Document:

ex10-6.htm

    Exhibit
      10.6

     

    

    
      

       

      CENTERLINE

      2007
        SHARE INCENTIVE PLAN

      ___________________________________

      

      2007
        Outperformance Program

      

      ___________________________________

       

       August
        10, 2007

       

      CONFIDENTIAL

      

      Mr.
        Robert Levy

      418
        Westena Terrace

      Ridgewood,
        NJ 07450

       

      
        	
                Re:

              	
                 Your
                  Participation Interest for the 2007 to 2009 Performance
                  Period

              

      

       

      Dear
        Rob:

       

      You
        have
        been selected by Centerline Holding Company to be a participant in the
        Centerline 2007 Outperformance Program (the “OPP”).  Generally,
        under the OPP, in the event that the Company’s total return per share(as defined
        in the OPP)  to its equity holders during a three-year performance
        period beginning on January 1, 2007 exceeds 37.5%, then an aggregate
        outperformance pool comprising eleven percent (11%) of such excess will be
        formed under the OPP (subject to a maximum pool of U.S.
        $25,000,000).  If and to the extent that any provision contained in
        this Participation OPP Letter is inconsistent with the OPP, the OPP shall
        govern.

       

      The
        aggregate outperformance pool will be paid in the form of restricted common
        shares, which will vest 50% on each of the first two anniversaries of the
        end of
        the performance period, subject to continued employment, except as otherwise
        provided in the OPP.  Special provisions will apply, and you may
        forfeit some or all of your award, in the event that your employment is
        terminated.  Other special rules apply, such as in the event of a
        change in control of the Company.

       

      Subject
        to your acceptance of the terms and conditions of the OPP (which is attached
        for
        your review and reference), your Participation Percentage in the
        OPP  is 5.20%.

       

      Please
        acknowledge receipt of this letter and acceptance of the foregoing terms
        and
        conditions for your participation in the OPP by signing in the space provided
        below and return the signed letter to the attention of Kelly
        Schnur.

      

      
        	
                 Yours
                  truly,

              	
                 

              	 	
                 

              	
                ACKNOWLEDGED
                  BY:

              
	 	 	 
	 /s/
                Nathan
                Gantcher	
                 

              	 	
                 

              	
                 /s/
                  Robert
                  L. Levy  

              
	
                Nathan
                  Gantcher

              	
                 

              	 	
                 

              	
                Robert
                  L. Levy

              
	
                Chairman,
                  Compensation Committee

              	 	 
	 	 	 	
                 

              	
                Date:ex10-7.htm

    Exhibit
      10.7

    

     

    
      

       

      CENTERLINE

      2007
        SHARE INCENTIVE PLAN

      ___________________________________

      

      2007
        Outperformance Program

      

      ___________________________________

       

       August
        10, 2007

       

      CONFIDENTIAL

      

      Mr.
        Larry
        Duggins

      865
        West
        Dove Road

      Southlake,
        TX 76092

       

      
        	
                Re:

              	
                 Your
                  Participation Interest for the 2007 to 2009 Performance
                  Period

              

      

       

      Dear
        Larry:

       

      You
        have
        been selected by Centerline Holding Company to be a participant in the
        Centerline 2007 Outperformance Program (the “OPP”).  Generally,
        under the OPP, in the event that the Company’s total return per share(as defined
        in the OPP)  to its equity holders during a three-year performance
        period beginning on January 1, 2007 exceeds 37.5%, then an aggregate
        outperformance pool comprising eleven percent (11%) of such excess will be
        formed under the OPP (subject to a maximum pool of U.S.
        $25,000,000).  If and to the extent that any provision contained in
        this Participation OPP Letter is inconsistent with the OPP, the OPP shall
        govern.

       

      The
        aggregate outperformance pool will be paid in the form of restricted common
        shares, which will vest 50% on each of the first two anniversaries of the
        end of
        the performance period, subject to continued employment, except as otherwise
        provided in the OPP.  Special provisions will apply, and you may
        forfeit some or all of your award, in the event that your employment is
        terminated.  Other special rules apply, such as in the event of a
        change in control of the Company.

       

      Subject
        to your acceptance of the terms and conditions of the OPP (which is attached
        for
        your review and reference), your Participation Percentage in the
        OPP  is 5.20%.

       

      Please
        acknowledge receipt of this letter and acceptance of the foregoing terms
        and
        conditions for your participation in the OPP by signing in the space provided
        below and return the signed letter to the attention of Kelly
        Schnur.

      

      
        	
                 Yours
                  truly,

              	
                 

              	 	
                 

              	
                ACKNOWLEDGED
                  BY:

              
	 	 	 
	 	
                 

              	 	
                 

              	
                   

              
	
                Nathan
                  Gantcher

              	
                 

              	 	
                 

              	
                Larry
                  Duggins

              
	
                Chairman,
                  Compensation Committee

              	 	 
	 	 	 	
                 

              	
                Date:Unassociated Document

    Exhibit
      10.1

     

    Execution
      Copy

    

     

    LIMITED
      PARTNERSHIP AGREEMENT

     

    OF

     

    NET
      LEASE STRATEGIC ASSETS FUND L.P.

     

    Dated
      as of August 10, 2007

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      TABLE
        OF CONTENTS

      

      Page

    

     

    
      	
              ARTICLE
                I

            	
              DEFINITIONS 

            	
              1

            

    

     

    
      	
               

            	
              Section
                1.1

            	
              Definitions 

            	
              1

            

    

     

    
      	
              ARTICLE
                II

            	
              FORMATION,
                DURATION AND PURPOSES; PURCHASE OF INITIAL
                PROPERTIES 

            	
              16

            

    

     

    
      	
               

            	
              Section
                2.1

            	
              Formation 

            	
              16

            

    

    
       

      
        	
                 

              	
                Section
                  2.2

              	
                
                  Name;
                    Registered Agent and Registered Office

                

              	
                16

              

      

    

     

    
      	
               

            	
              Section
                2.3

            	
              Principal
                Office 

            	
              16

            

    

     

    
      	
               

            	
              Section
                2.4

            	
              Purposes
                and Business 

            	
              16

            

    

     

    
      	
               

            	
              Section
                2.5

            	
              Term 

            	
              16

            

    

     

    
      	
               

            	
              Section
                2.6

            	
              Other
                Qualifications 

            	
              16

            

    

     

    
      	
               

            	
              Section
                2.7

            	
              Limitation
                on the Rights of Partners 

            	
              17

            

    

     

    
      	
               

            	
              Section
                2.8

            	
              Purchase
                of Qualified Sale Assets 

            	
              17

            

    

     

    
      	
               

            	
              Section
                2.9

            	
              Remuneration
                To Partners 

            	
              17

            

    

    
       

      
        	
                ARTICLE
                  III

              	
                MANAGEMENT
                  RIGHTS, DUTIES, AND POWERS  OF THE GENERAL PARTNER; TRANSACTIONS
                  INVOLVING PARTNERS

              	
                17

              

      

       

    

    
      	
               

            	
              Section
                3.1

            	
              Management 

            	
              17

            

    

     

    
      	
               

            	
              Section
                3.2

            	
              Actions
                of the General Partner 

            	
              19

            

    

     

    
      	
               

            	
              Section
                3.3

            	
              Authority
                of the General Partner 

            	
              19

            

    

     

    
      	
               

            	
              Section
                3.4

            	
              Major
                Decisions 

            	
              21

            

    

     

    
      	
               

            	
              Section
                3.5

            	
              Preliminary
                and Annual Plans 

            	
              24

            

    

     

    
      	
               

            	
              Section
                3.6

            	
              Qualified
                Asset Acquisitions 

            	
              25

            

    

     

    
      	
               

            	
              Section
                3.7

            	
              Sale
                of Qualified Assets 

            	
              29

            

    

     

    
      	
               

            	
              Section
                3.8

            	
              Partnership
                Indebtedness 

            	
              29

            

    

     

    
      	
               

            	
              Section
                3.9

            	
              Business
                Opportunity 

            	
              30

            

    

     

    
      	
               

            	
              Section
                3.10

            	
              Payments
                to the Asset Manager of the General Partner 

            	
              32

            

    

     

    
      	
               

            	
              Section
                3.11

            	
              Exculpation 

            	
              33

            

    

     

    
      	
               

            	
              Section
                3.12

            	
              Indemnification 

            	
              34

            

    

    
       

      
        	
                ARTICLE
                  IV

              	
                BOOKS
                  AND RECORDS; REPORTS TO PARTNERS

              	
                35

              

      

       

    

    
      	
               

            	
              Section
                4.1

            	
              Books 

            	
              35

            

    

     

    
      	
               

            	
              Section
                4.2

            	
              Monthly
                and Quarterly Reports 

            	
              35

            

    

     

    
      
         

      

      
        -i-

        
          

        

      

       

    

    
      	 	 	 	 
	 	 	
               TABLE
                OF CONTENTS

            	 
	 	 	
               (continued)

            	 
	 	 	 	 
              
              Page

            
	
               

            	
              Section
                4.3

            	
              Annual
                Reports 

            	
              36

            

    

     

    
      	
               

            	
              Section
                4.4

            	
              Accountants;
                Tax Returns 

            	
              36

            

    

     

    
      	
               

            	
              Section
                4.5

            	
              Accounting
                and Fiscal Year 

            	
              36

            

    

     

    
      	
               

            	
              Section
                4.6

            	
              Partnership
                Funds 

            	
              36

            

    

     

    
      	
               

            	
              Section
                4.7

            	
              Insurance 

            	
              37

            

    

    
      
         

        
          	
                  ARTICLE
                    V

                	
                  CONTRIBUTIONS

                	
                  37

                

        

         

      

    

    
      	
               

            	
              Section
                5.1

            	
              Capital
                Contributions 

            	
              37

            

    

     

    
      	
               

            	
              Section
                5.2

            	
              Preferred
                Equity Capital Contribution 

            	
              40

            

    

     

    
      	
               

            	
              Section
                5.3

            	
              Return
                of Capital Contribution 

            	
              40

            

    

     

    
      	
               

            	
              Section
                5.4

            	
              Liability
                of the Limited Partners 

            	
              40

            

    

     

    
      	
               

            	
              Section
                5.5

            	
              No
                Third Party Beneficiaries 

            	
              40

            

    

    
       

      
        	
                ARTICLE
                  VI

              	
                MAINTENANCE
                  OF CAPITAL ACCOUNTS; ALLOCATION OF PROFITS AND LOSSES FOR BOOK
                  AND TAX
                  PURPOSES

              	
                41

              

      

       

    

    
      	
               

            	
              Section
                6.1

            	
              Capital
                Accounts 

            	
              41

            

    

     

    
      	
               

            	
              Section
                6.2

            	
              Profits
                and Losses 

            	
              42

            

    

     

    
      	
               

            	
              Section
                6.3

            	
              Regulatory
                Allocations 

            	
              42

            

    

     

    
      	
               

            	
              Section
                6.4

            	
              Allocation
                of Tax Items for Tax Purposes 

            	
              44

            

    

     

    
      	
               

            	
              Section
                6.5

            	
              Tax
                Matters Partner 

            	
              45

            

    

     

    
      	
               

            	
              Section
                6.6

            	
              Adjustments 

            	
              45

            

    

    
      
         

        
          	
                  ARTICLE
                    VII

                	
                  DISTRIBUTIONS

                	
                  46

                

        

         

      

    

    
      	
               

            	
              Section
                7.1

            	
              Cash
                Available for Distributions 

            	
              46

            

    

    
      
         

        
          	
                  ARTICLE
                    VIII

                	
                  ARTICLE
                    VIIITRANSFER; REMOVAL OF GENERAL PARTNER

                	
                  48

                

        

      

    

     

    
      	
               

            	
              Section
                8.1

            	
              Prohibition
                on Transfers and Withdrawals by Partners 

            	
              48

            

    

     

    
      	
               

            	
              Section
                8.2

            	
              Removal
                of LMLP GP as General Partner 

            	
              48

            

    

    
       

      
        	
                ARTICLE
                  IX

              	
                TERMINATION

              	
                49

              

      

       

    

    
      	
               

            	
              Section
                9.1

            	
              Dissolution 

            	
              49

            

    

     

    
      	
               

            	
              Section
                9.2

            	
              Termination 

            	
              51

            

    

     

    
      	
               

            	
              Section
                9.3

            	
              Certificate
                of Cancellation 

            	
              51

            

    

     

    
      	
               

            	
              Section
                9.4

            	
              Acts
                in Furtherance of Liquidation 

            	
              51

            

    

    
      
         

        
          	
                  ARTICLE
                    X

                	
                  REPRESENTATIONS
                    OF THE PARTNERS

                	
                  51

                

        
           

          
            
               

            

            
              -ii-

              
                

              

            

            
               

              
                	 	 	 	 
	 	 	
                         TABLE
                          OF CONTENTS

                      	 
	 	 	
                         (continued)

                      	 
	 	 	 

              

            

          

        

      

    

    
      
        
          	 	 	 	
                   
                    Page

                

        

      

      
        	
                 

              	
                Section
                  10.1

              	
                
                  Representations
                    Of Inland

                

              	
                51

              

      

       

    

    
      	
               

            	
              Section
                10.2

            	
              Representations
                of the LMLP Partners 

            	
              52

            

    

    
       

      
        	
                ARTICLE
                  XI

              	
                SPECIAL
                  PARTNER RIGHTS AND OBLIGATIONS

              	
                54

              

      

       

    

    
      	
               

            	
              Section
                11.1

            	
              Right
                of First Offer 

            	
              54

            

    

     

    
      	
               

            	
              Section
                11.2

            	
              Buy/Sell 

            	
              55

            

    

     

    
      	
               

            	
              Section
                11.3

            	
              Provisions
                Applicable to Right of First Offer and Buy/Sell 

            	
              56

            

    

    
      
         

        
          	
                  ARTICLE
                    XII

                	
                  GENERAL
                    PROVISIONS

                	
                  58

                

        

         

      

    

    
      	
               

            	
              Section
                12.1

            	
              Notices 

            	
              58

            

    

     

    
      	
               

            	
              Section
                12.2

            	
              Governing
                Laws 

            	
              59

            

    

     

    
      	
               

            	
              Section
                12.3

            	
              Entire
                Agreement 

            	
              59

            

    

     

    
      	
               

            	
              Section
                12.4

            	
              Waiver 

            	
              59

            

    

     

    
      	
               

            	
              Section
                12.5

            	
              Validity 

            	
              60

            

    

     

    
      	
               

            	
              Section
                12.6

            	
              Terminology;
                Captions 

            	
              60

            

    

     

    
      	
               

            	
              Section
                12.7

            	
              Remedies
                Not Exclusive 

            	
              60

            

    

     

    
      	
               

            	
              Section
                12.8

            	
              Action
                by the Partners 

            	
              60

            

    

     

    
      	
               

            	
              Section
                12.9

            	
              Further
                Assurances 

            	
              60

            

    

     

    
      
        	
                 

              	
                Section
                  12.10

              	
                Liability
                  of the Limited Partners

              	
                61

              

      

      
         

        
          	
                   

                	
                  Section
                    12.11

                	
                  Binding
                    Effect

                	
                  61

                

        

      

      
        
           

          
            	
                     

                  	
                    Section
                      12.12

                  	
                    Amendments

                  	
                    61

                  

          

          
             

            
              	
                       

                    	
                      Section
                        12.13

                    	
                      Counterparts

                    	
                      61

                    

            

            
               

              
                	
                         

                      	
                        Section
                          12.14

                      	
                        Waiver
                          of Partition

                      	
                        61

                      

              

              
                 

                
                  	
                           

                        	
                          Section
                            12.15

                        	
                          No
                            Third Party Beneficiaries

                        	
                          61

                        

                

                
                   

                  
                    	
                             

                          	
                            Section
                              12.16

                          	
                            Expenses

                          	
                            61

                          

                  

                  
                     

                    
                      	
                               

                            	
                              Section
                                12.17

                            	
                              Jurisdiction;
                                Venue

                            	
                              61

                            

                    

                  

                  
                    
                       

                      
                        	
                                 

                              	
                                Section
                                  12.18

                              	
                                Jury
                                  Waiver

                              	
                                61

                              

                      

                      
                         

                        
                          	
                                   

                                	
                                  Section
                                    12.19

                                	
                                  REIT
                                    Provisions

                                	
                                  61

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
           

        

        
          -iii-

          
            

          

        

      

    

    
      
        
          
            
               

            

        

      

    

    
      	
                TABLE
                OF CONTENTS

            
	
                (continued)

            
	 	 
	 	
               Page

            
	
              SCHEDULE
                1

            	
              NAMES
                AND CAPITAL COMMITMENT OF PARTNERS/QUALIFIED CONTRIBUTED
                ASSETS

            

    

     

    
      	
              SCHEDULE
                2

            	
              ACQUISITION
                PARAMETERS

            

    

     

    
      	
              SCHEDULE
                2.8

            	
              QUALIFIED
                SALE ASSETS

            

    

     

    
      	
              SCHEDULE
                3.5

            	
              FORM
                OF ANNUAL PLAN

            

    

     

    
      	
              SCHEDULE
                3.8

            	
              CROSS-DEFAULT
                PROVISIONS

            

    

     

    
      	
              SCHEDULE
                3.9

            	
              LMLP
                EXISTING JOINT VENTURE EXCLUSIVITY
                TERMS

            

    

     

    
      	
              SCHEDULE
                4.7

            	
              INSURANCE
                REQUIREMENTS

            

    

     

    
      	
              SCHEDULE
                5.2

            	
              PREFERRED
                EQUITY ASSETS

            

    

     

     

    
      	
               

            	
              EXHIBIT
                A

            	
              FORM
                OF INITIAL ANNUAL PLAN

            

    

     

    
      	
               

            	
              EXHIBIT
                B

            	
              FORM
                OF CONTRIBUTION AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                C

            	
              FORM
                OF MANAGEMENT AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                D

            	
              FORM
                OF PURCHASE AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                E

            	
              FORM
                OF SP SUBSIDIARY PARTNERSHIP
                AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                F

            	
              FORM
                OF SP SUBSIDIARY LIMITED LIABILITY COMPANY
                AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                G

            	
              FORM
                OF JUNIOR MORTGAGE
                AGREEMENT

            

    

     

    
      	
               

            	
              EXHIBIT
                H

            	
              FORM
                OF PLEDGE AGREEMENT

            

    

     

    
      
        -iv-

      

      
         

        
          

        

      

      
         

      

    

    

    

    LIMITED
      PARTNERSHIP AGREEMENT

    OF

    NET
      LEASE STRATEGIC ASSETS FUND L.P.

     

      THIS
      LIMITED PARTNERSHIP AGREEMENT (as it may be amended, modified,
      supplemented or restated from time to time, this “Agreement”)
      of NET LEASE STRATEGIC ASSETS FUND L.P. (the
“Partnership”), made and entered into as of August 10,
      2007 by
      and among The Lexington Master Limited Partnership, a
      Delaware limited partnership (“LMLP”), as a limited partner of
      the Partnership, LMLP GP LLC, a Delaware limited
      liability company (“LMLP GP”), as a general partner of the
      Partnership, and Inland American (Net Lease) Sub, LLC, a
      Delaware limited liability company (“Inland”), as a limited
      partner of the Partnership.

     

      LMLP
      and
      Inland are sometimes individually referred to herein as a “Limited
      Partner” and collectively referred to herein as the “Limited
      Partners”.  The Limited Partners and the General Partner are
      sometimes individually referred to herein as a “Partner” and
      collectively referred to herein as the
“Partners”.  LMLP and LMLP GP are sometimes
      individually referred to herein as a “LMLP Partner” and
      collectively referred to herein as the “LMLP
      Partners”.

     

      In
      consideration of the covenants and agreements set forth herein, the Partners
      hereby agree as follows:

     

    ARTICLE
      I
DEFINITIONS

     

    Section
      1.1  Definitions.  For
      the purposes of this Agreement, initially capitalized terms used herein shall
      have the following meanings:

     

      “Acquisition
      Activities” is defined in Section 3.6(f)
      hereof.

     

      “Acquisition
      Costs” is defined in Section 3.6(f)
      hereof.

     

      “Acquisition
      Fee” is defined in Section 3.6(g) hereof.

     

      “Acquisition
      Memorandum” shall mean a memorandum with respect to any Proposed
      Qualified Asset as provided in Section 3.6(b) hereof.

     

      “Acquisition
      Parameters” shall mean the guidelines and requirements for any
      Proposed Qualified Asset that are set forth on Schedule 2
      hereto.

     

      “Acquisition
      Period” shall mean the period commencing on the date first set
      forth above and ending the earliest of (a) the second anniversary of the date
      first set forth above and (b) a Removal Event; provided that, if the Acquisition
      Period has not ended because of a Removal Event, the Acquisition Period may,
      pursuant to Section 3.4 hereof, be extended for a period of six
      months.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

      “Act”
      is defined in Section 2.1 hereof.

     

      “Additional
      Capital Contribution” is defined in Section 5.1(b)
      hereof.

     

      “Adjusted
      Capital Account Deficit” shall mean the deficit balance, if any, in
      a Partner’s Capital Account at the end of any fiscal year, with the following
      adjustments:  (a) credit to such Capital Account any amount that
      such Partner is obligated or deemed obligated to restore under Regulations
      Section 1.704-1(b)(2)(ii)(c), as well as any additions thereto pursuant to
      the next to last sentences of Regulations Sections 1.704-2(g)(1) and
      1.704-2(i)(5), after taking into account thereunder any changes during such
      year
      in Partnership Minimum Gain and in the minimum gain attributable to any Partner
      Nonrecourse Debt; and (b) debit to such Capital Account the items described
      in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).  The
      foregoing definition of Adjusted Capital Account Deficit is intended to comply
      with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall
      be interpreted in a manner consistent with such intent.

     

      “Affiliate”
      when used with respect to any particular Person, shall mean (a) any Person
      or group of Persons acting in concert that directly or indirectly through one
      or
      more intermediaries controls or is controlled by or is under common control
      with
      such particular Person, (b) any Person that is an officer, partner,
      manager, member or trustee of, or serves in a similar capacity with respect
      to,
      such particular Person or of which such particular Person is an officer,
      partner, manager, member or trustee or with respect to which such particular
      Person serves in a similar capacity, (c) any Person that, directly or
      indirectly, is the beneficial owner of 10% or more of any class of voting
      securities of, or otherwise has an equivalent beneficial interest in, such
      particular Person or of which such particular Person is directly or indirectly
      the owner of 10% or more of any class of voting securities or in which such
      particular Person has an equivalent beneficial interest or (d) any relative
      or spouse of such particular Person.  Notwithstanding the foregoing,
      (a) neither LMLP nor LMLP GP shall be deemed to be an Affiliate of Inland and
      (b) Inland shall not be deemed to be an Affiliate of the LMLP
      Partners.  The definition of “Affiliate” as used in this Agreement
      shall not be affected by the Regulations under Code Section 752 describing
      certain “related” parties.

     

      “Agreement”
      is defined in the Preamble hereto.  This Agreement shall be the
“partnership agreement” for the Partnership within the meaning of
      Section 17-101(12) of the Act.

     

      “Annual Budget”
      shall mean the annual budget for the Partnership and each Qualified Asset for
      any fiscal year, including without limitation a reasonable description of the
      amount, source and character of each item of gross income, expense and services
      to be rendered in the form attached hereto as Exhibit A, approved by
      the Executive Committee as provided in Section 3.5
      hereof.

     

      “Annual Plan”
      is defined in Section 3.5(a) hereof.

     

      “Approved Qualified Asset”
      is defined in Section 3.6(d) hereof.

     

      “Asset Manager”
      shall mean (i) so long as LMLP GP is the General Partner, Lexington Realty
      Advisors, Inc. or another Affiliate of LMLP, or (ii) so long as LMLP GP is
      no

    
      
         

      

      
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      longer the General Partner, such other entity, including an Affiliate
        of
        Inland, that may be appointed by the Executive Committee, in each case to
        provide asset management services to the Partnership on market terms if a
        third
        party manager is hired or pursuant to the terms of the Management Agreement
        if
        an Inland Affiliate.

       

    

      “Bankruptcy”
      of the Partnership or a Partner shall be deemed to have occurred upon the
      happening of any of the following:  (a) the filing of an
      application by the Partnership or such Partner for, or a consent to, the
      appointment of a trustee, receiver or liquidator of its assets; (b) the
      filing by the Partnership or such Partner of a voluntary petition or answer
      in
      bankruptcy or the filing of a pleading in any court of record admitting in
      writing its inability to pay its debts as such debts come due or seeking
      reorganization, arrangement, composition, readjustment, liquidation, dissolution
      or similar relief under any statute, law or regulation; (c) the making by
      the Partnership or such Partner of a general assignment for the benefit of
      creditors; (d) the filing by the Partnership or such Partner of an answer
      admitting the material allegations of, or its consenting to or defaulting in
      answering, a bankruptcy or insolvency petition filed against it in any
      bankruptcy or similar proceeding; (e) the entry by any court of competent
      jurisdiction of an order for relief in any bankruptcy or insolvency proceeding
      involving the Partnership or such Partner or of an order, judgment or decree
      adjudicating the Partnership or such Partner a bankrupt or insolvent or
      appointing a trustee, receiver or liquidator of its assets; or (f) the filing
      by
      a third party against the Partnership of such Partner of an involuntary petition
      under any bankruptcy or insolvency law, which petition is not dismissed within
      sixty (60) days from the date of such filing.

     

      “Book
      Basis” shall mean, with respect to any asset of the Partnership,
      the adjusted basis of such asset for federal income tax purposes; provided,
      however, that (a) if any asset is contributed to the Partnership, the initial
      Book Basis of such asset shall equal its fair market value on the date of
      contribution (as agreed to by the Partners), and (b) if the Capital Accounts
      of
      the Partners are adjusted pursuant to Treasury Regulations Section 1.704-1(b)
      to
      reflect the fair market value of any asset of the Partnership, the Book Basis
      of
      such asset shall be adjusted to equal its respective fair market value as of
      the
      time of such adjustment (as agreed to by the Partners), in accordance with
      such
      Treasury Regulations.  The Book Basis of all assets of the Partnership
      shall be adjusted thereafter by depreciation or amortization as provided in
      Treasury Regulations Section 1.704-1(b)(2)(iv)(g) and any other adjustment
      to
      the basis of such assets other than depreciation or amortization.

     

      “Book Depreciation”
      shall mean all deductions attributable to the depreciation, amortization or
      other cost recovery, including additions, of any Qualified Asset or other asset
      (whether tangible or intangible) acquired by the Partnership that has a useful
      life in excess of one year, as such deductions are computed for federal income
      tax purposes; provided, that with respect to any Partnership asset the
      tax basis of which differs from the Book Value of such asset, Book Depreciation
      for any period shall equal (a) the sum total of all deductions taken during
      such period attributable to depreciation, amortization or other cost recovery
      deduction for federal income tax purposes with respect to such asset, multiplied
      by (b) the Book Value of such asset divided by the tax basis thereof;
providedfurther, that if the depreciation, amortization or other
      cost recovery deduction for federal income tax purposes with respect to any
      Partnership asset for any period is zero ($0.00), Book Depreciation shall be
      determined by the Tax Matters Partner

    
      
         

      

      
        3

        
          

        

      

      
         

      

       using any reasonable method selected by the Tax Matters Partner that
        is based on the Book Value of such asset.

       

    

      “Book Value”
      shall mean, with respect to any Partnership asset at any time, the adjusted
      basis of such asset for federal income tax purposes, except that (a) the
      initial Book Value of any asset contributed by a Partner to the Partnership
      shall be the Fair Market Value of such asset, and (b) the Book Value of all
      Partnership assets shall be adjusted to equal their Fair Market Values, as
      determined in good faith by the General Partner, upon the occurrence of certain
      events as described below.  In either case, the Book Value of
      Partnership assets shall thereafter be adjusted for Book Depreciation taken
      into
      account with respect to such asset.  Provided the Tax Matters Partner
      makes an election to do so as provided under Section 1.704-1(b)(2)(iv)(f)
      of the Regulations, the Book Value of Partnership assets shall be adjusted
      to
      equal their Fair Market Value, as determined in good faith by the General
      Partner, as of the following times to which the election
      relates:  (a) the admission of a new Partner to the Partnership
      or acquisition by an existing Partner of an additional interest in the
      Partnership, provided that the consideration contributed to the Partnership
      upon
      such admission or acquisition is more than a de minimis amount of money or
      assets; (b) the distribution by the Partnership to a Partner of more than a
      de minimis amount of money or other assets; and (c) the termination of the
      Partnership for federal income tax purposes pursuant to Code
      Section 708(b)(1)(B).

     

      The
      Book
      Value of all Partnership assets shall also be increased (or decreased) to the
      extent that adjustments to the adjusted basis of such assets pursuant to Code
      Section 734(b) or Code Section 743(b) have been taken into account for
      purposes of determining Capital Accounts in accordance with Regulation
      Section 1.704-1(b)(2)(iv)(m), unless such adjustments have already been
      accounted for pursuant to the preceding paragraph.  If the Book Value
      of an asset has been determined or adjusted pursuant hereto, such value shall
      thereafter be the basis for, and be adjusted by, the depreciation taken into
      account with respect to, such asset for purposes of computing Profits and
      Losses.  Moreover, notwithstanding the foregoing, the Book Value of
      any Partnership asset distributed to any Partner shall be the gross Fair Market
      Value of such asset on the date of distribution.

     

      “Business Day”
      shall mean any day other than a Saturday, Sunday or any day on which national
      banks in New York, New York are not open for business.

     

      “Buy/Sell
      Asset” is defined in Section 11.2(a)
      hereof.

     

      “Buy/Sell
      Notice” is defined in Section 11.2(a)
      hereof.

     

      “Buy/Sell
      Offer Price” is defined in Section 11.2(a)
      hereof.

     

      “Buy/Sell
      Offering Partner” is defined in Section 11.2(a)
      hereof.

     

      “Buy/Sell
      Responding Interest Price” is defined in
Section 11.2(c) hereof.

     

      “Buy/Sell
      Responding Partner” is defined in Section 11.2(a)
      hereof.

     

      “Buy/Sell
      Response Notice” is defined in Section 11.2(a)
      hereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

      “Capital Account”
      shall mean, with respect to any Partner, the separate “book” account which the
      Partnership shall establish and maintain for such Partner as provided in
Section 6.1 hereof and in accordance with Section 704(b) of the
      Code and Regulations Section 1.704-1(b)(2)(iv) and such other provisions of
      Section 1.704-1(b) of the Regulations as must be complied with in order for
      the Capital Accounts to be determined in accordance with the provisions of
      said
      Regulations.  In furtherance of the foregoing, the Capital Accounts
      shall be maintained in compliance with Section 1.704-1(b)(2)(iv) of the
      Regulations, and the provisions hereof shall be interpreted and applied in
      a
      manner consistent therewith.

     

      “Capital Call”
      is defined in Section 5.1(b) hereof.

     

      “Capital
      Commitment” shall mean, with respect to each Partner, the amount
      set forth opposite its name on Schedule 1 hereto, as such Schedule
      may be amended or modified from time to time upon the Partners’ unanimous
      consent.  Any payment of the Acquisition Fees by Inland shall decrease
      Inland’s Capital Commitment, and, in such event, LMLP’s Capital Commitment shall
      be decreased by 17.65% of the amount Inland’s Capital Commitment is
      decreased. 

     

      “Capital
      Contribution” shall mean, (a) at formation of the Partnership, the
      Initial Capital Contributions set forth on Schedule 1 hereto, and (b) at
      any particular time thereafter and with respect to any Partner, an amount equal
      to the sum of (a) the total amount of cash and (b) the Fair Market
      Value of any asset (determined as of the date such asset is contributed by
      such
      Partner and net of any liabilities secured by such asset that the Partnership
      is
      considered to assume or take subject to under Section 752 of the Code),
      that has in each case been contributed to the Partnership by such Partner
      pursuant to Section 5.1 hereof.

     

      “Change
      of Control” shall be deemed to occur upon (a) any Person (and its
      Affiliates) becoming the beneficial owner, directly or indirectly, of more
      than
      fifty percent (50%) of the outstanding partnership interests in LMLP (other
      than
      an LMLP Affiliated Party) and (b) the resignation or removal (including death
      or
      permanent disability) of at least two of the following individuals from the
      management of LMLP: Michael L. Ashner, E. Robert Roskind and T. Wilson
      Eglin.

     

      “Closing”
      is defined in Section 11.3(c) hereof.

     

      “Closing
      Date” is defined in Section 11.3(c)
      hereof.

     

      “Code”
      shall mean the Internal Revenue Code of 1986, as amended, or corresponding
      provisions of future laws.

     

      “Contributed
      Asset” is defined in the Contribution Agreement.

     

      “Contribution
      Agreement” shall mean the agreement pursuant to which LMLP
      contributes the Qualified Contribution Assets to the Partnership pursuant to
      Section 5.1 hereof and shall be in the form attached as Exhibit B
      to this Agreement.

     

      “CPI”
      shall mean the Revised Consumer Price Index for All Urban Consumers published
      by
      the Bureau of Labor Statistics of the United States Department of Labor,
      U.S.  City 

    
      
         

      

      
        5

        
          

        

      

      
         

      

      Average, All Items, based on 2002 as 100.  If the CPI hereafter
        ceases to use the 2002 Base as 100, then the CPI with the new base shall
        be
        used.  If the Bureau of Labor Statistics ceases to publish the CPI,
        then the successor or most nearly comparable index shall be used.  In
        the event that the U.S.  Department of Labor, Bureau of Labor
        Statistics, changes the publication frequency of the CPI so that it is not
        available when required under the Agreement, then the CPI for the closest
        preceding month for which a CPI is available shall be used in place of the
        CPI
        no longer available.

       

    

      “Default
      Sale Period” is defined in Section 11.3(d)
      hereof.

     

      “Defaulting Partner”
      is defined in Section 11.3(b) hereof.

     

      “Deposit”
      is defined in Section 5.1(d) hereof.

     

      “Distributable Cash”
      shall mean the amounts distributed pursuant to Sections 7.1(a)(i) and
(ii) hereof.

     

      “Economic Interest”
      shall mean, with respect to any Percentage Interest, (a) all income,
      profits, cash flow, proceeds of sales and/or refinancing of the Qualified
      Assets, fees or payments of whatever nature and all distributions to which
      any
      Partner would be entitled, now or at any time hereafter, of whatsoever
      description or character; (b) all of any Partner’s present and future
      rights to and in its Capital Account, whether by way of liquidating
      distributions or otherwise, and all of such Partner’s right to receive or share
      in any surplus of the Partnership in the event of the dissolution of the
      Partnership; and (c) all damages, awards, money and considerations of any
      kind or character to which any Partner would be entitled, now or at any time
      hereafter, arising out of or derived from any proceeding by or against such
      Partner in any federal or state court, under any bankruptcy or insolvency law
      or
      under any law relating to assignments for the benefit of creditors,
      compositions, extensions or adjustments of indebtedness, or to any other relief
      of debtors, or otherwise in connection with its interest in the
      Partnership.

     

      “Economic Risk of Loss”
      shall have the meaning specified in Regulations
      Section 1.752-2.

     

      “Enhanced
      Preferred Equity Return” shall mean the Preferred Equity Return
      plus 400 basis points.

     

      “Environmental Assessment”
      shall mean with respect to any Proposed Qualified Asset, a phase one
      environmental site assessment performed by a qualified environmental consultant
      selected by the General Partner in accordance with the then current ASTM
      Standard Practice for Environmental Site Assessments, E1527 and, if required
      by
      the General Partner, any additional Phase II sampling, investigation, monitoring
      or other activities performed by a qualified environmental
      consultant.

     

      “Environmental Law”
      shall mean every federal, state, county or other governmental law, statute,
      ordinance, rule, regulation, requirement, order (including any consent order),
      or other binding obligation, injunction, writ or decision relating to or
      addressing the environment or hazardous materials, including, but not limited
      to, those federal statutes 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

      commonly referred to as the Clean Air Act, Clean Water Act, Resource
        Conservation Recovery Act, Toxic Substances Control Act, Comprehensive
        Environmental Response, Compensation and Liability Act and the Endangered
        Species Act as well as all regulations promulgated thereunder and all state
        laws
        and regulations equivalent thereto, as each such statute, regulation or state
        law or regulation equivalent may be amended from time to time.

       

    

      “Equity
      Capital” shall mean the book equity of the Partnership, computed in
      accordance with GAAP and based on the monthly average over the fiscal year,
      adjusted to exclude the effect of any depreciation, unrealized gains, unrealized
      losses and other non-cash items.  For realized gains or losses, the
      amount of gain or loss shall be based on unadjusted book value.

     

      “Event
      of Default” shall mean with respect to or by any Partner (a) the
      declaration of Bankruptcy, (b) a failure to timely perform its obligations
      under
      this Agreement (or with respect to the LMLP Partners, the failure by an LMLP
      Affiliated Party to timely perform its obligations under the Contribution
      Agreement, the Purchase Agreement or the Management Agreement), including the
      failure of the General Partner to timely enforce any material term of the
      Management Agreement, or other material breach of this Agreement (or with
      respect to the LMLP Partners, any other material breach by an LMLP Affiliated
      Party of a material provision of the Contribution Agreement, the Purchase
      Agreement or the Management Agreement) and the continuation of such failure
      or
      other material breach beyond the applicable grace, notice or cure periods,
      if
      any, including, without limitation, the obligation to make any Additional
      Capital Contributions, (c) any attempted assignment, mortgage, pledge, transfer
      or other disposition, whether voluntary or involuntary, of its Percentage
      Interests (in whole or in part) not expressly permitted in this Agreement,
      (d)
      the dissolution, withdrawal or incapacity of such Partner, which prohibits
      such
      Partner’s ability to continue as a Partner of the Partnership, (e) the
      intentional misrepresentation by such Partner or any of its Affiliates of a
      material fact involving the Partnership to another Partner or an Affiliate
      thereof or to the Partnership, (f) the entry of a final judgment or decree
      of a court or governmental agency having proper jurisdiction, declaring such
      Partner guilty of a felony involving moral turpitude, fraud or wrongdoing in
      connection with any business activity, (g) the misapplication by such Partner
      or
      any of its Affiliates of any assets of the Partnership, or (h) fraud or material
      and willful misconduct by such Partner or any of its Affiliates involving the
      Partnership or in the performance of its obligations under this Agreement or
      the
      Management Agreement, Contribution Agreement or Purchase
      Agreement.  The matters set forth in clauses (b), (c), (e), (f), (g)
      and (h) above shall not constitute an Event of Default if such matter does
      not
      pertain to wrongdoing involving a criminal conviction and such matter is cured
      (including the payment of any damages) within thirty (30) days following receipt
      of notice of such failure from any other Partner, unless such matter by its
      very
      nature is incapable of being cured within such thirty (30) day period and the
      defaulting Partner has commenced and is diligently pursuing a cure, in which
      event such defaulting Partner shall have a commercially reasonable period not
      to
      exceed ninety (90) days to effect such cure; provided that in the case of
      matters set forth in (f), (g) and (h), the cure shall include the removal of
      the
      employees or agents involved in such event from the active management of the
      Partnership.  So long as LMLP GP is the General Partner, a breach of
Section 3.8(a) or Section 12.19 shall be considered an Event of
      Default by LMLP, unless such breach (i) has been cured within ninety (90) days
      of such breach and a similar breach of Section 3.8(a) has not occurred in the
      previous twelve (12) months in the case of Section 3.8(a), (ii) was
      directly and proximately caused by an action approved by a 

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

      Supermajority Vote of the Executive Committee or consented to by Inland
        and
        Inland had knowledge of the possibility of such breach.

       

    

      “Executive
      Committee” shall mean a committee of five (5) members, consisting
      of three (3) members appointed by LMLP and two (2) members appointed by
      Inland.  The initial members of the Executive Committee appointed by
      the LMLP Partners shall be Michael L. Ashner, T. Wilson Eglin and Brendan P.
      Mullinix.  The initial members of the Executive Committee appointed by
      Inland shall be Lori Foust and Thomas McGuinness.

     

      “Exclusivity
      Right” is defined in Section 3.9(a)(ii)
      hereof.

     

      “Existing
      Indebtedness” shall mean the existing indebtedness encumbering the
      Qualified Contribution Assets and the Qualified Sale Assets, the principal
      balances as of August 1, 2007 are respectively set forth on Schedules 1
      and 2.8 hereto.

     

      “Extraordinary Call”
      is defined in Section 5.1(c) hereof.

     

      “Extraordinary
      Call Cap” is defined in Section 5.1(c) hereof.

     

      “Extraordinary Capital Contribution”
      is defined in Section 5.1(c) hereof.

     

      “Extraordinary Funding”
      is defined in Section 5.1(c) hereof.

     

      “Fair Market Value”
      shall mean an amount (in cash) that a bona fide, willing buyer under no
      compulsion to buy and a bona fide, willing and unrelated seller under no
      compulsion to sell would pay and accept, respectively, for the purchase and
      sale
      of a Qualified Asset, taking into account any liens, restrictions and agreements
      then in effect and binding upon the Qualified Asset or any successor owner
      thereof and any options, rights of first refusal or offer or other rights or
      options that either burden the Qualified Asset or run to the benefit of the
      owner of the Qualified Asset; provided, however, that in determining the
      Fair Market Value of any Qualified Asset, none of the options, rights of first
      refusal or offer or other rights of the Partners hereunder shall be taken into
      consideration.

     

      “General
      Partner” shall mean the Person appointed general partner of the
      Partnership pursuant to the terms of this Agreement. The initial General Partner
      shall be LMLP GP.

     

      “Gross
      Revenues” is defined in Section 3.10(a)
      hereof.

     

      “IMBC”
      is defined in Section 3.8(f) hereof.

     

      “Indemnified
      Party” is defined in Section 3.12(a)
      hereof.

     

      “Initial
      Capital Contribution” shall mean, (a) with respect to Inland, the
      amount of cash and (b) with respect to each LMLP Partner, the amount of cash
      and/or the amount of the Contribution Value (as defined in the Contribution
      Agreement), in each case as pursuant to Section 5.1 hereof and made prior
      to March 1, 2008 and as set forth on Schedule 1 hereto, which shall be
      amended and restated to reflect each such contribution.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

      “Initiating
      Partner” is defined in Section 11.3(f)
      hereof.

     

      “Inland”
      is defined in the Preamble hereto.

     

      “Inland
      Priority Return” is defined in Section 7.1(a)(i)(B)
      hereof.

     

      “Letter
      Agreement” shall mean that certain Letter Agreement, dated as of
      the date first set forth above, among Inland, LMLP and LMLP GP.

     

      “Limited
      Partner” is defined in the Preamble hereto.

     

      “Liquidating Events”
      is defined in Section 9.1 hereof.

     

      “Liquidation”
      shall mean (a) when used with respect to the Partnership, the date upon
      which the Partnership ceases to be a going concern, and (b) when used with
      respect to any Partner, the earlier of (i) the date upon which there is a
      Liquidation of the Partner and (ii) the date upon which such Partner’s
      entire interest in the Partnership is terminated other than by transfer,
      assignment or other disposition to a Person other than the
      Partnership.

     

      “Liquidator”
      shall mean any Person designated as such by a Supermajority Vote of the
      Executive Committee.

     

      “Losses”
      and“Profits” are defined in
Section 6.2(b) hereof.

     

      “LMLP”
      is defined in the Preamble hereto.

     

      “LMLP
      Affiliated Party” shall mean any LMLP Partner, the Asset Manager
      and/or any of their respective Affiliates (but shall in no event include the
      Partnership, any SP Subsidiary, Inland or any of its Affiliates).

     

      “LMLP
      GP” is defined in the Preamble hereto.

     

      “LMLP
      Partner” is defined in the Preamble hereto.

     

      “LMLP
      Priority Return” is defined in Section 7.1(a)(i)(C)
      hereof.

     

      “LMLP
      Sale Affiliates” shall mean the LMLP Affiliates set forth on
Schedule 2.8 hereto that are selling the Qualified Sale Assets to
      the
      Partnership pursuant to Section 2.8 hereof.

     

      “LXP”
      shall mean Lexington Realty Trust, a Maryland real estate investment trust,
      or
      its successors or assigns.

     

      “Major Decision”
      is defined in Section 3.4 hereof.

     

      “Majority
      Vote” shall mean the written consent of three (3) of the five (5)
      members of the Executive Committee.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

      “Management Agreement”
      shall mean the agreement between the Asset Manager and the Partnership which
      shall be substantially in the form attached hereto as Exhibit C, and
      which shall provide that the Management Agreement may be terminated by the
      Partnership at any time and the terms of which shall be monitored and enforced
      by the General Partner.

     

      “Management
      Fees” shall mean the Property Management Fee and
      the Partnership Management Fee.

     

      “Material Modification”
      shall mean a modification relating to the treatment of Capital Accounts,
      distributions and/or allocations hereunder which, when considered on a
      cumulative basis with the effect of all other such modifications previously
      made, is likely to adversely affect the amount ultimately distributable or
      paid
      to any Partner hereunder as determined by the independent accountants of the
      Partnership.

     

      “Net Cash Flow from Operations”
      shall mean the gross revenues from Partnership operations (excluding sales
      or
      other dispositions or refinancings of Qualified Assets) less, without
      duplication, the sum of any portion thereof used to (a) pay Operating Expenses,
      general and administrative costs and overhead of the Partnership, capital
      improvements, replacements or debt payments, any Management Fees payable to
      the
      General Partner or Asset Manager pursuant to Section 3.10 hereof,
      any credits reserved pursuant to Section 3.10 hereof, indemnities and
      other extraordinary payments made pursuant to this Agreement or to (b) establish
      reasonable reserves for Operating Expenses, capital improvements, replacements,
      debt payments and contingencies as provided in the Annual Plan, as such reserves
      are calculated, established and maintained by the General Partner pursuant
      to
Section 3.4.  “Net Cash Flow from Operations” shall not be
      reduced by real estate depreciation or by cost amortization, cost recovery
      deductions or similar allowances, but shall be increased by any reduction of
      reserves previously described in an Annual Plan.

     

      “Net
      Cash from Sales or Refinancings” shall mean the gross cash proceeds
      from the sale or other disposition or refinancing or repayment or exercise
      of
      Qualified Assets less (a) any closing, transaction and other costs incurred
      by the Partnership in connection with such sale or other disposition or
      refinancing or repayment or exercise, as the case may be; (b) the amount
      required to retire any debt outstanding against such Qualified Assets; and
      (c) any amounts required to fund any related reserves up to the levels
      required.  Net Cash from Sales or Refinancings shall be increased by
      releases of reserves previously funded from Net Cash from Sales or
      Refinancings.  “Net Cash from Sales or Refinancings” shall include all
      principal and interest payments made with respect to any note or other
      obligation received by the Partnership in connection with the sale or other
      disposition of any Qualified Asset.

     

      “9%
      Cash on Cash Return” shall mean, with respect to either Inland or
      LMLP a return sufficient to achieve a 9% cash on cash yield calculated by
      dividing (a) Distributable Cash distributed to such Partner by (b) the Capital
      Contributions (including credited amounts under Section 3.10 hereof)
      made, plus, (i) solely with respect to Inland, the Acquisition Fees (if any)
      paid by Inland, or (ii) solely with respect to LMLP, 17.65% of the amount the
      Acquisition Fees (if any) paid by Inland.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

      “Nonrecourse Liability”
      shall mean any Partnership liability (or portion thereof) the Economic Risk
      of
      Loss of which is not borne by any Partner or any party related to any Partner,
      as such related party is described in the applicable Regulations under Code
      Section 752.

     

      “Non-Parameter
      Asset” is defined in Section 3.6(c) hereof.

     

      “Offer Price”
      shall mean the ROFO Offer Price or the Buy/Sell Offer Price, as
      applicable.

     

      “Offered Agreement”
      is defined in Section 11.2(a) hereof.

     

      “O.P.
      Unit” shall mean a partnership interest in a partnership in which
      LXP or its Affiliate is a partner.

     

      “Operating Expenses”
      shall mean (a) all reasonable and customary costs and expenses of Third
      Parties retained in connection with the ownership, leasing, operation, repair
      and maintenance of the Qualified Assets and (b) real estate taxes,
      insurance premiums, utility charges, rent collection and lease enforcement
      costs, brokerage commissions to the extent applicable to the period in question
      (but excluding any Acquisition Fees payable to the Asset Manager under
Section 3.6(g) hereof), maintenance expenses, costs of repairs and
      replacements (which, under generally accepted accounting principles consistently
      applied, may be expensed during the period when made) and management fees
      (including any Management Fees payable to the Asset Manager pursuant to
Section 3.10 hereof) in connection with the ownership, leasing,
      operation, repair and maintenance of the Qualified Assets.  Operating
      Expenses shall not include general and administrative costs and overhead of
      the
      Partnership and debt payments.

     

      “Other
      Partner(s)” in respect of either or both of the LMLP Partners shall
      mean Inland and in respect of Inland shall mean either or both of the LMLP
      Partners.

     

      “Partially
      Adjusted Capital Account” shall mean, with respect to any Partner for
      any taxable year of the Partnership, the Capital Account balance of such Partner
      at the beginning of such year, adjusted for all contributions and distributions
      during such year and all special allocations pursuant to Section 6.3
      hereof with respect to such year but before giving effect to any allocations
      pursuant to Section 6.2 hereof with respect to such year.

     

      “Partner”
      is defined in the Preamble hereto.

     

      “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”
      is defined in Section 6.3(d) hereof.

     

      “Partnership”
      is defined in the Preamble hereto.

     

      “Partnership
      Management Fee” is defined in Section 3.10(b)
      hereof.

     

    
      
         

      

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

     

      “Percentage
      Interest” shall mean the entire undivided ownership interest in the
      Partnership of any Partner at any particular time, (a) expressed as a
      percentage rounded to the nearest one one-hundredth (0.01%), (b) determined
      at such time by dividing the total Capital Contributions made by such Partner
      by
      the total Capital Contributions made to the Partnership by all Partners and
      (z) as may be adjusted from time to time in accordance with the terms
      hereof.  The Percentage Interest of each Partner as of the date first
      set forth above shall be as described on Schedule 1
      hereto.

     

      “Permitted Expenses”
      shall mean, for each annual period covered by an Annual Plan, Operating
      Expenses, capital improvements, replacements and debt payments as set forth
      therein plus, with respect to each budget line item in the Annual Budget portion
      of such Annual Plan, the greater of (a) five percent (5%) of each such
      budget line item or (b) Twenty Thousand Dollars ($20,000.00);
provided, however, that the aggregate Permitted Expenses (other than the
      Management Fees payable to the Asset Manager pursuant to Section 3.10
      hereof), when added to all other obligations incurred or reserve amounts accrued
      in excess of the applicable budget line items in such Annual Budget portion
      of
      the Annual Plan, shall not exceed (i) One Hundred Thousand Dollars
      ($100,000) in any fiscal year for a particular Qualified Asset or (ii) an
      average (taking into account all Qualified Assets then owned by the Partnership)
      of Fifty Thousand Dollars ($50,000) per Qualified Asset.  Permitted
      Expenses shall also mean (a) all reasonable and customary costs and
      expenses of Third Parties retained in connection with the Acquisition Activities
      as provided in Section 3.6(f) hereof, (b) any reasonable costs
      or expenses incurred in implementing a Major Decision approved as provided
      in
Section 3.4 hereof and not otherwise already included in an Annual
      Plan, and (c) costs and expenses incurred by and on behalf of the
      Partnership in connection with the formation of the Partnership, including
      legal
      fees and costs and expenses associated with assumption or refinancing the
      Existing Indebtedness, but excluding fees and expenses set forth in Section
      12.16 hereof.

     

      “Person”
      shall mean any individual, trust (including a business trust), unincorporated
      association, corporation, limited liability company, joint stock company,
      general partnership, limited partnership, joint venture, governmental authority
      or other entity.

     

      “Physical
      Inspection Report” shall mean a report prepared by a qualified
      independent third party engineer, architect or other real estate inspector
      selected by the General Partner concerning the physical condition of any
      Proposed Qualified Asset.

     

      “Plan Amendment”
      is defined in Section 3.5(c).

     

      “Preferred
      Equity” shall mean the Preferred Equity Capital Contribution by
      LMLP pursuant to Section 5.2 hereof and allocated among the Preferred
      Equity Assets as reasonably determined by LMLP.

     

    .  “Preferred
      Equity Asset” shall mean a Qualified Sale Asset described on
Schedule 5.2 hereof and shall not include any Qualified Refi
      Asset.

     

    
      
         

      

      
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      “Preferred
      Equity Capital Contribution” shall mean the cash contributed to the
      Partnership by LMLP pursuant to Section 5.2 hereto.

     

      “Preferred
      Equity Return” shall mean a cumulative distribution on the
      outstanding Preferred Equity paid quarterly in accordance with Section
      7.1 hereof at a rate per annum equal to the weighted average interest rate
      on the mortgage financing to be secured by the Qualified Refi Assets or the
      Enhanced Preferred Equity Return, as applicable.

     

      “Priority
      Loan” is defined in Section 5.1(a) hereof.

     

      “Priority
      Return” shall mean the Inland Priority Return and/or the LMLP
      Priority Return, as applicable.

     

      “Profits”
      and “Losses” are defined in Section 6.2(b)
      hereof.

     

      “Property
      Management Fee” is defined in Section 3.10(a)
      hereof.

     

      “Proposed Plan”
      is defined in Section 3.5(a) hereof.

     

      “Proposed Qualified Asset”
      is defined in Section 3.6(a) hereof.

     

      “Purchase
      Agreement” shall mean the agreement pursuant to which the
      Partnership purchases the Qualified Sale Assets from the LMLP Sale Affiliates
      pursuant to Section 2.8 hereof and each such Purchase Agreement shall be
      in the form attached as Exhibit D to this Agreement.

     

      “Purchasing
      Partner” shall mean the purchasing Partner under Section
      11.1 or Section 11.2 hereof, as the case may be.

     

      “Purchase
      Price” shall mean (a) with respect to each Qualified Contribution
      Asset, the Contribution Value which will be set forth on Schedule 1 to the
      Contribution Agreement upon acquisition of the Qualified Contribution Asset,
      (b)
      with respect to each Qualified Sale Asset, the Sales Price which will be set
      forth on Schedule 1 to the Purchase Agreement upon acquisition of the Qualified
      Sale Asset, and (c) with respect to each other Qualified Asset, the gross
      purchase cost of the Qualified Asset.

     

      “Qualified
      Contribution Assets” shall mean the assets set forth on Schedule
      1, each of which shall be a Qualified Asset upon contribution to the
      Partnership pursuant to a Contribution Agreement and Section 5.1(a)
      hereof.

     

      “Qualified
      Asset” or “Qualified Assets” shall mean the
      direct or indirect interest of the Partnership in (a) each Approved Qualified
      Asset and Non-Parameter Asset acquired by the Partnership pursuant to Section
      3.6 hereof, and (b) the Qualified Contribution Assets and the Qualified Sale
      Assets.

     

      “Qualified
      Assumed Assets” shall mean the Qualified Contribution Assets and
      the Qualified Sale Assets set forth on Schedule 3.8 hereto under the heading
      “Qualified Assumed Assets.”

     

    
      
         

      

      
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      “Qualified
      Refi Assets” shall mean the Qualified Contribution Assets and the
      Qualified Sale Assets set forth on Schedule 3.8 hereto under the heading
“Qualified Refi Assets.”

     

      “Qualified
      Sale Assets” shall mean the interests of the LMLP Sale Affiliates
      in the assets set forth on Schedule 2.8, each of which shall be a
      Qualified Asset upon acquisition by the Partnership pursuant to a Purchase
      Agreement.

     

      “Recoverable
      Amounts” is defined in Section 3.10(a)
      hereof.

     

      “Regulations”
      shall mean the income tax regulations promulgated under the Code, whether
      temporary, proposed or finalized, as such regulations may be amended from time
      to time (including corresponding provisions of future regulations).

     

      “Regulatory Allocations”
      is defined in Section 6.3(f) hereof.

     

      “REIT”
      shall mean “real estate investment trust” within the meaning of Sections 856-860
      of the Code.

     

      “Removal
      Event” shall mean (a) an Event of Default caused by an LMLP Partner
      or an LMLP Affiliated Party or (b) a Change of Control.

     

      “Required
      Third Party Price” is defined in Section 11.1(a)
      hereof.

     

      “Responding
      Partner” shall mean the ROFO Responding Partner or the Buy/Sell
      Responding Partner, as applicable.

     

      “Rights
      Trigger Date” shall mean the earliest of the following: (a) the
      fourth anniversary of the date first set forth above; (b) an Event of Default;
      (c) a Change of Control; (d) termination of the Management Agreement by the
      Partnership; and (e) a Removal Event.

     

      “ROFO
      Notice” is defined in Section 11.1(a)
      hereof.

     

      “ROFO
      Offer Price” is defined in Section 11.1(a)
      hereof.

     

      “ROFO
      Offering Partner” is defined in Section 11.1(a)
      hereof.

     

      “ROFO
      Responding Partner” is defined in Section 11.1(a)
      hereof.

     

      “ROFO
      Response Notice” is defined in Section 11.1(a)
      hereof.

     

      “ROFO
      Terms” is defined in Section 11.1(a) hereof.

     

      “Section 704(c)
      Property” shall mean (a) each item of property to which
      Section 704(c) of the Code or Section 1.704-3(a)(3) of the Regulations
      applies that is contributed to the Partnership, and (b) any property owned
      by the Partnership which is governed by the principles of Section 704(c) of
      the Code, as contemplated by Section 1.704-1(b)(4)(i) and other analogous
      provisions of the Regulations.

     

    
      
         

      

      
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      “Selling
      Partner” shall mean the selling Partner under Section 11.1
      or Section 11.2 hereof, as the case may be.

     

      “SP
      Subsidiary” shall mean an entity selected by the General Partner
      which shall be wholly-owned (directly or indirectly) by the Partnership, the
      purpose of which is limited to acquiring, financing, holding for investment,
      preserving, managing, operating, improving, leasing, selling, exchanging,
      transferring and otherwise using or disposing of a Qualified Asset or Qualified
      Assets.

     

      “SP
      Subsidiary Limited Liability Company Agreement” shall mean the
      limited liability company agreement of an SP Subsidiary that is the general
      partner of another SP Subsidiary, which, except as provided in Section
      3.4 hereof, shall be substantially in the form attached hereto as Exhibit
      E.

     

      “SP
      Subsidiary Partnership Agreement” shall mean the limited
      partnership agreement of an SP Subsidiary that is the owner of a Qualified
      Asset, which, except as provided in Section 3.4 hereof, shall be
      substantially in the form attached hereto as Exhibit F.

     

      “SP
      Subsidiary Agreements” shall mean the SP Subsidiary Limited
      Liability Company Agreements and the SP Subsidiary Partnership
      Agreements.

     

    Supermajority
      Vote” shall mean the written consent of four (4) of the five (5)
      members of the Executive Committee.

     

      “Target
      Account” shall mean, with respect to any Partner for any taxable year
      of the Partnership, the excess of (a) an amount (which may be either a positive
      balance or a negative balance) equal to the hypothetical distribution (or
      contribution) such Partner would receive (or contribute) if all assets of the
      Partnership, including cash, were sold for cash equal to their Book Basis
      (taking into account any adjustments to Book Basis for such year), all
      liabilities (including prepayment penalties, yield maintenance fees and similar
      costs) of the Partnership were then satisfied according to their terms (except
      that if the nonrecourse liabilities secured by an asset exceed the Book Basis
      of
      such asset, such calculation shall be made assuming that the asset were
      transferred to the lender in satisfaction of the debt) and all remaining
      proceeds from such sale were distributed pursuant to Section 9.2 over (b)
      such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt
      Minimum Gain immediately prior to such sale.

     

      “Tax
      Depreciation” shall mean with respect to any property owned by the
      Partnership depreciation, accelerated cost recovery, or modified cost recovery,
      and any other amortization or deduction allowed or allowable for federal, state
      or local income tax purposes.

     

    .  “Tax Matters Partner”
      is defined in Section 6.5 hereof.

     

      “Third
      Parties” shall mean consultants, engineers, environmental
      consultants, accountants, attorneys, contractors and subcontractors, brokers
      or
      managers, but excluding any LMLP Affiliated Party.

     

      “Third
      Party Sale Period” is defined in Section 11.1(b)
      hereof.

     

    
      
         

      

      
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    ARTICLE
      II
FORMATION,
      DURATION AND PURPOSES; PURCHASE OF INITIAL 
PROPERTIES

     

    Section
      2.1  Formation.  Pursuant
      to the Delaware Revised Uniform Limited Partnership Act, codified in the
      Delaware Code Annotated, Title 6, Sections 17-101 to 17-1111, as the same may
      be
      amended from time to time (the “Act”), the Partners agree to
      form and hereby form the Partnership by entering into this
      Agreement.  The Partners hereby acknowledge that a certificate of
      limited partnership has been executed and filed in the office of the Delaware
      Secretary of State on the date hereof.  The execution and filing of
      such certificate of limited partnership with the Delaware Secretary of State
      is
      hereby authorized, ratified and approved by the Partners.  The rights,
      liabilities and obligations of any Partner with respect to the Partnership
      shall
      be determined in accordance with the Act and this Agreement.  To the
      extent anything contained in this Agreement modifies, supplements or otherwise
      affects any such right, liability, or obligation arising under the Act, this
      Agreement shall supercede the Act to the extent not restricted
      thereby.

     

    Section
      2.2  Name;
      Registered Agent and Registered Office.  The name of the
      Partnership and the name under which the business of the Partnership shall
      be
      conducted shall be “Net Lease Strategic Assets Fund
      L.P.”  The registered agent of the Partnership shall be
      Corporation Service Company, and the registered office of the Partnership shall
      be at Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
      Delaware 19808.  The General Partner may select another such
      registered agent or registered office from time to time.

     

    Section
      2.3  Principal
      Office.  The principal place of business and office of
      the Partnership shall be located at c/o The Lexington Master Limited
      Partnership, One Penn Plaza, Suite 4015, New York, New York 10119-4015, or
      at
      such other place as the General Partner may determine from time to
      time.  The business of the Partnership may also be conducted at such
      additional place or places as the General Partner may determine.

     

    Section
      2.4  Purposes
      and Business.  The business of the Partnership is to,
      directly or indirectly, acquire, finance, refinance, hold for investment,
      preserve, manage, operate, improve, lease, sell, exchange, transfer and
      otherwise use or dispose of the Qualified Assets as may be, directly or
      indirectly, acquired by the Partnership from time to time pursuant to the terms
      hereof, which Qualified Assets may be located anywhere in the United
      States.  In connection therewith and without limiting the foregoing,
      the Partnership shall have the power to dispose of the Qualified Assets in
      accordance with the terms of this Agreement and to engage in any and all
      activities related or incidental thereto, all for the benefit of the
      Partners.  

     

    Section
      2.5  Term.  The
      term of the Partnership shall commence on the date of this Agreement and shall
      continue in full force and effect until terminated pursuant to the terms
      hereof.  No Partner may withdraw from the Partnership without the
      prior consent of the General Partner, other than as expressly provided in this
      Agreement.

     

    Section
      2.6  Other
      Qualifications.  The Partnership shall file or record
      such documents and take such other actions under the laws of any jurisdiction
      in
      which 

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

      the Partnership does business as are necessary or desirable to permit
        the
        Partnership to do business in any such jurisdiction and to promote the
        limitation of liability for the Partners in any such jurisdiction.

       

    

    Section
      2.7  Limitation
      on the Rights of Partners.  Except as otherwise
      specifically provided in this Agreement, (a) no Partner shall have the
      right to withdraw or retire from, or reduce its contribution to the capital
      of,
      the Partnership; (b) no Partner shall have the right to demand or receive
      assets other than cash in return for its Capital Contribution; and (c) no
      Partner shall have priority over any other Partner either as to the return
      of
      its Capital Contribution or as to profits or distributions.

     

    Section
      2.8  Purchase
      of Qualified Sale Assets.  Contemporaneously with the
      execution of this Agreement, the LMLP Sale Affiliates will agree to sell, and
      the Partnership will agree to purchase the Qualified Sale Assets pursuant to
      the
      Purchase Agreements described on Schedule 2.8 hereto at the purchase
      prices set forth on Schedule 2.8 hereto.  In the event the
      Qualified Sale Asset located at 3600 Southgate Drive, Danville, Illinois is
      acquired by the Partnership pursuant to a Purchase Agreement, LMLP shall be
      solely responsible for and shall pay directly the costs incurred to complete
      the
      currently contemplated 55,000 square foot expansion at such Qualified Asset
      as
      shown on Schedule 2.8; provided, LMLP shall only be responsible for such
      costs up to $1.8 million and shall not be responsible for any change orders
      to
      the current plans and specifications for such expansion.

     

    Section
      2.9  Remuneration
      To Partners.  No Partner is entitled to remuneration for
      acting on behalf of the Partnership.  Except as otherwise authorized
      in this Agreement, including but not limited to Sections 3.6 and
3.10, no Partner is entitled to remuneration for acting in the
      Partnership business.

     

    ARTICLE
      III

    MANAGEMENT
      RIGHTS, DUTIES, AND POWERS

    OF
      THE GENERAL PARTNER; TRANSACTIONS INVOLVING 
PARTNERS

     

    Section
      3.1  Management.

     

    (a)  Management
      by the General Partner.  LMLP GP shall be the General Partner
      until (x) a Removal Event, or (y) LMLP GP resigns as the General
      Partner.  The General Partner shall manage the investments, business
      and day-to-day affairs of the Partnership and shall be responsible for
      acquisitions and dispositions of Qualified Assets, subject, however, to the
      provisions of Section 3.4 hereof with respect to Major Decisions, of
Section 3.6, Section 3.7 and Article XI hereof
      with respect to the acquisition or sale of Qualified Assets and any other
      provisions of this Agreement concerning the investments, business and day-to-day
      affairs of the Partnership.  The General Partner shall use
      commercially reasonable efforts to manage the investments, business and
      day-to-day affairs of the Partnership in accordance with the Annual Plan
      approved in accordance with Section 3.5 hereof.  Any
      action taken by the General Partner in accordance with the terms of this
      Agreement shall constitute the act of and serve to bind the
      Partnership.  The General Partner may delegate certain of the tasks
      that are to be performed in connection with the acquisition of Qualified Assets,
      the management of the 

    
      
         

      

      
        17

        
          

        

      

      
         

      

      Qualified Assets or the business and day-to-day affairs of the
        Partnership.  Any such delegation to third parties provided in the
        previous sentence shall be at the cost of the General Partner and supervised
        by
        the General Partner and such delegation shall not relieve the General Partner
        of
        any of its obligations hereunder.  Any right of any Partner to consent
        to any action requiring its consent hereunder shall not be diminished or
        otherwise affected by such delegation.

       

    

    (b)  Delegation
      to the Executive Committee.

     

    (i)  The
      Executive Committee shall be delegated the authority to exercise the authority
      conferred on it by this Agreement.  No member of the Executive
      Committee shall (x) have any interest in or rights under this Agreement, (y)
      be
      admitted as a substitute for any Partner or (z) have any of the rights of a
      Partner under the Act or this Agreement.

     

    (ii)  Action
      requiring a Supermajority Vote by the Executive Committee shall be taken without
      a meeting by a consent in writing setting forth the action taken, which shall
      be
      signed by at least four (4) of the five (5) members of the Executive
      Committee.  Action requiring a Majority Vote of the Executive
      Committee shall be taken at a special meeting of the Executive Committee, upon
      not less than five (5) Business Days’ prior written notice by the General
      Partner to the members of the Executive Committee.  Such meetings
      shall be held at the time specified in the notice at a location selected by
      the
      General Partner or, if requested by any member of the Executive Committee,
      by
      teleconference.

     

    (iii)  Any
      member of the Executive Committee may resign at any time by giving written
      notice to each Partner.  The resignation of any member of the
      Executive Committee shall take effect upon receipt of the notice thereof or
      at
      such later time as shall be specified in such notice; and, unless otherwise
      specified therein, the acceptance of such resignation shall not be necessary
      to
      make such resignation effective.  The Partner who appointed the
      resigning Executive Committee member shall appoint a replacement Executive
      Committee member within seven (7) Business Days of such
      resignation.  Any Partner who appointed an Executive Committee member
      may remove such member at any time upon written notice to the other Partners,
      which notice shall name and appoint a new Executive Committee member to replace
      the Executive Committee member so removed.

     

    (iv)  The
      members of the Executive Committee shall not be entitled to receive any fees
      or
      reimbursement for any expenses for their service in such capacity.

     

    (c)  Delegation
      to the Asset Manager.  The General Partner shall retain the Asset
      Manager pursuant to a Management Agreement substantially in the from attached
      hereto as Exhibit C and delegate (pursuant to Sections 3.1(a)
      and (b) above) to the Asset Manager the management of the Qualified
      Assets and, during the Acquisition Period, the performance of the tasks
      necessary for the evaluation of Proposed Qualified Assets and the acquisition
      of
      Approved Qualified Assets as contemplated in Section 3.6
      hereof.  The Asset Manager shall (x) have no interest in or rights
      under this Agreement, (y) not be admitted as a substitute for any Partner and
      (z) not have any of the rights of a Partner under the Act or this
      Agreement.  Any delegation to the Asset Manager provided in this
Section 3.1(b) shall be 

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

      supervised by the General Partner and the Executive Committee and such
        delegation shall not relieve the General Partner of any of its obligations
        hereunder as General Partner.

       

    

    (d)  Right
      to Rely on Authority of the General Partner.  Any action taken by
      the General Partner, acting on behalf of the Partnership pursuant to the
      authority conferred thereon in this Agreement, shall be binding on the
      Partnership.  In no event shall any Person dealing with the General
      Partner with respect to the conduct of the affairs of the Partnership be
      obligated to ascertain whether the terms of this Agreement have been complied
      with, or be obligated to inquire into the necessity or expediency of any action
      of the General Partner.

     

    (e)  Inland’s
      Right to Enforce Partnership Rights Against LMLP Affiliated
      Parties.  Notwithstanding anything herein to the contrary, if LMLP
      GP, in its capacity as General Partner, has failed to enforce any of the
      Partnership’s rights against any LMLP Affiliated Party that has defaulted on any
      obligation owed to the Partnership under this Agreement, the Contribution
      Agreement, the Purchase Agreement or any agreement between the Partnership
      and
      any LMLP Affiliated Party (including the Management Agreement), Inland shall
      be
      entitled to exercise, on behalf of the Partnership and at the expense of the
      Partnership, the Partnership’s rights and obligations arising under such
      agreements all without the consent or approval of LMLP GP or the Executive
      Committee.

     

    Section
      3.2  Actions
      of the General Partner.

     

    (a)  Acts
      of the General Partner.  Any action required or permitted to be
      taken by the General Partner shall be taken by written consent of the General
      Partner, and the writing or writings shall be filed with the books and records
      of the Partnership.

     

    (b)  General
      Informational Meetings.  The General Partner shall hold
      informational meetings with the Partners to review and discuss the Partnership’s
      activities and business at least once annually and, so long as LMLP GP is the
      general partner and if requested by Inland upon not less than ten (10) Business
      Days’ prior written notice, at least once quarterly.  Such meetings
      shall be held at a mutually convenient time at a location selected by the
      General Partner and teleconferencing will be made available.

     

    Section
      3.3  Authority
      of the General Partner.  

     

    (a)  Except
      as
      otherwise provided in this Article III, the General Partner is
      hereby authorized to do the following, for and in the name and on behalf of
      the
      Partnership, as may be necessary, convenient or incidental to the implementation
      of the Annual Plan or to the accomplishment of the purposes of the Partnership
      (provided, that if any of the following constitutes a Major Decision that
      is not specifically set forth in the Annual Plan, the General Partner shall
      first obtain the consent of the Executive Committee pursuant to
Section 3.4 hereof):

     

    (i)  enter
      into a good faith non-binding letter of intent concerning the acquisition of
      a
      Proposed Qualified Asset.

     

    
      
         

      

      
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    (ii)  acquire
      by purchase, exchange or otherwise, any Proposed Qualified Asset consistent
      with
      the purposes of the Partnership, but only in accordance with Sections 3.4
      and  3.6 hereof;

     

    (iii)  operate,
      manage and maintain each of the Qualified Assets;

     

    (iv)  take
      such
      action as is necessary to form, create or set up any SP Subsidiary that has
      been
      approved in accordance with Section 3.6 hereof;

     

    (v)  dissolve,
      terminate or wind-up any SP Subsidiary, provided that any Qualified Asset
      held by such SP Subsidiary has been disposed of in accordance with Article
      XI hereof or transferred to the Partnership or any other SP
      Subsidiary;

     

    (vi)  enter
      into, amend, extend or renew any lease of any Qualified Asset or any part
      thereof or interest therein approved as part of the Annual Plan;

     

    (vii)  initiate
      legal proceedings or arbitration with respect to any lease of any Qualified
      Asset or part thereof or interest therein; provided that the initiation
      of such legal proceedings or arbitration shall have arisen (x) in
      connection with any matter of an emergency nature, (y) for the collection
      of rent or (z) involving an uninsured claim of less than
      $100,000;

     

    (viii)  dispose
      of any or all of the Qualified Assets by sale, lease, exchange or otherwise,
      and
      grant an option for the sale, lease, exchange or otherwise of any or all the
      Qualified Assets, but only in accordance with Section 3.7
      hereof;

     

    (ix)  employ
      and dismiss from employment any and all employees, agents, independent
      contractors, attorneys and, subject to Section 3.4 hereof,
      independent accountants for the Partnership;

     

    (x)  pay
      all
      Permitted Expenses (and maintain in reserve the amount of any credits pursuant
      to Section 3.10 hereof);

     

    (xi)  execute
      and deliver any and all agreements, contracts, documents, certifications and
      instruments necessary or convenient in connection with the management,
      maintenance and ownership of the Qualified Assets and in connection with any
      other matters with respect to which the General Partner has authority to act
      pursuant to the Annual Plan or as set forth in this
Section 3.3;

     

    (xii)  draw
      down
      funds as needed under any approved lines of credit or other financing previously
      approved under Section 3.4 hereof;

     

    (xiii)  finance
      or refinance a portion of the purchase price of any Qualified Asset and incur
      (and refinance) indebtedness secured by any Qualified Asset, or any portion
      thereof or any interest or estate therein and incur any other secured or
      unsecured borrowings or other indebtedness;

     

    
      
         

      

      
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    (xiv)  implement
      those Major Decisions that are specifically set forth in the Annual Plan or
      that
      have been approved by the Executive Committee pursuant to
Section 3.4 below; and

     

    (xv)  subject
      to any conditions expressly provided in this Agreement, engage in any kind
      of
      activity and perform and carry out contracts of any kind necessary or incidental
      to or in connection with the accomplishment of the purposes of the Partnership
      as may be lawfully carried out or performed by a limited partnership under
      the
      laws of each state in which the Partnership is then formed or registered or
      qualified to do business.

     

    (b)  Notwithstanding
      anything in this Agreement to the contrary, but subject to Section 3.8(a)
      hereof, LMLP GP or LMLP is hereby authorized to obtain a loan on behalf of
      the
      Partnership or an SP Subsidiary the proceeds of which are to be used to redeem
      any allocated portion of the Preferred Equity and satisfy any first mortgage
      financing secured by the Preferred Equity Asset related to the allocated portion
      of the Preferred Equity being redeemed, so long as the annual total debt service
      payments required to be paid on such loan is equal to or less than the payments
      that the Partnership is otherwise required to make on the Preferred Equity
      being
      redeemed and the related first mortgage financing being satisfied.

     

    Section
      3.4  Major
      Decisions.  

     

    (a)  Major
      Decisions. Notwithstanding anything to the contrary contained in this
      Agreement, but subject to Section 3.3(b), Section 3.4(b) and
Section 3.8(e) hereof, the General Partner shall not take, on behalf
      of
      the Partnership, and shall not permit the Partnership or the Asset Manager
      to
      take, any action, make any decision, expend any sum or undertake or suffer
      any
      obligation which comes within the scope of any Major Decision unless such Major
      Decision is approved by the Executive Committee in the manner required by
Section 3.4(b) in advance in writing or as specifically set forth in the
      Annual Plan.

     

    As
      used
      herein, “Major Decision” shall mean a decision to take any of
      the following actions directly or indirectly through or for an SP
      Subsidiary:

     

    (i)  the
      acquisition (including any decisions under Section 3.6) by purchase,
      exchange or otherwise of any Qualified Asset or other asset and except for
      the
      acquisition of the Qualified Contribution Assets and Qualified Sale Assets;
      provided that acquisitions of Qualified Assets shall only occur during
      the Acquisition Period;

     

    (ii)  the
      construction, alteration, improvement, repair, rehabilitation, razing,
      rebuilding or replacement of any building or other improvements or the making
      of
      any capital improvements, replacements, repairs, alterations or changes in,
      to
      or on any Qualified Asset, or any part thereof, except to the extent provided
      for in the Annual Plan; provided that repairs of an emergency nature may
      be undertaken without prior approval of a majority of the members of the
      Executive Committee provided the General Partner notifies each member of the
      Executive Committee in writing thereof within two (2) Business Days following
      the commencement of such emergency repairs;

     

    (iii)  the
      reinvestment for restoration purposes of (i) insurance proceeds in excess
      of $500,000 received by the Partnership in connection with the 

     

    
      
         

      

      
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      damage or destruction of any Qualified Asset or (ii) condemnation
        proceeds in excess of $500,000 received by the Partnership in connection
        with
        the taking or settlement in lieu of a threatened taking of all or any portion
        of
        any Qualified Asset; provided that if the determination is made not to
        reinvest any such insurance or condemnation proceeds, then so much thereof
        as
        may be necessary shall be applied to the razing or other disposition of the
        remaining improvements as may be required by law or by a reasonably prudent
        property manager and the balance of such insurance or condemnation proceeds
        shall be distributed in accordance with this Agreement;

       

    

    (iv)  the
      commencement of any case, proceeding or other action seeking protection for
      the
      Partnership as debtor under any existing or future law of any jurisdiction
      relating to Bankruptcy, insolvency, reorganization or relief of debtors; any
      consent to the entry of an order for relief in or institution of any case,
      proceeding or other action brought by any third party against the Partnership
      as
      a debtor under any existing or future law of any jurisdiction relating to
      Bankruptcy, insolvency, reorganization or relief of debtors; the filing of
      an
      answer in any involuntary case or proceeding described in the previous clause
      admitting the material allegations of the petition therefor or otherwise failing
      to contest any such involuntary case or proceeding; the seeking of or consent
      to
      the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
      custodian or any similar official for the Partnership or for a substantial
      portion of its Qualified Assets; any assignment for the benefit of the creditors
      of the Partnership; or the admission in writing that the Partnership is unable
      to pay its debts as they mature or that the Partnership is not paying its debts
      as they become due;

     

    (v)  the
      extension of the statute of limitations for assessing or computing any tax
      liability against the Partnership or the amount of any Partnership tax item
      or
      to settle any dispute with respect to any income, or any other material,
      tax;

     

    (vi)  a
      merger,
      sale or recapitalization of the Partnership or a sale or other disposition,
      including a disposition by lease, of any or all of the Qualified Assets, except
      in accordance with Article XI hereof;

     

    (vii)  the
      financing or refinancing of, or the increasing of any mortgage indebtedness
      encumbering, any Qualified Asset, or any portion thereof or any interest or
      estate therein, whether recourse or non-recourse to the Partnership, or the
      incurrence of indebtedness secured by any Qualified Asset, or any portion
      thereof or any interest or estate therein, or the incurrence of any other
      secured or unsecured borrowings or other indebtedness by the Partnership,
      including determination of the terms and conditions thereof, and any amendments
      to such terms and conditions or otherwise with respect to anything in this
      clause (vii) except as contemplated in an Annual Plan or in accordance with
      Section 3.4 hereof;

     

    (viii)  the
      approval of the Annual Plan, including any budget line item, and any amendment
      to the Annual Plan;

     

    (ix)  the
      incurring of any cost or expense for any fiscal year, other than a Permitted
      Expense;

     

    
      
         

      

      
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    (x)  the
      entering into of any transaction or agreement with or for the benefit of, or
      the
      employment or engagement of, any LMLP Affiliated Party, except as expressly
      contemplated in Sections 3.1(c) and 3.10 hereof;

     

    (xi)  except
      as
      required by the lenders under the loan documents governing indebtedness of
      the
      Partnership, the establishment of a reserve for working capital, capital
      expenditures or to pay other costs and expenses incident to ownership of the
      Qualified Assets and for such other Partnership purposes in excess of an
      aggregate of  (A) $100,000 or (B) $500,000;

     

    (xii)  the
      initiation of legal proceedings or arbitration by the Partnership or the
      settlement of any litigation against the Partnership involving an uninsured
      claim in excess of (A) $100,000 or (B) $500,000; provided that the
      initiation of such legal proceedings or arbitration (x) in connection with
      any matter of an emergency nature, or (y) for the collection of rent, shall
      not be a Major Decision subject to this Section 3.4(a);

     

    (xiii)  with
      respect to any lease of any Qualified Asset, or part thereof or interest
      therein, the entering into, amending, extending or renewing thereof, in each
      case not already approved as part of the Annual Plan;

     

    (xiv)  the
      admission of a new Partner to the Partnership or acquisition by an existing
      Partner of an additional interest in the Partnership, except in accordance
      with
Article VIII and XI hereof;

     

    (xv)  the
      engagement of an accounting firm to audit the financial statements of the
      Partnership;

     

    (xvi)  the
      extension of the Acquisition Period, which decision to extend shall be made
      not
      less than 60 days prior to the end of the Acquisition Period;

     

    (xvii)  making
      an
      Extraordinary Call to the Partners to fund an operating deficit of the
      Partnership in excess of the Extraordinary Call Cap;

     

    (xviii)  except
      in
      connection with items set forth in the Annual Budget or items constituting
      a
      Permitted Expense, the entry into any agreement by the Partnership involving
      more than $100,000 of consideration or having a term in excess of 1 year and
      in
      all cases any property management agreement or brokerage agreement;

     

    (xix)  the
      winding up or dissolution of the Partnership;

     

    (xx)  any
      deviation from the SP Subsidiary Agreements, which directly or indirectly
      impairs the economic or management rights of the Partnership; and

     

    (xxi)  subject
      to Section 3.3 hereof, the execution of any agreement, contract or
      understanding or other arrangement to effectuate a Major Decision.

     

    (b)  Vote
      Required. Major Decisions shall require the following
      approvals:

     

    
      
         

      

      
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    (i)  A
      Supermajority Vote shall be required for the Major Decisions set forth in
Section 3.4(a)(i)-(iv), (vi)-(x), (xi)(B), (xii)(B)
      and (xiii)-(xxi).

     

    (ii)  A
      Majority Vote shall be required for the Major Decisions set forth in Section
      3.4 (v), (xi)(A) and (xii)(A).

     

    (c)  Non-Binding
      Letters of Intent. Notwithstanding the foregoing, the General Partner shall
      be authorized to execute non-binding letters of intent with respect to property
      and operational actions that constitute Major Decisions.

     

    Section
      3.5  Preliminary
      and Annual Plans.

     

    (a)  Preparation
      and Approval of Plans.  The General Partner shall prepare and
      deliver to the Executive Committee for its approval or disapproval a proposed
      annual plan for the next fiscal year of the Partnership (as further described
      below, a “Proposed Plan”).  The Proposed Plan shall
      cover the Partnership and each Qualified Asset and shall include:

     

    (i)  a
      proposed Annual Budget covering the Partnership and each Qualified Asset and
      a
      brief narrative description of the material portions thereof;

     

    (ii)  a
      plan of
      operations for each Qualified Asset, including anticipated repairs and
      improvements;

     

    (iii)  estimated
      financing needs and estimated financing costs for the Partnership and each
      Qualified Asset;

     

    (iv)  estimated
      cash flow projections for the Partnership and each Qualified Asset;

     

    (v)  a
      description of tenants then in occupancy in each Qualified Asset;

     

    (vi)  a
      schedule of Qualified Assets, any leases which are expiring during such
      fiscal year and the plans for the re-leasing of such Qualified Assets and any
      lease restructures (such as subleasing or expansion by a tenant) of which the
      General Partner is aware;

     

    (vii)  projected
      capital improvements and capital repairs;

     

    (viii)  a
      description of any Proposed Qualified Assets to the extent identified, including
      the terms of acquisition, provided that nothing in the Proposed Plan shall
      affect or limit the provisions of Section 3.6 hereof;
      and

     

    (ix)  any
      other
      information relative to the management of the Qualified Assets or the
      Partnership reasonably requested by any member of the Executive
      Committee.

     

    
      
         

      

      
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    The
      General Partner shall prepare and submit a Proposed Plan to the Executive
      Committee on or before November 15th of the year prior to such fiscal
      year.  The Executive Committee shall approve or disapprove such
      revised Proposed Plan no later than December 15th of the year prior to the
      fiscal year covered by such revised Proposed Plan.  Any Proposed Plan
      approved by the Executive Committee in accordance with Section 3.4 shall
      become the annual plan for the next fiscal year of the Partnership (any Proposed
      Plan approved by the Executive Committee for any fiscal year of the Partnership,
      and as may be amended from time to time by a Plan Amendment, an “Annual
      Plan”).  A model of an Annual Plan is attached as
Schedule 3.5 and made a part hereof.  The initial Annual
      Plan shall be approved by a Supermajority Vote of the Executive Committee within
      sixty (60) days of the date first set forth above.  If the Partnership
      has not acquired the Qualified Sale Assets and the Qualified Contribution Assets
      within sixty (60) days of the date first set forth above, then within thirty
      (30) days after the closing of the last to be acquired of Qualified Sale Assets
      or Qualified Contribution Assets, the General Partner shall submit a new
      Proposed Plan covering all of the Qualified Assets held by the Partnership
      for
      the remainder of the then current year to the Executive Committee for approval
      or disapproval within a thirty (30) day period in accordance with the procedures
      outlined herein which Proposed Plan upon approval shall become the Annual
      Plan.

     

    (b)  Dispute
      Concerning an Annual Budget.  If, prior to the commencement of any
      fiscal year, the Executive Committee has disapproved the Proposed Plan because
      it could not reach an agreement as to the amount to be allocated to any budget
      line item set forth in the Annual Budget portion of the Proposed Plan for such
      fiscal year, then (i) as to any such disputed budget line item, the Annual
      Budget portion of the Annual Plan for the immediately preceding fiscal year
      (exclusive of any non-recurring capital expenditures) shall be controlling
      but
      only with respect to such disputed budget line item (in each case adjusted
      to
      reflect the increases in the CPI for November of such fiscal year over the
      CPI
      for November of such immediately preceding fiscal year) and only until such
      time
      as the Executive Committee has approved the amount to be allocated to such
      budget line item, and (ii) as to any budget line item or items that are not
      in dispute, the Annual Budget portion of the Proposed Plan shall
      control.

     

    (c)  Amendments
      to Annual Plans.  If in any Partner’s judgment an Annual Plan
      requires amendment, such Partner shall deliver to the Executive Committee a
      written notice setting forth the proposed amendment to the Annual Plan and
      the
      basis therefor.  The Executive Committee shall approve or disapprove,
      in accordance with Section 3.4 hereof, such proposed amendment within ten
      (10) Business Days after receipt thereof, and, if the Executive Committee shall
      approve such proposed amendment (any such amendment, a “Plan
      Amendment”), the Annual Plan (including, without limitation any
      amendments to the Annual Budget portion thereof) shall be amended by the Plan
      Amendment as set forth in the written notice described in the preceding
      sentence.  If the Executive Committee shall disapprove a Plan
      Amendment, then the Annual Plan then in effect shall not be amended pursuant
      to
      such disapproved Plan Amendment.

     

    Section
      3.6  Qualified
      Asset Acquisitions. 

     

    (a)  Generally;
      Approval by Executive Committee.  During the Acquisition Period,
      LMLP GP shall identify net-leased assets that meet the Acquisition

     

    
      
         

      

      
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      Parameters as candidates for acquisition, directly or indirectly, by
        the
        Partnership (any such asset, a “Proposed Qualified
        Asset”).  LMLP GP or Asset Manager shall submit the
        Acquisition Memorandum described in Section 3.6(b) hereof with
        respect to the Proposed Qualified Asset or a Non-Parameter Asset that LMLP
        GP
        recommends for acquisition by the Partnership to the Executive
        Committee.  The Executive Committee shall have seven (7) Business Days
        after its receipt of the Acquisition Memorandum to approve or disapprove
        of the
        acquisition of a Proposed Qualified Asset or Non-Parameter Asset in accordance
        with Section 3.4 hereof.

       

    

    (b)  Acquisition
      Memorandum.  For each Proposed Qualified Asset and Non-Parameter
      Asset, LMLP GP or Asset Manager shall deliver to the Executive Committee an
      Acquisition Memorandum describing such Proposed Qualified Asset or Non-Parameter
      Asset in reasonable detail, including without limitation:

     

    (i)  whether
      it is a Proposed Qualified Asset or a Non-Parameter Asset;

     

    (ii)  the
      size
      and location thereof;

     

    (iii)  the
      improvements thereon;

     

    (iv)  the
      operating history, if any, financial status and financial projections (for
      a
      minimum of five (5) years, including any anticipated expenditures or allowances)
      thereof;

     

    (v)  market
      data, including rental and sales comparables and competitive submarket survey,
      if necessary;

     

    (vi)  the
      material findings of all due diligence undertaken to date with respect thereto,
      if any, including a summary of any litigation involving the Proposed Qualified
      Asset or Non-Parameter Asset and the material findings to date of any
      Environmental Assessment and/or Physical Inspection Report;

     

    (vii)  photographs
      and site plans;

     

    (viii)  the
      estimated cost to the Partnership, including the estimated purchase price and
      estimated due diligence costs, the amount and material terms of any mortgage
      indebtedness to be assumed, incurred or taken subject to;

     

    (ix)  the
      material provisions of the net lease or leases thereon and copies of such leases
      (or in the case of proposed leases, drafts or reasonably detailed abstracts
      of
      proposed leases);

     

    (x)  the
      identification of each tenant and financial information relating to each such
      tenant;

     

    (xi)  such
      other information and documentation any member of the Executive Committee may
      reasonably request and is reasonably available, including the purchase and
      sale
      agreement and loan documents.

     

    
      
         

      

      
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    (c)  Assets
      Which Do Not Comply With Acquisition Parameters.  LMLP GP may
      submit net-leased assets that do not comply in all respects with the Acquisition
      Parameters (each, a “Non-Parameter Asset”) to the Executive Committee for
      approval pursuant to Section 3.6(a) hereof.

     

    (d)  Acquisition
      of Approved Qualified Assets.  Upon receipt of the written
      approval of a majority of the members of the Executive Committee as provided
      in
Section 3.6(a) above of the acquisition by the Partnership of a
      Proposed Qualified Asset or Non-Parameter Asset (any Proposed Qualified Asset
      or
      Non-Parameter Asset so approved, an “Approved Qualified
      Asset”), LMLP GP or Asset Manager shall take all commercially
      reasonable efforts on behalf of the Partnership to negotiate and execute all
      documents necessary to acquire the Approved Qualified Asset pursuant to and
      in
      accordance with the terms approved by the Partners (including formation of
      an SP
      Subsidiary, if applicable) and to complete due diligence that the General
      Partner deems reasonably necessary, including (to the extent not already
      completed) obtaining an Environmental Assessment and a Physical Inspection
      Report.  LMLP GP or Asset Manager shall keep the Executive Committee
      reasonably informed of the progress of the Partnership’s acquisition of any
      Approved Qualified Asset, including the material findings of all due diligence
      and of any material matters that arise during the course
      thereof.  Upon completion of all due diligence undertaken as specified
      above with respect to an Approved Qualified Asset and as a condition to
      completing the acquisition of the Approved Qualified Asset, LMLP GP or Asset
      Manager shall deliver to the Executive Committee a memorandum summarizing the
      material findings of the completed due diligence and any changes in the status
      of such Approved Qualified Asset since the date of the Acquisition Memorandum
      described in Section 3.6(b) above and the Executive Committee, in
      accordance with Section 3.4 hereof, shall confirm its continuing approval
      of the acquisition before LMLP GP commits (on a nonrefundable basis) the
      Partnership’s funds as provided below.  Upon request by any member of
      the Executive Committee, LMLP GP or Asset Manager will provide to the Executive
      Committee copies of the Environmental Assessment, the Physical Inspection Report
      and the survey after completion thereof.

     

    It
      is understood and agreed that (x)
      LMLP GP may deposit its own funds, or cause the Partnership to deposit
      Partnership funds, as refundable earnest money, and (y) the Partnership’s funds
      shall be substituted (and such funds reimbursed to LMLP GP) or committed, as
      the
      case may be, on a nonrefundable basis only after due diligence is completed
      and
      the Executive Committee has confirmed its continuing approval of the
      acquisition.  After the Partnership has committed its funds on a
      nonrefundable basis in accordance with the prior sentence, if the terms of
      the
      acquisition change in any material respect from the terms described in the
      Acquisition Memorandum, such change shall require the consent of a majority
      of
      the members of the Executive Committee.

     

    An
      acquisition of a Approved Qualified
      Asset shall be made through SP Subsidiaries utilizing the SP Subsidiary
      Agreements.

     

    Within
      five (5) Business Days after the
      closing of the acquisition of an Approved Qualified Asset, LMLP GP shall deliver
      to the Partners a closing statement acknowledging the receipt of and setting
      forth the application of the Partners’ Capital Contributions and any other funds
      of the Partnership used to acquire such Approved Qualified 

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

      Asset or to pay closing costs (including an estimate of costs not finalized
        at closing, including legal fees and costs) associated therewith.

       

    

    (e)  Disapproved
      Qualified Assets.  If the Executive Committee (x) disapproves any
      Proposed Qualified Asset or any proposed Non-Parameter Asset, (y) fails after
      the completion of due diligence to confirm its continuing approval of the
      acquisition of an Approved Qualified Asset as provided in Section 3.6(d) above,
      or (z) otherwise withdraws its approval of an Approved Qualified Asset as
      provided in Section 3.6(d) above, LMLP GP shall not cause or permit
      the Partnership to acquire such Proposed Qualified Asset, proposed Non-Parameter
      Asset or Approved Qualified Asset and the LMLP Partners or their designee shall
      have the right to acquire such Proposed Qualified Asset, proposed Non-Parameter
      Asset or Approved Qualified Asset for their own account or with or in connection
      with any other Person; provided that such right shall not apply if the
      members of the Executive Committee appointed by Inland vote to approve the
      acquisition in accordance with Section 3.4 hereof.

     

    (f)  Acquisition
      Costs.  Except as provided in this Section 3.6(f) and in
Section 3.6(g) hereof, LMLP GP or the Asset Manager (as the case may
      be) shall be liable for all costs and expenses (“Acquisition
      Costs”) arising in connection with the identification or evaluation of,
      the bidding on and the structuring and negotiation of and contracting for the
      acquisition or attempted acquisition of, and the due diligence undertaken in
      connection with, any Proposed Qualified Asset or Approved Qualified Asset (such
      activities, the “Acquisition Activities”); provided
      that:

     

    (i)  the
      Partnership shall (x) reimburse LMLP GP or the Asset Manager (as the case may
      be) for all Acquisition Costs and (y) be liable for all reasonable and customary
      costs and expenses of Third Parties retained in connection with the Acquisition
      Activities related to Approved Qualified Assets;

     

    (ii)  the
      Partnership shall reimburse LMLP GP or the Asset Manager (as the case may be)
      for 60% of the Acquisition Costs in connection with Acquisition Activities
      related to Proposed Qualified Assets and Approved Qualified Assets that are
      disapproved by the Executive Committee;

     

    Notwithstanding
      the foregoing, but subject to Section 3.9 hereof, if for any reason other
      than pursuant to Article XI hereof any LMLP Affiliated Party (instead of
      the Partnership or an SP Subsidiary) acquires title to any Proposed Qualified
      Asset or Approved Qualified Asset, LMLP shall pay all of the costs and expenses
      (and reimburse the Partnership for any refundable or nonrefundable deposits
      funded by the Partnership in connection with the acquisition of such asset)
      incurred or to be incurred in connection with the Acquisition Activities
      relating to such Proposed Qualified Asset or Approved Qualified
      Asset.

     

    (g)  Acquisition
      Fee.  Upon the acquisition of any Approved Qualified Asset by the
      Partnership or by an SP Subsidiary (including any Approved Qualified Asset
      contributed in whole or in part by LMLP to the Partnership), pursuant to this
      Section 3.6, Inland shall pay LMLP GP or the Asset Manager an
      acquisition fee (the “Acquisition Fee”) equal to the sum of the
      gross purchase price of such acquired Approved Qualified Asset multiplied by
      0.425%.

     

    
      
         

      

      
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    For
      example, if the purchase price of such acquired Approved Qualified Asset were
      $25 million, Inland’s Acquisition Fee would equal $106,250.

     

    Section
      3.7  Sale
      of Qualified Assets.

     

    (a)  Authority
      to Sell.  Subject to Article XI, the General Partner shall
      have no authority to and shall not initiate the sale of any Qualified Asset
      without approval by the Executive Committee in accordance with Section
      3.4 of this Agreement.

     

    (b)  Assets
      in Foreclosure.  In the event a lender to the Partnership or a SP
      Subsidiary has initiated or threatens to initiate a foreclosure proceeding
      with
      respect to any Qualified Asset securing such lender’s loan to the Partnership or
      such SP Subsidiary, and a Partner disagrees as to whether such Qualified Asset
      shall be transferred to the lender in satisfaction of such loan, the Partner
      not
      in favor of such transfer shall have the right to purchase such Qualified Asset
      from the Partnership for One Dollar ($1.00) provided such Partner assumes such
      loan in full and such lender releases the Partnership and any guarantors
      therefrom.  No adjustments to the Capital Contributions, Capital
      Commitments, or Capital Account shall be made on account of a transfer made
      in
      accordance with this Section 3.7(b).

     

    Section
      3.8  Partnership
      Indebtedness.

     

    (a)  Maximum
      Debt.  The Partnership on a consolidated basis with the SP
      Subsidiaries shall maintain a total debt plus Preferred Equity of not greater
      than seventy-five percent (75%) of the gross acquisition cost of the
      Partnership’s Qualified Assets.  The total debt secured by any
      Qualified Asset plus the Preferred Equity allocated to such Qualified Asset
      shall not exceed 75% of the gross acquisition cost of such Qualified
      Asset.

     

    (b)  Non-Recourse
      to the Partners.  Notwithstanding anything to the contrary
      contained in this Agreement, the Partnership shall not incur debt that is
      recourse to the Partners, and the Partners shall not be liable for any debts
      or
      other obligations or liabilities incurred by the Partnership; provided, that,
      if
      a lender will not accept the Partnership as a guarantor for “non-recourse
      carve-outs,” LMLP shall provide such “non-recourse carve-out”
guarantee.

     

    (c)  Cross-Default
      Provisions.  Unless approved by a Supermajority Vote of the
      Executive Committee, the Partnership shall not incur any indebtedness that
      contains cross-default provisions, except for cross-default provisions under
      the
      Existing Indebtedness and any first mortgage financing secured by the Qualified
      Refi Assets which the Partnership shall obtain pursuant to Section
      3.8(f)(i) hereof.

     

    (d)  Loan
      Terms.  The Partnership shall endeavor to procure indebtedness,
      the terms of which will:

     

    (i)  not
      prohibit the replacement of the General Partner or the Asset Manager with a
      Person, including an Affiliate of Inland, so long as such Person meets the
      standards of the commercial mortgage backed securities market; and

     

    
      
         

      

      
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    (ii)  not
      prohibit transfers pursuant to Articles VIII or XI
      hereof;

     

    in
      each
      case without triggering the due on sale provision, a prepayment penalty or
      an
      assumption fee (other than administrative fees and other nominal lender fees,
      including legal costs).

     

    (e)  Restriction
      on Indebtedness.  Notwithstanding anything in this Agreement to
      the contrary, the Partnership shall be prohibited from incurring additional
      indebtedness on any Preferred Equity Asset without the prior written consent
      of
      LMLP, unless the Preferred Equity related to the Preferred Equity Asset is
      simultaneously being repaid.

     

    (f)  Debt
      Placement.

     

    (i)  Subject
      to Sections 3.8(a), (b), (c), (d) and 5.1,
      the General Partner is authorized to cause the Partnership, directly or
      indirectly, to obtain first mortgage financing secured by the Qualified Refi
      Assets.

     

    (ii)  The
      Partners agree that (x) the General Partner is authorized, on behalf of the
      Partnership, to engage Inland Mortgage Brokerage Corporation
      (“IMBC”) in connection with obtaining first mortgage financing
      secured by the Qualified Refi Assets, and (y) the Partnership may pay IMBC
      an
      aggregate fee of up to 0.20% of the original principal amount of each such
      first
      mortgage financing secured by a Qualified Refi Asset less any other fees the
      Partnership is required to pay to a mortgage broker for obtaining such first
      mortgage financing.  For any other debt financings, the Partnership
      shall give each of IMBC and Concord Debt Holdings LLC the opportunity to bid
      to
      place or originate such debt financing, but the Partnership shall not be
      obligated to use either IMBC or Concord Debt Holdings LLC for such other debt
      financing.

     

    Section
      3.9  Business
      Opportunity.

     

    (a)  LMLP.

     

    (i)  General.
      Each LMLP Affiliated Party may each engage in or possess any interest in other
      business ventures of any kind, independently or with others, including but
      not
      limited to the ownership, operation and management of net-leased real estate
      assets, except as provided in this Section 3.9(a).

     

    (ii)  Exclusivity.
      During the Acquisition Period and except as provided in Section 3.9(iii)
      hereof or with respect to obligations to the existing joint ventures set forth
      on Schedule 3.9 hereto, (a) the LMLP Affiliated Parties shall not
      acquire, or earn any incentive fee for the management or leasing of, any
      net-leased assets which satisfy or comply with all of the “Acquisition
      Parameters,” and (b) LMLP GP shall make available for purchase by the
      Partnership, and the Partnership shall have the right to purchase pursuant
      to
Section 3.6 hereof, all net-leased assets offered to or discovered
      by the LMLP Affiliated Parties which satisfy or comply with all of the “Required
      Parameters” comprising the Acquisition Parameters (collectively, the
“Exclusivity Right”).

     

    
      
         

      

      
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    (iii)  Acquisition
      by LMLP Affiliated Parties. Notwithstanding anything to the contrary
      contained in this Agreement, any LMLP Affiliated Party may acquire (A) the
      assets LMLP GP is required to offer to the Partnership in accordance with this
      Section 3.9(a) only (1) if the asset is owned by an LMLP Affiliated
      Party or related (through adjacent or common ownership or constitutes land
      or
      other assets underlying or constituting part of an asset owned by an LMLP
      Affiliated Party) to an asset owned by an LMLP Affiliated Party, (2) if the
      seller will accept only O.P. Units in exchange therefor, (3) if any LMLP
      Affiliated Party is required to offer the asset pursuant to an existing joint
      venture arrangement, or (4) after the Executive Committee (including at least
      one (1) of the two (2) members appointed by Inland) has disapproved such
      acquisition as provided in Section 3.4 hereof and (B) assets
      that it is not required to offer to the Partnership under this
Section 3.9(a).

     

    (iv)  Termination
      of Exclusivity Right. Notwithstanding anything to the contrary contained in
      this Agreement, the Exclusivity Right and the provisions of this Section
      3.9(a) shall terminate on the earlier of (A) the expiration of the
      Acquisition Period and (B) at such time as the Executive Committee (including
      at
      least one (1) of the two (2) members appointed by Inland) disapproves, within
      any consecutive twelve (12) month period, the lesser of (x) four (4) Proposed
      Qualified Assets or Approved Qualified Assets pursuant to this Agreement and
      (x)
      the number (but in no event less than three (3)) of Proposed Qualified Assets
      and Approved Qualified Assets requiring an equity investment by the Partnership
      of at least $100,000,000.00 assuming 70% debt to the proposed purchase
      price.

     

    (v)  LMLP
      Existing Joint Ventures. From time to time, upon reasonable written request
      from Inland, the LMLP Partners shall provide a schedule of the LMLP Affiliated
      Parties’ existing joint ventures’ respective investment criteria and exclusivity
      terms.  A current list the LMLP Affiliated Parties’ existing joint
      ventures’ respective investment criteria and exclusivity terms is set forth on
Schedule 3.9 hereto.

     

    (vi)  LMLP
      Restrictions.

     

    (A)  The
      LMLP
      Partners shall cause the LMLP Affiliated Parties not to directly or indirectly
      solicit or otherwise attempt to persuade any tenant of any Qualified Asset
      to
      vacate the Qualified Asset to purchase, or relocate to, another asset that
      is
      not a Qualified Asset.

     

    (B)  LMLP
      and
      its Affiliates shall not discriminate against any Qualified Asset when making
      a
      proposal to any existing or prospective tenant in connection with the leasing
      of
      available space.

     

    (C)  In
      the
      event that an LMLP Affiliated Party leases space to a then tenant of a Qualified
      Asset, LMLP GP, so long as it is the General Partner, shall provide written
      notice to Inland of such leasing activity.

     

    (b)  Inland.  Inland
      and any of its Affiliates and related parties may engage in or possess any
      interest in other business ventures of any kind, independently or with others,
      including but not limited to the ownership, operation and management of
      net-leased real estate asset.

     

    
      
         

      

      
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    (c)  Duties
      and Conflicts.  Subject to LMLP GP’s obligation to present
      net-leased real estate assets to the Partnership pursuant to
Section 3.6 and Section 3.9(a) hereof, each Partner
      recognizes that the other Partners and their Affiliates have or may have other
      business interests, activities and investments, some of which may be in conflict
      or competition with the business of the Partnership, and that such Persons
      are
      entitled to carry on such other business interests, activities and
      investments.  The Partners and their Affiliates may engage in or
      possess an interest in any other business or venture of any kind, independently
      or with others, on their own behalf or on behalf of other entities with which
      they are affiliated or associated, and such Persons may engage in any
      activities, whether or not competitive with the Partnership, without any
      obligation (except as expressed in Sections 3.6 and 3.9(a)) to
      offer any interest in such activities to the Partnership or to any
      Partner.  Except as provided in Sections 3.6 or 3.9(a),
      neither the Partnership nor any Partner shall have any right, by virtue of
      this
      Agreement, in such activities, or the income or profits derived therefrom,
      and
      the pursuit of such activities, even if competitive with the business of the
      Partnership, shall not be deemed wrongful or improper.

     

    Section
      3.10  Payments
      to the Asset Manager of the General Partner.

     

    (a)  Property
      Management Fee.  The General Partner shall cause the Partnership
      to pay to the Asset Manager (or its designee) pursuant to the Management
      Agreement an annual Property Management Fee (“Property Management
      Fee”) equal to the sum of (x) three percent (3%) of actual gross
      revenues for the fiscal year (or applicable portion thereof) derived from
      Qualified Assets encumbered by leases that provide for full recovery of the
      Property Management Fee from the tenant (“Gross Revenues”),
      plus (y) on Qualified Assets where the leases do not provide for full recovery
      of the Property Management Fee from the tenant, the amount recoverable for
      the
      fiscal year (or applicable portion thereof) from the tenants of such Qualified
      Assets for property management expenses under such leases (“Recoverable
      Amounts”), payable monthly.

     

    (b)  Partnership
      Management Fee.  The General Partner shall cause the Partnership
      to pay to the Asset Manager pursuant to the Management Agreement an annual
      Partnership Management Fee (“Partnership Management Fee”) equal
      to (x) so long as LMLP GP is the General Partner, Inland’s Percentage Interest
      multiplied by three hundred seventy five thousandths of a percent (0.375%)
      of
      the Equity Capital for a fiscal year (pro rated for partial years), or (y)
      so
      long as LMLP GP is no longer the General Partner, three hundred seventy five
      thousandths of a percent (0.375%) of the Equity Capital for a fiscal year (pro
      rated for partial years), in either case payable monthly and adjusted as
      provided herein.  Within thirty (30) days of the Partnership’s receipt
      of the annual reports described in Section 4.3 hereof for a fiscal
      year, the Asset Manager shall provide to the Partners a written statement of
      reconciliation (which the Partners shall have the right to contest) setting
      forth (x) the Equity Capital for such fiscal year (or partial year) and the
      Partnership Management Fee payable to the Asset Manager in connection therewith,
      pursuant to this Agreement, (y) the Partnership Management Fee already paid
      by
      the Partnership to the Asset Manager during such fiscal year (or partial year),
      and (z) either the amount owed to the Asset Manager by the Partnership
      (which shall be the excess, if any, of the Partnership Management Fee payable
      to
      the Asset Manager for such fiscal year (or partial year) pursuant to this
      Agreement over the Partnership Management Fee actually paid by

     

    
      
         

      

      
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       the Partnership to the Asset Manager for such fiscal year (or partial
        year)) or the amount owed to the Partnership by the Asset Manager (which
        shall
        be the excess, if any, of the Partnership Management Fee actually paid by
        the
        Partnership to the Asset Manager for such fiscal year (or partial year) over
        the
        Partnership Management Fee payable to the Asset Manager for such fiscal year
        pursuant to this Agreement).  The Asset Manager or the Partnership, as
        the case may be, shall pay to the other the amount owed pursuant to
        clause (z) above within five (5) Business Days of the receipt by the
        Partners of the written statement of reconciliation described in this
Section 3.10(b).

       

    

    In
      addition, a credit in an amount equal to three hundred seventy five thousandths
      of a percent (0.375%) of the Equity Capital for a fiscal year (pro rated for
      partial years), less the Partnership Management Fee, as adjusted above (or
      the
      applicable portion thereof), shall accrue and be reserved on the Partnership
      books until a Capital Call is made by the General Partner in accordance with
      Section 5.1(b) hereof, whereupon the amount of the credit shall be
      applied, in whole or in part, to the extent necessary to fund LMLP’s pro rata
      shares of such Capital Call and will be treated for purposes of this Agreement
      as if each pro rata share of such amount were an actual Capital Contribution
      made by the respective LMLP Partner which (1) reduces the respective aggregate
      Capital Commitment of each LMLP Partner and (2) gives rise to an entitlement
      to
      allocations (but only out of subsequent Profits), and related distributions,
      in
      amounts that reflect the amounts that would have been allocated and distributed
      if such notional capital contributions had constituted actual Capital
      Contributions, including a return of such notional capital contributions to
      LMLP
      pursuant to Section 7.1 hereof.

     

    (c)  Acquisition
      Fees.  Inland shall pay the Acquisition Fees in accordance with
      the provisions of Section 3.6(g).

     

    Section
      3.11  Exculpation.

     

    (a)  LMLP.  No
      LMLP Affiliated Party nor or any officer, director, trustee, shareholder,
      member, manager, partner, employee, Affiliate or agent of any LMLP Affiliated
      Party shall be liable, responsible or accountable in damages or otherwise to
      the
      Partnership or any other Partner for any act or omission on behalf of the
      Partnership, in good faith and within the scope of the authority conferred
      on
      LMLP GP as General Partner under this Agreement or otherwise under this
      Agreement or the Asset Manager, as the case may be, or by law unless such act
      or
      failure to act (i) is or results in a breach of any representation,
      warranty or covenant of any LMLP Partner contained in this Agreement or any
      other agreement entered into in connection therewith or related thereto,
      (ii) was fraudulent or committed in bad faith or (iii) constituted
      gross negligence, willful misconduct or a breach of fiduciary duty.

     

    (b)  Inland.  None
      of Inland, or any officer, director, trustee, shareholder, member, manager,
      partner, employee, Affiliate or agent of Inland, or any Affiliate of Inland
      shall be liable, responsible or accountable in damages or otherwise to the
      Partnership or to any other Partner for any act or omission on behalf of the
      Partnership, in good faith and within the scope of authority conferred on Inland
      under this Agreement or by law unless such act or failure to act (i) is or
      results in a breach of any representation, warranty or covenant of Inland
      contained in this Agreement or any other agreement entered into in connection
      therewith or 

     

    
      
         

      

      
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      related thereto, (ii) was fraudulent or committed in bad faith or
        (iii) constituted gross negligence, willful misconduct or a breach of
        fiduciary duty.

       

    

    (c)  Survival.  The
      provisions of this Section 3.12 shall survive any termination of the
      Partnership or this Agreement.

     

    Section
      3.12  Indemnification.

     

    (a)  By
      the
      Partnership.  The Partnership shall indemnify, defend and hold
      harmless any Person (an “Indemnified Party”) who was or is a
      party or is threatened to be made a party to any threatened, pending or
      completed action, suit or proceeding, whether civil, criminal, administrative
      or
      investigative, by reason of any act or omission or alleged act or omission
      arising out of such Indemnified Party’s activities as (i) a Partner or an
      officer, director, trustee, shareholder, member, manager, partner, employee,
      Affiliate or agent of the Partner, (ii) the General Partner or the Asset
      Manager or an officer, director, trustee, shareholder, member, manager, partner,
      employee, Affiliate or agent of any of them on behalf of the Partnership or
      in
      furtherance of the interest of the Partnership, or (iii) LMLP or any LMLP
      Affiliated Party, but only if LMLP GP is no longer the General Partner, that
      is
      obligated to enter into a direct financial obligation (including, without
      limitation, a “non-recourse carve-out” guarantee) in connection with the
      financing of any Qualified Asset, in each case against personal liability,
      claims, losses, damages and expenses for which such Indemnified Party has not
      been reimbursed by insurance proceeds or otherwise (including reasonable
      attorneys’ fees, judgments, fines and amounts paid in settlement) actually and
      reasonably incurred by such Indemnified Party in connection with such action,
      suit or proceeding and any appeal therefrom, unless such Indemnified Party
      (A) acted fraudulently, in bad faith or with gross negligence or willful
      misconduct or (B) by such act or failure to act breached any
      representation, warranty or covenant contained in this Agreement, which breach
      had or has a material adverse effect on the Partnership or any Partner and,
      if
      capable of cure, is not cured within fifteen (15) days after notice thereof
      by
      the aggrieved Partner(s).  Any indemnity by the Partnership under this
      Agreement shall be provided out of, and to the extent of, Partnership revenues
      and assets only, and no Partner shall have any personal liability on account
      thereof.  The indemnification provided under this
Section 3.12 shall (x) be in addition to, and shall not limit
      or diminish, the coverage of the Partners or any Affiliates under any insurance
      maintained by the Partnership and (y) apply to any legal action, suit or
      proceeding commenced by a Partner or in the right of a Partner or the
      Partnership.  The indemnification provided under this
Section 3.12 shall be a contract right and shall include the right
      to be reimbursed for reasonable expenses incurred by any such Indemnified Party
      within thirty (30) days after such expenses are incurred.

     

    (b)  By
      the
      LMLP Partners.  The LMLP Partners, so long as LMLP GP is the
      General Partner, shall indemnify and hold harmless Inland and any Affiliate
      and
      related party or agent thereof from and against any liabilities, claims, losses,
      damages and expenses incurred by any such person (including reasonable
      attorneys’ fees, judgments, fines and amounts paid in settlement) as a result of
      any act or omission by any LMLP Affiliated Party which (i) constitutes or
      results in a breach of any representation, warranty or covenant of any LMLP
      Partner contained in this Agreement or any other agreement entered into in
      connection herewith or related hereto, (ii) was performed or omitted
      fraudulently or in bad faith or (iii) constituted gross negligence, willful
      misconduct or breach of fiduciary duty.

    
      
         

      

      
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    (c)  By
      Inland.  Inland, so long as LMLP GP is no longer the General
      Partner, shall indemnify and hold harmless the LMLP Affiliated Parties or agent
      thereof from and against any liabilities, claims, losses, damages and expenses
      incurred by any such person (including reasonable attorneys’ fees, judgments,
      fines and amounts paid in settlement) as a result of any act or omission by
      Inland or any successor General Partner which (i) constitutes or results in
      a breach of any representation, warranty or covenant of Inland or any successor
      General Partner contained in this Agreement or any other agreement entered
      into
      in connection herewith or related hereto, (ii) was performed or omitted
      fraudulently or in bad faith or (iii) constituted gross negligence, willful
      misconduct or breach of fiduciary duty.

     

    ARTICLE
      IV
BOOKS
      AND RECORDS; REPORTS TO PARTNERS

     

    Section
      4.1  Books.  The
      General Partner shall maintain or cause to be maintained separate, full and
      accurate books and records of the Partnership, and any Partner or any authorized
      representative of any Partner, shall have the right to inspect, examine and
      copy
      the same and to meet with employees of the General Partner responsible for
      preparing the same at reasonable times during business hours and upon reasonable
      notice.  All policies of the Partnership with respect to the
      maintenance of such books and records shall be subject to approval by all of
      the
      Partners.

     

    Section
      4.2  Monthly
      and Quarterly Reports.

     

    (a)  Monthly
      Reports.  The General Partner shall prepare and distribute to
      Inland within twenty (20) days after the last day of each month a report with
      respect to the Partnership, which shall include (i) unaudited financial
      statements, consisting of at least an operating statement for the monthly period
      and year-to-date showing variances from the Annual Budget portion of the Annual
      Plan and (ii) a schedule of aged accounts receivable and accounts payable.
      Variances from any line item in the Annual Budget exceeding the greater of
      One
      Hundred Thousand Dollars ($100,000) and ten percent (10%) of the amount
      allocated to such budget line item through the end of such month shall be
      explained in writing, unless already approved by the Executive Committee
      pursuant to Section 3.4 hereof.

     

    (b)  Quarterly
      Reports.  The General Partner shall, no later than the thirtieth
      (30th) day after the end of each fiscal quarter, prepare and
      distribute:

     

    (i)  a
      year-to-date consolidated report with respect to the Partnership (with the
      last
      month of each such report comprised of forecasted, rather than actual, results),
      prepared in accordance with generally accepted accounting principles,
      consistently applied, including (a) a balance sheet, (b) a profit and loss
      statement, (c) a statement of changes in the Partners’ Capital Accounts, (d) a
      report briefly describing each variance from the applicable budget line item
      in
      the consolidated Annual Budget portion of the Annual Plan exceeding the greater
      of One Hundred Thousand Dollars ($100,000) and ten percent (10%) of the amount
      allocated to such budget line item through the date of such report, and (e)
      calculations in sufficient  detail to verify the accuracy of all fees
      and other amounts paid or payable to the Asset  Manager under the
      Management Agreement;

     

    
      
         

      

      
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    (ii)  a
      report
      with respect to each Qualified Asset, including an operating statement for
      the
      quarter and year-to-date showing each variance from the budget line items in
      the
      Annual Budget portion of the Annual  Plan, and a narrative describing
      material changes in property operations, physical condition, capital
      expenditures and leasing and occupancy; and

     

    (iii)  so
      long
      as LMLP GP is the General Partner, such other reports, statements and
      information regarding the Partnership and Qualified Assets as Inland may
      reasonably request from time to time.

     

    Section
      4.3  Annual
      Reports.  The General Partner shall prepare and
      distribute to Inland within (x) forty-five (45) days after the end of each
      fiscal year draft unaudited financial statements with respect to the
      Partnership, and (y) within seventy-five (75) days after the end of each fiscal
      year audited financial statements with respect to the
      Partnership.  Such financial statements shall be prepared in
      accordance with generally accepted accounting principles, consistently applied,
      and shall be audited at the Partnership’s expense by such nationally recognized
      firm of independent certified public accountants approved by the Executive
      Committee as provided in Section 3.4 hereof.  All reports
      delivered pursuant to this Section 4.3 shall also include unaudited
      calculations in sufficient detail to verify the accuracy of all distributions
      paid by the Partnership.

     

    Section
      4.4  Accountants;
      Tax Returns.  The General Partner shall also engage such
      nationally recognized firm of independent certified public accountants approved
      by the Executive Committee as provided in Section 3.4 hereof to
      review, or to sign as preparer, all federal, state and local tax returns which
      the Partnership is required to file.  The General Partner will furnish
      to each Partner within one hundred twenty (120) days after the end of each
      calendar year, or as soon thereafter as is practicable, a Schedule K-1 or
      such other statement as is required by the Internal Revenue Service which sets
      forth such Partner’s share of the profits or losses and other relevant fiscal
      items of the Partnership for such fiscal year.  If requested by a
      Partner, the General Partner shall deliver to such Partner copies of any
      federal, state and local income tax returns and information returns which the
      Partnership is required to file.

     

    Section
      4.5  Accounting
      and Fiscal Year.  The General Partner shall keep the
      Partnership books and records on the accrual basis.  The fiscal year
      of the Partnership shall end on December 31.

     

    Section
      4.6  Partnership
      Funds.

     

    (a)  Generally.  The
      funds of the Partnership shall be deposited into such account or accounts as
      are
      designated by the General Partner.  All withdrawals from or charges
      against such accounts shall be made by the General Partner or by those Persons
      designated from time to time by the General Partner.

     

    (b)  Restrictions
      on Deposits.  Pending distribution or expenditure in accordance
      with the terms of this Agreement, funds of the Partnership may be invested,
      in
      the reasonable discretion of the General Partner, in United States government
      

     

    
      
         

      

      
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      obligations, insured obligations which are rated not lower than AA by
        Standard & Poor’s or have a comparable rating from a nationally recognized
        rating agency, collateralized bank time deposits, repurchase agreements,
        money
        market funds, commercial paper which is rated not lower than P-1, certificates
        of deposit which are rated not lower than AA by Standard & Poor’s or have a
        comparable rating from a nationally recognized rating agency, banker’s
        acceptances eligible for purchase by the Federal Reserve and bonds and other
        evidences of indebtedness and preferred stock which are rated not lower than
        AA
        by Standard & Poor’s or are of a comparable credit quality.

       

    

    Section
      4.7  Insurance.  The
      General Partner shall cause the tenant or tenants of each Qualified Asset to
      maintain insurance thereon of such types and in such amounts that are in
      accordance with the applicable lease.  Unless otherwise determined by
      Supermajority Vote of the Executive Committee, the General Partner shall cause
      the Partnership to obtain, at the Partnership’s expense, such types and amounts
      of insurance that the tenant or tenants of any Qualified Asset are not required
      to maintain and that are included within the insurance standards listed on
      Schedule 4.7 hereto, as may be revised from time to time by a
      Supermajority Vote of the Executive Committee.

     

    ARTICLE
      V
CONTRIBUTIONS

     

    Section
      5.1  Capital
      Contributions.

     

    (a)  Generally;
      Percentage Interests.  LMLP shall make an Initial Capital
      Contribution to the Partnership by contributing to the Partnership cash in
      an
      amount set forth on Schedule 1 hereto and Contributed Assets pursuant to
      the Contribution Agreement having a value set forth on Schedule 1 to the
      Contribution Agreement.  Inland shall make an Initial Capital
      Contribution to the Partnership by contributing to the Partnership cash in
      the
      amount set forth on Schedule 1 hereto; provided, that Inland shall
      receive a $250,000 credit to be applied to its Initial Capital Contribution
      (from the first amounts otherwise required to be contributed) as satisfaction
      of
      its underwriting fees in connection with the formation of the
      Partnership.  Except as provided in this Section 5.1,
      (i) no Partner shall be obligated to make any Additional Capital
      Contribution or Extraordinary Funding to the Partnership and (ii) any
      Additional Capital Contribution or Extraordinary Funding shall be made by the
      Partners in proportion to their respective Percentage Interests as determined
      at
      the time of the Capital Call or Extraordinary Call.  The Partners
      shall have the Percentage Interests in the Partnership set forth opposite each
      Partner’s name on Schedule 1 hereto.

     

    The
      aggregate Purchase Price for all of the Qualified Contribution Assets and
      Qualified Sale Assets shall be $940,000,000.00, subject to adjustment in
      accordance with the Contribution Agreement, the Purchase Agreement and the
      Letter Agreement.  Subject to the Contribution Agreement, the Purchase
      Agreement and the Letter Agreement, the Qualified Refi Assets shall all be
      acquired by the Partnership on the same date, which date shall be not after
      March 1, 2008.  Simultaneously with the acquisition of the Qualified
      Refi Assets, (i) Inland shall make an attendant Initial Capital Contribution
      in
      cash in an amount equal to the product of 0.85 multiplied by the difference
      between (x) the aggregate Purchase Price (as adjusted pursuant to the
      Contribution Agreement, Purchase Agreement and the Letter Agreement) of the
      Qualified 

     

    
      
         

      

      
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      Refi Assets and (y) the principal balance
        of any mortgage financing secured by the Qualified Refi Assets; and (ii)
        LMLP
        shall make an attendant Initial Capital Contribution in a combination of
        cash
        and Contributed Assets in an amount equal to the product of 0.15 multiplied
        by
        the sum of the aggregate Purchase Price (as adjusted in the Contribution
        Agreement, the Purchase Agreement and the Letter Agreement) of the Qualified
        Refi Assets less the principal balance of any mortgage financing secured
        by the
        Qualified Refi Assets.

       

    

    Subject
      to the Contribution Agreement, the Purchase Agreement and the Letter Agreement,
      the Qualified Assumed Assets shall be acquired by the Partnership, from time
      to
      time, prior to March 1, 2008.  Simultaneously with the acquisition of
      a Qualified Assumed Asset, (i) Inland shall make an attendant Initial Capital
      Contribution in cash in an amount equal to the product of 0.85 multiplied by
      the
      difference between (x) the Purchase Price (as adjusted pursuant to the Purchase
      Agreement and the Letter Agreement) of such Qualified Assumed Asset and (y)
      the
      principal balance of any mortgage financing secured by such Qualified Assumed
      Asset and the amount of Preferred Equity allocated to such Qualified Assumed
      Asset; and (i) LMLP shall make an attendant Initial Capital Contribution in
      cash
      in an amount equal to the product of 0.15 multiplied by the difference between
      the Purchase Price (as adjusted pursuant to the Purchase Agreement and the
      Letter Agreement) of such Qualified Assumed Asset less the principal balance
      of
      any mortgage financing secured by such Qualified Assumed Asset and the amount
      of
      Preferred Equity allocated to such Qualified Assumed Asset.

     

    In
      the
      event that the Qualified Refi Assets have been acquired by the Partnership
      and
      LMLP has made a Capital Contribution in excess of 15% of the aggregated Capital
      Contributions of the Partners, then the General Partner shall cause the amount
      of LMLP's Capital Contribution that is in excess of 15% of the aggregate Capital
      Contributions of the Partner’s to accrue and be reserved on the Partnership
      books as a credit toward satisfying LMLP's share of any future Capital Call
      and
      such credit shall be treated as if it were an actual capital contribution for
      purposes of determining corresponding allocations and
      distributions.

     

    Notwithstanding
      anything to the contrary, if (i) the acquisition of the Qualified Refi Assets
      does not take place prior to March 1, 2008, then the Partnership shall not
      be
      required to acquire any assets hereunder whatsoever and, at the election of
      any
      Partner the Partnership shall be dissolved in accordance with Article IX
      of hereof, or (ii) the weighted average interest rate on the mortgage financing
      to be secured by the Qualified Refi Assets is greater than 7.00% or is less
      than
      6.00%, then the Partnership shall not be required to acquire any assets
      hereunder whatsoever and, at the election of any Partner, the Partnership shall
      be dissolved in accordance with Article IX hereof.  No
      Qualified Assumed Asset shall be acquired by the Partnership (i) unless and
      until the Partnership has acquired all of the Qualified Refi Assets in
      accordance with the Purchase Agreement and the Contribution Agreement or (ii)
      after March 1, 2008.

     

    (b)  Additional
      Capital Contributions.  In the event the Partnership requires
      capital to acquire an Approved Qualified Asset during the Acquisition Period,
      the General Partner shall be entitled to require, by written notice to the
      Partners, an additional Capital Contribution (an “Additional Capital
      Contribution”) from the Partners in an amount not in excess of the
      amount necessary to acquire such Approved Qualified Asset plus all reasonable
      and customary costs and expenses incurred by the Partnership in connection
      

     

    
      
         

      

      
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      therewith; provided that (x) each Partner shall be required to
        contribute the amount determined by multiplying such Partner’s Percentage
        Interest by the amount of such Additional Capital Contribution and (y) no
        Partner shall be required to contribute the amount described in clause (x)
        above if such amount, when added to the total of all of such Partner’s prior
        Capital Contributions, exceeds such Partner’s Capital Commitment.  If
        the General Partner shall provide to the Partners a written notice calling
        for
        an Additional Capital Contribution (any such notice, a “Capital
        Call”) setting forth the total amount of such Additional Capital
        Contribution, the amount of each Partner’s share of such Additional Capital
        Contribution as determined pursuant to clause (x) above and the due date on
        which the General Partner is requiring that such Additional Capital Contribution
        be contributed to the Partnership, which due date shall be at least ten (10)
        Business Days after the date on which the Partners actually received the
        Capital
        Call and not more than one (1) Business Day prior to the scheduled closing
        of
        the acquisition of such Approved Qualified Asset; each Partner shall contribute
        its share of such Additional Capital Contribution in immediately available
        funds
        on or before such due date.  If the acquisition of an Approved
        Qualified Asset fails to close and the General Partner determines there will
        not
        be a closing within fifteen (15) days of the date of the originally scheduled
        closing, the General Partner (x) shall inform the Partners of such failure
        and return each Partner’s share of the Additional Capital Contribution made with
        respect thereto and (y) each Partner’s Capital Contribution shall be
        restored to the level thereof immediately prior to such Additional Capital
        Contribution.  If, at any time after the Partners have each
        contributed their entire Capital Commitment, the Partners elect to contribute
        additional capital, the Partners shall contribute such additional capital
        in
        accordance with their respective Percentage Interests.

       

    

    (c)  Extraordinary
      Fundings.  In the event the Partnership requires additional funds
      to cover any costs and expenses for which the Partnership has insufficient
      funds, including tenant improvements and capital expenditures, the General
      Partner may make a written request therefor (any such request, an
“Extraordinary Call”) setting forth the amount requested and
      the due date therefor, which due date shall be at least ten (10) Business Days
      after the date on which the Partners actually received the Extraordinary Call;
      provided that (i) any amount requested shall not exceed 5% of the
      Purchase Price of the Qualified Asset if such funds are to be used for a
      specific Qualified Asset or (ii) the aggregate of all amounts requested shall
      not exceed $20,000,000 if such funds are to be used for the Partnership
      generally (such amount, the “Extraordinary Call Cap”);
provided further that no Partner shall be required to contribute
      any
      capital to the Partnership in excess of such Partner’s Capital
      Commitment.  Each Partner shall be required to fund an amount equal to
      the amount determined by multiplying such Partner’s Percentage Interest by the
      amount set forth in such approved Extraordinary Call (each such Extraordinary
      Call required to be funded hereunder, an “Extraordinary
      Funding”).  Each Extraordinary Funding shall be made as a
      supplementary capital contribution by the Partners to the Partnership (any
      such
      contribution, an “Extraordinary Capital Contribution”). Each
      Partner shall contribute its share of such Extraordinary Capital Contribution
      in
      immediately available funds on or before the due date in the Extraordinary
      Call.

     

    (d)  Failure
      to Fund an Additional Capital Contribution or Extraordinary
      Funding.  If any Partner (a “Defaulting Partner”)
      fails to make any Additional Capital Contribution or Extraordinary Funding
      which
      it is required to make under this Section 5.1 by the due date
      therefor, then any non-defaulting Partner shall not be permitted to make such
      Additional Capital Contribution or Extraordinary Funding, but may, at its
      election, 

     

    
      
         

      

      
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      make a loan to the Partnership (a “Priority Loan”) in an
        amount equal to the amount that Additional Capital Contribution or Extraordinary
        Funding required.  Upon election to make a Priority Loan, (i) the
        non-defaulting Partner shall loan to the Partnership the amount of the
        Defaulting Partner’s share of the Additional Capital Contribution or
        Extraordinary Funding, as the case may be, as determined in accordance with
        Section 5.1(b) or Section 5.1(c), as the case may be, (ii) such Priority
        Loan
        shall bear interest at a rate of 18% per annum cumulative compounded from
        the
        date such Priority Loan is made, (iii) the Annual Budget portion of the Annual
        Plan shall be amended to reflect such Priority Loan, and (iv) such Priority
        Loan
        (including interest accrued thereon) shall be repaid from Net Cash Flow from
        Operations or Net Cash from Sales or Refinancing prior to any
        distribution.

       

    

    Section
      5.2  Preferred
      Equity Capital Contribution.  Upon the acquisition of a
      Preferred Equity Asset, LMLP shall make a Preferred Equity Capital Contribution
      in the amount determined by LMLP; subject to Section 3.8(a) hereof;
      provided that the aggregate Preferred Equity Capital Contribution shall not
      exceed $25,000,000.  The General Partner shall update Schedule
      5.2 hereto to reflect the Preferred Equity Capital Contribution and any
      repayment of Preferred Equity pursuant to Section 3.3(b) or Section
      7.1 hereof.  

     

    Section
      5.3  Return
      of Capital Contribution.  Except as otherwise expressly
      provided in this Agreement, (a) the Capital Contribution of a Partner will
      be returned to that Partner only in the manner and to the extent provided in
      Article VII and Article IX hereof and (b) no
      Partner shall have any right to demand or receive the return of its Capital
      Contribution.  In the event the Partnership is required or compelled
      to return any Capital Contribution, no Partner shall have the right to receive
      assets other than cash.  No Partner shall be entitled to interest on
      its Capital Contribution or Capital Account notwithstanding any disproportion
      therein as between the Partners.

     

    Section
      5.4  Liability
      of the Limited Partners.  No Limited Partner shall have
      any personal liability to the Partnership, to any Partner, to the creditors
      of
      the Partnership or to any other Person for any debt, liability or obligation
      of
      the Partnership.  No Limited Partner shall be required to contribute
      funds or capital to the Partnership in excess of its Capital Commitment although
      Limited Partners may at their option contribute funds in excess of their
      respective Capital Commitments pursuant to Section 5.1(c) and
Section 5.1(d) hereof.

     

    Section
      5.5  No
      Third Party Beneficiaries.  The foregoing provisions of
      this Article V are not intended to be for the benefit of any
      creditor of the Partnership or any other Person, and no creditor of the
      Partnership or any other Person may rely on the commitment of any Partner to
      make any Capital Contribution.  Additional Capital Contributions and
      Extraordinary Fundings are not payable unless and until the conditions set
      forth
      in Section 5.1 hereof have been satisfied, and no creditor of the
      Partnership or any other Person shall have, or be given, any right to cause
      a
      Capital Call or Extraordinary Call to be given by the General
      Partner.

     

    
      
         

      

      
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    ARTICLE
      VI
MAINTENANCE
      OF CAPITAL ACCOUNTS; 
ALLOCATION
      OF PROFITS AND LOSSES 
FOR
      BOOK AND TAX PURPOSES

     

    Section
      6.1  Capital
      Accounts.

     

    (a)  Generally:  Credits
      to Capital Accounts.  A Capital Account shall be established and
      maintained for each Partner.  Initially, the Capital Account of each
      Partner shall be credited with each Partner’s respective Initial Capital
      Contribution.  Thereafter, each Partner’s Capital Account shall be
      credited with any Additional Capital Contributions or Extraordinary Capital
      Contributions made or contributed by such Partner and such Partner’s allocable
      share of Profits, any individual items of income and gain allocated to such
      Partner pursuant to the provisions of this Article VI, and the
      amount of additional cash, or the Fair Market Value of any Partnership asset
      (net of any liabilities assumed by the Partnership and liabilities to which
      the
      asset is subject), contributed to the Partnership by such Partner or deemed
      contributed to the Partnership by such Partner in accordance with Regulations
      Section 1.704-1(b)(2)(iv)(c).

     

    (b)  Debits
      to Capital Account.  The Capital Account of each Partner shall be
      debited with the Partner’s allocable share of Losses, any individual items of
      expenses and loss allocated to such Partner pursuant to the provisions of this
      Article VI, the amount of any cash distributed to such Partner and
      the Fair Market Value of any Partnership asset (net of any liabilities assumed
      by the Partner and liabilities to which the asset is subject) distributed to
      such Partner or deemed distributed to such Partner in accordance with
      Regulations Section 1.704-1(b)(2)(iv)(c).

     

    (c)  Capital
      Account of Transferee.  In the event that any Percentage Interest
      of a Partner is transferred in accordance with the terms of this Agreement,
      the
      transferee shall succeed to the Capital Account of the transferor to the extent
      it relates to the transferred Percentage Interest in such Partner.

     

    (d)  Adjustments
      of Book Value.  In the event that the Book Value of any
      Partnership asset is adjusted as described in the definition of “Book Value”,
      the Capital Accounts of all Partners shall be adjusted in accordance with
      Regulation Section 1.704-1(b)(2)(iv)(f) or Regulation
      Section 1.704-1(b)(2)(iv)(m), as applicable, to reflect such
      adjustment.

     

    (e)  Compliance
      with Regulations.  The foregoing provisions and the other
      provisions of this Agreement relating to the maintenance of Capital Accounts
      are
      intended to comply with Regulation Section 1.704-1(b) and shall be
      interpreted and applied in a manner consistent with such
      Regulation.  In the event that the General Partner shall determine
      that it is prudent to modify the manner in which the Capital Accounts, or any
      debits or credits thereto, are computed in order to comply with such Regulation,
      the General Partner may make such modification; provided, however, that if
      such
      modification constitutes a Material Modification, it shall become effective
      only
      upon the consent of any Partner to whom such modification would constitute
      a
      Material Modification.

     

    
      
         

      

      
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    Section
      6.2  Profits
      and Losses.

     

    (a)  Allocation.  For
      each Partnership taxable year or portion thereof, Profit and Loss shall be
      allocated (after all allocations pursuant to Section 6.3 hereof have been
      made) in such a manner so as to cause the Partially Adjusted Capital Accounts
      of
      the Partners to equal, as nearly as possible, their respective Target
      Accounts.

     

    (b)  Adjustments
      to “Profits” and “Losses”.  When used in this Agreement,
“Profits” and “Losses” shall mean, for each
      fiscal year or other period, an amount equal to the Partnership’s taxable income
      or loss for such year or period, determined in accordance with Code
      Section 703(a) (for this purpose, all items of income, gain, loss or
      deduction required to be stated separately pursuant to Code
      Section 703(a)(1) shall be included in taxable income or loss), and
      otherwise in accordance with the methods of accounting followed by the
      Partnership for federal income tax purposes, with the following
      adjustments:

     

    (i)  any
      income of the Partnership that is exempt from federal income tax and not
      otherwise taken into account in computing Profits or Losses shall be added
      to
      such taxable income or loss;

     

    (ii)  any
      items
      that are specially allocated pursuant to this Agreement shall not be taken
      into
      account in computing Profits or Losses;

     

    (iii)  any
      expenditure of the Partnership described in Section 705(a)(2)(B) of the
      Code (or treated as such under Regulation Section 1.704-1(b)(2)(iv)(i)) and
      not otherwise taken into account in computing Profits or Losses pursuant to
      this
      Definition shall be deducted from such taxable income or loss;

     

    (iv)  any
      depreciation, amortization and/or cost recovery deductions with respect to
      any
      asset shall be deemed to be equal to the Book Depreciation available with
      respect to such asset;

     

    (v)  the
      computation of all items of income, gain, loss and deduction shall be made
      without regard to any basis adjustment under Section 743 of the
      Code;

     

    (vi)  in
      the
      event the Book Value of any Partnership asset is adjusted pursuant to the
      definition of Book Value, the amount of such adjustment shall be taken into
      account as gain or loss from the disposition of such asset for purposes of
      computing Profits or Losses; and

     

    (vii)  gain
      or
      loss resulting from any disposition of assets with respect to which gain or
      loss
      is recognized for federal income tax purposes shall be computed by reference
      to
      the Book Value of the asset disposed of, notwithstanding that the adjusted
      tax
      basis of such asset differs from its Book Value.

     

    Section
      6.3  Regulatory
      Allocations.

     

    (a)  Minimum
      Gain Chargeback.  If there is a net decrease in Partnership
      Minimum Gain during any fiscal year, each Partner shall be specially allocated
      items 

     

    
      
         

      

      
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      of Partnership income and gain for such fiscal year (and, if necessary,
        subsequent fiscal years) in an amount equal to such Partner’s share of the net
        decrease in Partnership Minimum Gain, as determined under Regulations
        Section 1.704-2(g).  Allocations pursuant to the previous
        sentence shall be made in proportion to the respective amounts required to
        be
        allocated to each Partner pursuant thereto.  The items to be so
        allocated shall be determined in accordance with Regulations Sections
        1.704-2(f)(6) and 1.704-2(j)(2).  This Section 6.3(a) is
        intended to comply with the “minimum gain chargeback” requirements of
        Regulations Section 1.704-2(f) and shall be interpreted consistently
        therewith.

       

    

    (b)  Chargeback
      Attributable to Partner Nonrecourse Debt.  If there is a net
      decrease in Partner Nonrecourse Debt Minimum Gain during any fiscal year
      attributable to a Partner Nonrecourse Debt, each Partner with a share of Partner
      Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt
      at
      the beginning of such year shall be specially allocated items of income and
      gain
      for such fiscal year (and, if necessary, for subsequent fiscal years) in an
      amount equal to such Partner’s share of the net decrease in Partner Nonrecourse
      Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined
      in
      accordance with Regulations Section 1.704-2(i)(4) and
      (5).  Allocations pursuant to the previous sentence shall be made in
      proportion to the respective amounts required to be allocated to each Partner
      pursuant thereto.  The items to be so allocated shall be determined in
      accordance with Regulations Sections 1.704-2(i)(4) and
      1.704-2(j)(2).  This Section 6.3(b) is intended to comply
      with the “minimum gain chargeback” requirements of Regulations
      Section 1.704-2(i)(4) and shall be interpreted consistently
      therewith.

     

    (c)  Qualified
      Income Offset.  If any Partner unexpectedly receives any
      adjustment, allocation or distribution described in Regulations
      Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) which results in or increases
      an Adjusted Capital Account Deficit for the Partner, such Partner shall be
      allocated items of income and book gain in an amount and manner sufficient
      to
      eliminate such Adjusted Capital Account Deficit or increase therein as quickly
      as possible; provided, that an allocation pursuant to this
Section 6.3(c) shall be made if and only to the extent that such
      Partner would have an Adjusted Capital Account Deficit after all other
      allocations provided in this Article VI have been tentatively made
      as if this Section 6.3(c) were not in the Agreement.  This
Section 6.3(c) is intended to constitute a “qualified income offset”
as provided by Regulations Section 1.704-1(b)(2)(ii)(d) and shall be
      interpreted consistently therewith.

     

    (d)  Partner
      Nonrecourse Deductions.  Items of Partnership loss, deduction or
      Section 705(a)(2)(B) expenditures that are attributable to a Partner
      Nonrecourse Debt (“Partner Nonrecourse Deductions”) shall be
      allocated among the Partners who bear the Economic Risk of Loss for such Partner
      Nonrecourse Debt in the ratio in which they share Economic Risk of Loss for
      such
      Partner Nonrecourse Debt.  This provision is to be interpreted in a
      manner consistent with the requirements of Regulations
      Section 1.704-2(b)(4) and (i)(1).

     

    (e)  Limitation
      on Allocation of Net Loss.  To the extent any allocation of Losses
      or other items of loss or deduction would cause or increase an Adjusted Capital
      Account Deficit as to any Partner, such allocation shall be reallocated among
      the other Partners in accordance with their respective Percentage Interests,
      subject to the limitations hereof.

     

    
      
         

      

      
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    (f)  Curative
      Allocation.  The allocations set forth in this
Section 6.3 (the “Regulatory Allocations”) are
      intended to comply with certain requirements of the applicable Regulations
      promulgated under Code Section 704(b).  Notwithstanding any other
      provision of this Article VI, the Regulatory Allocations shall be
      taken into account in allocating other operating Profits, Losses and other
      items
      of income, gain, loss and deduction to the Partners for Capital Account purposes
      so that, to the extent possible, the net amount of such allocations of Profits,
      Losses and other items shall be equal to the amount that would have been
      allocated to each Partner if the Regulatory Allocations had not
      occurred.

     

    Section
      6.4  Allocation
      of Tax Items for Tax Purposes.

     

    (a)  Generally.  Subject
      to Sections 1.704-1(b)(4)(i) and 1.704-1(b)(2)(iv)(m) of the Regulations and
      except as otherwise provided in this Article VI, allocations of income,
      gain, loss, deduction and credit for federal, state and local tax purposes
      shall
      be allocated to the Partners in the same manner and amounts as the book items
      corresponding to such tax items are allocated for Capital Account
      purposes.

     

    (b)  Recapture
      Income.  Notwithstanding Section 6.4(a) hereof, if
      there is a gain on any sale, exchange or other disposition of Partnership assets
      and all or a portion of such gain is characterized as ordinary income by virtue
      of the recapture rules of Code Section 1245 or 1250, or under the
      corresponding recapture rules of state or local income tax law, as the case
      may
      be, then, to the extent possible, such recapture income for United States and
      state and local tax purposes shall be allocated to the Partners in the ratio
      that they were allocated Tax Depreciation previously taken and allowed with
      respect to the Partnership assets being sold or otherwise disposed
      of.

     

    (c)  Section 754
      Adjustments.  Notwithstanding Section 6.4(a) hereof,
      any increase or decrease in the amount of any items of income, gain, loss,
      deduction or credit for tax purposes attributable to an adjustment to the basis
      of Partnership assets made pursuant to a valid election or deemed election
      under
      Sections 732(d), 734, 743, and 754 of the Code, and any increase or decrease
      in
      the amount of any item of credit or tax preference attributable to any such
      adjustment, shall be allocated to those Partners entitled thereto under such
      law.  Such items shall be excluded in determining the Capital Accounts
      of the Partners, except as otherwise provided by
      Section 1.704-1(b)(2)(iv)(m) of the Regulations.

     

    (d)  Nonrecourse
      Deductions.  Any “Nonrecourse Deductions” as defined in Treasury
      Regulations Section 1.704-2(c) for any fiscal year or other period shall be
      specially allocated as items of loss in the manner provided in Treasury
      Regulations Section 1.704-2(j)(1)(ii).  Depreciation deductions
      shall be treated as Nonrecourse Deductions with respect to a property only
      to
      the extent that such deductions reduce the property’s tax basis below the amount
      of the Nonrecourse Liability encumbering the property.

     

    (e)  Sharing
      of Excess Nonrecourse Liabilities.  For purposes of
      Section 1.752-3(a)(3) of the Regulations, the excess Nonrecourse
      Liabilities of the Partnership shall be allocated one hundred (100%) percent
      to
      LMLP.  In the event it is determined that Inland would be allocated
      less than its proportionate share of depreciation in any year as a result

     

    
      
         

      

      
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      of the allocation of liabilities to LMLP, the Partners agree to reallocate
        the liabilities in accordance with Percentage Interests.

       

    

    (f)  Section 704(c).  Notwithstanding
      Section 6.4 hereof, if the Partnership owns or acquires
      Section 704(c) Property, or if the Tax Matters Partner makes an election
      referred to in the definition of “Book Value” herein, then, solely for tax
      purposes and not for Capital Account purposes, Tax Depreciation, and any gain
      or
      loss, attributable to such Section 704(c) Property shall be allocated
      between or among the Partners in a manner that takes into account the variation
      between such Book Value and such adjusted tax basis, using the traditional
      method of allocation, in accordance with the principles of Code
      Section 704(c) and the Regulations promulgated thereunder and such method
      set forth in Regulations Section 1.704-3(b).

     

    Section
      6.5  Tax
      Matters Partner.  The General Partner is hereby
      designated as the “tax matters partner” for the Partnership as such term is
      defined in Section 6231(a)(7) of the Code (the “Tax Matters
      Partner”), and all federal, state and local tax audits and litigation
      shall be conducted under the direction of the General Partner.  All
      expenses incurred with respect to any tax matter which does or may affect the
      Partnership, including but not limited to expenses incurred in connection with
      Partnership level administrative or judicial tax proceedings, shall be paid
      out
      of Partnership assets, whether or not included in an Annual Plan.  The
      Tax Matters Partner shall, promptly upon receipt thereof, forward to each
      Partner a copy of any correspondence relating to the Partnership received from
      the Internal Revenue Service or any other tax authority which relates to matters
      that are of material importance to the Partnership and/or the
      Partners.  The Tax Matters Partner shall promptly advise each Partner
      in writing of the substance of any material conversation held with any
      representative of the Internal Revenue Service which relates to an audit or
      administrative proceeding relating to a tax return of the
      Partnership.  

     

    Section
      6.6  Adjustments.

     

    (a)  Generally.  Except
      as otherwise provided in this Agreement, all items of Partnership income, gain,
      loss and deduction and any other allocations not otherwise provided for shall
      be
      divided among the Partners in the same proportions as they share Profits and
      Losses, as the case may be, for the year.

     

    (b)  Upon
      Transfer or Change in Percentage Interest.   If any
      Percentage Interest is transferred in any fiscal year in accordance with this
      Agreement, or if a Partner’s Percentage Interest changes during any fiscal year,
      all Profits and Losses attributable to such Percentage Interest for such fiscal
      year shall be divided and allocated in accordance with an interim closing of
      the
      books as of the date of a transfer or change.

     

    (c)  Amendments
      to this Article VI.  The General Partner is specifically
      authorized by each Partner, upon the advice of the accountants or legal counsel
      for the Partnership, to amend this Article VI to comply with any
      Regulations with respect to the distributions and allocations of the Partnership
      and any such amendment shall become effective; provided, however, that if
      such amendment constitutes a Material Modification for any Partner,

    
      
         

      

      
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      then such amendment shall become effective only upon the express written
        consent of such Partner.

    

     

    ARTICLE
      VII
DISTRIBUTIONS

     

    Section
      7.1  Cash
      Available for Distributions.

     

    (a)  Generally.  Notwithstanding
      anything herein to the contrary, no distribution shall be made until all
      Priority Loans are paid in full.

     

    (i)  Following
      (x) the satisfaction of accrued and unpaid interest on Priority Loans, in
      proportion to the outstanding Priority Loans, if any, and (y) the satisfaction
      of outstanding principal balances on Priority Loans, in proportion to the
      outstanding Priority Loans, if any, the General Partner shall cause the
      Partnership to distribute all Net Cash Flow from Operations quarterly on the
      15th of
      January, April, July and October, as follows:

     

    (A)  first,
      to
      LMLP in an amount equal to the Preferred Equity Return;

     

    (B)  second,
      to Inland until such time as Inland has received cumulative distributions in
      an
      amount sufficient to achieve a 9% Cash-On-Cash Return (“Inland Priority
      Return”);

     

    (C)  third,
      to
      LMLP, until such time as LMLP has received cumulative distributions in an amount
      sufficient to achieve a 9% Cash-On-Cash Return (“LMLP Priority
      Return”);

     

    (D)  fourth,
      to Inland until all Capital Contributions made by Inland have been returned
      (for
      the purposes of this Section 7.1(a)(i)(D), Capital Contributions shall
      include Acquisition Fees (if any) paid by Inland);

     

    (E)  fifth,
      to
      LMLP until all Capital Contributions made by LMLP or credited on LMLP’s behalf
      have been returned (for the purposes of this Section 7.1(a)(i)(E),
      Capital Contributions shall include 17.65% of the amount of the Acquisition
      Fees
      (if any) paid by Inland); and

     

    (F)  thereafter,
      (x) so long as LMLP GP is the General Partner, (1) 65% to Inland and (2) 35%
      to
      LMLP, or (y) so long as LMLP GP is no longer the General Partner, (2) 85% to
      Inland and (2) 15% to LMLP.

     

    (ii)  Following
      (w) the satisfaction of accrued and unpaid interest on Priority Loans, in
      proportion to the outstanding Priority Loans, if any, and (x) the satisfaction
      of outstanding principal balances on Priority Loans, in proportion to the
      outstanding Priority Loans, if any, the General Partner shall cause the
      Partnership to distribute Net Cash from Sales and Financings as soon as
      practicable after the receipt of such Net Cash from Sales or Refinancings,
      as
      follows:

     

    
      
         

      

      
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    (A)  first,
      in
      the case of Net Cash from Sales and Financings related to a Preferred Equity
      Asset, to LMLP in an amount equal to the Preferred Equity allocated to such
      Preferred Equity Asset, together with any accrued and unpaid Preferred Equity
      Return in respect of such allocated Preferred Equity;

     

    (B)  second,
      to Inland to the extent of any unpaid Inland Priority Return;

     

    (C)  third,
      to
      LMLP to the extent of any unpaid LMLP Priority Return;

     

    (D)  fourth,
      to Inland until all Capital Contributions made by Inland have been returned
      (solely for the purposes of this Section 7.1(a)(i)(D), Capital Contributions
      shall include Acquisition Fees (if any) paid by Inland);

     

    (E)  fifth,
      to
      LMLP until all Capital Contributions made by LMLP or credited on LMLP’s behalf
      have been returned (solely for the purposes of this Section 7.1(a)(i)(E),
      Capital Contributions shall include 17.65% of the amount of the Acquisition
      Fees
      (if any) paid by Inland); and

     

    (F)  thereafter,
      (x) so long as LMLP GP is the General Partner, (1) 65% to Inland and (2) 35%
      to
      LMLP, or (y) so long as LMLP GP is no longer the General Partner, (2) 85% to
      Inland and (2) 15% to LMLP.

     

    (iii)  In
      the
      event the Partnership fails to (i) make a distribution to LMLP in an amount
      equal to the Preferred Equity Return for such quarter when such distribution
      is
      required to be made hereunder or (ii) repay any allocated portion of the
      Preferred Equity when such repayment is required hereunder, and such failure
      remains uncured for 10 days following such event, then LMLP shall be entitled
      to
      the Enhanced Preferred Equity Return following such date unless and until such
      failure is cured.

     

    (iv)  Distributable
      Cash shall not be used to acquire Qualified Assets or make capital improvements
      on Qualified Assets unless approved in accordance with Section 3.4
      hereof.

     

    (b)  Withholdings.  The
      General Partner is authorized to withhold from distributions or allocations
      to
      any Partner (or, in the event there are insufficient funds, require such Partner
      to contribute to the Partnership) and to pay over to any federal, state or
      local
      government any amounts required to be withheld pursuant to the Code or any
      provisions of any other federal, state or local law with respect to any payment,
      distribution or allocation to the Partnership or such Partner and shall allocate
      any such amounts to such Partner with respect to which such amount was withheld.
      All amounts so withheld (including such amounts contributed by the Partner)
      shall be treated as amounts distributed to such Partner, and will reduce the
      amount otherwise distributable to such Partner, pursuant to this
Article VII for all purposes under this Agreement.

     

    (c)  Restrictions
      on Distributions.  Notwithstanding anything to the contrary
      contained in this Section 7.1, the Partnership shall not make a
      distribution to the 

    
      
         

      

      
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      extent that, at the time of such distribution and after giving effect
        to
        such distribution, all liabilities of the Partnership (other than liabilities
        to
        the Partners on account of their Capital Contributions or liabilities for
        which
        the recourse of creditors is limited to specific assets of the Partnership)
        shall exceed the Fair Market Value of the Partnership assets, except that
        the
        Fair Market Value of Qualified Asset that is subject to a liability for which
        the recourse of the creditors is limited shall be included in the Partnership
        assets only to the extent that the Fair Market Value of such Qualified Asset
        exceeds that liability.

    

     

    ARTICLE
      VIII
TRANSFER;
      REMOVAL OF GENERAL PARTNER

     

    Section
      8.1  Prohibition
      on Transfers and Withdrawals by Partners.  

     

    (a)  The
      Partners shall be prohibited from, directly or indirectly, transferring,
      assigning, pledging or hypothecating their respective interests (or any part
      of
      such interests) in the Partnership and any attempted transfer shall be void
      ab
      initio; provided, that the following transfers shall be permitted:

     

    (i)  assignments
      of a Partner’s interest in the Partnership (but only its entire interest) to an
      Affiliate of such Partner, but only upon fifteen (15) days written notice to
      the
      other Partners;

     

    (ii)  transfers
      up to 49% of the ownership interests in a Partner, so long as the management
      of
      such Partner immediately prior to such transfer possesses, directly or
      indirectly, the power to direct or cause the direction of the management or
      policies of such Partner following such transfer, whether through the ability
      to
      exercise voting power, by contract or otherwise;

     

    (iii)  transfers
      by inheritance, devise, bequest or by operation of law upon the death of a
      natural person; and

     

    (iv)  sales,
      transfers or issuance of shares of capital stock in LXP and securities
      convertible into capital stock in LXP, provided a class of capital stock in
      LXP
      is listed on a nationally recognized stock exchange or market.

     

    (b)  Except
      as
      provided in this Section 8.1 and in Section
      8.2,Section 11.1 and Section 11.2 hereof, the
      Partners shall be prohibited from withdrawing from the
      Partnership.  If any Partner withdraws from the Partnership, it shall
      be and remain liable for all obligations and liabilities incurred by it as
      a
      Partner, and shall be liable to the Partnership and the other Partners for
      all
      indemnifications set forth herein and for any liabilities, losses, claims,
      damages, costs and expenses (including reasonable attorneys’ fees) incurred by
      the Partnership as a result of any withdrawal in breach of this
      Agreement.

     

    Section
      8.2  Removal
      of LMLP GP as General Partner.  Upon a Removal Event,
      Inland shall have the right to remove the General Partner for a period of sixty
      (60) days following the occurrence of a Removal Event, and if such right is
      timely exercised, Inland shall have the right to appoint either Inland or an
      Affiliate of Inland as the new 

     

    
      
         

      

      
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      General Partner.  Such removal of LMLP GP shall be effective ten
        (10) Business Days after receipt by LMLP GP of written notice from
        Inland.  Upon such removal, notwithstanding anything in this Agreement
        or the Management Agreement to the contrary, (a) LMLP GP shall cease to be
        a
        general partner and a partner of the Partnership; (b) two of the three members
        of the Executive Committee appointed by LMLP shall be removed and replacements
        shall be appointed by Inland; (c) the Management Agreement shall terminate;
        and
        (d) either Inland or one of its Affiliates shall be appointed the General
        Partner of the Partnership and this Agreement shall be amended to reflect
        such
        appointment.  

       

    

    ARTICLE
      IX
TERMINATION

     

    Section
      9.1  Dissolution.  The
      Partnership shall dissolve and commence winding up and liquidating upon the
      first to occur of any of the following (collectively, the “Liquidating
      Events”):

     

    (i)  the
      reduction to cash or cash equivalents (other than purchase money notes obtained
      by the Partnership from the sale of Qualified Asset) of the last remaining
      Qualified Asset;

     

    (ii)  the
      agreement in writing by the Partners to dissolve the Partnership;

     

    (iii)  the
      entry
      of a decree of judicial dissolution of the Partnership pursuant to
      Section 17-802 of the Act;

     

    (iv)  the
      election of any Partner to dissolve the Partnership on the seventh anniversary
      of the date first set forth above or any anniversary thereafter;

     

    (v)  all
      of
      the Qualified Assets have been sold to LMLP, or its designees, or to Inland,
      or
      its designees, pursuant to the exercise of the Buy/Sell as provided in
Section 11.2 hereof;

     

    (vi)  the
      Bankruptcy of any LMLP Partner or Inland;

     

    (vii)  the
      election of LMLP to dissolve the Partnership after (A) LMLP GP is no longer
      the
      General Partner and (B) a breach by Inland or the General Partner of (x)
Articles VI or VII hereof, which remains uncured for thirty (30)
      days following receipt of notice of such breach from LMLP, or (y) Section
      12.19 hereof.

     

    (viii)  the
      election of Inland to dissolve the Partnership after the removal of LMLP GP
      as
      the General Partner upon a Removal Event.

     

    Section
      9.2  Termination.  In
      all cases of dissolution of the Partnership, the business of the Partnership
      shall be wound up and the Partnership terminated as promptly as practicable
      thereafter, and each of the following shall be accomplished:

     

    
      
         

      

      
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    (i)  The
      Liquidator shall cause to be prepared a statement setting forth the assets
      and
      liabilities of the Partnership as of the date of dissolution, a copy of which
      statement shall be furnished to each Partner;

     

    (ii)  The
      Qualified Assets and assets of the Partnership shall be liquidated by the
      Liquidator as promptly as possible, but in an orderly and businesslike and
      commercially reasonable manner, consistent with maximizing the price to be
      received.  The Liquidator in its reasonable discretion shall determine
      whether to sell any Qualified Asset at a public or private sale, for such price
      and on such terms as the Liquidator shall determine in its sole
      discretion.  The Liquidator may, in the exercise of its good faith
      business judgment and if commercially reasonable, determine not to sell a
      portion of the Qualified Assets and assets of the Partnership, in which event
      such Qualified Assets and assets shall be distributed in kind pursuant to clause
      (iv) below;

     

    (iii)  Any
      Profit or Loss realized by the Partnership upon the sale or other disposition
      of
      its assets pursuant to Section 9.2(ii) above shall be allocated to
      the Partners as required by Article VI hereof; and

     

    (iv)  The
      proceeds of sale and all other assets of the Partnership shall be applied and
      distributed as follows and in the following order of priority:

     

    (A)  To
      the
      payment of the debts and liabilities of the Partnership and the expenses of
      Liquidation;

     

    (B)  To
      the
      setting up of any reserves which the Liquidator shall reasonably determine
      to be
      necessary for contingent, unliquidated or unforeseen liabilities or obligations
      of the Partnership or the Partners arising out of or in connection with the
      Partnership.  Such reserves may, in the discretion of the Liquidator,
      be paid over to a national bank or national title company selected by it and
      authorized to conduct business as an escrowee to be held by such bank or title
      company as escrowee for the purposes of disbursing such reserves to satisfy
      the
      liabilities and obligations described above, and at the expiration of such
      period as the Liquidator may reasonably deem advisable, distribute any remaining
      balance in the manner set forth below; and

     

    (C)  The
      balance, if any, to the Partners in accordance with Sections 7.1(a)(ii) and
      (iii) hereof.

     

    No
      payment or distribution in any of the foregoing categories shall be made until
      all payments in each prior category shall have been made in full.  If
      the payments due to be made in any of the foregoing categories exceed the
      remaining assets available for such purpose, such payment shall be made to
      the
      Persons entitled to receive the same prorata in accordance with
      the respective amount due them.

     

    Payments
      described in clause (iv) above must be made in cash.  The
      Partners shall continue to share profits, losses and other tax items during
      the
      period of liquidation in the same proportions as before
      dissolution.

     

    
      
         

      

      
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    Section
      9.3  Certificate
      of Cancellation.  Upon completion of the distribution of
      the Partnership’s assets as provided in this Article IX and the
      completion of the winding-up of the affairs of the Partnership, the Partnership
      shall be terminated, and the Liquidator shall cause the filing of a certificate
      of cancellation of the certificate of limited partnership in the office of
      the
      Secretary of State of the State of Delaware in accordance with the Act and
      shall
      take all such other actions as may be necessary to terminate the Partnership
      in
      accordance with the Act and shall take such other actions as may be necessary
      to
      terminate the Partnership’s registration in any other jurisdictions where the
      Partnership is registered or qualified to do business.

     

    Section
      9.4  Acts
      in Furtherance of Liquidation.  Each Partner or former
      Partner, upon the request of the Liquidator, shall promptly execute, acknowledge
      and deliver all documents and other instruments as the Liquidator shall
      reasonably request to effectuate the proper dissolution and termination of
      the
      Partnership, including the winding up of the business of the
      Partnership.

     

    ARTICLE
      X
REPRESENTATIONS
      OF THE PARTNERS

     

    Section
      10.1  Representations
      of Inland.  Inland hereby represents and warrants to the
      LMLP Partners and the Partnership as follows:

     

    (i)  this
      Agreement constitutes the valid and binding agreement of Inland, enforceable
      against Inland in accordance with its terms, subject as to enforcement of
      bankruptcy, insolvency and other similar laws affecting the rights of creditors
      and to general principles of equity;

     

    (ii)  Inland
      has been duly formed and is validly existing as a limited liability company
      in
      good standing under the laws of the State of Delaware, with all requisite power
      and authority to enter into this Agreement, to carry out the provisions and
      conditions hereof and to perform all acts necessary or appropriate to consummate
      all of the transactions contemplated hereby;

     

    (iii)  Inland
      has all requisite power and authority to enter into this Agreement, to carry
      out
      the provisions and conditions hereof and to perform all acts necessary or
      appropriate to consummate all of the transactions contemplated hereby and no
      further action by Inland is necessary to authorize the execution or delivery
      of
      this Agreement;

     

    (iv)  this
      Agreement has been duly and validly executed and delivered by Inland and the
      execution, delivery and performance hereof by Inland does not and will not
      (i) require the approval of any other Person, or (ii) contravene or
      result in any breach of or constitute any default under, or result in the
      creation of any lien upon Inland’s assets under, any indenture, mortgage, loan
      agreement, lease or other agreement or instrument to which Inland is a party
      or
      by which Inland or any of its assets is bound;

     

    (v)  the
      formation of the Partnership does not and the consummation of the transactions
      contemplated herein will not result in any violation of the organizational
      documents of Inland;

     

    
      
         

      

      
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    (vi)  Inland
      has the financial capacity to perform its obligations under this
      Agreement;

     

    (vii)  no
      finder’s, broker’s or similar fee or commission has been paid or shall be paid
      by Inland to any individual or organization in connection with the formation
      of
      the Partnership; provided, however, that Inland may pay fees to related
      parties;

     

    (viii)  there
      is
      no action, suit or proceeding pending or, to its knowledge, threatened against
      Inland that questions the validity or enforceability of this Agreement or,
      if
      determined adversely to it, would materially adversely affect the ability of
      Inland to perform its obligations hereunder;

     

    (ix)  Inland
      is
      not the subject of any Bankruptcy;

     

    (x)  to
      Inland’s knowledge, Inland has not received from any governmental agency any
      notice of violation of any law, statute or regulation which would have a
      material adverse effect on the Partnership;

     

    (xi)  to
      Inland’s knowledge, Inland is not in default in the performance or observation
      of any obligation under any agreement or instrument to which it is a party
      or by
      which it or any of its assets is bound, which default would individually or
      in
      the aggregate with other defaults materially adversely affect the business
      or
      financial condition of Inland or the Partnership; and

     

    (xii)  Inland
      (which for the purposes of this Section 10.2(x) includes its partners, members,
      principal stockholders owning more than ten percent (10%) of the outstanding
      capital stock of Inland, and any other constituent entities) (1) has not been
      designated as a “specifically designated national and blocked person” on the
      most current list published by the U.S. Treasury Department Office of Foreign
      Assets Control at its official website,
http://www.treas.gove/ofac/t11sdn.pdf or at any replacement website or
      other replacement official publication of such list, and (2) is currently in
      compliance with the regulations of the Office of Foreign Asset Control of the
      Department of the Treasury and any statute, executive order (including the
      September 24, 2001, Executive Order Blocking Property and Prohibiting
      Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism),
      or other governmental action relating thereto.

     

    Section
      10.2  Representations
      of the LMLP Partners.  Each LMLP Partner represents and
      warrants to Inland and the Partnership as follows:

     

    (i)  this
      Agreement constitutes the valid and binding agreement of such LMLP Partner
      enforceable against such LMLP Partner in accordance with its terms, subject
      as
      to enforcement to bankruptcy, insolvency and other similar laws affecting the
      rights of creditors and to general principles of equity;

     

    (ii)  LMLP
      has
      been duly formed and is validly existing as a limited partnership in good
      standing under the laws of the State of Delaware, with all requisite power
      and
      authority to enter into this Agreement, to carry out the provisions and
      conditions 

     

    
      
         

      

      
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      hereof and to perform all acts necessary or appropriate to consummate
        all
        of the transactions contemplated hereby;

       

    

    (iii)  LMLP
      GP
      has been duly formed and is validly existing as a limited liability company
      in
      good standing under the laws of the State of Delaware, with all requisite power
      and authority to enter into this Agreement, to carry out the provisions and
      conditions hereof and to perform all acts necessary or appropriate to consummate
      all of the transactions contemplated hereby;

     

    (iv)  such
      LMLP
      Partner has all requisite power and authority to enter into this Agreement,
      to
      carry out the provisions and conditions hereof and to perform all acts necessary
      or appropriate to consummate all of the transactions contemplated hereby and
      no
      further action by such LMLP Partner is necessary to authorize the execution
      or
      delivery of this Agreement;

     

    (v)  this
      Agreement has been duly and validly executed and delivered by such LMLP Partner
      and the execution, delivery and performance hereof by such LMLP Partner does
      not
      and will not (x) require the approval of any other Person or
      (y) contravene or result in any breach of or constitute any default under,
      or result in the creation of any lien upon such LMLP Partner’s assets under, any
      indenture, mortgage, loan agreement, lease or other agreement or instrument
      to
      which such LMLP Partner or any LMLP Affiliated Party is a party or by which
      such
      LMLP Partner or any of its assets is bound;

     

    (vi)  to
      such
      LMLP Partner’s knowledge, such LMLP Partner is not in default in the performance
      or observation of any obligation under any agreement or instrument to which
      it
      is a party or by which it or any of its assets is bound, which default would
      individually or in the aggregate with other defaults materially adversely affect
      the business or financial condition of such LMLP Partner or the
      Partnership;

     

    (vii)  the
      formation of the Partnership does not and the consummation of the transactions
      contemplated herein will not result in any violation of the organizational
      documents of such LMLP Partner;

     

    (viii)  no
      finder’s, broker’s or similar fee or commission has been paid or shall be paid
      to any individual or organization in connection with the formation of the
      Partnership except for fees payable to Wachovia Capital Markets, LLC, which
      shall be paid by LMLP and not the Partnership;

     

    (ix)  there
      is
      no action, suit or proceeding pending or, to its knowledge, threatened against
      such LMLP Partner that questions the validity or enforceability of this
      Agreement or, if determined adversely to it, would materially adversely affect
      the ability of such LMLP Partner to perform its obligations
      hereunder;

     

    (x)  such
      LMLP
      Partner is not the subject of any Bankruptcy;

     

    (xi)  to
      such
      LMLP Partner’s knowledge, such LMLP Partner has not received from any
      governmental agency any notice of violation of any law, 

     

    
      
         

      

      
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      statute or regulation which would have a material adverse effect on the
        financial condition of such LMLP Partner or of the Partnership;

       

    

    (xii)  each
      LMLP
      Partner has the financial capacity to perform its obligations under this
      Agreement; and

     

    (xiii)  each
      LMLP
      Partner (which for the purposes of this Section 10.2(x) includes its partners,
      members, principal stockholders owning more than ten percent (10%) of the
      outstanding capital stock of such LMLP Partner, and any other constituent
      entities) (1) has not been designated as a “specifically designated national and
      blocked person” on the most current list published by the U.S. Treasury
      Department Office of Foreign Assets Control at its official website,
http://www.treas.gove/ofac/t11sdn.pdf or at any replacement website or
      other replacement official publication of such list, and (2) is currently in
      compliance with the regulations of the Office of Foreign Asset Control of the
      Department of the Treasury and any statute, executive order (including the
      September 24, 2001, Executive Order Blocking Property and Prohibiting
      Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism),
      or other governmental action relating thereto.

     

    ARTICLE
      XI
SPECIAL
      PARTNER RIGHTS AND OBLIGATIONS

     

    Section
      11.1  Right
      of First Offer.  

     

    (a)  At
      any
      time after the Rights Trigger Date, if either Inland or LMLP (except if the
      Rights Trigger Date occurs because of an Event of Default by an LMLP Partner)
      wishes to sell their Percentage Interest or cause the Partnership to sell any
      Qualified Asset (for the purposes of this section, such selling Partner, the
      “ROFO Offering Partner”), the ROFO Offering Partner shall
      deliver a written notice (a “ROFO Notice”) to the Other Partner
      (the “ROFO Responding Partner)”) specifying to the ROFO
      Responding Partner in writing the terms and conditions (the “ROFO
      Terms”) and the price (the “ROFOOffer
      Price”) at which the ROFO Offering Partner would be willing to sell
      their entire Percentage Interest or the ROFO Offering Partner would be willing
      to permit the Partnership to sell any of the Qualifying Assets, as the case
      may
      be, to the ROFO Responding Partner.  Any ROFO Notice shall reference
      the invocation of this Section 11.1 and shall constitute an irrevocable
      offer from the ROFO Offering Partner to the ROFO Responding Partner to sell
      its
      entire Percentage Interest or permit the sale by the Partnership of the stated
      Qualifying Assets, as the case may be, at the ROFO Offer Price. If the ROFO
      Responding Partner does not elect to buy the ROFO Offering Partner’s entire
      Percentage Interest or the stated Qualifying Assets, as the case may be, within
      forty-five (45) days following receipt of the ROFO Notice by delivering an
      election notice to the ROFO Offering Partner (the “ROFO Response
      Notice”), subject to Sections 11.1(b) and (c), the ROFO
      Offering Partner shall be permitted to sell their entire Percentage Interest
      or
      the stated Qualifying Assets on behalf of the Partnership, as the case may
      be,
      to a bona fide third party pursuant to an arm’s length transaction on terms not
      more favorable to such bona fide third party than the ROFO Terms and for an
      amount equal to or greater than the ROFO Offer Price (the “Required
      Third Party Price and Terms”).  In the event the ROFO
      Responding Partner fails to timely deliver a ROFO Response Notice, subject
      to
Sections 11.1(b) and (c), the ROFO Offering 

     

    
      
         

      

      
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      Partner shall be permitted to sell its entire Percentage Interest or
        any of
        the Qualifying Assets on behalf of the Partnership, as the case may be, for
        the
        Required Third Party Price and Terms.

       

    

    (b)  In
      the
      event the ROFO Offering Partner is permitted to sell its entire Percentage
      Interest or the stated Qualifying Assets on behalf of the Partnership, as the
      case may be, pursuant to Section 11.1(a) above, the ROFO Offering Partner
      shall have the right for a period of six (6) months after the date of the ROFO
      Notice (the “Third Party Sale Period”) to sell its entire
      Percentage Interest or the stated Qualifying Assets on behalf of the
      Partnership, as the case may be, to a bona fide third party for and on the
      Required Third Party Price and Terms. In the event the ROFO Offering Partner
      fails to consummate the sale of its entire Percentage Interest or the stated
      Qualifying Assets on behalf of the Partnership, as the case may be, for the
      Required Third Party Price prior to the expiration of the Third Party Sale
      Period, the ROFO Offering Partner’s right to sell its entire Percentage Interest
      or the stated Qualifying Assets on behalf of the Partnership, as the case may
      be, to a bona fide third party will be revoked until such time as the ROFO
      Offering Partner has repeated the process set forth in Section 11.1(a)
      and provided the ROFO Responding Partner with the right to make its election
      pursuant to Section 11.1(a) above.

     

    (c)  Any
      exercise of the provisions of this Section 11.1 is also subject to the
      provisions of Section 11.3 below.

     

    Section
      11.2  Buy/Sell.

     

    (a)  Generally.  After
      the Rights Trigger Date, Inland or LMLP (except if the Rights Trigger Date
      occurs because of an Event of Default by an LMLP Partner), as specified therein
      (the “Buy/Sell Offering Partner”), may provide the Other
      Partner (the “Buy/Sell Responding Partner”) with notice (the
“Buy/Sell Notice”) of a price (the “Buy/Sell Offer
      Price”) that the Buy/Sell Offering Partner, or its designated
      Affiliate(s), is willing to pay to purchase (A) those Qualified Assets
      which the Buy/Sell Offering Partner, or its designated Affiliate(s), desire
      to
      purchase if the Buy/Sell Offering Partner, or its designated Affiliate(s),
      desire to purchase less than all of the Qualified Assets from the Partnership,
      or (B) all of the Qualified Assets if the Buy/Sell Offering Partner, or its
      designated Affiliate(s), desire to purchase all of the Qualified Assets
      (provided that an offer to purchase all of the Qualified Assets shall be
      implemented as a purchase by the Buy/Sell Offering Partner, or its designated
      Affiliate(s), of the Percentage Interests of the Buy/Sell Responding Partner)
      (such Qualified Assets or such Percentage Interests, as the case may be, the
      “Buy/Sell Asset”).  The Buy/Sell Notice shall
      include, as an attachment thereto, a bona fide proposed purchase and sale
      agreement on terms reasonably customary for the sale of real estate assets
      or
      for the sale of partnership interests in a limited partnership that owns
      primarily real estate assets (the “Offered
      Agreement”).  Upon receipt of the Buy/Sell Notice, the
      Buy/Sell Responding Partner shall have forty-five (45) days to provide to the
      Buy/Sell Offering Partner a notice (the “Buy/Sell Response
      Notice”) specifying the Buy/Sell Responding Partner’s election either,
      (i) if the Buy/Sell Asset comprises less than all of the Qualified Assets,
      to cause the Partnership to sell the Buy/Sell Asset to the Buy/Sell Offering
      Partner, or its designated Affiliate(s), at the Buy/Sell Offer Price pursuant
      to
      the Offered Agreement or (y) to purchase (or have a designated Affiliate(s)
      purchase) the Buy/Sell Asset from the Partnership for a purchase price equal
      to
      the Buy/Sell Offer Price and on substantially the same terms and conditions
      as
      provided in the Offered Agreement, or, 

     

    
      
         

      

      
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      (ii) if the Buy/Sell Asset comprises all of the Qualified Assets,
        purchase the Percentage Interest of the Buy/Sell Offering Partner or sell
        its
        Percentage Interest to the Buy/Sell Offering Partner, or its designated
        Affiliate(s), for a purchase price equal to the amount the Buy/Sell Responding
        Partner would receive under Section 9.2 hereof if the Partnership
        assets were sold at the Buy/Sell Offer Price and the Partnership were liquidated
        and dissolved (the “Buy/Sell Responding Interest Price”) and on
        substantially the same terms and conditions as provided in the Offered
        Agreement.  Any Buy/Sell Notice made with respect to all of the
        Qualified Assets in connection with an Event of Default shall supersede and
        render of no further effect any Buy/Sell Notice or ROFO Notice (x) made
        with respect to less than all of the Qualified Assets and (y) to which no
        Buy/Sell Response Notice or ROFO Response Notice, as the case may be, has
        been
        provided to the Buy/Sell Offering Partner or ROFO Offering Partner, as the
        case
        may be.

       

    

    (b)  Buy/Sell
      Responding Partner’s Election to Purchase.  If the Responding
      Partner timely delivers a Buy/Sell Response Notice that specifies the Buy/Sell
      Responding Partner’s election to purchase the Buy/Sell Asset, as described in
Section 11.2(a) above, then the Buy/Sell Responding Partner shall
      have up to seventy-five (75) days from the date of the delivery of the Buy/Sell
      Response Notice to close the purchase of the Buy/Sell Asset on substantially
      the
      same terms and conditions as contained in the Offered Agreement.

     

    (c)  Buy/Sell
      Responding Partner’s Election not to Purchase.  If the Buy/Sell
      Responding Partner timely delivers a Buy/Sell Response Notice that specifies
      the
      Buy/Sell Responding Partner’s election not to purchase the Buy/Sell Asset, or if
      the Buy/Sell Responding Partner fails to deliver a timely Buy/Sell Response
      Notice, then (i) if the Buy/Sell Asset comprises less than all of the
      Qualified Assets, the General Partner shall cause the Partnership to proceed
      to
      close the acquisition of the Buy/Sell Asset at the Buy/Sell Offer Price in
      accordance with the terms and conditions of the Offered Agreement,
provided, however, that such closing must take place within the
      seventy-five (75) day period beginning on the date of delivery of the Buy/Sell
      Response Notice, or, (ii) if the Buy/Sell Asset comprises all of the
      Qualified Assets, the Buy/Sell Offering Partner shall purchase the Percentage
      Interests of the Buy/Sell Responding Partner within the seventy-five (75) day
      period described in clause (i) above, for the Buy/Sell Responding Interest
      Price.  In determining the amount of the Buy/Sell Responding Interest
      Price, it will be assumed that no reserves will be required pursuant to
Section 9.2 hereof.

     

    Section
      11.3  Provisions
      Applicable to Right of First Offer and Buy/Sell 

     

    (a)  The
      Purchasing Partner shall deliver to a mutually acceptable escrow agent a
      non-refundable cash deposit within forty-five (45) days of the Responding
      Partner’s actual or deemed notice in an amount equal to the lesser of (i) five
      percent (5%) of the Offer Price, as applicable, or (ii) $1,000,000 (the
“Deposit”) to secure the Purchasing Partner’s obligations
      hereunder.

     

    (b)  Closing
      of any transfer pursuant to Section 11.1 or Section 11.2 above
      (“Closing”) shall occur on the thirtieth (30th) day following
      the date of the escrow agent's receipt of the Purchasing Partner’s deposit as
      contemplated by Section 11.3(b) above (or, if such day is not a Business
      Day, the next succeeding Business Day) (the “Closing Date”), at

     

    
      
         

      

      
        56

        
          

        

      

      
         

      

      the principal place of business of the Partnership, or at such other
        time
        and place as may be mutually agreed upon by the Purchasing Partner and the
        Selling Partner, and (unless otherwise agreed to by the Purchasing Partner
        and
        the Selling Partner) shall be on a cash basis.  At such Closing: (i)
        the Selling Partner shall convey all of its Percentage Interest in the
        Partnership, and, if applicable, all of their debt claims against the
        Partnership, and warrant that such interests and claims are free of all adverse
        claims and encumbrances (unless otherwise agreed upon by the Purchasing Partner
        and the Selling Partner); (ii) the Purchasing Partner shall pay the Selling
        Partner the Offer Price, less a credit for the Deposit (which shall be delivered
        by the escrow agent to the Selling Partner and the amount thereof credited
        against the Offer Price), and as adjusted by customary closing prorations
        and
        customary closing costs, in cash; and (iii) the Selling Partner, the Purchasing
        Partner and the Partnership shall execute and deliver such other documents
        as
        may be appropriate to effect, evidence and perfect the transaction.

       

    

    (c)  Should
      the Purchasing Partner fail to close the transactions elected pursuant to
Section 11.1 or Section 11.2 above prior to the Closing Date, the
      Selling Partner, as its exclusive remedies in the circumstances, (i) shall
      be
      entitled to receive from the escrow agent, as liquidated damages for such
      failure, the Deposit deposited pursuant to Section 11.3(b) of this
      Agreement, (ii) shall have the right for a period of twelve (12) months after
      the scheduled Closing Date (the “Default Sale Period”) to
      acquire the Purchasing Partner’s Percentage Interest or interest in the stated
      Qualified Assets, as the case may be, for 95% of the Offer Price, and (iii)
      the
      Purchasing Partner’s rights pursuant to Section 11.1 and 11.2
      hereof shall be suspended for a period of twelve (12) months after the scheduled
      Closing Date.

     

    (d)  In
      connection with a transfer pursuant to Sections 11.1 or 11.2, the
      Purchasing Partner may designate an Affiliate or Affiliates to acquire the
      Selling Partner’s Percentage Interests or interests in the stated Qualified
      Assets, as the case may be, in which event such Affiliate(s) shall acquire such
      Percentage Interest or interests in the stated Qualified Assets, as the case
      may
      be, but no such designation or acquisition shall relieve the Purchasing Partner
      (as determined without regard to this Section 11.3(e)) from any obligation
      under
      this Article XI.

     

    (e)  Each
      of
      Inland and LMLP shall have the right to exercise either the Right of First
      Offer
      pursuant to Section 11.1 above or the Buy/Sell pursuant to Section
      11.2 above (such Partner being the “Initiating Partner”);
      provided, however, that upon any Initiating Partner’s exercise of either of
      these provisions, the Other Partner may not again trigger the provisions of
      either Section 11.1 or 11.2 until the termination of all
      procedures and timeframes pursuant to the Initiating Partner’s chosen
      provision.

     

    (f)  As
      a
      condition to any transfer by either Inland or LMLP of its Percentage Interest
      or
      the stated Qualified Assets by the Partnership, as the case may be, pursuant
      to
      either 

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

      Section 11.1 or Section 11.2 of this Agreement, the Selling
        Partner must be released at the closing from any indemnities, guaranties
        or
        other credit enhancements granted by such Selling Partner on behalf of the
        Partnership to any third party relating to the interest being transferred.

       

    

    (g)  As
      a
      condition to any transfer by Inland of its Percentage Interest or the stated
      Qualified Assets by the Partnership, as the case may be, pursuant to either
      Section 11.1 or Section 11.2 of this Agreement, any Preferred
      Equity relating to the property that is the subject of the transfer, together
      with accrued and unpaid Preferred Equity Return, shall be distributed to
      LMLP.

     

    (h)  If
      either
      Inland or LMLP initiates a legal action with respect to any exercise of the
      other Partner’s rights under this Article XI, the losing Partner shall
      pay all attorneys’ fees and court costs arising in connection with such legal
      action.

     

    (i)  Each
      Partner shall bear its own costs, such as due diligence expenses and
      consultants’ and attorneys’ fees, incurred in connection with its exercise of,
      or response to, any rights under this Article XI.

     

    ARTICLE
      XII
GENERAL
      PROVISIONS

     

    Section
      12.1  Notices.

     

    (a)  Generally.  All
      notices, demands, approvals, consents or requests provided for or permitted
      to
      be given pursuant to this Agreement must be in writing.

     

    (b)  Manner
      of Notice.  All notices, demands, approvals, consents and requests
      to be sent to the Partnership or any Partner pursuant to the terms hereof shall
      be deemed to have been properly given or served, if personally delivered, sent
      by recognized messenger or next day courier service, or sent by United States
      mail, telex or facsimile transmission to the addresses or facsimile numbers
      listed below, and will be deemed received, unless earlier
      received:  (a) if sent by express, certified or registered mail,
      return receipt requested, when actually received or delivery refused;
      (b) if sent by messenger or courier, when actually received; (c) if
      sent by telex or facsimile transmission, on the date sent, so long as a
      confirming notice is sent by messenger or courier or by express, certified,
      registered, or first-class mail; (d) if delivered by hand, on the date of
      delivery; and (e) if sent by first-class mail, seven days after it was
      mailed.  Rejection or other refusal to accept or the inability to
      deliver because of changed address of which no notice was given shall be deemed
      to be receipt of the notice, demand or request sent.

    
       

      
        	
                If
                  to the Partnership:

              	
                Net
                  Lease Strategic Assets Fund L.P.

                c/o
                  Lexington Realty Trust

                One
                  Penn Plaza, Suite 4015

                New
                  York, New York 10119-4015

                Attention:  Chief
                  Executive Officer

                Fax
                  No.  (212) 594-6600

              
	 	 
	
                with
                  a copy to:

              	
                Inland
                  American (Net Lease) Sub, LLC

                c/o
                  Inland American Real Estate Trust, Inc.

                2901
                  Butterfield Road

                Oak
                  Brook, Illinois 60523

                Attention:

                Fax
                  No.:  (630)

              

      

    

     

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    
      	
              If
                to the Partnership:

            	
              Net
                Lease Strategic Assets Fund L.P.

              c/o
                Lexington Realty Trust

              One
                Penn Plaza, Suite 4015

              New
                York, New York 10119-4015

              Attention:  Chief
                Executive Officer

              Fax
                No.  (212) 594-6600

            
	 	 
	
              with
                a copy to:

            	
              Inland
                American (Net Lease) Sub, LLC

              c/o
                Inland American Real Estate Trust, Inc.

              2901
                Butterfield Road

              Oak
                Brook, Illinois 60523

              Attention:

              Fax
                No.:  (630)

            
	 	 
	 	 
	
              If
                to either LMLP Partner:

            	
              c/o
                Lexington Realty Trust

              One
                Penn Plaza, Suite 4015

              New
                York, New York 10119-4015

              Attention:  Chief
                Executive Officer

              Fax
                No.  (212) 594-6600

            
	 	 
	
              with
                a copy of any notice to:

            	
              Post,
                Heymann & Koffler LLP

              Wing
                A, Suite 211

              Two
                Jericho Plaza

              Jericho,
                New York 11753

              Attention:  David
                Heymann, Esq.

              Fax
                No.:  (516) 433-2777

            
	 	 
	
              If
                to Inland:

            	
              Inland
                American (Net Lease) Sub, LLC

              c/o
                Inland America Real Estate Trust, Inc.

              2901
                Butterfield Road

              Oak
                Brook, Illinois 60523

              Attention:
                Lori Foust and Scott Wilton

              Fax
                No.:  (630)

            
	 	 
	
              and
                a copy of any

              notices
                to:

            	
              Levenfeld
                Pearlstein LLC

              2
                North LaSalle, Suite 1300

              Chicago,
                Illinois 60602

              Attention:  Marc
                Joseph and Russell Shapiro

              Fax
                No.:  (312) 346-8434

            

    

     

    (c)  Right
      to Change Addresses.  A Partner shall have the right from time to
      time and at any time during the term of this Agreement to change its notice
      address or addresses by giving to the Other Partners at least ten (10) Business
      Days’ prior written notice thereof in the manner provided by this
Section 12.1.

     

    Section
      12.2  Governing
      Laws.  This Agreement and the obligations of the Partners
      hereunder shall be interpreted, construed and enforced in accordance with the
      laws of the State of Delaware without regard to its choice of law
      provisions.  Except as otherwise provided herein, the rights and
      obligations of the Partners and the administration and termination of the
      Partnership shall be governed by the Act.

     

    Section
      12.3  Entire
      Agreement.  This Agreement (including the exhibits and
      schedules hereto) contains the entire agreement between the parties, supercedes
      any prior agreements or understandings between them and may not be modified
      or
      amended in any manner other than pursuant to Section 12.12
      hereof.

     

    Section
      12.4  Waiver.  No
      consent or waiver, express or implied, by any Partner to or of any breach or
      default by any other Partner in the performance by the other Partner of its
      obligations hereunder shall be deemed or construed to be a consent or waiver
      to
      or of any other breach or default in the performance by such other Partner
      of
      the same or any other obligations of such other Partner
      hereunder.  Failure on the part of any Partner to complain of any act
      or failure to act of any of the other Partners or to declare any of the other
      Partners in default, irrespective of how long such failure continues, shall
      not
      constitute a waiver by such 

     

     

    
      
         

      

      
        59

        
          

        

      

      
         

      

      Partner of its rights hereunder.  No custom, practice or course
        of dealings arising among the Partners in the administration hereof shall
        be
        construed as a waiver or diminution of the right of any Partner to insist
        upon
        the strict performance by any other Partner of the terms, covenants, agreements
        and conditions herein contained.

       

    

    Section
      12.5  Validity.  If
      any provision of this Agreement or the application thereof to any Person or
      circumstance shall be invalid or unenforceable to any extent, the remainder
      of
      this Agreement and the application of such provisions to other Persons or
      circumstances shall not be affected thereby and shall be enforced to the
      greatest extent permitted by law.

     

    Section
      12.6  Terminology;
      Captions.  All personal pronouns used in this Agreement,
      whether used in the masculine, feminine, or neuter gender, shall include all
      other genders; the singular shall include the plural, and vice versa and shall
      refer solely to the parties signatory hereto except where otherwise specifically
      provided.  Titles of Articles, Sections, Subsections, Schedules and
      Exhibits are for convenience only, and neither limit nor amplify the provisions
      of the Agreement itself, and all references herein to Articles, Sections,
      Subsections, Schedules and Exhibits shall refer to the corresponding Articles,
      Sections, Subsections, Schedules and Exhibits of this Agreement unless specific
      reference is made to such Articles, Sections, Subsections, Schedules and
      Exhibits of another document or instrument.  Any use of the word
“including” herein shall, unless the context otherwise requires, be deemed to
      mean “including without limitation”.

     

    Section
      12.7  Remedies
      Not Exclusive.  Except as otherwise provided herein, the
      rights and remedies of the Partnership and of the Partners hereunder shall
      not
      be mutually exclusive, i.e., the exercise of one or more of the provisions
      hereof shall not preclude the exercise of any other provisions
      hereof.  Each of the Partners confirms that damages at law may be an
      inadequate remedy for a breach or threatened breach of this Agreement and agrees
      that in the event of a breach or threatened breach of any provision hereof,
      the
      respective rights and obligations hereunder shall be enforceable by specific
      performance, injunction or other equitable remedy but nothing herein contained
      is intended to, nor shall it, limit or affect any rights or rights at law or
      by
      statute or otherwise of any party aggrieved as against the other for breach
      or
      threatened breach of any provision hereof, it being the intention by this
      section to make clear the agreement of the Partners that the respective
      rights and obligations of the Partners hereunder shall be enforceable in equity
      as well as at law or otherwise.

     

    Section
      12.8  Action
      by the Partners.  No approval, consent, designation or
      other action by a Partner shall be binding upon such Partner unless the same
      is
      in writing and executed on behalf of such Partner by a duly authorized
      representative of such Partner.

     

    Section
      12.9  Further
      Assurances.  Each of the Partners shall hereafter execute
      and deliver such further instruments and do such further acts and things as
      may
      be required or useful to carry out the intent and purpose of this Agreement
      and
      as are not inconsistent with the terms hereof.

     

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

     

    Section
      12.10  Liability
      of the Limited Partners.  Each Limited Partner’s exposure
      to liabilities hereunder is limited to its interest in the
      Partnership.  No Limited Partner shall be personally liable for the
      expenses, liabilities, debts, or obligations of the Partnership.

     

    Section
      12.11  Binding
      Effect.  Except as otherwise provided in this Agreement,
      every covenant, term, and provision of this Agreement shall be binding upon
      and
      inure to the benefit of the Partners and their respective successors,
      transferees, and assigns.

     

    Section
      12.12  Amendments.  Except
      as otherwise provided in this Agreement, this Agreement may not be amended
      without the written consent of all the Partners.

     

    Section
      12.13  Counterparts.  This
      Agreement may be executed in any number of counterparts and by the different
      parties hereto in separate counterparts, each of which when so executed and
      delivered shall be deemed to be an original, but all such counterparts together
      shall constitute but one and the same instrument; signature and acknowledgment
      pages may be detached from multiple separate counterparts and attached to a
      single counterpart so that all signature and acknowledgement pages are
      physically attached to the same document.  This Agreement shall become
      effective upon the execution of a counterpart hereof by each of the parties
      hereto and delivery to each of the Partners of a fully executed original
      counterpart of this Agreement.

     

    Section
      12.14  Waiver
      of Partition.  Each of the Partners hereby irrevocably
      waives any and all rights (if any) that it may have to maintain any action
      for
      partition of any of the Qualified Assets to be acquired.

     

    Section
      12.15  No
      Third Party Beneficiaries.  Supplementing
Section 5.4 hereof, nothing in this Agreement, expressed or implied,
      is intended to confer any rights or remedies upon any Person, other than the
      Partners and, subject to the restrictions on assignment contained herein, their
      respective successors and assigns.

     

    Section
      12.16  Expenses.
      Each party hereto shall pay all of its own legal and accounting fees and
      expenses incurred in connection with the formation of the Partnership and the
      preparation and negotiation of this Agreement and the agreements ancillary
      hereto. 

     

    Section
      12.17  Jurisdiction;
      Venue. Each party hereto hereby irrevocably
      and
      unconditionally (a) agrees that any action, suit or other legal proceeding
      brought in connection with or relating to this Agreement or any matter
      contemplated hereby shall be brought exclusively in a court of competent
      jurisdiction located in New Castle County, Delaware, whether a state or federal
      court, and shall not be brought in any court or forum outside New Castle County,
      Delaware; (b) consents and submits to, and agrees that it will not assert (by
      way of motion, as a defense or otherwise) that it is not subject to, personal
      jurisdiction in connection with any such action, suit or proceeding in any
      such
      court; and (c) waives to the fullest extent permitted by law, and agrees that
      it
      will not assert (by way of motion, as a defense or otherwise), any claim that
      the laying of venue of any such action, suit or proceeding in any such court
      is
      improper or that any such action, suit or proceeding brought in any such court
      was 

    
      
         

      

      
        61

        
          

        

      

      
         

      

      brought in an inconvenient forum or should be stayed by reason of the
        pendency of some other action, suit or other legal proceeding in a court
        or
        forum other than any such court. 

    

     

    Section
      12.18  Jury
      Waiver. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
      WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW, AND AGREES THAT IT WILL NOT
      ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY
      JURY IN ANY ACTION, SUIT OR OTHER LEGAL PROCEEDING IN CONNECTION WITH OR
      RELATING TO THIS AGREEMENT OR ANY MATTER CONTEMPLATED HEREBY.

     

    Section
      12.19  REIT
      Provisions.

     

    (a)  The
      General Partner and the Partnership shall use commercially reasonable efforts
      to
      cause the Partnership to operate as if it were subject to the real estate
      investment trust (“REIT”) rules of the Code described below, except as otherwise
      permitted by prior written consent of the Partners:

     

    (i)  the
      "75
      percent gross income test" set forth in Section 856(c)(3) of the Code and the
      "95 percent
      gross income test" set forth in Section 856(c)(2) of the Code; and

     

    (ii)   the
      gross assets tests set forth in Section 856(c) of the Code: (A) the "75 percent
      asset test" set
      forth in Section 856(c)(4)(A) of the Code, (B) the "25 percent asset test" set forth
      in
      Section 856(c)(4)(B)(i) of the Code, (C) the "20 percent
      value
      limitation" set forth in Section 856(c)(4)(B)(ii) of the Code, (D) the "5
      percent value limitation" set forth in Section 856(c)(4)(B)(iii)(I) of the
      Code
      and (E) the "10 percent vote and value limitations" set forth in Sections
      856(c)(4)(B)(iii)(II) and (III) of the Code.

     

    For
      purposes of the foregoing tests, any ”mezzanine” loans secured by an equity
      interest in an entity and any interest therefrom shall not be treated as
      satisfying such tests unless such loans and interest are in substantial
      compliance with the requirements of Revenue Procedure 2003-65, except as
      otherwise permitted by prior written consent of the Partners.

     

    (b)  The
      General Partner and the Partnership shall use commercially reasonable efforts
      to
      cause the Partnership not to dispose of any real property in a transaction
      that
      would be treated as a "prohibited transaction" within the meaning of Section
      857(b)(6)(B)(iii) of the Code, unless (i) the transaction qualifies for the
      safe
      harbor, set forth in Section 857(b)(6)(C) of the Code, applied to the
      Partnership as if the Partnership were subject to Section 857(b)(6), taking
      into
      account any other “safe harbor” transactions engaged in by the respective
      Partner in determining whether seven sales has occurred during the year,
      including any such transactions engaged in by a joint venture, partnership
      or
      limited liability company in which such Partner invests (which information
      such
      Partner will provide to the General Partner and Partnership upon written
      request), (ii) the transaction is required under this Agreement, (iii) the
      property is disposed of in connection with or in lieu of foreclosure, (iv)
      the
      property is transferred in a tax free exchange under the Code, (v) the Partners
      consent or (vi) the Executive Committee approves such transaction by a
      Supermajority Vote.

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

     

    (c)  The
      General Partner and the Partnership shall use commercially reasonable efforts
      to
      cause the Partnership to make distributions to the Partners in compliance with
      the “90% distribution requirement” of Section 857(a)(1) of the Code, provided
      that the General Partner and the Partnership shall not be in violation of
      this Section 12.19(c) if:

     

    (i)   the
      Partnership makes the distributions required by Articles 7 and 9 of this
      Agreement, and

     

    (ii)   if
      the distributions required by Articles 7 and 9 of this Agreement are
      insufficient to satisfy the 90% distribution requirement, the General Partner
      and Partnership shall

     

    (A)   notify
      the Partners of the insufficiency,

     

    (B)  (B)
      notify the Partners of whether the Partnership is fully leveraged to the extent
      permitted by the debt and preferred equity ratio set forth in Section 3.8(a)
      of
      the Agreement (75%), and

     

    (C)  (C)
      (1)
      if the Partnership’s debt and preferred equity ratio is below the permitted
      threshold (75%), the General Partner shall not be required to incur debt to
      make
      additional distributions unless a Partner requests it, in which case the General
      Partner and the Partnership shall use commercially reasonable efforts to cause
      the Partnership to incur additional debt on commercially reasonable terms in
      order to make such additional distributions to the requesting Partner and (2)
      if
      the Partnership’s debt and preferred equity ratio is at the maximum permitted
      (75%), the General Partner shall not be required to incur debt to make
      additional distributions unless both LMLP and Inland consent, in which case
      the
      General Partner and the Partnership shall use commercially reasonable efforts
      to
      cause the Partnership to incur additional debt on commercially reasonable terms
      in order to make such additional distributions to both Partners.

     

    If
      an
      amount otherwise available for distribution pursuant to Article 7 of the
      Agreement is used to acquire an Approved Qualified Asset or fund a capital
      expenditure approved by a Supermajority Vote of the Executive Committee or
      consented to by the distributee Partner, such Partner’s share of such
      distribution shall be treated as distributed to the Partner for purposes of
      satisfying this Section 12.19(c).

     

    (d)  Without
      limiting the foregoing, the General Partner and the Partnership shall take
      such
      other reasonable steps as shall be requested in writing in good faith by each
      Partner and its ultimate Parent entity (Inland Real Estate Trust, Inc. in the
      case of Inland and Lexington Realty Trust in the case of LMLP), which the
      requesting Partner and Parent believe in good faith is necessary in order for
      the Parent (and, in the case of LMLP, LMLP) to continue to qualify as a REIT
      (determined assuming that, without regard to its investment in the Partnership,
      such ultimate Parent entity (or LMLP) otherwise would qualify as a REIT) and
      no
      other reasonable steps or action could be taken by the requesting Partner or
      Parent (in lieu of the Partnership taking any requested steps) to enable the
      Parent to so qualify.

     

    (e)  Notwithstanding
      anything to the contrary in this Agreement, in no event shall the General
      Partner or Partnership have any liability to a Partner or 

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

      Affiliate with respect to its failure to qualify as a REIT so long as
        the
        General Partner and Partnership have acted in good faith and used commercially
        reasonable efforts to satisfy the obligations set forth in this Section
        12.19.

    

    

     

    

     

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      REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT
      BLANK.]

     

    
      
         

      

      
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      IN
      WITNESS WHEREOF, this Agreement is executed effective as of the date
      first set forth above.

     

    
      	
              LMLP
                GP

            
	 
	
              LMLP
                GP LLC

              By:
                /s/ T. Wilson Eglin

              Name: T.
                Wilson
                Eglin

              Title: President

            
	 
	
              LMLP

            
	 
	
              THE
                LEXINGTON MASTER LIMITED PARTNERSHIP

              By:
                Lex GP-1 Trust, its general partner

              By:
                /s/ T. Wilson
                Eglin                                                                

              Name: T.
                Wilson
                Eglin

              Title: President

            
	 
	
              INLAND

            
	 
	
              INLAND
                AMERICAN (NET LEASE) SUB, LLC

              By:
                Inland American Real Estate Trust, Inc.

               

              By:
                _/s/ Lori Foust_____________________

                   
                Name: Lori Foust

                   
                Title:  Treasurer

               

              The
                undersigned hereby unconditionally and irrevocably 
guarantees the
                obligations of Inland American (Net Lease) Sub, 
LLC under Sections
                3.10(c), 3.11, 3.12 and 5.1:

               

              INLAND
                AMERICAN REAL ESTATE TRUST, INC.

               

              By:
                _/s/ Lori Foust_____________________

                   
                Name: Lori Foust

                   
                Title: Treasurer

            

    

    

    
      
         

      

      
        65

        
          

        

      

      
         

      

      
        SCHEDULE
          1

         

        Names
          and Capital Commitments of Partners

      

       

       

    

    
      	
              Partner
                Name

               

            	
              Capital
                Commitment

               

            	
              Initial
                Capital Contribution

            	
              Percentage
                Interest

               

            
	 	 	 	 
	
              The
                Lexington Master Limited Partnership

            	
              $22,500,000.00

            	
              $[________]

            	
              15.00%

            
	 	 	 	 
	
              LMLP
                GP LLC

            	
              $0.00

            	
              $0.00

            	
              0.00%

            
	 	 	 	 
	
              Inland
                American (Net Lease) Sub, LLC

            	
              $127,500,000.00

            	
              $[________]

            	
              85.00%

            

    

     

    

     

    Qualified
      Contribution Assets

    
      	
              Property
                (defined in Contribution Agreement)

            	 	 
	 	 	 
	 	
              Primary
                Tenant

            	
              Address

            	
              Existing
                Indebtedness

            	
              Contributed
                Asset (defined in Contribution Agreement)

            
	 	 	 	 	 
	
              Fee
                Interest

            	
              American
                Electric Power

            	
              420
                Riverport Road, Kingport, Tennessee

            	
              --

            	 
	 	 	 	 	 
	
              Fee
                Interest

            	
              Entergy
                Services, Inc.

            	
              5201
                W. Barraque Street, Pine Bluff, Arkansas

            	
              --

            	 
	 	 	 	 	 
	
              Fee
                Interest

            	
              Lithia
                Motors

            	
              101
                Creger, Fort Collins, Colorado

            	
              --

            	 
	 	 	 	 	 
	
              Fee
                Interest

            	
              Raytheon
                Company

            	
              1200
                Jupiter Road, Garland, Texas

            	
              --

            	
              100%
                interest in Chader Associates LLC and 60% limited partnership interest
                in
                Eastgar Associates Limited Partnership

            
	
              Ground
                Lease

            	
              United
                Technologies Corp.

            	
              120
                S.E. Parkway Drive, Franklin, Tennessee

            	
              --

            	 
	 	 	 	 	 
	
              Fee
                Interest

            	
              Wachovia
                Bank, N.A.

            	
              265
                Lehigh Street, Allentown, Pennsylvania

            	
              --

            	 

    

    

    

    
      
         

      

      
        Schedule
          1-1

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
      2

     

    Acquisition
      Parameters

    

    Required
      Parameters

    

    
      	
              ·  

            	
              Single
                tenant, net leased, commercial real estate properties in the office,
                retail and industrial sectors.

            

    

     

    
      	
              ·  

            	
              Real
                estate properties that have a specialized use, design or other feature
                providing for higher initial capitalization rates than those of more
                conventional net leased assets.

            

    

     

    
      	
              ·  

            	
              Not
                less than $15,000,000 nor greater than $75,000,000 in total acquisition
                costs.

            

    

     

    
      	
              ·  

            	
              Real
                estate properties that are fully occupied and rent bearing at
                purchase.

            

    

     

    
      	
              ·  

            	
              Tenants
                are solvent.

            

    

     

    
      	
              ·  

            	
              Real
                estate properties that have strategic value and/or are mission critical
                to
                tenant’s business.

            

    

     

    
      
         

      

      
        Schedule
          1-2

        
          

        

      

      
         

      

    

    

    SCHEDULE
      2.8

     

    Qualified
      Sale Assets

     

    
      	
              Property
                (defined in Purchase Agreement)

            	 	 	 
	 	 	 	 
	 	
              Primary
                Tenant

            	
              Address

            	
              Existing
                Indebtedness

            	
              Sold
                Assets (defined in Purchase Agreement)

            	
              LMLP
                Sale Affiliate

            
	 	 	 	 	 	 
	
              Fee
                interest

            	
              Advance
                PCS, Inc.

            	
              2401
                Cherahala Boulevard, Knoxville, Tennessee

            	
              $5,054,329.68

            	
              100%
                membership interest in Lexington Knoxville Manager LLC

            	
              Lexington
                Tennessee Holdings L.P.

            
	
              Fee
                interest

            	
              American
                Golf Corporation

            	
              11411
                N. Kelly Avenue, Oklahoma City, Oklahoma

            	
              --

            	
              100%
                membership interest in LSAC Oklahoma City Manager LLC and 100 limited
                partnership interest in LSAC Oklahoma L.P.

            	
              LSAC
                Operating Partnership L.P.

            
	
              Leasehold
                interest

            	
              ASML
                Lithography Holding NV

            	
              8555
                South River Parkway, Tempe, Arizona

            	
              $13,415,219.10

            	
              100%
                membership interest in Lexington Tempe Manager LLC and 100% limited
                partnership interest in Lexington Tempe L.P.

            	
              Lexington
                Contributions, Inc.

            
	
              40%
                tenancy-in-common interest

            	
              AT&T
                Wireless Services, Inc.

            	
              3201
                Quail Springs Parkway, Oklahoma City, Oklahoma

            	
              $14,748,872.00

            	
              100%
                membership interest in Lexington Oklahoma City Manager LLC and 100%
                limited partnership interest in Lexington Oklahoma City
                L.P.

            	
              Lexington
                TIC OK Holdings L.P.

            
	
              Fee
                interest

            	
              Baker
                Hughes, Inc.

            	
              9110
                Grogans Mill Road, Houston, Texas

            	
              $23,650,170.60

            	
              Fee
                interest

            	
              Texan
                Christensen Limited Partnership

            
	
              Fee
                interest

            	
              Baker
                Hughes, Inc.

            	
              2529
                West Thorne Drive, Houston, Texas

            	
              $7,217,561.16

            	
              Fee
                interest

            	
              Texan
                Training Limited Partnership

            
	
              Fee
                interest

            	
              Baker
                Hughes, Inc.

            	
              12645
                West Airport Road, Sugarland, Texas

            	
              $16,371,694.47

            	
              Fee
                interest

            	
              Texan
                Petrolite Limited Partnership

            
	
              Fee
                interest

            	
              Bay
                Valley Foods, LLC

            	
              2935
                Van Vactor Way, Plymouth, Indiana

            	
              $6,609,133.18

            	
              100%
                membership interest in LSAC Plymouth Manager LLC and 100% limited
                partnership interest in LSAC Plymouth L.P.

            	
              LSAC
                Operating Partnership L.P.

            
	
              Fee
                interest

            	
              CAE
                Simuflite, Inc. 

            	
              29
                South Jefferson Road, Hanover, 

            	
              $16,719,188.84

            	
              100%
                membership interest in LSAC Morris County Manager

            	
              LSAC
                Operating

            

    

    

    

    
      
         

      

      
        Schedule
          2.8-1

        
          

        

      

      
         

      

       

       

      
        	
                 

              	
                (CAE
                  Inc.)

              	
                New
                  Jersey

              	
                 

              	
                LLC
                  and 99.9% limited partnership interest in LSAC Morris County
                  L.P.

              	
                Partnership
                  L.P.

              
	
                Fee
                  interest

              	
                Corning,
                  Inc.

              	
                736
                  Addison Road, Erwin, New York

              	
                $9,357,883.09

              	
                100%
                  membership interest in Lexington TNI Erwin Manager LLC and 100%
                  limited
                  partnership interest in Lexington TNI Erwin L.P.

              	
                Triple
                  Net Investment Company LLC

              
	
                Fee
                  interest

              	
                Cox
                  Communications, Inc.

              	
                1440
                  East 15th
                  Street, Tucson, Arizona

              	
                $2,275,658.74

              	
                100%
                  membership interest in Net 2 Cox LLC

              	
                Net
                  3 Acquisition  L.P.

              
	
                Fee
                  interest

              	
                Dana
                  Corporation

              	
                6938
                  Elm Valley Drive, Kalamazoo, Michigan

              	
                $17,340,367.78

              	
                100%
                  membership interest in Lexington Kalamazoo Manager LLC and 100%
                  limited
                  partnership interest in Lexington Kalamazoo L.P.

              	
                Lepercq
                  Corporate Income Fund L.P.

              
	
                Leasehold
                  interest

              	
                Dana
                  Corporation

              	
                730
                  North Black Branch Road, Elizabethtown, Kentucky

              	
                $4,694,433.14

              	
                100%
                  interest in to be formed SP Subsidiary

              	
                Lexington
                  Elizabethtown 730 Corp.

              
	
                Leasehold
                  interest

              	
                Dana
                  Corporation

              	
                750
                  North Black Branch Road, Elizabethtown, Kentucky

              	
                $24,923,414.82

              	
                100%
                  interest in to be formed SP Subsidiary

              	
                Lexington
                  Elizabethtown 750 Corp.

              
	
                Leasehold
                  interest

              	
                Dana
                  Corporation

              	
                10000
                  Business Boulevard, Dry Ridge, Kentucky

              	
                $11,805,918.47

              	
                100%
                  interest in to be formed SP Subsidiary

              	
                Lexington
                  Dry Ridge Corp.

              
	
                Leasehold
                  interest

              	
                Dana
                  Corporation

              	
                301
                  Bill Byran Boulevard, Hopkinsville, Kentucky

              	
                $14,603,212.19

              	
                100%
                  interest in to be formed SP Subsidiary

              	
                Lexington
                  Hopkinsville Corp.

              
	
                Leasehold
                  interest

              	
                Dana
                  Corporation

              	
                4010
                  Airpark Drive, Owensboro, Kentucky

              	
                $10,558,679.56

              	
                100%
                  interest in to be formed SP Subsidiary hold interest

              	
                Lexington
                  Realty Trust

              
	
                Fee
                  interest

              	
                EDS
                  Information Services, LLC (Electronic Data Systems
                  Corporation)

              	
                3600
                  Army Post Road, Des Moines, Iowa

              	
                $22,761,297.00

              	
                100%
                  membership interest in Lexington TNI Des Moines Manager LLC and
                  100%
                  limited partnership interest in Lexington TNI Des Moines
                  L.P.

              	
                Triple
                  Net Investment Company LLC

              
	
                Fee
                  interest

              	
                Georgia
                  Power Company

              	
                2500
                  Patrick Henry Parkway, McDonough, Georgia

              	
                $12,675,000.00

              	
                100%
                  membership interest in Acquiport McDonough Manager LLC and 100%
                  limited
                  partnership 

              	
                Lexington
                  Acquiport Company II, LLC

              

      

       

      
        
           

        

        
          Schedule
            2.8-2

          
            

          

        

        
           

        

      

       

      
        
           

          
            	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                    interest
                      in Acquiport McDonough L.P.

                  	
                     

                  
	
                    Fee
                      interest

                  	
                    Honeywell,
                      Inc.

                  	
                    19019
                      N. 59th
                      Avenue, Glendale, Arizona

                  	
                    $14,149,680.39

                  	
                    100%
                      interest in Lexington Manager Glendale LLC

                  	
                    Union
                      Hills Associates

                  
	
                    Fee
                      interest

                  	
                    (i)Structure,
                      LLC (Infocrossing, Inc.)

                  	
                    11707
                      Miracle Hills Drive, Omaha, Nebraska

                  	
                    $8,850,197.37

                  	
                    100%
                      membership interest in LSAC Omaha Manager LLC and 100% limited
                      partnership
                      interest in LSAC Omaha L.P.

                  	
                    LSAC
                      Operating Partnership L.P.

                  
	
                    Leasehold
                      interest

                  	
                    (i)Structure,
                      LLC (Infocrossing, Inc.)

                  	
                    2005
                      East Technology Circle, Tempe, Arizona

                  	
                    $8,358,519.58

                  	
                    100%
                      membership interest in LSAC Tempe Manager LLC and 100% limited
                      partnership
                      interest in LSAC Tempe L.P.

                  	
                    LSAC
                      Operating Partnership L.P.

                  
	
                    Fee
                      interest

                  	
                    Ivensys
                      Systems, Inc. (Siebe, Inc.)

                  	
                    70
                      Mechanic Street, Foxboro, Massachusetts

                  	
                    $14,090,991.79

                  	
                    Fee
                      interest

                  	
                    Lepercq
                      Corporate Income Fund L.P.

                  
	
                    Fee
                      interest

                  	
                    Kelsey
                      Hayes Company (TRW Automotive)

                  	
                    1200
                      & 12025 Tech Center Drive, Livonia, Michigan

                  	
                    $10,520,436.70

                  	
                    100%
                      interest in Lexington Livonia L.L.C.

                  	
                    Lepercq
                      Corporate Income Fund L.P.

                  
	
                    Fee
                      interest

                  	
                    Kelsey-Seybold
                      Clinic (St. Lukes Episcopal Health System)

                  	
                    11555
                      University Boulevard, Houston, Texas

                  	
                    $9,788,652.45

                  	
                    100%
                      membership interest in Lexington Sugarland Manager LLC and
                      100% limited
                      partnership interest in Lexington Sugarland L.P.

                  	
                    Westport
                      View Corporate Center L.P.

                  
	
                    Fee
                      interest (currently under contract)

                  	
                    Litton
                      Loan Servicing L.P. (Credit-Based Asset Servicing and Securitization
                      LLC)

                  	
                    3500
                      North Loop Court, McDonough, Georgia

                  	
                    --

                  	
                    100%
                      membership interest in NLSAF McDonough Manager LLC and 100%
                      limited
                      partnership interest in NLSAF McDonough L.P.

                  	
                    Lexington
                      Realty Trust

                  
	
                    Fee
                      interest

                  	
                    Montgomery
                      County Management, LLC

                  	
                    17191
                      St. Lukes Way, Woodlands, Texas

                  	
                    $7,500,000.00

                  	
                    100%
                      membership interest in LSAC Woodlands Manager LLC and 100%
                      limited
                      partnership interest in LSAC Woodlands L.P.

                  	
                    LSAC
                      Operating Partnership L.P.

                  
	
                    Fee
                      interest

                  	
                    Nextel
                      of Texas

                  	
                    1600
                      Eberhardt Road, Temple, Texas

                  	
                    $8,799,283.19

                  	
                    100%
                      membership interest in Lexington Temple Manager LLC (current
                      Lexington
                      Temple Trust) and 99% limited partnership

                  	
                    Lexington
                      Realty Trust

                  

          

        

      

       

      
        
           

        

        
          Schedule
            2.8-3

          
            

          

        

        
           

        

         

        
          
            
               

              
                	
                         

                      	
                         

                      	
                         

                      	
                         

                      	
                        interest
                          in Lexington Temple L.P.

                      	
                        
 

                      
	
                        Fee
                          interest

                      	
                        Nextel
                          West Corporation

                      	
                        6455
                          State Highway 303 N.E., Bremerton, Washington

                      	
                        $6,503,818.18

                      	
                        100%
                          membership interest in Lexington Bremerton Manager LLC

                      	
                        Lexington
                          Realty Trust

                      
	
                        Fee
                          interest

                      	
                        Northrop
                          Grumman Systems Corp.

                      	
                        3943
                          Denny Avenue, Pascagoula, Mississippi

                      	
                        --

                      	
                        100%
                          membership interest in LSAC Pascagoula Manager LLC and
                          100% limited
                          partnership interest in LSAC Pascagoula L.P.

                      	
                        LSAC
                          Operating Partnership L.P.

                      
	
                        Fee
                          interest

                      	
                        Omnipoint
                          Holdings, Inc. (T-Mobile USA, Inc.)

                      	
                        133
                          First Park Drive, Oakland, Maine

                      	
                        $10,270,681.91

                      	
                        100%
                          membership interest in Acquiport Oakland Manager LLC and
                          100% limited
                          partnership interest in Acquiport Oakland L.P.

                      	
                        Lexington
                          Acquiport Company II, LLC

                      
	
                        Fee
                          interest

                      	
                        Owens
                          Corning

                      	
                        590
                          Ecology Lane, Chester, South Carolina

                      	
                        $13,197,624.67

                      	
                        100%
                          interest in a to be formed SP Subsidiary and 100% interest
                          in Lexington
                          Chester Industrial LLC

                      	
                        Lexington
                          Realty Trust

                      
	
                        Fee
                          interest

                      	
                        Owens
                          Corning

                      	
                        1901
                          49th
                          Avenue, Minneapolis, Minnesota

                      	
                        --

                      	
                        100%
                          membership interest in Lexington Minneapolis L.L.C.

                      	
                        Lepercq
                          Corporate Income Fund L.P.

                      
	
                        Fee
                          interest

                      	
                        Parkway
                          Chevrolet, Inc.

                      	
                        25500
                          SH 249, Tomball, Texas

                      	
                        $9,344,673.76

                      	
                        100%
                          membership interest in LSAC Tomball Manager LLC and 100%
                          limited
                          partnership interest in LSAC Tomball L.P.

                      	
                        LSAC
                          Operating Partnership L.P.

                      
	
                        Fee
                          interest

                      	
                        Seimens
                          Dematic Postal Automation

                      	
                        1404-1501
                          Nolan Ryan Parkway, Arlington, Texas

                      	
                        $21,010,306.55

                      	
                        100%
                          membership interest in Lexington Arlington Manager LLC
                          and 99.5% limited
                          partnership interest in Lexington Arlington L.P.

                      	
                        Lexington
                          Acquiport Company II, LLC

                      
	
                        Fee
                          interest

                      	
                        Silver
                          Spring Gardens, Inc. (Huntsinger Farms, Inc.)

                      	
                        2424
                          Alpine Road, Eau Claire, Wisconsin

                      	
                        --

                      	
                        100%
                          membership interest in LSAC Eau Claire Manager LLC and
                          100% limited
                          partnership interest in LSAC Eau Claire L.P.

                      	
                        LSAC
                          Operating Partnership L.P.

                      
	
                        Fee
                          interest

                      	
                        SKF
                          USA Inc.

                      	
                        324
                          Industrial Park Road, Franklin, North Carolina

                      	
                        $1,508,477.25

                      	
                        Fee
                          interest

                      	
                        Lexington
                          Realty Trust

                      
	
                        Fee
                          interest

                      	
                        Sygma
                          Network, Inc. (Sysco Corporation)

                      	
                        3600
                          Southgate Drive, Danville, Illinois

                      	
                        $6,217,205.68

                      	
                        100%
                          membership interest in Lexington Danville LLC

                      	
                        Lexington
                          Realty Advisors, Inc.

                      

              

            

          

           

          
            
               

            

            
              Schedule
                2.8-4

              
                

              

            

            
               

            

          

        

         

        
          
            
              
                
                  	
                          Fee
                            interest

                        	
                          Tenneco
                            Automotive Operation Company (Tenneco Automotive Inc.)

                        	
                          904
                            Industrial Road, Marshall, Michigan

                        	
                          --

                        	
                          Fee
                            interest

                        	
                          LXP
                            I, L.P.

                        
	
                          Leasehold
                            interest

                        	
                          TI
                            Group Automotive Systems, LLC (TI Automotive LTD)

                        	
                          359
                            Gateway Drive, Livonia, Georgia

                        	
                          $9,781,993.46

                        	
                          100%
                            membership interest in Lexington Livonia TI Manager LLC
                            and 100% limited
                            partnership interest in Lexington Livonia TI L.P.

                        	
                          LSAC
                            Operating Partnership L.P.

                        
	
                          Fee
                            interest

                        	
                          Time
                            Customer Service, Inc. (Time, Inc.)

                        	
                          10419
                            North 30th
                            Street,
                            Tampa, Florida

                        	
                          $7,978,117.35

                        	
                          Fee
                            interest

                        	
                          North
                            Tampa Associates

                        
	
                          Fee
                            interest

                        	
                          TRW,
                            Inc. (Experian Information Solutions, Inc.)

                        	
                          601
                            & 701 Experian Parkway, Allen, Texas

                        	
                          $30,582,338.00

                        	
                          100%
                            membership interest in Lexington Allen Manager LLC and
                            100% limited
                            partnership interest in Lexington Allen L.P.

                        	
                          Lexington
                            Texas Holdings L.P.

                        
	
                          Fee
                            interest

                        	
                          Unisource
                            Worldwide, Inc.

                        	
                          109
                            Stevens Street, Jacksonville, Florida

                        	
                          --

                        	
                          Fee
                            interest

                        	
                          Lepercq
                            Corporate Income Fund II L.P.

                        
	
                          Fee
                            interest

                        	
                          Voicestream
                            PCS I (T-Mobile USA, Inc.)

                        	
                          2999
                            S.W. 6th
                            Street, Redmond, Oregon

                        	
                          $9,654,317.77

                        	
                          100%
                            membership interest in Lexington Redmond Manager LLC

                        	
                          Lepercq
                            Corporate Income Fund II L.P.

                        
	
                          Fee
                            interest

                        	
                          Voicestream
                            PCS II (T-Mobile USA, Inc.)

                        	
                          9601
                            Renner Boulevard, Lenexa, Kansas

                        	
                          $10,141,927.70

                        	
                          100%
                            membership interest in Acquiport Lenexa Manager LLC

                        	
                          Lexington
                            Acquiport Company II, LLC

                        
	
                          Fee
                            interest

                        	
                          Voicestream
                            PCS II (T-Mobile USA, Inc.)

                        	
                          3265
                            East Goldstone Drive, Meridian, Idaho

                        	
                          $10,079,315.38

                        	
                          100%
                            membership interest in Acquiport Meridian Manager LLC

                        	
                          Lexington
                            Acquiport Company II, LLC

                        
	
                          Fee
                            interest

                        	
                          Voicestream
                            PCS II (T-Mobile USA, Inc.)

                        	
                          3711
                            San Gabrial, Mission, Texas

                        	
                          $6,282,487.42

                        	
                          100%
                            membership interest in Lexington Mission Manager LLC
                            and 99.5% limited
                            partnership interest in Lexington Mission L.P.

                        	
                          Triple
                            Net Investment Company
                            LLC

                        

                

              

            

             

          

           

           

        

         

        
          
             

          

          
            Schedule
              2.8-5

            
              

            

          

          
             

          

        

      

    

    SCHEDULE
      3.5

    

     

    Form
      of Annual Plan

     

    [Intentionally
      Omitted From Filing]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SCHEDULE
      3.8

     

    Cross-Default
      Provisions

     

    The
      mortgages secured by the following two sets of two properties are
      cross-collateralized: (1) 730 North Black Branch Road, Elizabethtown, Kentucky
      and 730 North Black Branch Road, Elizabethtown, Kentucky, and (3) 1000 Business
      Boulevard, Dry Ridge, Kentucky and 4010 Airpark Drive, Owensboro,
      Kentucky.

     

    Qualified
      Refi Assets

     

    
      	
              Advance
                PCS, Inc.

            	
              2401
                Cherahala Boulevard, Knoxville, Tennessee

            
	
              American
                Electric Power

            	
              420
                Riverport Road, Kingport, Tennessee

            
	
              American
                Golf Corporation

            	
              11411
                N. Kelly Avenue, Oklahoma City, Oklahoma

            
	
              Baker
                Hughes, Inc.

            	
              9110
                Grogans Mill Road, Houston, Texas

            
	
              Baker
                Hughes, Inc.

            	
              2529
                West Thorne Drive, Houston, Texas

            
	
              Baker
                Hughes, Inc.

            	
              12645
                West Airport Road, Sugarland, Texas

            
	
              Cox
                Communications, Inc.

            	
              1440
                East 15th
                Street, Tucson, Arizona

            
	
              EDS
                Information Services, LLC (Electronic Data Systems
                Corporation)

            	
              3600
                Army Post Road, Des Moines, Iowa

            
	
              Entergy
                Services, Inc.

            	
              5201
                W. Barraque Street, Pine Bluff, Arkansas

            
	
              Honeywell,
                Inc.

            	
              19019
                N. 59th
                Avenue, Glendale, Arizona

            
	
              Ivensys
                Systems, Inc. (Siebe, Inc.)

            	
              70
                Mechanic Street, Foxboro, Massachusetts

            
	
              Kelsey
                Hayes Company (TRW Automotive)

            	
              1200
                & 12025 Tech Center Drive, Livonia, Michigan

            
	
              Kelsey-Seybold
                Clinic (St. Lukes Episcopal Health System)

            	
              11555
                University Boulevard, Houston, Texas

            
	
              Lithia
                Motors

            	
              101
                Creger, Fort Collins, Colorado

            
	
              Litton
                Loan Servicing L.P. (Credit-Based Asset Servicing and Securitization
                LLC)

            	
              3500
                North Loop Court, McDonough, Georgia

            
	
              Nextel
                of Texas

            	
              1600
                Eberhardt Road, Temple, Texas

            
	
              Nextel
                West Corporation

            	
              6455
                State Highway 303 N.E., Bremerton, Washington

            
	
              Northrop
                Grumman Systems Corp.

            	
              3943
                Denny Avenue, Pascagoula, Mississippi

            
	
              Owens
                Corning

            	
              590
                Ecology Lane, Chester, South Carolina

            
	
              Owens
                Corning

            	
              1901
                49th
                Avenue, Minneapolis, Minnesota

            
	
              Raytheon
                Company

            	
              1200
                Jupiter Road, Garland, Texas

            
	
              Seimens
                Dematic Postal Automation

            	
              1404-1501
                Nolan Ryan Parkway, Arlington, Texas

            
	
              Silver
                Spring Gardens, Inc. (Huntsinger Farms, Inc.)

            	
              2424
                Alpine Road, Eau Claire, Wisconsin

            
	
              SKF
                USA Inc.

            	
              324
                Industrial Park Road, Franklin, North Carolina

            
	
              Tenneco
                Automotive Operation Company (Tenneco Automotive Inc.)

            	
              904
                Industrial Road, Marshall, Michigan

            

    

    

     

    
      
         

      

      
        Schedule
          3.8-1

        
          

        

      

      
         

      

       

      
        
          	
                  (Tenneco
                    Automotive Inc.)

                	
                   

                
	
                  Time
                    Customer Service, Inc. (Time, Inc.)

                	
                  10419
                    North 30th
                    Street,
                    Tampa, Florida

                
	
                  Unisource
                    Worldwide, Inc.

                	
                  109
                    Stevens Street, Jacksonville, Florida

                
	
                  United
                    Technologies Corp.

                	
                  120
                    S.E. Parkway Drive, Franklin, Tennessee

                
	
                  Voicestream
                    PCS I (T-Mobile USA, Inc.)

                	
                  2999
                    S.W. 6th
                    Street, Redmond, Oregon

                
	
                  Voicestream
                    PCS II (T-Mobile USA, Inc.)

                	
                  9601
                    Renner Boulevard, Lenexa, Kansas

                
	
                  Voicestream
                    PCS II (T-Mobile USA, Inc.)

                	
                  3265
                    East Goldstone Drive, Meridian, Idaho

                
	
                  Voicestream
                    PCS II (T-Mobile USA, Inc.)

                	
                  3711
                    San Gabrial, Mission, Texas

                
	
                  Wachovia
                    Bank, N.A.

                	
                  265
                    Lehigh Street, Allentown,
                    Pennsylvania

                

        

      

       

       

    

    Qualified
      Assumed Assets

     

    
      	
              Primary
                Tenant

            	
              Address

            
	 	 
	
              ASML
                Lithography Holding NV

            	
              8555
                South River Parkway, Tempe, Arizona

            
	
              AT&T
                Wireless Services, Inc.

            	
              3201
                Quail Springs Parkway, Oklahoma City, Oklahoma

            
	
              Bay
                Valley Foods, LLC

            	
              2935
                Van Vactor Way, Plymouth, Indiana

            
	
              CAE
                Simuflite, Inc. (CAE Inc.)

            	
              29
                South Jefferson Road, Hanover, New Jersey

            
	
              Corning,
                Inc.

            	
              736
                Addison Road, Erwin, New York

            
	
              Dana
                Corporation

            	
              6938
                Elm Valley Drive, Kalamazoo, Michigan

            
	
              Dana
                Corporation

            	
              730
                North Black Branch Road, Elizabethtown, Kentucky

            
	
              Dana
                Corporation

            	
              750
                North Black Branch Road, Elizabethtown, Kentucky

            
	
              Dana
                Corporation

            	
              10000
                Business Boulevard, Dry Ridge, Kentucky

            
	
              Dana
                Corporation

            	
              301
                Bill Byran Boulevard, Hopkinsville, Kentucky

            
	
              Dana
                Corporation

            	
              4010
                Airpark Drive, Owensboro, Kentucky

            
	
              Georgia
                Power Company

            	
              2500
                Patrick Henry Parkway, McDonough, Georgia

            
	
              (i)Structure,
                LLC (Infocrossing, Inc.)

            	
              11707
                Miracle Hills Drive, Omaha, Nebraska

            
	
              (i)Structure,
                LLC (Infocrossing, Inc.)

            	
              2005
                East Technology Circle, Tempe, Arizona

            
	
              Montgomery
                County Management, LLC

            	
              17191
                St. Lukes Way, Woodlands, Texas

            
	
              Omnipoint
                Holdings, Inc. (T-Mobile USA, Inc.)

            	
              133
                First Park Drive, Oakland, Maine

            
	
              Parkway
                Chevrolet, Inc.

            	
              25500
                SH 249, Tomball, Texas

            
	
              Sygma
                Network, Inc. (Sysco Corporation)

            	
              3600
                Southgate Drive, Danville, Illinois

            
	
              TI
                Group Automotive Systems, LLC (TI Automotive LTD)

            	
              359
                Gateway Drive, Livonia, Georgia

            
	
              TRW,
                Inc. (Experian Information Solutions, Inc.)

            	
              601
                & 701 Experian Parkway, Allen,
                Texas

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SCHEDULE
      3.9

     

    LMLP
      Existing Joint Venture Exclusivity Terms

     

    

    Lex-Win
      Acquisition LLC– exclusive vehicle through which LMLP and its Affiliates
      will enter into any transaction or acquire directly or indirectly, any shares
      of
      common stock of Wells Real Estate Investment Trust, Inc. (“Wells”), any interest
      in Wells or any asset owned by Wells.

     

     

    
      
         

      

      
        Schedule
          3.9-1

        
          

        

      

      
         

      

    

    

    

    SCHEDULE
      4.7

     

    INSURANCE
      REQUIREMENTS

     

    EXHIBIT
      C

     

    INSURANCE
      REQUIREMENTS

     

    The
      Partnership shall, at a minimum, obtain and maintain, and/or cause the SP
      Subsidiaries to obtain and maintain, without interruption, the insurance
      coverages stipulated hereunder for the benefit of the Partnership and each
      Partner thereof, but only to the extent of such party’s interest in each
      Qualified Asset:

     

    (a)  Property
      and Related Insurance.

     

    (i)  Qualified
      Assets.  At all times following commencement of construction of
      any above-ground improvements thereon, each Qualified Asset shall be insured
      on
      a 100% Full Replacement Cost basis.  Full Replacement Cost is defined
      as the cost of replacing the improvements, together with appurtenances and
      betterments in compliance with prevailing building codes, without deduction
      for
      physical depreciation thereof, at the time of replacement of the Qualified
      Asset, following a loss.  The value so determined shall be binding and
      conclusive.  The policy shall further provide that, in the event of a
      total or constructive total loss, the Partnership or SP Subsidiary shall not
      be
      unreasonably restricted from applying the proceeds to the re-building of the
      improvements at such other location as the Partnership shall
      elect.  At all times following commencement of construction of any
      vertical improvements thereon, Qualified Assets shall be insured against
      physical loss or damage by fire, lightning and other risks and supplementary
      perils from time to time included under Special Form policies including,
      vandalism and malicious mischief (with agreed amount endorsements), windstorm,
      earthquake, and certified and non-certified acts of terrorism.  The
      policy shall be endorsed to provide coverage for demolition and increased cost
      of construction to conform to local ordinance, and will include “extra expense”
and “expediting expense” coverage.

     

    (ii)  Rent
      Loss/Business Interruption.  The Partnership shall maintain,
      after substantial completion of any above-ground improvements, rent
      loss/business interruption insurance sufficient to prevent the Partnership
      or
      the SP Subsidiary from being a coinsurer under the terms of the policy, and
      in
      an amount equal to twelve months’ projected gross income from the Qualified
      Asset.  The policy must contain an extended period of indemnity
      endorsement which provides that after the loss to the Improvements and personal
      property has been repaired, the continued loss of income will be insured until
      the earlier of such time that such income returns to the same level it was
      prior
      to the loss or the expiration of six (6) months from the date of
      restoration.  This requirement shall apply in the event the
      Partnership, by upon approval of the Executive Committee by a Supermajority
      vote,, has elected to offer all or any portion of the Qualified Asset for rent
      pursuant to leases or other occupancy agreements.

     

    (iii)  Boiler
      and Machinery.  The Partnership or the SP Subsidiary shall
      maintain, after substantial completion of any above-ground improvements, boiler
      and machinery insurance covering physical damage to the Qualified Asset and
      to
      the major components of any central heating, air conditioning or ventilation
      systems, and such other equipment as is usual for similar properties in the
      area.  The policy shall include coverage for business interruption,
      including expediting and extra expense, in an amount not less than
      $500,000.  Unless the insurance required in subsections (a) (i), (iii)
      and (iv) is provided on the same policy or by the same insurance carrier, a
      Joint Loss Agreement between separate primary policies will be
      required.

     

    
      
         

      

      
        Schedule
          4.7-1

        
          

        

      

      
         

      

    

     

    (iv)  Builder’s
      Risk.  During the period of any construction, repair, renovation,
      restoration or replacement of the improvements or the Qualified Asset, the
      Partnership shall obtain and maintain or cause to be obtained and maintained
      a
      completed value “All Risk” Builder’s Risk policy in an amount equal to one
      hundred percent (100%) of the replacement cost of the Qualified
      Asset.  Coverage should include, but not be limited to, collapse, soft
      costs, transit, earthquake, flood, windstorm, terrorism, off-site storage,
      expediting expenses, demolition and increased cost of construction (for
      renovation and/or additions to existing structures), water damage, permission
      for partial occupancy, and automatic reinstatement.  The policy is to
      be in an amount not less than the total value of the Qualified Asset (less
      the
      value of such uninsurable items as land, site preparation, grading, paving,
      parking lots).  The coverage may be provided as an extension to the
      property policy in force if the requirements herein are satisfied, subject
      to
      approval by the Partners of the Partnership.  The Partnership shall
      cause the contracts with any contractors to provide that (i) such contractor
      will be responsible for claims arising out of such contractor’s negligence, and
      (ii) except to the extent that such contractor’s tools and equipment will become
      part of the job, such tools and equipment shall not be considered insurable
      items.

     

    (v)  Flood.  If
      the Qualified Asset is located in a federally designated flood zone A or V
      and
      flood insurance has been made available under the National Flood Insurance
      Act
      of 1968, flood insurance is required in an amount equal to maximum coverage
      available, replacement cost, or such amount as a mortgage lender  may
      require.

     

    (vi)  Earthquake.  If
      a Qualified Asset is in an area identified by any governmental, engineering
      or
      any hazard underwriting agencies as being subject to the peril of earthquake,
      and the project is in a high-risk seismic area denoted as Zones 3 and 4 under
      the Uniform Building Code (UBC), appropriate earthquake insurance coverage
      as
      required by lender is required.

     

    (b)  Liability.

     

    (i)  The
      Partnership and the SP Subsidiaries shall obtain and maintain Commercial General
      Liability insurance on the broadest forms available for similar risks, written
      on an “occurrence policy form,” against all claims for bodily injury, disease or
      death, property damage, personal injury, certified and non-certified acts of
      terrorism products and completed operations, and contractual liability (deleting
      any exclusion restricting coverage for contractual obligations for claims
      occurring on, in or about the Qualified Asset and adjoining premises, and for
      explosion, collapse, and underground property damage) in an amount of not less
      than $5,000,000 arising out of any one occurrence; provided, however that
      coverage for explosion, collapse, and underground property damage shall not
      be
      required until such time as any excavation at the Qualified Asset commences,
      and
      may be in the form of coverage carried by the applicable
      contractor.  Such insurance may be provided under a primary and an
      umbrella policy or policies, provided that such umbrella policy or policies
      shall not exclude “real estate activities.”  If liability coverage for
      any Qualified Asset procured by the contractor is included under any blanket
      policy written on an aggregate form, then the annual aggregate limit of
      insurance must apply per location.  The policy shall be endorsed to
      include the SP Subsidiary, the Partnership, the lender and each Partner thereof
      as an additional insured subject to the benefits stipulated under subsection
      (i)(iv) hereof. Such insurance will be endorsed as primary and non-contributory
      with any other insurance available to the SP Subsidiary, the Partnership, the
      lender and each Partner.

     

    (ii)  During
      any period of construction, repair, restoration, renovation or replacement
      of
      the Qualified Asset, the Partnership shall cause the general contractor to
      maintain commercial liability insurance (or the Partnership’s or SP Subsidiary’s
      and Contractor’s protective liability insurance in the name of the Partnership
      or SP Subsidiary and each Partner thereof), with extension for, but not limited
      to, products/completed operations, with limits of not less than $10,000,000
      per
      occurrence.  Completed Operations insurance shall remain in effect for
      the length of time statutorily required in the state in which 

     

    
      
         

      

      
        Schedule
          4.7-2

        
          

        

      

      
         

      

      the construction occurs. This coverage shall be maintained as was agreed
        to
        at the time of substantial completion of the Qualified Asset and shall be
        for
        the same limits as required above. The Partnership shall also cause the general
        contractor to require its subcontractors of any tier to provide confirmation
        of
        commercial liability coverage (including products/completed operations),
        and
        such insurance shall be on a primary and non-contributory basis with a limit
        of
        not less than $1,000,000 per Qualified Asset.  The general contractors
        and the subcontractors shall have the Partnership and the SP Subsidiary included
        on the insurance required herein as additional insureds.

       

    

    (c)  Worker’s
      Compensation.  The Partnership and the SP Subsidiaries will
      maintain Worker’s Compensation as statutorily required and Employer’s
      Liability insurance, or their equivalent, for all of their respective employees,
      and will cause any of their agents, contractors and subcontractors of any tier
      to maintain similar insurance for all their respective employees, to the fullest
      extent required under the laws of the jurisdiction in which a Qualified Asset
      is
      located.

     

    (d)  Errors
      and Omission.  The Partnership will cause any professional
      consultants, including, but not limited to, architects and engineers, to
      maintain coverage in limits of not less than $1,000,000.

     

    (e)  Crime.  The
      Partnership will maintain crime insurance in an amount of not less than
      $1,000,000 for the benefit of the Partnership and each Partner thereof against
      loss caused by infidelity of its officers, agents, servants and employees;
      and
      against robbery or burglary both on and off premises.

     

    (f)  Other
      Insurance.  In addition to the above, the Partnership and the SP
      Subsidiaries shall maintain all insurance, surety and fidelity bonds in amounts
      and for such periods that are deemed to be prudent, or are customarily
      maintained by persons or entities operating properties of like kind,
      construction and occupancy in the locality of each Qualified
      Asset.  Compliance with insurance requirements will not in itself be
      construed to be a limitation of the Partnership’s or the SP Subsidiaries’
liability.

     

    (g)  All
      Insurance.  All insurance required herein will be primary and not
      excess over, contributory or participating with any other insurance carried
      by
      individual Partners of the Partnership or their respective affiliates or
      agents.

     

    (h)  Other
      Requirements With Respect to Insurance.  The following provisions
      shall apply with respect to all insurance coverage required above:

     

    (i)  Insurance
      Companies:  All insurance required herein shall be issued by insurance
      companies of recognized good standing, with a rating of at least A-VII in Best’s
      Key Rating Guide, except for loans in excess of $35,000,000 where required
      by
      lender and in in such case a rating of at lease AVII in Best’s Key Rating Guide,
      and must be licensed to do business in the state in which the Qualified Asset
      is
      located or must otherwise be acceptable to the Partnership.  Insurance
      ratings are subject to the approval of mortgagee. Coverage under blanket
      policies may be extended by endorsements provided the insurers meet the
      requirements stipulated herein.  Each policy shall not have more than
      a $25,000 deductible for any occurrence, except for mandatory deductibles where
      required under local regulations, or when required by insurers for specific
      catastrophic perils, or with respect to flood insurance pursuant to Section
      (a)(v) which deductible shall not exceed $250,000 for any occurrence. An
      allowance for deductibles in excess of $25,000 on all-risk policies will be
      allowed upon the approval of mortgagee, but in any event cannot exceed
      $100,000.

     

    (ii)  Evidence
      of Insurance:  The Partnership or the SP Subsidiaries shall obtain,
      before the expiration date of each such policy, original policies (or renewals
      or extensions of the insurance afforded thereby) or certified duplicates
      thereof, or binders evidencing such insurance, or 

     

    
      
         

      

      
        Schedule
          4.7-3

        
          

        

      

      endorsements, or certificates
        thereof.  Evidence of Property insurance shall be on ACORD 28 forms
        acceptable to lenders and naming lender as mortgagee and loss
        payee.  Certificates of General Liability shall be on ACORD 25 forms
        and shall name lender as additional insured.

       

    

    (iii)  Insurance
      (Cut-Through Endorsement).  Except to the extent prohibited by
      applicable law, insurance placed with a non-admitted insurer or excess and
      surplus lines insurer will (upon written request of the Partners) require a
      “cut-through” endorsement for reinsurance purposes to allow for recovery
      directly from a reinsurer in the event of the primary insurer’s insolvency or
      cessation of insurance operations. This will be addressed on a case by case
      basis, dependent on the insurance carriers involved.

     

    (iv)  Cancellation:  The
      Partnership shall immediately notify each Partner of the Partnership of any
      cancellation of, non-renewal, or such material change as may adversely affect
      any insurance policy or coverage in force.  Each policy shall contain
      a provision obligating the insurer to send at least thirty (30) days’ prior
      written notice to any party included as an additional insured or loss payee
      notifying them of the intent to cancel or make such change, and that any loss
      otherwise payable to them thereunder shall be paid notwithstanding any act
      or
      negligence on their part or that of the Partnership which might, absent such
      provision, result in a forfeiture of all or part of such insurance
      payment.

     

    (v)  Separate
      Insurance:  Without the prior written consent of all Partners of the
      Partnership, neither the Partnership not any SP Subsidiary shall purchase
      separate insurance concurrent in form or contributing in the event of loss,
      with
      the insurance required hereunder.

     

    (vi)  Payment
      of Premium.  The Partnership or the applicable SP Subsidiary shall be
      solely responsible for, and promptly pay when due, any and all premiums on
      all
      such insurance.

     

    
      
         

      

      
        Schedule
          4.7-4

        
          

        

      

      
         

      

    

     

    

    SCHEDULE
      5.2

     

    Preferred
      Equity Assets

     

    
      	
              Primary
                Tenant

            	
              Address

            	
              Allocation
                of Preferred Equity

            
	 	 	 
	
              ASML
                Lithography Holding NV

            	
              8555
                South River Parkway, Tempe, Arizona

            	 
	
              AT&T
                Wireless Services, Inc.

            	
              3201
                Quail Springs Parkway, Oklahoma City, Oklahoma

            	 
	
              Bay
                Valley Foods, LLC

            	
              2935
                Van Vactor Way, Plymouth, Indiana

            	 
	
              CAE
                Simuflite, Inc. (CAE Inc.)

            	
              29
                South Jefferson Road, Hanover, New Jersey

            	 
	
              Corning,
                Inc.

            	
              736
                Addison Road, Erwin, New York

            	 
	
              Dana
                Corporation

            	
              730
                North Black Branch Road, Elizabethtown, Kentucky

            	 
	
              Dana
                Corporation

            	
              750
                North Black Branch Road, Elizabethtown, Kentucky

            	 
	
              Dana
                Corporation

            	
              10000
                Business Boulevard, Dry Ridge, Kentucky

            	 
	
              Dana
                Corporation

            	
              301
                Bill Byran Boulevard, Hopkinsville, Kentucky

            	 
	
              Dana
                Corporation

            	
              4010
                Airpark Drive, Ownesboro, Kentucky

            	 
	
              Georgia
                Power Company

            	
              2500
                Patrick Henry Parkway, McDonough, Georgia

            	 
	
              (i)Structure,
                LLC (Infocrossing, Inc.)

            	
              11707
                Miracle Hills Drive, Omaha, Nebraska

            	 
	
              (i)Structure,
                LLC (Infocrossing, Inc.)

            	
              2005
                East Technology Circle, Tempe, Arizona

            	 
	
              Montgomery
                County Management, LLC

            	
              17191
                St. Lukes Way, Woodlands, Texas

            	 
	
              Omnipoint
                Holdings, Inc. (T-Mobile USA, Inc.)

            	
              133
                First Park Drive, Oakland, Maine

            	 
	
              Parkway
                Chevrolet, Inc.

            	
              25500
                SH 249, Tomball, Texas

            	 
	
              Sygma
                Network, Inc. (Sysco Corporation)

            	
              3600
                Southgate Drive, Danville, Illinois

            	 
	
              TI
                Group Automotive Systems, LLC (TI Automotive LTD)

            	
              359
                Gateway Drive, Livonia, Georgia

            	 
	
              TRW,
                Inc. (Experian Information Solutions, Inc.)

            	
              601
                & 701 Experian Parkway, Allen, Texas

            	 
	
              Voicestream
                PCS II (T-Mobile USA, Inc.)

            	
              3711
                San Gabrial, Mission, Texas

            	 

    

    

     

    

    
      
         

      

      
        Schedule
          5.2-1

        
          

        

      

      
         

      

    

     

    

     

    EXHIBIT
      A

     

    

     

    Form
      of Annual Budget

     

    [To
      come]

     

    
      
         

      

      
        Exhibit
          A-1

        
          

        

      

      
         

      

    

     

    

     

    EXHIBIT
      B

     

    

     

    Form
      of Contribution Agreement

     

    

    [Intentionally
      Omitted From Filing]

     

     

    
      
         

      

      
        Exhibit
          B-1

        
          

        

      

      
         

      

    

    

    EXHIBIT
      C

     

    

     

    Form
      of Management Agreement

     

    [Intentionally
      Omitted From Filing]

     

     

    
      
         

      

      
        Exhibit
          C-2

        
          

        

      

      
         

      

    

    

     

    

     

    EXHIBIT
      D

     

    

     

    Form
      of Purchase Agreement

     

    [Intentionally
      Omitted From Filing]

     

     

    
      
         

      

      
        Exhibit
          D-1

        
          

        

      

      
         

      

    

    

     

    

     

    EXHIBIT
      E

     

    

     

    SP
      Subsidiary Limited Liability Company Agreement

     

    [Intentionally
      Omitted From Filing]

     

     

    
      
         

      

      
        Exhibit
          E-2

        
          

        

      

      
         

      

    

    

    

     

    

     

    EXHIBIT
      F

     

    

     

    SP
      Subsidiary Partnership Agreement

     

    [Intentionally
      Omitted From Filing]

     

     

    
      
         

      

      
        Exhibit
          F-1

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