Document:

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                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

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                           SECOND AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                   FELDMAN EQUITIES OPERATING PARTNERSHIP, LP

                         a Delaware limited partnership

                              --------------------

            THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
            OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,
           TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
         REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO THE PARTNERSHIP
         AN OPINION OF COUNSEL SATISFACTORY TO THE PARTNERSHIP, IN FORM
          AND SUBSTANCE SATISFACTORY TO THE PARTNERSHIP, TO THE EFFECT
          THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE
        EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND UNDER
                 APPLICABLE STATE SECURITIES OR "BLUE SKY LAWS.

                   AMENDED AND RESTATED AS OF AUGUST 26, 2005

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                                TABLE OF CONTENTS

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<S>      <C>          <C>                                                                                       <C>
ARTICLE I             DEFINED TERMS..............................................................................1

ARTICLE II            ORGANIZATIONAL MATTERS....................................................................17

         Section 2.1.      Organization.........................................................................17

         Section 2.2.      Name.................................................................................17

         Section 2.3.      Registered Office and Agent; Principal Office........................................18

         Section 2.4.      Power of Attorney....................................................................18

         Section 2.5.      Term.................................................................................19

ARTICLE III           PURPOSE...................................................................................19

         Section 3.1.      Purpose and Business.................................................................19

         Section 3.2.      Powers...............................................................................19

         Section 3.3.      Partnership Only for Partnership Purposes Specified..................................20

         Section 3.4.      Representations and Warranties by the Parties........................................20

ARTICLE IV            CAPITAL CONTRIBUTIONS.....................................................................21

         Section 4.1.      Capital Contributions of the Partners................................................21

         Section 4.2.      Classes of Partnership Units.........................................................21

         Section 4.3.      Issuances of Additional Partnership Interests........................................21

         Section 4.4.      Additional Funds and Capital Contributions...........................................22

         Section 4.5.      Stock Option Plan....................................................................24

         Section 4.6.      PI Units.............................................................................24

         Section 4.7.      No Interest; No Return...............................................................27

         Section 4.8.      Conversion or Redemption of Earnout Units............................................27

         Section 4.9.      Conversion of PI Units...............................................................28

         Section 4.10.     Other Contribution Provisions........................................................31

         Section 4.11.     Not Publicly Traded..................................................................31

ARTICLE V             DISTRIBUTIONS.............................................................................31

         Section 5.1.      Requirement and Characterization of Distributions....................................31

         Section 5.2.      Property Interests Not Held Through the General Partner..............................31

         Section 5.3.      Distributions In-Kind................................................................32

         Section 5.4.      Amounts Withheld.....................................................................32

         Section 5.5.      Distributions Upon Liquidation.......................................................32

         Section 5.6.      Distributions to Reflect Issuance of Additional Partnership Units....................32

         Section 5.7.      Restricted Distributions.............................................................32
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<S>      <C>          <C>                                                                                       <C>
ARTICLE VI            ALLOCATIONS...............................................................................32

         Section 6.1.      Timing and Amount of Allocations of Net Income and Net Loss..........................32

         Section 6.2.      General Allocations..................................................................32

         Section 6.3.      Additional Allocation Provisions.....................................................34

         Section 6.4.      Tax Allocations......................................................................37

ARTICLE VII           MANAGEMENT AND OPERATIONS OF BUSINESS.....................................................37

         Section 7.1.      Management...........................................................................37

         Section 7.2.      Certificate of Limited Partnership...................................................41

         Section 7.3.      Restrictions on General Partner's Authority..........................................41

         Section 7.4.      Reimbursement of the General Partner and Parent......................................42

         Section 7.5.      Outside Activities of the General Partner............................................43

         Section 7.6.      Contracts with Affiliates............................................................44

         Section 7.7.      Indemnification......................................................................44

         Section 7.8.      Liability of the General Partner.....................................................46

         Section 7.9.      Other Matters Concerning the General Partner and the Parent..........................47

         Section 7.10.     Title to Partnership Assets..........................................................47

         Section 7.11.     Reliance by Third Parties............................................................48

ARTICLE VIII          RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS................................................48

         Section 8.1.      Limitation of Liability..............................................................48

         Section 8.2.      Management of Business...............................................................48

         Section 8.3.      Outside Activities of Limited Partners...............................................48

         Section 8.4.      Return of Capital....................................................................49

         Section 8.5.      Adjustment Factor....................................................................49

         Section 8.6.      Redemption Rights....................................................................49

ARTICLE IX            BOOKS, RECORDS, ACCOUNTING AND REPORTS....................................................51

         Section 9.1.      Records and Accounting...............................................................51

         Section 9.2.      Partnership Year.....................................................................52

         Section 9.3.      Reports..............................................................................52

ARTICLE X             TAX MATTERS...............................................................................52

         Section 10.1.     Preparation of Tax Returns...........................................................52

         Section 10.2.     Tax Elections........................................................................52

         Section 10.3.     Tax Matters Partner..................................................................53
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<S>      <C>          <C>                                                                                       <C>
         Section 10.4.     Withholding..........................................................................54

         Section 10.5.     Organizational Expenses..............................................................54

ARTICLE XI            TRANSFERS AND WITHDRAWALS.................................................................54

         Section 11.1.     Transfer.............................................................................54

         Section 11.2.     Transfer of General Partner's Partnership Interest...................................55

         Section 11.3.     Transfer of Limited Partners' Partnership Interests..................................56

         Section 11.4.     Substituted Limited Partners.........................................................57

         Section 11.5.     Assignees............................................................................57

         Section 11.6.     General Provisions...................................................................58

ARTICLE XII           ADMISSION OF PARTNERS.....................................................................59

         Section 12.1.     Admission of Successor General Partner...............................................59

         Section 12.2.     Admission of Additional Limited Partners.............................................59

         Section 12.3.     Amendment of Agreement and Certificate of Limited Partnership........................60

         Section 12.4.     Limit on Number of Partners..........................................................60

ARTICLE XIII          DISSOLUTION, LIQUIDATION AND TERMINATION..................................................60

         Section 13.1.     Dissolution..........................................................................60

         Section 13.2.     Winding Up...........................................................................61

         Section 13.3.     Deemed Distribution and Recontribution...............................................63

         Section 13.4.     Rights of Limited Partners...........................................................63

         Section 13.5.     Notice of Dissolution................................................................63

         Section 13.6.     Cancellation of Certificate of Limited Partnership...................................64

         Section 13.7.     Reasonable Time for Winding-Up.......................................................64

ARTICLE XIV           PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS.....................64

         Section 14.1.     Procedures for Actions and Consents of Partners......................................64

         Section 14.2.     Amendments...........................................................................64

         Section 14.3.     Meetings of the Partners.............................................................65

ARTICLE XV            GENERAL PROVISIONS........................................................................66

         Section 15.1.     Addresses and Notice.................................................................66

         Section 15.2.     Titles and Captions..................................................................66

         Section 15.3.     Pronouns and Plurals.................................................................66

         Section 15.4.     Further Action.......................................................................66

         Section 15.5.     Binding Effect.......................................................................66
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<S>      <C>          <C>                                                                                       <C>
         Section 15.6.     Waiver...............................................................................66

         Section 15.7.     Counterparts.........................................................................67

         Section 15.8.     Applicable Law.......................................................................67

         Section 15.9.     Entire Agreement.....................................................................67

         Section 15.10.    Invalidity of Provisions.............................................................67

         Section 15.11.    Limitation to Preserve REIT Status...................................................67

         Section 15.12.    No Partition.........................................................................68

         Section 15.13.    No Third-Party Rights Created Hereby.................................................68

         Section 15.14.    No Rights as Shareholders of General Partner or Stockholders of Parent...............68

         Section 15.15.    Creditors............................................................................68

Exhibit A PARTNERS AND PARTNERSHIPS UNITS......................................................................A-1

Exhibit B NOTICE OF REDEMPTION.................................................................................B-1

Exhibit C OBLIGATED PARTNERS AND PROTECTED AMOUNTS.............................................................C-1

Exhibit D CONVERSION NOTICE....................................................................................D-1

Exhibit E FORCED CONVERSION NOTICE.............................................................................E-1
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         THIS SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF
FELDMAN EQUITIES OPERATING PARTNERSHIP, LP, dated as of August 26, 2005 is
entered into by and among Feldman Holdings Business Trust I, a Maryland business
trust (the "General Partner"), and the limited partners listed on Exhibit A
hereto (each a "Limited Partner").

         WHEREAS, Feldman Equities Operating Partnership, LP, a Delaware limited
partnership (the "Partnership"), was formed on August 6, 2004, pursuant to, and
in accordance with, the Delaware Revised Uniform Limited Partnership Act (4 Del.
C. ss. 17-101, et seq.) by the filing of a Certificate of Limited Partnership
with the Delaware Secretary of State;

         WHEREAS, at the time of the Partnership's formation, the Partners at
such time, entered into that certain Agreement of Limited Partnership of Feldman
Equities Operating Partnership, LP dated as of August 13, 2004 (the "Original
Agreement"), pursuant to which the Partnership commenced its business;

         WHEREAS, the Original Agreement was amended by that certain Amended and
Restated Agreement of Limited Partnership of Feldman Equities Operating
Partnership, LP dated as of December 21, 2004 (the "Amended Partnership
Agreement"), at which time the Partners amended and restated the Original
Agreement in its entirety;

         WHEREAS, the Amended Partnership Agreement was amended by that certain
First Amendment to First Amended and Restated Agreement of Limited Partnership,
dated as of December 21, 2004, at which time the Partnership admitted additional
Limited Partners as described in the First Amendment;

         WHEREAS, the Partners desire to amend Sections 5.2 and 6.3.D of the
Amended Partnership Agreement to reflect the treatment of property interests
held by the General Partner, the Parent or any Affiliate of the General Partner
or the Parent that are not held through the Partnership; and

         WHEREAS, the Partners desire to amend and restate the Amended
Partnership Agreement in its entirety by entering into this Second Amended and
Restated Agreement of Limited Partnership and to hereafter continue the business
of the Partnership in accordance with its terms.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Partners agree as follows:

                                   ARTICLE I

                                  DEFINED TERMS

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

         "Act" means the Delaware Revised Uniform Limited Partnership Act (6
Del. C. ss. 17-101 et seq.), as it may be amended from time to time, and any
successor to such statute.

         "Actions" has the meaning set forth in Section 7.7 hereof.

         "Additional Funds" has the meaning set forth in Section 4.4.A hereof.

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         "Additional Limited Partner" means a Person who is admitted to the
Partnership as a Limited Partner pursuant to Section 4.3 and Section 12.2 hereof
and who is shown as such on the books and records of the Partnership.

         "Adjusted Capital Account" means the Capital Account maintained for
each Partner as of the end of each Fiscal Year (i) increased by any amounts
which such Partner is obligated to restore pursuant to any provision of this
Agreement or is deemed to be obligated to restore pursuant to the penultimate
sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(I)(5) and (ii)
decreased by the items described in Regulations Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6).
The foregoing definition of Adjusted Capital Account is intended to comply with
the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

         "Adjusted Capital Account Deficit" means, with respect to any Partner,
the deficit balance, if any, in such Partner's Adjusted Capital Account as of
the end of the relevant Partnership Year.

         "Adjustment Event" shall have the meaning set forth in Section 4.6.A
hereof.

         "Adjustment Factor" means 1.0; provided, however, that in the event
that:

                  (i) the Parent (a) declares or pays a dividend on its
         outstanding REIT Shares in REIT Shares or makes a distribution to all
         holders of its outstanding REIT Shares in REIT Shares, (b) splits or
         subdivides its outstanding REIT Shares or (c) effects a reverse stock
         split or otherwise combines its outstanding REIT Shares into a smaller
         number of REIT Shares, the Adjustment Factor shall be adjusted by
         multiplying the Adjustment Factor previously in effect by a fraction,
         (i) the numerator of which shall be the number of REIT Shares issued
         and outstanding on the record date for such dividend, distribution,
         split, subdivision, reverse split or combination (assuming for such
         purposes that such dividend, distribution, split, subdivision, reverse
         split or combination has occurred as of such time) and (ii) the
         denominator of which shall be the actual number of REIT Shares
         (determined without the above assumption) issued and outstanding on the
         record date for such dividend, distribution, split, subdivision,
         reverse split or combination;

                  (ii) the Parent distributes any rights, options or warrants to
         all holders of its REIT Shares to subscribe for or to purchase or to
         otherwise acquire REIT Shares (or other securities or rights
         convertible into, exchangeable for or exercisable for REIT Shares) at a
         price per share less than the Value of a REIT Share on the record date
         for such distribution (each a "Distributed Right"), then the Adjustment
         Factor shall be adjusted by multiplying the Adjustment Factor
         previously in effect by a fraction (a) the numerator of which shall be
         the number of REIT Shares issued and outstanding on the record date
         plus the maximum number of REIT Shares purchasable under such
         Distributed Rights and (b) the denominator of which shall be the number
         of REIT Shares issued and outstanding on the record date plus a
         fraction (1) the numerator of which is the maximum number of REIT
         Shares purchasable under such Distributed Rights times the minimum
         purchase price per REIT Share under such Distributed Rights and (2) the
         denominator of which is the Value of a REIT Share as of the record
         date; provided, however, that, if any such Distributed Rights expire or
         become no longer exercisable, then the Adjustment Factor shall be
         adjusted, effective retroactive to the date of distribution of the
         Distributed Rights, to reflect a reduced maximum number of REIT Shares
         or any change in the minimum purchase price for the purposes of the
         above fraction; and

                  (iii) the Parent shall, by dividend or otherwise, distribute
         to all holders of its REIT Shares evidences of its indebtedness or
         assets (including securities, but excluding any dividend or
         distribution referred to in subsection (i) above), which evidences of
         indebtedness or assets relate to assets not received by the Parent or
         its Subsidiaries pursuant to a pro rata distribution by the
         Partnership, then the Adjustment Factor shall be adjusted to equal the
         amount determined by multiplying the Adjustment Factor in effect
         immediately prior to the close of business on the date fixed for
         determination of stockholders entitled to receive such distribution by
         a fraction (i) the numerator of which shall be such Value of a REIT
         Share on the date fixed for such determination and (ii) the denominator
         of which shall be the Value of a REIT Share on the dates fixed for such
         determination less the then fair market value (as determined by the
         REIT, whose determination shall be conclusive) of the portion of the
         evidences of indebtedness or assets so distributed applicable to one
         REIT Share.

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         Any adjustments to the Adjustment Factor shall become effective
immediately after the effective date of such event, retroactive to the record
date, if any, for such event; provided, however, that any Limited Partner may
waive, by written notice to the General Partner, the effect of any adjustment to
the Adjustment Factor applicable to the OP Units held by such Limited Partner,
and, thereafter, such adjustment will not be effective as to such OP Units.

         "Affiliate" means, with respect to any Person, any Person directly or
indirectly controlling or controlled by or under common control with such
Person. For the purposes of this definition, "control" when used with respect to
any Person means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise, and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

         "Agreement" means this Second Amended and Restated Agreement of Limited
Partnership of Feldman Equities Operating Partnership, LP, as it may be amended,
supplemented or restated from time to time.

         "Amended Partnership Agreement" means the Amended and Restated
Agreement of Limited Partnership of Feldman Equities Operating Partnership, LP,
dated as of December 21, 2004, as amended by the First Amendment to Amended and
Restated Agreement of Limited Partnership of Feldman Equities Operating
Partnership, LP, dated as of December 21, 2004.

         "Appraised Value" means the appraised value of the Harrisburg Property
immediately prior to a Merger Event as determined by an appraiser selected by
the Board (including a majority of the Independent Directors).

         "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 hereof.

         "Available Cash" means, with respect to any period for which such
calculation is being made, the amount of cash available for distribution by the
Partnership as determined by the General Partner.

         "Average Market Price" means, on any day as to one OP Unit, the closing
sales price of one REIT Share (provided that one REIT Share would be received in
exchange for one OP Unit under this Agreement, otherwise the number of REIT
Shares (or fraction thereof) that would be received in exchange for one OP Unit)
as listed on the New York Stock Exchange averaged over a period of 21 Business
Days consisting of the day as of which "Average Market Price" is being
determined and the 20 consecutive business days prior to such day. If the day of
determination of Average Market Price is other than Business Day, Average Market
Price shall be determined as of the business day immediately preceding such day
as if it were the day of determination of Average Market Price. If at any time
such security is not listed on the New York Stock Exchange then, if there has
been a sale of REIT Shares for an aggregate amount exceeding $1 million to
persons or entities that are not affiliates of Parent within 90 days prior to
such time, the price per REIT Share (subject to proviso in the first sentence of
this definition) in the most recent such sale shall be deemed to be the Average
Market Price hereunder.

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         "Board" means the board of directors of the Parent.

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

         "Bylaws" means the Bylaws of the Parent, as amended, supplemented or
restated from time to time.

         "Capital Account" means, with respect to any Partner, the Capital
Account maintained by the General Partner for such Partner on the Partnership's
books and records in accordance with the following provisions:

                  A. To each Partner's Capital Account, there shall be added
         such Partner's Capital Contributions, such Partner's distributive share
         of Net Income and any items in the nature of income or gain that are
         specially allocated pursuant to Section 6.3 hereof, and the principal
         amount of any Partnership liabilities assumed by such Partner or that
         are secured by any property distributed to such Partner.

                  B. From each Partner's Capital Account, there shall be
         subtracted the amount of cash and the Gross Asset Value of any property
         distributed to such Partner pursuant to any provision of this
         Agreement, such Partner's distributive share of Net Losses and any
         items in the nature of expenses or losses that are specially allocated
         pursuant to Section 6.3 hereof, and the principal amount of any
         liabilities of such Partner assumed by the Partnership or that are
         secured by any property contributed by such Partner to the Partnership.

                  C. In the event any interest in the Partnership is Transferred
         in accordance with the terms of this Agreement, the transferee shall
         succeed to the Capital Account of the transferor to the extent that it
         relates to the Transferred interest.

                  D. In determining the principal amount of any liability for
         purposes of subsections (a) and (b) hereof, there shall be taken into
         account Code Section 752(c) and any other applicable provisions of the
         Code and Regulations.

                  E. The provisions of this Agreement relating to the
         maintenance of Capital Accounts are intended to comply with Regulations
         Sections 1.704-1(b) and 1.704-2, and shall be interpreted and applied
         in a manner consistent with such Regulations. If the General Partner
         shall determine that it is prudent to modify the manner in which the
         Capital Accounts are maintained in order to comply with such
         Regulations, the General Partner may make such modification provided
         that such modification will not have a material effect on the amounts
         distributable to any Partner without such Partner's Consent. The
         General Partner also shall (i) make any adjustments that are necessary
         or appropriate to maintain equality between the Capital Accounts of the
         Partners and the amount of Partnership capital reflected on the
         Partnership's balance sheet, as computed for book purposes, in
         accordance with Regulations Section 1.704-1(b)(2)(iv)(q) and (ii) make
         any appropriate modifications in the event that unanticipated events
         might otherwise cause this Agreement not to comply with Regulations
         Section 1.704-1(b) or Section 1.704-2.

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         "Capital Account Deficit" has the meaning set forth in Section 13.2.C
hereof.
         "Capital Contribution" means, with respect to any Partner, the amount
of money and the initial Gross Asset Value of any Contributed Property that such
Partner contributes to the Partnership or is deemed to contribute pursuant to
Section 4.4 hereof.

         "Capitalized Base Rent" means the quotient obtained by dividing (x) the
average annual net base rental payable under the applicable lease for the entire
non-cancelable portion of the term thereof (excluding any initial "free rent"
period of 120 days or less) divided by (y) 8%.

         "Cash Amount" means, with respect to a Tendering Party, an amount of
cash equal to the product of (A) the Value of a REIT Share and (B) such
Tendering Party's REIT Shares Amount determined as of the date of receipt by the
General Partner of such Tendering Party's Notice of Redemption or, if such date
is not a Business Day, the immediately preceding Business Day.

         "Certificate" means the Certificate of Limited Partnership of the
Partnership filed in the office of the Secretary of State of the State of
Delaware on August 6, 2004, as amended from time to time in accordance with the
terms hereof and the Act.

         "Charter" means the Articles of Incorporation of the Parent as filed
with the State Department of Assessments and Taxation of Maryland, as amended,
supplemented or restated from time to time.

         "Closing Price" has the meaning set forth in the definition of "Value."

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

         "Company Employees" means the employees of the Partnership, the Parent
and any of their subsidiaries.

         "Consent" means the consent to, approval of, or vote in favor of a
proposed action by a Partner given in accordance with Article XIV hereof.

         "Constituent Person" shall have the meaning set forth in Section 4.9.F.

         "Conversion Date" shall have the meaning set forth in Section 4.9.B.

         "Conversion Notice" shall have the meaning set forth in Section 4.9.B.

         "Conversion Right" shall have the meaning set forth in Section 4.9.A.

         "Contributed Property" means each item of Property or other asset, in
such form as may be permitted by the Act, but excluding cash, contributed or
deemed contributed to the Partnership (or deemed contributed by the Partnership
to a "new" partnership pursuant to Code Section 708) net of any liabilities
assumed by the Partnership relating to such Contributed Property and any
liability to which such Contributed Property is subject.

                                     - 5 -
<PAGE>

         "Debt" means, as to any Person, as of any date of determination, (i)
all indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services; (ii) all amounts owed by such Person to banks or
other Persons in respect of reimbursement obligations under letters of credit,
surety bonds and other similar instruments guaranteeing payment or other
performance of obligations by such Person; (iii) all indebtedness for borrowed
money or for the deferred purchase price of property or services secured by any
lien on any property owned by such Person, to the extent attributable to such
Person's interest in such property, even though such Person has not assumed or
become liable for the payment thereof; and (iv) lease obligations of such Person
that, in accordance with generally accepted accounting principles, should be
capitalized.

         "Depreciation" means, for each Partnership Year or other applicable
period, an amount equal to the federal income tax depreciation, amortization or
other cost recovery deduction allowable with respect to an asset for such year
or other period, except that if the Gross Asset Value of an asset differs from
its adjusted basis for federal income tax purposes at the beginning of such year
or period, Depreciation shall be in an amount that bears the same ratio to such
beginning Gross Asset Value as the federal income tax depreciation, amortization
or other cost recovery deduction for such year or other period bears to such
beginning adjusted tax basis; provided, however, that if the federal income tax
depreciation, amortization or other cost recovery deduction for such year or
period is zero, Depreciation shall be determined with reference to such
beginning Gross Asset Value using any reasonable method selected by the General
Partner.

         "Distributed Right" has the meaning set forth in the definition of
"Adjustment Factor."

         "Earnout Participant" means each of Feldman Partners, LLC, an Arizona
limited liability company, James Bourg, an individual, and Scott Jensen, an
individual.

         "Earnout Term" means the period commencing on the date of the closing
of the IPO and ending on the earliest of (A) December 31, 2009; (B) the date of
the closing of a Property Sale; and (C) the date of the closing of the Interest
Sale; and (D) a Merger Event.

         "Earnout Unit" means a Partnership Unit which is designated as an
Earnout Unit and which has the rights, preferences and other privileges
designated in Section 4.8 hereof and elsewhere in this Agreement in respect of
Holders of Earnout Units. The allocation of Earnout Units among the Partners
shall be set forth on Exhibit A, as may be amended from time to time.

         "Economic Capital Account Balances" has the meaning set forth in
Section 6.3.E hereof.

         "Effective Date" means the date of closing of the initial public
offering of REIT Shares.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

         "Forced Conversion" shall have the meaning set forth in Section 4.9.C.

         "Forced Conversion Notice" shall have the meaning set forth in Section
4.9.C.

         "Funding Debt" means the incurrence of any Debt for the purpose of
providing funds to the Partnership by or on behalf of the Parent or any wholly
owned subsidiary of the Parent.

         "General Partner" means Feldman Holdings Business Trust I, a Maryland
business trust, and its successors and assigns, as the general partner of the
Partnership.

                                     - 6 -
<PAGE>

         "General Partner Interest" means the Partnership Interest held by the
General Partner, which Partnership Interest is an interest as a general partner
under the Act. A General Partner Interest may be expressed as a number of OP
Units, Earnout Units, Preferred Units, Junior Units or any other Partnership
Units.

         "General Partner Loan" has the meaning set forth in Section 4.4.D
hereof.

         "Gross Asset Value" means, with respect to any asset, the asset's
adjusted basis for federal income tax purposes, except as follows:

                  (a) The initial Gross Asset Value of any asset contributed by
         a Partner to the Partnership shall be the gross fair market value of
         such asset as determined by the General Partner.

                  (b) The Gross Asset Values of all Partnership assets
         immediately prior to the occurrence of any event described in clause
         (i), clause (ii), clause (iii), clause (iv) or clause (v) hereof shall
         be adjusted to equal their respective gross fair market values, as
         determined by the General Partner using such reasonable method of
         valuation as it may adopt, as of the following times:

                           (i) the acquisition of an additional interest in the
                  Partnership (other than in connection with the execution of
                  this Agreement but including, without limitation, acquisitions
                  pursuant to Section 4.2 hereof or contributions or deemed
                  contributions by the General Partner pursuant to Section 4.2
                  hereof) by a new or existing Partner in exchange for more than
                  a de minimis Capital Contribution, if the General Partner
                  reasonably determines that such adjustment is necessary or
                  appropriate to reflect the relative economic interests of the
                  Partners in the Partnership;

                           (ii) 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, if the General Partner
                  reasonably determines that such adjustment is necessary or
                  appropriate to reflect the relative economic interests of the
                  Partners in the Partnership;

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

                           (v) the conversion of any Earnout Units pursuant to
                  Section 4.8.A hereof; and

                           (vi) at such other times as the General Partner shall
                  reasonably determine necessary or advisable in order to comply
                  with Regulations Sections 1.704-1(b) and 1.704-2.

                  (c) The Gross Asset Value of any Partnership asset distributed
         to a Partner shall be the gross fair market value of such asset on the
         date of distribution as determined by the distributee and the General
         Partner provided that, if the distributee is the General Partner or if
         the distributee and the General Partner cannot agree on such a
         determination, such gross fair market value shall be determined by an
         independent third party experienced in the valuation of similar assets,
         selected by the General Partner or the Parent in good faith.

                                     - 7 -
<PAGE>

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

                  (e) If the Gross Asset Value of a Partnership asset has been
         determined or adjusted pursuant to subsection (a), subsection (b) or
         subsection (d) above, such Gross Asset Value shall thereafter be
         adjusted by the Depreciation taken into account with respect to such
         asset for purposes of computing Net Income and Net Losses.

         "Hard Costs" means the aggregate costs of all construction materials,
direct labor charges, general contractor fees (without overhead and profit)
relating to all site work, grading and utility connections.

         "Harrisburg IRR" means the IRR achieved by Parent or any of its
subsidiaries (without duplication) from all funds received from the Harrisburg
Partnership based on an assumed investment of $8,486,000 from the date of the
closing of the IPO through the end of the Earnout Term, provided, however, that,
(x) if any Management Fees are received by Parent or any of its subsidiaries
related to the Harrisburg Property; and (y) if Parent or any of its subsidiaries
makes additional capital contributions to or receives cash flow and/or capital
distributions from the Harrisburg Partnership, in each case, the foregoing IRR
calculation shall take into account the positive amounts and date of Management
Fees earned, the negative amounts of additional capital contributions and the
dates of such contributions, if any, the negative amounts required if Parent or
any of its subsidiaries elects to acquire the interests of some or all of the
other partners in the Harrisburg Partnership and the positive amounts of cash
flow and/or capital distributions paid to Parent or any of its subsidiaries in
determining the Harrisburg IRR. In addition:

                  (i) if no Property Sale or Interest Sale has occurred prior to
         December 31, 2009, there shall also be included in the calculation of
         the Harrisburg IRR the amount that Parent or any of its subsidiaries
         would have received under the terms of the Harrisburg Partnership
         Agreement then in effect (unless Parent or any of its subsidiaries then
         owns all of the partnership interests in the Harrisburg Partnership, in
         which case the terms of the Harrisburg Partnership Agreement shall not
         apply) if the Harrisburg Property were sold (without any sale expenses
         such as brokerage commissions, loan prepayment fees, transfer taxes or
         closing costs) on December 31, 2009 for an amount equal to the
         Harrisburg NOI divided by 8.5% and the Harrisburg Partnership had then
         dissolved and distributed all of its assets to its respective partners
         concurrently with such date (unless Parent or any of its subsidiaries
         then owns all of the partnership interests in the Harrisburg
         Partnership, in which case the terms of the Harrisburg Partnership
         Agreement shall not apply);

                  (ii) if a Property Sale has occurred prior to December 31,
         2009, there shall also be included in the calculation of the Harrisburg
         IRR the amount of proceeds received by Parent or any of its
         subsidiaries under the Harrisburg Partnership Agreement then in effect
         in connection with such sale based on the assumption that the
         Harrisburg Partnership is dissolved and all of its assets are
         distributed to its respective partners concurrently with the closing of
         the Property Sale;

                  (iii) if an Interest Sale has occurred prior to December 31,
         2009, there shall also be included in the calculation of the Harrisburg
         IRR the amount of proceeds received by Parent or any of its
         subsidiaries in connection with such sale;

                                     - 8 -
<PAGE>

                  (iv) if a Merger Event has occurred prior to December 31,
         2009, Parent shall promptly obtain the Appraised Value and there shall
         also be included in the calculation of the Harrisburg IRR the amount of
         proceeds that Parent or any of its subsidiaries would have received had
         the Harrisburg Property been sold for the Appraised Value; and

                  (v) if some or all of a Merger Event, an Interest Sale and a
         Property Sale occur concurrently, the foregoing calculation shall be
         based on the Interest Sale or, if not applicable, a Property Sale.

         "Harrisburg NOI" means the total actual property revenues of the
Harrisburg Property for calendar year 2009 (excluding non-cash income such as
straight-line rent, but including all rent that accrues to the calendar year
2009) less the Property Related Expenses.

         "Harrisburg Partnership" means Feldman Lubert Adler Harrisburg LP, a
Pennsylvania limited partnership, the owner of the Harrisburg Property.

         "Harrisburg Partnership Agreement" means the agreement of limited
partnership of the Harrisburg Partnership.

         "Harrisburg Property" means the land and improvements commonly known as
Harrisburg Mall, Harrisburg, Pennsylvania.

         "Holder" means either (a) a Partner or (b) an Assignee, owning a
Partnership Unit, that is treated as a member of the Partnership for federal
income tax purposes.

         "Incapacity" or "Incapacitated" means, (i) as to any Partner who is an
individual, death, total physical disability or entry by a court of competent
jurisdiction adjudicating such Partner incompetent to manage his or her person
or his or her estate; (ii) as to any Partner that is a corporation or limited
liability company, the filing of a certificate of dissolution, or its
equivalent, or the revocation of the corporation's charter; (iii) as to any
Partner that is a partnership, the dissolution and commencement of winding up of
the partnership; (iv) as to any Partner that is an estate, the distribution by
the fiduciary of the estate's entire interest in the Partnership; (v) 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 (vi) as to any Partner, the bankruptcy of
such Partner. For purposes of this definition, bankruptcy of a Partner shall be
deemed to have occurred when (a) the Partner commences a voluntary 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, (b) 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, (c) the Partner
executes and delivers a general assignment for the benefit of the Partner's
creditors, (d) 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 (b) above, (e) the
Partner seeks, consents to or acquiesces in the appointment of a trustee,
receiver or liquidator for the Partner or for all or any substantial part of the
Partner's properties, (f) any proceeding seeking liquidation, reorganization or
other relief under any bankruptcy, insolvency or other similar law now or
hereafter in effect has not been dismissed within 120 days after the
commencement thereof, (g) the appointment without the Partner's consent or
acquiescence of a trustee, receiver or liquidator has not been vacated or stayed
within 90 days of such appointment, or (h) an appointment referred to in clause
(g) above is not vacated within 90 days after the expiration of any such stay.

         "Incumbent Directors" has the meaning set forth in the definition of
the term Other Change in Control.

                                     - 9 -
<PAGE>

         "Indemnitee" means (i) any Person made a party to a proceeding by
reason of its status as (A) the General Partner or the Parent or any successor
thereto or (B) a trustee of the General Partner, a director of the Parent or an
officer or employee of the Partnership, the General Partner or the Parent and
(ii) such other Persons (including Affiliates of the General Partner, the
Partnership or the Parent) 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.

         "Independent Directors" means the independent directors of the Board as
determined by the rules and regulations of the New York Stock Exchange then in
effect.

         "Interest Sale" means a sale of the partnership interests in the
Harrisburg Property owned by Parent or any of its subsidiaries.

         "IPO" means a public offering of the common stock of the Parent.

         "IPO Price" means the initial public offering price as shown on the
cover page of the final prospectus used in Parent's IPO as adjusted for stock
splits, special dividends or distributions or other similar adjustments to the
capital structure of Parent.

         "IRR" means an internal rate of annual return (compounded quarterly).
The calculation of IRR shall be performed by Parent's accounting staff and shall
be reviewed by Parent's independent accountants whose review shall be deemed
final and binding absent manifest error and fraud.

         "IRR Excess" means 50% of the excess, if any, of (a) the amounts
received or deemed received by Parent or any of its subsidiaries (without
duplication) in calculating the Harrisburg IRR over (b) the amounts required to
be received or deemed received by Parent or any of its subsidiaries (without
duplication) in order to obtain a Harrisburg IRR of 15%, with such amount to be
determined upon the expiration of the Earnout Term.

         "IRS" means the Internal Revenue Service, which administers the
internal revenue laws of the United States.

         "Junior Share" means a share of capital stock of the Parent now or
hereafter authorized or reclassified that has dividend rights, or rights upon
liquidation, winding up and dissolution, that are junior in rank to the REIT
Shares.

         "Junior Unit" means a fractional share of the Partnership Interests
that the General Partner has authorized pursuant to Section 4.1, 4.3 or 4.4
hereof that has distribution rights, or rights upon liquidation, winding up and
dissolution, that are junior in rank to the OP Units.

         "Lease-Up Condition" means with respect to the applicable lease, that
the tenant under such lease has taken occupancy of the space demised thereunder
and has commenced the payment of rent therefor.

         "Limited Partner" means any Person named as a Limited Partner in
Exhibit A attached hereto, as such Exhibit A may be amended from time to time,
or any Substituted Limited Partner or Additional Limited Partner, in such
Person's capacity as a Limited Partner in the Partnership.

         "Limited Partner Interest" means a Partnership Interest of a Limited
Partner in the Partnership representing a fractional part of the Partnership
Interests of all Limited Partners and includes any and all benefits to which the
holder of such a Partnership Interest may be entitled as provided in this
Agreement, together with all obligations of such Person to comply with the terms
and provisions of this Agreement. A Limited Partner Interest may be expressed as
a number of OP Units, Earnout Units, PI Units, Preferred Units or other
Partnership Units.

                                     - 10 -
<PAGE>

         "Liquidating Event" has the meaning set forth in Section 13.1 hereof.

         "Liquidating Gains" has the meaning set forth in Section 6.3.E hereof.

         "Liquidator" has the meaning set forth in Section 13.2.A hereof.

         "Majority in Interest of the Outside Limited Partners" means Limited
Partners (excluding for this purpose (i) any Limited Partnership Interests held
by the Parent or its Subsidiaries, (ii) any Person of which the Parent or its
Subsidiaries directly or indirectly owns or controls more than 50% of the voting
interests and (iii) any Person directly or indirectly owning or controlling more
than 50% of the outstanding interests of the General Partner) holding more than
50% of the outstanding OP Units held by all Limited Partners who are not
excluded for the purposes hereof.

         "Management Fees" means collectively, management fees, leasing
commissions and construction management fees.

         "Market Price" has the meaning set forth in the definition of "Value."

         "Merger Event" means a merger, consolidation, sale of all or
substantially all of the assets of the Parent or the Partnership or, at the
option of Earnout Participant given within 10 business days after notice of such
transaction is given to Earnout Participant, the occurrence of any Other Change
in Control.

         "Net Income" or "Net Loss" means, for each Partnership Year of the
Partnership, an amount equal to the Partnership's taxable income or loss for
such year, determined in accordance with Code Section 703(a) (for this purpose,
all items of income, gain, loss or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
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 Net Income
         (or Net Loss) pursuant to this definition of "Net Income" or "Net Loss"
         shall be added to (or subtracted from, as the case may be) such taxable
         income (or loss);

                  (b) Any expenditure of the Partnership described in Code
         Section 705(a)(2)(B) or treated as a Code Section 705(a)(2)(B)
         expenditure pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and
         not otherwise taken into account in computing Net Income (or Net Loss)
         pursuant to this definition of "Net Income" or "Net Loss," shall be
         subtracted from (or added to, as the case may be) such taxable income
         (or loss);

                  (c) In the event the Gross Asset Value of any Partnership
         asset is adjusted pursuant to subsection (b) or subsection (c) of the
         definition of "Gross Asset Value," the amount of such adjustment shall
         be taken into account as gain or loss from the disposition of such
         asset for purposes of computing Net Income or Net Loss;

                  (d) Gain or loss resulting from any disposition of property
         with respect to which gain or loss is recognized for federal income tax
         purposes shall be computed by reference to the Gross Asset Value of the
         property disposed of, notwithstanding that the adjusted tax basis of
         such property differs from its Gross Asset Value;

                                     - 11 -
<PAGE>

                  (e) In lieu of the depreciation, amortization and other cost
         recovery deductions that would otherwise be taken into account in
         computing such taxable income or loss, there shall be taken into
         account Depreciation for such Partnership Year;

                  (f) To the extent that an adjustment to the adjusted tax basis
         of any Partnership asset pursuant to Code Section 734(b) or Code
         Section 743(b) is required pursuant to Regulations Section
         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 asset) or loss (if the adjustment decreases the basis of
         the asset) from the disposition of the asset and shall be taken into
         account for purposes of computing Net Income or Net Loss; and

                  (g) Notwithstanding any other provision of this definition of
         "Net Income" or "Net Loss," any item that is specially allocated
         pursuant to Section 6.3 hereof shall not be taken into account in
         computing Net Income or Net Loss. The amounts of the items of
         Partnership income, gain, loss or deduction available to be specially
         allocated pursuant to Section 6.3 hereof shall be determined by
         applying rules analogous to those set forth in this definition of "Net
         Income" or "Net Loss."

         "New Securities" means (i) any rights, options, warrants or convertible
or exchangeable securities having the right to subscribe for or purchase REIT
Shares, Preferred Shares or Junior Shares, except that "New Securities" shall
not mean any Preferred Shares, Junior Shares or grants under the Stock Option
Plans or (ii) any Debt issued by the REIT that provides any of the rights
described in clause (i).

         "NOI Calculation" has the meaning set forth in Section 4.8.

         "Nonrecourse Deductions" has the meaning set forth in Regulations
Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a
Partnership Year shall be determined in accordance with the rules of Regulations
Section 1.704-2(c).

         "Nonrecourse Liability" has the meaning set forth in Regulations
Section 1.752-1(a)(2).

         "Notice of Redemption" means the Notice of Redemption substantially in
the form of Exhibit B attached to this Agreement.

         "Obligated Partner" means a Partner who has agreed in writing to be an
Obligated Partner and has agreed and is obligated to make certain contributions,
not in excess of such Obligated Partner's Protected Amount, to the Partnership
with respect to such Partner's Capital Account Deficit upon the occurrence of
certain events.

         "Original Agreement" means the original Agreement of Limited
Partnership, dated as of August 13, 2004.

         "OP Unit" means a fractional share of the Partnership Interests of all
Partners issued pursuant to Sections 4.1 and 4.2 hereof, but does not include
any Earnout Unit, PI Unit, Preferred Unit, Junior Unit or any other Partnership
Unit specified in a Partnership Unit Designation as being other than an OP Unit;
provided, however, that the General Partner Interest and the Limited Partner
Interests shall have the differences in rights and privileges as specified in
this Agreement.

         "OP Unit Economic Balance" has the meaning set forth in Section 6.3.E
hereof.

                                     - 12 -
<PAGE>

         "Other Change in Control" means the occurrence of any of the following:

         (1) the members of the Board at the beginning of any consecutive
24-calendar-month period (the "Incumbent Directors") cease for any reason other
than due to death to constitute at least a majority of the members of the Board;
provided that any director whose election, or nomination for election by
Parent's stockholders, was approved by a vote of at least a majority of the
members of the Board then still in office who were members of the Board at the
beginning of such 24-calendar-month period, shall be deemed to be an Incumbent
Director; or

         (2) the general partner of the Partnership ceases to be a wholly-owned
direct or indirect subsidiary of Parent.

         "Outside Director" shall mean a director of the Parent who is not also
an officer or employee of the Parent.

         "Outside Interest" has the meaning set forth in Section 5.2 hereof.

         "Ownership Limit" means the applicable restriction or restrictions on
ownership of shares of the Parent imposed under the Charter.

         "Parent" means Feldman Mall Properties, Inc., a Maryland corporation.

         "Parent Limited Partner" means Feldman Holdings Business Trust II, a
Maryland business trust, and its successors and assigns, as a limited partner of
the Partnership.

         "Partner" means the General Partner or a Limited Partner, and
"Partners" means the General Partner and the Limited Partners.

         "Partner Minimum Gain" means an amount, with respect to each 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 Regulations Section 1.704-2(i)(3).

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

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

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

         "Partnership Interest" means an ownership interest in the Partnership
held by either a Limited Partner or the General Partner and includes any and all
benefits to which the holder of such a Partnership Interest may be entitled as
provided in this Agreement, together with all obligations of such Person to
comply with the terms and provisions of this Agreement. A Partnership Interest
may be expressed as a number of OP Units, Earnout Units, PI Units, Preferred
Units, Junior Units or other Partnership Units.

         "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 Partnership Minimum Gain, for a Partnership Year
shall be determined in accordance with the rules of Regulations Section
1.704-2(d).

                                     - 13 -
<PAGE>

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

         "Partnership Unit" shall mean an OP Unit, a PI Unit, an Earnout Unit, a
Preferred Unit, a Junior Unit or any other fractional share of the Partnership
Interests that the General Partner has authorized pursuant to Section 4.1, 4.2,
4.3 or 4.4 hereof.

         "Partnership Unit Designation" has the meaning set forth in Section 4.3
hereof.

         "Partnership Unit Distribution" shall have the meaning set forth in
Section 4.6.A hereof.

         "Partnership Year" means the fiscal year of the Partnership, which
shall be the calendar year.

         "Percentage Interest" means, as to a Partner holding a class or series
of Partnership Interests, its interest in such class or series as determined by
dividing the Partnership Units of such class or series owned by such Partner by
the total number of Partnership Units of such class then outstanding as
specified in Exhibit A attached hereto, as such Exhibit may be amended from time
to time. If the Partnership issues additional classes or series of Partnership
Interests other than as contemplated herein, the interest in the Partnership
among the classes or series of Partnership Interests shall be determined as set
forth in the amendment to this Agreement setting forth the rights and privileges
of such additional classes or series of Partnership Interest, if any, as
contemplated by Section 4.3.

         "Person" means an individual or a corporation, partnership, trust,
unincorporated organization, association, limited liability company or other
entity.

         "PI Unit" means a Partnership Unit which is designated as a PI Unit and
which has the rights, preferences and other privileges designated in Section 4.6
hereof and elsewhere in this Agreement in respect of Holders of PI Units. The
allocation of PI Units among the Partners shall be set forth on Exhibit A, as
may be amended from time to time.

         "PI Unitholder" means a Partner that holds PI Units.

         "Preferred Share" means a share of capital stock of the Parent now or
hereafter authorized or reclassified that has dividend rights, or rights upon
liquidation, winding up and dissolution, that are superior or prior to the REIT
Shares.

         "Preferred Unit" means a fractional share of the Partnership Interests
that the General Partner has authorized pursuant to Section 4.1, 4.3 or 4.4
hereof that has distribution rights, or rights upon liquidation, winding up and
dissolution, that are superior or prior to the OP Units.

         "Properties" means any assets and property of the Partnership such as,
but not limited to, interests in real property and personal property, including,
without limitation, fee interests, interests in ground leases, interests in
limited liability companies, joint ventures or partnerships, interests in
mortgages, and Debt instruments as the Partnership may hold from time to time
and "Property" shall mean any one such asset or property.

         "Property Related Expenses" means all normal and customary operating
expenses of the Harrisburg Property which are expensed for GAAP accounting
purposes, but specifically excluding: (a) any non-cash items such as
depreciation and amortization; (b) any Management Fees related to the Harrisburg
Property (whether or not such fees are payable to Parent or any of its
subsidiaries); and (c) debt service payments and reserves, if any.

                                     - 14 -
<PAGE>

         "Property Sale" means a sale of the Harrisburg Property.

         "Protected Amount" means the amount specified on Exhibit C with respect
to any Obligated Partner, as such Exhibit may be amended from time to time.

         "Publicly Traded" means listed or admitted to trading on the New York
Stock Exchange, the American Stock Exchange or another national securities
exchange or designated for quotation on the NASDAQ National Market, or any
successor to the foregoing.

         "Qualified REIT Subsidiary" means a qualified REIT subsidiary of the
Parent within the meaning of Code Section 856(i)(2).

         "Qualified Transferee" means an "Accredited Investor" as defined in
Rule 501 promulgated under the Securities Act.

         "Qualifying Party" means (a) a Limited Partner set forth in Schedule A
hereto, (b) an Additional Limited Partner or (c) a Substituted Limited Partner
succeeding to all or part of the Limited Partner Interest of (i) a Limited
Partner set forth in Schedule A hereto or (ii) an Additional Limited Partner.

         "Redemption" has the meaning set forth in Section 8.6.A hereof.

         "Regulations" means the applicable income tax regulations under the
Code, whether such regulations are in proposed, temporary or final form, as such
regulations may be amended from time to time (including corresponding provisions
of succeeding regulations).

         "Regulatory Allocations" has the meaning set forth in Section
6.3.B(vii) hereof.

         "REIT" means a real estate investment trust qualifying under Code
Section 856.

         "REIT Payment" has the meaning set forth in Section 15.11 hereof.

         "REIT Requirements" has the meaning set forth in Section 5.1 hereof.

         "REIT Share" means a share of the Parent's common stock, par value
$0.01 per share. Where relevant in this Agreement, "REIT Share" includes shares
of the Parent's common stock, par value $0.01 per share, issued upon conversion
of Preferred Shares or Junior Shares.

         "REIT Shares Amount" means a number of REIT Shares equal to the product
of (a) the number of Tendered Units and (b) the Adjustment Factor in effect on
the Specified Redemption Date with respect to such Tendered Units; provided,
however, that, in the event that the Parent issues to all holders of REIT Shares
as of a certain record date rights, options, warrants or convertible or
exchangeable securities entitling the Parent's stockholders to subscribe for or
purchase REIT Shares, or any other securities or property (collectively, the
"Rights"), with the record date for such Rights issuance falling within the
period starting on the date of the Notice of Redemption and ending on the day
immediately preceding the Specified Redemption Date, which Rights will not be
distributed before the relevant Specified Redemption Date, then the REIT Shares
Amount shall also include such Rights that a holder of that number of REIT
Shares would be entitled to receive, expressed, where relevant hereunder, in a
number of REIT Shares determined by the Parent in good faith.

                                     - 15 -
<PAGE>

         "Rights" has the meaning set forth in the definition of "REIT Shares
Amount."

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

         "Services Agreement" means any management, development or advisory
agreement with a property and/or asset manager for the provision of property
management, asset management, leasing, development and/or similar services with
respect to the Properties and any agreement for the provision of services of
accountants, legal counsel, appraisers, insurers, brokers, transfer agents,
registrars, developers, financial advisors and other professional services.

         "Specified Redemption Date" means the 10th Business Day following
receipt by the General Partner of a Notice of Redemption; provided that, if the
REIT Shares are not Publicly Traded, the Specified Redemption Date means the
30th Business Day following receipt by the General Partner of a Notice of
Redemption.

         "Stock Option Plan" means any stock option plan hereafter adopted by
the Partnership or the Parent, including the Parent's 2004 equity incentive
plan.

         "Subsidiary" means, with respect to any Person, any other Person (which
is not an individual) of which a majority of (i) the voting power of the voting
equity securities or (ii) the outstanding equity interests is owned, directly or
indirectly, by such Person.

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

         "Tax Items" has the meaning set forth in Section 6.4.A hereof.

         "Tendered Units" has the meaning set forth in Section 8.6.A hereof.

         "Tendering Partner" has the meaning set forth in Section 8.6.A hereof.

         "Tendering Party" has the meaning set forth in Section 8.6.A hereof.

         "Terminating Capital Transaction" means any sale or other disposition
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.

         "Transfer," when used with respect to a Partnership Unit, or all or any
portion of a Partnership Interest, means any sale, assignment, bequest,
conveyance, devise, gift (outright or in trust), pledge, encumbrance,
hypothecation, mortgage, exchange, transfer or other disposition or act of
alienation, whether voluntary or involuntary or by operation of law; provided,
however, that when the term is used in Article XI hereof, "Transfer" does not
include (a) any Redemption of Partnership Units by the Partnership or the
Parent, or acquisition of Tendered Units by the General Partner or the Parent,
pursuant to Section 8.6 hereof or (b) any redemption of Partnership Units
pursuant to any Partnership Unit Designation. The terms "Transferred" and
"Transferring" have correlative meanings.

                                     - 16 -
<PAGE>

         "Value" means, on any date of determination with respect to a REIT
Share, the average of the daily Market Prices for ten consecutive trading days
immediately preceding the date of determination except that, as provided in
Section 4.5.B hereof, the Market Price for the trading day immediately preceding
the date of exercise of a stock option under any Stock Option Plan shall be
substituted for such average of daily market prices for purposes of Section 4.5
hereof; provided, however, that for purposes of Section 8.6, the "date of
determination" shall be the date of receipt by the Parent of a Notice of
Redemption or, if such date is not a Business Day, the immediately preceding
Business Day. The term "Market Price" on any date shall mean, with respect to
any class or series of outstanding REIT Shares, the Closing Price for such REIT
Shares on such date. The "Closing Price" on any date shall mean the last sale
price for such REIT Shares, regular way, or, in case no such sale takes place on
such day, the average of the closing bid and asked prices, regular way, for such
REIT Shares, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if such REIT Shares are not listed or
admitted to trading on the New York Stock Exchange, as reported on the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which such REIT Shares are listed
or admitted to trading or, if such REIT Shares are not listed or admitted to
trading on any national securities exchange, the last quoted price, or, if not
so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the National Association of Securities
Dealers, Inc. Automated Quotation System or, if such system is no longer in use,
the principal other automated quotation system that may then be in use or, if
such REIT Shares are not quoted by any such organization, the average of the
closing bid and asked prices as furnished by a professional market maker making
a market in such REIT Shares selected by the Board or, in the event that no
trading price is available for such REIT Shares, the fair market value of the
REIT Shares, as determined in good faith by the Board.

         In the event that the REIT Shares Amount includes Rights (as defined in
the definition of "REIT Shares Amount") that a holder of REIT Shares would be
entitled to receive, then the Value of such Rights shall be determined by the
Parent acting in good faith on the basis of such quotations and other
information as it considers, in its reasonable judgment, appropriate.

         "Transaction" shall have the meaning set forth in Section 4.9.F.

         "Vesting Agreement" means each or any, as the context implies, Profits
Interest Plan (PI Plan) Vesting Agreement entered into by a PI Unitholder upon
acceptance of an award of PI Units under the Plan (as such agreement may be
amended, modified or supplemented from time to time).

                                   ARTICLE II

                             ORGANIZATIONAL MATTERS

         Section 2.1. Organization. The Partnership is a limited partnership
organized pursuant to the provisions of the Act and upon the terms and subject
to the conditions set forth in this Agreement. Except as expressly provided
herein to the contrary, the rights and obligations of the Partners and the
administration and termination of the Partnership shall be governed by the Act.
The Partnership Interest of each Partner shall be personal property for all
purposes.

         Section 2.2. Name. The name of the Partnership is "FELDMAN EQUITIES
OPERATING PARTNERSHIP, LP" The Partnership's business may be conducted under any
other name or names deemed advisable by the General Partner, including the name
of the General Partner or any Affiliate thereof. The words "Limited
Partnership," "LP," "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 in its sole and
absolute discretion may change the name of the Partnership at any time and from
time to time and shall notify the Partners of such change in the next regular
communication to the Partners.

                                     - 17 -
<PAGE>

         Section 2.3. Registered Office and Agent; Principal Office. The address
of the registered office of the Partnership in the State of Delaware is located
at Corporation Service Company, 1013 Centre Road, Wilmington, Delaware 19805,
and the registered agent for service of process on the Partnership in the State
of Delaware at such registered office is Corporation Service Company. The
principal office of the Partnership is located at 3225 North Central Avenue,
Suite 1205 Phoenix, Arizona 85012, or such other place as the General Partner
may from time to time designate by notice to the Limited Partners. The
Partnership may maintain offices at such other place or places within or outside
the State of Delaware as the General Partner deems advisable.

         Section 2.4. Power of Attorney.

         A. Each Limited Partner and each Assignee hereby irrevocably
constitutes and appoints the General Partner, any Liquidator, and authorized
officers and attorneys-in-fact of each, and each of those acting singly, in each
case with full power of substitution, as its true and lawful agent and
attorney-in-fact, with full power and authority in its name, place and stead to:

                  (i) execute, swear to, seal, 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, supplements 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 to the
         extent provided by applicable law) in the State of Delaware and in all
         other jurisdictions in which the Partnership may conduct business or
         own property; (b) all instruments that the General Partner or the
         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 the 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; (d) all conveyances and other
         instruments or documents that the General Partner or the Liquidator
         deems appropriate or necessary to reflect the distribution or exchange
         of assets of the Partnership pursuant to the terms of this Agreement;
         (e) all instruments relating to the admission, withdrawal, removal or
         substitution of any Partner pursuant to, or other events described in,
         Article XI, Article XII or Article XIII hereof or the Capital
         Contribution of any Partner; and (f) all certificates, documents and
         other instruments relating to the determination of the rights,
         preferences and privileges relating to Partnership Interests; and

                  (ii) execute, swear to, 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 the Liquidator, to make, evidence, give, confirm or
         ratify any vote, consent, approval, agreement or other action that is
         made or given by the Partners hereunder or is consistent with the terms
         of this Agreement or appropriate or necessary, in the sole and absolute
         discretion of the General Partner or the Liquidator, to effectuate the
         terms or intent of this Agreement.

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

                                     - 18 -
<PAGE>

         B. The foregoing power of attorney is hereby declared to be irrevocable
and a special power coupled with an interest, in recognition of the fact that
each of the Limited Partners and Assignees will be relying upon the power of the
General Partner or the Liquidator to act as contemplated by this Agreement in
any filing or other action by it on behalf of the Partnership, and it shall
survive and not be affected by the subsequent Incapacity of any Limited Partner
or Assignee and the Transfer of all or any portion of such Limited Partner's or
Assignee's Partnership Units or Partnership Interest and shall extend to such
Limited Partner's or Assignee's heirs, successors, assigns and personal
representatives. Each such Limited Partner or Assignee hereby agrees to be bound
by any representation made by the General Partner or the Liquidator, acting in
good faith pursuant to such power of attorney; and each such Limited Partner or
Assignee hereby waives any and all defenses that may be available to contest,
negate or disaffirm the action of the General Partner or the Liquidator, taken
in good faith under such power of attorney. Each Limited Partner or Assignee
shall execute and deliver to the General Partner or the Liquidator, within 15
days after receipt of the General Partner's or the 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.

         Section 2.5. Term. Pursuant to Section 17-217(d) of the Act, the term
of the Partnership commenced on August 6, 2004, the date that the original
Certificate was filed in the office of the Secretary of the State of Delaware,
and shall continue until December 31, 2104 unless it is dissolved sooner
pursuant to the provisions of Article XIII hereof or as otherwise provided by
law.

                                  ARTICLE III

                                     PURPOSE

         Section 3.1. Purpose and Business. The purpose and nature of the
Partnership is to conduct any business, enterprise or activity permitted by or
under the Act; provided, however, such business and arrangements and interests
may be limited to and conducted in such a manner as to permit the Parent, in the
sole and absolute discretion of the General Partner, at all times to be
classified as a REIT unless the Parent in its sole discretion has chosen to
cease to qualify as a REIT or has chosen not to attempt to qualify as a REIT for
any reason or for reasons whether or not related to the business conducted by
the Partnership. Without limiting the General Partner's right in its sole
discretion to cease qualifying as a REIT, the Partners acknowledge that the
status of the Parent as a REIT inures to the benefit of all Partners and not
solely to the Parent, the General Partner or its Affiliates. In connection with
the foregoing, the Partnership shall have full power and authority to enter
into, perform and carry out contracts of any kind, to borrow and lend money and
to issue and guarantee evidence of indebtedness, whether or not secured by
mortgage, deed of trust, pledge or other lien and, directly or indirectly, to
acquire and construct additional Properties necessary, useful or desirable in
connection with its business.

         Section 3.2. Powers.

         A. The Partnership shall be empowered to do any and all acts and things
necessary, appropriate, proper, advisable, incidental to or convenient for the
furtherance and accomplishment of the purposes and business described herein and
for the protection and benefit of the Partnership.

         B. The Partnership may contribute from time to time Partnership capital
to one or more newly formed entities solely in exchange for equity interests
therein (or in a wholly owned subsidiary entity thereof).

         C. Notwithstanding any other provision in this Agreement, the General
Partner may cause the Partnership not to take, or to refrain from taking, any
action that, in the judgment of the General Partner, in its sole and absolute
discretion, (i) could adversely affect the ability of the Parent to continue to
qualify as a REIT, (ii) could subject the Parent to any additional taxes under
Code Section 857 or Code Section 4981 or any other related or successor
provision of the Code or (iii) could violate any law or regulation of any
governmental body or agency having jurisdiction over the General Partner, the
Parent, their securities or the Partnership.

                                     - 19 -
<PAGE>

         Section 3.3. Partnership Only for Partnership Purposes Specified. This
Agreement shall not be deemed to create a company, venture or partnership
between or among the Partners with respect to any activities whatsoever other
than the activities within the purposes of the Partnership as specified in
Section 3.1 hereof. Except as otherwise provided in this Agreement, no Partner
shall have any authority to act for, bind, commit or assume any obligation or
responsibility on behalf of the Partnership, its properties or any other
Partner. No Partner, in its capacity as a Partner under this Agreement, shall be
responsible or liable for any indebtedness or obligation of another Partner, and
the Partnership shall not be responsible or liable for any indebtedness or
obligation of any Partner, incurred either before or after the execution and
delivery of this Agreement by such Partner, except as to those responsibilities,
liabilities, indebtedness or obligations incurred pursuant to and as limited by
the terms of this Agreement and the Act.

         Section 3.4. Representations and Warranties by the Parties.

         A. Each Partner (including, without limitation, each Additional Limited
Partner or Substituted Limited Partner as a condition to becoming an Additional
Limited Partner or a Substituted Limited Partner, respectively) represents and
warrants to each other Partner that (i) the consummation of the transactions
contemplated by this Agreement to be performed by such Partner will not result
in a breach or violation of, or a default under, any material agreement by which
such Partner or any of such Partner's property is bound, or any statute,
regulation, order or other law to which such Partner is subject, (ii) subject to
the last sentence of this Section 3.4.A, such Partner is neither a "foreign
person" within the meaning of Code Section 1445(f) nor a "foreign partner"
within the meaning of Code Section 1446(e), (iii) such Partner does not own,
directly or indirectly, (a) 9.9% or more of the total combined voting power of
all classes of stock entitled to vote, or 9.9% or more of the total number of
shares of all classes of stock, of any corporation that is a tenant of either
(I) the Parent or any Qualified REIT Subsidiary, (II) the Partnership or (III)
any partnership, venture or limited liability company of which the Parent, any
Qualified REIT Subsidiary or the Partnership is a member or (b) an interest of
9.9% or more in the assets or net profits of any tenant of either (I) the Parent
or any Qualified REIT Subsidiary, (II) the Partnership or (III) any partnership,
venture, or limited liability company of which the Parent, any Qualified REIT
Subsidiary or the Partnership is a member and (iv) this Agreement is binding
upon, and enforceable against, such Partner in accordance with its terms.
Notwithstanding anything contained herein to the contrary, in the event that the
representation contained in the foregoing clause (ii) would be inaccurate if
given by a Partner, such Partner (w) shall not be required to make and shall not
be deemed to have made such representation, if it delivers to the General
Partner in connection with or prior to its execution of this Agreement written
notice that it may not truthfully make such representation, (x) hereby agrees
that it is subject to, and hereby authorizes the General Partner to withhold,
all withholdings to which such a "foreign person" or "foreign partner," as
applicable, is subject under the Code and (y) hereby agrees to cooperate fully
with the General Partner with respect to such withholdings, including by
effecting the timely completion and delivery to the General Partner of all
governmental forms required in connection therewith.

         B. Each Partner (including, without limitation, each Substituted
Limited Partner as a condition to becoming a Substituted Limited Partner)
represents, warrants and agrees that it has acquired and continues to hold its
interest in the Partnership for its own account for investment purposes only and
not for the purpose of, or with a view toward, the resale or distribution of all
or any part thereof, and not with a view toward selling or otherwise
distributing such interest or any part thereof at any particular time or under
any predetermined circumstances. Each Partner further represents and warrants
that it is a sophisticated investor, able and accustomed to handling
sophisticated financial matters for itself, particularly real estate
investments, and that it has a sufficiently high net worth that it does not
anticipate a need for the funds that it has invested in the Partnership in what
it understands to be a highly speculative and illiquid investment.

                                     - 20 -
<PAGE>

         C. The representations and warranties contained in Sections 3.4.A and
3.4.B hereof shall survive the execution and delivery of this Agreement by each
Partner (and, in the case of an Additional Limited Partner or a Substituted
Limited Partner, the admission of such Additional Limited Partner or Substituted
Limited Partner as a Limited Partner in the Partnership) and the dissolution,
liquidation and termination of the Partnership.

         D. Each Partner (including, without limitation, each Substituted
Limited Partner as a condition to becoming a Substituted Limited Partner) hereby
acknowledges that no representations as to potential profit, cash flows, funds
from operations or yield, if any, in respect of the Partnership or the General
Partner have been made by the Parent, any Partner or any employee or
representative or Affiliate of the Parent or any Partner, and that projections
and any other information, including, without limitation, financial and
descriptive information and documentation, that may have been in any manner
submitted to such Partner shall not constitute any representation or warranty of
any kind or nature, express or implied.

                                   ARTICLE IV

                              CAPITAL CONTRIBUTIONS

         Section 4.1. Capital Contributions of the Partners. Each Partner has
made a Capital Contribution to the Partnership and owns Partnership Units in the
amount and designation set forth for such Partner on Exhibit A, as the same may
be amended from time to time by the General Partner to the extent necessary to
reflect accurately sales, exchanges, conversions or other Transfers,
redemptions, Capital Contributions, the issuance of additional Partnership
Units, or similar events having an effect on a Partner's ownership of
Partnership Units. Except as provided by law or in Section 4.4, 10.4 or 13.2.D
hereof, the Partners shall have no obligation or right to make any additional
Capital Contributions or loans to the Partnership.

         Section 4.2. Classes of Partnership Units. From and after the Effective
Date, subject to Section 4.3.A below, the Partnership shall have three classes
of Partnership Units entitled "OP Units," "Earnout Units," and " PI Units."
Subject to Section 4.10, either OP Units or PI Units, at the election of the
General Partner, in its sole and absolute discretion, may be issued to newly
admitted Partners in exchange for any Capital Contributions and/or the provision
of services by such Partners; provided that any Partnership Unit that is not
specifically designated by the General Partner as being of a particular class
shall be deemed to be an OP Unit. Each Earnout Unit shall be converted
automatically into an OP Unit as provided in Section 4.8 hereof without the
requirement for any action by either the Partnership or the Partner holding the
Earnout Units.

         Section 4.3. Issuances of Additional Partnership Interests.

         A. General. Notwithstanding Section 7.3.B hereof, the General Partner
is hereby authorized to cause the Partnership to issue additional Partnership
Interests, in the form of Partnership Units, for any Partnership purpose, at any
time or from time to time, to the Partners (including the General Partner or
Parent Limited Partner) or to other Persons, and to admit such Persons as
Additional Limited Partners, for such consideration and on such terms and
conditions as shall be established by the General Partner in its sole and
absolute discretion, all without the approval of any Limited Partners. Without
limiting the foregoing, the General Partner is expressly authorized to cause the
Partnership to issue Partnership Units (i) upon the conversion, redemption or
exchange of any Debt, Partnership Units or other securities issued by the
Partnership, (ii) for less than fair market value, so long as the General
Partner concludes in good faith that such issuance is in the best interests of
the Parent and the Partnership and (iii) in connection with any merger of any
other Person into the Partnership or any Subsidiary of the Partnership if the
applicable merger agreement provides that Persons are to receive Partnership
Units in exchange for their interests in the Person merging into the Partnership
or any Subsidiary of the Partnership. Subject to Delaware law, any additional
Partnership Interests may be issued in one or more classes, or one or more
series of any of such classes, with such designations, preferences and relative,
participating, optional or other special rights, powers and duties as shall be
determined by the General Partner, in its sole and absolute discretion without
the approval of any Limited Partner, and set forth in a written document
thereafter attached to and made an exhibit to this Agreement (each, a
"Partnership Unit Designation"). Without limiting the generality of the
foregoing, the General Partner shall have authority to specify (a) the
allocations of items of Partnership income, gain, loss, deduction and credit to
each such class or series of Partnership Interests; (b) the right of each such
class or series of Partnership Interests to share in Partnership distributions;
(c) the rights of each such class or series of Partnership Interests upon
dissolution and liquidation of the Partnership; (d) the voting rights, if any,
of each such class or series of Partnership Interests; and (e) the conversion,
redemption or exchange rights applicable to each such class or series of
Partnership Interests. Upon the issuance of any additional Partnership Interest,
the General Partner shall amend Exhibit A as appropriate to reflect such
issuance.

                                     - 21 -
<PAGE>

         B. Issuances to the General Partner. No additional Partnership Units
shall be issued to the General Partner or Parent Limited Partner unless (i) the
additional Partnership Units are issued to all Partners in proportion to their
respective Percentage Interests with respect to the class of Partnership Units
so issued, (ii) (a) the additional Partnership Units are (x) OP Units issued in
connection with an issuance of REIT Shares or (y) Partnership Units (other than
OP Units) issued in connection with an issuance of Preferred Shares, Junior
Shares, New Securities or other interests in the Parent (other than REIT
Shares), which Preferred Shares, Junior Shares, New Securities or other
interests have designations, preferences and other rights, terms and provisions
that are substantially the same as the designations, preferences and other
rights, terms and provisions of the additional Partnership Units issued to the
General Partner and (b) the Parent directly or indirectly contributes or
otherwise causes to be transferred to the Partnership the cash proceeds or other
consideration, if any, received in connection with the issuance of such REIT
Shares, Preferred Shares, Junior Shares, New Securities or other interests in
the Parent or (iii) the additional Partnership Units are issued upon the
conversion, redemption or exchange of Debt, Partnership Units or other
securities issued by the Partnership. In the event that the Partnership issues
additional Partnership Units pursuant to this Section 4.3.B, the General Partner
shall make such revisions to this Agreement (including but not limited to the
revisions described in Sections 6.2.B and 8.6) as it determines are necessary to
reflect the issuance of such additional Partnership Interests.

         C. No Preemptive Rights. No Person, including, without limitation, any
Partner or Assignee, shall have any preemptive, preferential, participation or
similar right or rights to subscribe for or acquire any Partnership Interest.

         Section 4.4. Additional Funds and Capital Contributions.

         A. General. The General Partner may, at any time and from time to time,
determine that the Partnership requires additional funds ("Additional Funds")
for the acquisition or development of additional Properties, for the redemption
of Partnership Units or for such other purposes as the General Partner may
determine in its sole and absolute discretion. Additional Funds may be obtained
by the Partnership, at the election of the General Partner, in any manner
provided in, and in accordance with, the terms of this Section 4.4 without the
approval of any Limited Partners.

                                     - 22 -
<PAGE>

         B. Additional Capital Contributions. The General Partner, on behalf of
the Partnership, may obtain any Additional Funds by accepting Capital
Contributions from any Partners or other Persons. In connection with any such
Capital Contribution (of cash or property), the General Partner is hereby
authorized to cause the Partnership from time to time to issue additional
Partnership Units (as set forth in Section 4.3 above) in consideration therefor
and the Percentage Interests of the General Partner and the Limited Partners
shall be adjusted to reflect the issuance of such additional Partnership Units.

         C. Loans by Third Parties. The General Partner, on behalf of the
Partnership, may obtain any Additional Funds by causing the Partnership to incur
Debt to any Person upon such terms as the General Partner determines
appropriate, including making such Debt convertible, redeemable or exchangeable
for Partnership Units; provided, however, that the Partnership shall not incur
any such Debt if (i) a breach, violation or default of such Debt would be deemed
to occur by virtue of the Transfer by any Limited Partner of any Partnership
Interest or (ii) such Debt is recourse to any Partner (unless the Partner
otherwise agrees).

         D. General Partner/Parent Loans. The General Partner and/or the Parent,
as the case may be, on behalf of the Partnership, may obtain any Additional
Funds by causing the Partnership to incur Debt with the General Partner and/or
the Parent, as the case may be (each, a "General Partner Loan"), if (i) such
Debt is, to the extent permitted by law, on substantially the same terms and
conditions (including interest rate, repayment schedule, and conversion,
redemption, repurchase and exchange rights) as Funding Debt incurred by the
General Partner and/or the Parent, as the case may be, the net proceeds of which
are loaned to the Partnership to provide such Additional Funds or (ii) such Debt
is on terms and conditions no less favorable to the Partnership than would be
available to the Partnership from any third party; provided, however, that the
Partnership shall not incur any such Debt if (a) a breach, violation or default
of such Debt would be deemed to occur by virtue of the Transfer by any Limited
Partner of any Partnership Interest or (b) such Debt is recourse to any Partner
and/or the Parent, as the case may be (unless the Partner and/or the Parent, as
the case may be, otherwise agrees).

         E. Issuance of Securities by the Parent. The Parent shall not issue any
additional REIT Shares, Preferred Shares, Junior Shares or New Securities unless
the Parent contributes directly or indirectly the cash proceeds or other
consideration, if any, received from the issuance of such additional REIT
Shares, Preferred Shares, Junior Shares or New Securities, as the case may be,
and from the exercise of the rights contained in any such additional New
Securities, to the Partnership in exchange for (x) in the case of an issuance of
REIT Shares, Partnership Units or (y) in the case of an issuance of Preferred
Shares, Junior Shares or New Securities, Partnership Units with designations,
preferences and other rights, terms and provisions that are substantially the
same as the designations, preferences and other rights, terms and provisions of
such Preferred Shares, Junior Shares or New Securities; provided, however, that
notwithstanding the foregoing, the Parent may issue REIT Shares, Preferred
Shares, Junior Shares or New Securities (a) pursuant to Section 4.5 or 8.6.B
hereof, (b) pursuant to a dividend or distribution (including any stock split)
of REIT Shares, Preferred Shares, Junior Shares or New Securities to all of the
holders of REIT Shares, Preferred Shares, Junior Shares or New Securities, as
the case may be, (c) upon a conversion, redemption or exchange of Preferred
Shares, (d) upon a conversion of Junior Shares into REIT Shares, (e) upon a
conversion, redemption, exchange or exercise of New Securities, (f) pursuant to
share grants or awards made pursuant to any equity incentive plan of the Parent
(including the Parent's 2004 Long Term Incentive Compensation Plan) or (g) if
the Parent determines that the best interests of the Parent would be served by
contributing such cash proceeds or other consideration to another Subsidiary of
the Parent. In the event of any issuance of additional REIT Shares, Preferred
Shares, Junior Shares or New Securities by the Parent, and the direct or
indirect contribution to the Partnership, by the Parent, of the cash proceeds or
other consideration received from such issuance, the Partnership shall pay the
Parent's expenses associated with such issuance, including any underwriting
discounts or commissions (it being understood that payment of some or all of
such expenses may be made by the Parent on behalf of the Partnership out of the
gross proceeds of such issuance prior to the direct or indirect contribution of
such proceeds by the Parent to the Partnership).

                                     - 23 -
<PAGE>

         Section 4.5. Stock Option Plan.

         A. Options Granted to Company Employees and Independent Directors. If
at any time or from time to time, in connection with a Stock Option Plan, a
stock option granted to a Company Employee or Outside Director is duly
exercised:

                  (i) the Parent shall, as soon as practicable after such
         exercise, make or cause to be made directly or indirectly a Capital
         Contribution to the Partnership in an amount equal to the exercise
         price paid to the Parent by such exercising party in connection with
         the exercise of such stock option.

                  (ii) Notwithstanding the amount of the Capital Contribution
         actually made pursuant to Section 4.5.A(i) hereof, the Parent shall be
         deemed to have contributed directly or indirectly to the Partnership,
         as a Capital Contribution, in consideration of an additional Limited
         Partner Interest (expressed in and as additional Partnership Units), an
         amount equal to the Value of a REIT Share as of the date of exercise
         multiplied by the number of REIT Shares then being issued in connection
         with the exercise of such stock option.

                  (iii) An equitable Percentage Interest adjustment shall be
         made in which the General Partner shall be treated as having made a
         cash contribution equal to the amount described in Section 4.5.A(ii)
         hereof.

         B. Special Valuation Rule. For purposes of this Section 4.5, in
determining the Value of a REIT Share, only the trading date immediately
preceding the exercise of the relevant stock option under the Stock Option Plan
shall be considered.

         C. Future Stock Incentive Plans. Nothing in this Agreement shall be
construed or applied to preclude or restrain the Parent from adopting, modifying
or terminating stock incentive plans, including any Stock Option Plan, for the
benefit of employees, directors or other business associates of the Parent, the
Partnership or any of their Affiliates. The Limited Partners acknowledge and
agree that, in the event that any such plan is adopted, modified or terminated
by the Parent, amendments to this Section 4.5 may become necessary or advisable
and that any approval or consent of the Limited Partners required pursuant to
the terms of this Agreement in order to effect any such amendments requested by
the General Partner shall not be unreasonably withheld or delayed.

         Section 4.6. PI Units.

         A. Issuance of PI Units. The General Partner may from time to time
issue PI Units to Persons who provide services to the Partnership, for such
consideration as the General Partner may determine to be appropriate, and admit
such Persons as Limited Partners. Subject to the following provisions of this
Section 4.6 and the special provisions of Sections 6.3.E and 4.9, PI Units shall
be treated as OP Units, with all of the rights, privileges and obligations
attendant thereto. For purposes of computing the Partners' Percentage Interests,
holders of PI Units shall be treated as OP Unitholders and PI Units shall be
treated as OP Units. In particular, the Partnership shall maintain at all times
a one-to-one correspondence between PI Units and OP Units for conversion,
distribution and other purposes, including without limitation complying with the
following procedures:

                                     - 24 -
<PAGE>

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

                  (ii) The PI Unitholders shall, when, as and if authorized and
         declared by the General Partner out of assets legally available for
         that purpose, be entitled to receive distributions in an amount per PI
         Unit equal to the distributions per OP Unit (the "Partnership Unit
         Distribution"), paid to holders of OP Units on such Partnership Record
         Date established by the General Partner with respect to such
         distribution. So long as any PI Units are outstanding, no distributions
         (whether in cash or in kind) shall be authorized, declared or paid on
         OP Units, unless equal distributions have been or contemporaneously are
         authorized, declared and paid on the PI Units.

         B. Priority. Subject to the provisions of this Section 4.6 and the
special provisions of Sections 6.3.E and 4.9, the PI Units shall rank pari passu
with the OP Units as to the payment of regular and special periodic or other
distributions and distribution of assets upon liquidation, dissolution or
winding up. As to the payment of distributions and as to distribution of assets
upon liquidation, dissolution or winding up, any class or series of Partnership
Units or Partnership Interests which by its terms specifies that it shall rank
junior to, on a parity with, or senior to the OP Units shall also rank junior
to, or pari passu with, or senior to, as the case may be, the PI Units. Subject
to the terms of any Vesting Agreement, a PI Unitholder shall be entitled to
transfer his or her PI Units to the same extent, and subject to the same
restrictions as holders of OP Units are entitled to transfer their OP Units
pursuant to Article XI.

                                     - 25 -
<PAGE>

         C. Special Provisions. PI Units shall be subject to the following
special provisions:

                  (i) Vesting Agreements. PI Units may, in the sole discretion
         of the General Partner, be issued subject to vesting, forfeiture and
         additional restrictions on transfer pursuant to the terms of a Vesting
         Agreement. The terms of any Vesting Agreement may be modified by the
         General Partner from time to time in its sole discretion, subject to
         any restrictions on amendment imposed by the relevant Vesting Agreement
         or by the Stock Option Plan, if applicable. PI Units that have vested
         under the terms of a Vesting Agreement are referred to as "Vested PI
         Units"; all other PI Units shall be treated as "Unvested Incentive
         Units."

                  (ii) Forfeiture. Unless otherwise specified in the Vesting
         Agreement, upon the occurrence of any event specified in a Vesting
         Agreement as resulting in either the right of the Partnership or the
         General Partner to repurchase PI Units at a specified purchase price or
         some other forfeiture of any PI Units, then if the Partnership or the
         General Partner exercises such right to repurchase or forfeiture in
         accordance with the applicable Vesting Agreement, then the relevant PI
         Units shall immediately, and without any further action, be treated as
         cancelled and no longer outstanding for any purpose. Unless otherwise
         specified in the Vesting Agreement, no consideration or other payment
         shall be due with respect to any PI Units that have been forfeited,
         other than any distributions declared with respect to a Partnership
         Record Date prior to the effective date of the forfeiture. In
         connection with any repurchase or forfeiture of PI Units, the balance
         of the portion of the Capital Account of the PI Unitholder that is
         attributable to all of his or her PI Units shall be reduced by the
         amount, if any, by which it exceeds the target balance contemplated by
         Section 6.3.E, calculated with respect to the PI Unitholder's remaining
         PI Units, if any.

                  (iii) Allocations. PI Unitholders shall be entitled to certain
         special allocations of gain under Section 6.3.E.

                  (iv) Redemption. The Redemption Right provided to Limited
         Partners under Section 8.6 shall not apply with respect to PI Units
         unless and until they are converted to OP Units as provided in clause
         (v) below and Section 4.9.

                  (v) Conversion To OP Units. Vested PI Units are eligible to be
         converted into OP Units under Section 4.9.

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

                  (i) With respect to any Transaction, so long as the PI Units
         are treated in accordance with Section 4.9.F hereof, the consummation
         of such Transaction shall not be deemed to materially and adversely
         affect such rights, preferences, privileges or voting powers of the PI
         Units or the PI Unitholders as such; and

                  (ii) Any creation or issuance of any Partnership Units or of
         any class or series of Partnership Interest including without
         limitation additional OP Units, PI Units or Preferred Units, whether
         ranking senior to, junior to, or on a parity with the PI Units with
         respect to distributions and the distribution of assets upon
         liquidation, dissolution or winding up, shall not be deemed to
         materially and adversely affect such rights, preferences, privileges or
         voting powers of the PI Units or the PI Unitholders as such.

                                     - 26 -
<PAGE>

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

         Section 4.7. No Interest; No Return. No Partner shall be entitled to
interest on its Capital Contribution or on such Partner's Capital Account.
Except as provided herein or by law, no Partner shall have any right to demand
or receive the return of its Capital Contribution from the Partnership.

         Section 4.8. Conversion or Redemption of Earnout Units.

         A. Except as provided in the next sentence, the holders of Earnout
Units shall not have any voting rights. So long as any Earnout Units are
outstanding, the Partnership shall not, without the affirmative vote of the
holders of at least two-thirds of the Earnout Units outstanding at the time,
given in person or by proxy, either in writing or at a meeting, amend, alter or
repeal the provisions of the this Agreement, so as to materially and adversely
affect any right, preference, privilege or voting power of the Earnout Units.
The holders of Earnout Units shall not be entitled to receive any distributions
in respect of their Earnout Units.

         B. Conversion of Earnout Units.

                  (i) NOI Calculation. Unless an Interest Sale, a Property Sale
         or a Merger Event has previously occurred, within thirty days after
         December 31, 2009, Parent shall calculate the Harrisburg NOI (the "NOI
         Calculation") for the calendar year 2009.

                  (ii) Review and Approval of NOI Calculation. The NOI
         Calculation shall be performed by Parent's accounting staff and shall
         be reviewed by Parent's outside directors (in consultation with
         Parent's independent accountants) whose review with such consultation
         shall be deemed final and binding absent manifest error and fraud.

                  (iii) Conversion Events.

                           a. If the Earnout Term shall expire on December 31,
         2009, then within 30 days thereafter, the Partnership shall convert
         each Earnout Unit for an amount of OP Units (rounded to the nearest OP
         Unit), if any, equal to the quotient obtained by dividing (x) the
         quotient obtained by dividing the IRR Excess by the Market Price as of
         December 31, 2009; by (y) the aggregate number of Earnout Units then
         outstanding.

                           b. If the Earnout Term shall expire on account of a
         Property Sale or an Interest Sale, then within 5 days thereafter, the
         Partnership shall convert each Earnout Unit for an amount of OP Units
         (rounded to the nearest OP Unit), if any, equal to the quotient
         obtained by dividing (x) the quotient obtained by dividing the IRR
         Excess by the Market Price as of the date of such Property Sale or
         Interest Sale; by (y) the aggregate number of Earnout Units then
         outstanding.

                                     - 27 -
<PAGE>

                           c. If the Earnout Term shall expire on account of a
         Merger Event, then concurrently with the closing of the transaction
         giving rise to the Merger Event, the Partnership shall, at the Earnout
         Participant's election, (1) convert each Earnout Unit held by such
         electing Earnout Participant for an amount of OP Units (rounded to the
         nearest OP Unit), if any, equal to the quotient obtained by dividing
         (x) the quotient obtained by dividing the IRR Excess by the Market
         Price determined as of the date of the closing of the transaction
         constituting the Merger Event; by (y) the aggregate number of Earnout
         Units then outstanding. In the event that holders of OP Units have the
         opportunity to elect the form or type of consideration to be received
         upon consummation of the Merger Event, the General Partner shall give
         prompt written notice to each holder of Earnout Units of such election,
         and shall use commercially reasonable efforts to afford such holders
         the right to elect, by written notice to the General Partner, the form
         or type of consideration to be received upon conversion of each Earnout
         Unit held by such holder into OP Units in connection with such Merger
         Event. If a holder of Earnout Units fails to make such an election,
         such holder (and any of its transferees) shall receive upon conversion
         of each Earnout Unit held him or her (or by any of his or her
         transferees) the same kind and amount of consideration that a holder of
         a OP Unit would receive if such OP Unit holder failed to make such an
         election.

                  (iv) Property Sale and Interest Sale. Notwithstanding anything
         contained herein, any decision to effect a Property Sale or Interest
         Sale shall be subject to the determination by the Board (including a
         majority of the Independent Directors) that the proposed transaction is
         on commercially reasonable terms.

                  (v) Indebtedness Secured by Harrisburg Property. The review
         and approval of the Board (including a majority of the Independent
         Directors) shall be required prior to the consummation of any borrowing
         by the owner of the Harrisburg Property or its partners where the
         aggregate indebtedness secured by the Harrisburg Property or
         partnership interests therein exceeds $46,900,000.

         C. Conversion of Earnout Units. The General Partner shall amend Exhibit
A as appropriate to record any conversion of Earnout Units into OP Units. All OP
Units issued upon conversion of Earnout Units will upon issuance be duly and
validly issued and fully paid OP Units, not subject to any liens and charges
created by the Partnership nor subject to any preemptive rights. Upon such
conversion, the corresponding Earnout Units shall be cancelled and of no force
and effect, except with respect to the right of the holder thereof to receive
the OP Units, cash or other assets to be issued as a result of the conversion.

         D. No Additional Earnout Units. From and after the date hereof, no
additional Earnout Units shall be issued or sold by the Partnership, except on a
pro rata basis to the holders of record of the Earnout Units immediately prior
to such issuance or sale.

         E. No Transfers. Other than in case of death or disability of the
Earnout Participant, Earnout Units may only be transferred by a holder of
Earnout Units in connection with a concurrent transfer of OP Units to the same
transferee.

         Section 4.9. Conversion of PI Units.

         A. A PI Unitholder shall have the right (the "Conversion Right"), at
his or her option, at any time to convert all or a portion of his or her Vested
PI Units into OP Units; provided, however, that a holder may not exercise the
Conversion Right for less than 300 Vested PI Units or, if such holder holds less
than one thousand Vested PI Units, all of the Vested PI Units held by such
holder. PI Unitholders shall not have the right to convert Unvested Incentive
Units into OP Units until they become Vested PI Units; provided, however, that
when a PI Unitholder is notified of the expected occurrence of an event that
will cause his or her Unvested Incentive Units to become Vested PI Units, such
PI Unitholder may give the Partnership a Conversion Notice conditioned upon and
effective as of the time of vesting and such Conversion Notice, unless
subsequently revoked by the PI Unitholder, shall be accepted by the Partnership
subject to such condition. The General Partner shall have the right at any time
to cause a conversion of Vested PI Units into OP Units. In all cases, the
conversion of any PI Units into OP Units shall be subject to the conditions and
procedures set forth in this Section 4.9.

                                     - 28 -
<PAGE>

         B. A holder of Vested PI Units may convert such Units into an equal
number of fully paid and non-assessable OP Units, giving effect to all
adjustments (if any) made pursuant to Section 4.6. Notwithstanding the
foregoing, in no event may a holder of Vested PI Units convert a number of
Vested PI Units that exceeds (x) the Economic Capital Account Balance of such
Limited Partner, to the extent attributable to its ownership of PI Units,
divided by (y) the OP Unit Economic Balance, in each case as determined as of
the effective date of conversion (the "Capital Account Limitation").

         In order to exercise his or her Conversion Right, a PI Unitholder shall
deliver a notice (a "Conversion Notice") in the form attached as Exhibit D to
the Partnership (with a copy to the General Partner) not less than 10 nor more
than 60 days prior to a date (the "Conversion Date") specified in such
Conversion Notice; provided, however, that if the General Partner has not given
to the PI Unitholders notice of a proposed or upcoming Transaction (as defined
below in 4.9.F) at least 30 days prior to the effective date of such
Transaction, then PI Unitholders shall have the right to deliver a Conversion
Notice until the earlier of (x) the 10th day after such notice from the General
Partner of a Transaction or (y) the third business day immediately preceding the
effective date of such Transaction. A Conversion Notice shall be provided in the
manner provided in Section 15.1. Each PI Unitholder covenants and agrees with
the Partnership that all Vested PI Units to be converted pursuant to this
Section 4.9.B shall be free and clear of all liens. Notwithstanding anything
herein to the contrary, a holder of PI Units may deliver a Notice of Redemption
pursuant to Section 8.6A of this Agreement relating to those OP Units that will
be issued to such holder upon conversion of such PI Units into OP Units in
advance of the Conversion Date; provided, however, that the redemption of such
OP Units by the Partnership shall in no event take place until after the
Conversion Date. For clarity, it is noted that the objective of this paragraph
is to put a PI Unitholder in a position where, if he or she so wishes, the OP
Units into which his or her Vested PI Units will be converted can be redeemed by
the Partnership simultaneously with such conversion, with the further
consequence that, if the Company elects to assume the Partnership's redemption
obligation with respect to such OP Units under Section 8.6B of this Agreement by
delivering to such holder REIT Shares rather than cash, then such holder can
have such REIT Shares issued to him or her simultaneously with the conversion of
his or her Vested PI Units into OP Units. The General Partner shall reasonably
cooperate with a PI Unitholder to coordinate the timing of the different events
described in the foregoing sentence.

         C. The Partnership, at any time at the election of the General Partner,
may cause any number of Vested PI Units held by a PI Unitholder to be converted
(a "Forced Conversion") into an equal number of OP Units, giving effect to all
adjustments (if any) made pursuant to Section 4.6; provided, however, that the
Partnership may not cause Forced Conversion of any PI Units that would not at
the time be eligible for conversion at the option of such PI Unitholder pursuant
to Section 4.9.B. In order to exercise its right of Forced Conversion, the
Partnership shall deliver a notice (a "Forced Conversion Notice") in the form
attached as Exhibit E to the applicable PI Unitholder not less than 10 nor more
than 60 days prior to the Conversion Date specified in such Forced Conversion
Notice. A Forced Conversion Notice shall be provided in the manner provided in
Section 15.1.

                                     - 29 -
<PAGE>

         D. A conversion of Vested PI Units for which the holder thereof has
given a Conversion Notice or the Partnership has given a Forced Conversion
Notice shall occur automatically after the close of business on the applicable
Conversion Date without any action on the part of such PI Unitholder, as of
which time such PI Unitholder shall be credited on the books and records of the
Partnership with the issuance as of the opening of business on the next day of
the number of OP Units issuable upon such conversion. After the conversion of PI
Units as aforesaid, the Partnership shall deliver to such PI Unitholder, upon
his or her written request, a certificate of the General Partner certifying the
number of OP Units and remaining PI Units, if any, held by such person
immediately after such conversion. The Assignee of any Limited Partner pursuant
to Article XI hereof may exercise the rights of such Limited Partner pursuant to
this Section 4.9 and such Limited Partner shall be bound by the exercise of such
rights by the Assignee.

         E. For purposes of making future allocations under Section 6.3.E and
applying the Capital Account Limitation, the portion of the Economic Capital
Account balance of the applicable PI Unitholder that is treated as attributable
to his or her PI Units shall be reduced, as of the date of conversion, by the
product of the number of PI Units converted and the OP Unit Economic Balance.

         F. If the Partnership or the General Partner shall be a party to any
transaction (including without limitation a merger, consolidation, unit
exchange, self tender offer for all or substantially all OP Units or other
business combination or reorganization, or sale of all or substantially all of
the Partnership's assets, but excluding any transaction which constitutes an
Adjustment Event) in each case as a result of which OP Units shall be exchanged
for or converted into the right, or the holders of such Units shall otherwise be
entitled, to receive cash, securities or other property or any combination
thereof (each of the foregoing being referred to herein as a "Transaction"),
then the General Partner shall, immediately prior to the Transaction, exercise
its right to cause a Forced Conversion with respect to the maximum number of PI
Units then eligible for conversion, taking into account any allocations that
occur in connection with the Transaction or that would occur in connection with
the Transaction if the assets of the Partnership were sold at the Transaction
price or, if applicable, at a value determined by the General Partner in good
faith using the value attributed to the Partnership Units in the context of the
Transaction (in which case the Conversion Date shall be the effective date of
the Transaction).

         In anticipation of such Forced Conversion and the consummation of the
Transaction, the Partnership shall use commercially reasonable efforts to cause
each PI Unitholder to be afforded the right to receive in connection with such
Transaction in consideration for the OP Units into which his or her PI Units
will be converted the same kind and amount of cash, securities and other
property (or any combination thereof) receivable upon the consummation of such
Transaction by a holder of the same number of OP Units, assuming such holder of
OP Units is not a Person with which the Partnership consolidated or into which
the Partnership merged or which merged into the Partnership or to which such
sale or transfer was made, as the case may be (a "Constituent Person"), or an
affiliate of a Constituent Person. In the event that holders of OP Units have
the opportunity to elect the form or type of consideration to be received upon
consummation of the Transaction, prior to such Transaction the General Partner
shall give prompt written notice to each PI Unitholder of such election, and
shall use commercially reasonable efforts to afford the PI Unitholders the right
to elect, by written notice to the General Partner, the form or type of
consideration to be received upon conversion of each PI Unit held by such holder
into OP Units in connection with such Transaction. If a PI Unitholder fails to
make such an election, such holder (and any of its transferees) shall receive
upon conversion of each PI Unit held him or her (or by any of his or her
transferees) the same kind and amount of consideration that a holder of a OP
Unit would receive if such OP Unit holder failed to make such an election.

         Subject to the rights of the Partnership and the Company under any
Vesting Agreement and any Stock Option Plan, the Partnership shall use
commercially reasonable effort to cause the terms of any Transaction to be
consistent with the provisions of this Section 4.9.F and to enter into an
agreement with the successor or purchasing entity, as the case may be, for the
benefit of any PI Unitholders whose PI Units will not be converted into OP Units
in connection with the Transaction that will (i) contain provisions enabling the
holders of PI Units that remain outstanding after such Transaction to convert
their PI Units into securities as comparable as reasonably possible under the
circumstances to the OP Units and (ii) preserve as far as reasonably possible
under the circumstances the distribution, special allocation, conversion, and
other rights set forth in this Agreement for the benefit of the PI Unitholders.

                                     - 30 -
<PAGE>

         Section 4.10. Other Contribution Provisions. In the event that any
Partner is admitted to the Partnership and is given a Capital Account in
exchange for services rendered to the Partnership, unless otherwise determined
by the General Partner in its sole and absolute discretion, such transaction
shall be treated by the Partnership and the affected Partner as if the
Partnership had compensated such partner in cash and such Partner had
contributed the cash to the capital of the Partnership. In addition, with the
consent of the General Partner, one or more Limited Partners may enter into
contribution agreements with the Partnership which have the effect of providing
a guarantee of certain obligations of the Partnership.

         Section 4.11. Not Publicly Traded. The General Partner, on behalf of
the Partnership, shall use its best efforts not to take any action which would
result in the Partnership being a "publicly traded partnership" under and as
such term is defined in Code Section 7704(b).

                                   ARTICLE V

                                  DISTRIBUTIONS

         Section 5.1. Requirement and Characterization of Distributions. Subject
to the terms of any Partnership Unit Designation, the General Partner shall
cause the Partnership to distribute at least quarterly all Available Cash
generated by the Partnership during such quarter to the Holders of Partnership
Units on such Partnership Record Date with respect to such quarter: (1) first,
with respect to any Partnership Interests that are entitled to any preference in
distribution, in accordance with the rights of such class(es) of Partnership
Interests (and, within such class(es), pro rata in proportion to the respective
Percentage Interests on such Partnership Record Date) and (2) second, with
respect to any Partnership Interests that are not entitled to any preference in
distribution, in accordance with the rights of such class of Partnership
Interests (and, within such class, pro rata in proportion to the respective
Percentage Interests on such Partnership Record Date). Distributions payable
with respect to any Partnership Units that were not outstanding during the
entire quarterly period in respect of which any distribution is made shall be
prorated based on the portion of the period that such units were outstanding.
The General Partner in its sole and absolute discretion may distribute to the
Holders Available Cash on a more frequent basis and provide for an appropriate
Partnership Record Date. Notwithstanding anything herein to the contrary, the
General Partner shall make such reasonable efforts, as determined by it in its
sole and absolute discretion and consistent with the Parent's qualification as a
REIT, to cause the Partnership to distribute sufficient amounts to enable the
Parent to pay stockholder dividends that will (a) satisfy the requirements for
its qualification as a REIT under the Code and Regulations (the "REIT
Requirements") and (b) except to the extent otherwise determined by the Parent,
in its sole and absolute discretion, avoid any federal income or excise tax
liability of the Parent. Earnout Units shall not be entitled to distributions.

         Section 5.2. Property Interests Not Held Through the General Partner.
To the extent amounts distributed by the Partnership are attributable to amounts
received from a property in which the General Partner, the Parent or any
Affiliate of the General Partner or the Parent holds a direct or indirect
interest (other than through the Partnership) (an "Outside Interest"), (i) such
amounts distributed to the General Partner will be reduced so as to take into
account amounts received pursuant to the Outside Interest and (ii) the amounts
distributed to the Limited Partners will be increased to the extent necessary so
that the overall effect of the distribution is to distribute what would have
been distributed had such Outside Interest been held through the Partnership
(treating any distribution made in respect of the Outside Interest as if such
distribution had been received by the General Partner).

                                     - 31 -
<PAGE>

         Section 5.3. Distributions In-Kind. No right is given to any Partner to
demand and receive property other than cash as provided in this Agreement. The
General Partner may determine, in its sole and absolute discretion, to make a
distribution in-kind of Partnership assets to the Holders, and such assets shall
be distributed in such a fashion as to ensure that the fair market value is
distributed and allocated in accordance with Articles V, VI and X hereof.

         Section 5.4. Amounts Withheld. All amounts withheld pursuant to the
Code or any provisions of any state or local tax law and Section 10.4 hereof
with respect to any allocation, payment or distribution to any Holder shall be
treated as amounts paid or distributed to such Holder pursuant to Section 5.1
hereof for all purposes under this Agreement.

         Section 5.5. Distributions Upon Liquidation. Notwithstanding the other
provisions of this Article V, net proceeds from a Terminating Capital
Transaction, and any other cash received or reductions in reserves made after
commencement of the liquidation of the Partnership, shall be distributed to the
Holders in accordance with Section 13.2 hereof.

         Section 5.6. Distributions to Reflect Issuance of Additional
Partnership Units. Notwithstanding Section 7.3.B hereof, in the event that the
Partnership issues additional Partnership Units pursuant to the provisions of
Article IV hereof, subject to Section 7.3.D, the General Partner is hereby
authorized to make such revisions to this Article V as it determines are
necessary or desirable to reflect the issuance of such additional Partnership
Units, including, without limitation, making preferential distributions to
certain classes of Partnership Units.

         Section 5.7. Restricted Distributions. Notwithstanding any provision to
the contrary contained in this Agreement, neither the Partnership nor the
General Partner, on behalf of the Partnership, shall make a distribution to any
Holder on account of its Partnership Interest or interest in Partnership Units
if such distribution would violate Section 17-607 of the Act or other applicable
law.

                                   ARTICLE VI

                                   ALLOCATIONS

         Section 6.1. Timing and Amount of Allocations of Net Income and Net
Loss. Net Income and Net Loss of the Partnership shall be determined and
allocated with respect to each Partnership Year of the Partnership as of the end
of each such year. Except as otherwise provided in this Article VI, and subject
to Section 11.6.C hereof, an allocation to a Holder of a share of Net Income or
Net Loss shall be treated as an allocation of the same share of each item of
income, gain, loss or deduction that is taken into account in computing Net
Income or Net Loss.

         Section 6.2. General Allocations.

         A. Allocations of Net Income and Net Loss.

                  (a) Net Income. Except as otherwise provided herein, Net
Income for any Partnership Year or other applicable period shall be allocated in
the following order and priority:

                                     - 32 -
<PAGE>

                  (i) First, to the General Partner to the extent the cumulative
         Net Loss allocated to the General Partner pursuant to subparagraph
         (b)(vi) below exceeds the cumulative Net Income allocated to the
         General Partner pursuant to this subparagraph (a)(i);

                  (ii) Second, to each Obligated Partner until the cumulative
         Net Income allocated to such Obligated Partner pursuant to this
         subparagraph (a)(ii) equals the cumulative Net Loss allocated to such
         Obligated Partner under subparagraph (b)(v) below (and, among the
         Obligated Partners, pro rata in proportion to their respective
         percentages of the cumulative Net Loss allocated to all Obligated
         Partners pursuant to subparagraph (b)(v) below);

                  (iii) Third, to the General Partner until the cumulative Net
         Income allocated to the General Partner pursuant to this subparagraph
         (a)(iii) equals the cumulative Net Loss allocated to the General
         Partner pursuant to subparagraph (b)(iv) below;

                  (iv) Fourth, to the holders of any Partnership Interests that
         are entitled to any preference upon liquidation until the cumulative
         Net Income allocated under this subparagraph (iv) equals the cumulative
         Net Loss allocated to such Partners under subparagraph (b)(iii);

                  (v) Fifth, to the holders of any Partnership Units that are
         entitled to any preference in distribution in accordance with the
         rights of any other class of Partnership Units until each such
         Partnership Unit has been allocated, on a cumulative basis pursuant to
         this subparagraph (a)(v), Net Income equal to the amount of
         distributions received which are attributable to the preference of such
         class of Partnership Unit (and, within such class, pro rata in
         proportion to the respective Percentage Interests as of the last day of
         the period for which such allocation is made); and

                  (vi) Thereafter, with respect to Partnership Units that are
         not entitled to any preference in distribution or with respect to which
         distributions are not limited to any preference in distribution, pro
         rata to each such class in accordance with the terms of such class
         (and, within such class, pro rata in proportion to the respective
         Percentage Interests as of the last day of the period for which such
         allocation is being made).

                  (b) Net Loss. Except as otherwise provided herein, Net Loss
for any Partnership Year or other applicable period shall be allocated in the
following order and priority:

                  (i) First, to each holder of Partnership Units in proportion
         to and to the extent of the amount by which the cumulative Net Income
         allocated to such Partner pursuant to subparagraph (a)(vi) above
         exceeds, on a cumulative basis, the sum of (a) distributions with
         respect to such Partnership Units pursuant to clause (1) of Section 5.1
         and (b) Net Loss allocated to such Partner pursuant to this
         subparagraph (b)(i);

                  (ii) Second, with respect to classes of Partnership Units that
         are not entitled to any preference in distribution or with respect to
         which distributions are not limited to any preference in distribution,
         pro rata to each such class in accordance with the terms of such class
         (and within such class, pro rata in proportion to the respective
         Percentage Interests as of the last day of the period for which such
         allocation is being made); provided that Net Loss shall not be
         allocated to any Partner pursuant to this subparagraph (b)(ii) to the
         extent that such allocation would cause such Partner to have an
         Adjusted Capital Account Deficit (or increase any existing Adjusted
         Capital Account Deficit (determined in each case (1) by not including
         in the Partners' Adjusted Capital Accounts any amount that a Partner
         who also holds classes of Partnership Units that are entitled to any
         preferences in distribution upon liquidation, by subtracting from such
         Partners' Adjusted Capital Account the amount of such preferred
         distribution to be made upon liquidation and (2) by not including in
         the Partners' Adjusted Capital Accounts any amount that a Partner is
         obligated to contribute to the Partnership with respect to any deficit
         in its Capital Account pursuant to Section 13.2.C) at the end of such
         Partnership Year or other applicable period;

                                     - 33 -
<PAGE>

                  (iii) Third, with respect to classes of Partnership Units that
         are entitled to any preference in distribution upon liquidation, in
         reverse order of the priorities of each such class (and within each
         such class, pro rata in proportion to their respective Percentage
         Interests as of the last day of the period for which such allocation is
         being made; provided that Net Loss shall not be allocated to any
         Partner pursuant to this subparagraph (b)(iii) to the extent that such
         allocation would cause such Partner to have an Adjusted Capital Account
         Deficit (or increase any existing Adjusted Capital Account Deficit)
         (determined in each case by not including in the Partners' Adjusted
         Capital Accounts any amount that a Partner is obligated to contribute
         to the Partnership with respect to any deficit in its Capital Account
         pursuant to Section 13.2.C) at the end of such Partnership Year or
         other applicable period;

                  (iv) Fourth, to the General Partner in an amount equal to the
         excess of (a) the amount of the Partnership Recourse Liabilities over
         (b) the aggregate Protected Amounts of all Obligated Partners;

                  (v) Fifth, to and among the Obligated Partners, in proportion
         to their respective Protected Amounts, until such time as the Obligated
         Partners as a group have been allocated cumulative Net Loss pursuant to
         this subparagraph (b)(v) equal to the aggregate Protected Amounts of
         all Obligated Partners; and

                  (vi) Thereafter, to the General Partner.

         B. Allocations to Reflect Issuance of Additional Partnership Units.
Notwithstanding Section 7.3.B hereof, in the event that the Partnership issues
additional Partnership Units pursuant to the provisions of Article IV hereof,
the General Partner is hereby authorized to make such revisions to this Section
6.2 as it determines are necessary or desirable to reflect the terms of the
issuance of such additional Partnership Units.

         Section 6.3. Additional Allocation Provisions. Notwithstanding the
foregoing provisions of this Article VI:

         A. Tax Treatment of Conversion of Earnout Units. Upon conversion of a
Earnout Unit into an OP Unit, the Company will specially allocate to the
converted Partner any Net Income attributable to an adjustment of Gross Asset
Values under subparagraph (b)(v) of the definition of "Gross Asset Value" until
the portion of such Partner's Capital Account attributable to each OP Unit
received upon conversion equals the Capital Account attributable to an OP Unit
at the time of conversion. To the extent such allocation is insufficient to
bring the portion of the Capital Account attributable to each OP Unit received
upon conversion by the converting Partner up to the Capital Account attributable
to an OP Unit at the time of conversion, additional items of gross income for
the Partnership Year (and future Partnership Years, if necessary) will be
allocated to the converted Partner as quickly as possible until the portion of
such Partner's Capital Account attributable to each OP Unit received upon
conversion equals the Capital Account attributable to an OP Unit at the time of
conversion. Notwithstanding the foregoing, the General Partner is hereby
authorized to make such revisions to this Section 6.3.A as it determines are
necessary to cause the Parent to comply with the REIT Requirements and to
prevent the Parent from being subject to any additional taxes under Code Section
857 or Code Section 4981.

                                     - 34 -
<PAGE>

         B. Regulatory Allocations.

                  (i) Minimum Gain Chargeback. Except as otherwise provided in
         Regulations Section 1.704-2(f), notwithstanding the provisions of
         Section 6.2 hereof, or any other provision of this Article VI, if there
         is a net decrease in Partnership Minimum Gain during any Partnership
         Year, each Holder shall be specially allocated items of Partnership
         income and gain for such year (and, if necessary, subsequent years) in
         an amount equal to such Holder's share of the net decrease in
         Partnership Minimum Gain, as determined under Regulations Section
         1.704-2(g). Allocations pursuant to the previous sentence shall be made
         in proportion to the respective amounts required to be allocated to
         each Holder pursuant thereto. The items to be allocated shall be
         determined in accordance with Regulations Sections 1.704-2(f)(6) and
         1.704-2(j)(2). This Section 6.3.B(i) is intended to qualify as a
         "minimum gain chargeback" within the meaning of Regulations Section
         1.704-2(f) and shall be interpreted consistently therewith.

                  (ii) Partner Minimum Gain Chargeback. Except as otherwise
         provided in Regulations Section 1.704-2(i)(4) or in Section 6.3.B(i)
         hereof, if there is a net decrease in Partner Minimum Gain attributable
         to a Partner Nonrecourse Debt during any Partnership Year, each Holder
         who has a share of the Partner Minimum Gain attributable to such
         Partner Nonrecourse Debt, determined in accordance with Regulations
         Section 1.704-2(i)(5), shall be specially allocated items of
         Partnership income and gain for such year (and, if necessary,
         subsequent years) in an amount equal to such Holder's share of the net
         decrease in Partner Minimum Gain attributable to such Partner
         Nonrecourse Debt, determined in accordance with Regulations Section
         1.704-2(i)(4). Allocations pursuant to the previous sentence shall be
         made in proportion to the respective amounts required to be allocated
         to each General Partner, Limited Partner and other Holder pursuant
         thereto. The items to be so allocated shall be determined in accordance
         with Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section
         6.3.B(ii) is intended to qualify as a "chargeback of partner
         nonrecourse debt minimum gain" within the meaning of Regulations
         Section 1.704-2(i) and shall be interpreted consistently therewith.

                  (iii) Nonrecourse Deductions and Partner Nonrecourse
         Deductions. Any Nonrecourse Deductions for any Partnership Year shall
         be specially allocated to the Holders of Partnership Units in
         accordance with their Partnership Units. Any Partner Nonrecourse
         Deductions for any Partnership Year shall be specially allocated to the
         Holder(s) who bears the economic risk of loss with respect to the
         Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions
         are attributable, in accordance with Regulations Section 1.704-2(i).

                  (iv) Qualified Income Offset. If any Holder unexpectedly
         receives an adjustment, allocation or distribution described in
         Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of
         Partnership income and gain shall be allocated, in accordance with
         Regulations Section 1.704-1(b)(2)(ii)(d), to such Holder in an amount
         and manner sufficient to eliminate, to the extent required by such
         Regulations, the Adjusted Capital Account Deficit of such Holder as
         quickly as possible. It is intended that this Section 6.3.B(iv) qualify
         and be construed as a "qualified income offset" within the meaning of
         Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
         consistently therewith.

                  (v) Gross Income Allocation. In the event that any Holder has
         an Adjusted Capital Account Deficit at the end of any Partnership Year,
         each such Holder shall be specially allocated items of Partnership
         income and gain in the amount of such excess to eliminate such deficit
         as quickly as possible.

                                     - 35 -
<PAGE>

                  (vi) Section 754 Adjustment. To the extent that an adjustment
         to the adjusted tax basis of any Partnership asset pursuant to Code
         Section 734(b) or Code Section 743(b) is required, pursuant to
         Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section
         1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining
         Capital Accounts as the result of a distribution to a Holder in
         complete liquidation of its interest in the Partnership, the amount of
         such adjustment to the Capital Accounts shall be treated as an item of
         gain (if the adjustment increases the basis of the asset) or loss (if
         the adjustment decreases such basis), and such gain or loss shall be
         specially allocated to the Holders in accordance with their Partnership
         Units in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2)
         applies, or to the Holders to whom such distribution was made in the
         event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

                  (vii) Curative Allocations. The allocations set forth in
         Sections 6.3.A(i), (ii), (iii), (iv), (v), and (vi) hereof (the
         "Regulatory Allocations") are intended to comply with certain
         regulatory requirements, including the requirements of Regulations
         Sections 1.704-1(b) and 1.704-2. Notwithstanding the provisions of
         Section 6.1 hereof, the Regulatory Allocations shall be taken into
         account in allocating other items of income, gain, loss and deduction
         among the Holders of Partnership Units so that to the extent possible
         without violating the requirements giving rise to the Regulatory
         Allocations, the net amount of such allocations of other items and the
         Regulatory Allocations to each Holder of a Partnership Unit shall be
         equal to the net amount that would have been allocated to each such
         Holder if the Regulatory Allocations had not occurred.

         C. Allocation of Excess Nonrecourse Liabilities. The Partnership shall
allocate "nonrecourse liabilities" (within the meaning of Regulations Section
1.752-1(a)(2)) of the Partnership that are secured by multiple Properties under
any reasonable method chosen by the General Partner in accordance with
Regulations Sections 1.752-3(a)(3) and (b). The Partnership shall allocate
"excess nonrecourse liabilities" of the Partnership under any method approved
under Regulations Section 1.752-3(a)(3) as chosen by the General Partner.

         D. Allocations to Reflect Outside Interests. Any income or loss to the
Partnership associated with an Outside Interest shall be specially allocated so
as to take into account amounts received by, and income or loss allocated to,
the General Partner, the Parent or any Affiliate of the General Partner or the
Parent with respect to such Outside Interest so that the overall effect is to
allocate income or loss in the same manner as would have occurred had such
Outside Interest been held through the Partnership (treating any allocation in
respect of the Outside Interest as if such allocation had been made to the
General Partner).

         E. Special Allocations Regarding PI Units. Notwithstanding the
provisions of Section 6.2 above, Liquidating Gains shall first be allocated to
the Holders of PI Units until the Economic Capital Account Balances of such
Holders, to the extent attributable to their ownership of PI Units, are equal to
(i) the OP Unit Economic Balance, multiplied by (ii) the number of their PI
Units; provided that no such Liquidating Gains will be allocated with respect to
any particular PI Unit unless and to the extent that the OP Unit Economic
Balance exceeds the OP Unit Economic Balance in existence at the time such PI
Unit was issued. For this purpose, "Liquidating Gains" means net capital gains
realized in connection with the actual or hypothetical sale of all or
substantially all of the assets of the Partnership, including but not limited to
net capital gain realized in connection with an adjustment to the Gross Asset
Value of Partnership assets under Section 704(b) of the Code. The "Economic
Capital Account Balances" of the Holders of PI Units will be equal to their
Capital Account balances, plus the amount of their shares of any Partner Minimum
Gain or Partnership Minimum Gain, in either case to the extent attributable to
their ownership of PI Units. Similarly, the "OP Unit Economic Balance" shall
mean (i) the Capital Account balance of the General Partner, plus the amount of
the General Partner's share of any Partner Minimum Gain or Partnership Minimum
Gain, in either case to the extent attributable to the General Partner's
ownership of OP Units and computed on a hypothetical basis after taking into
account all allocations through the date on which any allocation is made under
this Section 6.3.E, divided by (ii) the number of the General Partner's OP
Units. Any such allocations shall be made among the PI Unitholders in proportion
to the amounts required to be allocated to each under this Section 6.3.E. The
parties agree that the intent of this Section 6.3.E is to make the Capital
Account balance associated with each PI Unit to be economically equivalent to
the Capital Account balance associated with the General Partner's OP Units (on a
per-Unit basis), but only if and to the extent that the Capital Account balance
associated with the General Partner's OP Units has increased on a per-Unit basis
since the issuance of the relevant PI Unit.

                                     - 36 -
<PAGE>

         Section 6.4. Tax Allocations.

         A. In General. Except as otherwise provided in this Section 6.4, for
income tax purposes under the Code and the Regulations each Partnership item of
income, gain, loss and deduction (collectively, "Tax Items") shall be allocated
among the Holders of Partnership Units in the same manner as its correlative
item of "book" income, gain, loss or deduction is allocated pursuant to Sections
6.2 and 6.3 hereof.

         B. Allocations Respecting Section 704(c) Revaluations. Notwithstanding
Section 6.4.A hereof, Tax Items with respect to Property that is contributed to
the Partnership with a Gross Asset Value that varies from its basis in the hands
of the contributing Partner immediately preceding the date of contribution shall
be allocated among the Holders of Partnership Units for income tax purposes
pursuant to Regulations promulgated under Code Section 704(c) so as to take into
account such variation. The Partnership shall account for such variation under
any method approved under Code Section 704(c) and the applicable Regulations as
chosen by the General Partner, including, without limitation, the "remedial
allocation method" as described in Regulations Section 1.704-3(d); provided,
however, that the "traditional method" shall be used for any properties held
directly or indirectly by Feldman Equities of Arizona, LLC and contributed to
the Partnership simultaneously with the IPO. In the event that the Gross Asset
Value of any partnership asset is adjusted pursuant to subsection (b) of the
definition of "Gross Asset Value" (provided in Article I hereof), subsequent
allocations of Tax Items with respect to such asset shall take account of the
variation, if any, between the adjusted basis of such asset and its Gross Asset
Value in the same manner as under Code Section 704(c) and the applicable
Regulations.

                                  ARTICLE VII

                      MANAGEMENT AND OPERATIONS OF BUSINESS

         Section 7.1. Management.

         A. Except as otherwise expressly provided in this Agreement, all
management powers over the business and affairs of the Partnership are and shall
be exclusively vested in the General Partner, and no Limited Partner shall have
any right to participate in or exercise control or management power over the
business and affairs of the Partnership. The General Partner may not be removed
by the Partners with or without cause, except with the consent of the General
Partner. In addition to the powers now or hereafter granted to a general partner
of a limited partnership under applicable law or that are granted to the General
Partner under any other provision of this Agreement, the General Partner,
subject to the other provisions hereof including Section 7.3, 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:

                                     - 37 -
<PAGE>

                  (i) the making of any expenditures, the lending or borrowing
         of money (including, without limitation, making prepayments on loans
         and borrowing money or selling assets to permit the Partnership to make
         distributions to its Partners in such amounts as will permit the Parent
         (so long as the Parent desires to maintain or restore its status as a
         REIT) to avoid the payment of any federal income tax (including, for
         this purpose, any excise tax pursuant to Code Section 4981) and to make
         distributions to its stockholders sufficient to permit the Parent to
         maintain or restore REIT status or otherwise to satisfy the REIT
         Requirements), the assumption or guarantee of, or other contracting
         for, indebtedness and other liabilities, the issuance of evidences of
         indebtedness (including the securing of same by deed to secure debt,
         mortgage, deed of trust or other lien or encumbrance on the
         Partnership's assets) and the incurring of any obligations that it
         deems necessary for the conduct of the activities of the Partnership;

                  (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, the registration of any class of securities of the
         Partnership under the Exchange Act and the listing of any debt
         securities of the Partnership on any exchange;

                  (iii) the acquisition, sale, lease, transfer, exchange or
         other disposition of any, all or substantially all of the assets of the
         Partnership (including, but not limited to, the exercise or grant of
         any conversion, option, privilege or subscription right or any other
         right available in connection with any assets at any time held by the
         Partnership) or the merger, consolidation, reorganization or other
         combination of the Partnership with or into another entity;

                  (iv) the mortgage, pledge, encumbrance or hypothecation of any
         assets of the Partnership, 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 that it
         sees fit, including, without limitation, the financing of the
         operations and activities of the General Partner, the Partnership or
         any of the Partnership's Subsidiaries, the lending of funds to other
         Persons (including, without limitation, the Partnership's Subsidiaries)
         and the repayment of obligations of the Partnership, its Subsidiaries
         and any other Person in which the Partnership has an equity investment,
         and the making of capital contributions to and equity investments in
         the Partnership's Subsidiaries;

                  (v) the management, operation, leasing, landscaping, repair,
         alteration, demolition, replacement or improvement of any Property,
         including, without limitation, any Contributed Property, or other asset
         of the Partnership or any Subsidiary, whether pursuant to a Services
         Agreement or otherwise;

                  (vi) the negotiation, execution and performance of any
         contracts, leases, 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, the holding,
         management, investment and reinvestment of cash and other assets of the
         Partnership and the collection and receipt of revenues, rents and
         income of the Partnership;

                                     - 38 -
<PAGE>

                  (viii) the maintenance of such insurance for the benefit of
         the Partnership and the Partners as it deems necessary or appropriate,
         including, without limitation, (i) casualty, liability and other
         insurance on the Properties and (ii) liability insurance for the
         Indemnitees hereunder;

                  (ix) the formation of, or acquisition of an interest in, and
         the contribution of property to, any further limited or general
         partnerships, limited liability companies, joint ventures or other
         relationships that it deems desirable (including, without limitation,
         the acquisition of interests in, and the contributions of property to,
         any Subsidiary and any other Person in which it has an equity
         investment from time to time); provided, however, that, as long as the
         Parent has determined to continue to qualify as a REIT, the General
         Partner may not engage in any such formation, acquisition or
         contribution that would cause the Parent to fail to qualify as a REIT
         within the meaning of Code Section 856(a);

                  (x) the control of any matters affecting the rights and
         obligations of the Partnership, including 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, the commencement or defense of
         suits, legal proceedings, administrative proceedings, arbitrations or
         other forms of dispute resolution, and the representation of the
         Partnership in all suits or legal proceedings, administrative
         proceedings, arbitrations or other forms of dispute resolution, the
         incurring of legal expense, and the indemnification of any Person
         against liabilities and contingencies to the extent permitted by law;

                  (xi) the undertaking of any action in connection with the
         Partnership's direct or indirect investment in any Subsidiary or any
         other Person (including, without limitation, the contribution or loan
         of funds by the Partnership to such Persons);

                  (xii) except as otherwise specifically set forth in this
         Agreement, the determination of the fair market value of any
         Partnership property distributed in-kind using such reasonable method
         of valuation as it may adopt; provided that such methods are otherwise
         consistent with the requirements of this Agreement;

                  (xiii) the enforcement of any rights against any Partner
         pursuant to representations, warranties, covenants and indemnities
         relating to such Partner's contribution of property or assets to the
         Partnership;

                  (xiv) 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;

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

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

                                     - 39 -
<PAGE>

                  (xvii) the making, execution and delivery of any and all
         deeds, leases, notes, deeds to secure debt, 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 powers of the General Partner
         enumerated in this Agreement;

                  (xviii) the issuance of additional Partnership Units, as
         appropriate and in the General Partner's sole and absolute discretion,
         in connection with Capital Contributions by Additional Limited Partners
         and additional Capital Contributions by Partners pursuant to Article IV
         hereof;

                  (xix) the selection and dismissal of Company Employees
         (including, without limitation, employees having titles or offices such
         as president, vice president, secretary and treasurer), and agents,
         outside attorneys, accountants, consultants and contractors of the
         Partnership or the General Partner, the determination of their
         compensation and other terms of employment or hiring and the delegation
         to any such Company Employee the authority to conduct the business of
         the Partnership in accordance with the terms of this Agreement;

                  (xx) the distribution of cash to acquire Partnership Units
         held by a Limited Partner in connection with a Limited Partner's
         exercise of its Redemption Right under Section 8.6 hereof;

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

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

                  (xxiii) an election to dissolve the Partnership pursuant to
         Section 13.1.D hereof.

         B. Each of the Limited Partners agrees that, except as provided in
Section 7.3 hereof, the General Partner is authorized to execute, deliver and
perform the above-mentioned agreements and transactions on behalf of the
Partnership without any further act, approval or vote of the Partners,
notwithstanding any other provision of this Agreement, the Act or any applicable
law, rule or regulation.

         C. At all times from and after the date hereof, the General Partner may
cause the Partnership to establish and maintain working capital and other
reserves in such amounts as the General Partner, in its sole and absolute
discretion, deems appropriate and reasonable from time to time.

         D. In exercising its authority under this Agreement, the General
Partner may, but shall be under no obligation to, take into account the tax
consequences to any Partner (including the General Partner) of any action taken
(or not taken) by it. Except as may be provided in a separate written agreement
between the Partnership and the Limited Partners, the General Partner and the
Partnership shall not have liability to a Limited Partner under any
circumstances as a result of an income tax liability incurred by such Limited
Partner as a result of an action (or inaction) by the General Partner pursuant
to its authority under this Agreement; provided that the General Partner has
acted in good faith and pursuant to its authority under this Agreement.

                                     - 40 -
<PAGE>

         Section 7.2. Certificate of Limited Partnership. 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 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, the
District of Columbia or any other jurisdiction, in which the Partnership may
elect to do business or own property. Except as otherwise required under the
Act, 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. 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 to the extent provided by applicable law) in the
State of Delaware and any other state, or the District of Columbia or other
jurisdiction, in which the Partnership may elect to do business or own property.

         Section 7.3. Restrictions on General Partner's Authority.

         A. The General Partner may not take any action in contravention of an
express prohibition or limitation of this Agreement without the written consent
of a Majority in Interest of the Outside Limited Partners and may not (1)
perform any act that would subject a Limited Partner to liability as a general
partner in any jurisdiction or any other liability except as provided herein or
under the Act; or (2) enter into any contract, mortgage, loan or other agreement
that prohibits or restricts, or has the effect of prohibiting or restricting,
the ability of a Limited Partner to exercise its rights to a Redemption in full,
except in each case with the written consent of such Limited Partner. The
General Partner may not take any action in contravention of this Agreement,
including, without limitation:

         B. The General Partner shall not, without the written consent of a
Majority in Interest of the Outside Limited Partners, except as provided in
Sections 4.3.A, 5.5, 6.2.B and 7.3.C hereof, amend, modify or terminate this
Agreement.

         C. Notwithstanding Sections 7.3.B and 14.2, the General Partner shall
have the exclusive power, without the prior consent of the Limited Partners, to
amend this Agreement as may be required to facilitate or implement any of the
following purposes:

                  (i) to add to the obligations of the General Partner or
         surrender any right or power granted to the General Partner or any
         Affiliate of the General Partner for the benefit of the Limited
         Partners;

                  (ii) to reflect the admission, substitution or withdrawal of
         Partners or the termination of the Partnership in accordance with this
         Agreement, and to amend Exhibit A in connection with such admission,
         substitution or withdrawal;

                  (iii) to reflect a change that is of an inconsequential nature
         and does not adversely affect the Limited Partners in any material
         respect, or to cure any ambiguity, correct or supplement any provision
         in this Agreement not inconsistent with law or with other provisions,
         or make other changes with respect to matters arising under this
         Agreement that will not be inconsistent with law or with the provisions
         of this Agreement;

                                     - 41 -
<PAGE>

                  (iv) to satisfy any requirements, conditions or guidelines
         contained in any order, directive, opinion, ruling or regulation of a
         federal or state agency or contained in federal or state law;

                  (v) (a) to reflect such changes as are reasonably necessary
         for the Parent to maintain or restore its status as a REIT or to
         satisfy the REIT Requirements; or (b) to reflect the Transfer of all or
         any part of a Partnership Interest among the General Partner, the
         Parent Limited Partner, the Parent and any Qualified REIT Subsidiary;

                  (vi) to modify the manner in which Capital Accounts are
         computed (but only to the extent set forth in the definition of
         "Capital Account" or contemplated by the Code or the Regulations); and

                  (vii) to issue additional Partnership Interests in accordance
         with Section 4.3.

         The General Partner will provide notice to the Limited Partners
whenever any action under this Section 7.3.C is taken.

         D. Notwithstanding Sections 7.3.B and 7.3.C hereof, this Agreement
shall not be amended, and no action may be taken by the General Partner, without
the consent of each Partner adversely affected thereby, if such amendment or
action would (i) convert a Limited Partner Interest in the Partnership into a
General Partner Interest (except as a result of the General Partner acquiring
such Partnership Interest), (ii) modify the limited liability of a Limited
Partner or (iii) amend this Section 7.3.D. Further, no amendment may alter the
restrictions on the General Partner's authority set forth elsewhere in this
Section 7.3 or in Section 11.2.B without the consent specified therein. Any such
amendment or action consented to by any Partner shall be effective as to that
Partner, notwithstanding the absence of such consent by any other Partner.

         Section 7.4. Reimbursement of the General Partner and Parent.

         A. Except as provided in this Section 7.4 and elsewhere in this
Agreement (including the provisions of Articles 5 and 6 regarding distributions,
payments and allocations to which it may be entitled), the General Partner shall
not be compensated for its services as general partner of the Partnership.

         B. The Partnership shall be responsible for and shall pay all expenses
relating to the Partnership's, the General Partner's and the Parent's
organization, the ownership of their assets and their operations. The General
Partner and/or the Parent are hereby authorized to pay compensation for
accounting, administrative, legal, technical, management and other services
rendered to the Partnership. Except to the extent provided in this Agreement,
the General Partner, the Parent and their Affiliates shall be reimbursed on a
monthly basis, or such other basis as the General Partner may determine in its
sole and absolute discretion, for all expenses that the General Partner, the
Parent and their Affiliates incur relating to the ownership and operation of, or
for the benefit of, the Partnership (including, without limitation,
administrative expenses); 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. The Partners acknowledge that all such expenses of the General
Partner and/or the Parent are deemed to be for the benefit of the Partnership.
Such reimbursement shall be in addition to any reimbursement made as a result of
indemnification pursuant to Section 7.7 hereof. In the event that certain
expenses are incurred for the benefit of the Partnership and other entities
(including the General Partner and/or the Parent), such expenses will be
allocated to the Partnership and such other entities in such a manner as the
General Partner in its sole and absolute discretion deems fair and reasonable.
All payments and reimbursements hereunder shall be characterized for federal
income tax purposes as expenses of the Partnership incurred on its behalf, and
not as expenses of the General Partner and/or the Parent.

                                     - 42 -
<PAGE>

         C. If the Parent shall elect to purchase from its stockholders REIT
Shares for the purpose of delivering such REIT Shares to satisfy an obligation
under any dividend reinvestment program adopted by the Parent, any employee
stock purchase plan adopted by the Parent or any similar obligation or
arrangement undertaken by the Parent in the future or for the purpose of
retiring such REIT Shares, the purchase price paid by the Parent for such REIT
Shares and any other expenses incurred by the Parent in connection with such
purchase shall be considered expenses of the Partnership and shall be advanced
to the Parent or reimbursed to the Parent, subject to the condition that: (1) if
such REIT Shares subsequently are sold by the Parent, the Parent shall pay or
cause to be paid to the Partnership any proceeds received by the Parent for such
REIT Shares (which sales proceeds shall include the amount of dividends
reinvested under any dividend reinvestment or similar program; provided that a
transfer of REIT Shares for Partnership Units pursuant to Section 8.6 would not
be considered a sale for such purposes); and (2) if such REIT Shares are not
retransferred by the Parent within 30 days after the purchase thereof, or the
Parent otherwise determines not to retransfer such REIT Shares, the Parent shall
cause the Partnership to redeem a number of Partnership Units held by the Parent
equal to the number of such REIT Shares, as adjusted (x) pursuant to Section 7.7
(in the event the General Partner acquires material assets, other than on behalf
of the Partnership) and (y) for stock dividends and distributions, stock splits
and subdivisions, reverse stock splits and combinations, distributions of
rights, warrants or options, and distributions of evidences of indebtedness or
assets relating to assets not received by the General Partner pursuant to a pro
rata distribution by the Partnership (in which case such advancement or
reimbursement of expenses shall be treated as having been made as a distribution
in redemption of such number of Partnership Units held by the General Partner).

         D. As set forth in Section 4.3, the General Partner shall be treated as
having made a Capital Contribution in the amount of all expenses that the Parent
incurs relating to the Parent's offering of REIT Shares, Preferred Shares,
Junior Shares or New Securities.

         E. If and to the extent any reimbursements to the General Partner
pursuant to this Section 7.4 constitute gross income of the General Partner (as
opposed to the repayment of advances made by the General Partner on behalf of
the Partnership), such amounts shall constitute guaranteed payments with respect
to capital within the meaning of Code Section 707(c), 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.

         Section 7.5. Outside Activities of the General Partner. The General
Partner shall not directly or indirectly enter into or conduct any business,
other than in connection with (a) the ownership, acquisition and disposition of
Partnership Interests as General Partner, (b) the management of the business of
the Partnership, (c) if the General Partner becomes a reporting company with a
class (or classes) of securities registered under the Exchange Act, the
operation of the General Partner as such, (d) financing or refinancing of any
type related to the Partnership or its assets or activities, (e) any of the
foregoing activities as they relate to a Subsidiary of the Partnership, and (f)
such activities as are incidental thereto. Nothing contained herein shall be
deemed to prohibit the General Partner from executing guarantees of Partnership
debt for which it would otherwise be liable in its capacity as General Partner.

                                     - 43 -
<PAGE>

         Section 7.6. Contracts with Affiliates.

         A. 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
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. The Partnership may transfer assets to joint ventures, limited
liability companies, partnerships, corporations, business trusts or other
business entities in which it is or thereby becomes a participant upon such
terms and subject to such conditions consistent with this Agreement and
applicable law as the General Partner, in its sole and absolute discretion,
believes to be advisable.

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

         D. The General Partner and/or the Parent, 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 funded by the
Partnership for the benefit of employees of the General Partner, the
Partnership, 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 or any of the Partnership's Subsidiaries.

         E. The General Partner is expressly authorized to enter into, in the
name and on behalf of the Partnership, any Services Agreement with Affiliates of
any of the Partnership or the General Partner, on such terms as the General
Partner, in its sole and absolute discretion, believes are advisable.

         Section 7.7. Indemnification.

         A. To the fullest extent permitted by applicable law, the Partnership
shall indemnify each Indemnitee from and against any and all losses, claims,
damages, liabilities (whether joint or several), expenses (including, without
limitation, attorney's 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,
that relate to the operations of the Partnership ("Actions") as set forth in
this Agreement in which such Indemnitee may be involved, or is threatened to be
involved, as a party or otherwise; provided, however, that the Partnership shall
not indemnify an Indemnitee (1) for willful misconduct or a knowing violation of
the law, (2) for any transaction for which such Indemnitee received an improper
personal benefit in violation or breach of any provision of this Agreement, or
(3) in the case of any criminal proceeding, the Indemnitee had reasonable cause
to believe that the act or omission was unlawful. Without limitation, the
foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to
a loan guaranty 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 indemnity agreements
consistent with the provisions of this Section 7.7 in favor of any Indemnitee
having or potentially having liability for any such indebtedness. The
termination of any proceeding by judgment, order or settlement does not create a
presumption that the Indemnitee did not meet the requisite standard of conduct
set forth in this Section 7.7.A. The termination of any proceeding by conviction
of an Indemnitee or upon a plea of nolo contendere or its equivalent by an
Indemnitee, or an entry of an order of probation against an Indemnitee prior to
judgment, does not create a presumption that such Indemnitee acted in a manner
contrary to that specified in this Section 7.7.A with respect to the subject
matter of such proceeding. Any indemnification pursuant to this Section 7.7
shall be made only out of the assets of the Partnership and any insurance
proceeds from the liability policy covering the General Partner and any
Indemnitees, 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 7.7.

                                     - 44 -
<PAGE>

         B. To the fullest extent permitted by law, expenses incurred by an
Indemnitee who is a party to a proceeding or otherwise subject to or the focus
of or is involved in any Action shall be paid or reimbursed by the Partnership
as incurred by the Indemnitee in advance of the final disposition of the Action
upon receipt by the Partnership of (1) a written affirmation by the Indemnitee
of the Indemnitee's good faith belief that the standard of conduct necessary for
indemnification by the Partnership as authorized in this Section 7.7.B has been
met and (2) a written undertaking by or on behalf of the Indemnitee to repay the
amount if it shall ultimately be determined that the standard of conduct has not
been met.

         C. The indemnification provided by this Section 7.7 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 and shall inure to the benefit of the heirs, successors,
assigns and administrators of the Indemnitee unless otherwise provided in a
written agreement with such Indemnitee or in the writing pursuant to which such
Indemnitee is indemnified.

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

         E. Any liabilities which an Indemnitee incurs as a result of acting on
behalf of the Partnership, the General Partner or the Parent (whether as a
fiduciary or otherwise) in connection with the operation, administration or
maintenance of an employee benefit plan or any related trust or funding
mechanism (whether such liabilities are in the form of excise taxes assessed by
the IRS, penalties assessed by the Department of Labor, restitutions to such a
plan or trust or other funding mechanism or to a participant or beneficiary of
such plan, trust or other funding mechanism, or otherwise) shall be treated as
liabilities or judgments or fines under this Section 7.7, unless such
liabilities arise as a result of (1) such Indemnitee's intentional misconduct or
knowing violation of the law, (2) any transaction in which such Indemnitee
received a personal benefit in violation or breach of any provision of this
Agreement or applicable law, or (3) in the case of any criminal proceeding, the
Indemnitee had reasonable cause to believe that the act or omission was
unlawful.

         F. 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.

         G. An Indemnitee shall not be denied indemnification in whole or in
part under this Section 7.7 because the Indemnitee had an interest in the
transaction with respect to which the indemnification applies if the transaction
was otherwise permitted by the terms of this Agreement.

         H. The provisions of this Section 7.7 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. 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 obligations of the
Partnership or the limitations on the Partnership's liability to any Indemnitee
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.

                                     - 45 -
<PAGE>

         I. If and to the extent any payments to the General Partner pursuant to
this Section 7.7 constitute gross income to the General Partner (as opposed to
the repayment of advances made on behalf of the Partnership) such amounts shall
be treated as "guaranteed payments" within the meaning of Code Section 707(c),
shall be treated consistently therewith by the Partnership and all Partners, and
shall not be treated by distribution for purposes of computing the Partners'
Capital Accounts.

         Section 7.8. Liability of the General Partner.

         A. Notwithstanding anything to the contrary set forth in this
Agreement, neither the General Partner nor any of its trustees or officers shall
be liable or accountable in damages or otherwise to the Partnership, any
Partners or any Assignees for losses sustained, liabilities incurred or benefits
not derived as a result of errors in judgment or mistakes of fact or law or of
any act or omission if the General Partner or such trustee or officer acted in
good faith.

         B. The Limited Partners expressly acknowledge that the General Partner
is acting for the benefit of the Partnership, the Limited Partners and the
Parent's stockholders collectively and that the General Partner is under no
obligation to give priority to the separate interests of the Limited Partners or
the Parent's stockholders (including, without limitation, the tax consequences
to Limited Partners, Assignees or the Parent's stockholders) in deciding whether
to cause the Partnership to take (or decline to take) any actions. If there is a
conflict between the interests of the stockholders of the Parent on one hand and
the Limited Partners on the other, the General Partner shall endeavor in good
faith to resolve the conflict in a manner not adverse to either the stockholders
of the Parent or the Limited Partners. The General Partner shall not be liable
under this Agreement to the Partnership or to any Partner for monetary damages
for losses sustained, liabilities incurred, or benefits not derived by Limited
Partners in connection with such decisions; provided, that the General Partner
has acted in good faith.

         C. Subject to its obligations and duties as General Partner set forth
in Section 7.1.A hereof, the General Partner may exercise any of the powers
granted to it by this Agreement and perform any of the duties imposed upon it
hereunder either directly or by or through its employees or agents (subject to
the supervision and control of the General Partner). The General Partner shall
not be responsible for any misconduct or negligence on the part of any such
agent appointed by it in good faith.

         D. To the extent that, at law or in equity, the General Partner has
duties (including fiduciary duties) and liabilities relating thereto to the
Partnership or the Limited Partners, the General Partner shall not be liable to
the Partnership or to any other Partner for its good faith reliance on the
provisions of this Agreement.

         E. Notwithstanding anything herein to the contrary, except for fraud,
willful misconduct or gross negligence, or pursuant to any express indemnities
given to the Partnership by any Partner pursuant to any other written
instrument, no Partner shall have any personal liability whatsoever, to the
Partnership or to the other Partner(s), for the debts or liabilities of the
Partnership or the Partnership's obligations hereunder, and the full recourse of
the other Partner(s) shall be limited to the interest of that Partner in the
Partnership. To the fullest extent permitted by law, no officer, trustee or
shareholder of the General Partner shall be liable to the Partnership for money
damages except for (1) active and deliberate dishonesty established by a
non-appealable final judgment or (2) actual receipt of an improper benefit or
profit in money, property or services. Without limitation of the foregoing, and
except for fraud, willful misconduct or gross negligence, or pursuant to any
such express indemnity, no property or assets of any Partner, other than its
interest in the Partnership, shall be subject to levy, execution or other
enforcement procedures for the satisfaction of any judgment (or other judicial
process) in favor of any other Partner(s) and arising out of, or in connection
with, this Agreement. This Agreement is executed by the trustees of the General
Partner solely as trustees of the same and not in their own individual
capacities.

                                     - 46 -
<PAGE>

         F. Any amendment, modification or repeal of this Section 7.8 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 trustees', liability
to the Partnership and the Limited Partners under this Section 7.8 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.

         Section 7.9. Other Matters Concerning the General Partner and the
Parent.

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

         B. The General Partner and the Parent 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 that the General Partner and the Parent reasonably
believe 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. The General Partner shall have the right, in respect of any of its
powers or obligations hereunder, to act through any of its duly authorized
officers and a duly appointed attorney or attorneys-in-fact. Each such attorney
shall, to the extent provided by the General Partner in the power of attorney,
have full power and authority to do and perform all and every act and duty that
is permitted or required to be done by the General Partner hereunder.

         D. Notwithstanding any other provision of this Agreement or the Act,
any action of the General Partner or the Parent on behalf of the Partnership or
any decision of the General Partner or the Parent 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 (1) to protect the ability of the
Parent to continue to qualify as a REIT, (2) for the Parent otherwise to satisfy
the REIT Requirements, or (3) to avoid the Parent incurring any taxes under Code
Section 857 or Code Section 4981, is expressly authorized under this Agreement
and is deemed approved by all of the Limited Partners.

         Section 7.10. Title to Partnership Assets. Title to Partnership assets,
whether real, personal or mixed and whether tangible or intangible, shall be
deemed to be owned by the Partnership as an entity, and no Partner, individually
or collectively with other Partners or Persons, shall have any ownership
interest in such Partnership assets or any portion thereof. Title to any or all
of the Partnership assets may be held in the name of the Partnership, the
General Partner or one or more nominees, as the General Partner may determine,
including Affiliates of the General Partner. The General Partner hereby declares
and warrants that any Partnership assets for which legal title is held in the
name of the General Partner or any nominee or Affiliate of the General Partner
shall be held by the General Partner for the use and benefit of the Partnership
in accordance with the provisions of this Agreement. 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.

                                     - 47 -
<PAGE>

         Section 7.11. Reliance by Third Parties. 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 assets of the Partnership and to
enter into any contracts on behalf of the Partnership, and take any and all
actions on behalf of the Partnership, and such Person shall be entitled to deal
with the General Partner as if it were the Partnership's sole party in interest,
both legally and beneficially. Each Limited Partner hereby waives any and all
defenses or other remedies that may be available against such Person to contest,
negate or disaffirm any action of the General Partner in connection with any
such dealing. 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. 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 in good faith thereon or claiming
thereunder that (1) at the time of the execution and delivery of such
certificate, document or instrument, this Agreement was in full force and
effect, (2) 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 (3) 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 VIII

                   RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

         Section 8.1. Limitation of Liability. The Limited Partners shall have
no liability under this Agreement (other than for breach thereof) except as
expressly provided in Section 10.4 or under the Act.

         Section 8.2. Management of Business. No Limited Partner or Assignee
(other than the General Partner, any of its Affiliates or any officer, director,
member, employee, partner, agent or trustee of the General Partner, the
Partnership or any of their Affiliates, in their capacity as such) shall take
part in the operations, management or control (within the meaning of the Act) of
the Partnership's business, transact any business in the Partnership's name or
have the power to sign documents for or otherwise bind the Partnership. The
transaction of any such business by the General Partner, any of its Affiliates
or any officer, director, member, employee, partner, agent, representative,
shareholder or trustee of the General Partner, the Partnership or any of their
Affiliates, in their capacity as such, shall not affect, impair or eliminate the
limitations on the liability of the Limited Partners or Assignees under this
Agreement.

         Section 8.3. Outside Activities of Limited Partners. Subject to any
agreements entered into pursuant to Section 7.6.E hereof and any other
agreements entered into by a Limited Partner or its Affiliates with the General
Partner, the Partnership, the Parent or any Affiliate thereof (including,
without limitation, any employment agreement), any Limited Partner (other than
the Parent Limited Partner) and any Assignee, officer, director, employee,
agent, trustee, Affiliate, member or shareholder of any Limited Partner shall be
entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and
activities that are in direct or indirect competition with the Partnership or
that are enhanced by the activities of the Partnership. Neither the Partnership
nor any Partner shall have any rights by virtue of this Agreement in any
business ventures of any Limited Partner or Assignee. Subject to such
agreements, 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 (other than the General
Partner, to the extent expressly provided herein), and such Person shall have no
obligation pursuant to this Agreement, subject to Section 7.6.E hereof and any
other agreements entered into by a Limited Partner or its Affiliates with the
General Partner, the Partnership, the Parent or any Affiliate thereof, to offer
any interest in any such business ventures to the Partnership, any Limited
Partner, the Parent or any such other Person, even if such opportunity is of a
character that, if presented to the Partnership, any Limited Partner, the Parent
or such other Person, could be taken by such Person.

                                     - 48 -
<PAGE>

         Section 8.4. Return of Capital. Except pursuant to the rights of
Redemption set forth in Section 8.6 hereof, no Limited Partner shall be entitled
to the withdrawal or return of its Capital Contribution, except to the extent of
distributions made pursuant to this Agreement or upon termination of the
Partnership as provided herein. Except to the extent provided in Article VI
hereof or 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 profits, losses or
distributions.

         Section 8.5. Adjustment Factor. The Partnership shall notify any
Limited Partner that is a Qualifying Party, on request, of the then current
Adjustment Factor or any change made to the Adjustment Factor.

         Section 8.6. Redemption Rights.

         A. On or after the date 12 months after the Effective Date, with
respect to the OP Units (including any Earnout Units and PI Units that are
converted into OP Units) acquired on or contemporaneously with the Effective
Date or on any other date specified in the agreement relating to the issuance of
any other OP Units, each Limited Partner (other than the Parent Limited Partner)
shall have the right (subject to the terms and conditions set forth herein and
in any other such agreement, as applicable) to require the Partnership to redeem
all or a portion of the OP Units held by such Limited Partner (such OP Units
being hereafter referred to as "Tendered Units") in exchange for the Cash Amount
(a "Redemption") unless the terms of such OP Units or a separate agreement
entered into between the Partnership and the holder of such OP Units provide
that such OP Units are not entitled to a right of Redemption. The Tendering
Partner shall have no right, with respect to any OP Units so redeemed, to
receive any distributions paid on or after the Specified Redemption Date. Any
Redemption shall be exercised pursuant to a Notice of Redemption delivered to
the General Partner by the Limited Partner who is exercising the right (the
"Tendering Partner"). The Cash Amount shall be payable to the Tendering Partner
on the Specified Redemption Date.

         B. Notwithstanding Section 8.6.A above, if a Limited Partner has
delivered to the General Partner a Notice of Redemption then the Parent may, in
its sole and absolute discretion, (subject to the limitations on ownership and
transfer of REIT Shares set forth in the Charter) elect to assume and satisfy
the General Partner's Redemption obligation and acquire some or all of the
Tendered Units from the Tendering Partner in exchange for the REIT Shares Amount
(as of the Specified Redemption Date) and, if the Parent so elects, the
Tendering Partner shall sell the Tendered Units to the Parent in exchange for
the REIT Shares Amount. In such event, the Tendering Partner shall have no right
to cause the Partnership to redeem such Tendered Units. The Parent shall
promptly give such Tendering Partner written notice of its election, and the
Tendering Partner may elect to withdraw its redemption request at any time prior
to the acceptance of the cash or REIT Shares Amount by such Tendering Partner.
Assuming the Parent exercises its option to deliver REIT Shares, the Parent
shall contribute the Tendered Units to the General Partner and/or the Parent
Limited Partner, as the case may be.

                                     - 49 -
<PAGE>

         C. The REIT Shares Amount, if applicable, shall be delivered as duly
authorized, validly issued, fully paid and nonassessable REIT Shares and, if
applicable, free of any pledge, lien, encumbrance or restriction, other than
those provided in the Charter or the Bylaws of the Parent, the Securities Act,
relevant state securities or blue sky laws and any applicable registration
rights agreement with respect to such REIT Shares entered into by the Tendering
Partner. Notwithstanding any delay in such delivery (but subject to Section
8.6.E), the Tendering Partner shall be deemed the owner of such REIT Shares for
all purposes, including without limitation, rights to vote or consent, and
receive dividends, as of the Specified Redemption Date. In addition, the REIT
Shares for which the Partnership Units might be exchanged shall also bear a
legend which generally provides the following:

                      Restriction on Ownership and Transfer

THE SHARES OF CAPITAL STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE
PURPOSE OF THE COMPANY'S MAINTENANCE OF ITS STATUS AS A REAL ESTATE INVESTMENT
TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"). SUBJECT
TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN THE
COMPANY'S ARTICLES OF AMENDMENT AND RESTATEMENT, (i) NO PERSON MAY BENEFICIALLY
OR CONSTRUCTIVELY OWN SHARES OF THE COMPANY'S COMMON STOCK IN EXCESS OF 9.0 %,
UNLESS SUCH PERSON IS AN INVESTMENT ENTITY, IN WHICH CASE, IT IS 9.8% (BY VALUE
OR BY NUMBER OF SHARES, WHICHEVER IS MORE RESTRICTIVE) OF THE OUTSTANDING COMMON
STOCK OF THE COMPANY OR SHARES OF THE COMPANY'S CAPITAL STOCK IN EXCESS OF 9.0
%, UNLESS SUCH PERSON IS AN INVESTMENT ENTITY, IN WHICH CASE, IT IS 9.8% (BY
VALUE OR BY NUMBER OF SHARES, WHICHEVER IS MORE RESTRICTIVE) OF THE OUTSTANDING
CAPITAL STOCK OF THE COMPANY; (ii) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY
OWN SHARES OF CAPITAL STOCK THAT WOULD RESULT IN THE COMPANY BEING "CLOSELY
HELD" UNDER SECTION 856(h) OF THE CODE OR OTHERWISE CAUSE THE COMPANY TO FAIL TO
QUALIFY AS A REIT; AND (iii) NO PERSON MAY TRANSFER SHARES OF COMMON STOCK IF
SUCH TRANSFER WOULD RESULT IN THE COMMON STOCK OF THE COMPANY BEING OWNED BY
FEWER THAN 100 PERSONS. ANY PERSON WHO BENEFICIALLY OR CONSTRUCTIVELY OWNS OR
ATTEMPTS TO BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK IN
VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE COMPANY. IF ANY
OF THE RESTRICTIONS ON TRANSFER OR OWNERSHIP IS VIOLATED, THE SHARES OF CAPITAL
STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO THE TRUSTEE OF A
TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN ADDITION, THE
COMPANY MAY REDEEM SHARES UPON THE TERMS AND CONDITIONS SPECIFIED BY THE BOARD
OF DIRECTORS IN ITS SOLE DISCRETION IF THE BOARD OF DIRECTORS DETERMINES THAT
OWNERSHIP OR A TRANSFER OR OTHER EVENT MAY VIOLATE THE RESTRICTIONS DESCRIBED
ABOVE. FURTHERMORE, UPON THE OCCURRENCE OF CERTAIN EVENTS, ATTEMPTED TRANSFERS
IN VIOLATION OF THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL
TERMS IN THIS LEGEND THAT ARE DEFINED IN THE ARTICLES OF AMENDMENT AND
RESTATEMENT OF THE COMPANY SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THE
ARTICLES OF AMENDMENT AND RESTATEMENT OF THE COMPANY, AS THE SAME MAY BE AMENDED
FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER AND
OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF SHARES OF CAPITAL STOCK ON
REQUEST AND WITHOUT CHARGE. REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE
SECRETARY OF THE COMPANY AT ITS PRINCIPAL OFFICE.

                                     - 50 -
<PAGE>

         D. Each Limited Partner covenants and agrees with the General Partner
that all Tendered Units shall be delivered to the General Partner free and clear
of all liens, claims and encumbrances whatsoever and should any such liens,
claims and/or encumbrances exist or arise with respect to such Tendered Units,
the General Partner shall be under no obligation to acquire the same. Each
Limited Partner further agrees that, in the event any state or local property
transfer tax is payable as a result of the transfer of its Tendered Units to the
General Partner (or its designee), such Limited Partner shall assume and pay
such transfer tax.

         E. Notwithstanding the provisions of Section 8.6.A, 8.6.B, 8.6.C or any
other provision of this Agreement, a Limited Partner (i) shall not be entitled
to effect a Redemption for cash or an exchange for REIT Shares to the extent the
ownership or right to acquire REIT Shares pursuant to such exchange by such
Partner on the Specified Redemption Date could cause such Partner or any other
Person to violate the restrictions on ownership and transfer of REIT Shares set
forth in the Charter of the Parent and (ii) shall have no rights under this
Agreement to acquire REIT Shares which would otherwise be prohibited under the
Charter. To the extent any attempted Redemption or exchange for REIT Shares
would be in violation of this Section 8.6.E, it shall be null and void ab initio
and such Limited Partner shall not acquire any rights or economic interest in
the cash otherwise payable upon such Redemption or the REIT Shares otherwise
issuable upon such exchange.

         F. Notwithstanding anything herein to the contrary (but subject to
Section 8.6.E), with respect to any Redemption or exchange for REIT Shares
pursuant to this Section 8.6: (i) all OP Units acquired by the General Partner
pursuant thereto shall automatically, and without further action required, be
converted into and deemed to be General Partner Interests comprised of the same
number and class of OP Units; (ii) without the consent of the General Partner,
each Limited Partner may not effect a Redemption for less than 1,000 OP Units
or, if the Limited Partner holds less than 1,000 OP Units, all of the OP Units
held by such Limited Partner; (iii) without the consent of the General Partner,
each Limited Partner may not effect a Redemption during the period after the
Partnership Record Date with respect to a distribution and before the record
date established by the General Partner for a distribution to its shareholders
of some or all of its portion of such distribution; (iv) the consummation of any
Redemption or exchange for REIT Shares shall be subject to the expiration or
termination of the applicable waiting period, if any, under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; and (v) each
Tendering Partner shall continue to own all OP Units subject to any Redemption
or exchange for REIT Shares, and be treated as a Limited Partner with respect to
such OP Units for all purposes of this Agreement, until such OP Units are
transferred to the General Partner and paid for or exchanged on the Specified
Redemption Date. Until a Specified Redemption Date, the Tendering Partner shall
have no rights as a shareholder of the General Partner with respect to such
Tendering Partner's OP Units.

         G. In the event that the Partnership issues additional Partnership
Interests to any Additional Limited Partner pursuant to Section 4.4, the General
Partner shall make such revisions to this Section 8.6 as it determines are
necessary to reflect the issuance of such additional Partnership Interests.

                                   ARTICLE IX

                     BOOKS, RECORDS, ACCOUNTING AND REPORTS

         Section 9.1. Records and Accounting.

         A. The General Partner shall keep or cause to be kept at the principal
office of the Partnership those records and documents required to be maintained
by the Act and other books and records deemed by the General Partner to be
appropriate with respect to the Partnership's business, including, without
limitation, all books and records necessary to provide to the Limited Partners
any information, lists and copies of documents required to be provided pursuant
to Section 8.5 or 9.3 hereof. Any records maintained by or on behalf of the
Partnership in the regular course of its business may be kept on, or be in the
form for, magnetic tape, photographs, micrographics or any other information
storage device, provided that the records so maintained are convertible into
clearly legible written form within a reasonable period of time. The books of
the Partnership shall be maintained, for financial and tax reporting purposes,
on an accrual basis in accordance with generally accepted accounting principles.

                                     - 51 -
<PAGE>

         B. The books of the Partnership shall be maintained, for financial and
tax reporting purposes, on an accrual basis in accordance with generally
accepted accounting principles, or on such other basis as the General Partner
determines to be necessary or appropriate. To the extent permitted by sound
accounting practices and principles, the Partnership and the General Partner may
operate with integrated or consolidated accounting records, operations and
principles.

         Section 9.2. Partnership Year. The Partnership Year of the Partnership
shall be the calendar year.

         Section 9.3. Reports.

         A. As soon as practicable, but in no event later than the date on which
the Parent mails its annual report to its stockholders, the General Partner
shall cause to be mailed to the Limited Partner an annual report, as of the
close of the most recently ended Fiscal Year, containing financial statements of
the Partnership, or of the Parent if such statements are prepared solely on a
consolidated basis with the Partnership, for such Partnership Year, presented in
accordance with generally accepted accounting principles, such statements to be
audited by a nationally recognized firm of independent public accountants
selected by the Parent.

         B. If and to the extent that the Parent mails quarterly reports to its
stockholders, as soon as practicable, but in no event later than the date on
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 such fiscal quarter, of the Partnership, or of the Parent if such
statements are prepared solely on a consolidated basis with the Partnership, and
such other information as may be required by applicable law or regulations, or
as the Parent determines to be appropriate.

                                   ARTICLE X

                                   TAX MATTERS

         Section 10.1. Preparation of Tax Returns. The General Partner shall
arrange for the preparation and timely filing of all returns with respect to
Partnership income, gains, deductions, losses and other items required of the
Partnership for federal and state income tax purposes and shall use all
reasonable effort to furnish, within 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. The Limited Partners shall promptly provide
the General Partner with such information relating to the Contributed
Properties, including tax basis and other relevant information, as may be
reasonably requested by the General Partner from time to time.

         Section 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, including, but not limited to,
the election under Code Section 754 and the election to use the "recurring item"
method of accounting provided under Code Section 461(h) with respect to property
taxes imposed on the Partnership's Properties; provided, however, that, if the
"recurring item" method of accounting is elected with respect to such property
taxes, the Partnership shall pay the applicable property taxes prior to the date
provided in Code Section 461(h) for purposes of determining economic
performance. The General Partner shall have the right to seek to revoke any such
election (including, without limitation, any election under Code Sections 461(h)
and 754) upon the General Partner's determination in its sole and absolute
discretion that such revocation is in the best interests of the Partners.

                                     - 52 -
<PAGE>

         Section 10.3. Tax Matters Partner.

         A. The General Partner shall be the "tax matters partner" of the
Partnership for federal income tax purposes. 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 in
addition to any reimbursement pursuant to Section 7.4 hereof. 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.

         B. The tax matters partner is authorized, but not required:

                  (i) to enter into any settlement with the IRS 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 (i) who (within the time prescribed pursuant to the Code and
         Regulations) files a statement with the IRS providing that the tax
         matters partner shall not have the authority to enter into a settlement
         agreement on behalf of such Partner or (ii) who is a "notice partner"
         (as defined in Code Section 6231) or a member of a "notice group" (as
         defined in Code Section 6223(b)(2));

                  (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 United States Tax Court or the United States Claims Court, or
         the filing of a complaint for refund with the District Court of the
         United States for the district in which the Partnership's principal
         place of business is located;

                  (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 IRS at any time and, if any part of such request is not allowed by
         the IRS, to file an appropriate pleading (petition or complaint) for
         judicial review with respect to such request;

                  (v) to enter into an agreement with the IRS to extend the
         period for assessing any tax that is attributable to any item required
         to be taken into account 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 in
         connection with any tax audit or judicial review proceeding to the
         extent permitted by applicable law or regulations.

                                     - 53 -
<PAGE>

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 7.7 hereof shall be fully applicable to the tax matters partner in
its capacity as such.

         C. 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) 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.

         Section 10.4. Withholding. 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 Code Sections 1441, 1442,
1445 or 1446. 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 15 days after notice from the
General Partner that such payment must be made unless (i) the Partnership
withholds such payment from a distribution that 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 that would, but for such payment, be distributed to the Limited
Partner. 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 10.4. In the event that
a Limited Partner fails to pay any amounts owed to the Partnership pursuant to
this Section 10.4 when due, 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
(including, without limitation, the right to receive distributions). Any amounts
payable by a Limited Partner hereunder shall bear interest at 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 percentage
points (but not higher than the maximum lawful rate) from the date such amount
is due (i.e., 15 days after demand) until such amount is paid in full. 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.

         Section 10.5. Organizational Expenses. The Partnership shall elect to
amortize expenses, if any, incurred by it in organizing the Partnership ratably
over a 60-month period as provided in Code Section 709.

                                   ARTICLE XI

                            TRANSFERS AND WITHDRAWALS

         Section 11.1. Transfer.

         A. No part of the interest of a Partner shall be subject to the claims
of any creditor, to any spouse for alimony or support, or to legal process, and
may not be voluntarily or involuntarily alienated or encumbered except as may be
specifically provided for in this Agreement.

                                     - 54 -
<PAGE>

         B. No Partnership Interest shall be Transferred, in whole or in part,
except in accordance with the terms and conditions set forth in this Article XI.
Any Transfer or purported Transfer of a Partnership Interest not made in
accordance with this Article XI shall be null and void ab initio unless
consented to by the General Partner in its sole and absolute discretion.

         C. Notwithstanding the other provisions of this Article XI (other than
Section 11.6.D hereof), the Partnership Interests of the General Partner may be
Transferred, at any time or from time to time, to any Person that is, at the
time of such Transfer, the Parent or any successor thereto or a Qualified REIT
Subsidiary. Any transferee of the entire General Partner Interest pursuant to
this Section 11.1.C shall automatically become, without further action or
Consent of any Limited Partners, the sole general partner of the Partnership,
subject to all the rights, privileges, duties and obligations under this
Agreement and the Act relating to a general partner. Upon any Transfer permitted
by this Section 11.1.C, the transferor Partner shall be relieved of all its
obligations under this Agreement. The provisions of Section 11.2.B (other than
the last sentence thereof), 11.3 and 11.4 hereof shall not apply to any Transfer
permitted by this Section 11.1.C.

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

         Section 11.2. Transfer of General Partner's Partnership Interest.

         A. The General Partner may not Transfer any of its General Partner
Interest or withdraw from the Partnership except as provided in Sections 11.1.C,
11.2.B and 11.2.C hereof.

         B. Except as set forth in Section 11.1.C above and Section 11.2.C
below, the General Partner shall not withdraw from the Partnership and shall not
Transfer all or any portion of its interest in the Partnership (whether by sale,
disposition, statutory merger or consolidation, liquidation or otherwise)
without the Consent of a Majority in Interest of the Outside Limited Partners,
which Consent may be given or withheld in the sole and absolute discretion of
such Limited Partners. Upon any Transfer of such a Partnership Interest pursuant
to the Consent of a Majority in Interest of the Outside Limited Partners and
otherwise in accordance with the provisions of this Section 11.2.B, the
transferee shall become a successor General Partner for all purposes herein, and
shall be vested with the powers and rights of the transferor General Partner,
and shall be liable for all obligations and responsible for all duties of the
General Partner, once such transferee has executed such instruments as may be
necessary to effectuate such admission and to confirm the agreement of such
transferee to be bound by all the terms and provisions of this Agreement with
respect to the Partnership Interest so acquired. It is a condition to any
Transfer otherwise permitted hereunder that the transferee assumes, by operation
of law or express agreement, all of the obligations of the transferor General
Partner under this Agreement with respect to such Transferred Partnership
Interest, and such Transfer shall relieve the transferor General Partner of its
obligations under this Agreement without the Consent of a Majority in Interest
of the Outside Limited Partners. In the event that the General Partner withdraws
from the Partnership, in violation of this Agreement or otherwise, or otherwise
dissolves or terminates, or upon the Incapacity of the General Partner, all of
the remaining Partners may elect to continue the Partnership business by
selecting a successor General Partner in accordance with the Act.

                                     - 55 -
<PAGE>

         C. Notwithstanding Section 11.2.B, the General Partner may Transfer its
Interest in connection with any merger or sale of all or substantially all of
the assets of the Parent.

         Section 11.3. Transfer of Limited Partners' Partnership Interests.

         A. No Limited Partner shall Transfer all or any portion of its
Partnership Interest to any transferee without the consent of the General
Partner, which consent may be withheld in its sole and absolute discretion.

         B. Notwithstanding any other provision of this Article XI (other than
Section 11.6.D hereof), the Partnership Interests of the Parent Limited Partner
may be Transferred in whole or in part, at any time and from time to time to any
Person that is, at the time of such Transfer, the Parent or any successor
thereto or any Qualified REIT Subsidiary.

         C. Without limiting the generality of Section 11.3.A hereof, it is
expressly understood and agreed that the General Partner will not consent to any
Transfer of all or any portion of any Partnership Interest pursuant to Section
11.3.A above unless such Transfer meets each of the following conditions:

                  (i) Such Transfer is made only to a single Qualified
         Transferee; provided, however, that, for such purposes, all Qualified
         Transferees that are Affiliates, or that comprise investment accounts
         or funds managed by a single Qualified Transferee and its Affiliates,
         shall be considered together to be a single Qualified Transferee.

                  (ii) The transferee in such Transfer assumes by operation of
         law or express agreement all of the obligations of the transferor
         Limited Partner under this Agreement with respect to such Transferred
         Partnership Interest; provided, that no such Transfer (unless made
         pursuant to a statutory merger or consolidation wherein all obligations
         and liabilities of the transferor Partner are assumed by a successor
         corporation by operation of law) shall relieve the transferor Partner
         of its obligations under this Agreement without the approval of the
         General Partner, in its sole and absolute discretion. Notwithstanding
         the foregoing, any transferee of any Transferred Partnership Interest
         shall be subject to any and all ownership limitations contained in the
         Charter that may limit or restrict such transferee's ability to
         exercise its Redemption rights, including, without limitation, the
         Ownership Limit. Any transferee, whether or not admitted as a
         Substituted Limited Partner, shall take subject to the obligations of
         the transferor hereunder. Unless admitted as a Substituted Limited
         Partner, no transferee, whether by a voluntary Transfer, by operation
         of law or otherwise, shall have any rights hereunder, other than the
         rights of an Assignee as provided in Section 11.5 hereof.

                  (iii) Such Transfer is effective as of the first day of a
         fiscal quarter of the Partnership.

         D. If a Limited Partner is subject to Incapacity, the executor,
administrator, trustee, committee, guardian, conservator or receiver of such
Limited Partner's estate shall have all 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 its interest in the
Partnership. The Incapacity of a Limited Partner, in and of itself, shall not
dissolve or terminate the Partnership.

         E. In connection with any proposed Transfer of a Limited Partner
Interest, the General Partner shall have the right to receive an opinion of
counsel reasonably satisfactory to it to the effect that the proposed Transfer
may be effected without registration under the Securities Act and will not
otherwise violate any federal or state securities laws or regulations applicable
to the Partnership or the Partnership Interests Transferred.

                                     - 56 -
<PAGE>

         F. No Transfer by a Limited Partner of its Partnership Interests
(including any Redemption, any other acquisition of Partnership Units by the
Partnership or the General Partner) may be made to or by any person if (i) in
the opinion of legal counsel for the Partnership, it would result in the
Partnership being treated as an association taxable as a corporation or would
result in a termination of the Partnership under Code Section 708, (ii) in the
opinion of legal counsel for the Partnership, it would adversely affect the
ability of the Parent to continue to qualify as a REIT or would subject the
Parent to any additional taxes under Code Section 857 or Code Section 4981, or
(iii) such Transfer would be effectuated through an "established securities
market" or a "secondary market (or the substantial equivalent thereof)" within
the meaning of Code Section 7704 (provided that this clause (iii) shall not be
the basis for limiting or restricting in any manner the exercise of a Redemption
Right unless, and only to the extent 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).

         Section 11.4. Substituted Limited Partners.

         A. A transferee of the interest of a Limited Partner pursuant to a
Transfer consented to by the General Partner pursuant to Section 11.3.A may be
admitted as a Substituted Limited Partner only with the consent of the General
Partner, which consent may be given or withheld by the General Partner in its
sole and absolute discretion. The failure or refusal by the General Partner to
permit a transferee of any such interests to become a Substituted Limited
Partner shall not give rise to any cause of action against the Partnership or
the General Partner. Subject to the foregoing, an Assignee shall not be admitted
as a Substituted Limited Partner until and unless it furnishes to the General
Partner (i) evidence of acceptance, in form and substance satisfactory to the
General Partner, of all the terms, conditions and applicable obligations of this
Agreement, (ii) a counterpart signature page to this Agreement executed by such
Assignee, and (iii) such other documents and instruments as may be required or
advisable, in the sole and absolute discretion of the General Partner, to effect
such Assignee's admission as a Substituted Limited Partner.

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

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

         Section 11.5. Assignees. If the General Partner, in its sole and
absolute discretion, does not consent to the admission of any transferee of any
Partnership Interest as a Substituted Limited Partner in connection with a
transfer permitted by the General Partner pursuant to Section 11.3.A, such
transferee shall be considered an Assignee for purposes of this Agreement. An
Assignee shall be entitled to all the rights of an assignee of a limited
partnership interest under the Act, including the right to receive distributions
from the Partnership and the share of Net Income, Net Losses and other items of
income, gain, loss, deduction and credit of the Partnership attributable to the
Partnership Units assigned to such transferee and the rights to Transfer the
Partnership Units only in accordance with the provisions of this Article XI, but
shall not be deemed to be a holder of Partnership Units for any other purpose
under this Agreement, and shall not be entitled to effect a Consent or vote or
effect a Redemption with respect to such Partnership Units on any matter
presented to the Limited Partners for approval (such right to Consent or vote or
effect a Redemption, to the extent provided in this Agreement or under the Act,
fully remaining with the transferor Limited Partner). In the event that any such
transferee desires to make a further assignment of any such Partnership Units,
such transferee shall be subject to all the provisions of this Article XI to the
same extent and in the same manner as any Limited Partner desiring to make an
assignment of Partnership Units.

                                     - 57 -
<PAGE>

         Section 11.6. General Provisions.

         A. No Limited Partner may withdraw from the Partnership other than as a
result of a permitted Transfer of all of such Limited Partner's Partnership
Units in accordance with this Article XI, with respect to which the transferee
becomes a Substituted Limited Partner, or pursuant to a redemption (or
acquisition by the General Partner) of all of its Partnership Units pursuant to
a Redemption under Section 8.6 hereof and/or pursuant to any Partnership Unit
Designation.

         B. Any Limited Partner who shall Transfer all of its Partnership Units
in a Transfer (i) consented to by the General Partner pursuant to this Article
XI where such transferee was admitted as a Substituted Limited Partner, (ii)
pursuant to the exercise of its rights to effect a redemption of all of its
Partnership Units pursuant to a Redemption under Section 8.6 hereof and/or
pursuant to any Partnership Unit Designation, or (iii) to the General Partner,
whether or not pursuant to Section 8.6.B hereof, shall cease to be a Limited
Partner.

         C. If any Partnership Unit is Transferred in compliance with the
provisions of this Article XI, or is redeemed by the Partnership, or acquired by
the General Partner pursuant to Section 8.6 hereof, on any day other than the
first day of a Partnership Year, then Net Income, Net Losses, each item thereof
and all other items of income, gain, loss, deduction and credit attributable to
such Partnership Unit for such Partnership Year shall be allocated to the
transferor Partner or the Tendering Party, as the case may be, and, in the case
of a Transfer or assignment other than a Redemption, to the transferee Partner,
by taking into account their varying interests during the Partnership Year in
accordance with Code Section 706(d), using the "interim closing of the books"
method or another permissible method selected by the General Partner. Solely for
purposes of making such allocations, each of such items for the calendar month
in which a Transfer occurs shall be allocated to the transferee Partner and none
of such items for the calendar month in which a Transfer or a Redemption occurs
shall be allocated to the transferor Partner or the Tendering Party, as the case
may be, if such Transfer occurs on or before the 15th day of the month,
otherwise such items shall be allocated to the transferor. All distributions of
Available Cash attributable to such Partnership Unit with respect to which the
Partnership Record Date is before the date of such Transfer, assignment or
Redemption shall be made to the transferor Partner or the Tendering Party, as
the case may be, and, in the case of a Transfer other than a Redemption, all
distributions of Available Cash thereafter attributable to such Partnership Unit
shall be made to the transferee Partner.

                                     - 58 -
<PAGE>

         D. In no event may any Transfer or assignment of a Partnership Interest
by any Partner (including any Redemption, any acquisition of Partnership Units
by the General Partner or any other acquisition of Partnership Units by the
Partnership) be made (i) to any person or entity who lacks the legal right,
power or capacity to own a Partnership Interest; (ii) in violation of applicable
law; (iii) of any component portion of a Partnership Interest, such as the
Capital Account, or rights to distributions, separate and apart from all other
components of a Partnership Interest; (iv) in the event that such Transfer would
cause the Parent to cease to comply with the REIT Requirements; (v) if such
Transfer would, in the opinion of counsel to the Partnership or the General
Partner, cause a termination of the Partnership for federal or state income tax
purposes; (vi) if such Transfer would, in the opinion of legal counsel to the
Partnership, cause the Partnership to cease to be classified as a partnership
for federal income tax purposes; (vii) if such Transfer would cause the
Partnership to become, with respect to any employee benefit plan subject to
Title I of ERISA, a "party-in-interest" (as defined in ERISA Section 3(14)) or a
"disqualified person" (as defined in Code Section 4975(c)); (viii) without the
consent of the General Partner, to any benefit plan investor within the meaning
of Department of Labor Regulations Section 2510.3-101(f); (ix) if such Transfer
would, in the opinion of legal counsel to the Partnership or the General
Partner, cause any portion of the assets of the Partnership to constitute assets
of any employee benefit plan pursuant to Department of Labor Regulations Section
2510.3-101; (x) if such Transfer requires the registration of such Partnership
Interest pursuant to any applicable federal or state securities laws; (xi) if
such Transfer would, in the opinion of legal counsel to the Partnership or the
General Partner, adversely affect the ability of the Parent to continue to
qualify as a REIT or would subject the Parent to any additional taxes under Code
Section 857 or Code Section 4981; (xi) if such transfer would be effectuated
through an "established securities market" or a "secondary market (or the
substantial equivalent thereof)" within the meaning of Code Section 7704
(provided that this clause (xii) shall not be the basis for limiting or
restricting in any manner the exercise of a Redemption Right unless, and only to
the extent 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); (xiii) if such
Transfer would cause the Partnership to have more than 100 partners (including
as partners those persons indirectly owning an interest in the Partnership
through a partnership, limited liability company, subchapter S corporation or
grantor trust); (xiv) if such Transfer causes the Partnership (as opposed to the
Parent) to become a reporting company under the Exchange Act; or (xv) if such
Transfer subjects the Partnership to regulation under the Investment Company Act
of 1940, the Investment Advisors Act of 1940 or ERISA, each as amended.

                                  ARTICLE XII

                              ADMISSION OF PARTNERS

         Section 12.1. Admission of Successor General Partner. A successor to
all of the General Partner's General Partner Interest pursuant to Section 11.2
hereof who is proposed to be admitted as a successor General Partner shall be
admitted to the Partnership as the General Partner, effective immediately prior
to such Transfer. Any such successor shall carry on the business of the
Partnership without dissolution. In each case, the admission shall be subject to
the successor General Partner executing and delivering to the Partnership an
acceptance of all of the terms and conditions of this Agreement and such other
documents or instruments as may be required to effect the admission.

         Section 12.2. Admission of Additional Limited Partners.

         A. After the date hereof, a Person (other than an existing 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 furnishing to the General Partner (i) evidence of acceptance, in form
and substance 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 2.4 hereof, (ii) a counterpart signature page to
this Agreement executed by such Person, and (iii) such other documents or
instruments as may be required in the sole and absolute discretion of the
General Partner in order to effect such Person's admission as an Additional
Limited Partner.

         B. 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.

                                     - 59 -
<PAGE>

         C. If any Additional Limited Partner is admitted to the Partnership on
any day other than the first day of a Partnership Year, then Net Income, Net
Losses, each item thereof and all other items of income, gain, loss, deduction
and credit allocable among Partners and Assignees for such Partnership Year
shall be allocated pro rata among such Additional Limited Partner and all other
Partners and Assignees by taking into account their varying interests during the
Partnership Year in accordance with Code Section 706(d), using the "interim
closing of the books" method or another permissible method selected by the
General Partner. 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 the Partners and Assignees including
such Additional Limited Partner, in accordance with the principles described in
Section 11.6.C hereof. All distributions of Available Cash with respect to which
the Partnership Record Date is before the date of such admission shall be made
solely to Partners and Assignees other than the Additional Limited Partner, and
all distributions of Available Cash thereafter shall be made to all the Partners
and Assignees including such Additional Limited Partner.

         Section 12.3. Amendment of Agreement and Certificate of Limited
Partnership. For the admission to the Partnership of any Partner, the General
Partner shall take all steps necessary and appropriate under the Act to amend
the records of the Partnership and, if necessary, to prepare as soon as
practical an amendment of this Agreement (including an amendment of Exhibit A)
and, if required by law, shall prepare and file an amendment to the Certificate
and may for this purpose exercise the power of attorney granted pursuant to
Section 2.4 hereof.

         Section 12.4. Limit on Number of Partners. Unless otherwise permitted
by the General Partner, no Person shall be admitted to the Partnership as an
Additional Limited Partner if the effect of such admission would be to cause the
Partnership to have a number of Partners (including as Partners for this purpose
those Persons indirectly owning an interest in the Partnership through another
partnership, a limited liability company, a subchapter S corporation or a
grantor trust) that would cause the Partnership to become a reporting company
under the Exchange Act.

                                  ARTICLE XIII

                    DISSOLUTION, LIQUIDATION AND TERMINATION

         Section 13.1. Dissolution. The Partnership shall not be dissolved by
the admission of Additional Limited Partners or by the admission of a successor
General Partner in accordance with the terms of this Agreement. Upon the
withdrawal of the General Partner, any successor General Partner shall continue
the business of the Partnership without dissolution. However, the Partnership
shall dissolve, and its affairs shall be wound up, upon the first to occur of
any of the following (each a "Liquidating Event"):

         A. the expiration of its term as provided in Section 2.5;

         B. a final and non-appealable judgement is entered by a court of
competent jurisdiction ruling that the General Partner is bankrupt or insolvent,
or a final and non-appealable order for relief is entered by a court with
appropriate jurisdiction against the General Partner, in each case under any
federal or state bankruptcy or insolvency laws as now or hereafter in effect,
unless, prior to the entry of such order or judgement, a Majority in Interest of
the remaining Outside Limited Partners agree in writing, in their sole and
absolute discretion, to continue the business of the Partnership and to the
appointment, effective as of a date prior to the date of such order or
judgement, of a successor General Partner;

                                     - 60 -
<PAGE>

         C. an election to dissolve the Partnership made by the General Partner
in its sole and absolute discretion, with or without the Consent of a Majority
in Interest of the Outside Limited Partners;

         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. the Redemption (or acquisition by the General Partner) of all
Partnership Units other than Partnership Units held by the General Partner and
the Parent Limited Partner; or

         G. the Incapacity of the General Partner, unless all of the remaining
Partners in their sole and absolute discretion agree in writing to continue the
business of the Partnership and to the appointment, effective as of a date prior
to the date of such Incapacity, of a substitute General Partner.

         Section 13.2. Winding Up.

         A. Upon the occurrence of a Liquidating Event, the Partnership shall
continue solely for the purposes of winding up its affairs in an orderly manner,
liquidating its assets and satisfying the claims of its creditors and Partners.
After the occurrence of a Liquidating Event, no Partner shall take any action
that is inconsistent with, or not necessary to or appropriate for, the winding
up of the Partnership's business and affairs. The General Partner or, in the
event that there is no remaining General Partner or the General Partner has
dissolved, become bankrupt within the meaning of the Act or ceased to operate,
any Person elected by a Majority in Interest of the Outside Limited Partners
(the General Partner or such other Person being referred to herein as the
"Liquidator") shall be responsible for overseeing the winding up and dissolution
of the Partnership and shall take full account of the Partnership's liabilities
and property, and the Partnership property shall be liquidated as promptly as is
consistent with obtaining the fair value thereof, and the proceeds therefrom
(which may, to the extent determined by the General Partner, include shares of
stock in the General Partner) shall be applied and distributed in the following
order:

                  (i) First, to the satisfaction of all of the Partnership's
         debts and liabilities to creditors other than the Partners and their
         Assignees (whether by payment or the making of reasonable provision for
         payment thereof);

                  (ii) Second, to the satisfaction of all of the Partnership's
         debts and liabilities to the General Partner (whether by payment or the
         making of reasonable provision for payment thereof), including, but not
         limited to, amounts due as reimbursements under Section 7.4 hereof;

                  (iii) Third, to the satisfaction of all of the Partnership's
         debts and liabilities to the other Partners and any Assignees (whether
         by payment or the making of reasonable provision for payment thereof);
         and

                  (iv) The balance, if any, to the General Partner, the Limited
         Partners and any Assignees in accordance with their Capital Account
         balances, after giving effect to all contributions, distributions and
         allocations for all periods.

                                     - 61 -
<PAGE>

         The General Partner shall not receive any additional compensation for
any services performed pursuant to this Article XIII.

         B. Notwithstanding the provisions of Section 13.2.A hereof that require
liquidation of the assets of the Partnership, but subject to the order of
priorities set forth therein, if prior to or upon dissolution of the Partnership
the Liquidator determines that an immediate sale of part or all of the
Partnership's assets would be impractical or would cause undue loss to the
Partners, the Liquidator may, in its sole and absolute discretion, defer for a
reasonable time the liquidation of any assets except those necessary to satisfy
liabilities of the Partnership (including to those Partners as creditors) and/or
distribute to the Partners, in lieu of cash, as tenants in common and in
accordance with the provisions of Section 13.2.A hereof, undivided interests in
such Partnership assets as the Liquidator deems not suitable for liquidation.
Any such distributions in kind shall be made only if, in the good faith judgment
of the Liquidator, such distributions in kind are in the best interest of the
Partners, and shall be subject to such conditions relating to the disposition
and management of such properties as the Liquidator deems reasonable and
equitable and to any agreements governing the operation of such properties at
such time. The Liquidator shall determine the fair market value of any property
distributed in kind using such reasonable method of valuation as it may adopt.

         C. In the event that the Partnership is "liquidated" within the meaning
of Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made
pursuant to this Article XIII to the Partners and Assignees that have positive
Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2)
to the extent of, and in proportion to, positive Capital Account balances. If
any Partner has a deficit balance in its Capital Account (after giving effect to
all contributions, distributions and allocations for all taxable years,
including the year during which such liquidation occurs) (a "Capital Account
Deficit"), such Partner shall not be required to make any contribution to the
capital of the Partnership with respect to a Capital Account Deficit, if any, of
such Partner, and such Capital Account Deficit shall not be considered a debt
owed to the Partnership or any other person for any purpose whatsoever.

         D. Notwithstanding the foregoing, (i) if the General Partner has a
Capital Account Deficit, the General Partner shall contribute to the capital of
the Partnership the amount necessary to restore such Capital Account Deficit
balance to zero; (ii) if an Obligated Partner has a Capital Account Deficit,
such Obligated Partner shall be obligated to make a contribution to the
Partnership with respect to any such Capital Account Deficit balance upon a
liquidation of the Partnership or a "liquidation" of such Partner's Partnership
Interest within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) (which
term shall include a redemption by the Partnership of such Obligated Partner's
Partnership Interest upon exercise of the Redemption Right) in an amount equal
to the lesser of such Capital Account Deficit balance or such Obligated
Partner's Protected Amount; and (iii) the second sentence of Section 13.2.C
shall not apply with respect to any other Partner to the extent, but only to the
extent, that such Partner previously has agreed in writing, with the consent of
the General Partner, to undertake an express obligation to restore all or any
portion of a deficit that may exist in its Capital Account upon a liquidation of
the Partnership. Solely for purposes of determining an Obligated Partner's
Capital Account balance upon a liquidation of such Partner's Partnership
Interest, the General Partner shall redetermine the Gross Asset Value of the
Partnership's assets on such date based upon the principles set forth in the
definition of "Gross Asset Value," and shall take into account the Obligated
Partner's allocable share of any unrealized gain or unrealized loss resulting
from such adjustment in determining the Obligated Partner's Capital Account
balance. No Partner shall have any right to become an Obligated Partner, to
increase its Protected Amount, or otherwise agree to restore any portion of any
Capital Account Deficit without the express written consent of the General
Partner, in its sole and absolute discretion. The General Partner shall not have
the right to eliminate or decrease any Partner's Protected Amount without the
written consent of such Partner unless otherwise agreed to by the parties. Any
contribution required of a Partner under this Section 13.2.D shall be made on or
before the later of (i) the end of the Partnership Year in which the interest is
liquidated or (ii) the 90th day following the date of such liquidation. The
proceeds of any contribution to the Partnership made by an Obligated Partner
with respect to such Obligated Partner's Capital Account Deficit balance shall
be treated as a Capital Contribution by such Obligated Partner and the proceeds
thereof shall be treated as assets of the Partnership to be applied as set forth
in Section 13.2.A.

                                     - 62 -
<PAGE>

         E. In the sole and absolute discretion of the General Partner or the
Liquidator, a pro rata portion of the distributions that would otherwise be made
to the Partners pursuant to this Article XIII may be:

                  (i) distributed to a trust established for the benefit of the
         General Partner and the Limited Partners for the purpose of liquidating
         Partnership assets, collecting amounts owed to the Partnership, and
         paying any contingent or unforeseen liabilities or obligations of the
         Partnership or of the General Partner arising out of or in connection
         with the Partnership and/or Partnership activities. The assets of any
         such trust shall be distributed to the General Partner and the Limited
         Partners, from time to time, in the reasonable discretion of the
         General Partner or the Liquidator, in the same proportions and amounts
         as would otherwise have been distributed to the General Partner and the
         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 hereof as soon as
         practicable.

         Section 13.3. Deemed Distribution and Recontribution. Notwithstanding
any other provision of this Article XIII, in the event that the Partnership is
liquidated within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), but
no Liquidating Event has occurred, the Partnership's Property shall not be
liquidated, the Partnership's liabilities shall not be paid or discharged and
the Partnership's affairs shall not be wound up. Instead, for federal income tax
purposes the Partnership shall be deemed to have contributed all of its assets
and liabilities to a new partnership in exchange for an interest in the new
partnership; and, immediately thereafter, distributed interests in the new
partnership to the Partners in accordance with their respective Capital Accounts
in liquidation of the Partnership, and the new partnership is deemed to continue
the business of the Partnership. Nothing in this Section 13.3 shall be deemed to
have constituted any Assignee as a Substituted Limited Partner without
compliance with the provisions of Section 11.4 hereof.

         Section 13.4. Rights of Limited Partners. Except as otherwise provided
in this Agreement, (a) each Limited Partner shall look solely to the assets of
the Partnership for the return of its Capital Contribution, (b) no Limited
Partner shall have the right or power to demand or receive property other than
cash from the Partnership, and (c) no Limited Partner (other than any Limited
Partner who holds Preferred Units, to the extent specifically set forth herein
and in the applicable Partnership Unit Designation) shall have priority over any
other Limited Partner as to the return of its Capital Contributions,
distributions or allocations.

         Section 13.5. Notice of Dissolution. In the event that a Liquidating
Event occurs or an event occurs that would, but for an election or objection by
one or more Partners pursuant to Section 13.1 hereof, result in a dissolution of
the Partnership, the General Partner shall, within 30 days thereafter, provide
written notice thereof to each of the Partners and, in the General Partner's
sole and absolute discretion or as required by the Act, to all other parties
with whom the Partnership regularly conducts business (as determined in the sole
and absolute discretion of the General Partner), and the General Partner may,
or, if required by the Act, shall, publish notice thereof in a newspaper of
general circulation in each place in which the Partnership regularly conducts
business (as determined in the sole and absolute discretion of the General
Partner).

                                     - 63 -
<PAGE>

         Section 13.6. Cancellation of Certificate of Limited Partnership. Upon
the completion of the liquidation of the Partnership cash and property as
provided in Section 13.2 hereof, the Partnership shall be terminated, a
certificate of cancellation shall be filed with the State of Delaware, all
qualifications of the Partnership as a foreign limited partnership or
association in jurisdictions other than the State of Delaware shall be
cancelled, and such other actions as may be necessary to terminate the
Partnership shall be taken.

         Section 13.7. 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 between the Partners
during the period of liquidation.

                                  ARTICLE XIV

                       PROCEDURES FOR ACTIONS AND CONSENTS
                        OF PARTNERS; AMENDMENTS; MEETINGS

         Section 14.1. Procedures for Actions and Consents of Partners. The
actions requiring consent or approval of Limited Partners pursuant to this
Agreement, including Section 7.3 hereof, or otherwise pursuant to applicable
law, are subject to the procedures set forth in this Article XIV.

         Section 14.2. Amendments.

         A. Amendments to this Agreement requiring Consent of the Limited
Partners may be proposed by the General Partner. Following such proposal, the
General Partner shall submit any proposed amendment to the Limited Partners. The
General Partner shall seek the written consent of the Limited Partners on the
proposed amendment or shall call a meeting to vote thereon and to transact any
other business that the General Partner may deem appropriate. For purposes of
obtaining a written consent, the General Partner may require a response within a
reasonable specified time, but not less than 10 days, and failure to respond in
such time period shall constitute a consent that is consistent with the General
Partner's recommendation with respect to the proposal; provided, however, that
an action shall become effective at such time as requisite consents are received
even if prior to such specified time.

         B. Notwithstanding anything to the contrary in 14.2.A., the General
Partner shall have the power, without the consent of the Limited Partners, to
amend this Agreement as may be required to facilitate or implement any of the
following purposes:

                  (1) to add to the obligations of the General Partner or
         surrender any right or power granted to the General Partner or any
         Affiliate of the General Partner for the benefit of the Limited
         Partners;

                  (2) to reflect the admission, substitution, termination or
         withdrawal of any Partner in accordance with this Agreement;

                                     - 64 -
<PAGE>

                  (3) to increase or decrease a Partner's Protected Amount in
         accordance with this Agreement (which may be affected through the
         replacement of Exhibit C with an amended Exhibit C);

                  (4) to reflect a change that does not adversely affect any of
         the Limited Partners in any material respect, or to cure any ambiguity,
         correct or supplement any provision in this Agreement not inconsistent
         with law or with other provisions, or make other changes with respect
         to matters arising under this Agreement that will not be inconsistent
         with law or with the provisions of this Agreement or as may be
         expressly provided by any other provisions of this Agreement; and

                  (5) to satisfy any requirements, conditions, or guidelines
         contained in any order, directive, opinion, ruling or regulation of a
         federal, state or local agency or contained in federal, state or local
         law.

The General Partner shall notify the Limited Partners when any action under this
Section 14.2.B is taken in the next regular communication to the Limited
Partners.

         Section 14.3. Meetings of the Partners.

         A. 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
a Majority in Interest of the Outside Limited Partners. The call 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 days nor more than 30 days prior to
the date of such meeting. Partners may vote in person or by proxy at such
meeting. Whenever the vote or Consent of Partners is permitted or required under
this Agreement, such vote or Consent may be given at a meeting of Partners or
may be given in accordance with the procedure prescribed in Section 14.3.B
hereof.

         B. Any action required or permitted to be taken at a meeting of the
Partners may be taken without a meeting if a written consent setting forth the
action so taken is signed by a majority of the Percentage Interests of the
Partners (or such other percentage as is expressly required by this Agreement
for the action in question). Such consent may be in one instrument or in several
instruments, and shall have the same force and effect as a vote of a majority of
the Percentage Interests of the Partners (or such other percentage as is
expressly required by this Agreement). 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 so certified.

         C. Each Limited Partner may authorize any Person or Persons to act for
it by proxy on all matters in which a Limited Partner is entitled to
participate, including waiving notice of any meeting, or voting or participating
at a meeting. Every proxy must be signed by the Limited Partner or its
attorney-in-fact. No proxy shall be valid after the expiration of 11 months from
the date thereof unless otherwise provided in the proxy (or there is receipt of
a proxy authorizing a later date). Every proxy shall be revocable at the
pleasure of the Limited Partner executing it, such revocation to be effective
upon the Partnership's receipt of written notice of such revocation from the
Limited Partner executing such proxy. The use of proxies will be governed in the
same manner as in the case of corporations organized under the General
Corporation Law of Delaware (including Section 212 thereof).

                                     - 65 -
<PAGE>

         D. Each meeting of 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 in its sole and absolute discretion. Without limitation, meetings of
Partners may be conducted in the same manner as meetings of the General
Partner's stockholders and may be held at the same time as, and as part of, the
meetings of the General Partner's stockholders.

         E. On matters on which Limited Partners are entitled to vote, each
Limited Partner holding OP Units shall have a vote equal to the number of OP
Units held.

         F. Except as otherwise expressly provided in this Agreement, the
Consent of Holders of Partnership Interests representing a majority of the
Partnership Interests of the Limited Partners shall control.

                                   ARTICLE XV

                               GENERAL PROVISIONS

         Section 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 in person or when sent by first class United States mail or by other
means of written communication (including by telecopy, facsimile, or commercial
courier service) 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.

         Section 15.2. Titles and Captions. All article or section titles or
captions in this Agreement are for convenience only. They shall not be deemed
part of this Agreement and in no way define, limit, extend or describe the scope
or intent of any provisions hereof. Except as specifically provided otherwise,
references to "Articles" or "Sections" are to Articles and Sections of this
Agreement.

         Section 15.3. Pronouns and Plurals. Whenever the context may require,
any pronouns 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.

         Section 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.

         Section 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.

         Section 15.6. Waiver.

         A. 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.

         B. The restrictions, conditions and other limitations on the rights and
benefits of the Limited Partners contained in this Agreement, and the duties,
covenants and other requirements of performance or notice by the Limited
Partners, are for the benefit of the Partnership and, except for an obligation
to pay money to the Partnership, may be waived or relinquished by the General
Partner, in its sole and absolute discretion, on behalf of the Partnership in
one or more instances from time to time and at any time.

                                     - 66 -
<PAGE>

         Section 15.7. Counterparts. This Agreement may be executed in
counterparts, all of which together shall constitute one agreement binding on
all 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.

         Section 15.8. 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 law. In the event of a conflict
between any provision of this Agreement and any non-mandatory provision of the
Act, the provisions of this Agreement shall control and take precedence.

         Section 15.9. Entire Agreement. This Agreement contains all of the
understandings and agreements between and among the Partners with respect to the
subject matter of this Agreement and the rights, interests and obligations of
the Partners with respect to the Partnership.

         Section 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.

         Section 15.11. Limitation to Preserve REIT Status. Notwithstanding
anything else in this Agreement, to the extent that the amount paid, credited,
distributed or reimbursed by the Partnership to the Parent, the General Partner
or the Parent Limited Partner or their trustees, officers, directors, employees
or agents, whether as a reimbursement, fee, expense or indemnity (a "REIT
Payment"), would constitute gross income to the Parent for purposes of Code
Section 856(c)(2) or Code Section 856(c)(3), then, notwithstanding any other
provision of this Agreement, the amount of such REIT Payments, as selected by
the General Partner in its discretion from among items of potential
distribution, reimbursement, fees, expenses and indemnities, shall be reduced
for any Partnership Year so that the REIT Payments, as so reduced, for or with
respect to the Parent, the General Partner or the Parent Limited Partner, shall
not exceed the lesser of:

                  (i) an amount equal to the excess, if any, of (a) 4.9% of the
         Parent's total gross income (but excluding the amount of any REIT
         Payments) for the Partnership Year that is described in subsections (A)
         through (H) of Code Section 856(c)(2) over (b) the amount of gross
         income (within the meaning of Code Section 856(c)(2)) derived by the
         Parent from sources other than those described in subsections (A)
         through (H) of Code Section 856(c)(2) (but not including the amount of
         any REIT Payments); or

                  (ii) an amount equal to the excess, if any, of (a) 24% of the
         Parent's total gross income (but excluding the amount of any REIT
         Payments) for the Partnership Year that is described in subsections (A)
         through (I) of Code Section 856(c)(3) over (b) the amount of gross
         income (within the meaning of Code Section 856(c)(3)) derived by the
         Parent from sources other than those described in subsections (A)
         through (I) of Code Section 856(c)(3) (but not including the amount of
         any REIT Payments); provided, however, that REIT Payments in excess of
         the amounts set forth in clauses (i) and (ii) above may be made if the
         General Partner, as a condition precedent, obtains an opinion of tax
         counsel that the receipt of such excess amounts shall not adversely
         affect the Parent's ability to qualify as a REIT. To the extent that
         REIT Payments may not be made in a Partnership Year as a consequence of
         the limitations set forth in this Section 15.11, such REIT Payments
         shall carry over and shall be treated as arising in the following
         Partnership Year. The purpose of the limitations contained in this
         Section 15.11 is to prevent the Parent from failing to qualify as a
         REIT under the Code by reason of the Parent's share of items, including
         distributions, reimbursements, fees, expenses or indemnities,
         receivable directly or indirectly from the Partnership, and this
         Section 15.11 shall be interpreted and applied to effectuate such
         purpose.

                                     - 67 -
<PAGE>

         Section 15.12. No Partition. No Partner nor any successor-in-interest
to a Partner shall have the right while this Agreement remains in effect to have
any property of the Partnership partitioned, or to file a complaint or institute
any proceeding at law or in equity to have such property of the Partnership
partitioned, and each Partner, on behalf of itself and its successors and
assigns hereby waives any such right. It is the intention of the Partners that
the rights of the parties hereto and their successors-in-interest to Partnership
property, as among themselves, shall be governed by the terms of this Agreement,
and that the rights of the Partners and their successors-in-interest shall be
subject to the limitations and restrictions as set forth in this Agreement.

         Section 15.13. No Third-Party Rights Created Hereby. The provisions of
this Agreement are solely for the purpose of defining the interests of the
Partners, inter se; and no other person, firm or entity (i.e., a party who is
not a signatory hereto or a permitted successor to such signatory hereto) shall
have any right, power, title or interest by way of subrogation or otherwise, in
and to the rights, powers, title and provisions of this Agreement. No creditor
or other third party having dealings with the Partnership (other than as
expressly set forth herein with respect to Indemnitees) shall have the right to
enforce the right or obligation of any Partner to make Capital Contributions or
loans to the Partnership or to pursue any other right or remedy hereunder or at
law or in equity. None of the rights or obligations of the Partners herein set
forth to make Capital Contributions or loans to the Partnership shall be deemed
an asset of the Partnership for any purpose by any creditor or other third
party, nor may any such rights or obligations be sold, transferred or assigned
by the Partnership or pledged or encumbered by the Partnership to secure any
debt or other obligation of the Partnership or any of the Partners.

         Section 15.14. No Rights as Shareholders of General Partner or
Stockholders of Parent. Nothing contained in this Agreement shall be construed
as conferring upon the Holders of Partnership Units any rights whatsoever as
shareholders of the General Partner or stockholders of the Parent, including
without limitation any right to receive dividends or other distributions made to
shareholders of the General Partner or stockholders of the Parent or to vote or
to consent or receive notice as shareholders in respect of any meeting of
shareholders for the election of trustees of the General Partner or of any
meeting of the stockholders of the Parent for the election of directors or any
other matter.

         Section 15.15. Creditors. Other than as expressly set forth herein with
respect to Indemnitees, none of the provisions of this Agreement shall be for
the benefit of, or shall be enforceable by, any creditor of the Partnership.

                      [the next page is the signature page]

                                     - 68 -
<PAGE>

         IN WITNESS WHEREOF, this Amended and Restated Agreement of Limited
Partnership has been executed as of the date first written above.

                                     GENERAL PARTNER:

                                     FELDMAN HOLDINGS BUSINESS TRUST I,
                                     a Maryland business trust

                                     By: /s/ Lawrence Feldman
                                         --------------------------------------
                                         Name: Lawrence Feldman
                                         Title: President

                                     LIMITED PARTNERS:

                                     LAWRENCE FELDMAN, an individual

                                       /s/ Lawrence Feldman
                                     ------------------------------------------
                                           Lawrence Feldman

                                     JAMES BOURG, an individual

                                       /s/ James Bourg
                                     ------------------------------------------
                                           James Bourg

                                     SCOTT JENSEN, an individual

                                       /s/ Scott Jensen
                                     ------------------------------------------
                                           Scott Jensen

                                     JEFFREY ERHART, an individual

                                       /s/ Jeffrey Erhart
                                     ------------------------------------------
                                           Jeffrey Erhart

<PAGE>

                                     FELDMAN HOLDINGS BUSINESS TRUST II,
                                     a Maryland business trust

                                     By:   /s/ Lawrence Feldman
                                           ------------------------------------
                                           Name:  Lawrence Feldman
                                           Title:  President

                                     FELDMAN PARTNERS, LLC, an Arizona limited
                                     liability company

                                     By:   /s/ Lawrence Feldman
                                           ------------------------------------
                                           Name:  Lawrence Feldman
                                           Title:  Managerexv4w4

 

EXHIBIT 4.4

CANADIAN PACIFIC RAILWAY LIMITED

EMPLOYEE SHARE PURCHASE PLAN

(US)

Plan Terms and Conditions

(Amended and Restated as of August 30, 2005)

 

 

Table Of Contents

	 	 	 	 	 
	Section 1 – Definitions
	 	 	 	 
	 
	 	 	 	 
	Section 2 – Establishment of the Plan
	 	 	 	 
	 
	 	 	 	 
	Section 3 – Participation and Enrollment
	 	 	 	 
	 
	 	 	 	 
	Section 4 – Participant Contribution to the Plan
	 	 	 	 
	 
	 	 	 	 
	Section 5 – Company Contribution to the Plan
	 	 	 	 
	 
	 	 	 	 
	Section 6 – Asset Fund
	 	 	 	 
	 
	 	 	 	 
	Section 7 – Investment
	 	 	 	 
	 
	 	 	 	 
	Section 8 – Withdrawals/Sales of Shares
	 	 	 	 
	 
	 	 	 	 
	Section 9 – Termination of Participation in the Plan
	 	 	 	 
	 
	 	 	 	 
	Section 10 – Administration of the Plan
	 	 	 	 
	 
	 	 	 	 
	Section 11 – Plan Amendment and Termination
	 	 	 	 
	 
	 	 	 	 
	Section 12 – Market Fluctuation
	 	 	 	 
	 
	 	 	 	 
	Section 13 – Income Taxes
	 	 	 	 
	 
	 	 	 	 
	Section 14 – No Trading on Undisclosed Information
	 	 	 	 
	 
	 	 	 	 
	Section 15 – General Provisions
	 	 	 	 

 

 

Section 1 — Definitions

For the purpose of the Plan:

“Account” means any real or notional account held in the name of a Participant by the Plan
Administrator recording Shares purchased with Participant Contributions or Company Contributions.

“Administrative Agreement” means any agreement or agreements executed from time to time between CPR
and the Plan Administrator.

“Affiliate” means any affiliate of CPR designated by CPR for the purposes of the Plan.

“Asset Fund” means the assets of the Plan held by the Plan Administrator, consisting of Participant
Contributions, Company Contributions, the Shares and any dividends, interest, or gains derived
therefrom, as more fully set out in Section 6.

“Basic Administration Expenses”, as determined in CPR’s sole discretion, may include, but shall not
be limited to, the establishment and tracking of Accounts, payroll deductions, quarterly
statements, ancillary administration costs and any brokerage fees applicable to the purchase of
Shares.

“Board” means the Board of Directors of CPR as constituted from time to time.

“Business Day” means a day on which The New York Stock Exchange is open for business in the US.

“CPR” means Canadian Pacific Railway Limited and its majority owned subsidiaries who adopt this
Plan. Any reference herein to any action to be taken by CPR means action by or under the authority
of the Board.

“Code” means the US Internal Revenue Code as amended from time to time.

“Company Contributions” means contributions made to the Plan by CPR or an Affiliate pursuant to
Section 5.

“Continuous Service” means an uninterrupted period of continuous employment by an Eligible Employee
as determined by the rules of CPR in effect from time to time. An Eligible Employee’s Continuous
Service shall not be considered interrupted by CPR-approved leaves of absence or periods in which
an Eligible Employee is on furlough, guaranteed extra board, reserve board or is laid-off with
recall rights (until the recall period has expired).

“Eligible Bargaining Unit” means any bargaining unit representing CPR employees in the US that has
consented to participate in the Plan.

“Eligible Bargaining Unit Representative” means a full-time representative of an Eligible
Bargaining Unit on leave from CPR with the right to return to work for CPR.

“Eligible Earnings” means the regular base pay of an employee paid through the CPR or Affiliate
payroll system for the relevant period, excluding overtime, bonus, arbitraries, protection pay,
reserve board pay, sub payments and other special or one-time payments received in that period as
determined by CPR in accordance with its regular practices in effect; and means deemed earnings for
Eligible Bargaining Unit Representatives defined as a monthly amount equal to one-twelfth of the
maximum compensation on which an employer is required to pay Tier 2 taxes under Chapter 22 of the
Code as in effect during the calendar year.

“Eligible Employee” means each CPR employee in the US who:

	 	i)	 	is a regular full-time or part time non-union employee; or

 

 

	 	ii)	 	is a regular full-time, part time or seasonal employee in an Eligible
Bargaining Unit; or

	 	iii)	 	is an Eligible Bargaining Unit Representative;

	   and

	 	iv)	 	is in receipt of Eligible Earnings (except that Eligible Earnings shall not be
a requirement for enrolment during the period from the effective date of the Plan to
December 31, 2001); and

	 	v)	 	has reached the age of majority under the laws applicable to such employee; and

	 	vi)	 	is in the Continuous Service of CPR, or an Affiliate, and has been designated
as eligible to participate in the Plan and such designation has not been revoked;

	   but does not include:

	 	vii)	 	any employee in respect of whom a decision to cease employment has been made; or

	 	viii)	 	any individual whose services have been engaged by CPR on a temporary basis
and who is not eligible to participate in other CPR benefit programs (including but not
limited to consultants, casual, students or fixed term employees); or

	 	ix)	 	any employees on Severance or Separation Payments.

“Enrolment/Change Form” means the enrolment/change form in such form as may be determined by CPR
from time to time.

“Legal Representative” means executor or executrix appointed under a deceased’s will or
Court-appointed administrator or trustee of a deceased’s estate.

“Market Price” means, for purchases and sales of Shares, the prices at which Shares are purchased
or sold on the relevant day on the Stock Exchange.

“Participant” means a person who is an Eligible Employee, who has elected to participate in the
Plan and who makes contributions to the Plan from Eligible Earnings pursuant to Section 4 herein.

“Participant Contributions” means contributions made to the Plan by Participants pursuant to
Section 4 herein.

“Pay Period” means a Participant’s pay period as defined within the CPR pay system (i.e. weekly,
bi-weekly, semi-monthly, monthly, etc.).

“Plan” means this employee share purchase plan (US), as it may be amended from time to time.

“Plan Administrator” means such trust company or companies and/or other corporations appointed by
CPR from time to time to administer the Plan on behalf of CPR.

“Plan Reserve” means that portion of the Asset Fund consisting of unallocated Company
Contributions; interest earned on contributed funds; dividends payable on Unvested Shares; and
forfeited Shares or any resultant proceeds from sale of forfeited Shares, which proceeds shall be
for the benefit of CPR. Plan Reserve does not include Participant Contributions or dividends
payable on Shares purchased with Participant Contributions even if not yet formally allocated to
Participant Accounts.

“Plan Year” means the period of twelve calendar months commencing on January 1 and ending on
December 31 of each year, or such other period as may be determined by CPR with the exception that
the first Plan Year shall extend from the effective date of the Plan through December 31, 2001.

 

 

“Restricted Shares” means Shares in a Participant’s Account purchased with Participant
Contributions at any time within the previous four (4) consecutive full calendar quarters and for
which the contingent Unvested Shares purchased with Company Contributions have not vested in
accordance with Paragraph 8.4.

“Retirement” means the cessation of employment at a time when the Participant is entitled to an
immediate unreduced pension in accordance with the provisions of the Defined Benefit option of the
Canadian Pacific Railway Company Pension Plan (the “CPR Pension Plan”); and further provided that
if the Participant does not participate in the CPR Pension Plan, the Participant shall be deemed to
have retired if at the time of cessation of the Participant’s employment, the Participant would
have been entitled to an immediate unreduced pension under the provisions of the Defined Benefit
option of the CPR Pension Plan if that Participant had otherwise participated in the CPR Pension
Plan and if all of the service of that Participant with CPR (and predecessor employers with respect
to which CPR recognizes service for any purpose under a pension plan that covers that Participant)
had been deemed to constitute “Service” (as that term is defined in the CPR Pension Plan) in
respect of which all contributions had been made under the CPR Pension Plan. For Eligible
Bargaining Unit Representatives, service as a bargaining unit representative during the period of
time that the Eligible Bargaining Unit Representative is on leave from CPR with the right to return
to CPR shall be treated as Union Service under the CPR Pension Plan for purposes of determining an
Eligible Bargaining Unit Representative’s right to an unreduced pension under the Defined Benefit
option of the CPR Pension Plan.

“Shares” means CPR common shares previously issued and traded through the facilities of the Stock
Exchange. This term may also be extended to mean either Restricted Shares and/or Unvested Shares,
as applicable, for purposes of describing the purchase of such shares in accordance with the Plan.

“Stock Exchange” means The New York Stock Exchange on which the Shares are listed and posted for
trading.

“Unrestricted Shares” mean the Shares in a Participant’s Account that are not Unvested Shares or
Restricted Shares.

“Unvested Shares” means Shares in a Participant’s Account purchased with Company Contributions at
any time during the previous four (4) consecutive full calendar quarters, except in the
circumstances described in Section 9.

“US” means the United States of America.

“Withdrawal/Termination Form” means the withdrawal/termination form in such form as may be
determined by CPR from time to time.

 

 

Section 2 — Establishment of the Plan

2.1 Purpose

The purpose of this Plan is to provide Eligible Employees with an opportunity to participate in the
ownership of CPR on an on-going basis through purchases of Shares.

2.2 Effective date of the Plan

The Plan shall become effective on October 1, 2001 or on such other date as CPR may determine,
subject to the satisfaction of all securities, regulatory or other relevant legal requirements in
any jurisdiction in which the Plan is to be effective.

2.3 Government Regulations

The terms and conditions of this Plan, including the acquisition, sale and delivery of Shares, are
subject to compliance with all applicable laws, regulatory requirements and approvals.

Section 3 — Participation and Enrolment

Eligible Employees may elect to enrol as Participants in the Plan in any calendar month in which
they are eligible. To enrol, the Eligible Employee must complete and deliver to the Plan
Administrator an Enrolment/Change Form. Enrolment in the Plan will be effected as soon as
practicable once the completed Enrolment/Change Form is received and processed by both the Plan
Administrator and CPR. Delivery of a duly executed Enrolment/Change Form shall constitute
acceptance by the Eligible Employee of all the terms and conditions of the Plan as set forth herein
and of any regulations adopted or to be adopted pursuant to Section 11 herein.

The Plan Administrator will send a written letter of confirmation of enrolment to the Participant
where applicable as soon as practicable.

Participation in the Plan is voluntary. CPR is not making any representations or warranties as to
the value of shares at any time, nor recommending to employees as to whether or not they should
participate in the Plan. Employees considering participation in the Plan should consult their own
accountant, legal counsel or other financial advisors regarding participation in the Plan.

Section 4 — Participant Contributions to the Plan

4.1 Amount of Contributions

Participants may contribute, via payroll deductions, a percentage of their Eligible Earnings
ranging from a minimum of one per cent (1%) to a maximum of six per cent (6%) (based on whole
percentages) for investment under the Plan. The Participant shall indicate the percentage amount
of Participant Contributions on the Enrolment/Change Form.

In the event that the Eligible Earnings of a Participant vary at any time in the course of a Plan
Year, the Participant Contributions of such Participant shall be automatically adjusted accordingly
in order to remain equal to the selected percentage of the Participant’s Eligible Earnings as set
out in the Enrolment/ Change Form.

 

 

4.2 Payroll Deductions

Each Participant shall make Participant Contributions to the Plan by regularly scheduled payroll
deductions at the end of each Pay Period for the percentage indicated on the Enrolment/Change Form.
The Participant Contributions in any given Plan Year shall be made on the basis of the year of
receipt of the Eligible Earnings from which such Participant Contributions are deducted. Payroll
deductions shall commence as soon as practicable once the completed Enrolment/Change Form is
received and processed by both the Plan Administrator and CPR.

4.3 Continuing Contributions

With the exception of a Participant’s voluntary suspension of Participant Contributions as provided
for in Paragraph 4.8, Participant Contributions via payroll deductions shall continue indefinitely
while the Participant continues to receive Eligible Earnings. Should a Participant cease to
receive Eligible Earnings from time to time, payroll deductions will cease and shall resume
following the receipt of Eligible Earnings.

4.4 Union Representative Participant Contributions

In the case of Eligible Bargaining Unit Representatives where contributions via payroll deductions
are not possible, contributions may be made via post-dated checks provided to CPR, subject to the
provisions of Paragraph 4.1. Contributions by this method may be made only on a monthly basis.
Upon request, CPR shall notify Eligible Bargaining Unit Representatives of the amount of Eligible
Earnings available for determination of contribution amounts and CPR will bring all such Eligible
Bargaining Unit Representatives to the Plan Administrator’s attention.

4.5 No Retroactive Contributions

A Participant may not make retroactive Participant Contributions to the Plan, unless CPR determines
otherwise.

4.6 No Lump Sum Contributions

A Participant may not make lump sum Participant Contributions to the Plan, unless CPR determines
otherwise.

4.7 Changes to a Participant’s Contribution Level

A Participant may change contribution levels, in whole percentages, once per calendar quarter by
providing to the Plan Administrator an Enrolment/Change Form indicating the desired change no later
than two (2) weeks prior to the last day of that quarter. The change will be implemented as soon
as practicable once the completed Enrolment/Change Form is received and processed by both the Plan
Administrator and CPR at which time the Participant Contributions shall be adjusted accordingly,
provided such adjustment conforms with Paragraph 4.1.

4.8 Voluntary Suspension of Contributions

A Participant may at any time, by completing and delivering to the Plan Administrator an
Enrolment/Change Form, request that Participant Contributions be suspended. The suspension will be
implemented as soon as practicable once the completed Enrolment/Change Form is received and
processed by both the Plan Administrator and CPR. Participant Contributions shall also be suspended
during any period of time that such suspension is required in connection with a hardship withdrawal
under any pension plan of CPR qualified under section 401(a) of the Code (“Hardship Suspension”). A
Hardship Suspension shall be treated as a voluntary suspension under this Paragraph 4.8. However,
in the event of a suspension under this Paragraph 4.8, the Participant shall not be allowed to
resume making Participant

 

 

Contributions until a waiting period of six (6) consecutive months (which shall be treated as
running concurrently with any Hardship Suspension) has passed. Upon expiration of the six (6)
month waiting period the Participant will have the option of resuming Participant Contributions by
completing and delivering to the Plan Administrator a new Enrolment/Change Form. Participant
Contributions shall resume as soon as practicable once the completed Enrolment/Change Form is
received and processed by both the Plan Administrator and CPR at which time the Participant
Contributions shall be adjusted accordingly, provided such adjustment conforms with Paragraph 4.1.
If the voluntary suspension exceeds a period of four (4) consecutive full calendar quarters, CPR
shall terminate the participation in the Plan of the Participant in accordance with the provisions
of Paragraph 9.2.

4.9 Leaves of Absence

Subject to Paragraphs 4.1 and 4.3, a Participant shall continue to make Participant Contributions
during any leave of absence for which the Participant continues to receive Eligible Earnings unless
such Participant has completed and delivered to the Plan Administrator an Enrolment/Change Form
indicating a desire to suspend Participant Contributions, during the period of such absence, in
which event Paragraph 4.8 shall become applicable where appropriate and with the necessary changes.

If at any time prior to or during such leave of absence the Participant ceases to receive Eligible
Earnings the Participant Contributions of the Participant will cease and shall resume following
the receipt of Eligible Earnings. Should the cessation of contributions under this Paragraph
4.9 extend for a period exceeding four (4) consecutive full calendar quarters, the provisions of
Paragraph 9.2 shall apply.

4.10 Remittance of Participant Contributions

Participant Contributions withheld through payroll deduction by CPR and Affiliates in each Pay
Period shall be remitted by CPR and Affiliates to the Plan Administrator as soon as practicable but
not later than the fifth (5) Business Day following the date such withholding is effected.
Participant Contributions described in Paragraph 4.4 shall be remitted by CPR to the Plan
Administrator no later than the fifth (5) Business Day following the date of the post-dated check.
All Participant Contributions remitted to the Plan Administrator shall be invested solely in
Restricted Shares.

4.11 Continued Participation in Plan

During any suspension of Participant Contributions under Section 4 a Participant shall remain
eligible to receive Company Contributions earned prior to such suspension of Participant
Contributions.

Section 5 — Company Contributions to the Plan

5.1 Company Contributions

In any month during which a Participant has made Participant Contributions, CPR shall remit to the
Plan Administrator, in accordance with the provisions of Paragraph 4.10, a Company Contribution.
Such Company Contribution shall be equal to thirty-three (33) percent of the amount of any
Participant Contributions being remitted during such period. The vesting of any Shares purchased
with such Company Contributions is contingent upon holding the corresponding Restricted Shares
within the Participant Account during the vesting period in accordance with Paragraph 8.4. Actual
Company Contributions may be reduced from time to time by the value of forfeited Shares in the Plan
Reserve.

 

 

5.2 Enhanced Company Contributions

As an incentive for enrolment, all Participants who enroll in the Plan prior to December 31, 2001
will be eligible for enhanced Company Contributions of one hundred (100) percent on the first
$650.00 (USD) of Participant Contributions made to the Plan prior to December 31, 2002. Upon
receiving the maximum $650.00 (USD) of enhanced Company Contributions or for all Participant
Contributions contributed subsequent to December 31, 2002, which ever occurs first, CPR shall make
Company Contributions equal to thirty-three (33) percent of the amount of any Participant
Contributions made by the Participant, on an on-going basis as provided for in Paragraph 5.1.

5.3 Use of Funds

All Company Contributions, enhanced or otherwise, shall be invested solely in Unvested Shares.

Section 6 — Asset Fund

6.1 Assets of the Asset Fund

The Plan Administrator shall receive from CPR, or its Affiliates, the Participant Contributions of
all the Participants made in accordance with Section 4 and the Company Contributions made to the
Plan in accordance with Section 5. Participant Contributions, Company Contributions, and the
Shares acquired therewith and any dividends paid on Restricted Shares and Unrestricted Shares
thereon, from the date of receipt by the Plan Administrator, shall constitute the Asset Fund of the
Plan and shall be held, invested, managed, administered and dealt with by the Plan Administrator
pursuant to the terms of the Plan.

6.2 Allocations to Participant Accounts

The Plan Administrator shall maintain a separate Account for each Participant. The Plan
Administrator shall credit to the Account of a Participant all Company Contributions made for the
benefit of the said Participant, all Participant Contributions made by such Participant, and all
Shares acquired therewith. The Plan Administrator shall allocate either absolutely or contingently
to each Participant all capital gains realized, and capital losses sustained by the Asset Fund on
their Account at such time or times as the Plan Administrator may determine, but in any event, at
least annually. The Plan Administrator shall credit to the Plan Reserve all Unvested Shares
forfeited by Participants in accordance with Paragraph 8.5.

Section 7 — Investment

7.1 Acquisition of Restricted Shares

The Plan Administrator shall use Participant Contributions to purchase Restricted Shares, only on
the open market through the Stock Exchange.

The Plan Administrator will purchase the requisite number of Restricted Shares as soon as
practicable, as determined by the Plan Administrator, but in no circumstances less than once per
calendar month or any other such period as required by securities legislation, stock exchange
rules, or other relevant rules. The Plan Administrator will allocate the Restricted Shares to the
appropriate Participant Accounts after each purchase.

 

 

7.2 Acquisition of Unvested Shares

The Plan Administrator shall use Company Contributions to purchase Unvested Shares on the open
market through the Stock Exchange.

The Plan Administrator will purchase the requisite number of Unvested Shares as soon as
practicable, as determined by the Plan Administrator, but in no circumstances less than once per
calendar month or any other such period as required by securities legislation, Stock Exchange
rules, or other relevant rules.

7.3 Number of Shares Purchased

The maximum number of Shares that may be purchased pursuant to this Plan is 1,000,000.

The number of Restricted Shares and Unvested Shares purchased depends upon the Market Price of the
Shares at the time purchases are made and the total amount of contributed funds available for each
of the respective purchases. To the extent set forth in Section 10.6, CPR will be responsible for
the payment of all brokerage commissions or similar fees incurred in connection with such
purchases.

Notwithstanding the provisions of Paragraphs 7.1 and 7.2 and Section 8, the Plan Administrator, in
its discretion, may limit the daily volume of its purchases of Shares and sales of Shares or make
such purchases and sales over several trading days to the extent that such action is deemed by it
to be in the best interests of Participants. Should the purchase or sale of Shares by the Plan
Administrator in any given month be at various prices, the Plan Administrator shall establish an
average weighted purchase or sale price, as the case may be, applicable for each Share in the
relevant month.

7.4 Registration of Shares

At the time of purchase all Participants shall acquire beneficial ownership of all Restricted
Shares and of any fractional interest in Restricted Shares acquired for their Account.
Notwithstanding any other provisions of this Plan, no fractional common share certificates will be
issued.

All Shares purchased by the Plan Administrator on behalf of a Participant pursuant to this Plan
shall be registered in the name of the Plan Administrator, on behalf of such Participant. Provided
Unvested Shares have not been forfeited pursuant to Paragraph 8.5 and are governed by the
provisions of the Plan, they shall be held by the Plan Administrator on behalf of Participants.
All rights and privileges, however, with respect to Shares, including voting rights, shall be
exercised by Participants through the Plan Administrator, and any dividends shall be credited to
Participant Accounts.

7.5 Allocation of Restricted Shares

Allocations of Restricted Shares shall be made to each Participant’s Account in proportion to the
contributions received in respect of such Participant. Allocations shall be made in whole and
fractional Shares. Restricted Shares purchased with Participant Contributions shall be held for
the Account of Participants. Participants shall not be allowed under any circumstance to withdraw
a fraction of a Share. The value of any such fractional Share will be paid in cash.

7.6 Dividends

In the event a cash dividend is paid to holders of Shares, the net amount of such cash dividend
attributable to Shares allocated to Plan Accounts, excluding any Unvested Shares, shall be applied
to purchase Unrestricted Shares for the benefit of Participants. The net amount of the cash
dividend that is available for the purchase of Shares shall be determined after deduction from the
gross amount of the cash dividend of such amount of income and employment tax (if any) as is
required to be withheld in accordance with applicable law (including foreign law) to the extent
applicable to the Participant in question.

 

 

Each Participant shall receive quarterly confirmation from the Plan Administrator, which will
include all changes, if any, in the amount of common shares held for the Participant’s Account.

7.7 Interest

All Participant Contributions and Company Contributions remitted to the Plan Administrator shall,
prior to the acquisition of either Restricted Shares or Unvested Shares, earn interest. Any such
interest earned on contributions between the time of receipt, by the Plan Administrator, and their
subsequent investment in Shares shall be applied to offset Basic Administration Expenses, to the
extent possible, in accordance with all applicable laws and regulations.

7.8 Shares acquired at end of Plan Year

Where Participant Contributions and/or purchases are made in respect of a Plan Year, but are not
settled until after the end of that Plan Year, such Shares will be reflected in the new Plan Year.

Section 8 — Withdrawals/Sales of Shares

8.1 Sale of Shares

Upon completion and delivery to the Plan Administrator of a completed Withdrawal/Termination Form,
a Participant may direct the Plan Administrator to sell some or all of the Unrestricted or
Restricted Shares in their Account. Upon such sale the Plan Administrator shall pay to the
Participant an amount equal to the net proceeds from the sale of such Shares. Any fees applicable
to the sale of Shares shall be paid by Participants and withheld from settlement of the sale by the
Plan Administrator.

For the purpose of the Plan, a Participant shall be deemed to sell all Unrestricted Shares in the
Account prior to the sale of Restricted Shares in the Account. For purposes of the Plan,
Restricted Shares shall be deemed to be sold on a “first in, first out” basis for purposes of
determining forfeiture of Unvested Shares in accordance with Paragraph 8.5.

The price of fractional Shares will be the same as the price of whole Shares. Fractional Shares
may only be sold by a Participant upon termination of participation in the Plan.

8.2 Withdrawal of Shares

Upon completion and delivery to the Plan Administrator of a completed Withdrawal/Termination Form,
a Participant may direct the Plan Administrator to withdraw some or all of the Unrestricted and/or
Restricted Shares in the Account. Upon such withdrawal, the Plan Administrator shall transfer
title and deliver to the Participant those Shares that have been withdrawn at the Participant’s
direction. Any fees applicable to the withdrawal of Shares shall be payable by the Participant and
withheld from settlement by the Plan Administrator.

For the purpose of the Plan, a Participant shall be deemed to withdraw the Unrestricted Shares in
the Account prior to the withdrawal of Restricted Shares in the Account. For purposes of the Plan,
Restricted Shares shall be deemed to be withdrawn on a “first in, first out” basis for purposes of
determining forfeiture of Unvested Shares in accordance with Paragraph 8.5.

The price of fractional Shares will be the same as the price of whole Shares. Fractional Shares
may only be withdrawn by a Participant upon termination of participation in the Plan.

 

 

8.3 Restriction on Sale and Withdrawal

A Participant may not direct the Plan Administrator to sell or withdraw any Unvested Shares. In
the event a Participant sells or withdraws any Restricted Shares, the Participant shall forfeit all
Unvested Shares contingent on such Restricted Shares in accordance with Paragraph 8.5.

Should a Participant make more than one (1) transaction being either a sale or withdrawal during a
Plan Year such Participant shall be suspended from contributing to the Plan for a period of six (6)
consecutive months from the date of such transaction. The Participant shall have the option of
resuming Participant Contributions in accordance with the provisions of Paragraph 4.8 as if the
suspension were deemed to be a voluntary suspension.

8.4 Vesting of Unvested Shares

All Unvested Shares shall immediately vest to become Unrestricted Shares on the first day of the
calendar quarter after a holding period of four (4) consecutive full calendar quarters has passed
subsequent to their purchase provided that the corresponding Restricted Shares upon which the
Unvested Shares are contingent have, at all times during this period, been held for the Account of
the Participant. Upon vesting of Unvested Shares all Restricted Shares upon which such Unvested
Shares were contingent shall immediately become Unrestricted Shares.

8.5 Forfeiture of Unvested Shares

In the event a Participant chooses to sell or withdraw any Restricted Shares, such Participant
shall forfeit all Unvested Shares contingent on such Restricted Shares and shall not be entitled to
title to, or any proceeds of, such sale. Such Unvested Shares shall be credited to the Plan
Reserve and may be utilized to satisfy future Company Contributions.

8.6 Compliance with Securities Laws

Any sale, withdrawal or other transfer of Shares pursuant to the Plan may only be made in
compliance with applicable securities laws and Stock Exchange rules.

Section 9 —Termination of Participation in the Plan

9.1 Voluntary Termination of Participation

Participants may, at their discretion, terminate their participation in the Plan at any time by
providing to the Plan Administrator a Termination/Withdrawal Form. The termination will be
implemented as soon as practicable once the completed Termination/Withdrawal Form is received and
processed by both the Plan Administrator and CPR. Upon such termination the Participant’s Account
will be closed by the Plan Administrator in accordance with the provisions of Paragraph 9.3.

9.2 Automatic Termination

The Plan Administrator shall, on behalf of CPR, terminate the participation in the Plan of any
Participant who has had nil (zero) balances or has not made any Participant Contributions for a
consecutive period exceeding four (4) consecutive full calendar quarters unless stated otherwise.
The Plan Administrator shall monitor Participants who have not made contributions for such period
and will, on behalf of CPR, terminate the participation in the Plan of such Participants. In the
event of such termination the closure of the Participant’s Account shall be handled in accordance
with the provisions of Paragraph 9.3.

Dividends received within the period as a result of Share holdings within the Account do not
qualify as contributions for the purposes of determining inactivity.

 

 

9.3 Account Closure Upon Termination

Upon the termination of a Participant’s participation in the Plan for any reason the Plan
Administrator will effect the closure of the Participant’s Account and shall either transfer and
deliver or sell all of the Unrestricted and Restricted Shares in the Participant’s Account, at the
option of the Participant, or Legal Representative in the event of death of the Participant. The
transfer and delivery of the Shares or payment of the net proceeds of sale, as the case may be,
shall be effected as soon as practicable but in no event later than thirty (30) days from the date
the Plan Administrator receives notification of such termination. Any fees applicable to the
issuance of share certificates or the sale transaction will be payable by the Participant, or the
Participant’s estate in the event of death of the Participant and shall be withheld from settlement
by the Plan Administrator.

If the Participant or Legal Representative fails to make an election, or if no Legal Representative
comes forward to CPR, within ninety (90) calendar days of the termination of the Participant’s
participation in the Plan, the Plan Administrator shall issue a share certificate for all whole
Shares recorded in such Account, plus a cash payment equal to the value of any fraction of a Share.
The Plan Administrator shall send the share certificate and any cash payment to the last known
address of such Participant or Legal Representative, as the case may be.

The Participant shall not be entitled to title to, or proceeds of, sale of their Unvested Shares.
Such Shares shall be credited to the Plan Reserve and may be utilized to satisfy future Company
Contributions.

In the event of a transfer and delivery of Shares, the Plan Administrator will issue a share
certificate for all whole Shares recorded in a Participant’s Account, plus a cash payment equal to
the value of any fraction of a Share as determined in accordance with the provisions of Paragraph
8.2.

The Plan Administrator shall send a written letter of confirmation of termination from the Plan to
the Participant where applicable as soon as practicable.

9.4 Rejoining the Plan

Any former Participant who chooses to re-join the Plan will be subject to a mandatory six (6) month
waiting period prior to re-enrolment. The Plan Administrator will keep track of such period and
will, on behalf of CPR, re-enrol any former Participant who has completed such waiting period and
submits a new Enrolment/Change Form as per Section 3. The re-enrolment of such Participant shall
be effected as soon as practicable once the completed Enrolment/Change Form is received and
processed by both the Plan Administrator and CPR.

9.5 Resignation or Termination for Cause

In the event that the employment of a Participant is terminated for cause or a Participant resigns,
such Participant’s participation in the Plan shall be terminated on the termination or resignation
date, as the case may be. Upon notification of a termination or resignation the Plan Administrator
shall effect the closure of the Participant’s Account in accordance with Paragraph 9.3.

 

 

9.6 Termination in other circumstances

In the event of the death, Retirement or involuntary termination without cause of a Participant,
such Participant’s participation in the Plan will be terminated effective on the date of death or
the date of termination, as the case may be. Upon notification of such termination the Plan
Administrator shall effect the closure of the Participant’s Account in accordance with Paragraph
9.3 with the exception that all Unvested Shares shall vest immediately and all proceeds or title
shall accrue to the benefit of the Participant.

9.7 Company Contributions Upon Certain Terminations

In the event of the death, Retirement, or involuntary termination without cause of a Participant,
CPR or the relevant Affiliate shall, not later than thirty (30) days following receipt of
satisfactory evidence of death, Retirement, or involuntary termination without cause remit to the
Plan Administrator for the benefit of such Participant, any outstanding Company Contribution in
accordance with Sections 5 and 8 and any such Company Contributions previously remitted, but not
yet allocated for the benefit of the Participant, shall be immediately so allocated.

Section 10 — Administration of the Plan

10.1 Responsibility for Administration

CPR will be responsible for the administration of the Plan and for the interpretation of its
provisions. Where any reference in the Plan is made to any action to be taken, consent, approval
or opinion to be given, direction or decision to be exercised or made by CPR, it shall be read as
Canadian Pacific Railway Limited acting directly or through its subsidiaries and through their
authorized officers or any other person authorized by the Board, where required for the purposes of
the Plan.

10.2 Maintenance of Records

The Plan Administrator will maintain records of the Plan Accounts held in the name of each
Participant and all transactions with respect to such Plan Accounts, including a record of whole
and fractional Shares allocated, the dates of allocation and the price at which such allocations
are made and shall hold, for a period mutually agreed upon by CPR and the Plan Administrator, all
forms of authorization and designation, as specified by CPR from time to time, submitted by CPR
employees.

10.3 Appointment of Plan Administrator

CPR shall appoint (and by their participation in the Plan, Participants authorize CPR to appoint)
one or more Plan Administrators to perform such functions as may be specified in the Administrative
Agreement(s). Any reference in the Plan to the purchase or sale of Shares by the Plan
Administrator shall be read to include the purchase or sale of Shares effected through such
broker(s) or agent(s) as may be appointed by the Plan Administrator from time to time.

10.4 Rules and Procedure

CPR may from time to time adopt rules and procedures in respect of the administration of the Plan,
provided that all such rules and procedures shall be consistent with the provisions of the Plan as
in effect from time to time. Such rules and procedures may vary for different employees. The rules
and procedures shall be binding on all Participants and Eligible Employees in respect of whom such
rules and procedures are applicable.

 

 

10.5 Delegation of Administrative Responsibilities

CPR may delegate to third parties, including the Plan Administrator, the whole or any part of the
administration of the Plan and shall determine the scope of such delegation in its sole discretion.
Any decision taken by CPR or its delegate in carrying out responsibilities with respect to the
administration of the Plan, including the interpretation or application of any rules or procedures
adopted, pursuant to Paragraph 11.1, shall be final and binding on the Participants and their
beneficiaries.

10.6 Costs and Expenses

CPR shall pay net Basic Administration Expenses in connection with the operation of the Plan as
determined by CPR. Basic Administration Expenses shall be reduced, to the extent possible, by any
dividends on Unvested Shares and the amount of any interest earned on contributed funds, prior to
their investment in Shares, in accordance with Paragraph 7.7. All fees exclusive of Basic
Administration Expenses, including, without limitation, any brokerage or other charges in
connection with the sale of Shares, issuance of share certificates or transfer of Shares shall be
payable by the Participant in accordance with Section 8. Any fees charged in connection with the
Participant’s use of the Plan Administrator’s service call center shall be payable by the
Participant.

10.7 Participant Statements

Each Participant shall receive from the Plan Administrator a statement at the end of each calendar
quarter (or such other times as may be determined by CPR), which statement shall contain such
information in respect of such Participant’s Plan Accounts as CPR may determine from time to time
or as otherwise may be required by law (including foreign law) to the extent applicable to the
Participant in question. Notwithstanding the above, the Plan Administrator will provide only one
statement of account for the 2001 Plan Year.

Should a Participant request an up-to-date statement of account, such statement may be made
available at such other time as may be agreed upon between CPR and the Plan Administrator.

10.8 Reports and Voting Rights

The Plan Administrator shall furnish or cause to be furnished to each Participant who has Shares
allocated in any Plan Account a copy of all notices sent to shareholders in respect of shareholder
meetings at which the Shares are entitled to be voted and shall request from each such Participant
instructions as to the voting at such meeting of the aggregate number of the Participant’s whole
Shares allocated to the Participant’s Account on the record date of such meeting. If the
Participant furnishes such instructions to the Plan Administrator on a timely basis, the Plan
Administrator shall vote such number of whole Shares in accordance with the instructions of the
Participant. If the Participant fails to furnish timely instructions to the Plan Administrator,
the Plan Administrator shall not vote the Participant’s whole Shares. The Plan Administrator shall
not vote any fractional Shares allocated to Participant’s Plan Accounts and shall not vote any
Shares not allocated to Participant Accounts as of the record date. The Plan Administrator shall
keep confidential the voting instructions of the Participants and shall not disclose the same to
CPR except to the extent required by law.

Section 11 — Plan Amendment and Termination

11.1 Plan Amendment

CPR reserves the right to amend the Plan, in whole or in part, at any time at its discretion
without the consent of Participants, provided that no such amendment shall have the effect of
reducing any benefits accrued to any Participant as of the date of amendment.

 

 

11.2 Plan Termination

CPR reserves the right to terminate the Plan at any time, in which event Participants’ rights will
be governed by Paragraph 9.6 as if the Participants’ Retirements had all occurred on the date of
the termination of the Plan. Any amount remaining in the Plan Reserve after the Participants have
been allocated the amounts required pursuant to Paragraph 9.6 shall revert to CPR.

11.3 Plan Administrator Duties

No amendment, change, or modification shall be made to the Plan that will alter the duties of the
Plan Administrator, without CPR’s and the Plan Administrator’s written consents.

11.4 The Plan Administrator

CPR, as agent for each Participant, may at any time remove the Plan Administrator and appoint a
successor or successors to fill any vacancy arising for any reason whatever.

The Plan Administrator may, with CPR’s written approval, delegate to any corporation authorized to
carry on the business of a trust company in Canada, or the US, the duty to maintain records and to
furnish statements in connection with all aspects of the Plan.

The Plan Administrator shall be indemnified and held harmless by CPR against and from any and all
loss, cost, liability or expense resulting from any claim, action, suit or proceeding to which it
may be a party or in which it may be involved by reason of any action taken or failure to act under
the Plan and against and from any and all amounts paid by it in any settlement thereof (with CPR’s
written approval) or paid by it in satisfaction of a judgment in any such action, suit or
proceeding against it. The Plan Administrator shall in writing give CPR a reasonable opportunity,
at CPR’s expense, to handle and defend such action within a time frame to be specified by the Plan
Administrator, before the Plan Administrator undertakes to handle and defend such claim, action,
suit or proceeding on its own behalf. CPR and the Participants shall be indemnified and held
harmless by the Plan Administrator against and from any and all loss, cost, liability or expense
resulting from the willful misconduct, negligence or bad faith of the Plan Administrator or of any
person (other than CPR) to which the Plan Administrator has delegated any of its duties hereunder.

Section 12 — Market Fluctuation

CPR makes no representations or warranties to Participants with respect to the Plan or the Shares
whatsoever. CPR shall not indemnify any Participant under the Plan against loss resulting from
fluctuations in the price of Shares. Participants are expressly advised that all Participant
Contributions and Company Contributions will be invested in Shares and the value of any
Participant’s Shares in the Plan will fluctuate as the trading price of the Shares fluctuates.

In seeking the benefits of participation in the Plan, a Participant solely accepts the risk of a
decline in the market price of Shares in the Participant’s Account.

 

 

Section 13 — Income Taxes

CPR and Participants acknowledge that sale of Shares by a Participant may result in income tax
consequences including, without limitation, a taxable capital gain, or an allowable capital loss to
the Participant under US tax law.

Participants shall be responsible to pay any and all income taxes resulting from participation in
the Plan or the sale of Shares, including without limitation:

a) taxes from a capital gain;

b) taxes from the payment and receipt of dividends;

c) taxes from Company Contributions or the payment by CPR of brokerage or other fees where
deemed under applicable law to be a taxable benefit to the Participant.

CPR shall have the right to withhold from any payment, including any payment of Eligible Earnings
or other earnings, sufficient amounts to cover required withholding and income or employment taxes
with respect to the Plan. If a Participant, including an Eligible Bargaining Unit Representative,
does not have sufficient earnings available from which CPR can make any required withholdings, CPR
may condition the allocation of Unvested Shares to the Account of the Participant on the receipt of
the amount required for CPR to meet its withholding obligations, or may instruct the Plan
Administrator to reduce the amount otherwise allocated to the Participant (or sell Shares allocated
to the Participant on behalf of the Participant) and remit to CPR the amount required to meet CPR’s
withholding obligation (and any balance to the Participant). The provisions of Paragraphs 8.1 and
8.3 shall govern any sale of Shares pursuant to this Section.

Participants are expressly advised that US and Canadian tax laws are complex and subject to change
and each Participant is solely responsible to contact his or her own accountant, legal
representative or qualified financial advisor to determine what current effect any applicable tax
legislation may have with respect to his or her participation in the Plan or the sale of Shares and
to determine any tax consequences.

The Plan Administrator will provide all Participants with all appropriate tax forms and receipts.

Section 14 — No Trading on Undisclosed Information

No Participant shall in any manner participate in the trading of Shares based upon insider or
undisclosed material corporate information as prohibited by law. Any trading based on undisclosed
material information by Participants may be subject to prosecution and may result in discipline by
CPR up to and including termination of a Participant’s employment with CPR. Participants should
consult the Insider Trading Policy of CPR available from CPR.

Section 15 — General Provisions

15.1 No Additional Rights to Employment

	(a)	 	The opportunity to participate in this Plan does not constitute a contract of employment, nor
does the existence of a contract of employment between any person and CPR give such person any
right or entitlement to participate in the Plan or any expectation that an opportunity to
participate in the Plan will be offered to the person subject to any conditions or at all.

	 
	(b)	 	The rights and obligations of a Participant under the terms of any contract of employment
with CPR shall not be affected by participation in this Plan.

	 
	(c)	 	The opportunity to acquire Shares pursuant to the Plan shall not afford a Participant or any
Eligible Employee any rights or additional rights to compensation or damages in consequence of
the loss or

 

 

	 	 	termination of the Participant’s office or employment with CPR
for any reason whatsoever.

	 
	(d)	 	A Participant shall not be entitled to any compensation for damages for any loss or potential
loss which they may suffer by reason of being or becoming unable to acquire Shares under the
Plan in consequence of the loss or termination of his or her office or employment with CPR for
any reason (including, without limitation, any breach of contract by CPR) or in any other
circumstances whatsoever.

15.2 Employee Eligibility

CPR reserves the right to restrict participation in the Plan to any employee or employee groups at
any time in its sole discretion, including, but not limited to, the right to refuse to offer
employees or employee groups the opportunity to participate in the Plan in any jurisdiction where
operating the Plan in such jurisdiction or in respect of such employees is or becomes onerous
(including, without limitation, having regard to the costs involved), impossible, illegal or
impracticable, as determined by CPR in its sole discretion.

15.3 Liability

No Participant shall make any claim or demand against CPR or the Plan Administrator and
Participants agree and acknowledge that CPR and the Plan Administrator shall not be liable with
respect to:

	(a)	 	the performance of Shares on the Stock Exchange at or during any period of time;

	 
	(b)	 	changes in the local currency value of Shares held by a Participant, where applicable,
resulting from fluctuations in the exchange rates between the US dollar and any other
currency;

	 
	(c)	 	income taxes payable in respect of the Plan, except to the extent that:

	 	(i)	 	CPR withholds any such amounts either from a Participant’s Eligible Earnings,
other earnings, or payments under the Plan; or

	 
	 	(ii)	 	CPR (but not the employee) is liable for such payment under applicable law.

15.4 Participant’s Agreement to be bound by Plan Terms

Participation in the Plan by any Participant shall be construed as acceptance by the Participant of
the terms and conditions of the Plan and all rules and procedures adopted hereunder and as amended
from time to time, and as the Participant’s agreement to be bound thereby.

15.5 Indemnification

By electing to participate in the Plan a Participant agrees to indemnify:

	(a)	 	CPR; and

	 
	(b)	 	the Plan Administrator; and

 

 

	(c)	 	any other person who is or becomes liable to account for tax, social security contributions or
any other regulatory or statutory contributions on behalf of the Participant against any amount
of or representing tax, or any other regulatory or statutory contributions for which CPR (or
such other person) is liable to account in respect of or in consequence of the facilitation of
Participant Contributions, for the benefit of such Participant and which (as between the
Participant and CPR or such other person) is the liability of the Participant but which CPR or
such other person cannot otherwise lawfully recover from the Participant (whether by way of
deduction from payroll or otherwise).

15.6 Assignment Exemption from Seizure and Bankruptcy

Except as may otherwise be specifically provided by applicable law, no right of a person under the
Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge and any attempt by anyone to anticipate, alienate, sell, transfer,
assign, pledge, encumber or charge the same shall be void, and any Shares or money to which any
person is entitled under the Plan are exempt from execution, seizure and attachment. Any Shares
withdrawn from any Plan Account may only be transferred (including any transfer pursuant to
Paragraph 8.2) in accordance with applicable securities laws.

If, notwithstanding the foregoing, a Participant is deprived by applicable law of interests in
Shares or ceases to retain beneficial interest in the Shares, then all rights under the Plan will
cease forthwith and no further Shares will be allocated under the Plan to that Participant.

15.7 Share Certificates

Share certificates, if issued pursuant to any provision of the Plan, shall bear any legend that is
necessary or is deemed advisable in order to comply with applicable securities laws, including any
legends referring to restrictions on transfer in any jurisdiction.

15.8 Mental or Legal Incapacity of the Participant

If any payment is to be made under the Plan to a minor or other person who is mentally or legally
incompetent, the Plan Administrator shall pay the same to the parent or guardian or other person
having legal custody of, or being the legally appointed representative of, such person, to be
applied by such parent, guardian, person having custody or legally appointed representative for the
benefit of such person, without the Plan Administrator being further liable to see to the
application thereof and so that any such payment shall be a complete discharge of any liability
under the Plan and of CPR.

15.9 Governing Law and Compliance with Laws

The Plan shall be governed by and construed in accordance with the laws of the state of Minnesota,
US without regard to conflict of law principles, except that with respect to the issuance of
securities, the laws of the jurisdiction of CPR shall govern. Notwithstanding any provision of this
Plan, CPR shall operate the Plan in compliance with all applicable laws and regulations of all
jurisdictions where CPR has, in accordance with the terms of this Plan, decided to offer the Plan.

 

 

15.10 Discretionary Relief

Notwithstanding any other provision of the Plan, CPR may, at its discretion, waive any condition of
the Plan if specific individual circumstances warrant such waiver.

August 30, 2005

/s/ R.J. Ritchie

 
R.J. Ritchie

President and Chief Executive Officer

Canadian Pacific Railway Limited

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