Document:

Second Amended and Restated Agreement of Limited Partnership

 EXHIBIT 10.2 
 SECOND AMENDED AND RESTATED 
 AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 PALADIN REALTY INCOME
PROPERTIES, L.P. 
 THIS SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF PALADIN REALTY INCOME PROPERTIES, L.P. (this
“Agreement”), dated as of February 6, 2008, is entered into by and among PALADIN REALTY INCOME PROPERTIES, INC., a Maryland corporation, as general partner (the “General Partner”), and those Persons who have
executed this Agreement or a counterpart hereof, or who become parties hereto pursuant to the terms of this Agreement. 
 W I T N E S S
E T H 
 WHEREAS, the General Partner and the Initial Limited Partner formed Paladin Realty Income Properties, L.P. (the
“Partnership”) as a limited partnership pursuant to the Act by filing a certificate of limited partnership with the Secretary of State of the State of Delaware on October 31, 2003; 
 WHEREAS, the General Partner and the Initial Limited Partner entered into that certain Agreement of Limited Partnership of Paladin Realty Income
Properties, L.P., dated as of October 31, 2003, providing for the organization of the Partnership upon the terms and conditions set forth therein; 
 WHEREAS, the General Partner and the Initial Limited Partner entered into that certain Amended and Restated Agreement of Limited Partnership of Paladin Realty Income Properties, L.P., dated as of February 28,
2005 (the “Amended and Restated Partnership Agreement”), providing for the organization of the Partnership upon the terms and conditions set forth therein; 
 WHEREAS, the parties thereto desire to further amend and restate the Amended and Restated Partnership Agreement in its entirety pursuant to the terms
hereof; and 
 WHEREAS, this Agreement shall constitute the “partnership agreement” (within the meaning of the Act) of the
Partnership, and shall be binding upon all Persons now or at any time hereafter who are Partners; 
 NOW, THEREFORE, in consideration of the
mutual covenants and obligations set forth in this Agreement, and of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows:

 ARTICLE 1 
 DEFINED TERMS 
 Capitalized terms used in this Agreement (including exhibits, schedules and
amendments) shall have the meanings set forth below or in the Section of this Agreement referred to below, except as otherwise expressly indicated or limited by the context in which they appear in this Agreement. All terms defined in this Agreement
in the singular have the same meanings when used in the plural and vice versa. Accounting terms used but not otherwise defined shall have the meanings given to them under GAAP. 
 1.1 “Act” means the Delaware Revised Uniform Limited Partnership Act, as amended from time to time, and any successor to such statute. 
 1.2 “Additional Limited Partner” means a Person that has executed and delivered an additional limited partner signature page in the form attached
hereto and has been admitted to the Partnership as a Limited Partner pursuant to Section 12.2. 
 1.3 “Adjusted Capital Account
Deficit” means with respect to any Partner, the negative balance, if any, in such Partner’s Capital Account as of the end of any relevant Fiscal Year, determined after giving effect to the following adjustments: 
 (a) credit to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to restore to the
Partnership pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Treasury Regulations, or (ii) is deemed to be obligated to restore to the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Treasury Regulations; and 
 (b) debit to such Capital Account the items described in Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Treasury Regulations. 
 This definition of Adjusted Capital Account Deficit is intended to comply with
the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 1.4 “Advisor” means Paladin Realty Advisors, LLC, the advisor to the Partnership and the General Partner pursuant to the Advisory Agreement. 
 1.5 “Advisory Agreement” means that certain Advisory Agreement by and among the Advisor, the Partnership and the General Partner dated as of February 6, 2008, as it may be amended from
time to time, modified, supplemented or restated. 
 1.6 “Affiliate” means, with respect to a specified Person, any Person that,
directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the specified Person. For this purpose, the term “control” (including the terms “controlling,” “controlled
by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract
or otherwise. 
  

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 1.7 “Agreed Value” means (a) in the case of any Contributed Property, the fair market value of
such Contributed Property at the time such property is contributed as determined by the General Partner and agreed to by the contributing party, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such
property is subject when contributed, and (b) in the case of any property distributed to a Partner by the Partnership, the Partnership’s Carrying Value of such property at the time such property is distributed, reduced by any indebtedness
either assumed by such Partner upon such distribution or to which such property is subject at the time of distribution. 
 1.8 “Agreement” means this Second Amended and Restated Agreement of Limited Partnership of Paladin Realty Income Properties, L.P., as originally executed and as amended, modified, supplemented or restated from time to
time, as the context requires. 
 1.9 “Appraised Value” means the value of the Partnership Assets as determined by an appraisal made by
an Independent Appraiser. 
 1.10 “Articles of Incorporation” means the General Partner’s Articles of Incorporation, filed with
the Maryland State Department of Assessments and Taxation, or other organizational document governing the General Partner, as amended, modified, supplemented or restated from time to time. 
 1.11 “Assignee” means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who has
not become a Substituted Limited Partner, and who has the rights set forth in Section 11.5. 
 1.12 “Available Operating Cash”
means the cash flows derived by the Partnership from the operation of the Partnership’s business (other than any Net Capital Event Proceeds or Capital Contributions) before any deduction for depreciation or amortization and after deduction of:

 (a) all operating costs and expenses including taxes; 
 (b) all payments of principal, interest and other charges in respect of any Partnership indebtedness; 
 (c) all expenditures for capital improvements to the Partnership assets or property; and 
 (d) all reserves, whether for
working capital, debt repayment, new portfolio investments or otherwise (including for the redemption of Partnership Units) that are established by the General Partner in the exercise of its sole and absolute discretion. 
 1.13 “Book Gain” or “Book Loss” means the gain or loss recognized by the Partnership for purposes of Section 704(b) of the
Code in any Fiscal Year by reason of any sale or disposition with respect to any of the property or assets of the Partnership. Such Book Gain or Book Loss shall be computed by reference to the Carrying Value of such property or assets as of the date
of such sale or disposition, rather than by reference to the tax basis of such property or assets as of such date, and each and every reference herein to “gain” or “loss” shall be deemed to refer to Book Gain or Book Loss, rather
than to tax gain or tax loss, unless the context manifestly otherwise requires. 
  

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 1.14 “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in Los Angeles, California are authorized or required by law to close. 
 1.15 “Capital Account” has the meaning set forth in
Section 4.8. 
 1.16 “Capital Contribution” means, with respect to any Partner, any cash, cash equivalents or the Agreed Value of
Contributed Property that such Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof. 
 1.17 “Capital
Transaction” means (a) any sale, exchange, taking by eminent domain, damage, destruction or other disposition of all or any part of the assets of the Partnership, any Subsidiary or any other Person in which the Partnership holds a
direct or indirect interest, other than tangible personal property disposed of in the ordinary course of business; or (b) any financing or refinancing of any indebtedness of the Partnership, any Subsidiary or any other Person in which the
Partnership holds a direct or indirect interest; provided, that the receipt by the Partnership of Capital Contributions shall not constitute a Capital Transaction. 
 1.18 “Carrying Value” means, except as otherwise provided herein, (a) with respect to a Contributed Property, the fair market value of such Contributed Property at the time such property is contributed, as
determined by the General Partner and agreed to by the contributing partner, without reduction for any liabilities either assumed by the Partnership upon such contribution or to which such property was subject when contributed, reduced (but not
below zero) by all Depreciation with respect to such property charged to the Partners’ Capital Accounts, and (b) with respect to any other Partnership Asset, the adjusted basis of such Partnership Asset for Federal income tax purposes, all
as of the time of determination. The Carrying Value of any property shall be adjusted in accordance with Section 4.8(b) from time to time to reflect changes, additions or other adjustments to the Carrying Value, as deemed appropriate by the
General Partner. 
 1.19 “Cash Amount” means an amount of cash equal to the Value of the REIT Stock Amount on the Valuation Date.

 1.20 “Certificate” means the Certificate of Limited Partnership of the Partnership, filed on October 31, 2003, as amended,
restated, supplemented or otherwise modified from time to time as herein provided in accordance with the Act. 
 1.21 “Code” means the
Internal Revenue Code of 1986, as amended from time to time, and any subsequent Federal law of similar import, and, to the extent applicable, any Treasury Regulations promulgated thereunder. 
 1.22 “Common Stock” means a share of the common stock of the General Partner, par value $.01 per share. Common Stock may be issued in one or more
classes or series in accordance with the terms of the Articles of Incorporation. If there is more than one class or series of Common Stock, the term “Common Stock” shall, as the context requires, be deemed to refer to the class or series
of Common Stock that correspond to the class or series of Partnership Units for which the reference to Common Stock is made. 
  

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 1.23 “Consent” means the consent or approval of a proposed action by a Partner given in accordance
with Section 14.2 hereof. 
 1.24 “Consent of the Outside Limited Partners” means the Consent of the Outside Limited Partners
holding a number of Partnership Units greater than fifty percent (50%) of the aggregate Partnership Units held by all Outside Limited Partners. 
 1.25 “Contributed Property” means each property or other asset (but excluding cash and cash equivalents), in such form as may be contributed by a Partner to the Partnership as permitted by the Act. 
 1.26 “Depreciation” means, for each Fiscal Year, an amount equal to the depreciation, amortization or other cost recovery deduction allowable with
respect to an asset for such year or other period for Federal income tax purposes; provided, that if the Carrying Value of an asset differs from its adjusted basis for Federal income tax purposes at the beginning of any such year or other period,
Depreciation shall be determined in the manner described in Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3) or 1.704-3(d)(2), whichever is applicable, and if such asset has a zero adjusted tax basis, Depreciation shall be an amount
determined under any reasonable method selected by the General Partner. 
 1.27 “Effective Date” means the date of first closing of the
offering of Common Stock pursuant to the Registration Statement. 
 1.28 “8% Return” means, with respect to the General Partner, an
amount calculated like simple interest at the rate of eight percent (8%) per annum calculated on the varying daily balances of Invested Capital of the General Partner during the period to which the 8% Return relates, and determined on the basis
of a 360-day year/30-day month, cumulative for the period for which such 8% Return is being determined. 
 1.29 “8% Return Account”
means, with respect to the General Partner, as of any relevant date, an amount equal to the excess of (i) the 8% Return that has accrued with respect to the Invested Capital of the General Partner through such date, over (ii) the sum of
(A) the cumulative distributions of Available Cash and Net Capital Event Proceeds made to the General Partner prior to such relevant date pursuant to Section 5.1 hereof, and (B) the cumulative amounts paid to the General Partner in
redemption of its Partnership Units pursuant to Section 8.6(g) as of such date, other than such distributions and payments that are applied to reduce the Unrecovered Contribution Account of the General Partner. All amounts distributed and paid
to the General Partner pursuant to Sections 5.1 and 8.6(g) shall first be applied to reduce the Unrecovered Contribution Account of the General Partner until the balance of such Unrecovered Contribution Account equals zero ($0), and then shall be
applied to reduce the 8% Return Account of the General Partner. 
  

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 1.30 “Entity” means any general partnership, limited liability company, proprietorship,
corporation, joint venture, joint-stock company, limited partnership, limited liability partnership, business trust, firm, trust, estate, governmental entity, cooperative, association or other foreign or domestic enterprise. 
 1.31 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding provisions of succeeding
laws). 
 1.32 “Fiscal Year” means the fiscal year of the Partnership and shall be the same as its taxable year, which shall be the
calendar year unless otherwise determined by the General Partner in accordance with the Code. 
 1.33 “GAAP” means United States
generally accepted accounting principles, as in effect from time to time. 
 1.34 “General Partner” means Paladin Realty Income
Properties, Inc., a Maryland corporation, and any successor as general partner of the Partnership. 
 1.35 “General Partner Interest”
means a Partnership Interest held by the General Partner, in its capacity as general partner. A General Partner Interest may be expressed as a number of Partnership Units. 
 1.36 “Incapacity” or “Incapacitated” means: 
 (a) as to any
individual Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating him incompetent to manage his person or his estate; 
 (b) as to any corporation that is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; 
 (c) as to any partnership that is a Partner, the dissolution and commencement of winding up of the partnership; 
 (d) as to any estate that is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership; 
 (e) as to any trustee of a trust that is a Partner, the termination of the trust (but not the substitution of a new trustee); or 
 (f) as to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when: 
 (i) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency
or other similar law now or hereafter in effect; 
  

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 (ii) the Partner is adjudged as bankrupt or insolvent, or a final and nonappealable
order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Partner; 
 (iii) the Partner executes and delivers a general assignment for the benefit of the Partner’s creditors; 
 (iv) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Partner in any proceeding of the nature described in clause (ii) above; 
 (v) the Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all
or any substantial part of the Partner’s assets; 
 (vi) any proceeding seeking liquidation, reorganization or other
relief of or against such Partner under any bankruptcy, insolvency or other similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof; 
 (vii) the appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or
stayed within ninety (90) days of such appointment; or 
 (viii) an appointment referred to in clause
(vii) which has been stayed is not vacated within ninety (90) days after the expiration of any such stay. 
 1.37 “Indemnitee”
means 
 (a) any Person made a party to a proceeding by reason of its status as: 
 (i) the General Partner, 
 (ii) a Limited Partner, 
 (iii) the Advisor, 
 (iv) a director, trustee, manager, member or officer of the Partnership, the General Partner or the Advisor, or 
 (v) a director, trustee, manager, member or officer of any other Entity, serving in such capacity at the request of the Partnership,
the General Partner or the Advisor, acting on behalf of the Partnership or the General Partner, or 
  

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 (b) such other Persons (including Affiliates of the General Partner) as the General Partner may
designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion. 
 1.38 “Independent Appraiser” means an appraiser of real estate with no material current or prior business or personal relationship with the Advisor, the Partnership, the General Partner or the directors of the General
Partner, that, in the determination of the General Partner, is qualified to appraise real estate by virtue of being engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the
Partnership. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence of such qualification. 
 1.39 “Initial Limited Partner” means Paladin Realty Advisors, LLC. 
 1.40 “Invested Capital” means, with respect to the General Partner, as of any relevant date, an amount equal to the excess of (i) the aggregate amount of cash contributed or deemed
contributed by the General Partner to the Partnership from the gross proceeds of the issuance by the General Partner of REIT Stock or other equity Securities pursuant to Article IV hereof, over (ii) the sum of (A) the cumulative
distributions of Net Sales Proceeds made to the General Partner pursuant to Section 5.1(c) as of such date, and (B) the cumulative amounts paid to the General Partner in redemption of its Partnership Units pursuant to Section 8.6(g)
as of such date. 
 1.41 “Investments” means and Real Property Investment or any Real Estate Related Investment. 
 1.42 “IRS” shall mean the Internal Revenue Service of the United States. 
 1.43 “Lien” means any lien, security interest, mortgage, deed of trust, charge, claim, encumbrance, pledge, option, right of first offer or first refusal and any other right or interest of others
of any kind or nature, actual or contingent, or other similar encumbrance of any nature whatsoever. 
 1.44 “Limited Partner” means,
prior to the admission of the first Additional Limited Partner to the Partnership, the Initial Limited Partner, and thereafter any Person named as a limited partner of the Partnership in Exhibit A, as such Exhibit may be amended from time to
time, upon the execution and delivery by such Person of an additional limited partner signature page, including any Additional Limited Partner or Substituted Limited Partner in each case, in such Person’s capacity as a limited partner of the
Partnership. 
 1.45 “Limited Partner Interest” means a Partnership Interest of a Limited Partner in the Partnership. A Limited Partner
Interest may be expressed as a number of Partnership Units. 
 1.46 “Liquidating Event” has the meaning set forth in Section 13.1
hereof. 
 1.47 “Liquidator” has the meaning set forth in Section 13.2 hereof. 
  

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 1.48 “Listing Event” means the listing of the REIT Stock on a national securities exchange.

 1.49 “Listing Date” means the date on which a Listing Event occurs. 
 1.50 “Market Value” means the market value of the REIT Stock as of the date of a Listing
Event, which shall be equal to the product of (a) the number of shares of REIT Stock issued and outstanding at the time of the Listing Event, multiplied by (b) the average Listed Market Price (as defined below) of a share of REIT Stock for
the 30 trading days beginning on the 180th day after the Listing Date. The “Listed Market Price” of a share of REIT Stock for each such
trading day shall be the last reported sale price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported on the national securities exchange on which the REIT Stock is listed for
trading. 
 1.51 “NASAA Guidelines” means the North American Securities Administrators Association, Inc. Statement of Policy Regarding
Real Estate Investment Trusts. 
 1.52 “Net Capital Event Proceeds” means, with respect to any Partnership Asset (or portion thereof),
the proceeds, if any, with respect to a Capital Transaction related to such Partnership Asset, net of (a) any costs and expenses incurred in connection with such Capital Transaction, (b) any of such proceeds which are used to repay
indebtedness, (c) any insurance proceeds applied to restoration, repair or rebuilding, and (d) any proceeds of business interruption insurance, and after setting aside appropriate reserves, as determined by the General Partner in its sole
and absolute discretion. 
 1.53 “Net Sales Proceeds” means any Net Capital Event Proceeds other than proceeds from any transaction or
event described under clause (b) of the definition herein of Capital Transaction; provided, that the receipt by the Partnership of Capital Contributions shall not constitute Net Sales Proceeds; and provided further that the proceeds of a
Terminating Capital Transaction shall not constitute Net Sales Proceeds. 
 1.54 “Nonrecourse Deductions” has the meaning set forth in
Sections 1.704-2(b)(1) and 1.704-2(c) of the Treasury Regulations. 
 1.55 “Nonrecourse Liabilities” has the meaning set forth in
Section 1.704-2(b)(3) of the Treasury Regulations. 
 1.56 “Notice of Redemption Request” means a notice of redemption request
substantially in the form of Exhibit B attached hereto. 
 1.57 “Outside Limited Partners” means the Limited Partners, excluding
the Initial Limited Partner and any Limited Partner that is an Affiliate of the General Partner or the Initial Limited Partner. 
 1.58 “Partner” means a General Partner or a Limited Partner, and “Partners” means the General Partner and the Limited Partners, collectively. 
  

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 1.59 “Partner Minimum Gain” means an amount, with respect to each Partner’s Partner
Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i)(3). 
 1.60 “Partner Nonrecourse Debt” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(4). 
 1.61 “Partner Nonrecourse Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(i)(2), and the amount of Partner
Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Treasury Regulations Section 1.704-2(i)(2). 
 1.62 “Partnership” means Paladin Realty Income Properties, L.P., and any successor thereto. 
 1.63 “Partnership Asset” means the interest of the Partnership in any Entity or security (whether in corporate securities, equity, debt or hybrid
securities, partnership or joint venture interests, other contractual rights or otherwise), or any other Investments or other assets owned, directly or indirectly, by the Partnership, as determined by the General Partner. 
 1.64 “Partnership Interest” means the entire ownership interest of a Partner in the Partnership at any particular time which represents a Capital
Contribution by such Partner and which includes the right of such Partner to any and all benefits to which such Partner may be entitled as provided in this Agreement, together with the obligations of such Partner to comply with all terms and
provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership Units. 
 1.65 “Partnership Minimum
Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year shall be determined
in accordance with the rules of Treasury Regulations Section 1.704-2(d). 
 1.66 “Partnership Record Date” means the record date
established by the General Partner for the distribution by the Partnership of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets pursuant to Section 5.1 hereof, which record date shall be the same as the record
date established by the General Partner for a distribution to its stockholders of some or all of its portion of such distribution by the Partnership. 
 1.67 “Partnership Unit” means a unit of Partnership Interest with the rights, powers and duties set forth herein, designated as such on Exhibit A and expressed in the number set forth on Exhibit A, as
such exhibit may be amended from time to time. 
 1.68 “Percentage Interest” means, as to each Partner, the percentage determined by
dividing the total number of Partnership Units owned by such Partner by the aggregate number of Partnership Units then issued and outstanding, as set forth on Exhibit A, as such exhibit may be amended from time to time. 
  

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 1.69 “Permitted Transferee” means with respect to a Person, (a) any Affiliate of such Person,
(b) the spouse of such Person or any ancestor, descendent or sibling of such Person or of the spouse of such Person, or (c) any trust for the benefit of such Person or any other person described in clause (b) of this
Section 1.69. 
 1.70 “Person” means any individual or Entity, and the heirs, executors, administrators, legal representatives,
successors and assigns of such individual or Entity where the context so permits. 
 1.71 “Profits” and “Losses”
means, for each Fiscal Year or other period for which allocations to Partners are made, an amount equal to the Partnership’s taxable income or loss for such period determined in accordance with Federal income tax principles, with the following
adjustments: 
 (a) any income of the Partnership that is exempt from Federal income tax and not otherwise taken into account in
computing Profits or Losses pursuant to this provision shall be added to such taxable income or loss; 
 (b) any expenditure of the
Partnership described in Section 705(a)(2)(B) of the Code or treated as Code Section 705(a)(2)(B) expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the Treasury Regulations, and not otherwise taken into account in computing
Profits or Losses pursuant to this provision, shall be subtracted from such taxable income or loss; 
 (c) in the event the Carrying
Value of any Partnership asset is adjusted pursuant to this Agreement, 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 shall be allocated
in accordance with the provisions of Article 6; 
 (d) Book Gain or Book Loss from a Capital Transaction shall be taken into account in
lieu of any tax gain or tax loss recognized by the Partnership by reason of such Capital Transaction; 
 (e) in lieu of the
depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year or other period, computed as provided in this Agreement;

 (f) to the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or
Section 743(b) of the Code is required pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s interest in the
Partnership, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the Partnership asset) or loss (if the adjustment decreases the basis of the Partnership asset) from the disposition of the
Partnership asset and shall be taken into account for purposes of computing Profits or Losses; and 
  

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 (g) any items which are specially allocated pursuant to Section 6.2 shall not be taken into
account in computing Profits or Losses. 
 If the Partnership’s taxable income or loss for such Fiscal Year or other period, as adjusted in the manner
provided above, is a positive amount, such amount shall be the Partnership’s Profits for such Fiscal Year or other period; and if a negative amount, such amount shall be the Partnership’s Losses for such Fiscal Year or other period.

 1.72 “Prohibited Transferee” means any Person who is a: 
 (a) person or entity who is a “designated national,” “specially designated national,” “specially designated
terrorist,” “specially designated global terrorist,” “foreign terrorist organization,” or “blocked person” within the definitions set forth in the Foreign Assets Control Regulations of the United States Treasury
Department, 31 C.F.R., Subtitle B, Chapter V, as amended; 
 (b) person acting on behalf of, or an entity owned or controlled by, any
government against whom the United States maintains economic sanctions or embargoes under the Regulations of the United States Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, including, but not limited to, the “Government of
Sudan,” the “Government of Iran,” the “Government of Libya,” and the “Government of Iraq;” or 
 (c) person or entity subject to additional restrictions imposed by the following statutes or Regulations and Executive Orders issued thereunder: the Trading with the Enemy Act, 50 U.S.C. app. §§1 et. seq., the Iraq Sanctions
Act, Pub. L. 101-513, Title V, §§ 586 to 586J, 104 Stat. 2047, the National Emergencies Act, 50 U.S.C. §§ 1601 et. seq., the Antiterrorism and Effective Death Penalty Act of 1996, Pub. L. 104-132, 110 Stat. 1214-1319, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the United Nations Participation Act, 22 U.S.C. § 287c, the International Security and Development Cooperation Act, 22 U.S.C. § 2349aa-9, the Nuclear
Proliferation Prevention Act of 1994, Pub. L. 103-236, 108 Stat. 507, the Foreign Narcotics Kingpin Designation Act, 21 U.S.C. §§ 1901 et. seq., the Iran and Libya Sanctions Act of 1996, Pub. L. 104-172, 110 Stat. 1541, the Cuban Democracy
Act, 22 U.S.C. §§ 6001 et seq., the Cuban Liberty and Democratic Solidarity Act, 22 U.S.C. §§ 6021-91, and the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1997, Pub. L. 104-208, 110 Stat.
3009-172, or any other law of similar import as to any non-U.S. country, as each such Act or law has been or may be amended, adjusted, modified, or reviewed from time to time. 
 1.72 “Real Estate Related Investment” means any of the following: (1) loans on real property such as mortgages and mezzanine loans; (2) equity securities of public or private real estate
companies such as common stock, preferred stock and convertible securities; and (3) investments in debt securities such as commercial mortgage backed securities, or CMBS, commercial mortgages and other debt securities. 
  

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 1.73 “Real Property Investment” means any investment in unimproved and improved real property,
(including, without limitation, fee or leasehold interests, options and leases), either directly or through a joint venture. 
 1.74 “Redeeming
Partner” has the meaning set forth in Section 8.6. 
 1.75 “Redemption Amount” means either the Cash Amount or the REIT
Stock Amount, as determined by the General Partner in its sole and absolute discretion. 
 1.76 “Redemption Right” has the meaning set
forth in Section 8.6. 
 1.77 “Registration Statement” means the Registration Statement on Form S-11 to be filed by the General
Partner with the Securities and Exchange Commission, and any amendments thereto made at any time. 
 1.78 “REIT” means a “real
estate investment trust” as defined under Section 856 of the Code. 
 1.79 “REIT Notice” has the meaning set forth in
Section 8.6(g). 
 1.80 “REIT Stock” means the Common Stock and all other shares of capital stock of the General Partner.

 1.81 “REIT Stock Amount” means a number of shares of REIT Stock equal to the number of Partnership Units offered by redemption by a
Redeeming Partner; provided that in the event that the General Partner issues to all holders of REIT Stock rights, options, warrants, or convertible or exchangeable securities entitling stockholders of the General Partner to acquire REIT Stock, or
any other securities or property (collectively, the “rights”), then the REIT Stock Amount shall also include such rights that a holder of that number of shares of REIT Stock would be entitled to receive. 
 1.82 “Securities Act” means the Securities Act of 1933, as amended. 
 1.83 “Specified Redemption Date” means the tenth (10th) Business Day after receipt by the General Partner of a Notice of Redemption Request (or, in the case of the General Partner exercising the Redemption Right, after the date of
the General Partner’s receipt of a REIT Notice). 
 1.84 “Stock Option Plans” means, collectively, any and all plans adopted from
time to time by the General Partner pursuant to which REIT Stock is issued, or options to acquire REIT Stock are granted, to employees or directors of the General Partner, employees of the Partnership or employees of their respective Affiliates in
consideration for services or future services. 
 1.85 “Subsidiary” means, with respect to any Person, any Entity of which a majority
of the voting power or the voting equity securities, and/or the outstanding equity interests (whether or not voting), is owned, directly or indirectly, by such Person. 
  

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 1.86 “Substituted Limited Partner” means a Person who is admitted as a Limited Partner to the
Partnership pursuant to Section 11.4 hereof. 
 1.87 “Terminating Capital Transaction” means any sale or other disposition (other
than a deemed disposition pursuant to Code Section 708(b)(1)(B) and the Treasury Regulations thereunder) of all or substantially all of the assets of the Partnership or a related series of transactions that, taken together, result in the sale
or other disposition of all or substantially all of the assets of the Partnership. 
 1.88 “Termination Event” means any termination of
the Advisor as advisor to the Partnership and the General Partner under the terms of the Advisory Agreement, other than any termination for “Cause” (as defined in the Advisory Agreement) and other than any termination of the Advisory
Agreement due to the occurrence of a Listing Event. 
 1.89 “Transfer” means to give, sell, assign, pledge, hypothecate, devise,
bequeath, or otherwise dispose of, transfer, or permit to be transferred, during life or at death. The word “Transfer,” when used as a noun, shall mean any Transfer transaction. 
 1.90 “Treasury Regulations” means the Federal income tax regulations, including any temporary or proposed regulations, promulgated under the Code,
as such Treasury Regulations may be amended from time to time (it being understood that all references herein to specific sections of the Treasury Regulations shall be deemed also to refer to any corresponding provisions of succeeding Treasury
Regulations). 
 1.91 “Unrecovered Contribution Account” means, with respect to the General Partner, as of any relevant date, the
excess of (i) the aggregate amount of cash contributed or deemed contributed by the General Partner to the Partnership pursuant to the provisions of Article IV as of such date, over (ii) the sum of (A) the cumulative distributions of
Available Cash and Net Capital Event Proceeds made to the General Partner prior to such relevant date pursuant to Section 5.1 hereof, and (B) the cumulative amounts paid to the General Partner in redemption of its Partnership Units
pursuant to Section 8.6(g) as of such date. All amounts distributed and paid to the General Partner pursuant to Sections 5.1 and 8.6(g) shall first be applied to reduce the Unrecovered Contribution Account of the General Partner until the
balance of such Unrecovered Contribution Account equals zero ($0), and then shall be applied to reduce the 8% Return Account of the General Partner. 
 1.92 “Valuation Date” means the date of receipt by the General Partner of a Notice of Redemption Request (or, in the case of the General Partner exercising the Redemption Right, the date of the General Partner’s
receipt of a REIT Notice) or, if such date is not a Business Day, the first Business Day thereafter. 
 1.93 “Value” means, with
respect to a share of REIT Stock, (a) if REIT Stock is traded on a national securities exchange or otherwise traded over-the-counter, the average of the daily Market Price (as defined below) for shares of REIT Stock for the ten
(10) consecutive trading days immediately preceding the Valuation Date, or (b) if REIT Stock is not traded in a manner described in clause (a), the value of a share of REIT Stock as determined by the General Partner acting in good faith on
the basis of such 

  

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quotations and other information as it considers, in its reasonable judgment, appropriate. The “Market Price” for each such trading day shall be
(i) the last reported sale price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation source designated by the General Partner; or (ii) if no
such last reported sale price or closing bid and asked prices are available, the average of the reported high bid and low asked prices on such day, as reported by a reliable quotation source designated by the General Partner, or (iii) if there
shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than ten (10) days prior to the date in question) for which prices have been so reported. In the
event the REIT Stock Amount includes rights that a holder of REIT Stock would be entitled to receive, then the Value of such rights shall be determined by the General Partner acting in good faith on the basis of such quotations and other information
as it considers, in its reasonable judgment, appropriate. 
 ARTICLE 2 
 ORGANIZATIONAL MATTERS 
  

	2.1	Formation 

 The Partnership is a limited partnership
organized pursuant to the provision of the Act and upon the terms and conditions set forth in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of
the Partnership shall be governed by the Act. 
  

	2.2	Name 

 The name of the Partnership is Paladin Realty
Income Properties, L.P. The Partnership’s business may be conducted under such name or under any other name or names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words
“Limited Partnership,” “L.P.,” “Ltd.” or similar words or letters shall be included in the Partnership’s name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The
General Partner, acting in its sole and absolute discretion without the Consent of any Limited Partner, may change the name of the Partnership. The General Partner shall notify the Limited Partners of any such name change in the next regular
communication to the Limited Partners. Upon termination of the Partnership or the termination, resignation or withdrawal of the Initial Limited Partner as the Advisor, all of the Partnership’s right, title and interest in and to the use of the
name “Paladin Realty Income Properties, L.P.” and any variation thereof, shall become the property of the Initial Limited Partner, and if requested to do so by the Initial Limited Partner, the Partnership shall change the name of the
Partnership to exclude the term “Paladin.” Neither the Partnership nor any Limited Partner shall have any right or interest in and to the use of any such name or mark. 
  

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	2.3	Registered Office and Agent 

 The address of the
registered office of the Partnership in the State of Delaware shall be c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808, or such other place as may be designated from time to time by the General Partner. The
name of the registered agent for service of process on the Partnership in the State of Delaware at such address shall be Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808, or such other Person as may be designated
from time to time by the General Partner. 
  

	2.4	Principal Place of Business 

 The Partnership may
maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable. The principal office of the Partnership shall be 10880 Wilshire Blvd., Los Angeles, California 90024, Suite 1400 or such
other place as the General Partner may from time to time designate by notice to the Limited Partners. 
  

	2.5	Term and Termination 

 The term of the Partnership
shall commence on the date hereof and shall continue until February 23, 2104, unless the Partnership is dissolved sooner pursuant to the provisions of Article 13 or as otherwise provided by law. 
  

	2.6	Power of Attorney 

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

(i) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices: 
 (A) all certificates, documents and other instruments (including, without limitation, this Agreement and the Certificate and all
amendments or restatements thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the
Limited Partners have limited liability) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property, including, without limitation, any documents necessary or advisable to convey
any Contributed Property to the Partnership; 
 (B) all instruments that the General Partner or any Liquidator deems
appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement in accordance with its terms; 
 (C) all conveyances and other instruments or documents that the General Partner or any Liquidator deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms
of this Agreement, including, without limitation, a certificate of cancellation; 
  

 -16 - 

 (D) all instruments relating to the admission, withdrawal, removal or substitution
of any Partner pursuant to, or other events described in, Article 11, 12 or 13 hereof or any Capital Contribution of any Partner; 
 (E) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; 
 (F) all amendments to this Agreement as provided in Article 14 hereof; and 
 (G) all other instruments that may be required by law to be filed on behalf of or relating to the Partnership and that are not
inconsistent with this Agreement; and 
 (ii) execute, swear to, seal, acknowledge and file all ballots, consents,
approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other
action which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, to effectuate the terms or intent of this
Agreement. 
 Nothing contained herein shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except
in accordance with Article 14 hereof or as may be otherwise expressly provided for in this Agreement. 
 (b) The foregoing power of
attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact that each of the Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated by this
Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the subsequent Incapacity of any Limited Partner or Assignee and/or the Transfer of all or any portion of such Limited
Partner’s or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns and personal representatives. 
 (c) Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator, acting in
good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator, taken in good
faith under such power of attorney. 
 (d) Each Limited Partner or Assignee shall execute and deliver to the General Partner or the
Liquidator, within fifteen (15) days after receipt of the General Partner’s or Liquidator’s request therefor, such further designation, powers of attorney and other instruments as the General Partner or the Liquidator, as the case may
be, deems necessary to effectuate this Agreement and the purposes of the Partnership. 
  

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 (e) Any Person dealing with the Partnership may conclusively presume and rely upon the fact that any
instrument referred to in this Section 2.6, executed by the General Partner or the Liquidator acting as attorney-in-fact, is authorized by and binding on the Partnership, without further inquiry. 
  

	2.7	Effectiveness of this Agreement 

 This Agreement
shall govern the operations of the Partnership and the rights and restrictions applicable to the Partners, to the extent permitted by law. Pursuant to Section 17-101(12) of the Act, all Persons who become holders of Partnership Interests shall
be bound by the provisions of this Agreement. The execution by a Person of this Agreement and acceptance thereof by the General Partner in accordance with the terms of this Agreement or the receipt of Partnership Interests by a Person as a successor
or assign of an existing Partner and the consent of the General Partner to the admission of such Person as a Substituted Limited Partner in accordance with the terms of this Agreement shall be deemed to constitute a request that the records of the
Partnership reflect such admission, and shall be deemed to be a sufficient act to comply with the requirements of Section 17-101(12) of the Act and to so cause that Person to become a Partner as of the date of acceptance of its Capital
Contribution by the Partnership and to bind that Person to the terms and conditions of this Agreement (and to entitle that Person to the rights of a Partner hereunder). 
 ARTICLE 3 
 PURPOSE AND POWERS 
  

	3.1	Purpose and Business 

 The purpose and nature of the
business to be conducted by the Partnership is to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Act including, without limitation, to engage in the following activities: 
 (a) to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange and otherwise dispose
of or deal with Investments; 
 (b) acquire own, hold for investment and ultimately dispose of general and limited partner interests,
and stock, warrants, options or other equity and debt interests in Entities, and exercise all rights and powers granted to the owner of any such interests; 
 (c) make any type of investment and engage in any other lawful act or activity for which limited partnerships may be formed under the Act, and by such statement all lawful acts and activities shall be within the
purposes of the Partnership; 
 (d) to undertake such other activities as may be necessary, advisable, desirable or convenient to the
business of the Partnership; and 
  

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 (e) to engage in such other ancillary activities as shall be necessary or desirable to effectuate
the foregoing purposes; 
 provided, however, that such business shall be limited to and conducted in such a manner as to permit the General Partner at all
times to be classified as a REIT, unless the General Partner determines not to qualify as a REIT or ceases to qualify as a REIT for reasons other than the conduct of the business of the Partnership. 
  

	3.2	Powers 

 (a) The Partnership is empowered to do
any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described in Section 3.1 and for the protection and benefit of the
Partnership including, without limitation, full power and authority to enter into, perform, and carry out contracts of any kind, to borrow money and to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other
Lien, and, directly or indirectly, to acquire, hold, own, develop, construct, improve, maintain and operate Investments, and to sell, lease, transfer, encumber, convey, exchange and otherwise dispose of Investments. 
 (b) The General Partner also is empowered to do any and all acts and things necessary, appropriate or advisable to ensure that the Partnership will
not be classified as a “publicly traded partnership” within the meaning of Section 7704 of the Code, including, but not limited to, imposing restrictions on Transfers of Partnership Units. 
 ARTICLE 4 
 CAPITAL CONTRIBUTIONS;
PARTNERSHIP UNITS; 
 ADDITIONAL FUNDS 
  

	4.1	Capital Contributions of the Partners 

 (a) Initial Capital Contributions. The General Partner and the Initial Limited Partner have made the Capital Contributions as set forth on Exhibit A to this Agreement in exchange for the number of Partnership Units set
forth opposite their names on Exhibit A. At such time as Additional Limited Partners are admitted to the Partnership, each such Additional Limited Partner shall make Capital Contributions in the amount set forth opposite such Limited
Partner’s name on Exhibit A, as it shall be amended at the time of such contribution. 
 (b) Deemed Capital
Contributions. To the extent the Partnership acquires any property by the merger of any other Person into the Partnership or the contribution of assets by any other Person to the Partnership, Persons who receive Partnership Interests in exchange
for their interests in the Person merging into or contributing assets to the Partnership shall become Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement or contribution agreement and as set
forth in Exhibit A, as it shall be amended to reflect such deemed Capital Contributions. 
  

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 (c) Partnership Units. Each Partner shall own Partnership Units in the amounts set forth for
such Partner in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to time by the General Partner to the extent
necessary to reflect accurately redemptions, additional Capital Contributions, the issuance of additional Partnership Units or similar events having an effect on the number of Partnership Units held by, and the Percentage Interest of, any Partner.
Each Partnership Unit shall entitle the holder thereof to one vote on all matters on which the Partners (or any portion of the Partners) are entitled to vote under this Agreement. 
 (d) No Additional Capital Contributions. Except as provided in Sections 4.3(a) and 10.5, the Partners shall have no obligation to make any
additional Capital Contributions or provide any additional funding to the Partnership (whether in the form of loans or otherwise) and no Partner shall have any obligation to restore any deficit that may exist in its Capital Account, either upon a
liquidation of the Partnership or otherwise. 
  

	4.2	Issuance of Additional Partnership Interests 

 (a) The General Partner is authorized to cause the Partnership to issue additional Partnership Interests (or options or warrants to acquire Partnership Interests) in the form of Partnership Units or other Partnership Interests in one
or more series or classes to any Persons at any time or from time to time, on such terms and conditions as the General Partner shall establish in each case in its sole and absolute discretion subject to Delaware law, including, without limitation,
(i) the allocations of items of Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests, (ii) the right of each class or series of Partnership Interests to share in Partnership distributions,
and (iii) the rights of each class or series of Partnership Interest upon dissolution and liquidation of the Partnership; provided, that, no such Partnership Interests shall be issued to the General Partner unless either (A) the
Partnership Interests are issued pursuant to Section 4.3, or (B) the additional Partnership Interests are issued to all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such
class. 
 (b) Subject to the limitations set forth in Sections 4.2(a) and 4.3(a), the General Partner may take such steps as it, in its
sole and absolute discretion, deems necessary or appropriate to admit any Person as a Limited Partner of the Partnership in accordance with Section 12.2 or to issue any Partnership Interests, including, without limitation, amending the
Certificate, Exhibit A or any other provision of this Agreement. 
 (c) Without limiting the foregoing, the General Partner is
expressly authorized to cause the Partnership to issue Partnership Interests (or options to acquire Partnership Interests) for less than fair market value, so long as the General Partner concludes in good faith that such issuance is in the interest
of the Partnership and the Partners (for example, and not by way of limitation, the issuance of Partnership Units in connection with a Stock Option Plan providing for employee purchases of REIT Stock and corresponding Partnership Units at a discount
from fair market value or employee options that have an exercise price that is less than the fair market value of the REIT Stock and corresponding Partnership Units covered by the option, either at the time of issuance or at the time of exercise).

  

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	4.3	Issuance of Securities by the General Partner 

 (a) General. The General Partner shall not issue any debt securities, preferred stock, Common Stock, any other class of REIT Stock or rights, options, warrants or other securities convertible into or exchangeable for preferred
stock, Common Stock or any other class of REIT Stock (collectively, “Securities”), other than (1) as payment of the REIT Stock Amount in connection with a redemption of Partnership Units pursuant to Section 8.6,
(2) upon the conversion, exchange or exercise of other outstanding securities of the General Partner in accordance with the terms of such securities, or (3) to all holders of REIT Stock on a pro rata basis, unless the General
Partner shall: 
 (i) in the case of REIT Stock or other equity Securities other than Securities described in clause
(ii) below, (A) contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received upon the issuance of such Securities, and (B) receive from the Partnership in consideration for
such contributions Partnership Interests with the same terms and conditions, including dividend, dividend priority and liquidation preference, as are applicable to such Securities (including, for purposes of clarification, Partnership Units in the
case of any issuance of Common Stock by the General Partner); 
 (ii) in the case of options, warrants or other rights to
purchase REIT Stock, or other equity securities convertible into or exchangeable for REIT Stock, (A) contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received upon the issuance of
such equity Securities, and (B) receive from the Partnership in consideration for such contributions a number of options, warrants or other rights to purchase Partnership Interests equal to the number of such Securities issued by the General
Partner, with equivalent rights, preferences and limitations to the terms of such equity Securities; and 
 (iii) in the
case of debt securities, lend to the Partnership the proceeds of or consideration received for such Securities on the same terms and conditions, including interest rate and repayment schedule, as shall be applicable with respect to or incurred in
connection with the issuance of such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable). 
 (b) Splits. The Partnership shall (i) make a distribution in Partnership Units, (ii) subdivide its outstanding Partnership Units,
or (iii) combine its outstanding Partnership Units into a smaller number of Partnership Units, in the event the General Partner takes an analogous action with respect to the Common Stock. The intent of the previous sentence is that one
Partnership Unit remains the economic equivalent of one share of Common Stock without dilution. If the General Partner determines that it is necessary or desirable to make any filings under the Act or otherwise in order to reference the existence of
such action, the General Partner may cause such filings to be made, which filings might take the form of amendments to the Certificate; provided, however, that, unless specifically required by this Agreement or the Act after giving effect to the
terms of this Agreement, no approval or consent of any Partners shall be required in connection with the making of any such filing. 
  

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 (c) Treatment of Proceeds. If the proceeds actually received by the General Partner in
connection with an issuance of Securities by the General Partner are less than the gross proceeds of such offering, grant, award or issuance as a result of any underwriter’s discounts, commissions or other fees or expenses paid or incurred in
connection with such offering, grant, award or issuance, then the General Partner shall be deemed to have made a Capital Contribution to the Partnership in the amount of the gross proceeds of such offering, grant, award or issuance and the
Partnership shall be deemed simultaneously to have paid pursuant to Section 7.3(c) for the amount of such expenses. 
  

	4.4	Additional Funds 

 (a) The sums of money
required to finance the business and affairs of the Partnership shall be derived from the initial Capital Contributions made to the Partnership by the Partners as set forth in Section 4.1 and from funds generated from the operation and business
of the Partnership. 
 (b) In the event additional financing is needed from sources other than as set forth in Section 4.4(a) for
any reason, the General Partner may, in its sole and absolute discretion, in such amounts and at such times as it solely shall determine to be necessary or appropriate: 
 (i) cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in
accordance with Section 4.2; 
 (ii) make additional Capital Contributions to the Partnership (subject to the
provisions of Section 4.3(a)); 
 (iii) cause the Partnership to borrow money, enter into loan arrangements, issue
debt securities, obtain letters of credit or otherwise borrow money on a secured or unsecured basis; 
 (iv) make a loan
or loans to the Partnership (subject to Section 4.3(a)); or 
 (v) cause the Partnership to sell any assets or
properties directly or indirectly owned by the Partnership. 
  

	4.5	No Third-Party Beneficiary 

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

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	4.6	No Interest 

 No Partner shall be entitled to
interest on any Capital Contribution or on such Partner’s Capital Account. 
  

	4.7	No Preemptive Rights 

 Subject to any preemptive
rights that may be granted in connection with the issuance of Partnership Interests under Section 4.3(a), no Person shall have any preemptive or other similar right with respect to any: 
 (a) additional Capital Contributions or loans to the Partnership; or 
 (b) issuance or sale of any Partnership Units or other Partnership Interests. 
  

	4.8	Capital Accounts; Adjustments to Carrying Values 

 (a) Capital Accounts. The Partnership shall establish and maintain throughout the life of the Partnership for each Partner a separate “Capital Account” in accordance with Treasury Regulations Section 1.704-1(b).
Such Capital Account shall be increased by (i) the amount of all Capital Contributions made by such Partner to the Partnership pursuant to this Agreement and (ii) all Profits and other items of income and gain allocated to such Partner
pursuant to Section 6.2, and decreased by (1) the amount of cash or Agreed Value of all actual and deemed distributions of cash or property made to such Partner pursuant to this Agreement and (2) all Losses and other items of loss and
deduction allocated to such Partner pursuant to Section 6.2 of this Agreement. Any other Partnership item which is required or authorized under Treasury Regulation Section 1.704-1(b) to be reflected in Capital Accounts shall be so
reflected. 
 (b) Adjustments to Carrying Values. Consistent with the provisions of Treasury Regulations
Section 1.704-1(b)(2)(iv)(f), and as provided in this Section 4.8(b), the Carrying Values of all Partnership Assets shall be adjusted upward or downward to reflect any Book Gains or Book Losses attributable to such Partnership Asset, as of
the times of the adjustments provided in this Section 4.8(b), as if such Book Gain or Book Loss had been recognized on an actual sale of each such Partnership Asset and allocated pursuant to Section 6.1. Such adjustments shall be made as
of the following times: (i) as of the end of the calendar quarter immediately prior to the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital
Contribution; (ii) as of the end of the calendar quarter immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership;
(iii) upon the occurrence of a Listing Event or a Termination Event if the Advisor is entitled to a distribution under Section 5.1(d) or 5.1(e) as a result of such event, and (iv) at such other times as the General Partner may
determine so long as such adjustment is made under generally accepted industry accounting practices within the meaning of Treasury Regulations Section 1.704-1(b)(2)(iv)(f)(5). In accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv)(e), the Carrying Values of Partnership assets distributed in kind shall be adjusted upward or downward to reflect any Book Gain or Book Loss attributable to such Partnership Asset, as of the time any such asset is
distributed. If the Carrying Values of the Partnership Assets are adjusted as a result of a Listing Event, the total Carrying Value of all Partnership 

  

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Assets shall be deemed to equal the Market Value plus the total amount of liabilities of the Partnership as of the date of the Listing Event. If the Carrying
Values of the Partnership Assets are adjusted as a result of a Termination Event, the total Carrying Value of all Partnership Assets shall be deemed to equal the Appraised Value as of the Termination Date. 
 ARTICLE 5 
 DISTRIBUTIONS

  

	5.1	Distributions 

 (a) General. Subject to
the provisions of Sections 5.3, 5.4, 8.6(b), 11.6(d) and 13.2, the General Partner shall cause the Partnership to distribute to the Partners as of the applicable Partnership Record Date, at such times as the General Partner shall determine, amounts
of Available Operating Cash, Net Sales Proceeds and Net Capital Event Proceeds in the manner set forth in this Section 5.1. 
 (b) Available Operating Cash. Available Operating Cash shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of
the applicable Partnership Record Date. 
 (c) Net Sales Proceeds and Net Capital Event Proceeds. Subject to Section 13.2,
Net Sales Proceeds shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of the applicable Partnership Record Date until the
Unrecovered Contribution Account and 8% Return Account of the General Partner has been reduced to zero ($0). Thereafter, 10% of any Net Sales Proceeds shall be distributed to the Advisor (such distributions, the “Advisor Participation in Sales
Proceeds”), and 90% of such Net Sales Proceeds shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of the applicable
Partnership Record Date. Any Net Capital Event Proceeds in excess Net Sales Proceeds of shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage
Interests as of the applicable Partnership Record Date. 
 (d) Distribution to Advisor Upon Listing. Upon a Listing Event, the
Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c). If the Advisor has not been terminated under the Advisory Agreement as of the Listing Date, the Advisor shall receive
a distribution, which shall be paid within five (5) Business Days of the determination of the Market Value, in an amount equal to 10% of the amount, if any, by which the Market Value exceeds the Unrecovered Contribution Account and the 8%
Return Account of the General Partner on the Listing Date. 
 (e) Distribution to Advisor Upon Termination. Upon a Termination
Event, the Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c). If a Listing Event has not occurred as of the date of a Termination Event, and the Advisor was not
terminated for Cause (as defined in the Advisory Agreement), then the Advisor shall 

  

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receive a distribution, which shall be paid within five (5) Business Days of the date of such Termination Event, in an amount equal to 10% of the
amount, if any, by which (i) the Appraised Value of all of the Partnership Assets as of the date of the Termination Event, less any indebtedness of the Partnership exceeds the Unrecovered Contribution Account and the 8% Return Account of the
General Partner as of the Date of the Termination Event. 
  

	5.2	REIT Status 

 The General Partner shall take such
action as it deems necessary or advisable to cause the Partnership to distribute sufficient amounts under this Article 5 to enable the General Partner to pay stockholder dividends that will enable the General Partner to (a) continue to satisfy
its obligations as a REIT under the Code and the Treasury Regulations and (b) avoid any Federal income or excise tax liability; provided, however, the General Partner shall not be bound to comply with this covenant to the extent such
distributions would violate applicable Delaware law. 
  

	5.3	Withholding 

 With respect to any withholding tax or
other similar tax liability or obligation to which the Partnership may be subject as a result of any act by or status of any Partner or to which the Partnership becomes subject with respect to any Partnership Interest, the Partnership shall have the
right to withhold amounts of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets distributable to such Partner or with respect to such Partnership Interests, to the extent of the amount of such withholding tax or other
similar tax liability or obligation pursuant to the provisions contained in Section 10.5. 
  

	5.4	Additional Partnership Interests 

 If the
Partnership issues Partnership Interests in accordance with Section 4.2 or 4.3, the distribution priorities set forth in Section 5.1 shall be amended, as necessary, to reflect any distribution priority of such Partnership Interests and
corresponding amendments shall be made to the provisions of Article 6. If a new or existing Partner acquires an additional Partnership Interest in exchange for a Capital Contribution on any date other than a Partnership Record Date, such Partner
shall not be entitled to any distributions with respect to such additional Partnership Interest until the first Partnership Record Date following the date of such issuance. 
 ARTICLE 6 
 ALLOCATIONS 
  

	6.1	Allocation of Profits and Net Losses 

 (a) General. Except as otherwise provided in this Article 6 and in Section 11.6(c), and after making any special allocations under Section 6.2, Profits and Losses for each Fiscal Year shall be allocated among the
Partners in accordance with their respective Percentage Interests as of the end of such Fiscal Year, subject to any rights of holders of Partnership Interests other than Partnership Units. 
  

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 (b) Adjustment. If the amount of Losses for any Fiscal Year that otherwise would be allocated
to a Partner under Section 6.1(a) or this Section 6.1(b) would cause or increase an Adjusted Capital Account Deficit of such Partner as of the last day of such Fiscal Year (after all other allocations have been made pursuant to this
Article 6), then such Partner shall be allocated that amount of Losses which does not cause or increase such Adjusted Capital Account Deficit, and the remainder of such Losses that would have been allocated to such Partner shall be allocated to the
other Partners in proportion to their Percentage Interests. 
  

	6.2	Special Allocations 

 Notwithstanding any provisions
of Section 6.1, the following special allocations shall be made in the following order of priority: 
 (a) Minimum Gain
Chargeback (Nonrecourse Liabilities). Except as otherwise provided in Section 1.704-2(f) of the Treasury Regulations, if there is a net decrease in Partnership Minimum Gain for any Fiscal Year, each Partner shall be specially allocated
items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain to the extent required by Treasury Regulations
Section 1.704-2(f). The items to be so allocated shall be determined in accordance with Sections 1.704-2(f) and (j)(2) of the Treasury Regulations. This subparagraph is intended to comply with the minimum gain chargeback requirement in said
section of the Treasury Regulations and shall be interpreted consistently therewith. Allocations pursuant to this subparagraph shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant hereto.

 (b) Partner Minimum Gain Chargeback. Except as otherwise provided in Section 1.704-2(i)(4) of the Treasury Regulations,
if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Fiscal Year, each Partner who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance
with Section 1.704-2(i)(5) of the Treasury Regulations, shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to that Partner’s share of the net decrease in
the Partner Minimum Gain attributable to such Partner Nonrecourse Debt to the extent and in the manner required by Section 1.704-2(i) of the Treasury Regulations. The items to be so allocated shall be determined in accordance with Sections
1.704-2(i)(4) and (j)(2) of the Treasury Regulations. This subparagraph is intended to comply with the minimum gain chargeback requirement with respect to Partner Nonrecourse Debt contained in said section of the Treasury Regulations and shall be
interpreted consistently therewith. Allocations pursuant to this subparagraph shall be made in proportion to the respective amounts to be allocated to each Partner pursuant hereto. 
 (c) Qualified Income Offset. In the event a Partner unexpectedly receives any adjustment, allocation or distribution described in Treasury
Regulation Sections 1.704 1(b)(2)(ii)(d)(4), (5) and (6) that causes or increases an Adjusted Capital Account Deficit, gross items of income and gain shall be specially allocated to such Partner so as to eliminate such Adjusted Capital
Account Deficit as quickly as possible. This subparagraph is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and shall be interpreted consistently therewith.

  

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 (d) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be allocated to
the Partners in accordance with their respective Percentage Interests. 
 (e) Partner Nonrecourse Deductions. Partner Nonrecourse
Deductions for any Fiscal Year with respect to a Partner Nonrecourse Debt shall be specially allocated to the Partners that bear the economic risk of loss for such Partner Nonrecourse Debt (as determined under Sections 1.704-2(b)(4) and
1.704-2(i)(1) of the Treasury Regulations). 
 (f) Allocations of Book Gain to Advisor. 
 (i) If the Partnership distributes Net Capital Event Proceeds to the Advisor pursuant to Section 5.1(c) during any Fiscal year,
then any Book Gain realized by the Partnership for such Fiscal Year and, if necessary, for subsequent Fiscal Years, shall be allocated to the Advisor until the cumulative Book Gain allocated to the Advisor under this Section 6.2(f)(i) is equal
to the cumulative Net Capital Event Proceeds distributed to the Advisor pursuant to Section 5.1(c). 
 (ii) If a
Listing Event or Termination Event occurs and the Advisor is entitled to a distribution under Section 5.1(d) or 5.1(e), then any Book Gain attributable to the adjustment to Carrying Values required under Section 4.8(b) shall be allocated
to the Advisor until the cumulative Book Gain allocated to the Advisor under this Section 6.2(f)(ii) is equal to the amount to which the Advisor is entitled under Section 5.1(d) or 5.1(e), as the case may be. If there is insufficient Book
Gain attributable to such adjustment to Carrying Values to allocate the full amount to be allocated to the Advisor under the immediately preceding sentence, then any subsequent Book Gain realized by the Partnership shall be allocated to the Advisor
in an amount equal to such shortfall. 
 (g) Curative Allocations. The allocations set forth in Section 6.1(b) and Sections
6.2(a) through (e) hereof (the “Regulatory Allocations”) are intended to comply with certain requirements of the Treasury Regulations. It is the intent of the Partners that, to the extent possible all Regulatory Allocations
that are made be offset either with other Regulatory Allocations or with special allocations pursuant to this Section 6.2(g). Therefore, notwithstanding any other provision of this Article 6 (other than the Regulatory Allocations), the General
Partner shall make such offsetting special allocations in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Partner would have had if the Regulatory Allocations were not part of the Agreement and all Partnership items were allocated pursuant to Sections 6.1(a) and 6.2(f). In exercising its discretion under this Section 6.2(g),
the General Partner shall take into account future Regulatory Allocations under Sections 6.2(a) and 6.2(b) that, although not yet made, are likely to offset other Regulatory Allocations previously made under Sections 6.2(d) and 6.2(e). 

 

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 (h) Changes in Interest. If during any Fiscal Year there is a change in any Partner’s
Percentage Interest, then for purposes of determining the Profits, Losses, or any other items allocable to such Partner for such Fiscal Year, Profits, Losses, and any such other items shall be determined on a daily, monthly, or other basis, as
determined by the General Partner using any permissible method under Code Section 706 and the Treasury Regulations thereunder. 
  

	6.3	Tax Allocations 

 (a) Except as otherwise
provided in this Section 6.3, items of Partnership income, gain, loss and deduction shall be determined in accordance with Code Section 703, and the Partners’ distributive shares of such items for purposes of Code Section 702
shall be determined according to their respective shares of Profits or Losses to which such items relate. 
 (b) Items of Partnership
taxable income, gain, loss and deduction with respect to any Contributed Property contributed by a Partner shall be allocated among the Partners in accordance with Code Section 704(c) so as to take account of any variation between the adjusted
basis of such property to the Partnership for Federal income tax purposes and its Carrying Value. Such allocations shall be made using any method chosen by the General Partner that is permitted by applicable Treasury Regulations. 
 (c) If the Carrying Value of any asset of the Partnership is adjusted pursuant to Section 4.8(b), subsequent allocations of items of income,
gain, loss and deduction with respect to such property shall take account of any variation between the adjusted basis of such asset for Federal income tax purposes and its Carrying Value. Such allocations shall be made using any method chosen by the
General Partner that is permitted by applicable Treasury Regulations, as determined by the General Partner. 
 (d) Allocations pursuant
to this Section 6.3 are solely for purposes of Federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Profits, Losses, distributions or other
Partnership items pursuant to any provision of this Agreement. 
  

	6.4	Revisions to Allocations to Reflect Issuance of Partnership Interests 

 If the Partnership issues Partnership Interests to the General Partner or any additional Limited Partner pursuant to Article 4, the General Partner shall make any such revisions to this Article 6 as it deems necessary
to reflect the terms of the issuance of such Partnership Interests, including making preferential allocations to classes of Partnership Interests that are entitled thereto. Such revisions shall not require the consent or approval of any other
Partner. 
  

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 ARTICLE 7 
 MANAGEMENT AND OPERATIONS OF BUSINESS 
  

	7.1	Management 

 (a) Management By the General
Partner. Except as otherwise expressly provided in this Agreement, full, complete and exclusive discretion to manage and control the business and affairs of the Partnership are and shall be vested in the General Partner, and no Limited Partner
other than the Advisor shall have any right to participate in or exercise control or management power over the business and affairs of the Partnership. The General Partner may not be removed by the Limited Partners with or without cause. 

(b) Power and Authority of the General Partner. In addition to the powers now or hereafter granted a general partner of a limited
partnership under applicable law or which are granted to the General Partner under any other provision of this Agreement, the General Partner shall have full power and authority to do all things deemed necessary or desirable by it to conduct the
business of the Partnership, to exercise all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including, without limitation: 
 (i) (A) the making of any expenditures, the lending or borrowing of money (including, without limitation, making prepayments on loans
and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as will permit the General Partner (so long as the General Partner qualifies as a REIT) to (1) avoid the payment of any Federal income or excise
tax (including any excise tax pursuant to Section 4981 of the Code) and (2) make distributions to its stockholders in amounts sufficient to permit the General Partner to maintain REIT status), (B) the assumption or guarantee of, or
other contracting for, indebtedness and other liabilities, (C) the issuance of any evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other lien or encumbrance on the Partnership’s assets), and
(D) the incurring of any obligations it deems necessary for the conduct of the activities of the Partnership, including the payment of all expenses associated with the General Partner; 
 (ii) the making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies
having jurisdiction over the business or assets of the Partnership or the General Partner; 
 (iii) the acquisition,
disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any assets, including Investments, of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available in
connection with any assets at any time held by the Partnership) or the merger or other combination of the Partnership with or into another entity on such terms as the General Partner deems proper; 
 (iv) the use of the assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with the terms
of this Agreement and on any terms the General Partner sees fit, including, without limitation, 
 (A) the financing of
the conduct of the operations of the General Partner, the Partnership or any of the Partnership’s Subsidiaries, 
  

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 (B) the lending of funds to other Persons (including, without limitation, the
Subsidiaries of the Partnership and/or the General Partner) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and 
 (C) the making of capital contributions to the Partnership’s Subsidiaries; 
 (v) the development, expansion, construction, management, operation, leasing, repair, alteration, demolition or improvement of any
real property in which the Partnership or any Subsidiary of the Partnership owns a direct or indirect interest; 
 (vi) the negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the
General Partner’s powers under this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other professional advisors and other agents and the payment of their expenses and compensation out of
the Partnership’s assets; 
 (vii) the distribution of Partnership cash or other Partnership assets in accordance
with this Agreement; 
 (viii) the holding, management, investment and reinvestment of cash and other assets of the
Partnership; 
 (ix) the collection and receipt of revenues and income of the Partnership; 
 (x) the establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership
(including, without limitation, employees having titles such as “president,” “vice president,” “secretary” and “treasurer” of the Partnership), and agents, outside attorneys, accountants, consultants and
contractors of the Partnership, and the determination of their compensation and other terms of employment or engagement; 
 (xi) the formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership or third parties) in, and the contribution of property to, any other Entities that the General
Partner deems desirable (including, without limitation, the acquisition of interests in, and the contributions of funds or property to, or making of loans to, Subsidiaries of the Partnership and any other Person from time to time), or the incurrence
of indebtedness on behalf of such Persons or the guarantee of the obligations of such Persons; provided that, as long as the General Partner has determined to elect to qualify as a REIT or to continue to qualify as a REIT, the Partnership may not
engage in any such formation, acquisition or contribution that would cause the General Partner to fail to qualify as a REIT; 
  

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 (xii) the control of any matters affecting the rights and obligations of the
Partnership, including: 
 (A) the settlement, compromise, submission to arbitration or any other form of dispute
resolution, or abandonment of, any claim, cause of action, liability, debt or damages, due or owing to or from the Partnership, 
 (B) the commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of dispute resolution, and 
 (C) the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other forms
of dispute resolution, the incurring of legal expenses, and the indemnification of any Person against liabilities and contingencies to the extent permitted by law; 
 (xiii) the undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries or
any other Person (including, without limitation, the contribution or loan of funds by the Partnership to such Persons); 
 (xiv) the determination of the fair market value of any Partnership Assets distributed in kind using such reasonable method of valuation as the General Partner, in its sole discretion, may adopt; 
 (xv) the exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any
right, including the right to vote, appurtenant to any asset or investment held by the Partnership; 
 (xvi) the exercise
of any of the powers of the General Partner enumerated in this Agreement or the undertaking of any action on behalf of or in connection with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect
interest, or jointly with any such Subsidiary or other Person; 
 (xvii) the making, execution and delivery of any and
all deeds, leases, notes, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary or appropriate, in the judgment of the
General Partner, for the accomplishment of any of the foregoing; 
 (xviii) the issuance of additional Partnership
Interests in connection with Capital Contributions by Additional Limited Partners and additional Capital Contributions by Partners pursuant to Article 4 hereof; 
 (xix) the opening of bank accounts on behalf of, and in the name of, the Partnership and its Subsidiaries; and 
 (xx) the amendment and restatement of Exhibit A to reflect accurately at all times the Capital Contributions of, Partnership
Units held by and Percentage Interests of the Partners as the same are adjusted from time to time to the extent necessary to reflect any Capital Contributions, redemptions, issuance of Partnership Units, admission of any Additional Limited Partner
or any Substituted Limited Partner or otherwise, which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment of this Agreement, as long as the matter or event being reflected in
Exhibit A otherwise is authorized by this Agreement. 
  

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 (c) Advisor. The General Partner has engaged the Advisor to serve as the advisor to the
Partnership and the General Partner pursuant to the terms and conditions of the Advisory Agreement. In consideration for the services to be provided to the Partnership and the General Partner, the Advisor will receive the fees described in the
Advisory Agreement. In addition, the Advisor is entitled to receive distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c) hereof, and distributions upon a Listing Event under Section 5.1(d) hereof or upon a
Termination Event under Section 5.1(e) hereof. 
 (d) Insurance. At all times from and after the date hereof, the General
Partner may cause the Partnership to obtain and maintain: 
 (i) casualty, liability and other insurance on the
Investments of the Partnership; 
 (ii) liability insurance for the Indemnitees hereunder; and 
 (iii) such other insurance as the General Partner, in its sole and absolute discretion, determines to be appropriate and reasonable.

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

  

	7.2	Certificate of Limited Partnership 

 The General
Partner has previously filed the Certificate with the Secretary of State of Delaware as required by the Act. The General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents as may be reasonable and
necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and any other state, or the District of
Columbia, in which the Partnership may elect to do business or own property. To the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and
restatements of the Certificate and do all of the things to maintain the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) under the laws of the State of Delaware and each other state, or
the District of Columbia, in which the Partnership may elect to do business or own property. Subject to the terms of Section 8.5(a)(iv) hereof, the General Partner shall not be required, before or after filing, to deliver or mail a copy of the
Certificate or any amendment thereto to any Limited Partner. 
  

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	7.3	Reimbursement of the General Partner 

 (a) No Compensation. Except as provided in this Section 7.3 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may be entitled), the
General Partner shall not be compensated for its services as general partner of the Partnership. 
 (b) Responsibility for
Partnership Expenses. The Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s organization and the ownership and operation of the Partnership Assets. The General Partner shall be reimbursed on a
monthly basis, or such other basis as it may determine in its sole and absolute discretion, for all expenses that it incurs on behalf of the Partnership relating to the ownership and operation of the Partnership Assets, or for the benefit of the
Partnership; provided, that the amount of any such reimbursement shall be reduced by any interest earned by the General Partner with respect to bank accounts or other instruments or accounts held by it on behalf of the Partnership. Such
reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to Section 7.6 hereof. 
 (c) Responsibility for General Partner Expenses. The General Partner shall also be reimbursed for (i) all expenses related to the operations of the General Partner and to the management and administration of any
Subsidiaries of the General Partner or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees and any and all salaries, compensation and expenses of officers and employees of the General Partner, and
(ii) all expenses the General Partner incurs relating to the organization and/or reorganization of the Partnership and the General Partner, the public offering of REIT Stock by the General Partner, and any other offering, grant, award or
issuance of REIT Stock or additional Partnership Interests pursuant to Section 4.2 or 4.3, including all expenses associated with compliance by the General Partner and the Initial Limited Partner with laws, rules and regulations promulgated by
any regulatory body. 
 (d) Business of the General Partner. The Limited Partners acknowledge that the sole business of the
General Partner is the ownership of direct or indirect interests in, and the direct or indirect operation of, the Partnership, and that all of the expenses of the General Partner are incurred for the benefit of the Partnership. 
 (e) Characterization of Reimbursements. All payments and reimbursements hereunder shall be characterized for Federal income tax purposes as
expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner. 
  

	7.4	Acquisition of Limited Partner Interests by the General Partner 

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

  

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	7.5	Transactions with Affiliates 

 (a) Transactions with Subsidiaries. The Partnership may lend or contribute funds or other assets to its Subsidiaries or other Persons in which it has an equity investment and such Subsidiaries and Persons may borrow funds from
the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. 
 (b) Certain Transactions with the Advisor and its Affiliates. Notwithstanding anything to the contrary in this Agreement, the General Partner
shall not cause the Partnership, directly or indirectly, to Transfer any property to, purchase any property from, loan any money to, borrow any money from or enter into any other transaction with the Advisor or any of its Affiliates, or any director
of the General Partner, except in accordance with the procedures set forth in Articles X and XI of the Articles of Incorporation for transactions between the General Partner and the Advisor or its Affiliates. 
 (c) Benefit Plans Sponsored by the Partnership. The General Partner, in its sole and absolute discretion and without the approval of the
Limited Partners, may propose and adopt, on behalf of the Partnership, employee benefit plans, option or other equity incentive plans, and similar plans funded by the Partnership for the benefit of employees of the Partnership, the General Partner,
any Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed, directly or indirectly, for the benefit of the Partnership, the General Partner, any Subsidiaries of the Partnership or any of their respective
Affiliates. 
  

	7.6	Indemnification 

 (a) General. Subject
to the limitations of Section 7.6(b), to the maximum extent permitted under the Act in effect from time to time and subject to the limitations of Section II.G. of the NASAA Guidelines, the Partnership shall indemnify each Indemnitee from and
against any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, reasonable attorneys’ fees and other legal fees and expenses), judgments, fines, settlements, and other amounts arising from
any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”), that relate to the operations of the Partnership, the General Partner or any of the
Partnership’s Subsidiaries in which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise; provided, however, that in no event shall this Section 7.6(a) enlarge the indemnification permitted below under
Section 7.6(b). 
 (b) Limitation. Notwithstanding any provision hereof to the contrary: 
 (i) the Partnership will not indemnify any Indemnitee unless: 
 (A) the Indemnitee has determined in good faith that the course of conduct which caused the loss, liability or expenses was in the
best interests of the Partnership; 
 (B) the Indemnitee was acting on behalf of the Partnership or performing services
for the Partnership; 
  

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 (C) Such Claim was not the result of: 
 (1) with respect to the General Partner, the negligence or misconduct of the General Partner; 
 (2) with respect to any Limited Partner, the negligence or misconduct of the Limited Partner; 
 (3) with respect to (A) the directors, officers and employees of the General Partner, (B) the Advisor and (C) the
members, managers and employees of the Advisor, the negligence or misconduct of such Person; or 
 (4) with respect to
the Independent Directors (as defined in the Articles of Incorporation), the gross negligence or willful misconduct of such Independent Director; and 
 (D) any indemnification or agreement to hold harmless may be paid only out of the Net Assets of the Partnership, and neither the General Partner nor any Limited Partner shall have any obligation to contribute to
the capital of the Partnership, or otherwise provide funds, to enable the Partnership to fund its obligations under this Section 7.6; 
 (ii) notwithstanding anything to the contrary in Section 7.6(b)(ii), the Partnership will not indemnify any Indemnitee for losses, liabilities or expenses arising from or out of an alleged violation of
federal or state securities laws unless: 
 (A) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to the particular Indemnitee; 
 (B) such claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the particular Indemnitee; or 
 (C) a court of
competent jurisdiction approves a settlement of the claims against the particular Indemnitee and finds that indemnification of the settlement and related costs should be made, and the court considering the matter has been advised of the position of
the Securities Exchange Commission and the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws. 
 (c) Contractual Obligations. Without limitation, the indemnity set forth in this Section 7.6 shall extend to any liability of any
Indemnitee pursuant to a loan guaranty (except a guaranty by a Limited Partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan guaranty), contractual obligation for any indebtedness or other obligation or
otherwise for any indebtedness of the Partnership or any Subsidiary of the Partnership (including, without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General
Partner is hereby authorized and empowered, on behalf of the Partnership, to enter into one or more indemnification agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially having liability
for any such indebtedness. 
  

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 (d) Advancement of Expenses. Reasonable expenses incurred by an Indemnitee who is a party to
a proceeding shall be paid or reimbursed by the Partnership in advance of the final disposition of any and all Claims made or threatened against an Indemnitee only if all of the following conditions are satisfied: (a) the Claim relates to acts
or omissions with respect to the performance of duties or services on behalf of the Partnership (b) either the Claim was initiated by a third party who is not a stockholder of the General Partner, or (ii) if the Proceeding was initiated by
a Stockholder, the initiating Stockholder was acting in his or her capacity as such and the advancement was approved by a court of competent jurisdiction, and (c) the Indemnitee provides the Partnership with a written undertaking to repay the
amount paid or reimbursed by the Partnership, together with the applicable legal rate of interest thereon, if it is ultimately determined that the Indemnitee did not comply with the requisite standard of conduct and is not entitled to
indemnification. 
 (e) No Exclusivity. The indemnification provided by this Section 7.6 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity unless
otherwise provided in a written agreement pursuant to which such Indemnities are indemnified. 
 (f) Insurance. The Partnership
may purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with
the Partnership’s activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement. 
 (g) Benefit Plan Fiduciary. For purposes of this Section 7.6, the Partnership shall be deemed to have requested an Indemnitee to serve
as fiduciary of an employee benefit plan whenever the performance by such Indemnitee of its duties to the Partnership also imposes duties on, or otherwise involves services by, such Indemnitee to the plan or participants or beneficiaries of the
plan. Excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 7.6 and actions taken or omitted by the Indemnitee with respect to an
employee benefit plan in the performance of its duties for a purpose reasonably believed by such Indemnitee to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best
interests of the Partnership. 
 (h) No Personal Liability for Partners. In no event may an Indemnitee subject any of the
Partners to personal liability by reason of the indemnification provisions set forth in this Agreement. 
 (i) Interested
Transactions. An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.6 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was
otherwise permitted by the terms of this Agreement. 
  

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 (j) Benefit. The provisions of this Section 7.6 are for the benefit of the Indemnitees,
their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. 
 (k) Amendment of this Section 7.6. Any amendment, modification or repeal of this Section 7.6 or any provision hereof shall be prospective only and shall not in any way affect the Partnership’s liability to any
Indemnitee under this Section 7.6, as in effect immediately prior to such amendment, modification, or repeal with respect to Claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such Claims may arise or be asserted. 
 (l) Indemnification Payments Not Distributions. If and to the
extent any payments to the General Partner or the Initial Limited Partner in its capacity as the Advisor pursuant to this Section 7.6 constitute gross income to the General Partner or the Initial Limited Partner (as opposed to the repayment of
advances made on behalf of the Partnership), such amounts shall constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership and all Partners, and shall not be
treated as distributions for purposes of computing the Partners’ Capital Accounts. 
 (m) Exception to Indemnification.
Notwithstanding anything to the contrary in this Agreement, the General Partner shall not be entitled to indemnification hereunder for any Claim for which the General Partner is obligated to indemnify the Partnership under any other agreement
between the General Partner and the Partnership. 
  

	7.7	Liability of the General Partner 

 (a) General. To the maximum extent permitted under the Act and the subject to the limitations of Section II.G. of the NASAA Guidelines in effect from time to time, neither the General Partner nor any director, officer,
shareholder, partner, member or employee, trustee, representative or agent of the General Partner (including the Advisor and its Affiliates) shall be liable to the Partnership or to any Partner for (i) any act or omission performed or failed to
be performed by it, or for any losses, claims, costs, damages, or liabilities arising from any such act or omission, except to the extent such loss, claim, cost damage or liability results from such Person’s negligence or misconduct
(ii) any tax liability imposed on the Partnership or (iii) any losses due to the misconduct, negligence, dishonesty or bad faith of any agents of the Partnership. Notwithstanding anything to the contrary in this Section 7.7(a), this
limitation on liability applies only to the extent that the particular officer or director has satisfied the requirements of Sections 7.6(b)(i) and (ii). 
 (b) No Obligation to Consider Separate Interests of Limited Partners. The Limited Partners expressly acknowledge that (i) the General Partner (and the Advisor, in advising the General Partner) is
acting on behalf of the Partnership and the stockholders of the General Partner, collectively, (ii) the General Partner (and the Advisor, in advising the General Partner), subject to the provisions of 

  

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Section 7.1(f) hereof, is under no obligation to consider the separate interest of the Limited Partners (including, without limitation, the tax
consequences to Limited Partners or Assignees) in deciding whether to cause the Partnership to take (or decline to take) any actions, and (iii) neither the General Partner nor the Advisor shall be liable for monetary damages for losses
sustained, liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, unless the General Partner or the Advisor, as the case may be, acted in bad faith and the act or omission was material to the matter
giving rise to the loss, liability or benefit not derived. 
 (c) Conflict. The Limited Partners expressly acknowledge that in
the event of any conflict in the fiduciary duties owed by the General Partner to its stockholders and by the General Partner, in its capacity as a general partner of the Partnership, to the Limited Partners, the General Partner may act in the best
interests of the General Partner’s stockholders without violating its fiduciary duties to the Limited Partners, and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not
derived by the Limited Partners in connection with any such violation. 
 (d) Amendment of this Section 7.7. Any amendment,
modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s and its officers’ and directors’ liability to the Partnership
and the Limited Partners under this Section 7.7 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when such claims may arise or be asserted. 
  

	7.8	Other Matters Concerning the General Partner 

 (a) Reliance on Documents. The General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
bond, debenture, or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties. 
 (b) Reliance on Advisors. The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, architects, engineers, environmental consultants and other
consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the opinion of such Persons as to matters which such General Partner reasonably believes to be within such Person’s professional or expert
competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion. 
 (c) Action Through Agents. The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers, agents, including the Advisor, and duly appointed
attorneys-in-fact. Each such officer, agent or attorney-in-fact shall, to the extent granted by the General Partner in writing, have full power and authority to do and perform each and every act and duty which is permitted or required to be done by
the General Partner hereunder. 
  

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

	7.9	Title to Partnership Assets 

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

	7.10	Reliance by Third Parties 

 (a) Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General Partner has full power and authority, without the consent or approval of any other Partner or Person, to encumber, sell
or otherwise use in any manner any and all Partnership Assets and to enter into any contracts on behalf of the Partnership, and take any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner
as if the General Partner were the Partnership’s sole party in interest, both legally and beneficially. 
 (b) Each Limited Partner
hereby waives any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. 
 (c) In no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that the terms of this Agreement
have been complied with or to inquire into the necessity or expediency of any act or action of the General Partner or its representatives. 
 (d) Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming
thereunder that: 
 (i) at the time of the execution and delivery of such certificate, document or instrument, this
Agreement was in full force and effect; 
  

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 (ii) the Person executing and delivering such certificate, document or instrument
was duly authorized and empowered to do so for and on behalf of the Partnership; and 
 (iii) such certificate, document
or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 
 ARTICLE 8 
 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS 
  

	8.1	Limitation of Liability 

 The Limited Partners shall
have no liability under this Agreement, except as expressly provided in this Agreement, including Section 10.5 hereof, or under the Act. 
  

	8.2	No Right to Participate in the Management of Business 

 No Limited Partner shall take part in the management or control of the Partnership’s investment or other activities, transact any business in the Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership. Except as expressly provided herein, no Limited Partner shall have the right to vote for the election, removal or replacement of the General Partner. The exercise by any Limited Partner of any right conferred herein shall not be
construed to constitute participation by such Limited Partner in the control of the business of the Partnership so as to make such Limited Partner liable as a general partner for the debts and obligations of the Partnership for purposes of the Act,
laws of non-U.S. jurisdictions or otherwise. 
  

	8.3	Outside Activities of Limited Partners 

 Subject to
any agreements entered into by a Limited Partner or its Affiliates, or any Assignee, with the Partnership or any of its Subsidiaries, any Limited Partner or Assignee and any officer, director, employee, agent, trustee, Affiliate or shareholder or
other equity owner of any Limited Partner or Assignee shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities that are in
direct competition with the Partnership or that are enhanced by the activities of the Partnership. Neither the Partnership nor any of the other Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited
Partner or Assignee. None of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship established hereby in any business ventures of any other Person and such Person shall have no
obligation pursuant to this Agreement to offer any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character which, if presented to the Partnership, any
Limited Partner or such other Person, could be taken by such Person. 
  

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	8.4	Return of Capital 

 No Limited Partner shall be
entitled to the withdrawal or return of its Capital Contribution, except (a) to the extent of such Limited Partner’s right of redemption set forth in Section 8.6, and (b) to the that extent the General Partner (or the Liquidation
Trustee) determines to make distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. Except as otherwise expressly provided in this Agreement, no Limited Partner or Assignee shall have priority over
any other Limited Partner or Assignee, either as to the return of Capital Contributions or as to distributions or allocations of Profits or Losses. 
  

	8.5	Rights of Limited Partners Relating to the Partnership 

 (a) General. In addition to the other rights provided by this Agreement and any rights granted to limited partners of a limited partnership under the Act that such limited partners are not permitted to waive under the Act, and
except as limited by Section 8.5(b) hereof, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a limited partner in the Partnership, upon written demand with a statement of the
purpose of such demand and at such Limited Partner’s own expense (including such reasonable copying and administrative charges as the General Partner may establish from time to time): 
 (i) to obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by the General
Partner pursuant to the Securities Exchange Act of 1934; 
 (ii) to obtain a copy of the Partnership’s Federal,
state and local income tax returns for each Fiscal Year; 
 (iii) to obtain a current list of the name and last known
business, residence or mailing address of each Partner; and 
 (iv) to obtain a copy of this Agreement and the
Certificate and all amendments thereto, together with executed copies of all powers of attorney pursuant to which this Agreement, the Certificate and all amendments thereto have been executed. 
 Each Limited Partner hereby waives any and all rights that such Limited Partner may have under the Act that the Act permits limited partners to waive, except any such
right that is granted expressly to such Limited Partner under this Agreement. 
 (b) Confidentiality. Notwithstanding any other
provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information that:

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

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

	8.6	Redemption Right 

 (a) Redemption Right.
Subject to the provisions of this Section 8.6, at any time on or after the first anniversary date of the issuance of a Partnership Unit to a Partner, such Partner shall have the right (the “Redemption Right”) to require the
Partnership to redeem on a Specified Redemption Date all or a portion of the Partnership Units held by such Partner, at a redemption price equal to and in the form of the Redemption Amount. The Redemption Right shall be exercised pursuant to a
Notice of Redemption Request delivered to the General Partner by the Partner who is exercising the Redemption Right (the “Redeeming Partner”). 
 (b) Distributions and Allocations. 
 (i) Subject to Section 8.6(c), the
Redeeming Partner shall have no right to receive any distributions that are paid after the Specified Redemption Date with respect to any Partnership Units redeemed pursuant to this Section 8.6. 
 (ii) If any Partnership Interest is redeemed (other than pursuant to Section 8.6(c)) on any day other than the first day of a
Fiscal Year, then Profit, Losses, each item thereof and all other items attributable to such Partnership Interest for such Fiscal Year shall be divided and allocated to the Redeeming Partner by taking into account the Redeeming Partner’s
ownership of such Partnership Interest during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a
daily, weekly or monthly proration period, in which event Profits, Losses, each item thereof and all other items attributable to such redeemed Partnership Interest for such Fiscal Year shall be prorated based upon the applicable method selected by
the General Partner). 
 (c) General Partner Assumption of Obligation. Notwithstanding the provisions of Section 8.6(a), the
General Partner may, in its sole and absolute discretion (subject to the limitations on ownership and transfer of shares of REIT Stock in the Articles of Incorporation), assume directly the obligation to satisfy a Redemption Right and satisfy such
Redemption Right by paying to the Redeeming Partner the Redemption Amount on the Specified Redemption Date, whereupon the General Partner shall acquire the Partnership Units offered for redemption by the Redeeming Partner and shall be treated for
all purposes of this Agreement as the owner of such Partnership Units. In the event that the General Partner shall exercise this right to satisfy the Redemption Right in the manner described in the preceding sentence and shall fully perform its
obligation to pay the Redemption Amount on the Specified Redemption Date, the Partnership shall have no obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner’s exercise of the Redemption Right, and each of
the Redeeming Partner, the Partnership and the General 

  

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Partner shall treat the transaction between the General Partner and the Redeeming Partner as a sale of the Redeeming Partner’s Partnership Units to the
General Partner for Federal income tax purposes. Distributions and allocations with respect to Partnership Units acquired by the General Partner pursuant to this Section 8.6(c) shall be made in accordance with Sections 11.6(c) and 11.6(d).

 (d) Fractional Shares. If the General Partner elects, either on its own behalf or on behalf of the Partnership, to satisfy the
Redemption Right by paying the REIT Stock Amount, and the REIT Stock Amount is not equal to a whole number of shares of REIT Stock, the Redeeming Partner shall be paid (i) that number of shares of REIT Stock which equals the nearest whole
number less than the REIT Stock Amount, plus (ii) (A) an amount of cash equal to the Value of one share of REIT Stock on the applicable Valuation Date, multiplied by (B) the REIT Stock Amount minus the whole number of shares of REIT
Stock pursuant to clause (i) of this Section 8.6(d). 
 (e) Execution of Documents. Each Redeeming Partner agrees to
execute such documents as the General Partner may reasonably require in connection with (i) the exercise and satisfaction of the Redemption Right, (ii) any assumption by the General Partner pursuant to Section 8.6(c), and
(iii) any issuance of REIT Stock in connection with the Partnership or the General Partner paying the Redemption Amount to the Redeeming Partner. 
 (f) Exceptions to Redemption Right. Notwithstanding the provisions of Section 8.6(a), unless the General Partner elects for payment of the Redemption Amount by the Partnership to be the Cash Amount, a
Partner shall not be entitled to exercise the Redemption Right if the delivery of REIT Stock to such Partner on the Specified Redemption Date would (i) be prohibited under the Articles of Incorporation or the bylaws of the General Partner,
(ii) adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, (iii) constitute or be likely
to constitute a violation of any applicable federal or state securities laws or regulations, or (iv) be prohibited under Section 11.6(f) of this Agreement (in each case regardless of whether the General Partner would in fact assume and
satisfy the Redemption Right). 
 (g) Exercise of the Redemption Right by the General Partner. The receipt of a notice of
redemption with respect to shares of REIT Stock held by stockholders of the General Partner (a “REIT Notice”) shall be deemed to be a Notice of Redemption Request given by the General Partner to the Partnership and an exercise of
the Redemption Right with respect to a number of Partnership Units equal to the number of shares of REIT Stock identified in the REIT Notice. With respect to any Redemption Right exercised by the General Partner pursuant to this Section 8.6(g),
the General Partner will elect for payment of the Redemption Amount by the Partnership to the General Partner to be the Cash Amount. 
 (h) Assignees. The Assignee of any Limited Partner may exercise the rights of such Limited Partner pursuant to this Section 8.6 with respect to any Partnership Units Transferred by such Limited Partner to such Assignee, and
such Limited Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such Assignee. In connection with any exercise of such rights by such Assignee on behalf of such Limited Partner,
the Redemption Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner. 
  

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 (i) No Liens on Partnership Units Delivered for Redemption. Each Partner covenants and agrees
that all Partnership Units delivered for redemption pursuant to this Section 8.6 shall be delivered to the Partnership or the General Partner, as the case may be, free and clear of all Liens. Notwithstanding anything contained herein to the
contrary, neither the General Partner nor the Partnership shall be under any obligation to acquire Partnership Units which are or may be subject to any Liens. Each Partner further agrees that, if any state or local property transfer tax is payable
as a result of the Transfer of its Partnership Units to the Partnership or the General Partner pursuant to this Section 8.6, such Partner shall assume and pay such transfer tax. 
 (j) Cancellation of Units; Amendments to Exhibit A. Upon the redemption of Partnership Units pursuant to this Section 8.6, (i) all
such redeemed Partnership Units (other than Partnership Units redeemed pursuant to Section 8.6(c)) shall be cancelled, and (ii) the General Partner shall amend Exhibit A to reflect the new Percentage Interests of the Partners and to
(A) either adjust the number of Partnership Units and the Percentage Interest of the Redeeming Partner or eliminate the Redeeming Partner from Exhibit A, as applicable, and (B) in the event that the General Partner assumes the
obligation to satisfy a Redemption Right pursuant to Section 8.6(c), adjust the number of Partnership Units and the Percentage Interest of the General Partner to reflect the Transfer of such Partnership Units to the General Partner. 

(k) Additional Partnership Interests. If the Partnership issues Partnership Interests to any Additional Limited Partner pursuant to
Article 4, the General Partner shall make such revisions to this Section 8.6 as the General Partner determines are necessary to reflect the issuance of such Partnership Interests (including setting forth any restrictions on the exercise of the
Redemption Right with respect to such Partnership Interests). 
 (l) Redemptions by the Advisor. For so long as the Advisor
remains the advisor to the Partnership and General Partner under the Advisory Agreement, neither the Advisor nor any Affiliate of the Advisor (other than the General Partner) may redeem any portion of the Partnership Units held by such Person;
provided that, upon the occurrence of a Listing Event, immediately following the distribution to the Advisor of all amounts required to be distributed to the Advisor pursuant to Section 5.1(d), the Partnership shall redeem all of the
Partnership Units held by the Advisor and its Affiliates (other than the General Partner), at a redemption price equal to and in the form of the Redemption Amount. In addition, upon the occurrence of a Termination Event, immediately following the
distribution to the Advisor of all amounts required to be distributed to the Advisor pursuant to Section 5.1(e), the Partnership shall redeem all of the Partnership Units held by the Advisor and its Affiliates (other than the General Partner),
at a redemption price equal to and in the form of the Redemption Amount. With respect to any automatic redemption of Partnership Units held by the Advisor or its Affiliates (other than the General Partner) pursuant to this Section 8.6(l), the
General Partner will elect for payment of the Redemption Amount by the Partnership to the Advisor and/or any such Affiliate to be the Cash Amount. 
  

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 ARTICLE 9 
 BOOKS, RECORDS, ACCOUNTING AND REPORTS 
  

	9.1	Records and Accounting 

 (a) Books and
Records. The General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents required to be maintained by the Act and other books and records deemed by the General Partner to be appropriate
with respect to the Partnership’s business, including, without limitation, all books and records necessary for the General Partner to comply with applicable requirements for qualification as a REIT under the Code and Treasury Regulations and to
provide to the Limited Partners any information, lists and copies of documents required to be provided pursuant to Sections 8.5(a) and 9.2 hereof. 
 (b) Accounting Method. The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with GAAP. 
  

	9.2	Reports 

 (a) Annual Reports. As soon as
practicable after the end of each Fiscal Year, but in no event later than the date on which the General Partner mails its annual report to its stockholders, the General Partner shall cause to be mailed to each Limited Partner as of the close of the
Fiscal Year, an annual report containing financial statements of the Partnership, or of the General Partner, if such statements are prepared on a consolidated basis with the Partnership, for such Fiscal Year, presented in accordance with GAAP, such
statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner in its sole discretion. 
 (b) Quarterly Reports. If and to the extent that the General Partner mails quarterly reports to its stockholders, then as soon as practicable after the end of each fiscal quarter of the Partnership, but in no event later than
the date such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner a report containing unaudited financial statements as of the last day of the calendar quarter of the Partnership, or of the General Partner, if
such statements are prepared on a consolidated basis with the Partnership, and such other information as may be required by applicable law or regulation, or as the General Partner determines to be appropriate. 
 (c) Delivery. Notwithstanding the foregoing, the General Partner may deliver to the Limited Partners each of the reports described above, as
well as any other communications that it may provide hereunder, by e-mail or by any other electronic means. 
 ARTICLE 10 

TAX MATTERS 
  

	10.1	Preparation of Tax Returns 

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

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	10.2	Tax Elections 

 Except as otherwise provided herein,
the General Partner shall, in its sole and absolute discretion, determine whether to make any available election pursuant to the Code; provided, however, that the General Partner shall make the election under Section 754 of the Code in
accordance with applicable regulations thereunder. The General Partner shall have the right to seek to revoke any such election it makes, including, without limitation, the election under Section 754 of the Code, upon the General Partner’s
determination, in its sole and absolute discretion, that such revocation is in the best interests of the Partners. 
  

	10.3	Tax Matters Partner 

 (a) General. The
General Partner shall be the “tax matters partner” of the Partnership for federal income tax purposes. Pursuant to Section 6223(c)(3) of the Code, upon receipt of notice from the Internal Revenue Service of the beginning of an
administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the Internal Revenue Service with the name, address, taxpayer identification number, and profit interest of each of the Limited Partners and the
Assignees; provided, that such information is provided to the Partnership by the Limited Partners and the Assignees. 
 (b) Powers. The tax matters partner is authorized, but not required: 
 (i) to enter into any
settlement with the Internal Revenue Service with respect to any administrative or judicial proceedings for the adjustment of Partnership items required to be taken into account by a Partner for income tax purposes (such administrative proceedings
being referred to as a “tax audit” and such judicial proceedings being referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state that such agreement shall bind all Partners,
except that such settlement agreement shall not bind any Partner: 
 (A) who (within the time prescribed pursuant to the
Code and the Treasury Regulations) files a statement with the Internal Revenue Service providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner; or 
 (B) who is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice group”
(as defined in Section 6223(b)(2) of the Code); 
 (ii) in the event that a notice of a final administrative
adjustment at the Partnership level of any item required to be taken into account by a Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial review of such final adjustment, including the
filing of a petition for readjustment with the Tax Court or the filing of a complaint for refund with the United States Claims Court or the District Court of the United States for the district in which the Partnership’s principal place of
business is located; 
  

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 (iii) to intervene in any action brought by any other Partner for judicial review of
a final adjustment; 
 (iv) to file a request for an administrative adjustment with the Internal Revenue Service and, if
any part of such request is not allowed by the Internal Revenue Service, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request; 
 (v) to enter into an agreement with the Internal Revenue Service to extend the period for assessing any tax which is attributable to
any item required to be taken account of by a Partner for tax purposes, or an item affected by such item; and 
 (vi) to
take any other action on behalf of the Partners or the Partnership in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations. 
 The taking of any action and the incurring of any expense by the tax matters partner in connection with any such proceeding, except to the extent required
by law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner set forth in Section 7.6 of this Agreement shall be fully applicable to the tax matters
partner in its capacity as such. 
 (c) Reimbursements. The tax matters partner shall receive no compensation for its services.
All third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be construed to restrict the
Partnership from engaging an accounting firm to assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable. 
  

	10.4	Organizational Expenses 

 The Partnership shall
elect to deduct expenses, if any, incurred by it in organizing the Partnership ratably over a sixty (60) month period as provided in Section 709 of the Code. 
  

	10.5	Withholding 

 (a) General. Each Limited
Partner hereby authorizes the Partnership to withhold from, or pay on behalf of or with respect to, such Limited Partner any amount of federal, state, local, or foreign taxes that the General Partner determines that the Partnership is required to
withhold or pay with respect to any amount distributable or allocable to such Limited Partner pursuant to this Agreement, including, without limitation, any taxes required to be withheld or paid by the Partnership pursuant to Sections 1441, 1442,
1445 or 1446 of the Code. 
  

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 (b) Treatment of Amounts Withheld. Any amount paid on behalf of or with respect to a Limited
Partner shall constitute a loan by the Partnership to such Limited Partner, which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment must be made unless: 
 (i) the Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner; or 

(ii) the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available
funds of the Partnership which would, but for such payment, be distributed to the Limited Partner. 
 Any amounts withheld from amounts otherwise
distributable to a Limited Partner as described in clause (i) or (ii) of this Section 10.5(b) shall be treated as having been distributed to such Limited Partner. 
 (c) Security Interest. Each Limited Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such
Limited Partner’s Partnership Interest to secure such Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this Section 10.5. Each Limited Partner shall take such actions as the
Partnership or the General Partner shall request in order to perfect or enforce the security interest created hereunder. 
 (d) Default. In the event that a Limited Partner fails to pay when due any amounts owed to the Partnership pursuant to this Section 10.5, the General Partner may, in its sole and absolute discretion, elect to make the
payment to the Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner and shall succeed to all rights and remedies of the Partnership as against such
defaulting Limited Partner. Without limitation, in such event, the General Partner shall have the right to receive distributions that would otherwise be distributable to such defaulting Limited Partner until such time as such loan, together with all
interest thereon, has been paid in full, and any such distributions so received by the General Partner shall be treated as having been distributed to the defaulting Limited Partner and immediately paid by the defaulting Limited Partner to the
General Partner in repayment of such loan. 
 (e) Interest. Any amount payable by a Limited Partner under this Section 10.5
shall bear interest at the lesser of (i) the base rate on corporate loans at large United States money center commercial banks, as published from time to time in The Wall Street Journal, plus four (4) percentage points, and
(ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full. 
  

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 ARTICLE 11 
 TRANSFERS AND WITHDRAWALS 
  

	11.1	Transfer 

 (a) Definition. The term
“Transfer,” when used in this Article 11 with respect to a Partnership Interest or a Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partner
Interest to another Person or a Limited Partner purports to assign all or any part of its Limited Partner Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other
disposition by law or otherwise. The term “Transfer” when used in this Article 11 does not include any redemption of Partnership Units or other Partnership Interests for cash or REIT Stock pursuant to Section 8.6. 
 (b) Restriction on Transfer. No Partnership Interest shall be Transferred, in whole or in part, except in accordance with the terms and
conditions set forth in this Article 11. Any Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article 11 shall be null and void. 
  

	11.2	Transfer of the General Partner’s General Partner Interest 

 (a) The General Partner may not Transfer any of its General Partner Interest or withdraw as General Partner, except: 
 (i) with the Consent of the Outside Limited Partners; or 
 (ii) if such Transfer is
to an entity which is wholly-owned, directly or indirectly, by the General Partner; 
 (b) In the event the General Partner withdraws as
general partner of the Partnership in accordance with Section 11.2(a), the General Partner’s General Partner Interest shall immediately be converted into a Limited Partner Interest. 
  

	11.3	Limited Partners’ Rights to Transfer 

 (a) General. Subject to the provisions of Section 11.3(b), no Limited Partner shall have the right to Transfer all or a portion of such Limited Partner’s Partnership Interest, or any of such Limited Partner’s
rights as a Limited Partner, without the consent of the General Partner, which may be given or withheld by the General Partner in its sole and absolute discretion. 
 (b) Transfers to Permitted Transferees. Notwithstanding the provisions of Section 11.3(a), but subject to the provisions of Sections 11.3(c), 11.3(d), and 11.3(e) and other applicable restrictions on
Transfers contained in this Article 11, a Limited Partner may Transfer, with or without the consent of the General Partner, all or a portion of his Partnership Units to a Permitted Transferee; provided that, such Permitted Transferee qualifies as
“accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act; and provided further that, no Transfer pursuant to this Section 11.3(b) shall be effective until the General Partner
receives notice of such Transfer. 
  

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 (c) No Transfers Violating Securities Laws. The General Partner may prohibit any Transfer by
a Limited Partner of its Partnership Units if, in the opinion of legal counsel to the Partnership, such Transfer would require the filing of a registration statement under the Securities Act, or would otherwise violate any federal or state
securities laws or regulations applicable to the Partnership or the Partnership Units. 
 (d) No Transfers to Certain Lenders. No
Transfer of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within the meaning of Treasury Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse
liability (within the meaning of Treasury Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute discretion. 
 (e) Additional Prohibited Transfers. No Transfer by a Limited Partner of its Partnership Units may be made to any Person if: 
 (i) in the opinion the General Partner based on the advice of legal counsel, if appropriate, it would adversely affect the ability of
the General Partner to continue to qualify as a REIT or would subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code; 
 (ii) in the opinion of the General Partner based on the advice of legal counsel, if appropriate, it would result in the Partnership
being treated as an association taxable as a corporation for federal income tax purposes; 
 (iii) such Transfer would
subject the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisers Act of 1940, as amended or ERISA; 
 (iv) such Transfer is effectuated through an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the
Code; or 
 (v) such Transfer is to a Prohibited Transferee. 
 (f) Incapacitated Limited Partners. If a Limited Partner is Incapacitated, the executor, administrator, trustee, committee, guardian,
conservator or receiver of such Limited Partner’s estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners, for the purpose of settling or managing the estate and such power as
the Incapacitated Limited Partner possessed to Transfer all or any part of his or its interest in the Partnership. The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership. 
 (g) Transfers by the Advisor. For so long as the Advisor remains the advisor to the Partnership and General Partner under the Advisory
Agreement, neither the Advisor nor any Affiliate of the Advisor (other than the General Partner) may Transfer any portion of the Partnership Units held by the Advisor to any Person, other than (i) Transfers to any Affiliate of the Advisor, and
(ii) deemed Transfers to the General Partner pursuant to Section 8.6(c). 
  

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	11.4	Substituted Limited Partners 

 (a) Consent
of the General Partner. No Limited Partner shall have the right to substitute a Permitted Transferee in such Limited Partner’s place. The General Partner shall, however, have the right to consent to the admission of a Permitted Transferee
of the Partnership Interest of a Limited Partner pursuant to this Section 11.4 as a Substitute Limited Partner, which consent may be given or withheld by the General Partner in its sole and absolute discretion. The General Partner’s
failure or refusal to permit such transferee to become a Substituted Limited Partner shall not give rise to any cause of action against the Partnership or any Partner. 
 (b) Rights of a Substituted Limited Partner. A transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights and powers and be subject to
all the restrictions and liabilities of a Limited Partner under this Agreement. The admission of any transferee as a Substituted Limited Partner shall be conditioned upon the transferee executing and delivering to the Partnership an acceptance of
all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section 2.6, and such other documents or instruments as may be required in the reasonable discretion of the General Partner in
order to effect such Person’s admission as a Substituted Limited Partner. 
 (c) Amendments to Exhibit A. Upon the admission
of a Substituted Limited Partner, the General Partner shall amend Exhibit A to reflect the name, address, number of Partnership Units, and Percentage Interest of such Substituted Limited Partner and to eliminate or adjust, if necessary, the
name, address and interest of the predecessor of such Substituted Limited Partner. 
  

	11.5	Assignees 

 If the General Partner, in its sole and
absolute discretion, does not consent to the admission of any transferee as a Substituted Limited Partner, as described in Section 11.4(a), such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be
deemed to have had assigned to it, and shall be entitled to receive distributions from the Partnership and the share of Profit, Losses and any other items of gain, loss, deduction or credit of the Partnership attributable to the Partnership Units
assigned to such transferee, but shall not be deemed to be a holder of Partnership Units for any other purpose under this Agreement except as otherwise provided in this Agreement, and shall not be entitled to vote such Partnership Units in any
matter presented to the Limited Partners for a vote (such Partnership Units being deemed to have been voted on such matter in the same proportion as all other Partnership Units held by Limited Partners are voted). In the event any such transferee
desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all of the provisions of this Article 11 to the same extent and in the same manner as any Limited Partner desiring to make an assignment of
Partnership Units. 
  

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	11.6	General Provisions 

 (a) Withdrawal of a
Limited Partner. No Limited Partner may withdraw from the Partnership other than as a result of a Transfer of all of such Limited Partner’s Partnership Units pursuant to which the transferee is admitted as a Substituted Limited Partner or a
redemption of all of the Partnership Units held by such Limited Partner pursuant to Section 8.6. 
 (b) Termination of Status as
a Limited Partner. Any Limited Partner that (i) Transfers all of such Limited Partner’s Partnership Units (or other Partnership Interests) in a Transfer pursuant to which the transferee is admitted as a Substituted Limited Partner, or
(ii) redeems all of such the Partnership Units held by such Limited Partner pursuant to Section 8.6 shall cease to be a Limited Partner. 
 (c) Allocations. If any Partnership Interest is Transferred during the Partnership’s Fiscal Year in compliance with the provisions of this Article 11 (including Transfers to the General Partner pursuant to
Section 8.6(c)) on any day other than the first day of a Fiscal Year, then Profit, Losses, each item thereof and all other items attributable to such Partnership Interest for such Fiscal Year shall be divided and allocated between the
transferor Partner and the transferee Partner by taking into account their varying interests during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its
sole and absolute discretion, elects to adopt a daily, weekly or monthly proration period, in which event Profits, Losses, each item thereof and all other items attributable to such transferred Partnership Interest for such Fiscal Year shall be
prorated based upon the applicable method selected by the General Partner). 
 (d) Distributions. All distributions of Available
Operating Cash, Net Capital Event Proceeds or other Partnership Assets attributable to Partnership Units, with respect to which the Partnership Record Date is before the date of a Transfer of such Partnership Units (including any Transfer to the
General Partner pursuant to Section 8.6(c)), shall be made to the transferor Partner, and all distributions of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets thereafter attributable to such Partnership Units
shall be made to the transferee Partner. 
 (e) Capital Accounts. The original Capital Account established for each transferee
shall be in the same amount as the Capital Account or portion thereof of the Partner to which such transferee succeeds, at the time such transferee is admitted to the Partnership. The Capital Account of any Partner whose Percentage Interest shall be
increased by means of the Transfer to it of all or part of the Partnership Interest of another Partner shall be appropriately adjusted to reflect such Transfer. Any reference in this Agreement to a Capital Contribution of, or distribution to, a
then-Partner shall include a Capital Contribution or distribution previously made by or to any prior Partner on account of the Partnership Interest of such then-Partner. 
 (f) Additional Restrictions. In addition to any other restrictions on transfer contained in this Agreement, in no event may any Transfer of a Partnership Interest by any Partner or any redemption pursuant
to Section 8.6 be made without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks the legal right, power or capacity to own a Partnership Interest; (ii) in violation
of applicable law; (iii) of any component portion of a Partnership Interest, such as the Capital 

  

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Account, or rights to distributions, separate and apart from all other components of a Partnership Interest; (iv) if in the opinion of the General
Partner based on the advice of legal counsel, if appropriate, such Transfer would cause a termination of the Partnership for Federal or state income tax purposes (except as a result of a redemption of all Partnership Units held by all Limited
Partners); (v) if in the opinion of the General Partner based on the advice of legal counsel, if appropriate, such Transfer would cause the Partnership to cease to be classified as a partnership for Federal income tax purposes (except as a
result of a redemption of all Partnership Units held by all Limited Partners); (vi) if such Transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such Transfer
would cause the Partnership to become a “publicly traded partnership,” as such term is defined in Section 7704(b) of the Code (provided that this clause (vii) shall not be the basis for limiting or restricting in any manner the
exercise of the Redemption Right under Section 8.6 unless, and only to the extent that, outside tax counsel advises the General Partner that, in the absence of such limitation or restriction, there is a significant risk that the Partnership
will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation); (viii) if such Transfer would cause the General Partner to own 10% or more of the ownership interests of any tenant of a property
held by the Partnership within the meaning of Section 856(d)(2)(B) of the Code; (ix) if such Transfer would result in the General Partner being “closely held” within the meaning of Section 856(h) of the Code; or (x) if
in the opinion the General Partner based on the advice of legal counsel, if appropriate, such Transfer would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes
under Section 857 or Section 4981 of the Code. 
 ARTICLE 12 
 ADMISSION OF PARTNERS 
  

	12.1	Admission of Successor General Partner 

 A successor
to all of the General Partner Interest pursuant to Article 11 hereof who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership as the General Partner, effective immediately following the successor General
Partner’s execution and delivery to the Partnership of an acceptance of all of the terms and conditions of this Agreement and such other documents or instruments as may be required or appropriate to effect such Person’s admission as
General Partner. In the case of such admission on any day other than the first day of a Fiscal Year, all items attributable to the General Partner Interest for such Fiscal Year shall be allocated between the transferring General Partner and such
successor as provided in Section 11.6(c) hereof. Any such successor General Partner shall carry on the business of the Partnership without dissolution. 
  

	12.2	Admission of Additional Limited Partners 

 (a) General. A Person other than the General Partner and the Initial Limited Partner who makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted to the Partnership as an Additional
Limited Partner only upon executing and delivering to the General Partner: 
 (i) evidence of acceptance in form
satisfactory to the General Partner of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section 2.6 hereof; and 
  

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 (ii) such other documents or instruments as may be required in the discretion of the
General Partner in order to effect such Person’s admission as an Additional Limited Partner. 
 (b) General Partner’s
Consent Required. Notwithstanding anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent may be given or withheld in the General
Partner’s sole and absolute discretion. The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership, following the
consent of the General Partner to such admission and the satisfaction of the conditions set forth in Section 12.2(a). 
 (c) Allocations to Additional Limited Partners. If any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Fiscal Year, then Profit, Losses, each item thereof and all other items
allocable among Partners and Assignees for such Fiscal Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees by taking into account their varying interests during the Fiscal Year in accordance with
Section 706(d) of the Code, using the interim closing of the books method. Solely for purposes of making such allocations, each of such items for the calendar month in which an admission of any Additional Limited Partner occurs shall be
allocated among all of the Partners and Assignees, including such Additional Limited Partner. 
  

	12.3	Amendment of Agreement and Certificate of Limited Partnership 

 For the admission to the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership and, if necessary, to prepare as soon as
practical an amendment of this Agreement (including an amendment of Exhibit A) and, if required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney granted pursuant to
Section 2.6 hereof. 
 ARTICLE 13 
 DISSOLUTION, LIQUIDATION AND TERMINATION 
  

	13.1	Dissolution 

 The Partnership shall not be dissolved
by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Subject to Section 13.1(b), upon the withdrawal of the General
Partner, any successor General Partner shall continue the business of the Partnership. The Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following (“Liquidating Events”):

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

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 (b) an event of withdrawal of the General Partner, as defined in the Act (other than an event of
bankruptcy), unless, within ninety (90) days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment,
effective as of the date of withdrawal, of a successor General Partner; 
 (c) an election to dissolve the Partnership made by the
General Partner, in its sole and absolute discretion; 
 (d) entry of a decree of judicial dissolution of the Partnership pursuant to
the provisions of the Act; 
 (e) the occurrence of a Terminating Capital Transaction; or 
 (f) a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner or the Partnership is
bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General Partner or the Partnership, in each case under any federal or state bankruptcy or insolvency laws as now or
hereafter in effect, unless prior to the entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment, effective
as of a date prior to the date of such order or judgment, of a substitute General Partner, if applicable. 
 As used in this Article 13, a “majority in
interest” shall refer to Partners (excluding the General Partner) who hold Partnership Units that constitute more than fifty percent (50%) of the aggregate number of outstanding Partnership Units not held by the General Partner.

  

	13.2	Winding Up; Liquidation 

 (a) Upon dissolution
of the Partnership, the business and affairs of the Partnership shall be wound up as provided in this Section 13.2. The General Partner shall act as the “Liquidator” (or, in the event there is no remaining General Partner, any
Person elected by Limited Partners holding more than 50% of the total number of Partnership Units then issued and outstanding). The Liquidator shall wind up the affairs of the Partnership, shall dispose of such Partnership Assets as it deems
necessary or appropriate and shall pay and distribute the assets of the Partnership, including the proceeds of any such disposition, as follows: 
 (i) first, to creditors, including Partners who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Partnership (whether by payment or by establishment or reserves as
determined by the Liquidator in its sole discretion), other than distributions to Partners pursuant to Article 5, and 
  

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 (ii) second, to the Partners in accordance with their positive Capital Account
balances. 
 It is intended that such distributions will result in the Partners receiving aggregate distributions in the order of and equal
to the amount of distributions that would have been received if the liquidating distributions were made in accordance with Section 5.1. However, if the balances in the Capital Accounts do not result in such intention being satisfied, items of
Profits and Losses will be reallocated among the Partners for the Fiscal Year of the liquidation (and, at the election of the General Partner, if necessary and permissible, prior Fiscal Years) so as to cause the balances in the Capital Accounts to
be in the amounts necessary to assure that such result is achieved. Notwithstanding anything herein to the contrary, in the event the Partnership is liquidated within the meaning of Treasury Regulation §§ 1.704-1(b)(2)(ii)(g), liquidation
distributions shall be made by the end of the taxable year in which the Partnership liquidates or, if later, within ninety (90) days of the date of such liquidation. 
 (b) In the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the Partners pursuant to this Article 13 may be: 
 (i) distributed to a trust established for the benefit of the General Partner and Limited Partners for the purposes of liquidating
Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership; the assets of any such
trust shall be distributed to the General Partner and Limited Partners from time to time, in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust by the Partnership would otherwise have been
distributed to the General Partner and Limited Partners pursuant to this Agreement; or 
 (ii) withheld or escrowed to
provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed amounts shall be distributed to
the General Partner and Limited Partners in the manner and order of priority set forth in Section 13.2(a) as soon as practicable. 
 (c) The Liquidator shall, in its sole discretion, determine whether to sell any Partnership Assets, including, without limitation, Investments, and if so, whether at a public or private sale, for what price and on what terms. If the
Liquidator determines to sell or otherwise dispose of any Partnership Asset or any interest therein, the Liquidator shall do so expeditiously and for its fair market value under the circumstances, giving due regard to the activity and condition of
the relevant market and general financial and economic conditions. If the Liquidator determines not to sell or otherwise dispose of any Partnership Asset or any interest therein, the Liquidator shall not be required to distribute the same to the
Partners promptly but shall have full right and discretion to determine the time and manner of such distribution and distributions giving due regard to the interests of the Partners. 
  

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	13.3	No Obligation to Contribute Deficit 

 If any Partner
has a deficit balance in his Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which such liquidation occurs), such Partner shall have no obligation to make any
contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any purpose whatsoever. 
  

	13.4	Notice of Dissolution 

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

	13.5	Termination of Partnership and Cancellation of Certificate of Limited Partnership 

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

	13.6	Reasonable Time for Winding-Up 

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

	13.7	Waiver of Partition 

 Each Partner hereby waives any
right to partition of the Partnership property. 
 ARTICLE 14 
 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS 
  

	14.1	Amendments 

 (a) By the General Partner.
The General Partner shall have the power, without the consent of the Limited Partners, to amend this Agreement except as set forth in Section 14.1(b) hereof. The General Partner shall provide notice to the Limited Partners when any action under
this Section 14.1(a) is taken in the next regular communication to the Limited Partners. The Limited Partners shall not have the power to amend this Agreement. 
  

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 (b) Restrictions on General Partner’s Ability to Amend this Agreement. Notwithstanding
Section 14.1(a) hereof, this Agreement shall not be amended with respect to any Partner adversely affected without the Consent of such Partner adversely affected if such amendment would: 
 (i) convert a Limited Partner’s interest in the Partnership into a General Partner Interest; 
 (ii) impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership; 
 (iii) modify the limited liability of a Limited Partner in a manner adverse to such Limited Partner; or 
 (iv) amend this Section 14.1(b). 
  

	14.2	Meetings of the Partners 

 (a) General.
Meetings of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written request by Limited Partners holding 25 percent or more of the Partnership Interests. The request shall state the
nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30) days prior to the date of such meeting. Partners may vote in person or by proxy at
such meeting. 
 (b) Vote Required. Whenever the vote or Consent of the Partners is permitted or required under this Agreement,
such vote or Consent may be given at a meeting of the Partners or may be given in accordance with the procedure prescribed in Section 14.2(c) hereof. Except as otherwise expressly provided in this Agreement, the Consent of holders of
Partnership Units that constitute more than fifty percent (50%) of the aggregate number of outstanding Partnership Units held by the Partners (including the General Partner) shall constitute the consent of the Partners. 
 (c) Action Without a Meeting. Any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting if a
written consent setting forth the action so taken is signed by holders of Partnership Units that constitute more than fifty percent (50%) (or such other percentage as is expressly required by this Agreement) of the aggregate number of
outstanding Partnership Units held by the Partners (including the General Partner). Such consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote the holders of Partnership Units that constitute
more than fifty percent (50%) (or such other percentage as is expressly required by this Agreement) of the aggregate number of outstanding Partnership Units held by the Partners (including the General Partner). Such consent shall be filed with
the General Partner. An action so taken shall be deemed to have been taken at a meeting held on the effective date of the consent as certified by the General Partner. 
 (d) Proxy. Each Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Partner is entitled to participate, including waiving notice of any meeting, or voting or
participating at a meeting. Every proxy must be signed by the Partner or his attorney-in-fact and a copy thereof delivered to the Partnership. No proxy shall be valid after the expiration of 

  

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eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Partner
executing it, such revocation to be effective upon the General Partner’s receipt of written notice of such revocation from the Partner executing such proxy. 
 (e) Conduct of Meeting. Each meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant to such rules for the conduct of the meeting
as the General Partner or such other Person deems appropriate. Meetings of Partners may be conducted in the same manner as meetings of the stockholders of the General Partner and may be held at the same time, and as part of, meetings of the
stockholders of the General Partner. 
 ARTICLE 15 
 GENERAL PROVISIONS 
  

	15.1	Addresses and Notice 

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

	15.2	Titles and Captions 

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

	15.3	Pronouns and Plurals 

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

	15.4	Further Action 

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

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	15.5	Binding Effect 

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

	15.6	Creditors 

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

	15.7	Waiver 

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

  

	15.8	Counterparts 

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

	15.9	Applicable Law 

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

	15.10 	Invalidity of Provisions 

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

	15.11 	Merger 

 Subject to Section 11.2, the
Partnership may merge with, or consolidate into, any Person or Entity in accordance with Section 17-211 of the Act. 
  

	15.12 	No Rights as Stockholders 

 Nothing contained in
this Agreement shall be construed as conferring upon the holders of the Partnership Units any rights whatsoever as stockholders of the General Partner, including, without limitation, any right to receive dividends or other distributions made to such
stockholders or to vote or to consent or receive notice as stockholders in respect to any meeting or stockholders for the election of directors of the General Partner or any other matter. 
  

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	15.13 	Entire Agreement 

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

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 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Second Amended and
Restated Agreement of Limited Partnership as of the day and year first-above written. 
  

			
	GENERAL PARTNER:
	
	PALADIN REALTY INCOME
	PROPERTIES, INC.
		
	By:	 	/S/ JAMES R. WORMS
		 	Name: James R. Worms
		 	Title: President and Chief Executive Officer
	
	LIMITED PARTNER:
	
	PALADIN REALTY ADVISORS, LLC
		
	By:	 	/S/ JAMES R. WORMS
		 	Name: James R. Worms
		 	Title: President and Manager

  

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 Exhibit A 
 Partners’ Contributions and Partnership Interests 
 As of December 31, 2007 
  

											
	 Name and Address of Partner
	  	 Type of Interest
	  	Capital
Contribution	  	Number of
Partnership
Units	  	Percentage
Interest	 
	 Paladin Realty Income Properties, Inc.
	  	General Partnership Interest	  	$	25,958,562	  	2,595,856	  	99.2	%
	 Paladin Realty Advisors, LLC
	  	Limited Partnership Interest	  	$	200,000	  	20,000	  	0.8	%
	 TOTAL
	  		  	$	26,158,562	  	2,615,856	  	100.00	%

  

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 Exhibit B 
 NOTICE OF REDEMPTION REQUEST 
 The undersigned Limited Partner hereby irrevocably
(i) requests that Paladin Realty Income Properties, L.P. (the “Partnership”) redeem [            ] Partnership Units in the Partnership held by such Limited Partner in
accordance with the terms of the Second Amended and Restated Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) and the Redemption Right referred to therein; (ii) agrees to surrender such Partnership
Units and all right, title, and interest therein promptly upon payment of the Redemption Amount; (iii) directs that the Redemption Amount deliverable upon exercise of the Redemption Right be delivered to such Limited Partner at the address as
specified in the Partnership Agreement; and (iv) directs that, if the General Partner determines that the Redemption Amount shall be the REIT Stock Amount, the REIT Stock be registered or placed in the name of such Limited Partner and at such
address specified in the Partnership Agreement. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has not transferred or encumbered title to such Partnership Units; (b) has the full right, power and
authority to redeem and surrender such Partnership Units as provided herein; and (c) has obtained the consent or approval of all Persons, if any, having the right to consent or approve such redemption and surrender. 
 Dated:                             
  

			
	[Name of Limited Partner]
		
	By:	 	 
		 	Name:
		 	Title:

  

 - 64 -Third Amended and Restated Advisory Agreement

 EXHIBIT 10.4 
 THIRD AMENDED AND RESTATED ADVISORY AGREEMENT 
 THIS THIRD AMENDED AND RESTATED ADVISORY
AGREEMENT (this “Agreement”), dated as of July 18, 2008, is entered into between Paladin Realty Income Properties, Inc., a Maryland corporation (the “Company”), Paladin Realty Income Properties, L.P. (the
“Operating Partnership,” and collectively with the Company, the “Fund”), and Paladin Realty Advisors, LLC, a Delaware limited liability company (the “Advisor”). 
 WITNESSETH: 
 WHEREAS, the
Company’s initial public offering of shares of its common stock, par value $.01 per share (the “Shares”) was declared effective February 23, 2005 (the “Initial Offering”), and the Company commenced its
offering efforts pursuant to a registration statement filed with the Securities and Exchange Commission (the “SEC”); 
 WHEREAS, the Company intends to offer additional Shares allocated between a primary offering (the “Primary Offering”) and a distribution reinvestment plan (together with the Primary Offering, the “Follow-On
Offering”) pursuant to a prospectus contained in a registration statement for a follow-on offering (the “Follow-On Registration Statement”); 
 WHEREAS, the Company has qualified as a REIT (as defined below) and invests, through the Operating Partnership, its funds in investments permitted by the terms of the Articles (as defined below) and Sections
856 through 860 of the Code (as defined below); 
 WHEREAS, the Fund desires to avail itself of the experience, sources of
information, advice and assistance of, and certain facilities available to, the Advisor and to have the Advisor undertake the duties and responsibilities set forth herein on behalf of the Fund, subject to the supervision of the Board of Directors of
the Company and the general partner of the Operating Partnership; 
 WHEREAS, the Fund, by action of the Company’s Board of
Directors, has determined that, consistent with the Fund’s investment objectives and policies, its primary investment focus shall be investing in Core and Core-Plus Properties located in the United States. 
 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the Board of Directors and the general partner
of the Operating Partnership, on the terms and conditions set forth herein; and 
 WHEREAS, this Agreement shall become effective upon
the date the Follow-On Registration Statement is declared effective by the SEC; 
 NOW, THEREFORE, in consideration of the foregoing
and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Definitions. As used in this Agreement, the following terms have the definitions hereinafter indicated: 
 “Acquisition Expenses” means any and all expenses incurred by the Company, the Advisor, the Operating Partnership, or any Affiliate thereof in connection with the selection or acquisition of any Investment, including,
without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance premiums, and other closing and miscellaneous
expenses related to selection and acquisition of Investments, whether or not acquired. 

 “Acquisition Fee” means any and all fees and commissions, exclusive of Acquisition
Expenses, paid by any Person to any other Person (including the Paladin Acquisition Fee (as defined in Section 9(a)) and any other fees or commissions paid by or to any Affiliate of the Fund or the Advisor) in connection with the making or
investing in mortgage loans or the purchase, development or construction of any property or other Investment, including, without limitation, real estate commissions, Development Fees and Construction Fees (except as provided in the following
sentence), selection fees, nonrecurring management fees, loan fees, points, or any other fees or commissions of a similar nature. Excluded shall be all Development Fees or Construction Fees paid to any Person or entity not affiliated with the
Sponsor or Advisor in connection with the actual development and construction of any property or other Investment. 
 “Advisor” means Paladin Realty Advisors, LLC, a Delaware corporation, any successor advisor to the Company, or any person or entity to which Paladin Realty Advisors, LLC or any successor advisor subcontracts substantially
all of its functions. 
 “Affiliate” means, (A) any Person directly or indirectly owning, controlling, or holding, with
power to vote, 10% or more of the outstanding voting securities of such other Person, (B) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held, with the power to vote, by such other
Person, (C) any Person, directly or indirectly, controlling, controlled by, or under common control with such other Person, (D) any executive officer, director, trustee, general partner or manager of such other person, or (E) any
legal entity for which such Person acts as an executive officer, director, trustee, general partner or manager. 
 “Appraised
Value” means value according to an appraisal made by an Independent Expert. 
 “Articles” means the Articles of
Amendment and Restatement of the Company dated as of February 25, 2005, which comprise the articles of incorporation of the Company, as amended from time to time. 
 “Asset Management Fee” means the fee described in Section 9(c) hereof. 
 “Average Invested Assets” means, for a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly, in equity interests in and loans secured by real estate, before
reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period. 
 “Board” means the Board of Directors of the Company. 
  

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 “Cause” means (i) any fraud, criminal conduct, willful misconduct or willful breach
of fiduciary duty by the Advisor, (ii) any material breach of this Agreement by the Advisor not cured by the Advisor within fifteen (15) days of the Advisor’s receipt of notice of such breach from the Fund, or (iii) the
bankruptcy of the Advisor. 
 “Claims” shall have the meaning ascribed to it in Section 16(a) hereof. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any
provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 
 “Company” means Paladin Realty Income Properties, Inc., a corporation organized under the laws of the State of Maryland. 
 “Competitive Real Estate Commission” means a real estate or brokerage commission paid for the purchase or sale of property which is
reasonable, customary, and competitive in light of the size, type, and location of the Investment. 
 “Construction Fee”
means a fee or other remuneration for acting as general contractor and/or construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation for an Investment. 
 “Control” means, with respect to a Person, the possession (directly or indirectly) of the power to direct or cause the direction of the
management and policies of such Person, whether through ownership of voting securities, by contract or otherwise. 
 “Core and
Core-Plus Properties” generally reflect a continuum of risk and expected return as among “core”, “core-plus”, “value-added” and “opportunistic” investments. A “core” property generally is
the least risky, with the lowest expected returns, e.g., a fully leased building with a stable, predictable income stream that represents a significant percentage of total return over the expected holding period. “Core-plus” differs from
“core” in that the properties, although substantially leased with current income, may exhibit more lease turnover risk and/or require some type of modest enhancement or value-added element to turn them into “core” properties with
stabilized income streams. In contrast, “value-added” properties require a significant improvement, such as re-leasing, re-positioning, or re-development before they can be stabilized and then sold, and as a result, appreciation is a much
greater component of total return than current income and “opportunistic” investing is high risk, and encompasses attributes such as non-traditional property types, ground-up development, substantial vacancies and high leverage, with
little to no current income return. 
 “Dealer Manager” means Prospect Financial Advisors, LLC and Paladin Realty
Securities, LLC (f/k/a BroadWall Capital LLC) or such other Person or entity selected by the Board of Directors to act as the dealer manager for the offering of the Shares. Prospect Financial Advisors, LLC and Paladin Realty Securities, LLC are
members of the Financial Industry Regulatory Authority. 
 “Dealer Manager Fee” means any dealer manager fee paid to the
Dealer Manager pursuant to (i) that certain Dealer Manager Agreement, dated February 28, 2005, among the 

  

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Company, the Operating Partnership and Prospect Financial Advisors, LLC, (ii) that certain Dealer Manager Agreement dated June 5, 2007, among the
Company, the Operating Partnership, Paladin Realty Advisors, LLC and BroadWall Capital LLC, (iii) that certain Dealer Manager Agreement dated February 6, 2008, among the Company, the Operating Partnership, Paladin Realty Advisors, LLC and
Paladin Realty Securities, LLC, or (iv) any similar fee paid to any other Dealer Manager in connection with a sale of the Shares. 
 “Development Fee” means a fee for the packaging of an Investment, including the negotiation and approval of plans, and any undertaking to assist in obtaining zoning and necessary variances and financing for a specific
property, either initially or at a later date. 
 “Director” means a member of the Board of Directors of the Company.

 “Dividends” means any dividends or other distributions of money or other property by the Company to the Stockholders,
including distributions that may constitute a return of capital for federal income tax purposes. 
 “8% Return” means, with
respect to the Stockholders, an amount calculated like simple interest at the rate of eight percent (8%) per annum calculated on the varying daily balances of Invested Capital during the period to which the 8% Return relates, and determined on
the basis of a 360-day year/30-day month, cumulative and non-compounded for the period for which such 8% Return is being determined. 
 “Follow-On Offering” means the public offering of Shares pursuant to a Prospectus contained in the Follow-On Registration Statement filed with the SEC. 
 “Follow-On Registration Statement” means the registration statement on Form S-11 for the Follow-On Offering. 
 “Fund” means the Company and the Operating Partnership, collectively. 
 “Good Reason” means (i) any failure by the Company or the Operating Partnership to obtain a satisfactory agreement from a successor
entity to the Company or the Operating Partnership to assume and agree to perform the Fund’s obligations under this Agreement, or (ii) any material breach of this Agreement by the Fund not cured by the Fund within fifteen (15) days of
the Fund’s receipt of notice of such breach from the Advisor. 
 “Gross Proceeds” means the aggregate purchase price of
all Shares sold for the account of the Company, without deduction for Selling Commissions, volume discounts, marketing support fees, due diligence expense reimbursement, fees paid to the Dealer Manager or other Organization and Offering Expenses.
For the purposes of computing Gross Proceeds, the purchase price of any Share for which Selling Commissions are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall be deemed to be the full
amount of the offering price per Share. 
 “Indemnitee” shall have the meaning ascribed to it in Section 16(a) hereof.

 “Independent Director” means a Director who is not, and within the last two years has not been, directly or indirectly
associated with the Advisor or Sponsor by virtue of (i) ownership of an interest in the Advisor, the Sponsor or any of their Affiliates, (ii) employment by the Advisor, 

  

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the Sponsor or any of their Affiliates, (iii) service as an officer, trust manager or director of the Advisor, the Sponsor or any of their Affiliates,
(iv) performance of services, other than as a Director, for the Company, (v) service as a director, trust manager or trustee of more than three real estate investment trusts advised by the Advisor or organized by the Sponsor, or
(vi) maintenance of a material business or professional relationship with the Advisor, the Sponsor or any of their Affiliates. A business or professional relationship is considered material if the gross revenue derived by the Director from the
Advisor or Sponsor and their Affiliates exceeds five percent (5%) of either the Director’s annual gross revenue, derived from all sources, during either of the last two years or the Director’s net worth on a fair market value basis.
An indirect relationship shall include circumstances in which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is or has been associated with the Advisor or
Sponsor or any of their Affiliates or the Company. 
 “Independent Expert” means a Person or entity with no material current
or prior business or personal relationship with the Advisor or any of the Directors that is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company. 
 “Initial Offering” means the offering of Shares pursuant to that certain registration statement declared effective February 23,
2005. 
 “Invested Capital” means, with respect to the Stockholders, as of any relevant date, an amount equal to the excess
of (i) the aggregate amount of cash contributed or deemed contributed by the Company to the Operating Partnership from the gross proceeds of the issuance by the Company of Shares to the Stockholders, over (ii) the sum of (A) the
cumulative distributions of Net Sales Proceeds (as defined in the OP Partnership Agreement) made to the Company pursuant to Section 5.1(c) of the OP Partnership Agreement as of such date and distributed to the Stockholders, and (B) the
cumulative amounts paid to the Stockholders to repurchase Shares under the Company’s share redemption plan as of such date. 
 “Investment” means any Real Property Investment or any Real Estate Related Investment. 
 “Listing” means the listing of Shares on a national securities exchange. 
 “Listing Date” means
the date on which a Listing occurs. 
 “NASAA Guidelines” shall have the meaning ascribed to it in Section 16(a)
hereof. 
 “Net Income” means for any period, the total revenues of the Fund applicable to such period, less the total
expenses of the Fund applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, that Net Income for purposes of calculating total allowable Operating Expenses under
Section 11 hereof shall exclude the gain from the sale of the Fund’s assets. 
 “Offering” means any public
offering of Shares pursuant to a Prospectus that is registered with the SEC, including the Initial Offering and the Follow-On Offering. 
  

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 “Operating Expenses” means, for purposes of Section 11 hereof, all costs and
expenses incurred by the Fund, the Advisor or any of their respective Affiliates, as determined under generally accepted accounting principles, which in any way are related to the operation of the Fund or to the Fund’s business, including
advisory fees, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt
reserves, (v) incentive fees payable to the Advisor, including the Subordinated Disposition Fee described in Section 9(d) hereof, (vi) the subordinated distribution of net sales proceeds, the subordinated distribution upon listing and
the subordinated distribution upon termination to be received by the Advisor described in Section 9(e) hereof, (vii) Acquisition Fees, Origination Fees and Acquisition Expenses, and (viii) real estate commissions on the resale of
property and other expenses connected with the acquisition, disposition and ownership of real estate interests, mortgage loans, or other property (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and
improvement of property). 
 “Operating Partnership” means Paladin Realty Income Properties, L.P., a Delaware limited
partnership, and any successor thereof. 
 “OP Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the Operating Partnership, as the same may be amended from time to time. 
 “Organization and Offering
Expenses” means any and all costs and expenses, other than Selling Commissions and any Dealer Manager Fee, incurred by the Advisor or any of its Affiliates, including the Sponsor, in connection with the formation, qualification and
registration of the Company and the Operating Partnership and the marketing and distribution of the Shares, including, without limitation, the following: legal, accounting, underwriting, brokerage, listing, registration and escrow fees and expenses;
printing, amending, supplementing, mailing and distributing costs; filing, registration, Listing and qualification fees and taxes; telegraph and telephone costs; and all advertising and marketing expenses, including any payment or reimbursements to
the Dealer Manager or other broker-dealers of expenses associated with the Offering and all other costs related to investor and broker-dealer sales meetings. 
 “Origination Fee” means the origination fee described in Section 9(b) hereof. 
 “Paladin Acquisition Fee” means the acquisition fee described in Section 9(a) hereof. 
 “Person” means an individual, corporation, partnership, limited partnership, limited liability company, estate, trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a trust
permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity and also
includes a group as that term is used for purposes of Section 13(d) (3) of the Securities Exchange Act of 1934, as amended. 
 “Primary Offering” means all Shares offering in the Initial Offering with the except of Shares offered pursuant to the Company’s distribution reinvestment plan. 
 “Prospectus” has the meaning set forth in Section 2(10) of the Securities Act of 1933, as amended (the “Securities
Act”), including a preliminary Prospectus, an offering circular as 

  

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described in Rule 256 and a combined prospectus as described in Rule 429 of the General Rules and Regulations under the Securities Act or, in the case of an
intrastate offering, any document by whatever name known, utilized for the purpose of offering and selling securities to the public. 
 “Purchase Price” means the amount actually paid for an Investment or allocated to the purchase, development, construction or improvement of a property, inclusive of expenses related thereto and the amount of debt associated
with such property, but exclusive of Acquisition Fees and Acquisition Expenses. 
 “Real Estate Related Investments” means
(a) the issuance of loans, such as first mortgage and mezzanine loans on real property; (b) investments in equity securities such as common stocks, preferred stocks and convertible securities of pubic or private real estate companies; and
(c) investments in debt securities such as collateralized mortgage backed securities, commercial mortgages and other debt securities. 
 “Real Property Investment” means any investment in unimproved and improved real property, (including, without limitation, fee or leasehold interests, options and leases), either directly or through a joint venture.

 “REIT” means a “real estate investment trust” as defined in Section 856 of the Code and applicable
Treasury Regulations. 
 “Remaining Capital” means, with respect to the Stockholders, as of any relevant date, an amount
equal to the excess of (i) the aggregate amount of cash contributed or deemed contributed by the Company to the Operating Partnership from the gross proceeds of the issuance by the Company of Shares to the Stockholders, over (ii) the
cumulative amounts paid to the Stockholders to repurchase Shares under the Company’s share redemption plan as of such date. 
 “Sale” means, with respect to any Investment, any transaction or series of transactions whereby: 
 (a) the Fund
directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of any Investment, including, without limitation, any event with respect to any Investment that
gives rise to a significant amount of insurance proceeds or condemnation awards; or 
 (b) any joint venture directly or indirectly sells,
grants, transfers, conveys, or relinquishes its ownership of any Investment, including any event with respect to any real property which gives rise to insurance proceeds or condemnation awards. 
 “SEC” means the Securities and Exchange Commission. 
 “Securities” means the Shares or any other stock or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for,
guarantees of, or warrants, options or rights to subscribe to, purchase or acquire, any of the foregoing. 
  

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 “Selling Commissions” means any and all commissions payable to underwriters, dealer
managers, or other broker-dealers in connection with the sale of Shares, including, without limitation, commissions payable to the Dealer Manager. 
 “Senior Living Assets” means any Investment involving the housing or care of residents or users age 55 and older, including without limitation, active adult or independent living facilities, continuing care retirement
communities, and assisted living and skilled nursing facilities. 
 “Shares” means the shares of the Company’s common
stock, par value $.01 per share. 
 “Sponsor” means any Person directly or indirectly instrumental in organizing, wholly or
in part, the Company or any Person who will control, manage or participate in the management of the Company, and any Affiliate of such Person. Not included is any Person whose only relationship with the Company is that of an independent property
manager of Company assets, and whose only compensation is as such. Sponsor does not include wholly independent third parties such as attorneys, accountants, and underwriters whose only compensation is for professional services. A Person may also be
deemed a Sponsor of the Company by: 
 (i) taking the initiative, directly or indirectly, in founding or organizing the business or enterprise
of the Company, either alone or in conjunction with one or more other Persons; 
 (ii) receiving a material participation in the Company in
connection with the founding or organizing of the business of the Company, in consideration of services or property, or both services and property; 
 (iii) having a substantial number of relationships and contacts with the Company; 
 (iv) possessing significant rights to control
Company properties; 
 (v) receiving fees for providing services to the Company which are paid on a basis that is not customary in the
Company’s industry; or 
 (vi) providing goods or services to the Company on a basis which was not negotiated at arms length with the
Company. 
 “Stockholders” means the holders of record of Shares maintained in the Company’s books and records.

 “Subordinated Disposition Fee” means the fee described in Section 9(d) hereof. 
 “Termination Date” means the date of termination of this Agreement pursuant to Section 15 hereof. 
 2. Appointment. The Fund hereby appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and
the Advisor hereby accepts such appointment. 
  

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 3. Duties of the Advisor.  
 The Advisor shall undertake to source and recommend to the Fund opportunities to make Investments and to provide a continuing and suitable investment
program consistent with the investment objectives and policies of the Fund as determined and adopted from time to time by the Board and in accordance with this Agreement (including, without limitation, Section 4 hereof). In performance of this
undertaking, subject to the supervision of the Board and consistent with the provisions of the Company’s Prospectus for the Follow-On Offering (and any supplements thereto), the Articles, the Bylaws of the Company and the OP Partnership
Agreement, the Advisor shall, either directly or by engaging an Affiliate: 
 a. serve as the Fund’s investment advisor; 
 b. perform and supervise the various administrative functions reasonably necessary for the daily management of the Fund; 
 c. maintain and preserve the books and records of the Company and the Operating Partnership; 
 d. investigate, select, engage and conduct business with, on behalf of the Fund, such Persons as the Advisor deems necessary to the proper performance of
its obligations hereunder, including but not limited to appraisers, consultants, accountants, contractors, leasing agents, correspondents, lenders, technical advisors, attorneys, real estate brokers, broker-dealers, underwriters, corporate
fiduciaries, escrow agents, transfer agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property managers, mortgagors, mortgage brokers, real estate research firms and any and all agents
for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the services described in this Section 3, including but not
limited to entering into contracts in the name of the Company or the Operating Partnership with any of the foregoing; 
 e. consult with the
officers of the Company and the Board and assist the Board in the formulation and implementation of the Company’s financial and investment policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making
of investments consistent with the investment objectives and policies of the Fund and in connection with any borrowings proposed to be undertaken by the Fund; 
 f. (i) source potential Investments and analyze and recommend potential Investments for the Fund in compliance with the investment objectives and policies of the Fund and Section 4 hereof,
(ii) structure and negotiate the terms and conditions of transactions and arrange for any financing pursuant to which Investments will be made by the Fund; and (iii) after and consistent with the approval of the Board of Directors close
such Investments on behalf of the Fund. 
 g. manage the Fund’s Investments, including without limitation, by (i) entering into
leases for the Fund’s Investments, (ii) supervising property management, leasing, development and construction and other services provided by third parties for the Fund’s Investments and entering into such agreements or contracts as
may be necessary or advisable therefore, (iii) to the extent necessary, performing all other operational functions for the maintenance and administration of the Fund’s Investments, and (iv) arranging for refinancing and making other
changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with the Fund’s investments; 
  

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 h. if and to the extent that the Advisor deems appropriate, negotiate on behalf of the Fund with banks or
lenders for loans to be made to the Fund or with respect to its Investments, and negotiate on behalf of the Fund with investment banking firms and broker-dealers or negotiate private sales of Partnership Units (as defined in the OP Partnership
Agreement) or obtain loans for the Fund, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third parties incurred by the Advisor in connection
with the foregoing shall be the responsibility of the Fund; 
 i. provide the Fund with all necessary cash management services; 

j. establish and maintain one or more bank accounts in its own name for the account of the Company and the Operating Partnership or in the name of the
Company and the Operating Partnership, and collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, as applicable; provided that no funds
shall be commingled with the funds of the Advisor; and provided further that the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board and to the auditors of the Fund; 
 k. provide the Board with reports of the Advisor’s performance of services under this Agreement from time to time, or at any time reasonably
requested by the Board; 
 l. obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the
value of the Fund’s investments in Investments; 
 m. provide the Board with periodic reports regarding prospective investments in
Investments; 
 n. deliver to or maintain on behalf of the Fund copies of all appraisals obtained in connection with the investments in
Investments; 
 o. to the extent that the approval of the Board or the Independent Directors is not otherwise required, notify the Board of
all proposed material transactions before they are completed; and 
 p. do all other things reasonably necessary to assure its ability to
render the services described in this Agreement. 
 4. Conflicts of Interest. 
 a. Certain Affiliates of the Advisor currently make or may make real estate investments or currently may sponsor, manage, provide advice with respect to
or offer real estate investment opportunities to other Persons (including, without limitation, any other Affiliate) that currently or may make such investments. 
  

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 b. Notwithstanding Section 4(a) hereof, the Advisor shall, and shall ensure that its Affiliates
shall, offer to the Fund prior to offering to any Affiliate or any other Person all Core and Core-Plus Investment opportunities that are located in the United States and sourced by the Advisor or its Affiliates; provided however that if the Advisor
determines that a Core and Core-Plus Investment that is located in the United States and is sourced by the Advisor or any Affiliate thereof is not appropriate for the Fund because the Fund does not have sufficient un-invested funds to make such
Investment or the Investment is not appropriate in light of the Fund’s diversification needs or goals in terms of geography or Investment size, then any Affiliate of the Advisor may make such Investment or offer such Investment to another
Person (including, without limitation, any other Affiliate) for investment. 
 c. The Advisor and its Affiliates may, but shall not be
obligated to, offer to the Fund any Investment opportunities that are not Core and Core-Plus Investments but are located in the United States and, in their sole discretion, may make such Investments or offer such opportunities to any Person
(including without limitation any other Affiliate). 
 d. The Fund has determined that it will not make Investments outside of the United
States. Neither the Advisor nor its Affiliates shall attempt to source for the Fund any investments outside of the United States, and the Advisor’s Affiliates, in their sole discretion, may invest in such opportunities or offer them to any
Person (including without limitation any other Affiliate). Furthermore, the Fund and the Advisor hereby agree that notwithstanding any potential applicability of Section 4(b) hereof, neither the Advisor nor its Affiliates shall be required to
source for the Fund any investments that are Senior Living Assets or healthcare facilities and that any of the Advisor’s Affiliates, in their sole discretion, may make such investment or offer such opportunities to any Person (including without
limitation any other Affiliate). 
 5. Authority of Advisor.  
 a. Pursuant to the terms of this Agreement (including the restrictions included in this Section 5 and in Section 7 hereof), and subject to the
continuing and exclusive authority of the Board over the management of the Company, the Company and the Operating Partnership hereby delegate to the Advisor the authority to perform, on behalf of the Fund, the services described in Section 3
hereof. 
 b. The Advisor hereby acknowledges the authority of the Advisor under this Agreement is subject to the investment limitations
described in Article X of the Articles and the approvals required for certain transactions between the Advisor or its Affiliates and the Company as set forth in Article XI of the Articles. 
 c. If any transaction requires approval by the Board or the Independent Directors under the Articles, the Advisor will deliver to the Independent
Directors all documents required by them to properly evaluate the proposed transaction. 
  

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 d. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority
set forth in this Section 5 on behalf of the Company (including the Company in its capacity as general partner of the Operating Partnership). 
 6. Records; Access. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Fund and by counsel, auditors and authorized agents of the Fund at any
time or from time to time during normal business hours. The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating Partnership. 
 7. Limitations on Activities. Notwithstanding anything else in this Agreement to the contrary, the Advisor shall refrain from taking any
action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended, (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company (including federal and state securities laws), or (d) otherwise not be permitted by the Articles, the Bylaws of the Company or the
OP Partnership Agreement; except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action
until it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for acting in accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its
directors, officers, members, managers and employees and the directors, officers, managers, stockholders, members, partners and employees of the Advisor’s Affiliates shall not be liable to the Company or the Operating Partnership for any act or
omission by the Advisor, its directors, officers, members, managers, employees or Affiliates except as provided in Sections 16 and 17 of this Agreement. 
 8. Relationship with Directors. Directors, officers and employees of the Advisor or any Affiliate of the Advisor may serve as Directors and as officers of the Company; provided that, no director, officer
or employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer of the Company other than reasonable reimbursement for travel and
related expenses incurred in attending meetings of the Board. 
 9. Fees. 
 a. Acquisition Fees and Expenses. Subject to the following sentence, the Fund shall pay to the Advisor, as compensation for
services rendered by the Advisor in connection with the investigation, selection and acquisition (by purchase, investment or exchange) of Investments, with the exception of loans for which a Origination Fee shall be paid as described in
Section 9(b) hereof (the “Paladin Acquisition Fee”), in an amount equal to 1.5% of (1) the Purchase Price of a Real Property Investment acquired directly; (2) the Fund’s allocable cost of a property acquired in a
joint venture or (3) with respect to Real Estate Related Investments, the funds advanced for such investment. The Fund’s allocable cost of a joint venture investment shall equal the product of (i) the amount actually paid or allocated
to the purchase, development, construction or improvement of properties by the joint venture, inclusive of expenses related thereto, and the amount of outstanding debt 

  

 12 

 
associated with such properties and the joint venture, and (ii) the Fund’s percentage economic interest in the joint venture. The total of all
Acquisition Fees (including the Paladin Acquisition Fee) and any Acquisition Expenses incurred by the Advisor and reimbursed by the Company in accordance with Section 10(a)(ii) hereof shall not exceed an amount equal to 6.0% of (i) for any
Investment acquired by the Fund directly or indirectly other than a Real Estate Related Investment, the Purchase Price of the underlying property, and (ii) for any preferred equity securities acquired by the Fund directly or indirectly, 6.0% of
the amount of the underlying investment in preferred equity securities. The Paladin Acquisition Fee payable with respect to the acquisition of any Investment shall be paid to the Advisor by the Fund at the time of such acquisition. The Advisor may
elect, in its sole discretion, to defer (without interest) payment of any Paladin Acquisition Fee by providing written notice of such deferral to the Fund. 
 b. Origination Fees. Subject to the following sentence, the Fund shall pay to the Advisor, as compensation for services rendered by the Advisor in connection with the investigation, selection, sourcing
and acquisition or origination of loans an Origination Fee for each such investigation, selection, sourcing and acquisition or origination. With respect to the acquisition or origination of a loan to be wholly owned by the Fund, the Origination Fee
payable to the Advisor shall equal 1.5% of the amount funded by the Fund to acquire or originate the loan, including any Acquisition Expenses related to such investment and any debt used to fund the acquisition or origination of the loan. The Fund
will not pay a Origination Fee to the Advisor with respect to any transaction pursuant to which the Fund is required to pay the Advisor an Acquisition Fee. The total of all Origination Fees and related Acquisition Expenses incurred by the Advisor
and reimbursed by the Company in accordance with Section 10(a)(ii) hereof shall not exceed an amount equal to 6.0% of the funds advanced with respect to the loan. The Advisor shall submit an invoice to the Fund following the closing of a loan,
accompanied by a computation of the Origination Fee. The Origination Fee payable to the Advisor shall be paid at the closing of the transaction upon receipt of the invoice by the Fund; provided, however, the Advisor may elect, in its sole
discretion, to defer (without interest) payment of any Origination Fee by providing written notice of such deferral to the Fund. 
 c. Asset Management Fee. On a monthly basis, the Fund shall pay the Advisor an “Asset Management Fee” in an amount equal to one-twelfth of 0.6% of (1) the Purchase Price of a Real Property Investment
acquired directly; (2) the Fund’s allocable cost of a property acquired in a joint venture or (3) with respect to Real Estate Related Investments, the funds advanced for such investment. The Fund’s allocable cost of a joint
venture investment shall equal the product of (i) the amount actually paid or allocated to the purchase, development, construction or improvement of properties by the joint venture, inclusive of expenses related thereto, and the amount of
outstanding debt associated with such properties and the joint venture, and (ii) the Fund’s percentage economic interest in the joint venture. The Advisor may elect, in its sole discretion, to defer (without interest) payment of the Asset
Management Fee in any month by providing written notice of such deferral to the Fund. 
  

 13 

 d. Subordinated Disposition Fee.  
 i. If the Advisor or one of its Affiliates provides a substantial amount of services (as determined by a majority of the Independent
Directors) in connection with the Sale of one or more Investments, the Fund shall pay to the Advisor or such Affiliate a “Subordinated Disposition Fee” equal to the lesser of (A) one-half of a Competitive Real Estate
Commission, and (B) 3.0% of the proceeds of the Sale of such Investment. The Subordinated Disposition Fee will be payable only if the following condition (the “Subordination Condition”) has been satisfied as of the date of
payment: the Stockholders must have received Dividends in an amount equal to their Remaining Capital plus their 8% Return. To the extent that Subordinated Disposition Fees are not payable by the Fund at the time of the Sale of an Investment because
the Subordination Condition has not been satisfied, any unpaid fees will be paid at such time as the Subordination Condition has been satisfied. The Subordinated Disposition Fee may be paid in addition to real estate commissions paid to
non-Affiliates in connection with any Sale of an Investment; provided that the total real estate commissions paid to all Persons by the Fund shall not exceed an amount equal to the lesser of (X) 6.0% of the proceeds of the Sale of such
Investment, and (Y) the Competitive Real Estate Commission with respect to the Sale of such Investment. 
 ii. The
Advisor may elect, in its sole discretion, to defer (without interest) payment of any Subordinated Disposition Fee payable to the Advisor by providing written notice of such deferral to the Fund. 
 e. Subordinated Distribution.  
 i. After Stockholders have received Dividends in an amount equal to the Invested Capital plus an 8% Return, the Advisor is entitled to receive a cash distribution equal to 10.0% of the remaining net sales proceeds
from the Sale of Investments. The Advisor shall not be entitled to such distributions if a Listing occurs or upon the termination of this Agreement. 
 ii. Upon the termination of this Agreement, the Advisor shall not be entitled to Subordinated Disposition Fees. If a Listing has not occurred as of the date of the termination of this Agreement and the Advisor was not
terminated for Cause, the Advisor shall receive a distribution, in the form of (A) Shares, (B) a promissory note with market terms, payable solely from the proceeds of Sales of Investments, due and payable no later than three years from
the date of issuance of such promissory note, or (C) any combination thereof, equal to 10.0% of the amount by which (A) the appraised value of the Company’s assets on the date of termination of this Agreement, less any indebtedness
secured by such assets, plus total Dividends made through the date of the termination of this Agreement, exceeds (B) the Remaining Capital and an amount that, if distributed to the Stockholders as of the termination of this Agreement, would
have provided them an annual 8% Return. In the event that a promissory note is issued hereunder and such promissory note has not been paid in full out of the 

  

 14 

 
proceeds of the Company’s Sales of Investments following the three-year term of the promissory note, the outstanding balance of such promissory note
may, at the Advisor’s election, be converted into Shares, with the number of Shares to be determined based on the fair market value of the Shares upon issuance as determined by the Board including a majority of Independent Directors. In the
event the Advisor receives Shares and the Company’s Shares are not listed on a national securities exchange, at the election of the Advisor, the Advisor and the Company shall enter into an agreement whereby the Company shall register the resale
of such Shares with the SEC. 
 iii. On the Listing Date, the Advisor shall not be entitled to Subordinated Disposition Fees.
If the Advisor has not been terminated under this Agreement as of the Listing Date, the Advisor shall receive a distribution, in the form of (A) Shares, (B) a promissory note with market terms, payable solely from the proceeds of Sales of
Investments, due and payable no later than three years from the date of issuance of such promissory note, or (C) any combination thereof, equal to 10.0% of the amount by which (A) the market value of the Company’s outstanding Shares
plus Dividends made prior to Listing, exceeds (B) the Remaining Capital and an amount that, if distributed to the Stockholders as of the Listing Date, would have provided them an annual 8% Return. In the event a promissory note is issued
hereunder and such promissory note has not been paid in full out of the proceeds of the Company’s Sales of Investments following the three-year term of the promissory note, the outstanding balance of such promissory note may, at the
Advisor’s election, be converted into Shares, with the number of Shares to be determined based on the fair market value of the Shares upon issuance as determined by the Board including a majority of Independent Directors. In the event the
Advisor receives Shares and the Company’s Shares are not listed on a national securities exchange, at the election of the Advisor, the Advisor and the Company shall enter into an agreement whereby the Company shall register the resale of such
Shares with the SEC. 
 10. Expenses. 
 a. Subject to Section 11 hereof, in addition to the compensation paid to the Advisor pursuant to Section 9 hereof, the Fund
shall pay directly or reimburse the Advisor and its Affiliates for all of the costs and expenses paid or incurred by the Advisor or such Affiliates that are in any way related to the operation of the Fund or to the Fund’s business, including,
but not limited to: 
 i. the Organization and Offering Expenses; provided, however, that within 60 days after the end of the
month in which an Offering terminates, the Advisor shall reimburse the Company for any Organization and Offering Expenses reimbursement received by the Advisor pursuant to this Section 10 to the extent that such reimbursement of expenses
associated with the Offering exceeds 3.0% of the Gross Proceeds from the Primary Offering. The Advisor shall be responsible for the payment of all such Organization and Offering Expenses in excess of 3.0% of the Gross Proceeds; 
  

 15 

 ii. subject to Sections 9(a) and 9(b), all Acquisition Expenses incurred in
connection with the investigation, selection and acquisition of an Investment; 
 iii. the actual cost of goods and services
used by the Fund and obtained from entities not affiliated with the Advisor, other than Acquisition Expenses, including, but not limited to, fees of appraisers, consulting fees, accounting fees, legal fees, brokerage fees and underwriting fees paid
in connection with the purchase and sale of securities, fees paid to escrow agents, transfer agents, corporate fiduciaries and custodians, collection agent fees, depositary fees, loan fees, mortgagor fees and other banking fees, insurance premiums
and fees to builders, developers, contractors, property managers and leasing agents; 
 iv. interest and other costs for the
Fund’s indebtedness, including discounts, loan fees (excluding Origination Fees), points and other similar fees; 
 v.
taxes and assessments on income or property of the Fund and taxes as an expense of doing business; 
 vi. costs associated
with insurance required in connection with the business of the Fund (including directors’ and officers’ liability insurance); 
 vii. expenses of managing and operating Investments owned by the Fund, whether or not payable to an Affiliate of the Fund or the Advisor, including the costs of maintaining, repairing and improving any property;

 viii. expenses associated with the disposition of Investments, including, subject to Section 9(d), real estate
commissions; 
 ix. all expenses in connection with payments to the Directors and meetings of the Board and the Stockholders;

 x. expenses associated with Listing or with the issuance and distribution of Shares and Securities, such as selling
commissions and fees, advertising expenses, taxes, legal and accounting fees, Listing and registration fees; 
 xi. expenses
connected with payments of Dividends in cash or otherwise made or caused to be made by the Company to the Stockholders; 
 xii. expenses of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities;

 xiii. administrative service, accounting, finance, internal audit or investor relations expenses (including personnel costs
for the provision of all services under this Agreement; provided, however, that no reimbursement shall be made for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives a separate fee);

 xiv. audit, accounting and legal fees relating to the operations of the Fund; and 
  

 16 

 xv. all other costs and expenses in any way relating to the operation of the Fund or the
Fund’s business (other than any fees payable to the Advisor or its Affiliates by the Fund). 
 b. Subject to
Section 11 hereof, expenses incurred by the Advisor or its Affiliates on behalf of the Fund and payable pursuant to this Section 10 shall be reimbursed to the Advisor or such Affiliates no less than quarterly by the Fund within 60 days
after the end of each quarter. The Advisor shall prepare a statement documenting the expenses of the Fund during each quarter, and shall deliver such statement to the Fund within 45 days after the end of each quarter. The Advisor may elect, in its
sole discretion, to defer (without interest) any reimbursement of expenses payable pursuant to this Section 10 for any quarter by providing written notice of such deferral to the Fund. 
 11. Operating Expenses. The Fund shall not reimburse the Advisor for Operating Expenses that in the fiscal year then ended exceed the
greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Rule”) for such year. Within 60 days after the end of each fiscal quarter, the Advisor will reimburse the Fund for any amounts by which the Operating
Expenses exceeded the 2%/25% Rule for the 12 months then ended, unless a majority of the Independent Directors determine, based on such unusual and non-recurring factors which they deem sufficient, that such excess was justified. Any such
determination by the Independent Directors and the reasons supporting such determination shall be reflected in the minutes of the meetings of the Board of Directors. Within 60 days after the end of any fiscal quarter of the Fund for which Operating
Expenses (for the 12 months just ended) exceed the 2%/25% Rule, the Advisor shall send a written disclosure of such fact to the Stockholders, together with an explanation of the factors the Independent Directors considered in arriving at the
conclusion that such higher Operating Expenses were justified, if applicable. 
 12. Other Services. Should the Fund request
that the Advisor or any director, officer or employee thereof render services for the Fund other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts as are approved by the Independent
Directors, subject to the limitations contained in the Articles, and shall not be deemed to be services pursuant to the terms of this Agreement. 
 13. Other Activities of the Advisor. Nothing in this Agreement, but subject to Section 4 hereof, shall prevent the Advisor and its Affiliates from engaging in any and all other activities, including, without limitation,
making real estate investments or sponsoring, managing, providing advice with respect to or offering real estate investment opportunities to other Persons (including, without limitation, any other Affiliate). The Advisor, however, shall devote
sufficient resources to the management of the Fund to discharge its duties under Section 3 hereof. This Agreement shall not limit or restrict the right of any director, officer, manager, member or employee of the Advisor or its Affiliates to
engage in any other business or to render services of any kind to any other Person, including, without limitation, but subject to Section 4 hereof, sourcing, offering, approving or making Investments. 
 14. Relationship of the Advisor and the Fund. Nothing in this Agreement shall be construed to make the Fund and the Advisor partners or
joint venturers or impose any liability as such on either of them. 
  

 17 

 15. Term; Termination of Agreement.  
 a. Unless terminated in accordance with Section 15(b) hereof, this Agreement shall continue in force until the first anniversary of the date hereof.
Thereafter, this Agreement may be renewed for an unlimited number of successive one-year terms upon the mutual agreement of the parties. Prior to the Company agreeing to renew this Agreement for any additional one-year term, the Board shall evaluate
the performance of the Advisor in accordance with Section 9.1 of the Articles. Each such renewal shall be for a term of no more than one year. The failure of the parties to renew this agreement prior to the expiration of its term shall
constitute a termination of this Agreement. 
 b. This Agreement will automatically terminate upon Listing. This agreement also may be
terminated: 
 i. for any reason by the Company or the Advisor, upon 60 days written notice to the other party; provided that,
if termination is by the Company, then such termination must be approved by a majority of the Independent Directors; 
 ii. by
the Company or the Operating Partnership at any time for Cause; or 
 iii. by the Advisor at any time for Good Reason.

 c. Upon termination, the Fund shall promptly pay to the Advisor any fees then due and payable and any reimbursable expenses incurred as of
the Termination Date. Notwithstanding the termination of this Agreement, Sections 9, 10, 11 and 12 shall continue in full force and effect until all amounts payable thereunder to the Advisor are paid in full. 
 d. The Advisor shall promptly upon termination: 
 iv. pay over to the Fund all money collected and held for the account of the Fund pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

 v. deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of
all money held by the Advisor, covering the period following the date of the last accounting furnished to the Board; 
 vi.
deliver to the Fund all assets, including all Investments, and documents of the Fund then in the custody of the Advisor; and 
 vii. cooperate with the Fund to provide an orderly management transition. 
 16. Indemnification by the Company.

 a. Subject to the limitations of Section 16.a.i and ii, the Company shall indemnify and hold harmless the Advisor and its
Affiliates, including their respective officers, directors, manager, stockholders, partners, members and employees (the “Indemnitees”), to the fullest extent permitted by the laws of the State of Maryland and subject to the
limitations of Section II.G. of the North American Securities Administrators, Inc. Statement of Policy Regarding Real Estate Investment Trusts (the “NASAA Guidelines”) in effect from time to time from all liability, claims, damages
or losses arising in the performance of their duties hereunder (collectively, “Claims”), and related expenses, including reasonable attorneys’ fees; provided, however, that in no event shall this sentence enlarge the
indemnification permitted below under Section 16.a.i and ii consistent with the NASAA Guidelines. Notwithstanding anything to the 

  

 18 

 
contrary in this Section 16, an Indemnitee shall not be entitled to indemnification or be held harmless pursuant to this Section 16 for any
activity which the Indemnitee shall be required to indemnify or hold harmless the Company pursuant to Section 17 and: 
 i. The Company will not indemnify any Indemnitee unless: 
 A. The Indemnitee has determined in good faith that the
course of conduct which caused the loss, liability or expenses was in the best interests of the Company; 
 B. The Indemnitee
was acting on behalf of the Company or performing services for the Company; 
 C. Such liability or loss was not the result
of: 
 1. In the case of any Indemnitee other than an Independent Director, negligence or misconduct by the Indemnitee, or

 2. In the case that the Indemnitee is an Independent Director, gross negligence or willful misconduct by the Indemnitee;
and 
 D. any indemnification or agreement to hold harmless may be paid only out of the Net Assets of the Company and no
portion may be recoverable from the Stockholders; 
 ii. notwithstanding anything to the contrary in Section 16.b.i, the
Company will not indemnify any Indemnitee for losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws unless: 
 A. there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular
Indemnitee; 
 B. such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the
particular Indemnitee; or 
 C. a court of competent jurisdiction approves a settlement of the claims against the particular
Indemnitee and finds that indemnification of the settlement and related costs should be made, and the court considering the matter has been advised of the position of the SEC and the published position of any state securities regulatory authority in
which securities of the company were offered or sold as to indemnification for securities law violations. 
 b. Advancement of
Expenses. The Company shall pay or reimburse reasonable legal expenses and other costs incurred by an Indemnitee in advance of final disposition of any and all Claims only if all of the following conditions are satisfied: (a) the Claim
relates to acts or omissions with respect to the performance of duties or services on behalf of the Company, (b) either (i) the Claim was initiated by a third party who is not a Stockholder, or (ii) if the Claim was initiated by a
Stockholder, the initiating Stockholder was acting in his or her capacity as such and the advancement was approved by a court of competent jurisdiction, and (c) the Indemnitee provides the Company with a written undertaking to repay the amount
paid or reimbursed by the Company, together with the applicable legal rate of interest thereon, if it is ultimately determined that the Indemnitee did not comply with the requisite standard of conduct and is not entitled to indemnification.

  

 19 

 17. Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company
from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance
and are incurred by reason of the Advisor’s bad faith, fraud, misfeasance, misconduct, negligence or reckless disregard of its duties, but the Advisor shall not be held responsible for any action of the Board in following or declining to follow
any advice or recommendation given by the Advisor. 
 18. Voting of Shares and Partnership Units. The Advisor shall not vote
any Shares or Partnership Units (as defined in the OP Partnership Agreement) it now owns, or hereafter acquires, in any vote of the Stockholders for the election of Directors or in any vote of the Stockholders or the Limited Partners (as defined in
the OP Partnership Agreement) regarding the approval or termination of any contract with the Advisor or any of its Affiliates, including this Agreement. 
 19. Notices. Any notice required or permitted to be given or made to a party under this Agreement shall be in writing and shall be deemed given or made when delivered if delivered in person, sent by
first class United States mail, by overnight delivery or via facsimile to such party at the address of such party set forth below or such other address of which such party shall notify the other parties in writing. Notwithstanding the foregoing, a
party may elect to deliver any such notice by E-mail, or by any other electronic means, in which case such communication shall be deemed given or made one day after being sent. 
 To the Company, the Operating Partnership, or the Board: 
 Paladin Realty Income Properties, Inc. 
 10880 Wilshire Boulevard 
 Suite 1400 
 Los Angeles, CA 90024 

To the Advisor: 
 Paladin Realty Advisors,
LLC 
 10880 Wilshire Boulevard 
 Suite 1400 
 Los Angeles, CA 90024 
 20. Assignment to an Affiliate. This Agreement may be assigned by the Advisor to an Affiliate of the Advisor only with the approval of a majority of the Board (including a majority of the Independent
Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board. This Agreement shall not be assigned by the Company or the Operating Partnership without the consent of
the Advisor, except in the case of an assignment by the Company or the Operating Partnership to a successor to all of the assets, rights and obligations of the Company or the Operating Partnership, respectively, in which case such successor shall be
bound hereunder and by the terms of said assignment in the same manner as the Company and the Operating Partnership are bound by this Agreement. 
  

 20 

 21. Modification. This Agreement shall not be changed, modified, terminated or discharged,
in whole or in part, except by an instrument in writing signed by each of the parties hereto, or their respective successors or assigns. 
 22. Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other
or others of them may be invalid or unenforceable in whole or in part. 
 23. Construction. The provisions of this Agreement
shall be construed and enforced in accordance with and governed by the laws of the State of California without regard to the principles of conflicts of laws thereof. 
 24. Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous
agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of
the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
 25. Waivers. Neither the failure nor any delay on the part of a party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as
a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 26. Number and Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include
any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 27.
Headings. The headings contained in this Agreement are for convenience only, do not form a part of this Agreement and are not to be used in the construction or interpretation hereof. 
 28. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. 
 29. Name. Paladin Realty Partners, LLC, an Affiliate of the Advisor, has a proprietary interest in the name “Paladin.” Accordingly, and in recognition of this right, if at any time the Fund ceases to retain the
Advisor or one of its Affiliates to perform the services of the Advisor under this Agreement, the Fund will cease to conduct business under or use the name “Paladin” or any variation or diminutive thereof and each of the Company and the
Operating Partnership shall use its best efforts to change their respective names (and the names of any of their subsidiaries) to a name that does not contain the name “Paladin” or any other word or 

  

 21 

 
words that might, in the sole discretion of the Advisor, be susceptible of indication of some form of relationship between the Fund and the Advisor or any
Affiliate thereof. Consistent with the foregoing, the parties acknowledge and agree that the Advisor or one or more of its Affiliates has organized or sponsored, and intends to continue to organize and sponsor, other investment vehicles (including
vehicles for investment in real estate) and financial and service organizations having “Paladin” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company or the Operating
Partnership. 
 [SIGNATURE PAGE FOLLOWS] 
  

 22 

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

			
	 PALADIN REALTY INCOME
 PROPERTIES, INC.

		
	 By:
	 	 /s/ James R. Worms

	 Name:
	 	James R. Worms
	 Title:
	 	President and Chief Executive Officer
	
	 PALADIN REALTY INCOME
 PROPERTIES,
L.P.

		
	By:	 	Paladin Realty Income Properties, Inc.,
		 	its general partner
		
	By:	 	 /s/ James R. Worms

	Name:	 	James R. Worms
	Title:	 	President and Chief Executive Officer
	
	PALADIN REALTY ADVISORS, LLC
		
	By:	 	 Paladin Realty Partners, LLC,
 as sole
member

		
	By:	 	 /s/ James R. Worms

	Name:	 	James R. Worms
	Title:	 	President and Manager

  

 23

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