Document:

EX-10.2 FORM OF ADVISORY AGREEMENT

 

Exhibit 10.2

FORM OF

ADVISORY AGREEMENT

AMONG

GREEN REALTY TRUST, INC.,

GREEN REIT OPERATING PARTNERSHIP, LP,

INSIGHT GREEN REIT ADVISOR, LLC

AND

INSIGHT REAL ESTATE, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Appointment	 	 	7	 
	 
	 	 	 	 	 	 
	3.
	 	Duties Of The Advisor	 	 	7	 
	 
	 	 	 	 	 	 
	4.
	 	Authority Of Advisor	 	 	9	 
	 
	 	 	 	 	 	 
	5.
	 	Bank Accounts	 	 	10	 
	 
	 	 	 	 	 	 
	6.
	 	Records; Access	 	 	10	 
	 
	 	 	 	 	 	 
	7.
	 	Limitations On Activities	 	 	10	 
	 
	 	 	 	 	 	 
	8.
	 	Relationship With Director	 	 	11	 
	 
	 	 	 	 	 	 
	9.
	 	Fees	 	 	11	 
	 
	 	 	 	 	 	 
	10.
	 	Expenses	 	 	12	 
	 
	 	 	 	 	 	 
	11.
	 	Other Services	 	 	13	 
	 
	 	 	 	 	 	 
	12.
	 	Reimbursement To The Advisor	 	 	13	 
	 
	 	 	 	 	 	 
	13.
	 	Investment Opportunities	 	 	14	 
	 
	 	 	 	 	 	 
	14.
	 	Other Activities Of The Advisor	 	 	14	 
	 
	 	 	 	 	 	 
	15.
	 	Term; Termination Of Agreement	 	 	15	 
	 
	 	 	 	 	 	 
	16.
	 	Termination By The Parties	 	 	15	 
	 
	 	 	 	 	 	 
	17.
	 	Assignment To An Affiliate	 	 	16	 
	 
	 	 	 	 	 	 
	18.
	 	Payments To And Duties Of Advisor Upon Termination	 	 	16	 
	 
	 	 	 	 	 	 
	19.
	 	Indemnification By The Company And The Operating Partnership	 	 	16	 
	 
	 	 	 	 	 	 
	20.
	 	Indemnification By Advisor	 	 	18	 
	 
	 	 	 	 	 	 
	21.
	 	Notices	 	 	18	 
	 
	 	 	 	 	 	 
	20.
	 	Modification	 	 	19	 
	 
	 	 	 	 	 	 
	22.
	 	Severability	 	 	19	 
	 
	 	 	 	 	 	 
	23.
	 	Construction	 	 	19	 
	 
	 	 	 	 	 	 
	24.
	 	Entire Agreement	 	 	19	 
	 
	 	 	 	 	 	 
	25.
	 	Indulgences, Not Waivers	 	 	19	 
	 
	 	 	 	 	 	 
	26.
	 	Gender	 	 	19	 
	 
	 	 	 	 	 	 
	27.
	 	Titles Not To Affect Interpretation	 	 	19	 
	 
	 	 	 	 	 	 
	28.
	 	Execution In Counterparts	 	 	19	 
	 
	 	 	 	 	 	 
	29.
	 	Initial Investment	 	 	19	 

 

 

ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT, dated as of the ___day of                     , 2007, is among Green
Realty Trust, Inc., a Maryland corporation (the “Company”), Green REIT Operating
Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), Insight
Green REIT Advisor, LLC, a Delaware limited liability company (the “Advisor”), and, solely
in connection with the obligations set forth in Section 13, Insight Real Estate, LLC, a Delaware
limited liability company (“Insight”).

W I T N E S S E T H

     WHEREAS, the Company intends to qualify as a REIT (as defined below), and to invest its funds
in investments permitted by the terms of Sections 856 through 860 of the Code (as defined below);

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct all of its business and make all Investments through the Operating Partnership;

     WHEREAS, the Company and the Operating Partnership desire to avail themselves of the
experience, sources of information, advice, assistance and certain facilities of the Advisor and to
have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and
subject to the supervision, of the Board of Directors of the Company, all as provided herein;

     WHEREAS, the Advisor is willing to undertake to render such services, subject to the
supervision of the Board of Directors, on the terms and conditions hereinafter set forth; and

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

     1. DEFINITIONS. As used in this Advisory Agreement (the “Agreement”), the following
terms have the definitions hereinafter indicated:

     Acquisition Expenses. Any and all expenses, exclusive of Acquisition Fees, incurred
by the Company, the Operating Partnership, the Advisor, or any of their Affiliates in connection
with the selection, acquisition or development of any Real Estate Assets, whether or not acquired,
including, without limitation, legal fees and expenses, travel and communications expenses, costs
of appraisals, nonrefundable option payments on property not acquired, accounting fees and
expenses, title insurance premiums, and the costs of performing due diligence.

     Acquisition Fees. Any and all fees and commissions, exclusive of Acquisition
Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to
any Affiliate of the Company, the Operating Partnership or the Advisor) in connection with making
or investing in mortgages or mezzanine loans or the purchase, development or
construction of any Real Estate Asset, including real estate commissions, selection fees,

 

 

development fees, construction fees, nonrecurring management fees, loan fees, points or any other
fees of a similar nature. Excluded shall be development fees and construction fees paid to any
Person not affiliated with the Sponsor in connection with the actual development and construction
of a project.

     Advisor. Insight Green REIT Advisor, LLC, a Delaware limited liability company, any
successor advisor to the Company, the Operating Partnership or any Person to which Insight Green
REIT Advisor, LLC or any successor advisor subcontracts substantially all of its functions.
Notwithstanding the forgoing, a Person hired or retained by Insight Green REIT Advisor, LLC to
perform property management and related services for the Company or the Operating Partnership that
is not hired or retained to perform substantially all of the functions of Insight Green REIT
Advisor, LLC with respect to the Company or the Operating Partnership as a whole shall not be
deemed to be an Advisor.

     Asset Management Fee. The Asset Management Fee means the fee described in Paragraph
9(c).

     Affiliate or Affiliated. With respect to any Person, (i) any Person directly or
indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the
outstanding voting securities of such other Person; (ii) any Person ten percent (10%) or more of
whose outstanding voting securities are directly or indirectly owned, controlled or held, with the
power to vote, by such other Person; (iii) any Person directly or indirectly controlling,
controlled by or under common control with such other Person; (iv) any executive officer, director,
trustee or general partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee or general partner.

     Articles of Incorporation. The Articles of Incorporation of the Company, as amended
from time to time.

     Average Invested Assets. For a specified period, the average of the aggregate book
value of the assets of the Company invested, directly or indirectly, in Investments before
deducting depreciation, bad debts or other non-cash reserves, computed by taking the average of
such values at the end of each month during such period.

     Board of Directors or Board. The persons holding such office, as of any particular
time, under the Articles of Incorporation of the Company, whether they be the Directors named
therein or additional or successor Directors.

     Bylaws. The bylaws of the Company, as the same are in effect from time to time.

     Cause. With respect to the termination of this Agreement, fraud, criminal conduct,
willful misconduct or willful or negligent breach of fiduciary duty by the Advisor, or a material
breach of this Agreement by the Advisor.

     Code. Internal Revenue Code of 1986, as amended from time to time, or any successor
statute thereto. Reference to any provision of the Code shall mean such provision as in effect
from time to time, as the same may be amended, and any successor provision thereto, as interpreted
by any applicable regulations as in effect from time to time.

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     Company. Company shall have the meaning set forth in the preamble of this Agreement.

     Competitive Real Estate Commission. A real estate or brokerage commission for the
purchase or sale of property which is reasonable, customary, and competitive in light of the size,
type, and location of the property.

     Contract Sales Price. The total consideration received by the Company for the sale of
a Real Estate Asset.

     Dealer Manager. 1st Worldwide Financial Partners, LLC, or such other
Person or entity selected by the Board of Directors to act as the dealer manager for the Offering.
1st Worldwide Financial Partners, LLC is a member of the Financial Industry Regulatory
Authority.

     Dealer Manager Fee. 2.5% of Gross Proceeds from the sale of Shares in the Primary
Offering, payable to the Dealer Manager for serving as the dealer manager of such Offering.

     Director. A member of the Board of Directors of the Company.

     Distributions. Any distributions of money or other property by the Company to owners
of Shares, including distributions that may constitute a return of capital for federal income tax
purposes.

     Excess Amount. Excess Amount shall have the meaning set forth in Paragraph 12.

     Expense Year. Expense Year shall have the meaning set forth in Paragraph 12.

     GAAP. Generally accepted accounting principles as in effect in the United States of
America from time to time.

     Good Reason. With respect to the termination of this Agreement, (i) any failure to
obtain a satisfactory agreement from any successor to the Company or the Operating Partnership to
assume and agree to perform the Company’s or the Operating Partnership’s obligations under this
Agreement; or (ii) any material breach of this Agreement of any nature whatsoever by the Company or
the Operating Partnership.

     Gross Proceeds. The aggregate purchase price of all Shares sold for the account of
the Company through all Offerings, without deduction for Sales Commissions, volume discounts, any
marketing support and due diligence expense reimbursement or Organization and Offering Expenses.
For the purpose of computing Gross Proceeds, the purchase price of any Share for which reduced
Sales Commissions are paid to the Dealer Manager or a Soliciting Dealer (where
net proceeds to the Company are not reduced) shall be deemed to be the full amount of the
offering price per Share pursuant to the Prospectus for such Offering without reduction.

     Independent Director. Independent Director shall have the meaning set forth in the
Articles of Incorporation.

     Investments. Any investments by the Company or the Operating Partnership in Real
Estate Assets and Real Estate Related Assets.

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     Joint Ventures. The joint venture or partnership arrangements (other than with the
Operating Partnership) in which the Company or any of its subsidiaries is a co-venturer or general
partner which are established to acquire Real Properties.

     Listing. The listing of the Shares on a national securities exchange or the receipt
by the Company’s Stockholders of securities that are listed on a national securities exchange in
exchange for the Company’s common stock. Upon such Listing, the Shares shall be deemed Listed.

     Loans. Any indebtedness or obligations in respect of borrowed money or evidenced by
bonds, notes, debentures, deeds of trust, letters of credit or similar instruments, including
mortgages and mezzanine loans.

     NASAA REIT Guidelines. The Statement of Policy Regarding Real Estate Investment
Trusts published by the North American Securities Administrators Association on May 7, 2007, as may
be amended from time to time.

     Net Income. For any period, the Company’s total revenues applicable to such period,
less the total expenses applicable to such period other than additions to reserves for
depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of
the Company’s assets.

     Offering. The public offering of Shares pursuant to a Prospectus.

     Operating Partnership. Operating Partnership shall have the meaning set forth in the
preamble of this Agreement.

     Operating Partnership Agreement. The Operating Partnership Agreement among the
Company, the Advisor and Insight Management, LLC.

     OP Unit. Units of limited partnership interest in the Operating Partnership.

     Organizational and Offering Expenses. Any and all costs and expenses, other than the
Sales Commission and the Dealer Manager Fee, incurred by the Advisor or any Affiliate in connection
with the formation, qualification and registration of the Company and the marketing and
distribution of Shares, including, without limitation, the following: total underwriting and
brokerage discounts and commissions (including fees of the underwriters’ attorneys), expenses
for printing, engraving, mailing and distributing costs, salaries of employees while engaged
in sales activity, telephone and other telecommunications costs, all advertising and marketing
expenses (including the costs related to investor and broker-dealer sales meetings), charges of
transfer agents, registrars, trustees, escrow holders, depositories, experts, fees, expenses and
taxes related to the filing, registration and qualification of the sale of the Shares under federal
and state laws, including accountants’ and attorneys’ fees. Organizational and Offering Expenses
paid by the Company will not exceed 3.0% of Gross Proceeds from the sale of Shares in the Primary
Offering.

     Person. An individual, corporation, partnership, trust, joint venture, limited
liability company or other entity.

 - 4 - 

 

     Pre-Paid Offering Expense. Portion of the initial capital contributed to the Company
by the Advisor and Affiliates that has been used to directly pay a portion of the Securities and
Exchange Commission filing fee associated with the Offering and certain entity formation fees.

     Primary Offering. The portion of an Offering other than the Shares offered pursuant
to the Company’s distribution reinvestment plan.

     Prospectus. “Prospectus” has the meaning set forth in Section 2(10) of the Securities
Act of 1933, as amended (the “Securities Act”), including a preliminary Prospectus, an
offering circular as described in Rule 256 of the General Rules and Regulations under the
Securities Act or, in the case of an intrastate offering, any document by whatever name known,
utilized for the purpose of offering and selling securities to the public.

     Real Estate Assets. Any investments by the Company or the Operating Partnership in
unimproved and improved Real Property (including, without limitation, fee or leasehold interests,
options and leases) either directly or through a Joint Venture.

     Real Estate Related Assets. Any investments by the Company or the Operating
Partnership in (i) Loans, such as first mortgages, second mortgages and mezzanine loans on Real
Property, (ii) equity securities such as common stocks, preferred stocks and convertible securities
of pubic or private real estate companies, and (iii) debt securities such as collateralized
mortgage backed securities, commercial mortgages and other debt securities.

     Real Property. Real property owned from time to time by the Company or the Operating
Partnership, either directly or through joint venture arrangements or other partnerships which
consists of (i) land only, (ii) land, including the buildings located thereon, (iii) buildings only
or (iv) such investments the Board of Directors and the Advisor mutually designate as Real Property
to the extent such investments could be classified as Real Property.

     REIT. A “real estate investment trust” under Sections 856 through 860 of the Code or
as may be amended.

     Sale or Sales. Any transaction or series of transactions whereby: (A) the Company or
the Operating Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Real Property
or portion thereof, including the lease of any Real Property consisting of a building only, and
including any event with respect to any Real Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Company or the Operating Partnership directly or
indirectly (except as described in other subsections of this definition) sells, grants, transfers,
conveys, or relinquishes its ownership of all or substantially all of the interest of the
Corporation or the Operating Partnership in any Joint Venture in which it is a co-venturer or
partner; (C) any Joint Venture directly or indirectly (except as described in other subsections of
this definition) in which the Company or the Operating Partnership as a co-venturer or partner
sells, grants, transfers, conveys, or relinquishes its ownership of any Real Property or portion
thereof, including any event with respect to any Real Property which gives rise to insurance claims
or condemnation awards; or (D) the Company or the Operating Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, conveys or

 - 5 - 

 

relinquishes its interest in any Mortgage or portion thereof (including with respect to any
Mortgage, all payments thereunder or in satisfaction thereof other than regularly scheduled
interest payments) of amounts owed pursuant to such Mortgage and any event which gives rise to a
significant amount of insurance proceeds or similar awards; or (E) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of this definition)
sells, grants, transfers, conveys, or relinquishes its ownership of any other asset not previously
described in this definition or any portion thereof, but not including any transaction or series of
transactions specified in clauses (A) through (E) above in which the proceeds of such transaction
or series of transactions are reinvested by the Company in one or more assets within 180 days
thereafter.

     Sales Commission. 7.0% of Gross Proceeds from the sale of Shares in the Primary
Offering payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares
sold by them.

     Shares. The shares of the Company’s common stock, par value $.01 per share.

     Soliciting Dealers. Broker-dealers who are members of the Financial Industry
Regulatory Authority, or that are exempt from broker-dealer registration, and who, in either case,
have executed participating broker or other agreements with the Dealer Manager to sell Shares.

     Special OP Units. The separate series of limited partnership interests to be issued
in accordance with Paragraph 9(d).

     Sponsor. Any Person which (i) is directly or indirectly instrumental in organizing,
wholly or in part, the Company, (ii) will control, manage or participate in the management of the
Company, and any Affiliate of any such Person, (iii) takes the initiative, directly or indirectly,
in founding or organizing the Company, either alone or in conjunction with one or more other
Persons, (iv) receives a material participation in the Company in connection with the founding or
organizing of the business of the Company, in consideration of services or property, or both
services and property, (v) has a substantial number of relationships and contacts with the
Company, (vi) possesses significant rights to control the Company’s Investments, (vii) receives
fees for providing services to the Company which are paid on a basis that is not customary in the
industry, or (viii) provides goods or services to the Company on a basis which was not negotiated
at arm’s-length with the Company. “Sponsor” does not include wholly independent third parties such
as attorneys, accountants and underwriters whose only compensation is for professional services.

     Stockholders. The registered holders of the Company’s Shares.

     Termination Date. The date of termination of this Agreement.

     Termination Event. The termination or nonrenewal of this Agreement (i) in connection
with a merger, sale of assets or transaction involving the Company pursuant to which a majority of
the Directors then in office are replaced or removed, (ii) by the Advisor for Good Reason or (iii)
by the Company and the Operating Partnership other than for Cause.

 - 6 - 

 

     Total Operating Expenses. All costs and expenses paid or incurred by the Company, as
determined under generally accepted accounting principles, that are in any way related to the
operation of the Company or its business, including asset management fees and other fees paid to
Advisors, but excluding (i) the expenses of raising capital such as Organization and Offering
Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees,
printing and other such expenses and taxes incurred in connection with the issuance, distribution,
transfer, registration and Listing, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures
such as depreciation, amortization and bad debt reserves, (v) incentive fees paid in compliance
with the NASAA REIT Guidelines; (vi) Acquisition Fees and Acquisition Expenses, (vii) real estate
commissions on the Sale of Real Property, and (viii) other fees and expenses connected with the
acquisition, disposition, management and ownership of real estate interests, mortgages or other
property (including the costs of foreclosure, insurance premiums, legal services, maintenance,
repair, and improvement of property). The definition of “Total Operating Expenses” set forth above
is intended to encompass only those expenses which are required to be treated as Total Operating
Expenses under the NASAA REIT Guidelines. As a result, and notwithstanding the definition set
forth above, any expense of the Company which is not part of Total Operating Expenses under the
NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes hereof.

     2%/25% Guidelines. 2%/25% Guidelines shall have the meaning set forth in Paragraph
12.

     2. APPOINTMENT. The Company and the Operating Partnership hereby appoint the Advisor to serve
as their advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby
accepts such appointment.

     3. DUTIES OF THE ADVISOR. The Advisor undertakes to use its best efforts to present to the
Company and the Operating
Partnership potential investment opportunities and to provide a continuing and suitable
investment program consistent with the investment objectives and policies of the Company as
determined and adopted from time to time by the Directors. In performance of this undertaking,
subject to the supervision of the Directors and consistent with the provisions of the Articles of
Incorporation and Bylaws of the Company and the Operating Partnership Agreement, the Advisor shall,
either directly or by engaging an Affiliate:

          (a) serve as the Company’s and the Operating Partnership’s investment and financial advisor;

          (b) provide the daily management for the Company and the Operating Partnership and perform and
supervise the various administrative functions reasonably necessary for the management of the
Company and the Operating Partnership;

          (c) investigate, select, and, on behalf of the Company and the Operating Partnership, engage
and conduct business with such Persons as the Advisor deems necessary to the proper performance of
its obligations hereunder, including but not limited to consultants, accountants, correspondents,
lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers,

 - 7 - 

 

insurance agents, banks,
builders, developers, property owners, real estate management companies, real estate operating
companies, securities investment advisors, mortgagors, and any and all agents for any of the
foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by
the Advisor necessary or desirable for the performance of any of the foregoing services, including
but not limited to entering into contracts in the name of the Company and the Operating Partnership
with any of the foregoing;

          (d) consult with the officers and Directors of the Company and assist the Directors in the
formulation and implementation of the Company’s financial policies, and, as necessary, furnish the
Directors with advice and recommendations with respect to the making of investments consistent with
the investment objectives and policies of the Company and in connection with any borrowings
proposed to be undertaken by the Company or the Operating Partnership;

          (e) subject to the provisions of Paragraph 4 hereof, (i) participate in formulating an
investment strategy and asset allocation framework, (ii) locate, analyze and select potential
Investments, (iii) structure and negotiate the terms and conditions of transactions pursuant to
which acquisitions and dispositions of Investments will be made; (iv) research, identify, review
and recommend acquisitions and dispositions of Investments to the Board and make investments on
behalf of the Company and the Operating Partnership in compliance with the investment objectives
and policies of the Company; (v) arrange for financing and refinancing and make other changes in
the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or
otherwise deal with, Investments; (vi) enter into leases and service contracts for Real Estate
Assets and, to the extent necessary, perform all other operational functions for the
maintenance and administration of such Real Estate Assets; (vii) actively oversee and manage
Investments for purposes of meeting the Company’s investment objectives; (vii) select Joint Venture
partners, structure corresponding agreements and oversee and monitor these relationships; (viii)
oversee Affiliated and non-Affiliated property managers who perform services for the Company or the
Operating Partnership; (ix) oversee Affiliated and non-Affiliated Persons with whom the Advisor
contracts to perform certain of the services required to be performed under this Agreement; (x)
manage accounting and other record-keeping functions for the Company and the Operating Partnership;
and (xi) recommend various liquidity events to the Board of Directors when appropriate.

          (f) upon request provide the Directors with periodic reports regarding prospective
investments;

          (g) make investments in and dispositions of Investments within the discretionary limits and
authority as granted by the Board;

          (h) negotiate on behalf of the Company and the Operating Partnership with banks or lenders for
Loans to be made to the Company and the Operating Partnership, and negotiate on behalf of the
Company and the Operating Partnership with investment banking firms and broker-dealers or negotiate
private sales of Shares or obtain Loans for the Company and the Operating Partnership, but in no
event in such a way so that the Advisor shall be acting

 - 8 - 

 

as broker-dealer or underwriter; and
provided, further, that any fees and costs payable to third parties incurred by the Advisor in
connection with the foregoing shall be the responsibility of the Company or the Operating
Partnership;

          (i) obtain reports (which may but are not required to be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of Investments or contemplated investments of
the Company and the Operating Partnership in Investments;

          (j) from time to time, or at any time reasonably requested by the Directors, make reports to
the Directors of its performance of services to the Company and the Operating Partnership under
this Agreement, including reports with respect to potential conflicts of interest involving the
Advisor or any of its affiliates;

          (k) provide the Company and the Operating Partnership with all necessary cash management
services;

          (l) do all things necessary to assure its ability to render the services described in this
Agreement;

          (m) deliver to or maintain on behalf of the Company copies of all appraisals obtained in
connection with the investments in any Real Estate Assets as may be required to be obtained by the
Board;

          (n) notify the Board of Directors of all proposed material transactions before they are
completed; and

          (o) effect any private placement of OP Units, tenancy-in-common or other interests in
Investments as may be approved by the Board.

          Notwithstanding the foregoing, the Advisor may delegate any of the foregoing duties to any
Person so long as the Advisor or any Affiliate remains responsible for the performance of the
duties set forth in this Paragraph 3.

     4. AUTHORITY OF ADVISOR.

          (a) Pursuant to the terms of this Agreement (including the restrictions included in this
Paragraph 4 and in Paragraph 7), and subject to the continuing and exclusive authority of the
Directors over the management of the Company, the Directors hereby delegate to the Advisor the
authority to perform the services described in Paragraph 3.

          (b) Notwithstanding the foregoing, any investment in Investments, including any financing of
such Investment, will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board, as the case may be.

 - 9 - 

 

          (c) If a transaction requires approval by the Independent Directors, the Advisor will deliver
to the Independent Directors all documents and other information required by them to properly
evaluate the proposed transaction.

          (d) The prior approval of a majority of the Independent Directors not otherwise interested in
the transaction and a majority of the Directors not otherwise interested in the transaction will be
required for each transaction to which the Advisor or its Affiliates is a party.

          (e) The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the
authority set forth in this Paragraph 4; provided, however, that such modification or revocation
shall be effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company or the Operating Partnership prior to
the date of receipt by the Advisor of such notification.

     5. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in its own
name for the account of the Company or the Operating Partnership or in the name of the Company and
the Operating Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company or the Operating
Partnership, under such terms and conditions as the Directors may approve, provided that no
funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to
time render appropriate accountings of such collections and payments to the Directors and to the
auditors of the Company.

     6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its activities
hereunder and make such records available for inspection by the Directors and by counsel, auditors
and authorized agents of the Company, at any time or from time to time during normal business
hours. The Advisor shall at all reasonable times have access to the books and records of the
Company and the Operating Partnership.

     7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the contrary
notwithstanding, the Advisor shall refrain from taking any action which, in its sole judgment made
in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the
Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over
the Company or its Shares, or otherwise not be permitted by the Articles of Incorporation or Bylaws
of the Company, except if such action shall be ordered by the Directors, in which case the Advisor
shall notify promptly the Directors of the Advisor’s judgment of the potential impact of such
action and shall refrain from taking such action until it receives further clarification or
instructions from the Directors. In such event the Advisor shall have no liability for acting in
accordance with the specific instructions of the Directors so given. Notwithstanding the
foregoing, the Advisor, its directors, officers, employees and stockholders, and stockholders,
directors and officers of the Advisor’s Affiliates shall not be liable to the Company or to the
Directors or Stockholders for any act or omission by the Advisor, its directors, officers or
employees, or stockholders, directors or officers of the Advisor’s Affiliates taken or omitted to
be taken in the performance of their duties under this Agreement except as provided in Paragraph 19
of this Agreement.

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     8. RELATIONSHIP WITH DIRECTORS. Subject to Paragraph 7 of this Agreement and to restrictions
advisable with respect to the qualification of the Company as a REIT, directors, officers and
employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate,
may serve as a Director and as officers of the Company, except that no director, officer or
employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall
receive any compensation from the Company for serving as a Director or officer other than
reasonable reimbursement for travel and related expenses incurred in attending meetings of the
Directors and no such Director shall be deemed an Independent Director for purposes of satisfying
the Director independence requirement set forth in the Articles of Incorporation.

     9. FEES.

          (a) Acquisition Fees. The Advisor shall receive an Acquisition Fee payable by the
Company as compensation for services rendered in connection with the investigation,
selection and acquisition (by purchase, investment or exchange) of Investments. The total
Acquisition Fees paid to the Advisor or its Affiliates shall equal 2.0% of the cost of all Real
Estate Assets, including Acquisition Expenses and any debt attributed to such investments. In the
case of investments in Real Estate Related Assets, the Acquisition Fee shall equal 2.0% of the
amount funded by the Company to acquire such investments, including any third-party expenses
related to such investments and any debt the Company uses to fund the acquisition or origination of
such investments. Notwithstanding the foregoing, the Advisor will not receive an acquisition fee
for any property the Company acquires from one of its Affiliates.

          (b) Real Estate Sales Commissions. If the Advisor or an Affiliate provides a
substantial amount of services in connection with the Sale of one or more Real Estate Assets, the
Advisor or an Affiliate shall receive a real estate sales commission equal to the lesser of (i)
one-half of a Competitive Real Estate Commission or (ii) 3.0% of the Contract Sales Price of such
Real Estate Assets. The Real Estate Commission may be paid in addition to real estate commissions
paid to non-Affiliates, provided that the total real estate commissions paid to all Persons by the
Company with respect to the sale of such Real Estate Assets shall not exceed an amount equal to the
lesser of (i) 6.0% of the Contract Sales Price of the Real Estate Assets or (ii) the Competitive
Real Estate Commission.

          (c) Asset Management Fee. The Advisor shall receive the Asset Management Fee as
compensation for services rendered in connection with the management of the Company’s assets. The
Asset Management Fee shall be calculated monthly and consists of a monthly fee of one-twelfth of
1.0% of the aggregate cost (before non-cash reserves and depreciation) of all Investments the
Company owns, including Acquisition Fees, origination fees, acquisition origination expenses and
any debt attributable to such Investments. With the exception of any portion of the Asset
Management Fee related to the disposition of Investments, which shall be payable at the time of
such disposition, the Asset Management Fee shall be payable on the first of each month.

          (d) Operating Partnership Interests. The Advisor has made a capital contribution of
$1,000 to the Operating Partnership in exchange for OP Units. In addition, an affiliate of the
Advisor has received OP Units constituting a separate series of limited partnership interests (the
“Special OP Units”). Upon the earliest to occur of the termination of this Agreement for
Cause, a Termination Event or a Listing, all of the Special OP Units shall be

 - 11 - 

 

redeemed by the
Operating Partnership in accordance with the terms of the Operating Partnership Agreement.

          (e) Exclusion of Certain Transactions. In the event the Company or the Operating
Partnership shall propose to enter into any transaction in which a Director or an officer of the
Company, and the Advisor, or any Affiliate of the Company, the Operating Partnership or the Advisor
has a direct or indirect interest, then such transaction shall be approved by a majority of the
Board of Directors and also by a majority of the Independent Directors.

     10. EXPENSES.

          (a) In addition to the compensation paid to the Advisor pursuant to Paragraph 9 hereof, the
Company or the Operating Partnership shall pay directly or reimburse the Advisor
for all of the expenses paid or incurred by the Advisor in connection with the services it
provides to the Company and the Operating Partnership pursuant to this Agreement, including, but
not limited to:

               (i) Organizational and Offering Expenses; provided, however, that the Advisor shall not be
eligible to receive reimbursement payments from the Company for Organizational and Offering
Expenses until such time as the total amount of the Pre-Paid Offering Expense has been withheld by
the Company from any Organizational and Offering Expenses owed to the Advisor, and to the extent
that the Company has not fully recovered the Pre-Paid Offering Expense through withheld
reimbursements within one year from the date the minimum offering requirements are met, the Advisor
shall be obligated to pay the Company an amount equal to the unrecovered portion of the Pre-Paid
Offering; and provided, further, that within 60 days after the end of the month in which the
Offering terminates, the Advisor shall reimburse the Company for any Organizational and Offering
Expenses reimbursement received by the Advisor pursuant to this Paragraph 10, to the extent that
such reimbursement exceeds the maximum amount permitted or, at the option of the Company, such
excess shall be subtracted from the next reimbursement of expense to be made by the Company
pursuant to this Paragraph 10. The Advisor shall be responsible for the payment of all the
Company’s Organizational and Offering Expenses in excess of the maximum amount permitted;

               (ii) Acquisition Expenses incurred in connection with the selection and acquisition of
Investments;

               (iii) the actual cost of goods and services used by the Company and obtained from entities not
affiliated with the Advisor;

               (iv) interest and other costs for borrowed money, including discounts, points and other
similar fees;

               (v) taxes and assessments on income of the Company or Investments;

               (vi) costs associated with insurance required in connection with the business of the Company
or by the Directors;

 - 12 - 

 

               (vii) expenses of managing and operating Investments owned by the Company, whether payable to
an Affiliate of the Company or a non-affiliated Person;

               (viii) all expenses in connection with payments to the Directors for attending meetings of the
Directors and Stockholders;

               (ix) expenses associated with a Listing, if applicable, or with the issuance and distribution
of Shares, such as selling commissions and fees, advertising expenses, taxes, legal and accounting
fees, listing and registration fees, and other Organization and Offering Expenses;

               (x) expenses connected with payments of Distributions in cash or otherwise made or caused to
be made by the Company to the Stockholders;

               (xi) expenses of organizing, revising, amending, converting, modifying, or terminating the
Company or the Articles of Incorporation;

               (xii) expenses of maintaining communications with Stockholders, including the cost of
preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements
and other reports required by governmental entities;

               (xiii) administrative service expenses (including (a) personnel costs; provided, however, that
no reimbursement shall be made for costs of personnel to the extent that such personnel perform
services in transactions for which the Advisor receives Acquisition Fees, Asset Management Fees,
property management fees or real estate sales commissions, and (b) the Company’s allocable share of
other overhead of the Advisor such as rent and utilities); and

               (xiv) audit, accounting and legal fees.

          (b) Expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
and payable pursuant to this Paragraph 10 shall be reimbursed no less than monthly to the Advisor.
The Advisor shall prepare a statement documenting the expenses of the Company and the Operating
Partnership and the calculation of the Asset Management Fee during each quarter, and shall deliver
such statement to the Company and the Operating Partnership within 45 days after the end of each
quarter.

     11. OTHER SERVICES. Should the Directors request that the Advisor or any director, officer or
employee thereof render services for the Company and the Operating Partnership other than set forth
in Paragraph 3, such services shall be separately compensated at such rates and in such amounts as
are agreed by the Advisor and the Independent Directors of the Company, subject to the limitations
contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the
terms of this Agreement.

     12. REIMBURSEMENT TO THE ADVISOR. The Company shall not reimburse the Advisor at the end of
any fiscal quarter in which Total Operating Expenses for the four

 - 13 - 

 

consecutive fiscal quarters then
ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of
Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year. Any
Excess
Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the
option of the Company, subtracted from the Total Operating Expenses reimbursed during the
subsequent fiscal quarter. If there is an Excess Amount in any Expense Year and the Independent
Directors determine that such excess was justified based on unusual and nonrecurring factors which
they deem sufficient, then (i) the Excess Amount may be carried over and included in Total
Operating Expenses in subsequent Expense Years and reimbursed to the Advisor in one or more of such
years, provided that there shall be sent to the Stockholders a written disclosure of such fact,
together with an explanation of the factors the Independent Directors considered in determining
that such excess expenses were justified. Such determination shall be reflected in the minutes of
the meetings of the Board of Directors. The Company will not reimburse the Advisor or its
Affiliates for services for which the Advisor or its Affiliates are entitled to receive Acquisition
Fees, Asset Management Fees, property management fees or real estate commissions. All figures used
in the foregoing computation shall be determined in accordance with generally accepted accounting
principles applied on a consistent basis.

     13. INVESTMENT OPPORTUNITIES.

In the event that Insight identifies a green property investment that is stabilized and
income-producing, for which the Company has sufficient uninvested funds, the property investment
will first be offered to the Company. Unless the Board of Directors determines not to proceed with
such property investment, the investment opportunity will not be presented to any other real estate
investment fund, program or Joint Venture owned, managed or advised by Insight or its Affiliates;
provided, however, that any such investment opportunity shall not be required to be presented to
the Company during any period in which the Company does not have sufficient available funds, or a
reasonable opportunity of obtaining available funds, with which to make the investment.

     14. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent the Advisor or
any of its Affiliates from engaging in or earning fees from other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the management of
other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, employee, or stockholder of the
Advisor or its Affiliates to engage in or earn fees from any other business or to render services
of any kind to any other partnership, corporation, firm, individual, trust or association and earn
fees for rendering such services. The Advisor may, with respect to any investment in which the
Company is a participant, also render advice and service to each and every other participant
therein, and earn fees for rendering such advice and service. Specifically, it is contemplated
that the Company may enter into joint ventures or other similar co-investment arrangements with
certain Persons, and pursuant to the agreements governing such joint ventures or arrangements, the
Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor
will earn fees for rendering such advice and service.

     The Advisor shall report to the Directors the existence of any condition or circumstance,
existing or anticipated, of which it has knowledge, which creates or could create a conflict of

 - 14 - 

 

interest between the Advisor’s obligations to the Company and its obligations to or its interest in
any other partnership, corporation, firm, individual, trust or association. The Advisor or its
Affiliates shall promptly disclose to the Directors knowledge of such condition or circumstance.
If the Advisor, Director or Affiliates thereof have sponsored other investment programs with
similar investment objectives which have investment funds available at the same time as the
Company, it shall be the duty of the Directors (including the Independent Directors) to ensure that
the Advisor and its Affiliates adopt the method approved by the Independent Directors, by which
investments are to be allocated to the competing investment entities and to use their best efforts
to ensure that such method is applied fairly to the Company.

     The Advisor may make such an investment only after (i) such investment has been offered to the
Company, the Operating Partnership and all public partnerships and other investment entities
Affiliated with the Company with funds available for such investment and (ii) such investment is
found to be unsuitable for investment by the Company, the Operating Partnership, such partnerships
and investment entities. The Advisor’s Affiliates may make such an investment subject to the
method approved by the Independent Directors, by which investments are to be allocated to the
competing investment entities.

     In the event that the Advisor is presented with a potential investment which might be made by
the Company or the Operating Partnership and by another investment entity which the Advisor advises
or manages, the Advisor shall consider the investment portfolio of each entity; cash flow of each
entity; the effect of the acquisition on the diversification of each entity’s portfolio; rental
payments during any renewal period; the estimated income tax effects of the purchase on each
entity, the policies of each entity relating to leverage; the funds of each entity available for
investment and the length of time such funds have been available for investment. In the event that
an investment opportunity becomes available which the Advisor determines is suitable for the
Company or the Operating Partnership based on the criteria set forth above, then the investment
opportunity shall be offered to the Company or the Operating Partnership, consistent with the
method approved by the Independent Directors. The Advisor may consider the investment for its own
investment only if such investment is deemed inappropriate for any investment entity which is
advised or managed by the Advisor, including the Company and the Operating Partnership.

     15. TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in force for a period of
one year from the date of the Prospectus pursuant to which our initial Offering is made, subject to
an unlimited number of successive one-year renewals upon mutual consent of the parties. It is the
duty of the Directors to evaluate the performance of the Advisor annually before renewing the
Agreement, and each such renewal shall be for a term of no more than one year.

     16. TERMINATION BY THE PARTIES. This Agreement may be terminated (i) immediately by the
Company or the Operating Partnership for Cause or upon the bankruptcy of the Advisor, (ii) upon 60
days
written notice without Cause and without penalty by a majority of the Independent Directors of
the Company or (iii) upon 60 days written notice with Good Reason by the Advisor.

 - 15 - 

 

     17. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of a majority of the Directors (including a majority of the Independent
Directors). The Advisor may assign any rights to receive fees or other payments under this
Agreement to any Person without obtaining the approval of the Directors. This Agreement shall not
be assigned by the Company or the Operating Partnership without the consent of the Advisor, except
in the case of an assignment by the Company or the Operating Partnership to a corporation, limited
partnership or other organization which is a successor to all of the assets, rights and obligations
of the Company or the Operating Partnership, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as the Company and the
Operating Partnership are bound by this Agreement.

     18. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

          (a) After the Termination Date, the Advisor shall not be entitled to compensation for further
services hereunder except it shall be entitled to receive from the Company or the Operating
Partnership within 30 days after the effective date of such termination all unpaid reimbursements
of expenses and all earned but unpaid fees payable to the Advisor prior to termination of this
Agreement, subject to the 2%/25% Guidelines to the extent applicable.

          (b) The Advisor shall promptly upon termination:

               (i) pay over to the Company and the Operating Partnership all money collected and held for the
account of the Company and the Operating Partnership pursuant to this Agreement, after deducting
any accrued compensation and reimbursement for its expenses to which it is then entitled;

               (ii) deliver to the Board of Directors a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period following the
date of the last accounting furnished to the Board of Directors;

               (iii) deliver to the Board of Directors all assets, including all Investments, and documents
of the Company and the Operating Partnership then in the custody of the Advisor; and

               (iv) cooperate with the Company and the Operating Partnership to provide an orderly management
transition.

     19. INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. The Company and the
Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, including
their respective officers, directors, partners and employees (the “Indemnitees,” and each
an “Indemnitee”), from all liability, claims, damages or losses arising in the performance
of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the
extent such liability, claims, damages or losses and related expenses are not fully reimbursed by
insurance, and to the extent that such indemnification would not be inconsistent with the laws of
the State of Maryland, the Articles of Incorporation of the Company or the provisions of Section
II.G of the NASAA REIT Guidelines.

 - 16 - 

 

Notwithstanding the foregoing, the Company and the Operating
Partnership shall not provide for indemnification of an Indemnitee for any loss or liability
suffered by such Indemnitee, nor shall they provide that an Indemnitee be held harmless for any
loss or liability suffered by the Company and the Operating Partnership, unless all of the
following conditions are met:

          (a) The Indemnitee has determined, in good faith, that the course of conduct that caused the
loss or liability was in the best interest of the Company and the Operating Partnership;

          (b) The Indemnitee was acting on behalf of, or performing services for, the Company or the
Operating Partnership;

          (c) Such liability or loss was not the result of negligence or willful misconduct by the
Indemnitee; and

          (d) Such indemnification or agreement to hold harmless is recoverable only out of the
Company’s net assets and not from the Stockholders.

     Notwithstanding the foregoing, an Indemnitee shall not be indemnified by the Company and the
Operating Partnership for any losses, liabilities or expenses arising from or out of an alleged
violation of federal or state securities laws by such Indemnitee unless one or more of the
following conditions are met:

          (a) There has been a successful adjudication on the merits of each count involving alleged
securities law violations as to the Indemnitee;

          (b) Such claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the Indemnitee; or

          (c) A court of competent jurisdiction approves a settlement of the claims against the
Indemnitee and finds that indemnification of the settlement and the related costs should be made,
and the court considering the request for indemnification has been advised of the position of the
Securities and Exchange Commission and of the published position of any state securities regulatory
authority in which securities of the Company or the Operating Partnership were offered or sold as
to indemnification for violation of securities laws.

     In addition, the advancement of the Company’s or the Operating Partnership’s funds to an
Indemnitee for legal expenses and other costs incurred as a result of any legal action for which
indemnification is being sought is permissible only if all of the following conditions are
satisfied:

          (a) The legal action relates to acts or omissions with respect to the performance of duties or
services on behalf of the Company or the Operating Partnership;

 - 17 - 

 

          (b) The legal action is initiated by a third party who is not a Stockholder or the legal
action is initiated by a stockholder acting in such stockholder’s capacity as such and a court of
competent jurisdiction specifically approves such advancement; and

          (c) The Indemnitee undertakes to repay the advanced funds to the Company or the Operating
Partnership, together with the applicable legal rate of interest thereon, in cases in which such
Indemnitee is found not to be entitled to indemnification.

     20. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold harmless the Company and
the Operating Partnership from contract or other liability, claims, damages, taxes or losses and
related expenses including attorneys’ fees, to the extent that such liability, claims, damages,
taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by
reason of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross
negligence or reckless disregard of its duties, but the Advisor shall not be held responsible for
any action of the Board of Directors in following or declining to follow any advice or
recommendation given by the Advisor.

     21. NOTICES. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to
whom it is given, and shall be given by being delivered by hand, by facsimile transmission, by
courier or overnight carrier or by registered or certified mail to the addresses set forth herein:

	 	 	 
	     To the Directors and to the Company:

	 	Green Realty Trust, Inc.
	 

	 	120 N. LaSalle Street
	 

	 	35th Floor
	 

	 	Chicago, Illinois 60602
	 

	 	Facsimile: (312) 867-9751
	 

	 	Attention: Wayne R. Hannah III
	 
	 	 
	     To the Operating Partnership:

	 	Green REIT Operating Partnership, LP
	 

	 	120 N. LaSalle Street
	 

	 	35th Floor
	 

	 	Chicago, Illinois 60602
	 

	 	Facsimile: (312) 867-9751
	 

	 	Attention: Wayne R. Hannah III
	 
	 	 
	     To the Advisor:

	 	Insight Green REIT Advisor, LLC
	 

	 	120 N. LaSalle Street
	 

	 	35th Floor
	 

	 	Chicago, Illinois 60602
	 

	 	Facsimile: (312) 867-9751
	 

	 	Attention: Wayne R. Hannah III

     Any party may at any time give notice in writing to the other parties of a change in its
address for the purposes of this Paragraph 21.

 - 18 - 

 

     22. MODIFICATION. This Agreement shall not be changed, modified, terminated, or discharged,
in whole or in part, except by an instrument in writing signed by the parties hereto, or their
respective successors or assignees.

     23. SEVERABILITY. The provisions of this Agreement are independent of and severable from each
other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the
fact that for any reason any other or others of them may be invalid or unenforceable in whole or in
part.

     24. CONSTRUCTION. The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of Maryland.

     25. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among
the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof. This Agreement may not be modified or amended other than by an agreement in
writing.

     26. INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the part of a party to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     27. GENDER. Words used herein regardless of the number and gender specifically used, shall be
deemed and construed to include any other number, singular or plural, and any other gender,
masculine, feminine or neuter, as the context requires.

     28. TITLES NOT TO AFFECT INTERPRETATION. The titles of paragraphs and subparagraphs contained
in this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

     29. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original as against any party whose signature appears
thereon, and all of which shall together constitute one and the same instrument. This Agreement
shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories.

     30. INITIAL INVESTMENT. The Advisor has made a capital contribution of $1,000 to the
Operating Partnership in exchange for OP Units. The Advisor may not sell any of the OP Units while
the Advisor acts in such advisory capacity to the Company, provided, that such OP Units may be
transferred to Affiliates of the Advisor. The restrictions included above shall not apply to any
other securities acquired by the Advisor or its Affiliates. The Advisor shall not vote any Shares
it now owns, or hereafter acquires, in any vote for the election of

 - 19 - 

 

Directors or any vote regarding
the approval or termination of any contract with the Advisor or any of its Affiliates.

 - 20 - 

 

          IN WITNESS WHEREOF, the parties hereto have executed this Advisory Agreement as of the date
and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	Green Realty Trust, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Wayne R. Hannah III	 	 
	 	 	 	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Green REIT Operating Partnership, LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Green Realty Trust, Inc., Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Wayne R. Hannah III	 	 
	 

	 	 	 	 	 	     President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Insight Green REIT Advisor, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Insight Real Estate, LLC, Its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Insight Real Estate, LLC, solely in connection with the obligations set forth
in Section 13	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:EX-10.3 LIMITED PARTNERSHIP AGREEMENT

 

Exhibit 10.3

LIMITED PARTNERSHIP AGREEMENT

OF

GREEN REIT OPERATING PARTNERSHIP, LP

A DELAWARE LIMITED PARTNERSHIP

November 9, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1. DEFINED TERMS	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE 2. PARTNERSHIP FORMATION AND IDENTIFICATION	 	 	10	 
	2.1
	 	Formation	 	 	10	 
	2.2
	 	Name, Office and Registered Agent	 	 	10	 
	2.3
	 	Partners	 	 	10	 
	2.4
	 	Term and Dissolution	 	 	11	 
	2.5
	 	Filing of Certificate and Perfection of Limited Partnership	 	 	11	 
	2.6
	 	Certificates Describing Partnership Units and Special Partnership Units	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE 3. BUSINESS OF THE PARTNERSHIP	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 4. CAPITAL CONTRIBUTIONS AND ACCOUNTS	 	 	12	 
	4.1
	 	Capital Contributions	 	 	12	 
	4.2
	 	Additional Capital Contributions and Issuances of Additional Partnership Interests	 	 	12	 
	4.3
	 	Additional Funding	 	 	14	 
	4.4
	 	Capital Accounts	 	 	14	 
	4.5
	 	Percentage Interests	 	 	15	 
	4.6
	 	No Interest On Contributions	 	 	15	 
	4.7
	 	Return Of Capital Contributions	 	 	15	 
	4.8
	 	No Third Party Beneficiary	 	 	15	 
	4.9
	 	Special Partnership Units	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 5. PROFITS AND LOSSES; DISTRIBUTIONS	 	 	16	 
	5.1
	 	Allocation of Profit and Loss	 	 	16	 
	5.2
	 	Distribution of Cash	 	 	18	 
	5.3
	 	REIT Distribution Requirements	 	 	19	 
	5.4
	 	No Right to Distributions in Kind	 	 	20	 
	5.5
	 	Limitations on Return of Capital Contributions	 	 	20	 
	5.6
	 	Distributions Upon Liquidation	 	 	20	 
	5.7
	 	Substantial Economic Effect	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 6. RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER	 	 	20	 
	6.1
	 	Management of the Partnership	 	 	20	 
	6.2
	 	Delegation of Authority	 	 	23	 
	6.3
	 	Indemnification and Exculpation of Indemnitees	 	 	23	 
	6.4
	 	Liability of the General Partner	 	 	24	 
	6.5
	 	Reimbursement of General Partner	 	 	25	 
	6.6
	 	Outside Activities	 	 	25	 
	6.7
	 	Employment or Retention of Affiliates	 	 	26	 
	6.8
	 	General Partner Participation	 	 	26	 
	6.9
	 	Title to Partnership Assets	 	 	26	 
	6.10
	 	Miscellaneous	 	 	27	 
	6.11
	 	No Duplication of Fees or Expenses	 	 	27	 

 

 

	 	 	 	 	 	 	 
	ARTICLE 7. CHANGES IN GENERAL PARTNER	 	 	27	 
	7.1
	 	Transfer of the General Partner’s Partnership Interest	 	 	27	 
	7.2
	 	Admission of a Substitute or Additional General Partner	 	 	29	 
	7.3
	 	Effect of Bankruptcy, Withdrawal,
Death or Dissolution of a General Partner	 	 	29	 
	7.4
	 	Removal of a General Partner	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE 8. RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS	 	 	31	 
	8.1
	 	Management of the Partnership	 	 	31	 
	8.2
	 	Power of Attorney	 	 	31	 
	8.3
	 	Limitation on Liability of Limited Partners	 	 	31	 
	8.4
	 	Ownership by Limited Partner of Corporate General Partner or Affiliate	 	 	31	 
	8.5
	 	Redemption Right	 	 	31	 
	8.6
	 	Redemption of Special Partnership Units	 	 	33	 
	8.7
	 	Distribution Reinvestment Plan	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE 9. TRANSFERS OF LIMITED PARTNERSHIP INTERESTS	 	 	34	 
	9.1
	 	Purchase for Investment	 	 	34	 
	9.2
	 	Restrictions on Transfer of Limited Partnership Interests	 	 	34	 
	9.3
	 	Admission of Substitute Limited Partner	 	 	35	 
	9.4
	 	Rights of Assignees of Partnership Interests	 	 	36	 
	9.5
	 	Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner	 	 	37	 
	9.6
	 	Joint Ownership of Interests	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE 10. BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS	 	 	37	 
	10.1
	 	Books and Records	 	 	37	 
	10.2
	 	Custody of Partnership Funds; Bank Accounts	 	 	37	 
	10.3
	 	Fiscal and Taxable Year	 	 	38	 
	10.4
	 	Annual Tax Information and Report	 	 	38	 
	10.5
	 	Tax Matters Partner; Tax Elections; Special Basis Adjustments	 	 	38	 
	10.6
	 	Reports to Limited Partners	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE 11. AMENDMENT OF AGREEMENT; MERGER	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE 12. GENERAL PROVISIONS	 	 	39	 
	12.1
	 	Notices	 	 	39	 
	12.2
	 	Survival of Rights	 	 	40	 
	12.3
	 	Additional Documents	 	 	40	 
	12.4
	 	Severability	 	 	40	 
	12.5
	 	Entire Agreement	 	 	40	 
	12.6
	 	Pronouns and Plurals	 	 	40	 
	12.7
	 	Headings	 	 	40	 
	12.8
	 	Counterparts	 	 	40	 
	12.9
	 	Governing Law	 	 	41	 
	 
	 	 	 	 	 	 
	EXHIBIT A     CONTRIBUTIONS AND INTEREST	 	 	A-1	 
	 
	 	 	 	 	 	 
	EXHIBIT B     NOTICE OF EXERCISE OF REDEMPTION RIGHT	 	 	B-1	 

ii

 

LIMITED PARTNERSHIP AGREEMENT

OF

GREEN REIT OPERATING PARTNERSHIP, LP

RECITALS

     This Limited Partnership Agreement (this “Agreement”) is entered into this 9th day of
November, 2007, between Green Realty Trust, Inc., a Maryland corporation (the “General
Partner”) and the Limited Partners set forth on Exhibit A attached hereto. Capitalized
terms used herein but not otherwise defined shall have the meanings given them in Article 1.

AGREEMENT

     WHEREAS, the General Partner intends to qualify as a real estate investment trust under the
Internal Revenue Code of 1986, as amended;

     WHEREAS, Green REIT Operating Partnership, LP (the “Partnership”), was formed on October 29,
2007 as a limited partnership under the laws of the State of Delaware, pursuant to a Certificate of
Limited Partnership filed with the Office of the Secretary of State of the State of Delaware on
October 29, 2007;

     WHEREAS, the General Partner desires to conduct its current and future business through the
Partnership;

     WHEREAS, in furtherance of the foregoing, the General Partner desires to contribute cash or
assets to the Partnership from time to time;

     WHEREAS, in exchange for the General Partner’s contribution of cash or assets, the parties
desire that the Partnership issue Partnership Units to the General Partner in accordance with the
terms of this Agreement;

     WHEREAS, the Limited Partners will contribute cash or certain of their property to the
Partnership in exchange for Partnership Units in accordance with the terms of this Agreement;

     WHEREAS, the Special OP Unitholders will receive Special Partnership Units from the
Partnership;

     WHEREAS, in furtherance of the Partnership’s business, the Partnership will acquire Properties
and other assets from time to time by means of the purchase or contribution of such Properties or
other assets to the Partnership by the owners thereof in exchange for Partnership Units; and

     WHEREAS, the parties hereto wish to establish herein their respective rights and obligations
in connection with all of the foregoing and certain other matters;

     NOW, THEREFORE, in consideration of the foregoing, of mutual covenants between the parties
hereto, and of other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE 1.

DEFINED TERMS

     The following defined terms used in this Agreement shall have the meanings specified below:

     “Act” means the Delaware Revised Uniform Limited Partnership Act, as it may be amended
from time to time.

     “Additional Funds” has the meaning set forth in Section 4.3 hereof.

     “Additional Securities” means any additional REIT Shares (other than REIT Shares
issued in connection with a redemption pursuant to Section 8.5 hereof or REIT Shares issued
pursuant to a dividend reinvestment plan of the General Partner) or rights, options, warrants or
convertible or exchangeable securities containing the right to subscribe for or purchase REIT
Shares, as set forth in Section 4.2(a)(ii).

     “Administrative Expenses” means (i) all administrative and operating costs and
expenses incurred by the Partnership, (ii) those administrative costs and expenses of the General
Partner, including any salaries or other payments to directors, officers or employees of the
General Partner, and any accounting and legal expenses of the General Partner, which expenses, the
Partners have agreed, are expenses of the Partnership and not the General Partner, and (iii) to the
extent not included in clause (ii) above, REIT Expenses; provided, however, that
Administrative Expenses shall not include any administrative costs and expenses incurred by the
General Partner that are attributable to Properties or partnership interests in a Subsidiary
Partnership that are owned by the General Partner directly.

     “Advisor or Advisors” means the Person or Persons, if any, appointed, employed or
contracted with by the General Partner and responsible for directing or performing the day-to-day
business affairs of the General Partner, including any Person to whom the Advisor subcontracts
substantially all of such functions.

     “Advisory Agreement” means the agreement between the General Partner and the Advisor
pursuant to which the Advisor will direct or perform the day-to-day business affairs of the General
Partner.

     “Affiliate” means, with respect to any Person, (i) any Person directly or indirectly,
owning, controlling or holding with the power to vote 10% of more of the outstanding voting
securities of such other Person; (ii) any Person 10% or more of whose outstanding voting securities
are directly or indirectly owned, controlled or held, with the power to vote, by such other Person;
(iii) any Person directly or indirectly controlling, controlled by or under common control with
such other Person; (iv) any executive officer, director, trustee or general partner of such other
Person; and (v) any legal entity for which such Person acts an executive officer, director, trustee
or general partner.

     “Aggregate Share Ownership Limit” means not more than 9.8% in value of the aggregate
of the outstanding shares of stock of the General Partner of any class or series, including common
shares or preferred shares.

     “Agreed Value” means the fair market value of a Partner’s non-cash Capital
Contribution as of the date of contribution as agreed to by such Partner and the General Partner.
The names and addresses of the Partners, number of Partnership Units or Special Partnership Units
issued to each Partner, and the Agreed Value of non-cash Capital Contributions as of the date of
contribution are set forth on Exhibit A.

2

 

     “Agreement” means this Limited Partnership Agreement, as amended, modified
supplemented or restated from time to time, as the context requires.

     “Applicable Percentage” has the meaning provided in Section 8.5(b) hereof.

     “Articles of Incorporation” means the Articles of Incorporation of the General Partner
filed with the Maryland State Department of Assessments and Taxation, as amended or restated from
time to time.

     “Capital Account” has the meaning provided in Section 4.4 hereof.

     “Capital Contribution” means the total amount of cash, cash equivalents, and the
Agreed Value of any Property or other asset (other than cash) contributed or agreed to be
contributed, as the context requires, to the Partnership by each Partner pursuant to the terms of
this Agreement. Any reference to the Capital Contribution of a Partner shall include the Capital
Contribution made by a predecessor holder of the Partnership Interest of such Partner.

     “Carrying Value” means, with respect to any asset of the Partnership, the asset’s
adjusted net basis for federal income tax purposes or, in the case of any asset contributed to the
Partnership, the fair market value of such asset at the time of contribution, reduced by any
amounts attributable to the inclusion of liabilities in basis pursuant to Section 752 of the Code,
except that the Carrying Values of all assets may, at the discretion of the General Partner, be
adjusted to equal their respective fair market values (as determined by the General Partner), in
accordance with the rules set forth in Regulations Section 1.704-1(b)(2)(iv)(f), as provided for in
Section 4.4. In the case of any asset of the Partnership that has a Carrying Value that differs
from its adjusted tax basis, the Carrying Value shall be adjusted by the amount of depreciation,
depletion and amortization calculated for purposes of the definition of Profit and Loss rather than
the amount of depreciation, depletion and amortization determined for federal income tax purposes.

     “Cash Amount” means an amount of cash per Partnership Unit equal to the lesser of (i)
the Value of the REIT Shares Amount on the date of receipt by the General Partner of a Notice of
Redemption or (ii) the applicable Redemption Price determined by the General Partner.

     “Certificate” means any instrument or document that is required under the laws of the
State of Delaware, or any other jurisdiction in which the Partnership conducts business, to be
signed and sworn to by the Partners of the Partnership (either by themselves or pursuant to the
power-of-attorney granted to the General Partner in Section 8.2 hereof) and filed for recording in
the appropriate public offices within the State of Delaware or such other jurisdiction to perfect
or maintain the Partnership as a limited partnership, to effect the admission, withdrawal, or
substitution of any Partner of the Partnership, or to protect the limited liability of the Limited
Partners as limited partners under the laws of the State of Delaware or such other jurisdiction.

     “Code” means the Internal Revenue Code of 1986, as amended, and as hereafter amended
from time to time. Reference to any particular provision of the Code shall mean that provision in
the Code at the date hereof and any successor provision of the Code.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Common Share Ownership Limit” means not more than 9.8% (in value or in number of the
aggregate of the outstanding shares of stock of the General Partner of any class or series,
including common shares or preferred shares, whichever is more restrictive) of the aggregate of the
REIT Shares.

3

 

     “Conversion Factor” means 1.0, provided that in the event that the General Partner (i)
declares or pays a dividend on its outstanding REIT Shares in REIT Shares or makes a distribution
to all holders of its outstanding REIT Shares in REIT Shares, (ii) subdivides its outstanding REIT
Shares, or (iii) combines its outstanding REIT Shares into a smaller number of REIT Shares, the
Conversion Factor shall be adjusted by multiplying the Conversion Factor by a fraction, the
numerator of which shall be the number of REIT Shares issued and outstanding on the record date for
such dividend, distribution, subdivision or combination (assuming for such purposes that such
dividend, distribution, subdivision or combination has occurred as of such time), and the
denominator of which shall be the actual number of REIT Shares (determined without the above
assumption) issued and outstanding on such date and, provided further, that in the event that an
entity other than an Affiliate of the General Partner shall become General Partner pursuant to any
merger, consolidation or combination of the General Partner with or into another entity (the
“Successor Entity”), the Conversion Factor shall be adjusted by multiplying the Conversion
Factor by the number of shares of the Successor Entity into which one REIT Share is converted
pursuant to such merger, consolidation or combination, determined as of the date of such merger,
consolidation or combination. Any adjustment to the Conversion Factor shall become effective
immediately after the effective date of such event retroactive to the record date, if any, for such
event; provided, however, that if the General Partner receives a Notice of Redemption after the
record date, but prior to the effective date of such dividend, distribution, subdivision or
combination, the Conversion Factor shall be determined as if the General Partner had received the
Notice of Redemption immediately prior to the record date for such dividend, distribution,
subdivision or combination.

     “Director” means a director of the General Partner.

     “Event of Bankruptcy” as to any Person means the filing of a petition for relief as to
such Person as debtor or bankrupt under the Bankruptcy Code of 1978 or similar provision of law of
any jurisdiction (except if such petition is contested by such Person and has been dismissed within
90 days); insolvency or bankruptcy of such Person as finally determined by a court proceeding;
filing by such Person of a petition or application to accomplish the same or for the appointment of
a receiver or a trustee for such Person or a substantial part of his assets; commencement of any
proceedings relating to such Person as a debtor under any other reorganization, arrangement,
insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or
hereinafter in effect, either by such Person or by another, provided that if such proceeding is
commenced by another, such Person indicates his approval of such proceeding, consents thereto or
acquiesces therein, or such proceeding is contested by such Person and has not been finally
dismissed within 90 days.

     “Excepted Holder Limit” means the percentage limit of the outstanding shares of stock
of the General Partner of any class or series, including common shares or preferred shares,
established by the board of directors of the General Partner for a Person that is exempt from the
Aggregate Share Ownership Limit and the Common Share Ownership Limit.

     “General Partner” means Green Realty Trust, Inc., a Maryland corporation, and any
Person who becomes a substitute or additional General Partner as provided herein, and any of their
successors as General Partner.

     “General Partnership Interest” means a Partnership Interest held by the General
Partner that is a general partnership interest.

     “Indemnitee” means (i) any Person made a party to a proceeding by reason of its status
as the General Partner or a director, officer or employee of the General Partner or the
Partnership, and (ii) such other Persons (including Affiliates of the General Partner or the
Partnership) as the General Partner may designate from time to time, in its sole and absolute
discretion.

4

 

     “Independent Directors” means a Director who is not on the date of determination, and
within the last two years from the date of determination has not been, directly or indirectly
associated with the sponsor of the General Partner or the Advisor by virtue of (i) ownership of an
interest in the sponsor, the Advisor or any of their Affiliates, other than the General Partner,
(ii) employment by the sponsor, the Advisor or any of their Affiliates, (iii) service as an officer
or director of the sponsor, the Advisor or any of their Affiliates, other than as a Director, (iv)
performance of services, other than as a Director, for the General Partner, (v) service as a
director or trustee of more than three real estate investment trusts organized by the sponsor or
advised by the Advisor or (vi) maintenance of a material business or professional relationship with
the sponsor, the Advisor or any of their Affiliates. A business or professional relationship is
considered “material” if the aggregate gross revenue derived by the Director from the sponsor, the
Advisor and their Affiliates exceeds five percent of either the Director’s annual gross revenue
during either of the last two years or the Director’s net worth on a fair market value basis. An
indirect association with the sponsor or the Advisor shall include circumstances in which a
Director’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in-law or
brother- or sister-in-law is or has been associated with the sponsor, the Advisor, any of their
Affiliates or the General Partner.

     “Joint Venture” means any joint venture or general partnership arrangement in which
the Partnership is a co-venturer or general partner which are established to acquire one or more
Real Estate Assets.

     “Limited Partner” means any Person named as a Limited Partner on Exhibit A
attached hereto, and any Person who becomes a Substitute Limited Partner, in such Person’s capacity
as a Limited Partner in the Partnership.

     “Limited Partnership Interest” means the ownership interest of a Limited Partner in
the Partnership at any particular time, including the right of such Limited Partner to any and all
benefits to which such Limited Partner may be entitled as provided in this Agreement and in the
Act, together with the obligations of such Limited Partner to comply with all the provisions of
this Agreement and of such Act.

     “Listing” means the listing of the shares of the General Partner’s stock, previously
issued by the General Partner pursuant to an effective registration statement and such shares
currently registered with the Commission pursuant to an effective registration statement, on a
national securities exchange or the receipt by holders of shares of the General Partner’s stock of
securities that are listed on a national securities exchange in exchange for shares of the General
Partner’s stock. Upon such Listing, the shares shall be deemed “Listed”.

     “Loss” has the meaning provided in Section 5.1(h) hereof.

     “Minimum Limited Partnership Interest” means the lesser of (i) 1% or (ii) if the total
Capital Contributions to the Partnership exceeds $50 million, 1% divided by the ratio of the total
Capital Contributions to the Partnership to $50 million; provided, however, that the Minimum
Limited Partnership Interest shall not be less than 0.2% at any time.

     “Mortgages” means, in connection with any mortgage financing provided, invested in,
participated in or purchased by the Partnership, all of the notes, deeds of trust, mortgages,
security interests or other evidences of indebtedness or obligations, which are secured by or,
collateralized by, or applicable to any Real Estate Assets owned by the borrowers under such notes,
deeds of trust, mortgages, security interests or other evidences of indebtedness or obligations.

5

 

     “Net Sales Proceeds” means (i) in the case of a transaction described in clause (A)(i)
of the definition of Sale, the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Partnership, including all real estate commissions, closings costs
and legal fees and expenses; (A)(ii) in the case of a transaction described in clause (ii) of the
definition of Sale, the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Partnership, including any legal fees and expenses and other
selling expenses incurred in connection with such transaction; (iii) in the case of a transaction
described in clause (A)(iii) of the definition of Sale, the proceeds of any such transaction
actually distributed to the Partnership from the Joint Venture less the amount of any selling
expenses incurred by or on behalf of the Partnership (other than those paid by the Joint Venture);
(iv) in the case of a transaction described in clause (A)(iv) of the definition of Sale, the
proceeds of any such transaction (including the aggregate of all payment under a Mortgage on or in
satisfaction thereof other than regularly schedule interest payments) less the amount of selling
expenses incurred by or on behalf of the Partnership, including all commissions, closing costs and
legal fees and expenses; (v) in the case of a transaction described in clause (A)(v) of the
definition of Sale, the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Partnership, including any legal fees and expenses and other
selling expenses incurred in connection with such transaction; and (vi) in the case of a
transaction described in clause (B) of the definition of Sale, the proceeds of such transaction or
series of transactions less all amounts generated thereby which are reinvested in one or more
assets as described in clause (B) of the definition of Sale within 180 days thereafter and less the
amount of any real estate commissions, closing costs, and legal fees and expenses and other selling
expenses incurred by or allocated to the Partnership in connection with such transaction or series
of transactions. Net Sale Proceeds shall also include any amounts that the General Partner
determines, in its discretion, to be economically equivalent to the proceeds of a Sale. Net Sales
Proceeds shall not include any reserves established by the Partnership in its sole discretion.

     “Nonrecourse Liability” shall have the meaning set forth in Regulations Sections
1.704-2(b)(3) and 1.752-1(a)(2).

     “Notice of Redemption” means the Notice of Exercise of Redemption Right substantially
in the form attached as Exhibit B hereto.

     “Offer” has the meaning set forth in Section 7.1(c) hereof.

     “Offering” means the initial offer and sale of REIT Shares to the public.

     “OP Unitholders” means all holders of Partnership Interests other than the Special OP
Unitholders.

     “Original Limited Partner” means the Limited Partners designated as “Original Limited
Partners” on Exhibit A hereto.

     “Partner” means any General Partner or Limited Partner.

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

     “Partner Nonrecourse Debt Minimum Gain” shall have the meaning set forth in
Regulations Section 1.704-2(i)(2).

     “Partner Nonrecourse Deductions” shall have the meaning set forth in Regulations
Sections 1.704-2(i)(1) and 1.704-2(i)(2).

6

 

     “Partnership” means Green REIT Operating Partnership, LP, a Delaware limited
partnership.

     “Partnership Interest” means an ownership interest in the Partnership held by either a
Limited Partner or the General Partner and includes any and all benefits to which the holder of
such a Partnership Interest may be entitled as provided in this Agreement, together with all
obligations of such Person to comply with the terms and provisions of this Agreement.

     “Partnership Minimum Gain” shall have the meaning set forth in Regulations Sections
1.704-2(b)(2) and 1.704-2(d).

     “Partnership Record Date” means the record date established by the General Partner for
the distribution of cash pursuant to Section 5.2 hereof, which record date shall be the same as the
record date established by the General Partner for a distribution to its stockholders of some or
all of its portion of such distribution.

     “Partnership Unit” means a fractional, undivided share of the Partnership Interests of
all Partners issued hereunder excluding the Partnership Interests represented by Special
Partnership Units. The allocation of Partnership Units among the Partners shall be as set forth on
Exhibit A, as such Exhibit may be amended from time to time.

     “Percentage Interest” means the percentage ownership interest in the Partnership of
each Partner, as determined by dividing the Partnership Units owned by a Partner by the total
number of Partnership Units then outstanding. The Percentage Interest of each Partner shall be as
set forth on Exhibit A, as such Exhibit may be amended from time to time.

     “Person” means any individual, partnership, limited liability company, corporation,
joint venture, trust or other entity.

     “Profit” has the meaning provided in Section 5.1(h) hereof.

     “Property” means any Real Estate Asset or other investment in which the Partnership
holds an ownership interest.

     “Real
Estate Assets” means unimproved and improved real property, real estate –
related assets and any direct or indirect interest therein (including, without limitation, fee or
leasehold interests, options, leases, partnership and joint venture interests, equity and debt
securities of entities that own real estate, first or second mortgages on real property, mezzanine
loans secured by junior liens on real property, preferred equity interests secured by a property
owner’s interest in real property and other contractual rights in real estate.

     “Redemption Price” means the Value of the REIT Shares Amount on the date of receipt by
the General Partner of a Notice of Redemption multiplied by any discount determined by the General
Partner, including but not limited to, any discount based upon the combined number of years that
the applicable Partner has held the Partnership Units offered for redemption.

     “Redemption Right” has the meaning provided in Section 8.5(a) hereof.

     “Regulations” means the Federal income tax regulations promulgated under the Code, as
amended and as hereafter amended from time to time. Reference to any particular provision of the
Regulations shall mean that provision of the Regulations on the date hereof and any successor
provision of the Regulations.

7

 

     “Regulatory Allocations” has the meaning set forth in Section 5.1(i) hereof.

     “REIT” means a real estate investment trust under Sections 856 through 860 of the
Code.

     “REIT Expenses” means (i) costs and expenses relating to the formation and continuity
of existence and operation of the General Partner and any Subsidiaries thereof (which Subsidiaries
shall, for purposes hereof, be included within the definition of General Partner), including taxes,
fees and assessments associated therewith, any and all costs, expenses or fees payable to any
director, officer, or employee of the General Partner, (ii) costs and expenses relating to any
public offering and registration of securities by the General Partner and all statements, reports,
fees and expenses incidental thereto, including, without limitation, underwriting discounts and
selling commissions applicable to any such offering of securities, and any costs and expenses
associated with any claims made by any holders of such securities or any underwriters or placement
agents thereof, (iii) costs and expenses associated with any repurchase of any securities by the
General Partner, (iv) costs and expenses associated with the preparation and filing of any periodic
or other reports and communications by the General Partner under federal, state or local laws or
regulations, including filings with the Commission, (v) costs and expenses associated with
compliance by the General Partner with laws, rules and regulations promulgated by any regulatory
body, including the Commission and any securities exchange, (vi) costs and expenses associated with
any 401(k) plan, incentive plan, bonus plan or other plan providing for compensation for the
employees of the General Partner, (vii) costs and expenses incurred by the General Partner relating
to any issuing or redemption of Partnership Interests, and (viii) all other operating or
administrative costs of the General Partner incurred in the ordinary course of its business on
behalf of or in connection with the Partnership.

     “REIT Share” means a common share of beneficial interest in the General Partner (or
successor entity, as the case may be).

     “REIT Shares Amount” means a number of REIT Shares equal to the product of the number
of Partnership Units offered for exchange by a Tendering Party, multiplied by the Conversion Factor
as adjusted to and including the Specified Redemption Date; provided that in the event the General
Partner issues to all holders of REIT Shares rights, options, warrants or convertible or
exchangeable securities entitling the stockholders to subscribe for or purchase REIT Shares, or any
other securities or property (collectively, the “rights”), and the rights have not expired
at the Specified Redemption Date, then the REIT Shares Amount shall also include the rights
issuable to a holder of the REIT Shares Amount of REIT Shares on the record date fixed for purposes
of determining the holders of REIT Shares entitled to rights.

     “Related Party” means, with respect to any Person, any other Person whose ownership of
shares of the General Partner’s capital stock would be attributed to the first such Person under
Code Section 544 (as modified by Code Section 856(h)(1)(B)).

     “Sale” means (A) any transaction or series of transactions whereby: (i) the
Partnership directly or indirectly (except as described in other subsections of this definition)
sells, grants, transfers, conveys, or relinquishes its ownership of any Real Estate Asset or
portion thereof, including the lease of any Real Estate Asset consisting of the building only, and
including any event with respect to any Real Estate Asset which gives rise to a significant amount
of insurance proceeds or condemnation awards; (ii) the Partnership directly or indirectly (except
as described in other subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its ownership of all or substantially all of the interest of the Partnership in any
Joint Venture; (iii) any Joint Venture directly or indirectly (except as described in other
subsections of this definition) in which the Partnership as a co-venturer or partner sells, grants,
transfers, conveys, or relinquishes its ownership of any Real Estate Asset or portion thereof,
including any event with respect to

8

 

any Real Estate Asset which gives rise to insurance claims or condemnation awards; (iv) the
Partnership directly or indirectly (except as described in other subsections of this definition)
sells, grants, conveys or relinquishes its interest in any Mortgage or portion thereof (including
with respect to any Mortgage, all payments thereunder or in satisfaction thereof other than
regularly scheduled interest payments) of amounts owed pursuant to such Mortgage and any event
which gives rise to a significant among of insurance proceeds or similar awards; or (v) the
Partnership directly or indirectly (except as described in any other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes it ownership of any other Real
Estate Asset, Mortgage or other investment owner by the Partnership, directly or indirectly through
one or more of its Affiliates, and any other investment made, directly or indirectly through one of
more of its Affiliates, not previously described in this definition of any portion thereof, but (B)
not including any transaction or series of transactions specified in clause (A) (i) through (v)
above in which the proceeds of such transaction or series of transactions are reinvested by the
Partnership in one or more such assets within 180 days thereafter.

     “Securities Act” means the Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder.

     “Service” means the United States Internal Revenue Service.

     “Special OP Unitholders” means the holders of Special Partnership Units.

     “Special Partnership Unit” means a unit of a series of Partnership Interests
designated as Special Partnership Units. The number of Special Partnership Units outstanding and
the Special Percentage Interests in the Partnership represented by such Special Partnership Units
are set forth on Exhibit A, as such Exhibit may be amended from time to time. A holder of a
Special Partnership Unit shall have the same rights and preferences as a holder of a Partnership
Unit under this Agreement that is a Limited Partner except as set forth in Sections 5.2(b), 7.1(c),
8.5 and 8.6.

     “Special Percentage Interest” shall mean the percentage ownership interest in the
Partnership of each Special OP Unitholder, as determined by dividing the Special Partnership Units
owned by each Special OP Unitholder by the total number of Special Partnership Units then
outstanding. The Special Percentage Interest of each Partner shall be as set forth on Exhibit
A, as such Exhibit may be amended from time to time.

     “Specified Redemption Date” means the first business day of the month that is at least
sixty (60) business days after the receipt by the General Partner of the Notice of Redemption.

     “Subsidiary” means, with respect to any Person, any corporation or other entity of
which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding
equity interests is owned, directly or indirectly, by such Person.

     “Subsidiary Partnership” means any partnership of which the partnership interests
therein are owned by the General Partner or a direct or indirect subsidiary of the General Partner.

     “Substitute Limited Partner” means any Person admitted to the Partnership as a Limited
Partner pursuant to Section 9.3 hereof.

     “Successor Entity” has the meaning provided in the definition of “Conversion Factor”
contained herein.

     “Survivor” has the meaning set forth in Section 7.1(d) hereof.

9

 

     “Target Final Balances” shall have the meaning set forth in Section 5.1(h)(i) hereof.

     “Tax Matters Partner” has the meaning described in Section 10.5(a) hereof.

     “Termination Event” means the termination or nonrenewal of the Advisory Agreement (i)
in connection with a merger, sale of assets or transaction involving the General Partner pursuant
to which a majority of the directors of the General Partner then in office are replaced or removed,
(ii) by the Advisor for “good reason” (as defined in the Advisory Agreement) or (iii) by the
General Partner other than for “cause” (as defined in the Advisory Agreement).

     “Tendered Units” has the meaning provided in Section 8.5(a) hereof.

     “Tendering Party” has the meaning provided in Section 8.5(a) hereof.

     “Transaction” has the meaning set forth in Section 7.1(c) hereof.

     “Transfer” has the meaning set forth in Section 9.2(a) hereof.

     “Value” means the fair market value per share of REIT Shares which will equal: (i) if
REIT Shares are Listed, the average closing price per share for the previous thirty (30) business
days, (ii) if REIT Shares are not Listed, the most recent offering price per share or share
equivalent of REIT Shares, until December 31st of the year following the year in which the most
recently completed offering of REIT Shares has expired, and (iii) thereafter, such price per REIT
Share as the management of the General Partner determines in good faith.

ARTICLE 2.

PARTNERSHIP FORMATION AND IDENTIFICATION

     2.1 Formation.

     The Partnership was formed as a limited partnership pursuant to the Act and all other
pertinent laws of the State of Delaware, for the purposes and upon the terms and conditions set
forth in this Agreement.

     2.2 Name, Office and Registered Agent.

     The name of the Partnership is Green REIT Operating Partnership, LP. The specified office and
place of business of the Partnership shall be 120 N. LaSalle Street, 35th Floor, Chicago, Illinois
60602. The General Partner may at any time change the location of such office, provided the General
Partner gives notice to the Partners of any such change. The name and address of the Partnership’s
registered agent is Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, New
Castle County, Delaware 19808. The sole duty of the registered agent as such is to forward to the
Partnership any notice that is served on him as registered agent.

     2.3 Partners.

          (a) The General Partner of the Partnership is Green Realty Trust, Inc., a Maryland
corporation. Its principal place of business is the same as that of the Partnership.

          (b) The Limited Partners are those Persons identified as Limited Partners on Exhibit A
hereto, as amended from time to time.

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     2.4 Term and Dissolution.

          (a) The term of the Partnership shall continue in full force and effect until December 31,
2037, except that the Partnership shall be dissolved upon the first to occur of any of the
following events:

               (i) The occurrence of an Event of Bankruptcy as to a General Partner or the dissolution,
death, removal or withdrawal of a General Partner unless the business of the Partnership is
continued pursuant to Section 7.3(b) hereof; provided that if a General Partner is on the date of
such occurrence a partnership, the dissolution of such General Partner as a result of the
dissolution, death, withdrawal, removal or Event of Bankruptcy of a partner in such partnership
shall not be an event of dissolution of the Partnership if the business of such General Partner is
continued by the remaining partner or partners, either alone or with additional partners, and such
General Partner and such partners comply with any other applicable requirements of this Agreement;

               (ii) The passage of ninety (90) days after the sale or other disposition of all or
substantially all of the assets of the Partnership (provided that if the Partnership receives an
installment obligation as consideration for such sale or other disposition, the Partnership shall
continue, unless sooner dissolved under the provisions of this Agreement, until such time as such
note or notes are paid in full);

               (iii) The exchange of all Limited Partnership Interests (other than any of such interests held
by the General Partner or Affiliates of the General Partner) for REIT Shares or the securities of
any other entity; or

               (iv) The election by the General Partner that the Partnership should be dissolved.

          (b) Upon dissolution of the Partnership (unless the business of the Partnership is continued
pursuant to Section 7.3(b) hereof), the General Partner (or its trustee, receiver, successor or
legal representative) shall amend or cancel any Certificate(s) and liquidate the Partnership’s
assets and apply and distribute the proceeds thereof in accordance with Section 5.6 hereof.
Notwithstanding the foregoing, the liquidating General Partner may either (i) defer liquidation of,
or withhold from distribution for a reasonable time, any assets of the Partnership (including those
necessary to satisfy the Partnership’s debts and obligations), or (ii) distribute the assets to the
Partners in kind.

     2.5 Filing of Certificate and Perfection of Limited Partnership.

     The General Partner shall execute, acknowledge, record and file at the expense of the
Partnership, any and all amendments to the Certificate(s) and all requisite fictitious name
statements and notices in such places and jurisdictions as may be necessary to cause the
Partnership to be treated as a limited partnership under, and otherwise to comply with, the laws of
each state or other jurisdiction in which the Partnership conducts business.

     2.6 Certificates Describing Partnership Units and Special Partnership Units.

     At the request of a Limited Partner, the General Partner, at its option, may issue (but in no
way is obligated to issue) a certificate summarizing the terms of such Limited Partner’s interest
in the Partnership, including the number of Partnership Units and Special Partnership Units owned
and the Percentage Interest and Special Percentage Interest represented by such Partnership Units
and Special Partnership Units as of the date of such certificate. Any such certificate (i) shall be
in form and substance

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as approved by the General Partner, (ii) shall not be negotiable and (iii) shall bear a legend
to the following effect:

     This certificate is not negotiable. The Partnership Units and Special Partnership Units
represented by this certificate are governed by and transferable only in accordance with the
provisions of the Limited Partnership Agreement of Green REIT Operating Partnership, LP, as amended
from time to time.

ARTICLE 3.

BUSINESS OF THE PARTNERSHIP

     The purpose and nature of the business to be conducted by the Partnership is (i) to conduct
any business that may be lawfully conducted by a limited partnership organized pursuant to the Act,
provided, however, that such business shall be limited to and conducted in such a manner as to
permit the General Partner at all times to qualify as a REIT, unless the General Partner otherwise
ceases to qualify as a REIT, and in a manner such that the General Partner will not be subject to
any taxes under Section 857 or 4981 of the Code, (ii) to enter into any partnership, joint venture
or other similar arrangement to engage in any of the foregoing or the ownership of interests in any
entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the
foregoing. In connection with the foregoing, and without limiting the General Partner’s right in
its sole and absolute discretion to qualify or cease qualifying as a REIT, the Partners acknowledge
that the General Partner intends to qualify as a REIT for federal income tax purposes and upon such
qualification the avoidance of income and excise taxes on the General Partner inures to the benefit
of all the Partners and not solely to the General Partner. Notwithstanding the foregoing, the
Limited Partners agree that the General Partner may terminate its status as a REIT under the Code
at any time to the full extent permitted under the Articles of Incorporation. The General Partner
on behalf of the Partnership shall also be empowered to do any and all acts and things necessary or
prudent to ensure that the Partnership will not be classified as a “publicly traded partnership”
for purposes of Section 7704 of the Code.

ARTICLE 4.

CAPITAL CONTRIBUTIONS AND ACCOUNTS

     4.1 Capital Contributions.

     The General Partner and the initial Limited Partners have made capital contributions to the
Partnership in exchange for the Partnership Interests set forth opposite their names on Exhibit
A, as such Exhibit may be amended from time to time. The Special OP Unitholders shall not be
obligated to make a contribution to the partnership in exchange for their Special Partnership
Units.

     4.2 Additional Capital Contributions and Issuances of Additional Partnership
Interests.

     Except as provided in this Section 4.2 or in Section 4.3, the Partners shall have no right or
obligation to make any additional Capital Contributions or loans to the Partnership. The General
Partner may contribute additional capital to the Partnership, from time to time, and receive
additional Partnership Interests in respect thereof, in the manner contemplated in this Section
4.2.

          (a) Issuances of Additional Partnership Interests.

               (i) General. The General Partner is hereby authorized to cause the Partnership to
issue such additional Partnership Interests in the form of Partnership Units for any Partnership
purpose at any time or from time to time, including but not limited to Partnership Units issued in
connection with acquisitions of properties, to the Partners (including the General Partner) or to
other

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Persons for such consideration and on such terms and conditions as shall be established by the
General Partner in its sole and absolute discretion, all without the approval of any Limited
Partners. Any additional Partnership Interests issued thereby may be issued in one or more classes,
or one or more series of any of such classes, with such designations, preferences and relative,
participating, optional or other special rights, powers and duties, including rights, powers and
duties senior to Limited Partnership Interests, all as shall be determined by the General Partner
in its sole and absolute discretion and without the approval of any Limited Partner, subject to
Delaware law, including, without limitation, (i) the allocations of items of Partnership income,
gain, loss, deduction and credit to each such class or series of Partnership Interests; (ii) the
right of each such class or series of Partnership Interests to share in Partnership distributions;
and (iii) the rights of each such class or series of Partnership Interests upon dissolution and
liquidation of the Partnership; provided, however, that no additional Partnership Interests shall
be issued to the General Partner unless:

                    (1)(A) the additional Partnership Interests are issued in connection with an issuance of REIT
Shares of or other interests in the General Partner, which shares or interests have designations,
preferences and other rights, all such that the economic interests are substantially similar to the
designations, preferences and other rights of the additional Partnership Interests issued to the
General Partner by the Partnership in accordance with this Section 4.2 and (B) the General Partner
shall make a Capital Contribution to the Partnership in an amount equal to the proceeds raised in
connection with the issuance of such shares of stock of or other interests in the General Partner;

                    (2) the additional Partnership Interests are issued in exchange for property owned by the
General Partner with a fair market value, as determined by the General Partner, in good faith,
equal to the value of the Partnership Interests; or

                    (3) the additional Partnership Interests are issued to all Partners holding Partnership Units
in proportion to their respective Percentage Interests.

               Without limiting the foregoing, the General Partner is expressly authorized to cause the
Partnership to issue Partnership Units for less than fair market value, so long as the General
Partner concludes in good faith that such issuance is in the best interests of the General Partner
and the Partnership.

               (ii) Upon Issuance of Additional Securities. The General Partner shall not issue any
Additional Securities other than to all holders of REIT Shares, unless (A) the General Partner
shall cause the Partnership to issue to the General Partner, as the General Partner may designate,
Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the
Partnership having designations, preferences and other rights, all such that the economic interests
are substantially similar to those of the Additional Securities, and (B) the General Partner
contributes the proceeds from the issuance of such Additional Securities and from any exercise of
rights contained in such Additional Securities, directly and through the General Partner, to the
Partnership; provided, however, that the General Partner is allowed to issue Additional Securities
in connection with an acquisition of a property to be held directly by the General Partner, but if
and only if, such direct acquisition and issuance of Additional Securities have been approved and
determined to be in the best interests of the General Partner and the Partnership by a majority of
the Independent Directors. Without limiting the foregoing, the General Partner is expressly
authorized to issue Additional Securities for less than fair market value, and to cause the
Partnership to issue to the General Partner corresponding Partnership Interests, so long as (x) the
General Partner concludes in good faith that such issuance is in the best interests of the General
Partner and the Partnership, including without limitation, the issuance of REIT Shares and
corresponding Partnership Units pursuant to an employee share purchase plan providing for employee
purchases of REIT Shares at a discount from fair market value or employee stock options

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that have an exercise price that is less than the fair market value of the REIT Shares, either
at the time of issuance or at the time of exercise, and (y) the General Partner contributes all
proceeds from such issuance to the Partnership. For example, in the event the General Partner
issues REIT Shares for a cash purchase price and contributes all of the proceeds of such issuance
to the Partnership as required hereunder, the General Partner shall be issued a number of
additional Partnership Units equal to the product of (A) the number of such REIT Shares issued by
the General Partner, the proceeds of which were so contributed, multiplied by (B) a fraction, the
numerator of which is 100%, and the denominator of which is the Conversion Factor in effect on the
date of such contribution.

          (b) Certain Deemed Contributions of Proceeds of Issuance of REIT Shares. In connection with
any and all issuances of REIT Shares, the General Partner shall make Capital Contributions to the
Partnership of the proceeds therefrom, provided that if the proceeds actually received and
contributed by the General Partner are less than the gross proceeds of such issuance as a result of
any underwriter’s discount or other expenses paid or incurred in connection with such issuance,
then the General Partner shall be deemed to have made Capital Contributions to the Partnership in
the aggregate amount of the gross proceeds of such issuance and the Partnership shall be deemed
simultaneously to have paid such offering expenses in accordance with Section 6.5 hereof and in
connection with the required issuance of additional Partnership Units to the General Partner for
such Capital Contributions pursuant to Section 4.2(a) hereof.

          (c) Minimum Limited Partnership Interest. In the event that either a redemption pursuant to
Section 8.5 hereof or additional Capital Contributions by the General Partner would result in the
Limited Partners, in the aggregate, owning less than the Minimum Limited Partnership Interest, the
General Partner and the Limited Partners (other than the Limited Partners that own only Special
Partnership Units) shall form another partnership and contribute sufficient Limited Partnership
Interests (other than Special Partnership Units) together with such other Limited Partners so that
the limited partners of such partnership own at least the Minimum Limited Partnership Interest.

     4.3 Additional Funding.

     If the General Partner determines that it is in the best interests of the Partnership to
provide for additional Partnership funds (“Additional Funds”) for any Partnership purpose,
the General Partner may (i) cause the Partnership to obtain such funds from outside borrowings, or
(ii) elect to have the General Partner or any of its Affiliates provide such Additional Funds to
the Partnership through loans or otherwise, provided, however, that the Partnership may not borrow
money from its Affiliates, unless a majority of the Directors of the General Partner (including a
majority of Independent Directors) not otherwise interested in such transaction approve the
transaction as being fair, competitive, and commercially reasonable and no less favorable to the
Partnership than loans between unaffiliated parties under the same circumstances.

     4.4 Capital Accounts.

     A separate capital account (a “Capital Account”) shall be established and maintained
for each Partner in accordance with Regulations Section 1.704-1(b)(2)(iv). If (i) a new or existing
Partner acquires an additional Partnership Interest in exchange for more than a de minimis Capital
Contribution, (ii) the Partnership distributes to a Partner more than a de minimis amount of
Partnership property or money as consideration for a Partnership Interest, or (iii) the Partnership
is liquidated within the meaning of Regulation Section 1.704-1(b)(2)(ii)(g), the General Partner
shall revalue the property of the Partnership to its fair market value (as determined by the
General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of
the Code) in accordance with Regulations Section 1.704-1(b)(2)(iv)(f). When the Partnership’s
property is revalued by the General Partner, the Capital Accounts

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of the Partners shall be adjusted in accordance with Regulations Sections 1.704-1(b)(2)(iv)(f)
and (g), which generally require such Capital Accounts to be adjusted to reflect the manner in
which the unrealized gain or loss inherent in such property (that has not been reflected in the
Capital Accounts previously) would be allocated among the Partners pursuant to Section 5.1 if there
were a taxable disposition of such property for its fair market value (as determined by the General
Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code)
on the date of the revaluation.

     4.5 Percentage Interests.

     If the number of outstanding Partnership Units increases or decreases during a taxable year,
each Partner’s Percentage Interest shall be adjusted by the General Partner effective as of the
effective date of each such increase or decrease to a percentage equal to the number of Partnership
Units held by such Partner divided by the aggregate number of Partnership Units outstanding after
giving effect to such increase or decrease. If the Partners’ Percentage Interests are adjusted
pursuant to this Section 4.5, the Profits and Losses for the taxable year in which the adjustment
occurs shall be allocated between the part of the year ending on the day when the Partnership’s
property is revalued by the General Partner and the part of the year beginning on the following day
either (i) as if the taxable year had ended on the date of the adjustment or (ii) based on the
number of days in each part. The General Partner, in its sole and absolute discretion, shall
determine which method shall be used to allocate Profits and Losses for the taxable year in which
the adjustment occurs. The allocation of Profits and Losses for the earlier part of the year shall
be based on the Percentage Interests before adjustment, and the allocation of Profits and Losses
for the later part shall be based on the adjusted Percentage Interests.

     4.6 No Interest On Contributions.

     No Partner shall be entitled to interest on its Capital Contribution.

     4.7 Return Of Capital Contributions.

     No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital
Account or to receive any distribution from the Partnership, except as specifically provided in
this Agreement. Except as otherwise provided herein, there shall be no obligation to return to any
Partner or withdrawn Partner any part of such Partner’s Capital Contribution for so long as the
Partnership continues in existence.

     4.8 No Third Party Beneficiary.

     No creditor or other third party having dealings with the Partnership shall have the right to
enforce the right or obligation of any Partner to make Capital Contributions or loans or to pursue
any other right or remedy hereunder or at law or in equity, it being understood and agreed that the
provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the
parties hereto and their respective successors and assigns. None of the rights or obligations of
the Partners herein set forth to make Capital Contributions or loans to the Partnership shall be
deemed an asset of the Partnership for any purpose by any creditor or other third party, nor may
such rights or obligations be sold, transferred or assigned by the Partnership or pledged or
encumbered by the Partnership to secure any debt or other obligation of the Partnership or of any
of the Partners. In addition, it is the intent of the parties hereto that no distribution to any
Limited Partner shall be deemed a return of money or other property in violation of the Act.
However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this
Agreement, any Limited Partner is obligated to return such money or property, such obligation shall
be the obligation of such Limited Partner and not of the General Partner. Without limiting the
generality of

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the foregoing, a deficit Capital Account of a Partner shall not be deemed to be a liability of
such Partner nor an asset or property of the Partnership.

     4.9 Special Partnership Units.

          (a) The Partnership and the Partners acknowledge and agree that the Special Partnership Units,
and the rights and privileges associated with such Partnership Interest, collectively are intended
to constitute a “profits interest” in the Partnership within the meaning of Revenue Procedure
93-27, 1993-2 C.B. 343, or any successor Internal Revenue Service or Regulation or other
pronouncement applicable at the date of issuance of such Partnership Interest. For so long as
Revenue Procedure 2001-43, 2001-2 C.B. 343, is effective, the Partnership and the Partners hereby
agree to comply with the provisions of Revenue Procedure 2001-43, and neither the Partnership nor
any Partner shall perform any act or take any position inconsistent with the application of Revenue
Procedure 2001-43.

          (b) Subsequent Guidance Issued by the Internal Revenue Service. By executing this
Agreement, the Partners and the Partnership agree to take such actions as may be required by any
authority that may be issued in the future with respect to the taxation of “profits interests”
transferred in connection with the performance of services to conform the tax consequences as
closely as possible to the consequences under Revenue Procedure 93-27 and Revenue Procedure
2001-43, provided, however, that such action is not materially adverse to any other
Partner.

          (c) Amendment by General Partner. The Partners authorize the General Partner to amend
this Section 5.3 to the extent necessary to achieve substantially the same tax treatment
with respect to the Special Partnership Units as is set forth in, as applicable, Revenue Procedure
93-27 or Revenue Procedure 2001-43, provided, however, that such amendment is not
materially adverse to any Partner.

ARTICLE 5.

PROFITS AND LOSSES; DISTRIBUTIONS

     5.1 Allocation of Profit and Loss.

          (a) General. Subject to any special allocations made pursuant to this Section 5.1, Profit and
Loss (or items thereof) of the Partnership for each fiscal year or other applicable period of the
Partnership shall be allocated to the Partners in accordance with their Percentage Interests.

          (b) INTENTIONALLY OMITTED.

          (c) Special Allocation with Respect to Sales. The items of Profit and Loss of the Partnership
for each fiscal year or other applicable period from Sales shall be allocated among the Partners in
a manner that will, as nearly as possible (after giving effect to the allocations under Section
5.1(a), 5.1(d) and 5.1(e), cause the Capital Account balance of each Partner at the end of such
fiscal year or other applicable period to equal (i) the amount of the hypothetical distribution
that such Partner would receive if the Partnership were liquidated on the last day of such period
and all assets of the

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Partnership, including cash, were sold for cash equal to their Carrying Value, taking into account any
adjustments thereto for such period, all liabilities of the Partnership were satisfied in full in
cash according to their terms (limited with respect to each Nonrecourse Liability to the Carrying
Value of the assets securing such liability) and Net Sales Proceeds (after satisfaction of such
liabilities) were distributed in full pursuant to Section 5.2(b)(i), 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 as of the date of the hypothetical sale of assets.

          (d) Nonrecourse Deductions; Minimum Gain Chargeback. In the event there is a net decrease in
Partnership Minimum Gain during any fiscal year, the “minimum gain chargeback” described in
Regulations Section 1.704-2(f) and Regulations Section 1.704-2(g) shall apply. In the event there
is a net decrease in Partner Nonrecourse Debt Minimum Gain during any fiscal year, the “partner
minimum gain chargeback” described in Regulations Section 1.704-2(i)(4) shall apply.

          (e) Qualified Income Offset. This Section 5.1(e) incorporates the “qualified income offset”
set forth in Regulations Section 1.704-1(b)(2)(ii)(d) as if those provisions were fully set forth
in this Section 5.1(e).

          (f) Capital Account Deficits. Loss (or items of Loss) shall not be allocated to a Limited
Partner to the extent that such allocation would cause or increase a deficit in such Partner’s
Capital Account at the end of any fiscal year (after reduction to reflect the items described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such Partner’s
shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, as determined in
accordance with Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5). Any Loss in excess of that
limitation shall be allocated to the General Partner. After the occurrence of an allocation of Loss
to the General Partner in accordance with this Section 5.1(f), to the extent permitted by
Regulations Section 1.704-1(b), Profit shall be allocated to such Partner in an amount necessary to
offset the Loss previously allocated to such Partner under this Section 5.1(f).

          (g) Nonrecourse Deductions. Nonrecourse Deductions for any fiscal year shall be allocated to
Partners pro rata in proportion to their Percentage Interests.

          (h) Partner Nonrecourse Deductions. The Partner Nonrecourse Deductions of the Partnership
(as determined under Regulations Section 1.704-2(i)(2)) shall be allocated each year to the Partner
that bears the economic risk of loss (within the meaning of Regulations Section 1.752-2) with
respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are
attributable.

          (i) 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 Profit and Loss allocable
among the Partners during such fiscal year of the Partnership shall be allocated between the
transferor and the transferee Partner either (i) as if the Partnership’s fiscal year had ended on
the date of the transfer, or (ii) 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. 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 Profit and Loss between the transferor and the
transferee Partner.

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          (j) Definition of Profit and Loss. “Profit” and “Loss” and any items of income, gain,
expense, or loss referred to in this Agreement shall be determined in accordance with federal
income tax accounting principles, as modified by Regulations Section 1.704-1(b)(2)(iv), except that
Profit and Loss shall not include items of income, gain and expense that are specially allocated
pursuant to Sections 5.1(c), 5.1(d), 5.1(e) or 5.1(f). All allocations of Profit and Loss (and all
items contained therein) for federal income tax purposes shall be identical to all allocations of
such items set forth in this Section 5.1, except as otherwise required by Section 704(c) of the
Code and Regulations Section 1.704-1(b)(4). The General Partner shall have the authority to elect
the method to be used by the Partnership for allocating items of income, gain, and expense as
required by Section 704(c) of the Code including a method that may result in a Partner receiving a
disproportionately larger share of the Partnership tax depreciation deductions, and such election
shall be binding on all Partners.

          (k) Target Final Balances. The allocation provisions of this Agreement are intended to
produce final Capital Account balances that are at levels (“Target Final Balances”) that permit
liquidating distributions that are made in accordance with such final Capital Account balances to
be equal to the distributions that would occur under Section 5.2 hereof if liquidation proceeds
were distributed pursuant to Section 5.2. To the extent the allocation provisions of this Agreement
would not produce the Target Final Balances, the Partners agree to take such actions as are
necessary to amend such allocation provisions to produce such Target Final Balances. In furtherance
of the foregoing, the General Partner is expressly authorized and directed to make such allocations
of income, gain, loss and deduction (including items of gross income, gain, loss and deduction) in
the year of liquidation of the Company so as to cause the Capital Accounts of the Partners that
determine the amounts that are distributed to the Partners under Section 5.6 to be equal to the
Target Final Balances.

     5.2 Distribution of Cash.

          (a) The Partnership shall distribute cash on a quarterly (or, at the election of the General
Partner, more frequent) basis, in an amount determined by the General Partner in its sole and
absolute discretion, to the Partners who are Partners on the Partnership Record Date with respect
to such quarter (or other distribution period) in accordance with Section 5.2(b); provided,
however, that if a new or existing Partner acquires an additional Partnership Interest in exchange
for a Capital Contribution on any date other than a Partnership Record Date, the cash distribution
attributable to such additional Partnership Interest relating to the Partnership Record Date next
following the issuance of such additional Partnership Interest shall be reduced in the proportion
equal to one minus (i) the number of days that such additional Partnership Interest is held by such
Partner bears to (ii) the number of days between such Partnership Record Date and the immediately
preceding Partnership Record Date.

          (b) Except for distributions pursuant to Section 5.6 of this Agreement in connection with the
dissolution and liquidation of the Partnership and subject to the provisions of Section 5.2(c),
5.2(d), 5.3 and 5.5 of this Agreement, distributions shall be made in accordance with the following
provisions:

               (i) all distributions of Net Sales Proceeds shall be made: (A) first, 100% to the OP
Unitholders in accordance with their respective Percentage Interests on the Partnership Record Date
until the OP Unitholders have received cumulative distributions under this Section 5.2(b) equal to
the aggregate Capital Contributions made by the OP Unitholders to the Partnership plus a
cumulative, noncompounded pre-tax rate of return thereon of 6.5% per annum, determined by taking
into account the dates on which all such Capital Contributions and distributions were made and (B)
second, (1) 85% to the OP Unitholders, in accordance with their respective Percentage Interests on
the Partnership Record Date and (2) 15% to the Special OP Unitholders in accordance with their
respective Special Percentage Interests on the Partnership Record Date; and

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               (ii) all distributions of cash other than Net Sales Proceeds shall be made to the OP
Unitholders in accordance with their respective Percentage Interests on the Partnership Record
Date.

          (c) Notwithstanding any other provision of this Agreement, the General Partner is authorized
to take any action that it determines to be necessary or appropriate to cause the Partnership to
comply with any withholding requirements established under the Code or any other federal, state or
local law including, without limitation, pursuant to Sections 1441, 1442, 1445 and 1446 of the
Code. To the extent that the Partnership is required to withhold and pay over to any taxing
authority any amount resulting from the allocation or distribution of income to any Partner or
assignee (including by reason of Section 1446 of the Code), either (i) if the actual amount to be
distributed to the Partner equals or exceeds the amount required to be withheld by the Partnership,
the amount withheld shall be treated as a distribution of cash in the amount of such withholding to
such Partner, or (ii) if the actual amount to be distributed to the Partner is less than the amount
required to be withheld by the Partnership, the actual amount shall be treated as a distribution of
cash in the amount of such withholding and the additional amount required to be withheld shall be
treated as a loan (a “Partnership Loan”) from the Partnership to the Partner on the day the
Partnership pays over such amount to a taxing authority. A Partnership Loan shall be repaid through
withholding by the Partnership with respect to subsequent distributions to the applicable Partner
or assignee. In the event that a Limited Partner (a “Defaulting Limited Partner”) fails to
pay any amount owed to the Partnership with respect to the Partnership Loan within fifteen (15)
days after demand for payment thereof is made by the Partnership on the Limited Partner, the
General Partner, in its sole and absolute discretion, may elect to make the payment to the
Partnership on behalf of such Defaulting Limited Partner. In such event, on the date of payment,
the General Partner shall be deemed to have extended a loan (a “General Partner Loan”) to the
Defaulting Limited Partner in the amount of the payment made by the General Partner and shall
succeed to all rights and remedies of the Partnership against the Defaulting Limited Partner as to
that amount. Without limitation, the General Partner shall have the right to receive any
distributions that otherwise would be made by the Partnership to the Defaulting Limited Partner
until such time as the General Partner Loan has been paid in full, and any such distributions so
received by the General Partner shall be treated as having been received by the Defaulting Limited
Partner and immediately paid to the General Partner.

          Any amounts treated as a Partnership Loan or a General Partner Loan pursuant to this Section
5.2(c) shall bear interest at the lesser of (i) the base rate on corporate loans at large United
States money center commercial banks, as published from time to time in The Wall Street Journal, or
(ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date
the Partnership or the General Partner, as applicable, is deemed to extend the loan until such loan
is repaid in full.

          (d) In no event may a Partner receive a distribution of cash with respect to a Partnership
Unit if such Partner is entitled to receive a cash distribution as the holder of record of a REIT
Share for which all or part of such Partnership Unit has been or will be exchanged.

     5.3 REIT Distribution Requirements.

     The General Partner shall use its commercially reasonable efforts to cause the Partnership to
distribute amounts sufficient to enable the General Partner to make stockholder distributions that
will allow the General Partner to (i) meet its distribution requirement for qualification as a REIT
as set forth in Section 857 of the Code and (ii) avoid any federal income or excise tax liability
imposed by the Code.

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     5.4 No Right to Distributions in Kind.

     No Partner shall be entitled to demand property other than cash in connection with any
distributions by the Partnership.

     5.5 Limitations on Return of Capital Contributions.

     Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to
receive and the General Partner shall not have the right to make, a distribution that includes a
return of all or part of a Partner’s Capital Contributions, unless after giving effect to the
return of a Capital Contribution, the sum of all Partnership liabilities, other than the
liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair
market value of the Partnership’s assets.

     5.6 Distributions Upon Liquidation.

     Upon liquidation of the Partnership, after payment of, or adequate provision for, debts and
obligations of the Partnership, including any Partner loans, any remaining assets of the
Partnership shall be distributed to all Partners in accordance with Section 5.2(b). To the extent
deemed advisable by the General Partner, appropriate arrangements (including the use of a
liquidating trust) may be made to assure that adequate funds are available to pay any contingent
debts or obligations.

     5.7 Substantial Economic Effect.

     It is the intent of the Partners that the allocations of Profit and Loss under this Agreement
have substantial economic effect (or be consistent with the Partners’ 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. Article
5 and other relevant provisions of this Agreement shall be interpreted in a manner consistent with
such intent.

ARTICLE 6.

RIGHTS, OBLIGATIONS AND

POWERS OF THE GENERAL PARTNER

     6.1 Management of the Partnership.

          (a) Except as otherwise expressly provided in this Agreement, the General Partner shall have
full, complete and exclusive discretion to manage and control the business of the Partnership for
the purposes herein stated, and shall make all decisions affecting the business and assets of the
Partnership. Subject to the restrictions specifically contained in this Agreement, the powers of
the General Partner shall include, without limitation, the authority to take the following actions
on behalf of the Partnership:

               (i) to acquire, purchase, own, operate, lease and dispose of any real property and any other
property or assets including, but not limited to notes and mortgages and other real estate related
investments, that the General Partner determines are necessary or appropriate or in the best
interests of the business of the Partnership;

               (ii) to construct buildings and make other improvements on the properties owned or leased by
the Partnership;

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               (iii) to authorize, issue, sell, redeem or otherwise purchase any Partnership Interests or any
securities (including secured and unsecured debt obligations of the Partnership, debt obligations
of the Partnership convertible into any class or series of Partnership Interests, or options,
rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership;

               (iv) to borrow or lend money for the Partnership, issue or receive evidences of indebtedness
in connection therewith, refinance, increase the amount of, modify, amend or change the terms of,
or extend the time for the payment of, any such indebtedness, and secure such indebtedness by
mortgage, deed of trust, pledge or other lien on the Partnership’s assets;

               (v) to pay, either directly or by reimbursement, for all operating costs and general
administrative expenses of the Partnership to third parties or to the General Partner or its
Affiliates as set forth in this Agreement;

               (vi) to guarantee or become a co-maker of indebtedness of the General Partner or any
Subsidiary thereof, refinance, increase the amount of, modify, amend or change the terms of, or
extend the time for the payment of, any such guarantee or indebtedness, and secure such guarantee
or indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership’s assets;

               (vii) to use assets of the Partnership (including, without limitation, cash on hand) for any
purpose consistent with this Agreement, including, without limitation, payment, either directly or
by reimbursement, of all operating costs and general administrative expenses of the General
Partner, the Partnership or any Subsidiary of either, to third parties or to the General Partner as
set forth in this Agreement;

               (viii) to lease all or any portion of any of the Partnership’s assets, whether or not the
terms of such leases extend beyond the termination date of the Partnership and whether or not any
portion of the Partnership’s assets so leased are to be occupied by the lessee, or, in turn,
subleased in whole or in part to others, for such consideration and on such terms as the General
Partner may determine;

               (ix) to prosecute, defend, arbitrate, or compromise any and all claims or liabilities in favor
of or against the Partnership, on such terms and in such manner as the General Partner may
reasonably determine, and similarly to prosecute, settle or defend litigation with respect to the
Partners, the Partnership, or the Partnership’s assets;

               (x) to file applications, communicate, and otherwise deal with any and all governmental
agencies having jurisdiction over, or in any way affecting, the Partnership’s assets or any other
aspect of the Partnership business;

               (xi) to make or revoke any election permitted or required of the Partnership by any taxing
authority;

               (xii) to maintain such insurance coverage for public liability, fire and casualty, and any and
all other insurance for the protection of the Partnership, for the conservation of Partnership
assets, or for any other purpose convenient or beneficial to the Partnership, in such amounts and
such types, as it shall determine from time to time;

               (xiii) to determine whether or not to apply any insurance proceeds for any property to the
restoration of such property or to distribute the same;

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               (xiv) to establish one or more divisions of the Partnership, to hire and dismiss employees of
the Partnership or any division of the Partnership, and to retain legal counsel, accountants,
consultants, real estate brokers, and such other persons, as the General Partner may deem necessary
or appropriate in connection with the Partnership business and to pay therefor such remuneration as
the General Partner may deem reasonable and proper;

               (xv) to retain other services of any kind or nature in connection with the Partnership
business, and to pay therefor such remuneration as the General Partner may deem reasonable and
proper;

               (xvi) to negotiate and conclude agreements on behalf of the Partnership with respect to any of
the rights, powers and authority conferred upon the General Partner;

               (xvii) to maintain accurate accounting records and to file promptly all federal, state and
local income tax returns on behalf of the Partnership;

               (xviii) to distribute Partnership cash or other Partnership assets in accordance with this
Agreement;

               (xix) to form or acquire an interest in, and contribute property to, any further limited or
general partnerships, joint ventures or other relationships that it deems desirable (including,
without limitation, the acquisition of interests in, and the contributions of property to, its
Subsidiaries and any other Person in which it has an equity interest from time to time);

               (xx) to establish Partnership reserves for working capital, capital expenditures, contingent
liabilities, or any other valid Partnership purpose;

               (xxi) to merge, consolidate or combine the Partnership with or into another Person;

               (xxii) to do any and all acts and things necessary or prudent to ensure that the Partnership
will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Code;
and

               (xxiii) to take such other action, execute, acknowledge, swear to or deliver such other
documents and instruments, and perform any and all other acts that the General Partner deems
necessary or appropriate for the formation, continuation and conduct of the business and affairs of
the Partnership (including, without limitation, all actions consistent with allowing the General
Partner at all times to qualify as a REIT unless the General Partner voluntarily terminates its
REIT status) and to possess and enjoy all of the rights and powers of a general partner as provided
by the Act.

          (b) Except as otherwise provided herein, to the extent the duties of the General Partner
require expenditures of funds to be paid to third parties, the General Partner shall not have any
obligations hereunder except to the extent that partnership funds are reasonably available to it
for the performance of such duties, and nothing herein contained shall be deemed to authorize or
require the General Partner, in its capacity as such, to expend its individual funds for payment to
third parties or to undertake any individual liability or obligation on behalf of the Partnership.

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     6.2 Delegation of Authority.

     The General Partner may delegate any or all of its powers, rights and obligations hereunder,
and may appoint, employ, contract or otherwise deal with any Person for the transaction of the
business of the Partnership, which Person may, under supervision of the General Partner, perform
any acts or services for the Partnership as the General Partner may approve.

     6.3 Indemnification and Exculpation of Indemnitees.

          (a) The Partnership shall indemnify an Indemnitee from and against any and all losses, claims,
damages, liabilities, joint or several, expenses (including reasonable legal fees and expenses),
judgments, fines, settlements, and other amounts arising from any and all claims, demands, actions,
suits or proceedings, civil, criminal, administrative or investigative, that relate to the
operations of the Partnership as set forth in this Agreement in which any Indemnitee may be
involved, or is threatened to be involved, as a party or otherwise, unless it is established that:
(i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding
and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii)
the Indemnitee actually received an improper personal benefit in money, property or services; or
(iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that
the act or omission was unlawful. Any indemnification pursuant to this Section 6.3 shall be made
only out of the assets of the Partnership.

          (b) The Partnership shall reimburse an Indemnitee for reasonable expenses incurred by an
Indemnitee who is a party to a proceeding in advance of the final disposition of the proceeding
upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s
good faith belief that the standard of conduct necessary for indemnification by the Partnership as
authorized in this Section 6.3 has been met, and (ii) a written undertaking by or on behalf of the
Indemnitee to repay the amount if it shall ultimately be determined that the standard of conduct
has not been met.

          (c) The indemnification provided by this Section 6.3 shall be in addition to any other rights
to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any
vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who
has ceased to serve in such capacity.

          (d) The Partnership may purchase and maintain insurance, on behalf of the Indemnitees and such
other Persons as the General Partner shall determine, against any liability that may be asserted
against or expenses that may be incurred by such Person in connection with the Partnership’s
activities, regardless of whether the Partnership would have the power to indemnify such Person
against such liability under the provisions of this Agreement.

          (e) For purposes of this Section 6.3, the Partnership shall be deemed to have requested an
Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its
duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan
or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect
to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of
this Section 6.3; and actions taken or omitted by the Indemnitee with respect to an employee
benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the
interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose
which is not opposed to the best interests of the Partnership.

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

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          (g) An Indemnitee shall not be denied indemnification in whole or in part under this
Section 6.3 because the Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

          (h) The provisions of this Section 6.3 are for the benefit of the Indemnitees, their heirs,
successors, assigns and administrators and shall not be deemed to create any rights for the benefit
of any other Persons.

          (i) Notwithstanding the foregoing, the Partnership may not indemnify or hold harmless an
Indemnitee for any liability or loss unless all of the following conditions are met: (i) the
Indemnitee has determined, in good faith, that the course of conduct that caused the loss or
liability was in the best interests of the Partnership; (ii) the Indemnitee was acting on behalf of
or performing services for the Partnership; (iii) the liability or loss was not the result of
(A) negligence or misconduct, in the case that the Indemnitee is a director of the General Partner
(other than an Independent Director), the Advisor or an Affiliate of the Advisor or (B) gross
negligence or willful misconduct, in the case that the Indemnitee is an Independent Director; and
(iv) the indemnification or agreement to hold harmless is recoverable only out of net assets of the
Partnership. In addition, the Partnership shall not provide indemnification for any loss, liability
or expense arising from or out of an alleged violation of federal or state securities laws by such
party unless one or more of the following conditions are met: (i) there has been a successful
adjudication on the merits of each count involving alleged material securities law violations as to
the Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of
competent jurisdiction as to the Indemnitee; or (iii) a court of competent jurisdiction approves a
settlement of the claims against the Indemnitee and finds that indemnification of the settlement
and the related costs should be made, and the court considering the request for indemnification has
been advised of the position of the Commission and of the published position of any state
securities regulatory authority in which Securities were offered or sold as to indemnification for
violations of securities laws.

     6.4 Liability of the General Partner.

          (a) Notwithstanding anything to the contrary set forth in this Agreement, the General Partner
shall not be liable for monetary damages to the Partnership or any Partners for losses sustained or
liabilities incurred as a result of errors in judgment or of any act or omission if the General
Partner acted in good faith. The General Partner shall not be in breach of any duty that the
General Partner may owe to the Limited Partners or the Partnership or any other Persons under this
Agreement or of any duty stated or implied by law or equity provided the General Partner, acting in
good faith, abides by the terms of this Agreement.

          (b) The Limited Partners expressly acknowledge that the General Partner is acting on behalf of
the Partnership, itself and its stockholders collectively, that the General Partner is under no
obligation to consider the separate interests of the Limited Partners (including, without
limitation, the tax
consequences to Limited Partners or the tax consequences of some, but not all, of the Limited
Partners) in deciding whether to cause the Partnership to take (or decline to take) any actions. In
the event of a conflict between the interests of its stockholders on one hand and the Limited
Partners on the other, the General Partner shall endeavor in good faith to resolve the conflict in
a manner not adverse to either its stockholders or the Limited Partners; provided, however, that
for so long as the General Partner directly owns a controlling interest in the Partnership, any
such conflict that the General Partner, in its sole and absolute discretion, determines cannot be
resolved in a manner not adverse to either its stockholders or the Limited Partner shall be
resolved in favor of the stockholders. The General Partner shall not be liable for monetary damages
for losses sustained, liabilities incurred, or benefits not derived by Limited Partners in
connection with such decisions, provided that the General Partner has acted in good faith.

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          (c) Subject to its obligations and duties as General Partner set forth in Section 6.1 hereof,
the General Partner may exercise any of the powers granted to it under this Agreement and perform
any of the duties imposed upon it hereunder either directly or by or through its agents. The
General Partner shall not be responsible for any misconduct or negligence on the part of any such
agent appointed by it in good faith.

          (d) Notwithstanding any other provisions of this Agreement or the Act, any action of the
General Partner on behalf of the Partnership or any decision of the General Partner to refrain from
acting on behalf of the Partnership, undertaken in the good faith belief that such action or
omission is necessary or advisable in order (i) to protect the ability of the General Partner to
continue to qualify as a REIT or (ii) to prevent the General Partner from incurring any taxes under
Section 857, Section 4981, or any other provision of the Code, is expressly authorized under this
Agreement and is deemed approved by all of the Limited Partners.

          (e) Any amendment, modification or repeal of this Section 6.4 or any provision hereof shall be
prospective only and shall not in any way affect the limitations on the General Partner’s liability
to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately prior
to such amendment, modification or repeal with respect to matters occurring, in whole or in part,
prior to such amendment, modification or repeal, regardless of when claims relating to such matters
may arise or be asserted.

     6.5 Reimbursement of General Partner.

          (a) Except as provided in this Section 6.5 and elsewhere in this Agreement (including the
provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may
be entitled), the General Partner shall not be compensated for its services as general partner of
the Partnership.

          (b) The General Partner shall be reimbursed on a monthly basis, or such other basis as the
General Partner may determine in its sole and absolute discretion, for all Administrative Expenses
incurred by the General Partner. Reimbursement of Administrative Expenses shall be treated as an
expense of the Partnership and not as allocations of Partnership income or gain.

     6.6 Outside Activities.

     Subject to Section 6.8 hereof, the Articles of Incorporation and any agreements entered into
by the General Partner or its Affiliates with the Partnership or a Subsidiary, any officer,
director, employee, agent, trustee, Affiliate or stockholder of the General Partner, the General
Partner shall be entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and activities
substantially similar or identical to those of the
Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by
virtue of this Agreement in any such business ventures, interests or activities. None of the
Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the
partnership relationship established hereby in any such business ventures, interests or activities,
and the General Partner shall have no obligation pursuant to this Agreement to offer any interest
in any such business ventures, interests and activities to the Partnership or any Limited Partner,
even if such opportunity is of a character which, if presented to the Partnership or any Limited
Partner, could be taken by such Person.

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     6.7 Employment or Retention of Affiliates.

          (a) Any Affiliate of the General Partner may be employed or retained by the Partnership and
may otherwise deal with the Partnership (whether as a buyer, lessor, lessee, manager, furnisher of
goods or services, broker, agent, lender or otherwise) and may receive from the Partnership any
compensation, price, or other payment therefor which the General Partner determines to be fair and
reasonable.

          (b) The Partnership may lend or contribute to its Subsidiaries or other Persons in which it
has an equity investment, and such Persons may borrow funds from the Partnership, on terms and
conditions established in the sole and absolute discretion of the General Partner. The foregoing
authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

          (c) The Partnership may transfer assets to joint ventures, other partnerships, corporations or
other business entities in which it is or thereby becomes a participant upon such terms and subject
to such conditions as the General Partner deems are consistent with this Agreement, applicable law
and the REIT status of the General Partner.

          (d) Except as expressly permitted by this Agreement, neither the General Partner nor any of
its Affiliates shall sell, transfer or convey any property to, or purchase any property from, the
Partnership, directly or indirectly, except pursuant to transactions that are, in the General
Partner’s sole discretion, on terms that are fair and reasonable to the Partnership.

     6.8 General Partner Participation.

     The General Partner agrees that all business activities of the General Partner, including
activities pertaining to the acquisition, development or ownership of any Real Estate Asset or
other property shall be conducted through the Partnership or one or more Subsidiary Partnerships;
provided, however, that the General Partner is allowed to make a direct acquisition, but if and
only if, such acquisition is made in connection with the issuance of Additional Securities, which
direct acquisition and issuance have been approved and determined to be in the best interests of
the General Partner and the Partnership by a majority of the Independent Directors.

     6.9 Title to Partnership Assets.

     Title to Partnership assets, whether real, personal or mixed and whether tangible or
intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner,
individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof. Title to any or all of the Partnership assets may be held in the name of the
Partnership, the General Partner or one or more nominees, as the General Partner may determine,
including Affiliates of the General Partner. The General Partner hereby declares and warrants that
any Partnership assets for which legal title is held in the name of the General Partner or any
nominee or Affiliate of the General Partner shall be held by the General Partner for the use and
benefit of the Partnership in accordance with the provisions of this Agreement;
provided, however, that the General Partner shall use its best efforts to cause beneficial and
record title to such assets to be vested in the Partnership as soon as reasonably practicable. All
Partnership assets shall be recorded as the property of the Partnership in its books and records,
irrespective of the name in which legal title to such Partnership assets is held.

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     6.10 Miscellaneous.

     In the event the General Partner redeems any REIT Shares (other than REIT Shares redeemed in
accordance with the share redemption program of the General Partner through proceeds received from
the General Partner’s dividend reinvestment plan), then the General Partner shall cause the
Partnership to purchase from the General Partner a number of Partnership Units as determined based
on the application of the Conversion Factor on the same terms that the General Partner redeemed
such REIT Shares. Moreover, if the General Partner makes a cash tender offer or other offer to
acquire REIT Shares, then the General Partner shall cause the Partnership to make a corresponding
offer to the General Partner to acquire an equal number of Partnership Units held by the General
Partner. In the event any REIT Shares are redeemed by the General Partner pursuant to such offer,
the Partnership shall redeem an equivalent number of the General Partner’s Partnership Units for an
equivalent purchase price based on the application of the Conversion Factor.

     6.11 No Duplication of Fees or Expenses.

     The Partnership may not incur or be responsible for any fee or expense (in connection with the
Offering or otherwise) that would be duplicative of fees and expenses paid by the General Partner.

ARTICLE 7.

CHANGES IN GENERAL PARTNER

     7.1 Transfer of the General Partner’s Partnership Interest.

          (a) The General Partner shall not transfer all or any portion of its General Partnership
Interest or withdraw as General Partner except as provided in, or in connection with a transaction
contemplated by, Section 7.1(c), (d) or (e).

          (b) The General Partner agrees that its Percentage Interest will at all times be, in the
aggregate, at least 0.1%.

          (c) Except as otherwise provided in Section 6.4(b) or Section 7.1(d) or (e) hereof, the
General Partner shall not engage in any merger, consolidation or other combination with or into
another Person or sale of all or substantially all of its assets, (other than in connection with a
change in the General Partner’s state of incorporation or organizational form) in each case which
results in a change of control of the General Partner (a “Transaction”), unless:

               (i) the consent of Limited Partners holding more than 50% of the Percentage Interests and more
than 50% of the Special Percentage Interests of the Limited Partners is obtained;

               (ii) as a result of such Transaction all Limited Partners will receive (A) for each
Partnership Unit an amount of cash, securities, or other property equal to the product of the
Conversion Factor and the greatest amount of cash, securities or other property paid in the
Transaction to a holder of one REIT Share in consideration of one REIT Share, provided that if, in
connection with the Transaction, a purchase, tender or exchange offer (“Offer”) shall have
been made to and accepted by the holders of more than 50% of the outstanding REIT Shares, each
holder of Partnership Units shall be given
the option to exchange its Partnership Units for the greatest amount of cash, securities, or
other property which a Limited Partner holding Partnership Units would have received had it
(1) exercised its Redemption Right and (2) sold, tendered or exchanged pursuant to the Offer the
REIT Shares received upon exercise of the Redemption Right immediately prior to the expiration of
the Offer and (B) for each Special Partnership Unit an amount of cash, securities or other property
(as applicable based upon the

27

 

type of consideration and the proportions thereof paid to holders of
REIT Shares in the Transaction) equal to the fair market value of such Special Partnership Unit at
such time as determined in good faith by the General Partner by reference to the value paid for the
REIT Shares; or

               (iii) the General Partner is the surviving entity in the Transaction and either (A) the
holders of REIT Shares do not receive cash, securities, or other property in the Transaction or
(B) all Limited Partners (other than the General Partner or any Subsidiary) receive (1) in exchange
for their Partnership Units, an amount of cash, securities, or other property (expressed as an
amount per REIT Share) that is no less than the product of the Conversion Factor and the greatest
amount of cash, securities, or other property (expressed as an amount per REIT Share) received in
the Transaction by any holder of REIT Shares and (2) in exchange for their Special Partnership
Units, an amount of cash, securities or other property (as applicable based upon the type of
consideration and the proportions thereof paid to holders of REIT Shares in the Transaction) equal
to the fair market value of such Special Partnership Units at such time as determined in good faith
by the General Partner by reference to the value paid for the REIT Shares.

          (d) Notwithstanding Section 7.1(c), the General Partner may merge with or into or consolidate
with another entity if immediately after such merger or consolidation (i) substantially all of the
assets of the successor or surviving entity (the “Survivor”), other than Partnership Units
held by the General Partner, are contributed, directly or indirectly, to the Partnership as a
Capital Contribution in exchange for Partnership Units with a fair market value equal to the value
of the assets so contributed as determined by the Survivor in good faith and (ii) the Survivor
expressly agrees to assume all obligations of the General Partner, as appropriate, hereunder. Upon
such contribution and assumption, the Survivor shall have the right and duty to amend this
Agreement as set forth in this Section 7.1(d). The Survivor shall in good faith arrive at a new
method for the calculation of the Cash Amount, the REIT Shares Amount and Conversion Factor for a
Partnership Unit after any such merger or consolidation so as to approximate the existing method
for such calculation as closely as reasonably possible. Such calculation shall take into account,
among other things, the kind and amount of securities, cash and other property that was receivable
upon such merger or consolidation by a holder of REIT Shares or options, warrants or other rights
relating thereto, and which a holder of Partnership Units could have acquired had such Partnership
Units been exchanged immediately prior to such merger or consolidation. Such amendment to this
Agreement shall provide for adjustment to such method of calculation, which shall be as nearly
equivalent as may be practicable to the adjustments provided for with respect to the Conversion
Factor. The Survivor also shall in good faith modify the definition of REIT Shares and make such
amendments to Sections 8.5 and 8.7 hereof so as to approximate the existing rights and obligations
set forth in Sections 8.5 and 8.7 as closely as reasonably possible. The above provisions of this
Section 7.1(d) shall similarly apply to successive mergers or consolidations permitted hereunder.

          In respect of any transaction described in the preceding paragraph, the General Partner is
required to use its commercially reasonable efforts to structure such transaction to avoid causing
the Limited Partners to recognize a gain for federal income tax purposes by virtue of the
occurrence of or their participation in such transaction, provided such efforts are consistent with
the exercise of the Board of Directors’ fiduciary duties to the stockholders of the General Partner
under applicable law.

          (e) Notwithstanding Section 7.1(c),

               (i) a General Partner may transfer all or any portion of its General Partnership Interest to
(A) a wholly-owned Subsidiary of such General Partner or (B) the owner of all of the ownership
interests of such General Partner, and following a transfer of all of its General Partnership
Interest, may withdraw as General Partner; and

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               (ii) the General Partner may engage in a transaction not required by law or by the rules of
any national securities exchange on which the REIT Shares are listed to be submitted to the vote of
the holders of the REIT Shares.

     7.2 Admission of a Substitute or Additional General Partner.

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

          (a) the Person to be admitted as a substitute or additional General Partner shall have
accepted and agreed to be bound by all the terms and provisions of this Agreement by executing a
counterpart thereof and such other documents or instruments as may be required or appropriate in
order to effect the admission of such Person as a General Partner, and a certificate evidencing the
admission of such Person as a General Partner shall have been filed for recordation and all other
actions required by Section 2.5 hereof in connection with such admission shall have been performed;

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

          (c) counsel for the Partnership shall have rendered an opinion (relying on such opinions from
other counsel as may be necessary) that (x) the admission of the person to be admitted as a
substitute or additional General Partner is in conformity with the Act and (y) none of the actions
taken in connection with the admission of such Person as a substitute or additional General Partner
will cause (i) the Partnership to be classified other than as a partnership for federal tax
purposes, or (ii) the loss of any Limited Partner’s limited liability.

     7.3 Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner.

          (a) Upon the occurrence of an Event of Bankruptcy as to a General Partner (and its removal
pursuant to Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of a General
Partner (except that, if a General Partner is on the date of such occurrence a partnership, the
withdrawal, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such
partnership shall be deemed not to be a dissolution of such General Partner if the business of such
General Partner is continued by the remaining partner or partners), the Partnership shall be
dissolved and terminated unless the Partnership is continued pursuant to Section 7.3(b) hereof. The
merger of the General Partner with or into any entity that is admitted as a substitute or successor
General Partner pursuant to Section 7.2 hereof shall not be deemed to be the withdrawal,
dissolution or removal of the General Partner.

          (b) Following the occurrence of an Event of Bankruptcy as to a General Partner (and its
removal pursuant to Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of a
General Partner (except that, if a General Partner is, on the date of such occurrence, a
partnership, the withdrawal of, death, dissolution, Event of Bankruptcy as to, or removal of a
partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the
business of such General Partner is continued by the remaining partner or partners), the Limited
Partners, within ninety (90) days after such
occurrence, may elect to continue the business of the Partnership for the balance of the term
specified in Section 2.4 hereof by selecting, subject to Section 7.2 hereof and any other
provisions of this Agreement, a substitute General Partner by consent of a majority in interest of
the Limited Partners. If the Limited Partners elect to continue the business of the Partnership and
admit a substitute General Partner, the

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relationship with the Partners and of any Person who has
acquired an interest of a Partner in the Partnership shall be governed by this Agreement.

     7.4 Removal of a General Partner.

          (a) Upon the occurrence of an Event of Bankruptcy as to, or the dissolution of, a General
Partner, such General Partner shall be deemed to be removed automatically; provided, however, that
if a General Partner is on the date of such occurrence a partnership, the withdrawal, death or
dissolution of, Event of Bankruptcy as to, or removal of, a partner in, such partnership shall be
deemed not to be a dissolution of the General Partner if the business of such General Partner is
continued by the remaining partner or partners. The Limited Partners may not remove the General
Partner, with or without cause.

          (b) If a General Partner has been removed pursuant to this Section 7.4 and the Partnership is
continued pursuant to Section 7.3 hereof, such General Partner shall promptly transfer and assign
its General Partnership Interest in the Partnership to the substitute General Partner approved by a
majority in interest of the Limited Partners in accordance with Section 7.3(b) hereof and otherwise
admitted to the Partnership in accordance with Section 7.2 hereof. At the time of assignment, the
removed General Partner shall be entitled to receive from the substitute General Partner the fair
market value of the General Partnership Interest of such removed General Partner as reduced by any
damages caused to the Partnership by such General Partner. Such fair market value shall be
determined by an appraiser mutually agreed upon by the General Partner and a majority in interest
of the Limited Partners within ten (10) days following the removal of the General Partner. In the
event that the parties are unable to agree upon an appraiser, the removed General Partner and a
majority in interest of the Limited Partners each shall select an appraiser. Each such appraiser
shall complete an appraisal of the fair market value of the removed General Partner’s General
Partnership Interest within thirty (30) days of the General Partner’s removal, and the fair market
value of the removed General Partner’s General Partnership Interest shall be the average of the two
appraisals; provided, however, that if the higher appraisal exceeds the lower appraisal by more
than 20% of the amount of the lower appraisal, the two appraisers, no later than forty (40) days
after the removal of the General Partner, shall select a third appraiser who shall complete an
appraisal of the fair market value of the removed General Partner’s General Partnership Interest no
later than sixty (60) days after the removal of the General Partner. In such case, the fair market
value of the removed General Partner’s General Partnership Interest shall be the average of the two
appraisals closest in value.

          (c) The General Partnership Interest of a removed General Partner, during the time after
default until transfer under Section 7.4(b), shall be converted to that of a special Limited
Partner; provided, however, such removed General Partner shall not have any rights to participate
in the management and affairs of the Partnership, and shall not be entitled to any portion of the
income, expense, profit, gain or loss allocations or cash distributions allocable or payable, as
the case may be, to the Limited Partners. Instead, such removed General Partner shall receive and
be entitled only to retain distributions or allocations of such items that it would have been
entitled to receive in its capacity as General Partner, until the transfer is effective pursuant to
Section 7.4(b).

          (d) All Partners shall have given and hereby do give such consents, shall take such actions
and shall execute such documents as shall be legally necessary, desirable and sufficient to effect
all the foregoing provisions of this Section.

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ARTICLE 8.

RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

     8.1 Management of the Partnership.

     The Limited Partners shall not participate in the management or control of Partnership
business nor shall they transact any business for the Partnership, nor shall they have the power to
sign for or bind the Partnership, such powers being vested solely and exclusively in the General
Partner.

     8.2 Power of Attorney.

     Each Limited Partner hereby irrevocably appoints the General Partner its true and lawful
attorney-in-fact, who may act for each Limited Partner and in its name, place and stead, and for
its use and benefit, to sign, acknowledge, swear to, deliver, file or record, at the appropriate
public offices, any and all documents, certificates, and instruments as may be deemed necessary or
desirable by the General Partner to carry out fully the provisions of this Agreement and the Act in
accordance with their terms, which power of attorney is coupled with an interest and shall survive
the death, dissolution or legal incapacity of the Limited Partner, or the transfer by the Limited
Partner of any part or all of its Partnership Interest.

     8.3 Limitation on Liability of Limited Partners.

     No Limited Partner shall be liable for any debts, liabilities, contracts or obligations of the
Partnership. A Limited Partner shall be liable to the Partnership only to make payments of its
Capital Contribution, if any, as and when due hereunder. After its Capital Contribution is fully
paid, no Limited Partner shall, except as otherwise required by the Act, be required to make any
further Capital Contributions or other payments or lend any funds to the Partnership.

     8.4 Ownership by Limited Partner of Corporate General Partner or Affiliate.

     No Limited Partner shall at any time, either directly or indirectly, own any stock or other
interest in the General Partner or in any Affiliate thereof, if such ownership by itself or in
conjunction with other stock or other interests owned by other Limited Partners would, in the
opinion of counsel for the Partnership, jeopardize the classification of the Partnership as a
partnership for federal tax purposes. The General Partner shall be entitled to make such reasonable
inquiry of the Limited Partners as is required to establish compliance by the Limited Partners with
the provisions of this Section.

     8.5 Redemption Right.

          (a) Subject to Sections 8.5(b), 8.5(c), 8.5(d), 8.5(e) and 8.5(f) and the provisions of any
agreements between the Partnership and one or more Limited Partners with respect to Partnership
Units held by them, each Limited Partner, other than the General Partner, shall, after holding
their Partnership Units for at least one year, have the right (subject to the terms and conditions
set forth herein) to require the Partnership to redeem (a “Redemption”) all or a portion of
the Partnership Units held by such Limited Partner in exchange (a “Redemption Right”) for
REIT shares issuable on, or the Cash Amount payable on, the Specified Redemption Date, as
determined by the General Partner in its sole discretion, provided that such Partnership Units (the
“Tendered Units”) shall have been outstanding for at least one year. Any Redemption Right
shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to
the General Partner) by the Limited Partner exercising the Redemption Right (the “Tendering
Party”). No Limited Partner may deliver more than two Notices of Redemption during each
calendar year. A Limited Partner may not exercise the Redemption Right for less than 1,000

31

 

Partnership Units or, if such Limited Partner holds less than 1,000 Partnership Units, all of
the Partnership Units held by such Partner. The Tendering Party shall have no right, with respect
to any Partnership Units so redeemed, to receive any distribution paid with respect to Partnership
Units if the record date for such distribution is on or after the Specified Redemption Date.

          (b) If the General Partner elects to redeem Tendered Units for REIT Shares rather than cash,
then the Partnership shall direct the General Partner to issue and deliver such REIT Shares to the
Tendering Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i) the
General Partner, acting as a distinct legal entity, shall assume directly the obligation with
respect thereto and shall satisfy the Tendering Party’s exercise of its Redemption Right, and
(ii) such transaction shall be treated, for federal income tax purposes, as a transfer by the
Tendering Party of such Tendered Units to the General Partner in exchange for REIT shares. The
percentage of the Tendered Units tendered for Redemption by the Tendering Party for which the
General Partner elects to issue REIT Shares (rather than cash) is referred to as the
“Applicable Percentage.” In making such election to acquire Tendered Units, the Partnership
shall act in a fair, equitable and reasonable manner that neither prefers one group or class of
Limited Partners over another nor discriminates against a group or class of Limited Partners. If
the Partnership elects to redeem any number of Tendered Units for REIT Shares, rather than cash, on
the Specified Redemption Date, the Tendering Party shall sell such number of the Tendered Units to
the General Partner in exchange for a number of REIT Shares equal to the product of the REIT Shares
Amount and the Applicable Percentage. The product of the Applicable Percentage and the REIT Shares
Amount, if applicable, shall be delivered by the General Partner as duly authorized, validly
issued, fully paid and accessible REIT Shares free of any pledge, lien, encumbrance or restriction,
other than the Aggregate Share Ownership Limit and other restrictions provided in the Article of
Incorporation, the bylaws of the General Partner, the Securities Act and relevant state securities
or “blue sky” laws. Notwithstanding the provisions of Section 8.5(a) and this Section 8.5(b), the
Tendering Parties shall have no rights under this Agreement that would otherwise be prohibited
under the Articles of Incorporation.

          (c) In connection with an exercise of Redemption Rights pursuant to this Section 8.5, the
Tendering Party shall submit the following to the General Partner, in addition to the Notice of
Redemption:

               (1) A written affidavit, dated the same date as the Notice of Redemption, (a) disclosing the
actual and constructive ownership, as determined for purposes of Code Sections 856(a)(6) and
856(h), of REIT Shares by (i) such Tendering Party and (ii) any Related Party and (b) representing
that, after giving effect to the Redemption, neither the Tendering Party nor any Related Party will
own REIT Shares in excess of the Aggregate Share Ownership Limit (or, if applicable the Excepted
Holder Limit);

               (2) A written representation that neither the Tendering Party nor any Related Party has any
intention to acquire any additional REIT Shares prior to the closing of the Redemption on the
Specified Redemption Date;

               (3) An undertaking to certify, at and as a condition to the closing of the Redemption on the
Specified Redemption Date, that either (a) the actual and constructive ownership of REIT Shares by
the Tendering Party and any Related Party remain unchanged from that disclosed in the affidavit
required by Section 8.5(c)(1) or (b) after giving effect to the Redemption, neither the Tendering
Party nor any Related Party shall own REIT Shares in violation of the Aggregate Share Ownership
Limit (or, if applicable, the Excepted Holder Limit); and

               (4) Any other documents as the General Partner may reasonably require in connection with the
issuance of REIT Shares upon the exercise of the Redemption Right.

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          (d) Any Cash Amount to be paid to a Tendering Party pursuant to this Section 8.5 shall be paid
on the Specified Redemption Date; provided, however, that the General Partner may elect to cause
the Specified Redemption Date to be delayed for up to an additional 180 days to the extent required
for the General Partner to cause additional REIT Shares to be issued to provide financing to be
used to make such payment of the Cash Amount. Notwithstanding the foregoing, the General Partner
agrees to use its best efforts to cause the closing of the acquisition of Tendered Units hereunder
to occur as quickly as reasonably possible.

          (e) Notwithstanding any other provision of this Agreement, the General Partner shall place
appropriate restrictions on the ability of the Limited Partners to exercise their Redemption Rights
to prevent, among other things, (a) any person from owning shares in excess of the Common Share
Ownership Limit, the Aggregate Share Ownership Limit and the Excepted Holder Limit, (b) the General
Partner’s common stock from being owned by less than 100 persons, the General Partner from being
“closely held” within the meaning of section 856(h) of the Code, and as and if deemed necessary to
ensure that the Partnership does not constitute a “publicly traded partnership” under section 7704
of the Code. If and when the General Partner determines that imposing such restrictions is
necessary, the General Partner shall give prompt written notice thereof (a “Restriction
Notice”) to each of the Limited Partners holding Partnership Units, which notice shall be
accompanied by a copy of an opinion of counsel to the Partnership which states that, in the opinion
of such counsel, restrictions are necessary in order to avoid having the Partnership be treated as
a “publicly traded partnership” under section 7704 of the Code.

          (f) A redemption fee may be charged in connection with an exercise of Redemption Rights
pursuant to this Section 8.5.

     8.6 Redemption of Special Partnership Units.

     Upon the earliest to occur of (a) the termination or nonrenewal of the Advisory Agreement for
“cause” (as defined in the Advisory Agreement), (b) a Termination Event, or (c) the Listing, the
Special Partnership Units will be redeemed.

          (a) Redemption of Special Partnership Units Upon Termination or Nonrenewal of the Advisory
Agreement for Cause. If the Advisory Agreement is terminated or not renewed by the General Partner
for “cause” (as defined in the Advisory Agreement), all of the Special Partnership Units shall be
redeemed by the Partnership for $1 within thirty (30) days after the termination or nonrenewal of
the Advisory Agreement.

          (b) Redemption of Special Partnership Units upon a Termination Event or the Listing. Upon the
occurrence of a Termination Event or the Listing, the Special Partnership Units shall be redeemed
for an aggregate amount equal to the Net Sales Proceeds that would have been distributed to the
Special OP Unitholders under Section 5.2(b)(i)(B)(2) if all assets of the Partnership had been sold
for their fair market value and all liabilities of the Partnership had been satisfied in full
according to their terms. Such redemption shall occur no later than thirty (30) days after the date
of a Termination Event and no later than 240 days after the Listing. In determining the fair market
value of the assets of the Partnership, (i) in connection with a Termination Event, the General
Partner shall obtain an appraisal of the assets of the Partnership (excluding any assets which may
be readily marked to market) and (ii) in connection with the Listing, the General Partner shall
make such determination taking into account the market value of the General Partner’s listed shares
based upon the average closing price, or average of bid and asked prices, as the case may be,
during a period of thirty (30) days during which such shares are traded beginning 150 days after
the Listing. Payment to Special OP Unitholders upon a Termination Event or a Listing shall consist
of a non-interest bearing promissory note that will be repaid using the net proceeds of each sale
of an asset or assets of the Partnership in connection with or following the

33

 

occurrence of the Termination Event or Listing. However, payments may not be made under a
promissory note issued in connection with a Termination Event until either (a) the closing of asset
sales that result in aggregate, cumulative distributions to the OP Unitholders of the Partnership
from operating income, sales proceeds and other sources in an amount equal to their Capital
Contributions to the Partnership plus an 8% cumulative non-compounded annual pre-tax return
thereon, or (b) a Listing (each a “Subsequent Liquidity Event.”) In addition, the amount of
the promissory note issued in connection with a Termination Event will be subject to reduction as
of the date of the Subsequent Liquidity Event by an amount that will ensure that, in connection
with the Subsequent Liquidity Event, the holder of the promissory note does not receive in excess
of 15% of the distributions that are made or are deemed to be made by the Partnership after the OP
Unitholders have received or are deemed to have received aggregate, cumulative distributions equal
to their Capital Contributions to the Partnership plus a 8% cumulative non-compounded annual
pre-tax return thereon.

     8.7 Distribution Reinvestment Plan.

     OP Unitholders may have the opportunity to join the General Partner’s distribution
reinvestment plan by completing an enrollment form which is available upon request. A copy of the
General Partner’s distribution reinvestment plan is also available upon request. The shares of the
General Partner’s common stock which may be issued under the General Partner’s distribution
reinvestment plan are offered only by a prospectus.

ARTICLE 9.

TRANSFERS OF LIMITED PARTNERSHIP INTERESTS

     9.1 Purchase for Investment.

          (a) Each Limited Partner hereby represents and warrants to the General Partner and to the
Partnership that the acquisition of his Partnership Interest is made as a principal for his account
for investment purposes only and not with a view to the resale or distribution of such Partnership
Interest.

          (b) Each Limited Partner agrees that he will not sell, assign or otherwise transfer his
Partnership Interest or any fraction thereof, whether voluntarily or by operation of law or at
judicial sale or otherwise, to any Person who does not make the representations and warranties to
the General Partner set forth in Section 9.1(a) above and similarly agree not to sell, assign or
transfer such Partnership Interest or fraction thereof to any Person who does not similarly
represent, warrant and agree.

     9.2 Restrictions on Transfer of Limited Partnership Interests.

          (a) Subject to the provisions of 9.2(b) and (c), no Limited Partner may offer, sell, assign,
hypothecate, pledge or otherwise transfer all or any portion of his Limited Partnership Interest,
or any of such Limited Partner’s economic rights as a Limited Partner, whether voluntarily or by
operation of law or at judicial sale or otherwise (collectively, a “Transfer”) without the
consent of the General Partner, which consent may be granted or withheld in its sole and absolute
discretion. Any such purported transfer undertaken without such consent shall be considered to be
null and void ab initio and shall not be given effect. The General Partner may require, as a
condition of any Transfer to which it consents, that the transferor assume all costs incurred by
the Partnership in connection therewith.

          (b) No Limited Partner may withdraw from the Partnership other than as a result of a permitted
Transfer (i.e., a Transfer consented to as contemplated by clause (a) above or clause (c) below or
a Transfer pursuant to Section 9.5 below) of all of its Partnership Interest pursuant to this
Article 9 or pursuant to a redemption of all of its Partnership Units pursuant to Section 8.5 or
pursuant to the

34

 

redemption of the Limited Partner’s Special Partnership Units pursuant to Section 8.7. Upon
the permitted Transfer or redemption of all of a Limited Partner’s Partnership Interest, such
Limited Partner shall cease to be a Limited Partner.

          (c) Notwithstanding Section 9.2(a) and subject to Sections 9.2(d), (e) and (f) below, a
Limited Partner may Transfer, without the consent of the General Partner, all or a portion of its
Partnership Interest to (i) a parent or parent’s spouse, natural or adopted descendant or
descendants, spouse of such descendant, or brother or sister, or a trust created by such Limited
Partner for the benefit of such Limited Partner and/or any such person(s), of which trust such
Limited Partner or any such person(s) is a trustee, (ii) a corporation controlled by a Person or
Persons named in (i) above, or (iii) if the Limited Partner is an entity, its beneficial owners.

          (d) No Limited Partner may effect a Transfer of its Limited Partnership Interest, in whole or
in part, if, in the opinion of legal counsel for the Partnership, such proposed Transfer would
require the registration of the Limited Partnership Interest under the Securities Act or would
otherwise violate any applicable federal or state securities or blue sky law (including investment
suitability standards).

          (e) No Transfer by a Limited Partner of its Partnership Interest, in whole or in part, may be
made to any Person if (i) in the opinion of legal counsel for the Partnership, the transfer would
result in the Partnership’s being treated as an association taxable as a corporation (other than a
qualified REIT subsidiary within the meaning of Section 856(i) of the Code), (ii) in the opinion of
legal counsel for the Partnership, it would adversely affect the ability of the General Partner to
continue to qualify as a REIT or subject the General Partner to any additional taxes under
Section 857 or Section 4981 of the Code, or (iii) such transfer is effectuated through an
“established securities market” or a “secondary market (or the substantial equivalent thereof)”
within the meaning of Section 7704 of the Code.

          (f) No transfer by a Limited Partner of any Partnership Interest may be made to a lender to
the Partnership or any Person who is related (within the meaning of Regulations Section 1.752-4(b))
to any lender to the Partnership whose loan constitutes a Nonrecourse Liability, without the
consent of the General Partner, which may be withheld in its sole and absolute discretion, provided
that as a condition to such consent the lender will be required to enter into an arrangement with
the Partnership and the General Partner to exchange or redeem for the Cash Amount any Partnership
Units in which a security interest is held simultaneously with the time at which such lender would
be deemed to be a Partner in the Partnership for purposes of allocating liabilities to such lender
under Section 752 of the Code.

          (g) Any Transfer in contravention of any of the provisions of this Article 9 shall be void and
ineffectual and shall not be binding upon, or recognized by, the Partnership.

          (h) Prior to the consummation of any Transfer under this Article 9, the transferor and/or the
transferee shall deliver to the General Partner such opinions, certificates and other documents as
the General Partner shall request in connection with such Transfer.

     9.3 Admission of Substitute Limited Partner.

          (a) Subject to the other provisions of this Article 9, an assignee of the Limited Partnership
Interest of a Limited Partner (which shall be understood to include any purchaser, transferee,
donee, or other recipient of any disposition of such Limited Partnership Interest) shall be deemed
admitted as a Limited Partner of the Partnership only with the consent of the General Partner and
upon the satisfactory completion of the following:

35

 

               (i) The assignee shall have accepted and agreed to be bound by the terms and provisions of
this Agreement by executing a counterpart or an amendment thereof, including a revised Exhibit A,
and such other documents or instruments as the General Partner may require in order to effect the
admission of such Person as a Limited Partner.

               (ii) To the extent required, an amended Certificate evidencing the admission of such Person as
a Limited Partner shall have been signed, acknowledged and filed for record in accordance with the
Act.

               (iii) The assignee shall have delivered a letter containing the representation set forth in
Section 9.1(a) hereof and the agreement set forth in Section 9.1(b) hereof.

               (iv) If the assignee is a corporation, partnership or trust, the assignee shall have provided
the General Partner with evidence satisfactory to counsel for the Partnership of the assignee’s
authority to become a Limited Partner under the terms and provisions of this Agreement.

               (v) The assignee shall have executed a power of attorney containing the terms and provisions
set forth in Section 8.2 hereof.

               (vi) The assignee shall have paid all legal fees and other expenses of the Partnership and the
General Partner and filing and publication costs in connection with its substitution as a Limited
Partner.

               (vii) The assignee has obtained the prior written consent of the General Partner to its
admission as a Substitute Limited Partner, which consent may be given or denied in the exercise of
the General Partner’s sole and absolute discretion.

          (b) For the purpose of allocating Profits and Losses and distributing cash received by the
Partnership, a Substitute Limited Partner shall be treated as having become, and appearing in the
records of the Partnership as, a Partner upon the filing of the Certificate described in
Section 9.3(a)(ii) hereof or, if no such filing is required, the later of the date specified in the
transfer documents or the date on which the General Partner has received all necessary instruments
of transfer and substitution.

          (c) The General Partner shall cooperate with the Person seeking to become a Substitute Limited
Partner by preparing the documentation required by this Section and making all official filings and
publications. The Partnership shall take all such action as promptly as practicable after the
satisfaction of the conditions in this Article 9 to the admission of such Person as a Limited
Partner of the Partnership.

     9.4 Rights of Assignees of Partnership Interests.

          (a) Subject to the provisions of Sections 9.1 and 9.2 hereof, except as required by operation
of law, the Partnership shall not be obligated for any purposes whatsoever to recognize the
assignment by any Limited Partner of its Partnership Interest until the Partnership has received
notice thereof.

          (b) Any Person who is the assignee of all or any portion of a Limited Partner’s Limited
Partnership Interest, but does not become a Substitute Limited Partner and desires to make a
further assignment of such Limited Partnership Interest, shall be subject to all the provisions of
this

36

 

Article 9 to the same extent and in the same manner as any Limited Partner desiring to make an
assignment of its Limited Partnership Interest.

     9.5 Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner.

     The occurrence of an Event of Bankruptcy as to a Limited Partner, the death of a Limited
Partner or a final adjudication that a Limited Partner is incompetent (which term shall include,
but not be limited to, insanity) shall not cause the termination or dissolution of the Partnership,
and the business of the Partnership shall continue if an order for relief in a bankruptcy
proceeding is entered against a Limited Partner, the trustee or receiver of his estate or, if he
dies, his executor, administrator or trustee, or, if he is finally adjudicated incompetent, his
committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose
of settling or managing his estate property and such power as the bankrupt, deceased or incompetent
Limited Partner possessed to assign all or any part of his Partnership Interest and to join with
the assignee in satisfying conditions precedent to the admission of the assignee as a Substitute
Limited Partner.

     9.6 Joint Ownership of Interests.

     A Partnership Interest may be acquired by two individuals as joint tenants with right of
survivorship, provided that such individuals either are married or are related and share the same
home as tenants in common. The written consent or vote of both owners of any such jointly held
Partnership Interest shall be required to constitute the action of the owners of such Partnership
Interest; provided, however, that the written consent of only one joint owner will be required if
the Partnership has been provided with evidence satisfactory to the counsel for the Partnership
that the actions of a single joint owner can bind both owners under the applicable laws of the
state of residence of such joint owners. Upon the death of one owner of a Partnership Interest held
in a joint tenancy with a right of survivorship, the Partnership Interest shall become owned solely
by the survivor as a Limited Partner and not as an assignee. The Partnership need not recognize the
death of one of the owners of a jointly-held Partnership Interest until it shall have received
notice of such death. Upon notice to the General Partner from either owner, the General Partner
shall cause the Partnership Interest to be divided into two equal Partnership Interests, which
shall thereafter be owned separately by each of the former owners.

ARTICLE 10.

BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

     10.1 Books and Records.

     At all times during the continuance of the Partnership, the Partners shall keep or cause to be
kept at the Partnership’s specified office true and complete books of account in accordance with
generally accepted accounting principles, including: (a) a current list of the full name and last
known business address of each Partner, (b) a copy of the Certificate of Limited Partnership and
all Certificates of amendment thereto, (c) copies of the Partnership’s federal, state and local
income tax returns and reports, (d) copies of this Agreement and amendments thereto and any
financial statements of the Partnership for the three most recent years and (e) all documents and
information required under the Act. Any Partner or its duly authorized representative, upon paying
the costs of collection, duplication and mailing, shall be entitled to inspect or copy such records
during ordinary business hours.

     10.2 Custody of Partnership Funds; Bank Accounts.

          (a) All funds of the Partnership not otherwise invested shall be deposited in one or more
accounts maintained in such banking or brokerage institutions as the General Partner shall

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determine, and withdrawals shall be made only on such signature or signatures as the General
Partner may, from time to time, determine.

          (b) All deposits and other funds not needed in the operation of the business of the
Partnership may be invested by the General Partner in investment grade instruments (or investment
companies whose portfolio consists primarily thereof), government obligations, certificates of
deposit, bankers’ acceptances and municipal notes and bonds. The funds of the Partnership shall not
be commingled with the funds of any other Person except for such commingling as may necessarily
result from an investment in those investment companies permitted by this Section 10.2(b).

     10.3 Fiscal and Taxable Year.

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

     10.4 Annual Tax Information and Report.

     Within seventy-five (75) days after the end of each fiscal year of the Partnership, the
General Partner shall furnish to each person who was a Limited Partner at any time during such year
the tax information necessary to file such Limited Partner’s individual tax returns as shall be
reasonably required by law.

     10.5 Tax Matters Partner; Tax Elections; Special Basis Adjustments.

          (a) The General Partner shall be the Tax Matters Partner of the Partnership within the meaning
of Section 6231(a)(7) of the Code. As Tax Matters Partner, the General Partner shall have the right
and obligation to take all actions authorized and required, respectively, by the Code for the Tax
Matters Partner. The General Partner shall have the right to retain professional assistance in
respect of any audit of the Partnership by the Service and all out-of-pocket expenses and fees
incurred by the General Partner on behalf of the Partnership as Tax Matters Partner shall
constitute Partnership expenses. In the event the General Partner receives notice of a final
Partnership adjustment under Section 6223(a)(2) of the Code, the General Partner shall either
(i) file a court petition for judicial review of such final adjustment within the period provided
under Section 6226(a) of the Code, a copy of which petition shall be mailed to all Limited Partners
on the date such petition is filed, or (ii) mail a written notice to all Limited Partners, within
such period, that describes the General Partner’s reasons for determining not to file such a
petition.

          (b) All elections required or permitted to be made by the Partnership under the Code or any
applicable state or local tax law shall be made by the General Partner in its sole and absolute
discretion.

          (c) In the event of a transfer of all or any part of the Partnership Interest of any Partner,
the Partnership, at the option of the General Partner, may elect pursuant to Section 754 of the
Code to adjust the basis of the Partnership’s assets. Notwithstanding anything contained in Article
5 of this Agreement, any adjustments made pursuant to Section 754 of the Code shall affect only the
successor in interest to the transferring Partner and in no event shall be taken into account in
establishing, maintaining or computing Capital Accounts for the other Partners for any purpose
under this Agreement. Each Partner will furnish the Partnership with all information necessary to
give effect to such election.

38

 

     10.6 Reports to Limited Partners.

          (a) As soon as practicable after the close of each fiscal quarter (other than the last quarter
of the fiscal year), the General Partner shall cause to be mailed to each Limited Partner a
quarterly report containing financial statements of the Partnership, or of the General Partner if
such statements are prepared solely on a consolidated basis with the General Partner, for such
fiscal quarter, presented in accordance with generally accepted accounting principles. As soon as
practicable after the close of each fiscal year, the General Partner shall cause to be mailed to
each Limited Partner an annual report containing financial statements of the Partnership, or of the
General Partner if such statements are prepared solely on a consolidated basis with the General
Partner, for such fiscal year, presented in accordance with generally accepted accounting
principles. The annual financial statements shall be audited by accountants selected by the General
Partner.

          (b) Any Partner shall further have the right to a private audit of the books and records of
the Partnership at the expense of such Partner, provided such audit is made for Partnership
purposes and is made during normal business hours.

ARTICLE 11.

AMENDMENT OF AGREEMENT; MERGER

     The General Partner’s consent shall be required for any amendment to this Agreement. The
General Partner, without the consent of the Limited Partners, may amend this Agreement in any
respect or merge or consolidate the Partnership with or into any other partnership or business
entity (as defined in Section 17-211 of the Act) in a transaction pursuant to Section 7.1(c),
(d) or (e) hereof; provided, however, that the following amendments and any other merger or
consolidation of the Partnership shall require (i) the consent of Limited Partners holding more
than 50% of the Percentage Interests of the Limited Partners and (ii) in the case of any of the
following (b), (c) or (d), the consent of Limited Partners holding more than 50% of the Special
Percentage Interests of the Limited Partners:

          (a) any amendment affecting the operation of the Conversion Factor or the Redemption Right
(except as provided in Section 8.5(d) or 7.1(d) hereof) in a manner adverse to the Limited
Partners;

          (b) any amendment that would adversely affect the rights of the Limited Partners to receive
the distributions payable to them hereunder, other than with respect to the issuance of additional
Partnership Units pursuant to Section 4.2 hereof;

          (c) any amendment that would alter the Partnership’s allocations of Profit and Loss to the
Limited Partners, other than with respect to the issuance of additional Partnership Units pursuant
to Section 4.2 hereof; or

          (d) any amendment that would impose on the Limited Partners any obligation to make additional
Capital Contributions to the Partnership.

ARTICLE 12.

GENERAL PROVISIONS

     12.1 Notices.

     All communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been given when delivered personally or upon deposit in the United States mail,

39

 

registered, postage prepaid return receipt requested, to the Partners at the addresses set
forth in Exhibit A attached hereto; provided, however, that any Partner may specify a
different address by notifying the General Partner in writing of such different address. Notices to
the Partnership shall be delivered at or mailed to its specified office.

     12.2 Survival of Rights.

     Subject to the provisions hereof limiting transfers, this Agreement shall be binding upon and
inure to the benefit of the Partners and the Partnership and their respective legal
representatives, successors, transferees and assigns.

     12.3 Additional Documents.

     Each Partner agrees to perform all further acts and execute, swear to, acknowledge and deliver
all further documents which may be reasonable, necessary, appropriate or desirable to carry out the
provisions of this Agreement or the Act.

     12.4 Severability.

     If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any
jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the
extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not
affect the remainder hereof.

     12.5 Entire Agreement.

     This Agreement and exhibits attached hereto constitute the entire Agreement of the Partners
and supersede all prior written agreements and prior and contemporaneous oral agreements,
understandings and negotiations with respect to the subject matter hereof.

     12.6 Pronouns and Plurals.

     When the context in which words are used in the Agreement indicates that such is the intent,
words in the singular number shall include the plural and the masculine gender shall include the
neuter or female gender as the context may require.

     12.7 Headings.

     The Article headings or sections in this Agreement are for convenience only and shall not be
used in construing the scope of this Agreement or any particular Article.

     12.8 Counterparts.

     This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original copy and all of which together shall constitute one and the same instrument binding on all
parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

40

 

     12.9 Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware; provided, however, that any cause of action for violation of federal or state securities
laws shall not be governed by this Section 12.9.

41

 

     IN WITNESS WHEREOF, the parties hereto have hereunder affixed their signatures to this
Agreement of Limited Partnership, all as of the 9th day of November, 2007.

	 	 	 	 	 
	 	GENERAL PARTNER:

Green Realty Trust, Inc.

 	 
	 	By:  	/s/ Wayne R. Hannah III
 	 
	 	 	    Wayne R. Hannah III 	 
	 	 	    President 	 
	 

	 	 	 	 	 
	 	LIMITED PARTNERS:

Insight Green REIT Advisor, LLC
 	 
	 	By:  	Insight Real Estate, LLC, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	                       /s/      Wayne R. Hannah III
 	 
	 	Name:  	    Wayne R. Hannah III 	 
	 	Title:  	    President 	 
	 

	 	 	 	 	 
	 	Insight Management, LLC
 	 
	 	By:  	     Insight Real Estate, LLC, its Sole Member
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                       /s/      Wayne R. Hannah III
 	 
	 	Name:  	    Wayne R. Hannah III 	 
	 	Title:  	    President 	 
	 

 

 

EXHIBIT A

CONTRIBUTIONS AND INTEREST

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Special	 	 	 	 	 	 	Special	 
	 	 	Cash	 	 	 	 	 	 	Partnership	 	 	Partnership	 	 	Percentage	 	 	Percentage	 
	Partner	 	Contribution	 	 	Contribution	 	 	     Units    	 	 	     Units     	 	 	  Interest   	 	 	  Interest  	 
	GENERAL PARTNER:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Green Realty
Trust, Inc.
	 	$	1,000	 	 	 	 	 	 	 	100	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ORIGINAL LIMITED
PARTNERS::
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insight Green
REIT Advisor,
LLC
	 	$	1,000	 	 	 	 	 	 	 	100	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insight
Management,
LLC
	 	$	1,000	 	 	 	 	 	 	 	 	 	 	 	100	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Totals
	 	$	3,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT B

NOTICE OF EXERCISE OF REDEMPTION RIGHT

     In accordance with Section 8.5 of the Limited Partnership Agreement (the “Agreement”) of Green
REIT Operating Partnership, LP, the undersigned hereby irrevocably (i) presents for redemption
             Partnership Units in Green REIT Operating Partnership, LP in accordance with
the terms of the Agreement and the Redemption Right referred to in Section 8.5 thereof,
(ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs
that the Cash Amount or REIT Shares Amount (as defined in the Agreement) as determined by the
General Partner deliverable upon exercise of the Redemption Right be delivered to the address
specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT
Shares be registered or placed in the name(s) and at the address(es) specified below.

	 	 	 	 	 
	Dated:                                    ,                 

	 	 
	 	 
	 

	 	 

(Name of Limited Partner)
	 	 
	 
	 	 	 	 
	 

	 

	 	 	 	 
	 

	 	(Signature of Limited Partner)	 	 
	 
	 	 	 	 
	 

	 

	 	 	 	 
	 

	 	(Mailing Address)	 	 
	 
	 	 	 	 
	 

	 

	 	 	 	 
	 

	 	(City)                               (State)                               (Zip Code)	 	 
	 
	 	 	 	 
	 

	 	Signature Guaranteed by:	 	 
	 
	 	 	 	 
	 

	 

	 	 	 	 
	If REIT Shares are to be issued, issue to:
	 	 	 	 

Name:                                                                                                           

Social Security or Tax I.D. Number:

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