General Partner. The Series B Preferred Units have been created
and are being issued in conjunction with the General Partner’s issuance and sale of the Series B Preferred Stock, and as such, the
Series B Preferred Units are intended to have designations, preferences and other rights and terms that are substantially the same as
those of the Series B Preferred Stock, all such that the economic interests of the Series B Preferred Units and the Series B Preferred
Stock are substantially similar, and the provisions, terms and conditions of this Amendment, including without limitation the attached
Annex B, shall be interpreted in a fashion consistent with this intent. In return for the issuance to the General Partner of the Series
B Preferred Units, the General Partner has contributed to the Partnership the net proceeds from its issuance and sale of the Series B
Preferred Stock (the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that share
issuance (i.e., the net proceeds actually contributed, plus any underwriter’s discount or other expenses incurred, with any such
discount or expense deemed to have been incurred by the General Partner on behalf of the Partnership)).

 

		21.	The foregoing recitals are incorporated in and are made a part of this Amendment.

 

		22.	Except as specifically defined herein, all capitalized terms shall have the definitions provided in
the Partnership Agreement. This Amendment has been authorized by the General Partner pursuant to Section 14.1 of the Partnership Agreement
and does not require execution by any Limited Partner or any other Person.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned has
executed this Amendment as of the date first set forth above.

 

	 	GENERAL PARTNER:
	 	 	 	 
	 	HEALTHCARE TRUST, INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	Edward M. Weil, Jr.
	 	 	Title:	Chief Executive Officer and President

 

[Signature Page to Sixth Amendment to the Agreement of Limited Partnership
of Healthcare Trust Operating Partnership, L.P.]

 

     

     

    

 

ANNEX B

 

DESIGNATION OF THE SERIES B PREFERRED UNITS
OF

HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P.

 

1.            
Designation and Number. A series of Preferred Units (as defined below) of Healthcare Trust Operating Partnership, L.P.,
a Delaware limited partnership (the “Partnership”), designated the “[●]% Series B Cumulative Redeemable
Perpetual Preferred Units” (the “Series B Preferred Units”), is hereby established. The number of authorized
Series B Preferred Units shall be [●].

 

2.            
Defined Terms. Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the
Agreement of Limited Partnership of the Partnership, including Annex A thereto, entered into on February 14, 2013 (as now or hereafter
amended, restated, modified, supplemented or replaced, the “Partnership Agreement”). The following defined terms used
herein shall have the meanings specified below:

 

“Articles Supplementary”
means the Articles Supplementary of the General Partner filed with the State Department of Assessments and Taxation of the State of Maryland
on [●], designating the terms, rights and preferences of the Series B Preferred Stock.

 

“Capital
Gains Amount” shall have the meaning provided in Section 5(g).

 

“Change of Control” shall have
the meaning provided in the Articles Supplementary.

 

“Common Stock” shall have the
meaning provided in the Articles Supplementary.

 

“Delisting Event” shall have
the meaning provided in the Articles Supplementary.

 

“Distribution Record Date” shall
have the meaning provided in Section 5(a).

 

“Junior
Preferred Units” shall have the meaning provided in Section 4.

 

“Liquidating
Distribution” shall have the meaning provided in Section 6(a).

 

“Parity
Preferred Units” shall have the meaning provided in Section 4.

 

“Partnership
Agreement” shall have the meaning provided in Section 1.

 

“Redemption
Date” shall have the meaning provided in Section 7(a).

 

“Preferred Units” means all Partnership
Units designated as preferred units by the General Partner from time to time in accordance with Section 4.3 of the Partnership Agreement.

 

“Senior
Preferred Units” shall have the meaning provided in Section 4.

 

“Series B Base Liquidation Preference” shall
have the meaning provided in Section 6(a).

 

“Series B Preferred Return”
shall have the meaning provided in Section 5(a).

 

“Series
B Preferred Stock” shall have the meaning provided in the Articles Supplementary.

 

“Series
B Preferred Unit Distribution Payment Date” shall have the meaning provided in Section 5(a).

 

“Series
B Preferred Units” shall have the meaning provided in Section 1.

 

“Total
Distributions” shall have the meaning provided in Section 5(g).

 

     

     

    

 

3.            
 Maturity. The Series B Preferred Units have no stated maturity and will not be subject to any sinking fund or mandatory
redemption.

 

4.            
Rank. In respect of rights to the payment of distributions and the distribution of assets in the event of any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of the Partnership, the Series B Preferred Units shall rank (a) senior
to all classes or series of Common Units and any class or series of Preferred Units issued by the Partnership, the terms of which expressly
provide that such units rank junior to the Series B Preferred Units with respect to distribution rights and rights upon the voluntary
or involuntary liquidation, dissolution or winding up of the Partnership (collectively, the “Junior Preferred Units”);
(b) on parity with any other class or series of Preferred Units issued by the Partnership, the terms of which expressly provide that such
units rank on parity with the Series B Preferred Units with respect to distribution rights and rights upon the voluntary or involuntary
liquidation, dissolution or winding up of the Partnership (collectively, the “Parity Preferred Units”); and (c) junior
to any class or series of Preferred Units issued by the Partnership, the terms of which expressly provide that such units rank senior
to the Series B Preferred Units with respect to distribution rights and rights upon the voluntary or involuntary liquidation, dissolution
or winding up of the Partnership (collectively, the “Senior Preferred Units”). The term “Preferred Units”
does not include convertible or exchangeable debt securities of the Partnership, including convertible or exchangeable debt securities,
which will rank senior to the Series B Preferred Units prior to the conversion or exchange. The Series B Preferred Units will also rank
junior in right or payment to the Partnership’s existing and future indebtedness. All of the Series B Preferred Units shall rank
equally with one another and shall be identical in all respects.

 

5.            
Distributions.

 

a.       
Subject to the preferential rights of holders of any class or series of Senior Preferred Units of the Partnership, the holders
of Series B Preferred Units shall be entitled to receive, when, as and if authorized by the General Partner and declared by the Partnership,
out of assets of the Partnership legally available for payment of distributions, cumulative cash distributions in the amount of $[●]
per unit per year, which is equivalent to the rate of [●]% of the Series B Base Liquidation Preference (as defined below) per unit
per year (the “Series B Preferred Return”). The Series B Preferred Return shall accrue and be cumulative from and including
the date of original issue of any Series B Preferred Units and shall be payable quarterly in arrears, on or about the 15th day of each
January, April, July and October of each year (or, if not a Business Day, the next succeeding business day, each a “Series B
Preferred Unit Distribution Payment Date”) for the period ending on such Series B Preferred Unit Distribution Payment Date,
commencing on January 18, 2022. The amount of any distribution payable on the Series B Preferred Units for any partial distribution period
will be prorated and computed, and for any full distribution period will be computed, on the basis of twelve 30-day months and a 360-day
year. Distributions will be payable in arrears to holders of record of the Series B Preferred Units as they appear on the records of the
Partnership at the close of business on the applicable record date, which shall be the Series B Record Date (as defined in the Articles
Supplementary), which is the close of business on the date set by the board of directors as the record date for the payment of dividends
on Series B Preferred Stock (each, a “Distribution Record Date”).

 

b.      
No distributions on the Series B Preferred Units shall be authorized by the General Partner or declared and or set apart for payment
by the Partnership at such time as the terms and conditions of any agreement of the General Partner or the Partnership, including any
agreement relating to the indebtedness of any of them, prohibits such authorization, payment or setting apart for payment or provides
that such authorization, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such authorization,
payment or setting apart for payment shall be restricted or prohibited by law.

 

c.       
Notwithstanding anything to the contrary contained herein, the Series B Preferred Return will accrue whether or not distributions
are authorized by the General Partner or declared by the Partnership. No interest or additional distributions shall be payable in respect
of any accrued and unpaid Series B Preferred Return.

 

d.       Except
provided in Section 5(e) below, no distributions shall be declared and paid or set apart for payment, and no other distribution of
cash or other property may be declared and made, directly or indirectly, on or with respect to any Common Units, Parity Preferred
Units or Junior Preferred Units of the Partnership (other than a distribution paid in units of, or options, warrants or rights to
subscribe for or purchase units of, Common Units or Junior Preferred Units) for any period, nor shall units of any class or series
of Common Units, Parity Preferred Units or Junior Preferred Units be redeemed (or assets be paid to our made available for a sinking
fund for the redemption of any such units of the Partnership), purchased or otherwise acquired (except (i) by conversion into or
exchange for Common Units or Junior Preferred Units, (ii) for the acquisition of units corresponding with the acquisition of shares
pursuant to the provisions of Section 5.7 of Article V of the Charter, and (iii) for purchases or exchanges pursuant to a purchase
or exchange offer made on the same terms to all holders of Series B Preferred Units and all holders of Parity Preferred Units),
unless full cumulative distributions on the Series B Preferred Units for all past distribution periods shall have been or
contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment.

 

     

     

    

 

e.       
When cumulative distributions are not paid in full (or declared and a sum sufficient for such full payment is not set apart) on
the Series B Preferred Units and any Parity Preferred Units, all distributions (other than (i) any acquisition of units corresponding
with the acquisition of shares pursuant to the provisions of Section 5.7 of Article V of the Charter or (ii) a purchase or exchange pursuant
to a purchase or exchange offer made on the same terms to all holders of Series B Preferred Units and all holders of Parity Preferred
Units) declared on the Series B Preferred Units and any Parity Preferred Units shall be declared pro rata so that the amount of
distributions declared per Series B Preferred Unit and such Parity Preferred Units shall in all cases bear to each other the same ratio
that accrued distributions per Series B Preferred Unit and such Parity Preferred Units (which shall not include any accrual in respect
of unpaid distributions on any Parity Preferred Units for prior distribution periods if such Parity Preferred Units do not have a cumulative
distribution) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment
or payments on Series B Preferred Units which may be in arrears.

 

f.       
Holders of Series B Preferred Units shall not be entitled to any distribution, whether payable in cash, property or units of the
Partnership, in excess of the Series B Preferred Return on the Series B Preferred Units as provided above. Any distribution made on the
Series B Preferred Units shall first be credited against the earliest accrued but unpaid Series B Preferred Return which remains payable.

 

g.      
If, for any taxable year, the General Partner elects to designate as “capital gain dividends” (as defined in Section
857 of the Code) any portion (the “Capital Gains Amount”) of the total distributions not in excess of the General Partner’s
earnings and profits (as determined for U.S. federal income tax purposes) paid or made available for such taxable year to holders of all
classes and series of the General Partner’s stock (the “Total Distributions”), then the portion of the Capital
Gains Amount that shall be allocable to holders of Series B Preferred Units shall be in the same proportion that the Total Distributions
paid or made available to the holders of Series B Preferred Units for such taxable year bears to the Total Distributions for such taxable
year made with respect to all classes or series of Partnership Units outstanding.

 

6.            
Liquidation Preference.

 

a.       
Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Partnership, after payment of or
provision for the Partnership’s debts and liabilities and any other class or series of equity securities of the Partnership ranking,
with respect to rights upon the Partnership’s voluntary or involuntary liquidation, dissolution or winding up, senior to the Series
B Preferred Units, before any distribution or payment shall be made to the holders of any Common Units or Junior Preferred Units, the
holders of the Series B Preferred Units then outstanding shall be entitled to be paid out of the assets of the Partnership legally available
for distribution to its Partners a liquidation preference in cash of $25.00 per Series B Preferred Unit (the “Series B Base Liquidation
Preference”), plus an amount equal to any accrued and unpaid Series B Preferred Return to, but not including, the date of payment
(together with the Series B Base Liquidation Preference, the “Liquidating Distribution”).

 

b.      
If upon any such voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the available assets of the
Partnership are insufficient to pay the full amount of the Liquidating Distributions on all outstanding Series B Preferred Units and the
corresponding amounts payable on all outstanding Parity Preferred Units, then the holders of Series B Preferred Units and Parity Preferred
Units shall share ratably in any such distribution of assets in proportion to the full Liquidating Distributions to which they would otherwise
be respectively entitled.

 

     

     

    

 

c.       
 After payment of the full amount of the Liquidating Distributions to which they are entitled, holders of Series B Preferred Units
will have no right or claim to any of the remaining assets of the Partnership.

 

d.      
For the avoidance of doubt, the consolidation, merger or conversion of the Partnership with or into another entity, the merger
of another entity with or into the Partnership, a statutory unit exchange by the Partnership or the sale, lease, transfer or conveyance
of all or substantially all of the assets or business of the Partnership shall not be considered a liquidation, dissolution or winding
up of the affairs of the Partnership.

 

7.            
Optional Redemption.

 

a.       
The Series B Preferred Units are not redeemable prior to [●], 2026, except as otherwise provided in this Section 7. On and
after [●], 2026, the Partnership, at its option, upon not fewer than 30 nor more than 60 days’ written notice, may redeem
the Series B Preferred Units, in whole or in part, at any time or from time to time, for cash, at a redemption price equal to $25.00 per
Series B Preferred Unit, plus any accrued and unpaid distributions thereon (whether or not declared) to, but not including, the date fixed
for redemption (the “Redemption Date”). Such notice shall be deemed to have been given to the General Partner, in its
capacity as holder of the Series B Preferred Units, upon the giving of any notice by the General Partner to holders of shares of Series
B Preferred Stock with respect to the redemption of such shares. If fewer than all of the outstanding Series B Preferred Units are to
be redeemed, the Series B Preferred Units to be redeemed may be selected pro rata (as nearly as practicable without creating fractional
units) or by lot.

 

b.      
Unless full cumulative distributions on all Series B Preferred Units shall have been or contemporaneously are declared and paid
or declared and a sum sufficient for the payment thereof set apart for payment for all past distribution periods, (i) no Series B Preferred
Units shall be redeemed unless all outstanding Series B Preferred Units are simultaneously redeemed, and (ii) the Partnership shall not
purchase or otherwise acquire directly or indirectly for any consideration, nor shall any monies be paid to or be made available for a
sinking fund for the redemption of, any Series B Preferred Units (except by conversion into or exchange for Common Units or Junior Preferred
Units of the Partnership); provided, however, that the foregoing shall not prevent the redemption or purchase of Series B Preferred
Units by the Partnership in connection with a redemption or purchase by the General Partner of Series B Preferred Stock pursuant to Article
V of the Charter or otherwise in order to ensure that the General Partner remains qualified as a REIT for U.S. federal income tax purposes
or pursuant to the terms of the Articles Supplementary, or the purchase or acquisition of Series B Preferred Units pursuant to a purchase
or exchange offer made on the same terms to holders of all outstanding Series B Preferred Units and any other Parity Preferred Units.

 

c.       
If a Redemption Date falls after a Distribution Record Date and on or prior to the corresponding Series B Preferred Unit Distribution
Payment Date, each holder of Series B Preferred Units on such Distribution Record Date shall be entitled to the distribution payable on
such units on the corresponding Series B Preferred Unit Distribution Payment Date (including any accrued and unpaid distributions for
prior distribution periods) notwithstanding the redemption of such units on or prior to such Series B Preferred Unit Distribution Payment
Date. Except as provided above, the Partnership will make no payment or allowance for unpaid distributions, whether or not in arrears,
on Series B Preferred Units for which a notice of redemption has been given.

 

d.      
Upon the occurrence of a Delisting Event or Change of Control, if and when the General Partner exercises its option to redeem shares
of Series B Preferred Stock as provided in Section 6 of the Articles Supplementary, the General Partner shall cause the Partnership to
concurrently redeem an equal number of Series B Preferred Units if and when such shares of Series B Preferred Stock are so redeemed, at
a redemption price per Series B Preferred Unit payable in cash and equal to the same price per share paid by the General Partner to redeem
the shares of Series B Preferred Stock (i.e., a redemption price of $25.00 per share of Series B Preferred Stock, plus an amount equal
to any accrued and unpaid dividends thereon. No interest shall accrue for the benefit of the Series B Preferred Units to be redeemed on
any cash set aside by the Partnership.

 

e.       
Notwithstanding anything to the contrary contained herein, the Partnership may redeem one Series B Preferred Unit for each share
of Series B Preferred Stock purchased in the open market, through tender or by private agreement by the General Partner.

 

     

     

    

 

f.       
 All Series B Preferred Units redeemed or otherwise acquired by the Partnership in any manner whatsoever shall be retired and reclassified
as authorized but unissued Preferred Units, without designation as to class or series, and may thereafter be reissued as any class or
series of Preferred Units in accordance with the applicable provisions of the Partnership Agreement.

 

g.      
Notwithstanding anything to the contrary contained herein, the Partnership may redeem Series B Preferred Units at any time in connection
with any redemption by the General Partner of the Series B Preferred Stock.

 

h.      
In addition, upon the occurrence of a Delisting Event, the distributions rate specified in Section 5(a) hereof shall be increased
on the day after the occurrence of the Delisting Event by [●]% per annum to the rate of [●]% of the Series B Base Liquidation
Preference per unit per year (equivalent to $[●] per unit per year) from and after the date of the Delisting Event. Following the
cure of such Delisting Event, the distribution rate shall revert to the rate specified in Section 5(a) hereof.

 

8.            
Voting Rights. Holders of the Series B Preferred Units will not have any voting rights.

 

9.            
Conversion. The Series B Preferred Units are not convertible or exchangeable for any other property or securities, except
as provided herein.

 

a.       
In the event that a holder of shares of Series B Preferred Stock exercises its right to convert such shares of Series B Preferred
Stock into Common Stock in accordance with the terms of the Articles Supplementary, then, concurrently with any conversion that actually
occurs pursuant to such exercise (i.e. such shares are not redeemed for cash prior thereto in accordance with the terms of the Articles
Supplementary), an equivalent number of Series B Preferred Units of the Partnership held by the General Partner shall be automatically
converted into a number of OP Units of the Partnership equal to the number of shares of Common Stock issued upon conversion of such Series
B Preferred Stock; provided, however, that if a holder of Series B Preferred Stock receives cash or other consideration in addition
to or in lieu of Common Stock in connection with such conversion, then the General Partner, as the holder of the Series B Preferred Units,
shall be entitled to receive cash or such other consideration equal (in amount and form) to the cash or other consideration to be paid
by the General Partner to such holder of the Series B Preferred Stock. Any such conversion will be effective at the same time the conversion
of Series B Preferred Stock into Common Stock is effective.

 

b.      
No fractional units will be issued in connection with the conversion of Series B Preferred Units into OP Units. In lieu of fractional
OP Units, the General Partner shall be entitled to receive a cash payment in respect of any fractional unit in an amount equal to the
fractional interest multiplied by the Common Stock Price (as defined in the Articles Supplementary) on the date the shares of Series B
Preferred Stock are surrendered for conversion by a holder thereof.

 

10.         
Allocation of Net Income and Net Loss.

 

Subparagraphs 1(a), (b) and (c)(i) of Exhibit B of
the Partnership Agreement are hereby deleted in their entirety and replaced by subparagraphs 1(a), (b) and (c)(i) below:

 

(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, without duplication, 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 immediately
after such allocation to equal (i) the amount of distributions that would be made to such Partner pursuant to Section 5.1(b) if (A)
the Partnership were dissolved, its affairs wound up and its assets sold for cash equal to their Gross Asset Value, taking into
account any adjustments thereto for such period, (B) 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 (C)
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.

 

     

     

    

 

(b)                 
[Reserved.]

 

(c)                 
Special Allocations.

 

(i)                
Special Allocations Regarding Preferred Units. Notwithstanding any other provisions of this paragraph 1, after giving
effect to the Regulatory Allocations in paragraph 2, but prior to any allocations under subparagraph 1(a), a pro rata portion of Net Operating
Income and Net Property Gain and, to the extent necessary, individual items of income and gain comprising Net Operating Income and Net
Property Gain of the Partnership, shall be allocated to the General Partner in respect of the Series A Preferred Units and Series B Preferred
Units until it has been allocated such Net Operating Income and Net Property Gain equal to the excess of (A) the cumulative amount of
distributions of Cash Available for Distribution the General Partner has received for all the current and prior taxable years or portions
thereof with respect to the Series A Preferred Units and Series B Preferred Units, over (B) the cumulative Net Operating Income and Net
Property Gain allocated to the General Partner, pursuant to this subparagraph 1(c) for all the current and prior taxable years or portions
thereof.

 

11.         
Winding Up.

 

Section 13.2(a)(iii)(D) of the Partnership Agreement
is deleted in its entirety and replaced by Section 13.2(a)(iii)(D) below:

 

(D)             
the balance, if any, shall be distributed first to the General Partner in respect of the Series A Preferred Units and Series
B Preferred Units until it has received distributions under this Agreement in respect of the Series A Preferred Units and Series B Preferred
Units equal to their respective Liquidating Distributions and then to all Partners (including the Special Limited Partner) in accordance
with Sections 5.1.

 

12.         
Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms
and conditions the General Partner hereby ratifies and confirms.

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