Document:

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                                                                    Exhibit 10.2

                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                 WELLS TOTAL RETURN OPERATING PARTNERSHIP, L.P.

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                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                 WELLS TOTAL RETURN OPERATING PARTNERSHIP, L.P.

                                    RECITALS

         Wells Total Return Operating Partnership, L.P. (the "Partnership") was
formed as a limited partnership under the laws of the State of Delaware,
pursuant to a Certificate of Limited Partnership filed with the Office of the
Secretary of State of the State of Delaware effective as of March 29, 2007. This
Agreement of Limited Partnership (the "Agreement") is entered into this 18th day
of April, 2007 between Wells Total Return REIT, Inc., a Maryland corporation
and the Limited Partners set forth on Exhibit A hereto.

                                    AGREEMENT

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

                                    ARTICLE I
                                  DEFINED TERMS

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

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

         "Additional Funds" has the meaning set forth in Section 4.03 hereof.

         "Additional Securities" means any additional REIT Shares (other than
REIT Shares issued in connection with an exchange pursuant to Section 8.05
hereof) or rights, options, warrants or convertible or exchangeable securities
containing the right to subscribe for or purchase REIT Shares.

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

         "Affiliate" means, (i) any Person that, directly or indirectly,
controls or is controlled by or is under common control with such Person, (ii)
any other Person that

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owns, beneficially, directly or indirectly, 10% or more of the outstanding
capital stock, shares or equity interests of such Person, or (iii) any officer,
director, employee, partner or trustee of such Person or any Person controlling,
controlled by or under common control with such Person (excluding trustees and
persons serving in similar capacities who are not otherwise an Affiliate of such
Person). For the purposes of this definition, "control" (including the
correlative meanings of the terms "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, through the ownership of voting securities or
partnership interests or otherwise.

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

         "Agreement" means this Agreement of Limited Partnership.

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

         "Asset Manager" means Wells Fund Management, Inc., a Georgia
corporation.

         "Capital Account" has the meaning provided in Section 4.04 hereof.

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

         "Cash Amount" means an amount of cash per Partnership Unit equal to the
product of the REIT Shares Amount multiplied by the then current price per REIT
Share set forth in the applicable Prospectus as of the date of any Notice of
Redemption delivered by any Limited Partner to the General Partner.

         "Certificate" means any instrument or document that is required under
the laws of the State of Delaware, or any other jurisdiction in which the
Partnership conducts business, to be signed and sworn to by the Partners of the
Partnership (either by themselves or pursuant to the power-of-attorney granted
to the General Partner in Section 8.02 hereof) and filed for recording in the
appropriate public offices within the State of Delaware or such other
jurisdiction to perfect or maintain the Partnership as a limited partnership, to
effect the admission, withdrawal, or substitution of any Partner of the
Partnership, or to protect the limited liability of the Limited Partners as
limited partners under the laws of the State of Delaware or such other
jurisdiction.

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

         "Commission" means the U.S. Securities and Exchange Commission.

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

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

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         "General Partner" means Wells Total Return REIT, Inc. a Maryland
corporation, and any Person that becomes a substitute or additional General
Partner as provided herein, and any of their successors as General Partner.

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

         "Indemnitee" means (i) the General Partner or a director, officer or
employee of the General Partner or Partnership, (ii) the Asset Manager or a
director, officer or employee of the Asset Manager or another agent of the Asset
Manager if such agent is an Affiliate of the Asset Manager, and (iii) such other
Persons (including Affiliates of the General Partner, the Asset Manager or the
Partnership) as the General Partner may designate from time to time, in its sole
and absolute discretion.

         "Independent Director" means a director of the General Partner who is
not an officer or employee of the General Partner, any Affiliate of an officer
or employee or any Affiliate of (i) any lessee of any property of the General
Partner or any Subsidiary of the General Partner, (ii) any Subsidiary of the
General Partner, or (iii) any partnership that is an Affiliate of the General
Partner.

         "Limited Partner" means any Person named as a Limited Partner on
Exhibit A attached hereto, and any Person who becomes a Substitute or Additional
Limited Partner, in such Person's capacity as a Limited Partner in the
Partnership.

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

         "Liquidity Event" means the sale of all or substantially all of the
assets of the Partnership and the General Partner or the merger of the
Partnership or the General Partner with any Person other than an Affiliate
thereof or an Affiliate of the Advisor.

         "Listing" means the listing of the common stock of the Partnership or
the General Partner on a national securities exchange or automated quotation
system.

         "Loss" has the meaning provided in Section 5.01(f) hereof.

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

         "NYSE" means the New York Stock Exchange.

         "Offer" has the meaning set forth in Section 7.01(c) hereof.

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         "Offering" means the initial offer and sale by the General Partner and
the purchase by the Distributor (as defined in the Prospectus) of REIT Shares
for sale to the public.

         "OP Unitholders" means all holders of Partnership Interests other than
Special OP Unitholders who do not own Partnership Units in addition to their
Special Partnership Units.

         "Partner" means any General Partner or Limited Partner.

         "Partner Nonrecourse Debt Minimum Gain" has the meaning set forth in
Regulations Section 1.704-2(i). A Partner's share of Partner Nonrecourse Debt
Minimum Gain shall be determined in accordance with Regulations Section
1.704-2(i)(5).

         "Partnership" means Wells Total Return Operating Partnership, L.P., a
Delaware limited partnership.

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

         "Partnership Minimum Gain" is determined in accordance with Regulations
Section 1.704-2(d). A Partner's share of Partnership Minimum Gain shall be
determined in accordance with Regulations Section 1.704-2(g)(1).

         "Partnership Record Date" means the record date established by the
General Partner for the distribution of cash pursuant to Section 5.02 hereof,
which record date shall be the same as the record date established by the
General Partner for a distribution to its shareholders of some or all of its
portion of such distribution.

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

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

         "Person" means any individual, partnership, corporation, joint venture,
trust or other entity.

         "Profit" has the meaning provided in Section 5.01(f) hereof.

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         "Property" means any office or industrial property or other investment
in which the Partnership holds an ownership interest.

         "Prospectus" means the final prospectus delivered to purchasers of REIT
Shares in the Offering, and includes the amendment to the Prospectus to be filed
by the General Partner on each business day reflecting the then current price
per REIT Share.

         "Redemption Amount" means either the Cash Amount or the REIT Shares
Amount, as selected by the General Partner in its sole and absolute discretion
pursuant to Section 8.05(b) hereof.

         "Redemption Right" has the meaning provided in Section 8.05(a) hereof.

         "Redeeming Partner" has the meaning provided in Section 8.05(a) hereof.

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

         "REIT" means a real estate investment trust as defined in Sections 856
through 860 of the Code.

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

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         "REIT Share" means a share of common stock, par value $0.01 per share,
in the General Partner (or successor entity, as the case may be).

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

         "Securities Act" means the Securities Act of 1933, as amended.

         "Service" means the Internal Revenue Service.

         "Special OP Unitholders" means the holders of the Special Partnership
Units.

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

         "Special Partnership Unit" means a unit of a series of Limited
Partnership Interests, designated as Special Partnership Units, issued pursuant
to Section 4.02. The number of Special Partnership Units outstanding and the
Special Percentage Interests in the Partnership represented by such Special
Partnership Units are set forth on Exhibit A, as such Exhibit may be amended
from time to time.

         "Specified Redemption Date" has the meaning provided in Section
8.05(a).

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

         "Subsidiary Partnership" means any partnership of which the partnership
interests therein are owned by the General Partner or a wholly-owned subsidiary
of the General Partner.

         "Substitute Limited Partner" means any Person admitted to the
Partnership as a Limited Partner pursuant to Section 9.03 hereof.

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

         "Surviving General Partner" has the meaning set forth in Section
7.01(d) hereof.

         "Termination Event" means the termination of the Advisory Agreement
other than for "cause" (as defined in the Advisory Agreement).

         "Transaction" has the meaning set forth in Section 7.01(c) hereof.

         "Transfer" has the meaning set forth in Section 9.02(a) hereof.

         "Value" means, with respect to any security, the average of the daily
market price of such security for the ten consecutive trading days immediately
preceding the date of such valuation. The market price for each such trading day
shall be: (i) if security is listed or admitted to trading on any securities
exchange or the NYSE, the sale price, regular way, on such day, or if no such
sale takes place on such day, the average of the closing bid and asked prices,
regular way, on such day, (ii) if security is not listed or admitted to trading
on any securities exchange or the NYSE, the last reported sale price on such day
or, if no sale takes place on such day, the average of the closing bid and asked
prices on such day, as reported by a reliable quotation source designated by the
General Partner, or (iii) if security is not listed or admitted to trading on
any securities exchange or the NYSE and no such last reported sale price or
closing bid and asked prices are available, the average of the reported high bid
and low asked prices on such day, as reported by a reliable quotation source
designated by the General Partner, or if there shall be no bid and asked prices
on such day, the average of the high bid and low asked prices, as so reported,
on the most recent day (not more than ten days prior to the date in question)for
which prices have been so reported; provided that if there are no bid and asked
prices reported during the ten days prior to the date in question, the value of
the security shall be determined by the General Partner acting in good faith on
the basis of such quotations and other information as it considers, in its
reasonable judgment, appropriate. In the event the security includes any
additional rights, then the value of such rights shall be determined by the
General Partner acting in good faith on the basis of such quotations and other
information as it considers, in its reasonable judgment, appropriate.

                                   ARTICLE II
                    PARTNERSHIP FORMATION AND IDENTIFICATION

         2.01 Formation. The Partners hereby agree to form the Partnership
pursuant to the Act and upon the terms and conditions set forth in this
Agreement.

         2.02 Name, Office and Registered Agent. The name of the Partnership is
Wells Total Return Operating Partnership, L.P. The specified office and place of
business of the Partnership shall be 6200 The Corners Parkway, Suite 250,
Norcross, Georgia 30092. The General Partner may at any time change the location
of such office, provided the General Partner gives notice to the Partners of any
such change. The name and address of the Partnership's registered agent is The
Corporation Trust Company, Corporation Trust Center, 1209 Orange Street,
Wilmington, New Castle County, Delaware 19801.

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The sole duty of the registered agent as such is to forward to the Partnership
any notice that is served on him as registered agent.

         2.03     Partners.

         (a) The General Partner of the Partnership is Wells Total Return REIT,
Inc., a Maryland corporation. Its principal place of business is the same as
that of the Partnership.

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

         2.04     Term and Dissolution.

         (a) The Partnership shall have perpetual duration, except that the
Partnership shall be dissolved upon the first to occur of any of the following
events:

                  (i) The occurrence of an Event of Bankruptcy as to a General
         Partner or the dissolution, death, removal or withdrawal of a General
         Partner unless the business of the Partnership is continued pursuant to
         Section 7.03(b) hereof; provided that if a General Partner is on the
         date of such occurrence a partnership, the dissolution of such General
         Partner as a result of the dissolution, death, withdrawal, removal or
         Event of Bankruptcy of a partner in such partnership shall not be an
         event of dissolution of the Partnership if the business of such General
         Partner is continued by the remaining partner or partners, either alone
         or with additional partners, and such General Partner and such partners
         comply with any other applicable requirements of this Agreement;

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

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

         (b) Upon dissolution of the Partnership (unless the business of the
Partnership is continued pursuant to Section 7.03(b) hereof), the General
Partner (or its trustee, receiver, successor or legal representative) shall
amend or cancel the Certificate and liquidate the Partnership's assets and apply
and distribute the proceeds thereof in accordance with Section 5.06 hereof.
Notwithstanding the foregoing, the liquidating General Partner may either (i)
defer liquidation of, or withhold from distribution for a reasonable time, any
assets of the Partnership (including those necessary to satisfy the
Partnership's debts and obligations) or (ii) distribute the assets to the
Partners in kind.

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

         2.06 Certificates Describing Partnership Units. At the request of a
Limited Partner, the General Partner, at its option, may issue a certificate
summarizing the terms of such Limited Partner's interest in the Partnership,
including the number of Partnership Units and Special Partnership Units owned
and the Percentage Interest and the Special Partnership Interest represented by
such Partnership Units and Special Partnership Units as of the date of such
certificate. Any such certificate (i) shall be in form and substance as approved
by the General Partner, (ii) shall not be negotiable and (iii) shall bear a
legend to the following effect:

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

                                   ARTICLE III
                           BUSINESS OF THE PARTNERSHIP

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

<PAGE>

                                   ARTICLE IV
                       CAPITAL CONTRIBUTIONS AND ACCOUNTS

         4.01 Capital Contributions. The General Partner and the Limited Partner
have made capital contributions to the Partnership in exchange for the
Partnership Interests set forth opposite their names on Exhibit A, as amended
from time to time.

         4.02 Additional Capital Contributions and Issuance of Additional
Partnership Interests. Except as provided in this Section 4.02 or in Section
4.03, the Partners shall have no right or obligation to make any additional
Capital Contributions or loans to the Partnership. The General Partner may
contribute additional capital to the Partnership, from time to time, and receive
additional Partnership Interests in respect thereof, in the manner contemplated
in this Section 4.02.

         (a)      Issuances of Additional Partnership Interests.

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

                  (1)(A) the additional Partnership Interests are issued in
                  connection with an issuance of REIT Shares or other interests
                  in the General Partner, which shares or interests have
                  designations, preferences and other rights, all such that the
                  economic interests are substantially similar to the
                  designations, preferences and other rights of the additional
                  Partnership Interests issued to the General Partner by the
                  Partnership in accordance with this Section 4.02 and (B) the
                  General Partner shall make a Capital Contribution to the
                  Partnership in an amount equal to the proceeds raised in
                  connection with the issuance of such shares of stock of or
                  other interests in the General Partner;

<PAGE>

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

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

         In addition, the General Partner may acquire Partnership Interests from
other Partners pursuant to this Agreement. In the event that the Partnership
issues Partnership Interests pursuant to this Section 4.02(a), the General
Partner shall make such revisions to this Agreement (without any requirement of
receiving approval of the Limited Partners) as it deems necessary to reflect the
issuance of such additional Partnership Interests and any special rights,
powers, and duties associated therewith.

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

                  (ii) Upon Issuance of Additional Securities. The General
         Partner shall not issue any additional REIT Shares (other than REIT
         Shares issued in connection with a redemption pursuant to Section 8.05
         hereof) or rights, options, warrants or convertible or exchangeable
         securities containing the right to subscribe for or purchase REIT
         Shares (collectively, "Additional Securities") other than to all
         holders of REIT Shares, unless (A) the General Partner shall cause the
         Partnership to issue to the General Partner, as the General Partner may
         designate, Partnership Interests or rights, options, warrants or
         convertible or exchangeable securities of the Partnership having
         designations, preferences and other rights, all such that the economic
         interests are substantially similar to those of the Additional
         Securities, and (B) the General Partner contributes the net proceeds
         from the issuance of such Additional Securities and from any exercise
         of rights contained in such Additional Securities, directly and through
         the General Partner, to the Partnership; provided, however, that the
         General Partner is allowed to issue Additional Securities in connection
         with an acquisition of a property to be held directly by the General
         Partner. Without limiting the foregoing, the General Partner is
         expressly authorized to issue Additional Securities for less than fair
         market value, and to cause the Partnership to issue to the General
         Partner corresponding Partnership Interests, so long as (x) the General
         Partner concludes in good faith that such issuance is in the best
         interests of the General Partner and the Partnership, including without
         limitation, the issuance of REIT Shares and corresponding Partnership
         Units pursuant to an employee share purchase plan providing for
         employee purchases of REIT Shares at a discount from fair market value
         or employee stock options that have an exercise price that is less than
         the fair market value of the REIT Shares, either at the time of
         issuance or at the time of exercise, and (y) the General Partner
         contributes all proceeds from such issuance to the Partnership. For
         example, in the event the General Partner issues

<PAGE>

         REIT Shares for a cash purchase price and contributes all of the
         proceeds of such issuance to the Partnership as required hereunder, the
         General Partner shall be issued a number of additional Partnership
         Units equal to the product of (A) the number of such REIT Shares issued
         by the General Partner, the proceeds of which were so contributed,
         multiplied by (B) a fraction, the numerator of which is 100%, and the
         denominator of which is the Conversion Factor in effect on the date of
         such contribution.

                  (b) Certain Deemed Contributions of Proceeds of Issuance of
         REIT Shares. In connection with any and all issuances of REIT Shares,
         the General Partner shall make Capital Contributions to the Partnership
         of the proceeds therefrom; provided that if the proceeds actually
         received and contributed by the General Partner are less than the gross
         proceeds of such issuance as a result of any underwriter's discount,
         distribution charge or other expenses paid or incurred in connection
         with such issuance, then the General Partner shall be deemed to have
         made Capital Contributions to the Partnership in the aggregate amount
         of the gross proceeds of such issuance and the Partnership shall be
         deemed simultaneously to have paid such expenses in accordance with
         Section 6.05 hereof and in connection with the required issuance of
         additional Partnership Units to the General Partner for such Capital
         Contributions pursuant to Section 4.02(a) hereof.

         4.03 Additional Funding. If the General Partner determines that it is
in the best interests of the Partnership to provide for additional Partnership
funds ("Additional Funds") for any Partnership purpose, the General Partner may
(i) cause the Partnership to obtain such funds from outside borrowings, or (ii)
have the General Partner or any of its Affiliates provide such Additional Funds
to the Partnership through loans or otherwise. In no event may the General
Partner require the Limited Partners to make Capital Contributions other than
the Capital Contributions made by such Limited Partners at the time of
acquisition of their Limited Partnership Interests.

         4.04 Capital Accounts. A separate capital account (a "Capital Account")
shall be established and maintained for each Partner in accordance with
Regulations Section 1.704-1(b)(2)(iv). If (i) a new or existing Partner acquires
an additional Partnership Interest in exchange for more than a de minimis
Capital Contribution, (ii) the Partnership distributes to a Partner more than a
de minimis amount of Partnership property as consideration for a Partnership
Interest, or (iii) the Partnership is liquidated within the meaning of
Regulation Section 1.704-1(b)(2)(ii)(g), the General Partner shall revalue the
property of the Partnership to its fair market value (as determined by the
General Partner, in its sole and absolute discretion, and taking into account
Section 7701(g) of the Code) in accordance with Regulations Section
1.704-1(b)(2)(iv)(f). When the Partnership's property is revalued by the General
Partner, the Capital Accounts of the Partners shall be adjusted in accordance
with Regulations Sections 1.704-1(b)(2)(iv)(f) and (g), which generally require
such Capital Accounts to be adjusted to reflect the manner in which the
unrealized gain or loss inherent in such property (that has not been reflected
in the Capital Accounts previously) would be allocated among the Partners
pursuant to Section 5.01 if there were a taxable disposition of such property
for its fair market value (as

<PAGE>

determined by the General Partner, in its sole and absolute discretion, and
taking into account Section 7701(g) of the Code) on the date of the revaluation.

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

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

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

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

<PAGE>

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

                                    ARTICLE V
                        PROFITS AND LOSSES; DISTRIBUTIONS

         5.01     Allocation of Profit and Loss.

         (a) General. Subject to Section 5.01(d), after making any allocations
required pursuant to Sections 5.01(b), 5.01(c) and 5.01(g), Profit and Loss of
the Partnership for each fiscal year or other applicable period of the
Partnership shall be allocated among the Partners in accordance with their
respective Percentage Interests.

         (b) Minimum Gain Chargeback. Notwithstanding any provision to the
contrary, (i) any expense of the Partnership that is a "nonrecourse deduction"
within the meaning of Regulations Section 1.704-2(b)(1) shall be allocated in
accordance with the Partners' respective Percentage Interests, (ii) any expense
of the Partnership that is a "partner nonrecourse deduction" within the meaning
of Regulations Section 1.704-2(i)(2) shall be allocated to the Partner that
bears the "economic risk of loss" of such deduction in accordance with
Regulations Section 1.704-2(i)(1), (iii) if there is a net decrease in
Partnership Minimum Gain within the meaning of Regulations Section 1.704-2(f)(1)
for any Partnership taxable year, then, subject to the exceptions set forth in
Regulations Section 1.704-2(f)(2), (3), (4) and (5), items of gain and income
shall be allocated among the Partners in accordance with Regulations Section
1.704-2(f) and the ordering rules contained in Regulations Section 1.704-2(j),
and (iv) if there is a net decrease in Partner Nonrecourse Debt Minimum Gain
within the meaning of Regulations Section 1.704-2(i)(4) for any Partnership
taxable year, then, subject to the exceptions set forth in Regulations Section
1.704(2)(g), items of gain and income shall be allocated among the Partners in
accordance with Regulations Section 1.704-2(i)(4) and the ordering rules
contained in Regulations Section 1.704-2(j). A Partner's "interest in
partnership profits" for purposes of determining its share of the nonrecourse
liabilities of the Partnership within the meaning of Regulations Section
1.752-3(a)(3) shall be such Partner's Percentage Interest.

         (c) Qualified Income Offset. If a Partner receives in any taxable year
an adjustment, allocation, or distribution described in subparagraphs (4), (5),
or (6) of Regulations Section 1.704-1(b)(2)(ii)(d) that causes or increases a
deficit balance in such Partner's Capital Account that exceeds the sum of such
Partner's shares of Partnership Minimum Gain and Partner Nonrecourse Debt
Minimum Gain, as determined in accordance with Regulations Sections 1.704-2(g)
and 1.704-2(i), such Partner shall be allocated specially for such taxable year
(and, if necessary, later taxable years) items of income and gain in an amount
and manner sufficient to eliminate such deficit Capital Account balance as
quickly as possible as provided in Regulations Section 1.704-1(b)(2)(ii)(d).
After the occurrence of an allocation of income or gain to a Partner in
accordance with this Section 5.01(c), to the extent permitted by Regulations
Section 1.704-1(b), items of expense or loss shall be allocated to such Partner
in an amount necessary to offset the income or gain previously allocated to such
Partner under this Section 5.01(c).

<PAGE>

         (d) Capital Account Deficits. Loss shall not be allocated to a Limited
Partner to the extent that such allocation would cause a deficit in such
Partner's Capital Account (after reduction to reflect the items described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of
such Partner's shares of Partnership Minimum Gain and Partner Nonrecourse Debt
Minimum Gain. Any Loss in excess of that limitation shall be allocated to the
General Partner. After the occurrence of an allocation of Loss to the General
Partner in accordance with this Section 5.01(d), to the extent permitted by
Regulations Section 1.704-1(b), Profit shall be allocated to such Partner in an
amount necessary to offset the Loss previously allocated to each Partner under
this Section 5.01(d).

         (e) Allocations Between Transferor and Transferee. If a Partner
transfers any part or all of its Partnership Interest, the distributive shares
of the various items of Profit and Loss allocable among the Partners during such
fiscal year of the Partnership shall be allocated between the transferor and the
transferee Partner either (i) as if the Partnership's fiscal year had ended on
the date of the transfer, or (ii) based on the number of days of such fiscal
year that each was a Partner without regard to the results of Partnership
activities in the respective portions of such fiscal year in which the
transferor and the transferee were Partners. The General Partner, in its sole
and absolute discretion, shall determine which method shall be used to allocate
the distributive shares of the various items of Profit and Loss between the
transferor and the transferee Partner.

         (f) Definition of Profit and Loss. "Profit" and "Loss" and any items of
income, gain, expense, or loss referred to in this Agreement shall be determined
in accordance with federal income tax accounting principles, as modified by
Regulations Section 1.704-1(b)(2)(iv), except that Profit and Loss shall not
include items of income, gain and expense that are specially allocated pursuant
to Sections 5.01(b), 5.01(c), or 5.01(g). All allocations of income, Profit,
gain, Loss, and expense (and all items contained therein) for federal income tax
purposes shall be identical to all allocations of such items set forth in this
Section 5.01, except as otherwise required by Section 704(c) of the Code and
Regulations Section 1.704-1(b)(4). The General Partner shall have the authority
to elect the method to be used by the Partnership for allocating items of
income, gain, and expense as required by Section 704(c) of the Code including a
method that may result in a Partner receiving a disproportionately larger share
of the Partnership tax depreciation deductions, and such election shall be
binding on all Partners.

         (g) Special Allocation of Gains to Special OP Unitholders. For any
year in which Special OP Unitholders receive distributions pursuant to Section
8.06 of this Agreement, net capital gains realized in such year by the
Partnership shall be specially allocated to the Special OP Unitholders in
proportion to, and to the extent of, such distributions.

         5.02     Distribution of Cash.

         (a) The Partnership shall distribute cash on a quarterly (or, at the
election of the General Partner, more frequent) basis, in an amount determined
by the General Partner in its sole and absolute discretion, to the Partners who
are Partners on the Partnership Record Date with respect to such quarter (or
other distribution period) in accordance with their respective Percentage
Interests on the Partnership Record Date; provided, however, that if a new or
existing Partner acquires an additional Partnership Interest in exchange for a
Capital Contribution on any date other than the next day after a Partnership
Record Date, the cash distribution attributable to such additional Partnership
Interest relating to the Partnership Record Date next following the issuance of
such

<PAGE>

additional Partnership Interest (or relating to the Partnership Record Date if
such Partnership Interest was acquired on a Partnership Record Date) shall be
reduced in the proportion to (i) the number of days that such additional
Partnership Interest is held by such Partner bears to (ii) the number of days
between such Partnership Record Date (including such Partnership Record Date)
and the immediately preceding Partnership Record Date.

         (b) Except for distributions pursuant to Section 5.06 of this Agreement
in connection with the dissolution and liquidation of the Partnership and
subject to the provisions of Section 5.02(c), 5.02(d), 5.03, 5.05, and 8.06(b)
of this Agreement, all distributions of cash shall be made to the OP Unitholders
in accordance with their respective Percentage Interests on the Partnership
Record Date.

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

         Any amounts treated as a Partnership Loan or a General Partner Loan
pursuant to this Section 5.02(b) shall bear interest at the lesser of (i) the
base rate on corporate loans
<PAGE>

at large United States money center commercial banks, as published from time to
time in The Wall Street Journal, or (ii) the maximum lawful rate of interest on
such obligation, such interest to accrue from the date the Partnership or the
General Partner, as applicable, is deemed to extend the loan until such loan is
repaid in full.

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

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

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

         5.05 Limitations of Return of Capital Contributions. Notwithstanding
any of the provisions of this Article V, but subject to Section 8.05, no Partner
shall have the right to receive and the General Partner shall not have the right
to make, a distribution that includes a return of all or part of a Partner's
Capital Contributions, unless after giving effect to the return of a Capital
Contribution, the sum of all Partnership liabilities, other than the liabilities
to a Partner for the return of his Capital Contribution, does not exceed the
fair market value of the Partnership's assets.

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

         5.07 Substantial Economic Effect. It is the intent of the Partners that
the allocations of Profit and Loss under the Agreement have substantial economic
effect (or be consistent with the Partners' interests in the Partnership in the
case of the allocation of losses attributable to nonrecourse debt) within the
meaning of Section 704(b) of the Code as interpreted by the Regulations
promulgated pursuant thereto. Article V and other relevant provisions of this
Agreement shall be interpreted in a manner consistent with such intent.

                                   ARTICLE VI
              RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER

         6.01     Management of the Partnership.

<PAGE>

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

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

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

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

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

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

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

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

                  (viii) to lease all or any portion of any of the Partnership's
         assets, whether or not the terms of such leases extend beyond the
         termination date of the Partnership and whether or not any portion of
         the Partnership's assets so leased

<PAGE>

         are to be occupied by the lessee, or, in turn, subleased in whole or in
         part to others, for such consideration and on such terms as the General
         Partner may determine;

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

<PAGE>

         6.03     Indemnification.

         (a) To the maximum extent permitted by Delaware law in effect from time
to time, the Partnership shall indemnify any Indemnitee from and against any
claim or liability to which such Person may become subject or which such Person
may incur by reason of his service on behalf of the Partnership and, without
requiring a preliminary determination of the ultimate entitlement to
indemnification, shall pay or reimburse any Indemnitee reasonable expenses in
advance of final disposition of a proceeding.

         (b) Neither the amendment nor repeal of this Section 6.03, nor the
adoption or amendment of any other provision of the Agreement inconsistent with
Section 6.03, shall apply to or affect in any respect the applicability with
respect to any act or failure to act which occurred prior to such amendment,
repeal or adoption.

         (c) The indemnification provided by this Section 6.03 shall be in
addition to any other rights to which an Indemnitee or any other Person may be
entitled under any agreement, pursuant to any vote of the Partners, as a matter
of law or otherwise, and shall continue as to an Indemnitee who has ceased to
serve in such capacity.

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

         (e) For purposes of this Section 6.03, the Partnership shall be deemed
to have requested an Indemnitee to serve as fiduciary of an employee benefit
plan whenever the performance by it of its duties to the Partnership also
imposes duties on, or otherwise involves services by, it to the plan or
participants or beneficiaries of the plan; excise taxes assessed on an
Indemnitee with respect to an employee benefit plan pursuant to applicable law
shall constitute fines within the meaning of this Section 6.03; and actions
taken or omitted by the Indemnitee with respect to an employee benefit plan in
the performance of its duties for a purpose reasonably believed by it to be in
the interest of the participants and beneficiaries of the plan shall be deemed
to be for a purpose which is not opposed to the best interests of the
Partnership.

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

         (g) An Indemnitee shall not be denied indemnification in whole or in
part under this Section 6.03 because the Indemnitee had an interest in the
transaction with respect to which the indemnification applies if the transaction
was otherwise permitted by the terms of this Agreement.

         (h) The provisions of this Section 6.03 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.

<PAGE>

         (i) Notwithstanding anything in this Section 6.03 to the contrary, if
the General Partner would be prohibited under the Articles of Incorporation from
providing the indemnification or advancement of expenses otherwise called for by
this Section 6.03, then the Partnership shall not provide such indemnification
or advancement of expenses.

         6.04     Liability of the General Partner.

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

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

         (c) Subject to its obligations and duties as General Partner set forth
in Section 6.01 hereof, the General Partner may exercise any of the powers
granted to it under this Agreement and perform any of the duties imposed upon it
hereunder either directly or by or through its agents. The General Partner shall
not be responsible for any misconduct or negligence on the part of any such
agent appointed by it in good faith.

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

<PAGE>

         (e) Any amendment, modification or repeal of this Section 6.04 or any
provision hereof shall be prospective only and shall not in any way affect the
limitations on the General Partner's liability to the Partnership and the
Limited Partners under this Section 6.04 as in effect immediately prior to such
amendment, modification or repeal with respect to matters occurring, in whole or
in part, prior to such amendment, modification or repeal, regardless of when
claims relating to such matters may arise or be asserted.

         6.05     Reimbursement of General Partner.

         (a) Except as provided in this Section 6.05 and elsewhere in this
Agreement (including the provisions of Articles 5 and 6 regarding distributions,
payments, and allocations to which it may be entitled), the General Partner
shall not be compensated for its services as general partner of the Partnership.

         (b) The General Partner shall be reimbursed on a monthly basis, or such
other basis as the General Partner may determine in its sole and absolute
discretion, for all Administrative Expenses and for all amounts that the General
Partner disburses in connection with any redemption of REIT Shares.

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

         6.07     Employment or Retention of Affiliates.

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

         (b) The Partnership may lend or contribute to its Subsidiaries or other
Persons in which it has an equity investment, and such Persons may borrow funds
from the Partnership, on terms and conditions established in the sole and
absolute discretion of the

<PAGE>

General Partner. The foregoing authority shall not create any right or benefit
in favor of any Subsidiary or any other Person.

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

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

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

         6.09 Miscellaneous. In the event the General Partner redeems any REIT
Shares, then the General Partner shall cause the Partnership to purchase from
the General Partner a number of Partnership Units as determined based on the
application of the Conversion Factor on the same terms that the General Partner
exchanged such REIT Shares. Moreover, if the General Partner makes a cash tender
offer or other offer to acquire REIT Shares, then the General Partner shall
cause the Partnership to make a corresponding offer to the General Partner to
acquire an equal number of Partnership Units held by the General Partner. In the
event any REIT Shares are exchanged by the General Partner pursuant to such
offer, the Partnership shall redeem an equivalent number of the General
Partner's Partnership Units for an equivalent purchase price based on the
application of the Conversion Factor.

                                   ARTICLE VII
                           CHANGES IN GENERAL PARTNER

         7.01     Transfer of the General Partner's Partnership Interest.

<PAGE>

         (a) The General Partner shall not transfer all or any portion of its
General Partnership Interest or withdraw as General Partner except as provided
in or in connection with a transaction contemplated by Section 7.01(c), (d) or
(e).

         (b) [reserved]

         (c) Except as otherwise provided in Section 7.01(d) or (e) hereof, the
General Partner shall not engage in any merger, consolidation or other
combination with or into another Person or sale of all or substantially all of
its assets, (other than in connection with a change in the General Partner's
state of incorporation or organizational form) in each case which results in a
change of control of the General Partner (a "Transaction"), unless:

                  (i) the consent of the holders of a majority of the
         Partnership Units (including the Partnership Units held by the General
         Partner or an Affiliate thereof) and the holders of a majority of the
         Special Partnership Units is obtained;

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

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

<PAGE>

         Transaction) equal to the fair market value of such special Partnership
         Units at such time as determined in good faith by the General Partner
         by reference to the value paid for the REIT Shares.

         (d) Notwithstanding Section 7.01(c), the General Partner may merge with
or into or consolidate with another entity if immediately after such merger or
consolidation (i) substantially all of the assets of the successor or surviving
entity (the "Survivor"), other than Partnership Units held by the General
Partner, are contributed, directly or indirectly, to the Partnership as a
Capital Contribution in exchange for Partnership Units with a fair market value
equal to the value of the assets so contributed as determined by the Survivor in
good faith and (ii) the Survivor expressly agrees to assume all obligations of
the General Partner, as appropriate, hereunder. Upon such contribution and
assumption, the Survivor shall have the right and duty to amend this Agreement
as set forth in this Section 7.01(d). The Survivor shall in good faith arrive at
a new method for the calculation of the Cash Amount, the REIT Shares Amount and
Conversion Factor for a Partnership Unit after any such merger or consolidation
so as to approximate the existing method for such calculation as closely as
reasonably possible. Such calculation shall take into account, among other
things, the kind and amount of securities, cash and other property that was
receivable upon such merger or consolidation by a holder of REIT Shares or
options, warrants or other rights relating thereto, and to which a holder of
Partnership Units could have acquired had such Partnership Units been exchanged
immediately prior to such merger or consolidation. Such amendment to this
Agreement shall provide for adjustment to such method of calculation, which
shall be as nearly equivalent as may be practicable to the adjustments provided
for with respect to the Conversion Factor. The Survivor also shall in good faith
modify the definition of REIT Shares and make such amendments to Section 8.05
hereof so as to approximate the existing rights and obligations set forth in
Section 8.05 as closely as reasonably possible. The above provisions of this
Section 7.0 1(d) shall similarly apply to successive mergers or consolidations
permitted hereunder.

         (e)      Notwithstanding Section 7.01(c),

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

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

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

<PAGE>

         (a) the Person to be admitted as a substitute or additional General
Partner shall have accepted and agreed to be bound by all the terms and
provisions of this Agreement by executing a counterpart thereof and such other
documents or instruments as may be required or appropriate in order to effect
the admission of such Person as a General Partner, and a certificate evidencing
the admission of such Person as a General Partner shall have been filed for
recordation and all other actions required by Section 2.05 hereof in connection
with such admission shall have been performed;

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

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

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

         (a) Upon the occurrence of an Event of Bankruptcy as to a General
Partner (and its removal pursuant to Section 7.04(a) hereof) or the death,
withdrawal, removal or dissolution of a General Partner (except that, if a
General Partner is on the date of such occurrence a partnership, the withdrawal,
death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such
partnership shall be deemed not to be a dissolution of such General Partner if
the business of such General Partner is continued by the remaining partner or
partners), the Partnership shall be dissolved and terminated unless the
Partnership is continued pursuant to Section 7.03(b) hereof. The merger of the
General Partner with or into any entity that is admitted as a substitute or
successor General Partner pursuant to Section 7.02 hereof shall not be deemed to
be the withdrawal, dissolution or removal of the General Partner.

         (b) Following the occurrence of an Event of Bankruptcy as to a General
Partner (and its removal pursuant to Section 7.04(a) hereof) or the death,
withdrawal, removal or dissolution of a General Partner (except that, if a
General Partner is on the date of such occurrence a partnership, the withdrawal,
death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such
partnership shall be deemed not to be a dissolution of such General Partner if
the business of such General Partner is continued by the remaining partner or
partners), the Limited Partners, within 90 days after such occurrence, may elect
to continue the business of the Partnership for the balance of the term
specified in Section 2.04 hereof by selecting, subject to Section 7.02 hereof
and any other provisions of this Agreement, a substitute General Partner by
consent of a majority in interest of the Limited Partners. If the Limited
Partners elect to continue the business

<PAGE>

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

         7.04     Removal of a General Partner.

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

         (b) If a General Partner has been removed pursuant to this Section 7.04
and the Partnership is continued pursuant to Section 7.03 hereof, such General
Partner shall promptly transfer and assign its General Partnership Interest in
the Partnership to the substitute General Partner approved by a majority in
interest of the Limited Partners in accordance with Section 7.03(b) hereof and
otherwise admitted to the Partnership in accordance with Section 7.02 hereof. At
the time of assignment, the removed General Partner shall be entitled to receive
from the substitute General Partner the fair market value of the General
Partnership Interest of such removed General Partner as reduced by any damages
caused to the Partnership by such General Partner. Such fair market value shall
be determined by an appraiser mutually agreed upon by the General Partner and a
majority in interest of the Limited Partners within 10 days following the
removal of the General Partner. In the event that the parties are unable to
agree upon an appraiser, the removed General Partner and a majority in interest
of the Limited Partners each shall select an appraiser. Each such appraiser
shall complete an appraisal of the fair market value of the removed General
Partner's General Partnership Interest within 30 days of the General Partner's
removal, and the fair market value of the removed General Partner's General
Partnership Interest shall be the average of the two appraisals; provided,
however, that if the higher appraisal exceeds the lower appraisal by more than
20% of the amount of the lower appraisal, the two appraisers, no later than 40
days after the removal of the General Partner, shall select a third appraiser
who shall complete an appraisal of the fair market value of the removed General
Partner's General Partnership Interest no later than 60 days after the removal
of the General Partner. In such case, the fair market value of the removed
General Partner's General Partnership Interest shall be the average of the two
appraisals closest in value.

         (c) The General Partnership Interest of a removed General Partner,
during the time after removal until transfer under Section 7.04(b), shall be
converted to that of a special Limited Partner; provided, however, such removed
General Partner shall not have any rights to participate in the management and
affairs of the Partnership, and shall not be entitled to any portion of the
income, expense, profit, gain or loss allocations or cash distributions
allocable or payable, as the case may be, to the Limited Partners. Instead, such
removed General Partner shall receive and be entitled only to retain
distributions or

<PAGE>

allocations of such items that it would have been entitled to receive in its
capacity as General Partner, until the transfer is effective pursuant to Section
7.04(b).

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

                                  ARTICLE VIII
                 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

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

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

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

         8.04     [reserved]

         8.05     Redemption Right.

         (a) Subject to Sections 8.05(b), 8.05(c), 8.05(d), and 8.05(e) and the
provisions of any agreements between the Partnership and one or more Limited
Partners with respect to Partnership Units held by them, each Limited Partner,
other than the General Partner, shall have the right (the "Redemption Right") to
require the Partnership to redeem, on a date that is not later than 30 days
after the date set forth on the Notice of Redemption (the "Specified Redemption
Date"), all or a portion of the Partnership Units held by such Limited Partner
at a price equal to and in the form of the Cash Amount to be paid by the
Partnership; provided that such Partnership Units shall have been outstanding
for at least one year. The Redemption Right shall be exercised pursuant to a
Notice of Redemption delivered to the Partnership (with a copy to the General
Partner) by the Limited Partner who is exercising the Redemption Right (the
"Redeeming Partner");

<PAGE>

provided, however, that the Partnership shall not be obligated to satisfy such
Redemption Right if the General Partner elects to purchase the Partnership Units
subject to the Notice of Redemption pursuant to Section 8.05(b). A Limited
Partner may not exercise the Redemption Right for less than 1,000 Partnership
Units or, if such Limited Partner holds less than 1,000 Partnership Units, all
of the Partnership Units held by such Partner. The Redeeming Partner shall have
no right, with respect to any Partnership Units so exchanged, to receive any
distribution paid with respect to Partnership Units if the record date for such
distribution is on or after the Specified Redemption Date.

         (b) Notwithstanding the provisions of Section 8.05(a), a Limited
Partner that exercises the Redemption Right shall be deemed to have offered to
sell the Partnership Units described in the Notice of Redemption to the General
Partner, and the General Partner may, in its sole and absolute discretion, elect
to purchase directly and acquire such Partnership Units by paying to the
Redeeming Partner either the Cash Amount or the REIT Shares Amount, as elected
by the General Partner (in its sole and absolute discretion), on the Specified
Redemption Date, whereupon the General Partner shall acquire the Partnership
Units offered for exchange by the Redeeming Partner and shall be treated for all
purposes of this Agreement as the owner of such Partnership Units. If the
General Partner shall elect to exercise its right to purchase Partnership Units
under this Section 8.05(b) with respect to a Notice of Redemption, it shall so
notify the Redeeming Partner within five Business Days after the receipt by the
General Partner of such Notice of Redemption. Unless the General Partner (in its
sole and absolute discretion) shall exercise its right to purchase Partnership
Units from the Redeeming Partner pursuant to this Section 8.05(b), the General
Partner shall not have any obligation to the Redeeming Partner or the
Partnership with respect to the Redeeming Partner's exercise of the Redemption
Right. In the event the General Partner shall exercise its right to purchase
Partnership Units with respect to the exercise of a Redemption Right in the
manner described in the first sentence of this Section 8.05(b), the Partnership
shall have no obligation to pay any amount to the Redeeming Partner with respect
to such Redeeming Partner's exercise of such Redemption Right, and each of the
Redeeming Partner, the Partnership, and the General Partner, as the case may be,
shall treat the transaction between the General Partner, as the case may be, and
the Redeeming Partner for federal income tax purposes as a sale of the Redeeming
Partner's Partnership Units to the General Partner, as the case may be. Each
Redeeming Partner agrees to execute such documents as the General Partner may
reasonably require in connection with the issuance of REIT Shares upon exercise
of the Redemption Right.

         (c) Notwithstanding the provisions of Section 8.05(a) and 8.05(b), a
Limited Partner shall not be entitled to exercise the Redemption Right if the
delivery of REIT Shares to such Partner on the Specified Redemption Date by the
General Partner pursuant to Section 8.05(b) (regardless of whether or not the
General Partner would in fact exercise its rights under Section 8.05(b)) would
(i) result in such Partner or any other person owning, directly or indirectly,
REIT Shares in excess of the Ownership Limitation (as defined in the Articles of
Incorporation and calculated in accordance therewith), except as provided in the
Articles of Incorporation, (ii) result in REIT Shares being owned by fewer than
100 persons (determined without reference to any rules of attribution), except
as provided in the Articles of Incorporation, (iii) result in the General

<PAGE>

Partner being "closely held" within the meaning of Section 856(h) of the Code,
or (iv) cause the General Partner to own, directly or constructively, 10% or
more of the ownership interests in a tenant, within the meaning of Section
856(d)(2)(B) of the Code. The General Partner, in its sole and absolute
discretion, may waive the restriction on exchange set forth in this Section
8.05(c).

         (d) Any Cash Amount to be paid to a Redeeming Partner pursuant to this
Section 8.05 shall be paid on the Specified Redemption Date; provided, however,
that the General Partner may elect to cause the Specified Redemption Date to be
delayed for up to an additional 180 days to the extent required for the General
Partner to cause additional REIT Shares to be issued to provide financing to be
used to make such payment of the Cash Amount. Notwithstanding the foregoing, the
General Partner agrees to use its best efforts to cause the closing of the
acquisition of redeemed Partnership Units hereunder to occur as quickly as
reasonably possible.

         (e) Notwithstanding any other provision of this Agreement, the General
Partner shall place appropriate restrictions on the ability of the Limited
Partners to exercise their Redemption Rights as and if deemed necessary to
ensure that the Partnership does not constitute a "publicly traded partnership"
under section 7704 of the Code. If and when the General Partner determines that
imposing such restrictions is necessary, the General Partner shall give prompt
written notice thereof (a "Restriction Notice") to each of the Limited Partners,
which notice shall be accompanied by a copy of an opinion of counsel to the
Partnership which states that, in the opinion of such counsel, restrictions are
necessary in order to avoid the Partnership being treated as a "publicly traded
partnership" under section 7704 of the Code.

         8.06 Redemption of Special Partnership Units. Upon the earliest to
occur of (i) the termination or nonrenewal of the Advisory Agreement, (ii) a
Liquidity Event or (iii) a Listing, the Special OP Unitholders shall have the
right to require the Partnership to redeem the Special Partnership Units as
provided in this Section 8.06.

         (a) If the Advisory Agreement is terminated by the General Partner for
"cause" (as defined in the Advisory Agreement), all of the Special Partnership
Units shall be redeemed by the Partnership for $1, effective as of the date of
the termination of the Advisory Agreement.

         (b) Upon the occurrence of a Liquidity Event, a Listing or a
Termination Event, the Special Partnership Units shall be redeemed for an
aggregate amount equal to 15% of the net proceeds of such event; provided,
that, if a Liquidity Event, Termination Event or Listing shall occur prior
to the fifth anniversary of the date of this Agreement, the Special Partnership
Units shall be redeemed for an amount equal to the greater of (i) 15% of the net
proceeds of such event or (ii) the total organizational and offering expenses
incurred by the Advisor and its affiliates in connection with the offering of
the shares of the General Partner; provided, further, that, no payments shall be
made unless and until the OP Unitholders have received, in the aggregate,
cumulative distributions from operating income, sales proceeds and other sources
in an amount equal to their Capital Contributions to the Partnership (less any
amounts received in redemption of their Partnership Interests) plus a 10.0%
cumulative non-compounded annual pre-tax return thereon.

<PAGE>
         (c) Upon the termination of the Advisory Agreement other than for
"cause" (as defined in the Advisory Agreement) shall consist of a non-interest
bearing promissory note that will be repaid, subject to Section 8.06(b), using
the net proceeds of a Liquidity Event or a Listing in connection with or
following the occurrence of such termination. In addition, the amount of the
promissory note issued in connection with a Termination Event will be subject to
reduction as of the date of the Liquidity Event or Listing by an amount that
will ensure that, in connection with the Liquidity Event or Listing, the holder
of the promissory note does not receive in excess of 15.0% of the distributions
of the net proceeds that are made or are deemed to be made by the Partnership
after the OP Unitholders have received or are deemed to have received aggregate,
cumulative distributions equal to their Capital Contributions to the Partnership
(less any amounts received in redemption of their Partnership Interests) plus a
10.0% cumulative noncompounded annual pre-tax return thereon.

         (d) In the event of a Listing, the Special Partnership Units shall be
redeemed for an aggregate amount equal to the proceeds that would have been
received if the Partnership had sold all of its assets at an amount equal to the
market value of all of the REIT shares outstanding on the date of the Listing,
calculated based on the average closing price, or average of bid and ask prices,
as the case may be, during the 30-day period beginning 90 days after such
Listing. Payment to the Special OP Unitholders upon a Listing shall be in the
form of REIT Shares, valued as set forth in the preceding sentence.

         (e) The net proceeds of a termination of the Advisory Agreement other
than for "cause" shall be calculated as if the General Partner had sold all of
its assets at a price equal to the price per REIT Share as of the date of such
termination multiplied by the number of REIT Shares outstanding as of the close
of business on the date of such termination, without taking into effect
purchases or redemptions to be effected as of such date.

                                   ARTICLE IX
           TRANSFERS AND REDEMPTIONS OF LIMITED PARTNERSHIP INTERESTS

         9.01     Purchase for Investment.

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

         (b) Each Limited Partner agrees that he will not sell, assign or
otherwise transfer his Partnership Interest or any fraction thereof, whether
voluntarily or by operation of law or at judicial sale or otherwise, to any
Person who does not make the representations and warranties to the General
Partner set forth in Section 9.0 1(a) above and similarly agree not to sell,
assign or transfer such Partnership Interest or fraction thereof to any Person
who does not similarly represent, warrant and agree.

<PAGE>

         9.02     Restrictions on Transfer of Limited Partnership Interests.

         (a) Subject to the provisions of 9.02(b), (c) and (d), no Limited
Partner may offer, sell, assign, hypothecate, pledge or otherwise transfer all
or any portion of his Limited Partnership Interest, or any of such Limited
Partner's economic rights as a Limited Partner, whether voluntarily or by
operation of law or at judicial sale or otherwise (collectively, a "Transfer")
without the consent of the General Partner, which consent may be granted or
withheld in its sole and absolute discretion. Any such purported transfer
undertaken without such consent shall be considered to be null and void ab
initio and shall not be given effect. The General Partner may require, as a
condition of any Transfer to which it consents, that the transferor assume all
costs incurred by the Partnership in connection therewith.

         (b) No Limited Partner may withdraw from the Partnership other than as
a result of a permitted Transfer (i.e., a Transfer consented to as contemplated
by clause (a) above or clause (c) below or a Transfer pursuant to 9.05 below) of
all of his Partnership Units pursuant to this Article IX or pursuant to a
redemption of all of his Partnership Units pursuant to 8.05 or pursuant to the
redemption of his Special Partnership Units pursuant to Section 8.06. Upon the
permitted Transfer or redemption of all of a Limited Partner's Partnership
Units, such Limited Partner shall cease to be a Limited Partner.

         (c) Subject to 9.02(d), (e) and (f) below, a Limited Partner may
Transfer, with the consent of the General Partner, all or a portion of his
Partnership Units to (i) a parent or parent's spouse, natural or adopted
descendant or descendants, spouse of such descendant, or brother or sister, or a
trust created by such Limited Partner for the benefit of such Limited Partner
and/or any such person(s), of which trust such Limited Partner or any such
person(s) is a trustee, (ii) a corporation controlled by a Person or Persons
named in (i) above, or (iii) if the Limited Partner is an entity, its beneficial
owners.

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

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

         (f) No transfer of any Partnership Units may be made to a lender to the
Partnership or any Person who is related (within the meaning of Regulations
Section

<PAGE>

1.752-4(b)) to any lender to the Partnership whose loan constitutes a
nonrecourse liability (within the meaning of Regulations Section 1.752-1(a)(2)),
without the consent of the General Partner, which may be withheld in its sole
and absolute discretion, provided that as a condition to such consent the lender
will be required to enter into an arrangement with the Partnership and the
General Partner to exchange or redeem for the Cash Amount any Partnership Units
in which a security interest is held simultaneously with the time at which such
lender would be deemed to be a partner in the Partnership for purposes of
allocating liabilities to such lender under Section 752 of the Code.

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

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

         9.03     Admission of Substitute Limited Partner.

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

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

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

                  (iii) The assignee shall have delivered a letter containing
         the representation set forth in Section 9.01(a) hereof and the
         agreement set forth in Section 9.01(b) hereof.

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

                  (v) The assignee shall have executed a power of attorney
         containing the terms and provisions set forth in Section 8.02 hereof.

<PAGE>

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

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

         (b) For the purpose of allocating Profits and Losses and distributing
cash received by the Partnership, a Substitute Limited Partner shall be treated
as having become, and appearing in the records of the Partnership as, a Partner
upon the filing of the Certificate described in Section 9.03(a)(ii) hereof or,
if no such filing is required, the later of the date specified in the transfer
documents or the date on which the General Partner has received all necessary
instruments of transfer and substitution.

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

         9.04     Rights of Assignees of Partnership Interests.

         (a) Subject to the provisions of Sections 9.01 and 9.02 hereof, except
as required by operation of law, the Partnership shall not be obligated for any
purposes whatsoever to recognize the assignment by any Limited Partner of its
Partnership Interest until the Partnership has received notice thereof.

         (b) Any Person who is the assignee of all or any portion of a Limited
Partner's Limited Partnership Interest, but does not become a Substitute Limited
Partner and desires to make a further assignment of such Limited Partnership
Interest, shall be subject to all the provisions of this Article IX to the same
extent and in the same manner as any Limited Partner desiring to make an
assignment of its Limited Partnership Interest.

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

<PAGE>

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

         9.07 Redemption of Partnership Units. The General Partner will cause
the Partnership to redeem Partnership Units, to the extent it shall have legally
available funds therefor, at any time the General Partner redeems shares of
beneficial interest in itself. The number and class or series of Partnership
Units redeemed and the redemption price shall equal the number (multiplied by
the Conversion Factor) of shares of beneficial interest the General Partner
redeems and the redemption price at which the General Partner redeems such
shares, respectively.

                                    ARTICLE X
                   BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

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

         10.02    Custody of Partnership Funds, Bank Accounts.

         (a) All funds of the Partnership not otherwise invested shall be
deposited in one or more accounts maintained in such banking or brokerage
institutions as the General Partner shall determine, and withdrawals shall be
made only on such signature or signatures as the General Partner may, from time
to time, determine.

<PAGE>

         (b) All deposits and other funds not needed in the operation of the
business of the Partnership may be invested by the General Partner in investment
grade instruments (or investment companies whose portfolio consists primarily
thereof), government obligations, certificates of deposit, bankers' acceptances
and municipal notes and bonds. The funds of the Partnership shall not be
commingled with the funds of any other Person except for such commingling as may
necessarily result from an investment in those investment companies permitted by
this Section 10.02(b).

         10.03    Fiscal and Taxable Year. The fiscal and taxable year of the
Partnership shall be the calendar year.

         10.04 Annual Tax Information and Report. Within 75 days after the end
of each fiscal year of the Partnership, the General Partner shall furnish to
each person who was a Limited Partner at any time during such year the tax
information necessary to file such Limited Partner's individual tax returns as
shall be reasonably required by law.

         10.05    Tax Matters Partner, Tax Elections, Special Basis Adjustments.

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

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

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

         10.06    Reports to Limited Partners.

<PAGE>

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

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

                                   ARTICLE XI
                         AMENDMENT OF AGREEMENT; MERGER

         The General Partner's consent shall be required for any amendment to
this Agreement. The General Partner, with the consent of the holders of a
majority of the Partnership Units (including the Partnership Units held by the
General Partner or an Affiliate thereof) and the holders of a majority of the
Special Partnership Units, may amend this Agreement in any respect or merge or
consolidate the Partnership with or into any other partnership or business
entity (as defined in Section 17-211 of the Act) in a transaction pursuant to
Section 7.01(c), (d) or (e) hereof; provided, however, that the following
amendments and any other merger or consolidation of the Partnership shall
require the consent of the holders of a majority of the Partnership Units
(excluding the Partnership Units held by the General Partner or an Affiliate
thereof):

         (a) any amendment affecting the operation of the Conversion Factor or
the Exchange Right (except as provided in Section 8.05(d) or 7.01(d) hereof) in
a manner adverse to the Limited Partners;

         (b) any amendment that would adversely affect the rights of the Limited
Partners to receive the distributions payable to them hereunder, other than with
respect to the issuance of additional Partnership Units pursuant to Section 4.02
hereof;

         (c) any amendment that would alter the Partnership's allocations of
Profit and Loss to the Limited Partners, other than with respect to the issuance
of additional Partnership Units pursuant to Section 4.02 hereof; or

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

<PAGE>

                                   ARTICLE XII
                               GENERAL PROVISIONS

         12.01 Notices. All communications required or permitted under this
Agreement shall be in writing and shall be deemed to have been given when
delivered personally or upon deposit in the United States mail, registered,
postage prepaid return receipt requested, to the Partners at the addresses set
forth in Exhibit A attached hereto; provided, however, that any Partner may
specify a different address by notifying the General Partner in writing of such
different address. Notices to the Partnership shall be delivered at or mailed to
its specified office.

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

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

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

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

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

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

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

         12.09 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware provided, however, that
causes of action for violations of federal or state securities laws shall not be
governed by this Section 12.09.

<PAGE>
         IN WITNESS WHEREOF, the parties hereto have hereunder affixed their
signatures to this Agreement of Limited Partnership, all as of the 18th day of
April, 2007.

                    [Signatures Appear on Following Page(s).]

<PAGE>

                          GENERAL PARTNER:

                          WELLS TOTAL RETURN REIT, INC.

                          By:  /s/ Leo F. Wells, III
                             --------------------------------------------------

                          Name:   Leo F. Wells, III
                          Title:  President

                          LIMITED PARTNER:

                          WELLS ASSET MANAGEMENT, INC.

                          By:  /s/ Leo F. Wells, III
                             ---------------------------------------------------

                          Name:  Leo F. Wells, III
                          Title: President

<PAGE>

EXHIBIT A

<Table>

<Caption>

                                                    AGREED
                                                    VALUE                                                   SPECIAL
                                                      OF                                      SPECIAL     PARTNERSHIP
                                      CASH         CAPITAL     PARTNERSHIP    PERCENTAGE    PARTNERSHIP   PERCENTAGE
GENERAL PARTNER                   CONTRIBUTION   CONTRIBUTION     UNITS        INTEREST        UNITS       INTEREST
                                  ------------   ------------  -----------    ----------     ---------    -----------

<S>                               <C>            <C>           <C>            <C>            <C>          <C>
Wells Total Return REIT, Inc.       $200,000       $200,000       20,000          99%             0            0%
6200 The Corners
Parkway, Suite 250
Norcross, Georgia 30092
</Table>

<Table>

<Caption>

                                                    AGREED
                                                    VALUE                                                   SPECIAL
                                                      OF                                      SPECIAL     PARTNERSHIP
                                      CASH         CAPITAL     PARTNERSHIP    PERCENTAGE    PARTNERSHIP   PERCENTAGE
LIMITED PARTNER                   CONTRIBUTION   CONTRIBUTION     UNITS        INTEREST        UNITS       INTEREST
                                  ------------   ------------  -----------    ----------    -----------   -----------

<S>                               <C>            <C>           <C>            <C>           <C>           <C>
Wells Asset Management, Inc.         $3,000          $3,000        200             1%           100           100%
6200 The Corners
Parkway, Suite 250
Norcross, Georgia 30092
</Table>

<PAGE>

                                    EXHIBIT B

                     NOTICE OF EXERCISE OF REDEMPTION RIGHT

         In accordance with Section 8.05 of the Agreement of Limited Partnership
(the "Agreement") of Wells Total Return Operating Partnership, L.P., the
undersigned hereby irrevocably (i) presents for redemption __________
Partnership Units in Wells Total Return Operating Partnership, L.P. in
accordance with the terms of the Agreement and the Redemption Right referred to
in Section 8.05 thereof, (ii) surrenders such Partnership Units and all right,
title and interest therein, and (iii) directs that the Cash Amount or REIT
Shares Amount (as defined in the Agreement) as determined by the General Partner
deliverable upon exercise of the Redemption Right be delivered to the address
specified below , and if REIT Shares (as defined in the Agreement) are to be
delivered, such REIT Shares be registered or placed in the name(s) and at the
address(es) specified below.

Dated:  _________, ______

         Name of Limited Partner:

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

         (Signature of Limited Partner)

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

         (Mailing Address)

         ----------------------------------------
         (City) (State)(Zip Code)

         Signature Guaranteed by:

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

If REIT Shares are to be issued, issue to:

Please insert social security or identifying number:

Name:EX-10.1 Pfost Settlement Agreement

 

EXHIBIT 10.1

SETTLEMENT AGREEMENT

AND GENERAL RELEASE

     THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE (this “Settlement Agreement and General
Release”) is entered into as of the 11th day of May, 2007 (the “Effective Date”) by and
between DALE R. PFOST ( “Executive”), EXEGENICS INC., a Delaware corporation (the “Company”), and
ACUITY PHARMACEUTICALS, LLC, a Delaware limited liability company (the “Subsidiary”).

     WHEREAS, Executive and the Company are parties to a certain employment letter dated April 9,
2007 which sets forth the terms of the Executive’s employment with the Company and its wholly owned
subsidiary, Acuity Pharmaceuticals, LLC (the “Employment Letter”);

     WHEREAS, Executive and the Company desire to sever their employment relationship on an
amicable basis;

     WHEREAS, Executive’s employment with the Company will end as of the close of business May 31,
2007 (hereinafter, the “Separation Date”);

     NOW, THEREFORE, for and in consideration of the agreements, covenants and conditions herein
contained, the adequacy and sufficiency of which are hereby expressly acknowledged by each of the
parties hereto, Executive, the Company and the Subsidiary agree as follows:

     1. Settlement Payments. In consideration for the release of claims and other promises
and covenants set forth herein, the Company shall provide the Executive with the following:

                    (a) continuation of Executive’s base salary at an annual rate of $325,000, less applicable tax
withholdings, and all benefit programs provided to the Executive pursuant to the Employment Letter
from the Effective Date through the Separation Date, payable monthly pursuant to the Company’s
normal payroll practices;

                    (b) continuation of Executive’s base salary at an annual rate of $325,000, less applicable tax
withholdings, payable monthly pursuant to the Company’s normal payroll practices, for a period of
one (1) year beginning on the Separation Date and ending on May 31, 2008 (the “Severance Period”);

                    (c) Company assistance in transferring personal computer files stored on the Company server
and the continued forwarding of all personal electronic mail of the Executive to the following
address: dale.pfost@gmail.com until June 15, 2007;

                    (d) reimbursement to the Executive of the cost of purchasing medical benefits under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended

______ Initial

1

 

(“COBRA”), during the Severance Period or such earlier period in which Executive becomes
eligible for health care benefits through another employer. Executive agrees to immediately notify
the Company if he becomes eligible for health care benefits through another employer prior to May
31, 2008. Executive’s failure to promptly notify the Company of his new health care eligibility
will obligate Executive to reimburse the Company for any COBRA payments made while the Executive
was eligible for coverage;

                    (e) On the eighth day following the execution of this Settlement Agreement and General Release
by the Executive (and provided that the Settlement Agreement and General Release is not revoked
pursuant to Section 6 hereof) and the Company, payment of up to $65,125 in reimbursement of
Executive’s unrecoverable expenses incurred in connection with Executive’s relocation to Miami,
Florida, as itemized on Schedule 1 attached hereto, to the extent that the Company, with the
Executive’s reasonable assistance, can not obtain an agreement to release Executive from all or
part of any of the expenses;

                    (f) On the eighth day following the execution of this Settlement Agreement and General Release
(and provided that the Settlement Agreement and General Release is not revoked pursuant to Section
6 hereof), payment of $26,209.00, which represents the cash equivalent of 20 days’ accrued but
unused vacation time remaining as of the Separation Date; and

                    (g) automatic vesting of the equity awards listed on the attached Schedule 2 (the “Equity
Awards”) as of the Effective Date for a period commencing on the Effective Date and ending at the
close of business on the last day of the Severance Period. All vested options listed on Schedule 2
shall be exercisable on or before the close of business on the last day of the Severance Period.
The Equity Awards shall not be subject to repurchase.

     2. Release and Waiver of Claims by Executive. In consideration for the payments and
other benefits described above in paragraph 1, Executive hereby waives, releases and forever
discharges the Company, the Subsidiary, their health or welfare benefits plans, affiliates,
predecessors, successors or assigns, and their respective officers, directors, trustees, employees,
representatives and agents (the “Released Parties”), from any and all claims or liabilities of
whatever kind or nature, that Executive has ever had or which Executive now has, known or unknown,
including, but not limited to any events related to, arising out of or in connection with
Executive’s employment with the Company and the Subsidiary. Executive specifically waives,
releases and gives up any and all claims arising from or relating to Executive’s employment with
the Company and the Subsidiary and its termination including, but not limited to: any claims which
could be asserted now or in the future under (a) the common law, including, but not limited to
theories of breach of express or implied duty, wrongful termination, defamation or violation of
public policy; (b) any policies, practices, or procedures of the Company; (c) any federal and/or
state statute or regulations expressly including, but not limited to: the Executive Retirement
Income Security Act, 29 U.S.C. § 1001 et seq.; the Family and Medical Leave Act, 29 U.S.C.
§ 2611 et seq., or COBRA; the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621
et seq., Title VII of the 1964 Civil Rights Act, 42 U.S.C. § 2000(e) et seq.; the
Americans with Disabilities Act, (ADA), 42 U.S.C. § 12101 et seq.; the Worker Adjustment
and Retraining Notification Act (WARN), 29 U.S.C. § 2101; the Older Workers Benefit Protection Act
of 1990, as amended (“OWBPA”), the Age Discrimination in

______ Initial

2

 

Employment Act of 1967, as amended (the “ADEA”), and the Equal Pay Act, 29 U.S.C. § 206(d)
et seq.; (d) any claims for attorney’s fees and costs; (e) any contract of employment,
expressed or implied; (f) any provision of the Constitution of the United States, the State of
Florida or any other state; (g) any provision of any other law, common or statutory, including but
not limited to any law of the United States, Florida, or any other state or government entity; and
(h) any claim for compensatory or punitive damages. These are not complete lists and Executive
waives and releases all similar rights and claims under all other federal, state and local
discrimination provisions and all other constitutional, statutory, regulatory and common law causes
of action, whether in tort, contract, equity or otherwise except as provided in this Agreement.
Executive further agrees that this release may be pleaded as a complete bar to any action or suit
before any court or administrative body. To the full extent permitted by law, the Executive
covenants not to sue the Company, the Subsidiary or any of the Released Parties or to initiate any
proceedings against the Company, the Subsidiary or any of the Released Parties based on any matter
covered by the foregoing release. The Executive agrees and covenants that he has not and will not
file, charge, claim, sue or cause or permit to be filed any civil action, suit or legal proceeding
seeking personal, equitable or monetary relief for the Executive in connection with any matter
occurring at any time in the past concerning Executive’s employment relationship with the Company
or the Subsidiary, up to and including the date of this Agreement, or involving any continuing
effects of any acts or practices which may have arisen or occurred on or prior to the date of this
Agreement. The Executive further agrees and covenants that should any person, organization, or
other entity file, charge, claim, sue, or cause or permit to be filed any civil action, suit or
legal proceeding involving any matter occurring at any time in the past, Executive will not seek or
accept any personal relief in such civil action, suit or legal proceeding. This release does not
apply to (a) claims that may arise after this Settlement Agreement and General Release is executed,
(b) any claim seeking to enforce rights under this Settlement Agreement and General Release, (c)
any claim to be indemnified by the Subsidiary or the Company (including rights to advance
reimbursement for costs and expenses) pursuant to any provision of the Subsidiary’s or the
Company’s certificate of incorporation, bylaws or any indemnification agreement between the
Executive and the Subsidiary or the Company. Notwithstanding anything to the contrary herein, this
release shall not restrict or adversely affect the Executive’s ability to exercise any vested
Equity Awards or otherwise infringe upon the Executive’s ownership of any of the Company’s or
Subsidiary’s securities.

     3. Confidentiality; Survival of Covenants. Executive acknowledges that, during his
employment with the Company and/or the Subsidiary, he had access to confidential information, trade
secrets, identity of customers and suppliers and identity of products under development relating
to, or concerned with, the past, present, or future business, finances, services, customers, and
policies of the Company and the Subsidiary (“Proprietary Information”). Executive agrees that he
will not, unless required by court order, judgment or decree, directly or indirectly use, divulge,
furnish or make accessible any Proprietary Information to any other person or entity. This
provision survives the termination of the Agreement. The Executive also acknowledges that he
continues to be bound by and hereby affirms the non-competition provision contained in Section 14
of the Letter Agreement and the covenants contained in the Inventions and Proprietary Information
Agreement entered into by the Executive.

     4. Confidentiality of the Agreement. Executive shall not disclose or publicize the
terms of this Settlement Agreement and General Release to any person or entity, except that

______ Initial

3

 

Employee may disclose the terms, and/or fact of this Settlement Agreement and General Release
to immediate family members, Executive’s accountants and attorneys and to others as required by
law. The Company and the Subsidiary shall not disclose or publicize the terms of this Settlement
Agreement and General Release to any person or entity, except as business (e.g., recording of the
settlement on the Company’s books, accounting records, tax records, etc.) or legal necessity may
require. Any individual to whom such disclosures are made will be instructed that the information
so disclosed must be kept confidential.

     5. Non-Disparagement. Executive agrees that he will not now, or in the future,
directly or indirectly, disrupt, damage, injure or interfere with or make disparaging remarks about
the Company’s or the Subsidiary’s business, whether by way of interfering with or destroying its
relationship with any of its clients or potential clients, customers, agents, employees,
consultants, suppliers representatives, vendors or any other person or entity (whether or not such
relationships have been reduced to formal contracts).

     6. Opportunity to Review and Right to Revoke. Executive acknowledges that Executive
is acting of Executive’s own free will, that Executive has been afforded at least twenty-one (21)
days to read and review the terms of this Settlement Agreement and General Release, that Executive
has been advised to review the Agreement with counsel of Executive’s choice, and that Executive is
voluntarily entering into this Settlement Agreement and General Release with full knowledge of its
respective provisions and effects. Executive acknowledges that Executive has seven (7) days
following Executive’s execution of this Settlement Agreement and General Release within which to
revoke it at which point the Company will have no obligation to make any payments to Executive (if
no election is made, such date is referred to as the “Effective Date”). If Executive elects to
revoke acceptance of this Settlement Agreement and General Release, Executive must do so within
seven (7) days of executing it by delivering a letter of revocation to Steven D. Rubin.

     7. Non-Admission. This Settlement Agreement and General Release shall not be
construed as an admission by either party any other wrongdoing or liability of whatever nature.
Both parties expressly denies any wrongdoing with respect to the Executive’s employment with the
Company and the Subsidiary and specifically deny any liability whatsoever for any damages, injuries
or other claims, which could be claimed by the other party.

     8. Entire Agreement. This Settlement Agreement and General Release contains the sole
and the entire agreement between Executive, the Company, and the Subsidiary and completely and
fully supersedes and replaces any and all prior contracts, agreements, discussions,
representations, negotiations, understandings and any other communications between the parties
pertaining to the subject matter hereof. Executive represents and acknowledges, in executing this
Settlement Agreement and General Release, that Executive has not relied upon any representation or
statement not set forth in this Settlement Agreement and General Release made by the Company, the
Subsidiary or their counsel or representatives with regard to the subject matter of this Settlement
Agreement and General Release. No other promises or agreements shall be binding unless in writing,
signed by the parties hereto, and expressly stated to represent an amendment to this Settlement
Agreement and General Release.

______ Initial

4

 

     9. Successors and Assigns. Executive, the Company and the Subsidiary are bound by
this Settlement Agreement and General Release. Executive agrees that he has executed the releases
contained in this Settlement Agreement and General Release on his own behalf, and also on behalf of
his dependents, heirs, agents, executors, legal representatives, successors and assigns. Those who
succeed to Executive’s rights and responsibilities, such as Executive’s dependents, heirs, agents,
executors, legal representatives, successors and assigns are also bound and this Settlement
Agreement and General Release also inures to their benefit. This Settlement Agreement and General
Release is made for the benefit of the Company, the Subsidiary and all who succeed to their rights
and responsibilities, such as any successors and/or assigns.

     10. No Assignment. Executive further represents and warrants that Executive has not
heretofore assigned or transferred to any other person or entity any right to receive or claim for
any attorneys’ fees in connection with this matter.

     11. Full Knowledge of Terms. Executive hereby represents and warrants that, prior to
executing this Settlement Agreement and General Release, Executive has had the opportunity to fully
discuss its meaning and effect with Executive’s attorneys, and that Executive fully understands and
comprehends the meaning of each of the provisions of this Settlement Agreement and General Release
and that Executive has entered into this Settlement Agreement and General Release voluntarily.

     12. Severability. Executive, Company and Subsidiary agree that if any court declares
any portion of this Settlement Agreement and General Release unenforceable, the remaining portions
shall be fully enforceable.

     13. Counterparts. This Settlement Agreement and General Release may executed in
counterparts.

     14. Governing Law and Venue. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Florida, both substantive and remedial.
Executive agrees that this Agreement and any controversies of any nature whatsoever arising under
or relating to this Agreement shall be subject to the exclusive jurisdiction of the courts of
Miami-Dade County, Florida, and Miami-Dade County, Florida shall be the exclusive jurisdiction and
venue for any disputes, actions or lawsuits arising out of or relating to this Agreement or the
transactions contemplated hereby. Any breach of any term or condition of this Agreement (whether
arising before or after the execution of this Agreement) shall be deemed to be a breach occurring
in the State of Florida by virtue of a failure to perform an act required to be performed in the
State of Florida, and Executive irrevocably and expressly agrees to submit to the jurisdiction of
the courts of Miami-Dade County, Florida for the purpose of resolving any disputes among the
parties relating to this Agreement or the transactions contemplated hereby. Executive irrevocably
waives, to the fullest extent permitted by law, any objection which they may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement, or any judgment entered by any court in respect hereof, brought in Miami-Dade County,
Florida, and further irrevocably waives any claim that any suit, action or proceeding brought in
Miami-Dade County, Florida has been brought in an inconvenient forum.

______ Initial

5

 

     15. Prevailing Party. A prevailing party shall be entitled to any attorneys’ fees
and court costs incurred in enforcing this Agreement or in defending any claim brought in violation
hereof.

[SIGNATURE PAGE FOLLOWS]

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6

 

     IN WITNESS WHEREOF, Executive, Company and Subsidiary each acknowledge that the terms of this
Settlement Agreement and General Release are contractual, that they are acting of their own free
will, that they have had a sufficient opportunity to read and review the terms of this Settlement
Agreement and General Release, they have each had the opportunity to consult their respective
counsel, and that they have voluntarily caused the execution of this Settlement Agreement and
General Release as of the day and year set forth below:

	 	 	 
	 

	 	EXEGENICS, INC.
	 
	 	 
	 
	 	 
	 

	 	/s/ Steven Rubin
	 

	 	 
	 

	 	Name: Steven D. Rubin

Title: Executive Vice President — Administration
	 
	 	 
	 
	 	 
	 

	 	Date: May 11, 2007
	 
	 

	 	ACUITY PHARMACEUTICALS, LLC
	 
	 	 
	 
	 	 
	 

	 	/s/ Steven Rubin
	 

	 	 
	DALE R. PFOST, PH.D.

	 	Name: Steven D. Rubin
	 

	 	Title: Executive Vice President — Administration
	 
	 	 
	Date: May 11, 2007

	 	Date: May 11, 2007

______ Initial

7

 

SCHEDULE 1

RELOCATION EXPENSES

Dale Pfost Miami Relocation Expenses Incurred:

	 	 	 	 	 	 	 
	•
	 	Palmer Trinity School non-refundable deposit
	 	$	2,500	 
	 
	 	 	 	 
	•
	 	Wachovia Mortgage Corp. Appraisal
	 	$	450	 
	 
	 	 	 	 
	•
	 	Wachovia Mortgage Corp Loan Application Fee
	 	$	125	 
	 
	 	 	 	 
	•
	 	Coldwell Banker Real Estate Home Purchase Deposit
	 	$	60,000	 
	 
	 	 	 	 
	•
	 	Milan Kitchens Design Consultancy
	 	$	700	 
	 
	 	 	 	 
	•
	 	MZ Designs Contracting Consultancy
	 	$	750	 
	 
	 	 	 	 
	•
	 	Janice Anderson Attorney Real Estate Miami
	 	$	600	 
	 
	 	 	 	 
	TOTAL

	 	 	 	$	65,125	 

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8

 

EQUITY AWARDS AND VESTING SCHEDULE

Shares Held

	 	•	 	1,687,261 shares of Company Common Stock.
	 
	 	•	 	5,189 shares of Company Series C Preferred Stock (convertible into 518,900 shares of
Company Common Stock)

Share Options Held (as vested through May 31, 2008

	 	•	 	An Option to purchase 7,317 shares of Company Series C Preferred Stock (convertible into
731,700 shares of Company Common Stock) for a per share exercise price of $0.32 per share.
	 
	 	•	 	An Option to purchase 430,722 shares of Company Common Stock for a per share exercise
price of $0.04 per share.
	 
	 	•	 	An Option to purchase 225,740 shares of Company Common Stock for a per share exercise
price of $0.04 per share.
	 
	 	•	 	An Option to purchase 1,054,102 shares of Company Common Stock for a per share exercise
price of $0.04 per share.
	 
	 	•	 	An Option to purchase 194,603 shares of Company Common Stock for a per share exercise
price of $0.05 per share.
	 
	 	•	 	An Option to purchase 181,629 shares of Company Common Stock for a per share exercise
price of $0.05 per share.

Warrants Held

	 	•	 	A warrant to purchase 64,868 shares of Company Common Stock for a per share exercise
price of $0.0385.
	 
	 	•	 	A warrant to purchase 68,852 shares of Company Common Stock for a per share exercise
price of $0.6728.
	 
	 	•	 	A warrant to purchase 68,852 shares of Company Common Stock for a per share exercise
price of $0.8473.
	 
	 	•	 	A warrant to purchase 68,852 shares of Company Common Stock for a per share
exercise price of $1.0466.

______ Initial

9

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