Document:

EX-4.3

 Exhibit 4.3 

AGREEMENT OF LIMITED PARTNERSHIP 

OF 
 INLAND RESIDENTIAL OPERATING
PARTNERSHIP, L.P. 
 Dated as of February 17, 2015 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
		
	ARTICLE 1 DEFINED TERMS	  	 	1	  
		
	ARTICLE 2 ORGANIZATIONAL MATTERS	  	 	21	  
		 	2.1	  	Formation	  	 	21	  
		 	2.2	  	Name	  	 	21	  
		 	2.3	  	Registered Office and Agent; Principal Office	  	 	22	  
		 	2.4	  	Power of Attorney	  	 	22	  
		 	2.5	  	Term	  	 	23	  
		
	ARTICLE 3 PURPOSE	  	 	24	  
		 	3.1	  	Purpose and Business	  	 	24	  
		 	3.2	  	Powers	  	 	24	  
		
	ARTICLE 4 CAPITAL CONTRIBUTIONS	  	 	25	  
		 	4.1	  	Capital Contributions of the Partners	  	 	25	  
		 	4.2	  	Additional Funds; Restrictions on the General Partner	  	 	26	  
		 	4.3	  	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners	  	 	27	  
		 	4.4	  	Contribution of Proceeds of Issuance of Common Stock	  	 	28	  
		 	4.5	  	Repurchase of Common Stock; Shares-In-Trust	  	 	28	  
		 	4.6	  	No Third-Party Beneficiary	  	 	29	  
		 	4.7	  	No Interest; No Return	  	 	29	  
		 	4.8	  	No Preemptive Rights	  	 	29	  
		 	4.9	  	Special Fees	  	 	30	  
		 	4.10	  	Conversion of Class T Units	  	 	30	  
		
	ARTICLE 5 DISTRIBUTIONS	  	 	30	  
		 	5.1	  	Distributions	  	 	30	  
		 	5.2	  	Qualification as a REIT	  	 	36	  
		 	5.3	  	Withholding	  	 	36	  
		 	5.4	  	Additional Partnership Interests	  	 	37	  
		
	ARTICLE 6 ALLOCATIONS	  	 	37	  
		 	6.1	  	Allocations	  	 	37	  
		 	6.2	  	Revisions to Allocations to Reflect Issuance of Partnership Interests	  	 	37	  
		
	ARTICLE 7 MANAGEMENT AND OPERATIONS OF BUSINESS	  	 	37	  
		 	7.1	  	Management	  	 	37	  
		 	7.2	  	Certificate of Limited Partnership	  	 	42	  
		 	7.3	  	Reimbursement of the General Partner	  	 	43	  
		 	7.4	  	Outside Activities of the General Partner	  	 	44	  
		 	7.5	  	Contracts with Affiliates	  	 	44	  
		 	7.6	  	Indemnification	  	 	45	  
		 	7.7	  	Liability of the General Partner	  	 	47	  

  
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		 	7.8	  	Other Matters Concerning the General Partner	  	 	48	  
		 	7.9	  	Title to Partnership Assets	  	 	48	  
		 	7.10	  	Reliance by Third Parties	  	 	49	  
		 	7.11	  	Loans By Third Parties	  	 	50	  
		
	 ARTICLE 8 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS
	  	 	50	  
		 	8.1	  	Limitation of Liability	  	 	50	  
		 	8.2	  	Management of Business	  	 	50	  
		 	8.3	  	Outside Activities of Limited Partners	  	 	50	  
		 	8.4	  	Return of Capital	  	 	51	  
		 	8.5	  	Rights of Limited Partners Relating to the Partnership	  	 	51	  
		 	8.6	  	Exchange of Class A Units	  	 	51	  
		 	8.7	  	Conversion and Exchange of the Special Limited Partner Interest	  	 	54	  
		
	 ARTICLE 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS
	  	 	55	  
		 	9.1	  	Records and Accounting	  	 	55	  
		 	9.2	  	Fiscal Year	  	 	55	  
		 	9.3	  	Reports	  	 	55	  
		
	 ARTICLE 10 TAX MATTERS
	  	 	56	  
		 	10.1	  	Preparation of Tax Returns	  	 	56	  
		 	10.2	  	Tax Elections	  	 	56	  
		 	10.3	  	Tax Matters Partner	  	 	57	  
		 	10.4	  	Organizational Expenses	  	 	59	  
		 	10.5	  	Withholding	  	 	59	  
		
	 ARTICLE 11 TRANSFERS AND WITHDRAWALS
	  	 	60	  
		 	11.1	  	Transfer	  	 	60	  
		 	11.2	  	Transfer of the General Partner’s General Partner Interest	  	 	61	  
		 	11.3	  	Limited Partners’ Rights to Transfer	  	 	62	  
		 	11.4	  	Substituted Limited Partners	  	 	64	  
		 	11.5	  	Assignees	  	 	65	  
		 	11.6	  	General Provisions	  	 	65	  
		
	 ARTICLE 12 ADMISSION OF PARTNERS
	  	 	67	  
		 	12.1	  	Admission of Successor General Partner	  	 	67	  
		 	12.2	  	Admission of Additional Limited Partners	  	 	68	  
		 	12.3	  	Amendment of Agreement and Certificate of Limited Partnership	  	 	69	  
		
	 ARTICLE 13 DISSOLUTION, LIQUIDATION AND TERMINATION
	  	 	69	  
		 	13.1	  	Dissolution	  	 	69	  
		 	13.2	  	Winding Up	  	 	70	  
		 	13.3	  	Obligation to Contribute Deficit	  	 	72	  
		 	13.4	  	Rights of Limited Partners	  	 	72	  
		 	13.5	  	Notice of Dissolution	  	 	72	  
		 	13.6	  	Termination of Partnership and Cancellation of Certificate of Limited Partnership	  	 	72	  

  
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		 	13.7	 	Reasonable Time for Winding-Up	  	 	72	  
		 	13.8	 	Waiver of Partition	  	 	73	  
		
	 ARTICLE 14 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS
	  	 	73	  
		 	14.1	 	Amendments	  	 	73	  
		 	14.2	 	Meetings of the Partners	  	 	74	  
		
	 ARTICLE 15 CLASS M UNITS
	  	 	75	  
		 	15.1	 	Designation and Number	  	 	75	  
		 	15.2	 	Special Provisions	  	 	76	  
		 	15.3	 	Voting	  	 	77	  
		 	15.4	 	Conversion of Class M Units	  	 	78	  
		 	15.5	 	Profits Interests	  	 	80	  
		
	 ARTICLE 16 GENERAL PROVISIONS
	  	 	82	  
		 	16.1	 	Addresses and Notice	  	 	82	  
		 	16.2	 	Titles and Captions	  	 	82	  
		 	16.3	 	Pronouns and Plurals	  	 	83	  
		 	16.4	 	Further Action	  	 	83	  
		 	16.5	 	Binding Effect	  	 	83	  
		 	16.6	 	Creditors	  	 	83	  
		 	16.7	 	Waiver	  	 	83	  
		 	16.8	 	Counterparts	  	 	83	  
		 	16.9	 	Applicable Law	  	 	83	  
		 	16.10	 	Invalidity of Provisions	  	 	83	  
		 	16.11	 	Entire Agreement	  	 	84	  
		 	16.12	 	Merger	  	 	84	  
		 	16.13	 	No Rights as Stockholders	  	 	84	  

  

					
	EXHIBITS	 		    	
			
	Exhibit A	 	–	    	Partners’ Contributions and Partnership Interests
	Exhibit B	 	–	    	Allocations
	Exhibit C	 	–	    	Certificate of Limited Partnership

  
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 AGREEMENT OF LIMITED PARTNERSHIP 

OF 
 INLAND RESIDENTIAL OPERATING
PARTNERSHIP, L.P. 
 THIS AGREEMENT OF LIMITED PARTNERSHIP OF INLAND RESIDENTIAL OPERATING PARTNERSHIP, L.P. (this
“Agreement”) dated as of February 17, 2015, is entered into among INLAND RESIDENTIAL PROPERTIES TRUST, INC., a Maryland corporation, as general partner (the “General Partner”) and as a Limited Partner, and
INLAND RESIDENTIAL PROPERTIES TRUST SPECIAL LIMITED PARTNER, LLC, a Delaware limited liability company, as a Limited Partner (together with the General Partner in its capacity as a Limited Partner, the “Initial Limited Partners”),
and the Limited Partners party hereto from time to time. 
 RECITALS 

WHEREAS, Inland Residential Operating Partnership, L.P. was formed on December 19, 2013, pursuant to the Revised Uniform Limited
Partnership Act of the State of Delaware and a certificate of limited partnership was filed with the Secretary of State of the State of Delaware (the “Certificate”). 

NOW THEREFORE, in consideration of the mutual covenants herein contained, and other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties do hereby agree as follows: 
 ARTICLE 1 

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

“Act” means the Delaware Revised Uniform Limited Partnership Act, as amended from time to time, and any
successor to such statute. 
 “Additional Limited Partner” means a Person that has executed and
delivered an additional limited partner signature page in the form attached hereto, has been admitted to the Partnership as a Limited Partner pursuant to Section 4.3 hereof and that is shown as such on the books and records of the
Partnership. 
 “Additional Total Return” means for a calendar year (the “Base Calendar
Year”) (a) with respect to the shares of Class A Common Stock, an amount equal to 15% of the product of (i) the sum of (A) the amount by which the per share distributions paid by the General Partner during the Base
Calendar Year on the Class A Common Stock exceed $1.45 plus (B) the per share change in the Value of the Class A Common Stock as of December 31 of the Base Calendar Year over the Value of the Class A Common Stock on
December 31 of the prior calendar year multiplied by (ii) the number of shares of Class A Common Stock outstanding on December 31 of the Base Calendar Year, and (b) with respect to the shares of Class T Common Stock,
an amount equal to 15% of the product of (i) the sum of (A) the amount by which the per share 

 
distributions paid by the General Partner during the Base Calendar Year on the Class T Common Stock exceed $1.45 (minus the distribution and stockholder servicing fee paid per share during
the same period) plus (B) the per share change in the Value of the Class T Common Stock as of December 31 of the Base Calendar Year over the Value of the Class T Common Stock on December 31 of the prior calendar year
multiplied by (ii) the total number of shares of Class T Common Stock outstanding on December 31 of the Base Calendar Year. In each case, none of the per-share distributions may be funded from the proceeds of any Offering.

 “Adjusted Capital Account Deficit” means with respect to any Partner, the negative balance, if any, in such
Partner’s Capital Account as of the end of any relevant fiscal year, determined after giving effect to the following adjustments: 

(a) credit to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to
restore to the Partnership pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Regulations, or (ii) is deemed to be obligated to restore to the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Regulations; and 
 (b) debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations. 
 “Adjustment
Event” has the meaning set forth in Section 15.1(b). 
 “Affected Gain” has the meaning set forth in
subparagraph 4(b) of Exhibit B. 
 “Affiliate” means, 

(a) with respect to any individual Person, any member of the Immediate Family of such Person or a trust established for the
benefit of such member, or 
 (b) with respect to any Entity, any Person which, directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, any such Entity. For purposes of this definition, “control”, when used with respect to any Person, means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

“Agreement” means this Agreement of Limited Partnership, as originally executed and as amended, supplemented or
restated from time to time, as the context requires. 
 “Articles of Incorporation” means the General Partner’s
Articles of Incorporation, filed with the Maryland State Department of Assessments and Taxation, or other organizational document governing the General Partner, as amended, supplemented or restated from time to time. 

“Asset Sale” means any transaction or series of transactions resulting in a liquidation or the sale of all or
substantially all the investments owned directly or indirectly by the General Partner and the distribution of the Net Sales Proceeds therefrom to the Partners whereby: (a) the 

  
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Partnership directly or indirectly sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of or interest in (i) any real estate asset, including through any event
with respect to any real estate asset that gives rise to a significant amount of insurance proceeds or condemnation awards, (ii) any joint venture in which the Partnership is a co-venturer, member or partner, (iii) any real estate-related
loan or portion thereof (including all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments), including through any event with respect to any real estate-related loan or portion thereof that gives rise to a
significant amount of insurance proceeds or similar awards, or (iv) any other investment not previously described in this definition, or any portion thereof; or (b) any joint venture in which the Partnership is a co-venturer, member or
partner directly or indirectly sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of or interest in any investment described in this definition, or any portion thereof. 

“Assignee” means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this
Agreement, but who has not become a Substituted Limited Partner, and who has the rights set forth in Section 11.5. 
 “Available
Cash” means, with respect to the applicable period of measurement (i.e., any period (other than the first period in which this calculation of Available Cash is being made) beginning on the first day of the fiscal year, quarter or other
period commencing immediately after the last day of the fiscal year, quarter or other applicable period for purposes of the prior calculation of Available Cash for or with respect to which a distribution has been made, and ending on the last day of
the fiscal year, quarter or other applicable period immediately preceding the date of the calculation), the excess, if any, as of such date, of 

(a) the gross cash receipts of the Partnership for such period from all sources whatsoever, including the following: 

(i) all rents, revenues, income and proceeds derived by the Partnership from its operations, including distributions received
by the Partnership from any Entity in which the Partnership has an interest; 
 (ii) all proceeds and revenues received by
the Partnership on account of any sales of any Partnership property or as a refinancing of or payment of principal, interest, costs, fees, penalties or otherwise on account of any borrowings or loans made by the Partnership or financings or
refinancings of any property of the Partnership; 
 (iii) the amount of any insurance proceeds and condemnation awards
received by the Partnership; 
 (iv) all capital contributions and loans received by the Partnership from its Partners; 

(v) all cash amounts previously reserved by the Partnership, to the extent such amounts are no longer needed for the specific
purposes for which such amounts were reserved; and 
 (vi) the proceeds of liquidation of the Partnership’s property in
accordance with this Agreement; 

  
 3 

 over 

(b) the sum of the following: 

(i) all operating costs and expenses paid, including taxes and other expenses of the properties directly and indirectly held by
the Partnership and capital expenditures made during such period (without deduction, however, for any capital expenditures, charges for Depreciation or other expenses not paid in cash or expenditures from reserves described in clause
(viii) below); 
 (ii) all costs and expenses paid during such period in connection with the sale or other disposition,
or financing or refinancing, of the property directly or indirectly held by the Partnership or the recovery of insurance or condemnation proceeds; 

(iii) all fees paid under this Agreement; 

(iv) all debt service, including principal and interest, paid during such period on all indebtedness (including under any line
of credit) of the Partnership; 
 (v) all capital contributions, advances, reimbursements, loans or similar payments made to
any Person in which the Partnership has an interest; 
 (vi) all loans made by the Partnership in accordance with the terms
of this Agreement; 
 (vii) all reimbursements paid to the General Partner or its Affiliates during such period; and 

(viii) the amount of any new reserve or reserves or increase in reserves established during such period which the General
Partner determines is necessary or appropriate in its sole and absolute discretion. 
 Notwithstanding the foregoing, Available Cash shall not include any
cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement of the dissolution and liquidation of the Partnership. 

“Business Combination” has the meaning set forth in Section 7.1(a)(iii)(D). 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York
are authorized or required by law to close. 
 “Business Management Agreement” means the Business Management
Agreement dated as of February 17, 2015, by and among the Partnership, the General Partner and the Business Manager, as the same may be amended, supplemented or restated from time to time. 

  
 4 

 “Business Manager” means Inland Residential Business Manager &
Advisor, Inc., its successors and assignees. 
 “Capital Account” means with respect to any Partner, the Capital
Account maintained for such Partner in accordance with the following provisions: 
 (a) to each Partner’s Capital
Account there shall be credited; 
 (i) such Partner’s Capital Contributions; 

(ii) such Partner’s distributive share of Net Income, Net Property Gain and any items in the nature of income or gain
which are specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and 
 (iii) the amount of
any Partnership liabilities assumed by such Partner or which are secured by any asset distributed to such Partner; 
 (b) to
each Partner’s Capital Account there shall be debited; 
 (i) the amount of cash and the Gross Asset Value of any
property distributed to such Partner pursuant to any provision of this Agreement; 
 (ii) such Partner’s distributive
share of Net Losses, Net Property Loss and any items in the nature of expenses or losses which are specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B; and 

(iii) the amount of any liabilities of such Partner assumed by the Partnership or which are secured by any asset contributed by
such Partner to the Partnership; and 
 (c) if all or a portion of a Partnership Interest is transferred in accordance with
the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest. 

The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Sections
1.704-1(b) and 1.704-2 of the Regulations, and shall be interpreted and applied in a manner consistent with such Regulations. If the General Partner shall reasonably determine that it is prudent to modify the manner in which the Capital Accounts, or
any debits or credits thereto (including debits or credits relating to liabilities which are secured by contributed or distributed assets or which are assumed by the Partnership, the General Partner or any Limited Partner) are computed in order to
comply with such Regulations, the General Partner may make such modification; provided, that, all allocations of Partnership income, gain, loss and deduction continue to have “substantial economic effect” within the meaning of
Section 704(b) of the Code and that no Limited Partner is materially adversely affected by any such modification. 

  
 5 

 “Capital Contribution” means, with respect to any Partner, any cash, cash
equivalents or the Gross Asset Value of property which such Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof. 

“Capital Transaction” means any sale, or other disposition (other than a deemed disposition pursuant to
Section 708(b)(1)(B) of the Code and the Regulations thereunder) of all or substantially all of the assets and properties of the Partnership or a related series of transactions that, taken together, result in the sale or other disposition of
all or substantially all of the assets and properties of the Partnership. 
 “Cash Amount” means an amount of cash
per Partnership Unit equal to the value of one share of Common Stock as determined under the applicable Exchange Rights Agreement on the Valuation Date of the Common Stock Amount. 

“Cash Available for Distribution” means the Available Cash other than Net Sales Proceeds. 

“Certificate” has the meaning set forth in the Recitals. 

“Claims” has the meaning set forth in Section 7.6(a)(i). 

“Class” means a class of Common Stock or Partnership Units, as the context may require. 

“Class A Common Stock” means the Common Stock classified as “Class A” shares in the Articles of
Incorporation. 
 “Class A Unit” means a Partnership Unit entitling the holder thereof to the rights of a holder of
a Class A Unit as provided in this Agreement, and the Class A Units corresponds with the Class A Common Stock. 

“Class A Unit Redemption Amount” means either the Cash Amount or the Common Stock Amount, as selected by the
Partnership pursuant to Section 8.6 (a) or the General Partner pursuant to Section 8.6(b) hereof. 
 “Class A Unit
Redemption Right” has the meaning provided in Section 8.6(a) hereof. 
 “Class M Economic Capital Account
Balances” means the Capital Account balances of the Class M Unit holders to the extent attributable to their ownership of Class M Units reduced by any forfeiture allocations in accordance with Section 15.05(d) due to the forfeiture
of any Class M Units. 
 “Class M Unit” means a Partnership Unit entitling the holder thereof to the rights of a
holder of a Class M Unit as provided in this Agreement, and the Class M Units correspond with the Class A Units. 
 “Class M
Unit Economic Balance” means with respect to a Limited Partner holding Class M Units, an amount equal to the quotient of (a) the Class M Economic Capital Account Balance of such Limited Partner divided by (b) the number
of Class M Units owned by such Limited Partner. 

  
 6 

 “Class T Common Stock” means the Common Stock classified as “Class
T” shares in the Articles of Incorporation. 
 “Class T Unit” means a Partnership Unit entitling the holder
thereof to the rights of a holder of a Class T Unit as provided in this Agreement, and the Class T Units correspond with the Class T Common Stock. 

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

“Commission” means the Securities and Exchange Commission. 

“Common Stock” means the common stock of the General Partner, $.001 par value per share. Common Stock may be issued in
one or more classes or series in accordance with the terms of the Articles of Incorporation, including Class A Common Stock and Class T Common Stock. If, at any time, there is more than one class or series of Common Stock, the term “Common
Stock” shall, as the context requires, be deemed to refer to the class or series of Common Stock that correspond to the class or series of Partnership Interests for which the reference to Common Stock is made. 

“Common Stock Amount” means that number of shares of a Class of Common Stock equal to the product of (a) the
number of OP Units of the corresponding Class offered for exchange by an exchanging Partner, multiplied by (b) the Exchange Factor as of the Valuation Date, provided, however, that if the General Partner or the Partnership
issues to all holders of such Class of Common Stock rights, options, warrants or convertible, exercisable or exchangeable securities entitling the stockholders to subscribe for or purchase Common Stock, or any other securities or property
(collectively, the “rights”), then the Common Stock Amount shall also include the rights that a holder of that number of shares of such Class of Common Stock would be entitled to receive. 

“Consent” means the consent or approval of a proposed action by a Partner given in accordance with Section 14.2
hereof. 
 “Consent of the Limited Partners” means the Consent of Limited Partners (excluding for this purpose any
Partnership Interests held by the General Partner, any other Person of which the General Partner owns or controls more than fifty percent (50%) of the voting interests and any Person directly or indirectly owning or controlling more than fifty
percent (50%) of the outstanding voting interests of the General Partner) holding Percentage Interests that are greater than fifty percent (50%) of the aggregate Percentage Interests of all Limited Partners who are not excluded for the
purposes hereof. 
 “Constituent Person” has the meaning set forth in Section 16.4(d) hereof. 

  
 7 

 “Contributed Property” means each property, partnership interest,
contract right or other asset, in such form as may be permitted by the Act, contributed or deemed contributed to the Partnership by any Partner, including any interest in any successor partnership occurring as a result of a termination of the
Partnership pursuant to Section 708 of Code. 
 “Conversion Date” has the meaning set forth in
Section 16.4(a) hereof. 
 “Debt” means, as to any Person, as of any date of determination and without
duplication, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services; (b) all amounts owed by such Person to banks or other Persons in respect of reimbursement obligations under
letters of credit, surety bonds and other similar instruments guaranteeing payment or other performance of obligations by such Person; (c) all indebtedness for borrowed money or for the deferred purchase price of property or services secured by
any lien on any property owned by such Person, to the extent attributable to such Person’s interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (d) obligations of such Person
incurred in connection with entering into a lease which, in accordance with generally accepted accounting principles, should be capitalized. 

“Deferred Liquidity Promote” has the meaning set forth in Section 5.1(d)(iii)(B). 

“Deferred Listing Promote” has the meaning set forth in Section 5.1(d)(iii)(A). 

“Depreciation” means, with respect to any asset of the Partnership for any fiscal year or other period, the
depreciation, depletion, amortization or other cost recovery deduction, as the case may be, allowed or allowable for federal income tax purposes in respect of such asset for such fiscal year or other period; provided, however, that
except as otherwise provided in Section 1.704-2 of the Regulations, if there is a difference between the Gross Asset Value (including the Gross Asset Value, as increased pursuant to paragraph (d) of the definition of Gross Asset Value) and
the adjusted tax basis of such asset at the beginning of such fiscal year or other period, Depreciation for such asset shall be an amount that bears the same ratio to the beginning Gross Asset Value of such asset as the federal income tax
depreciation, depletion, amortization or other cost recovery deduction for such fiscal year or other period bears to the beginning adjusted tax basis of such asset; provided further, however, that if the federal income tax
depreciation, depletion, amortization or other cost recovery deduction for such asset for such fiscal year or other period is zero, Depreciation of such asset shall be determined with reference to the beginning Gross Asset Value of such asset using
any reasonable method selected by the General Partner. 
 “Distribution Date” has the meaning set forth in Section
5.1(a). 
 “Economic Hurdle” has the meaning set forth in Section 15.2(a)(ii)(A). 

“Effective Date” means the date upon which the Registration Statement relating to the General Partner’s initial
primary offering of Common Stock has been declared effective by the Commission. 

  
 8 

 “Entity” means any general partnership, limited partnership, corporation,
joint venture, trust, business trust, real estate investment trust, limited liability company, limited liability partnership, cooperative or association. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding
provisions of succeeding laws). 
 “Exchange Factor” means 1.0; provided, however, that if the General
Partner: (a) declares or pays a dividend on its outstanding Common Stock in Common Stock or makes a distribution to all holders of its outstanding Common Stock in Common Stock; (b) subdivides its outstanding Common Stock; or
(c) combines its outstanding Common Stock into a smaller number of shares of Common Stock, the Exchange Factor shall be adjusted by multiplying the Exchange Factor by a fraction, the numerator of which shall be the number of shares of Common
Stock issued and outstanding on the record date for such dividend, contribution, subdivision or combination (assuming for such purpose that such dividend, distribution, subdivision or combination has occurred as of such time), and the denominator of
which shall be the actual number of shares of Common Stock (determined without the above assumption) issued and outstanding on the record date for such dividend, distribution, subdivision or combination. Any adjustment to the Exchange Factor shall
become effective immediately after the effective date of such event retroactive to the record date, if any, for such event. 

“Exchange Right” means the exchange right of a Limited Partner described in Section 8.6 and to be set forth in
one or more Exchange Rights Agreements. 
 “Exchange Rights Agreements” has the meaning set forth in Section 8.6(h).

 “FINRA” means the Financial Industry Regulatory Authority. 

“General Partner” means Inland Residential Properties Trust, Inc., a Maryland corporation, and any successor as
general partner of the Partnership. 
 “General Partner Interest” means a Partnership Interest held by the General
Partner, in its capacity as general partner. A General Partner Interest may be expressed as a number of GP Units. 
 “GP
Unit” means a Partnership Unit which is designated as a GP Unit of the Partnership. 
 “Gross Asset
Value” means, with respect to any asset of the Partnership, such asset’s adjusted basis for federal income tax purposes, except as follows: 

(a) the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value
of such asset, without reduction for liabilities, as determined by the contributing Partner and the Partnership on the date of contribution thereof; 

(b) if the General Partner determines that an adjustment is necessary or appropriate to reflect the relative economic interests
of the Partners, the Gross Asset Values of all Partnership assets shall be adjusted in accordance with Sections 1.704-1(b)(2)(iv)(f) 

  
 9 

 
and (g) of the Regulations to equal their respective gross fair market values, without reduction for liabilities, as reasonably determined by the General Partner, as of the following times:

 (i) a Capital Contribution (other than a de minimis Capital Contribution) to the Partnership by a new or existing
Partner as consideration for a Partnership Interest; 
 (ii) the distribution by the Partnership to a Partner of more than a
de minimis amount of Partnership assets as consideration for the repurchase or redemption of a Partnership Interest; 

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

(iv) the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision
of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner capacity or in anticipation of becoming a Partner; 

(c) the Gross Asset Values of Partnership assets distributed to any Partner shall be the gross fair market values of such
assets (taking Section 7701(g) of the Code into account) without reduction for liabilities, as determined by the General Partner as of the date of distribution; and 

(d) the Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted
basis of such assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations (as set
forth in Exhibit B); provided, however, that Gross Asset Values shall not be adjusted pursuant to this paragraph (d) to the extent that the General Partner determines that an adjustment pursuant to paragraph (b) above
is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this paragraph (d). 
 At all times,
Gross Asset Values shall be adjusted by any Depreciation taken into account with respect to the Partnership’s assets for purposes of computing Net Income and Net Loss. 

“Gross Proceeds” means the aggregate purchase price of all shares of Common Stock sold for the account of the General
Partner through an Offering, without deduction for Organization and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any share of Common Stock for which reduced selling commissions are paid to (i) Inland
Securities Corporation or any successor dealer manager to the General Partner or (ii) a broker-dealer (where net proceeds to the General Partner are not reduced) shall be deemed to be the full amount of the offering price per share of the
applicable Common Stock pursuant to the Registration Statement for such Offering without reduction. 

  
 10 

 “Incapacity” or “Incapacitated” means, 

(a) as to any individual who is a Partner, death, total physical disability or entry by a court of competent jurisdiction
adjudicating him incompetent to manage his person or his estate; 
 (b) as to any corporation which is a Partner, the filing
of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; 
 (c) as to any
partnership which is a Partner, the dissolution and commencement of winding up of the partnership; 
 (d) as to any limited
liability company which is a Partner, the dissolution and commencement of winding up of the limited liability company; 
 (e)
as to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership; 

(f) as to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee);
or 
 (g) as to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when: 

(i) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy,
insolvency or other similar law now or hereafter in effect; 
 (ii) the Partner is adjudged as bankrupt or insolvent, or a
final and nonappealable order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Partner; 

(iii) the Partner executes and delivers a general assignment for the benefit of the Partner’s creditors; 

(iv) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed
against the Partner in any proceeding of the nature described in clause (ii) above; 
 (v) the Partner seeks, consents
to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or any substantial part of the Partner’s properties; 

(vi) any proceeding seeking liquidation, reorganization or other relief of or against such Partner under any bankruptcy,
insolvency or other similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof; 

  
 11 

 (vii) the appointment without the Partner’s consent or acquiescence of a
trustee, receiver or liquidator has not been vacated or stayed within ninety (90) days of such appointment; or 
 (viii)
an appointment referred to in clause (vii) which has been stayed is not vacated within ninety (90) days after the expiration of any such stay. 

“Include”, “includes” and “including” shall be construed as if
followed by the phrase “without limitation”. 
 “Included Assets” means the Investments owned as of the
Termination Date. 
 “Indemnitee” means 

(a) any Person made a party to a proceeding by reason of: 

(i) its status as the General Partner, 

(ii) its status as a Limited Partner, 

(iii) its status as a business manager or investment advisor to the General Partner, 

(iv) its status as a trustee, director or officer of the Partnership, the General Partner, or the investment advisor to the
General Partner, 
 (v) its status as a director, trustee, member or officer of any other Entity, each Person serving in such
capacity at the request of the Partnership or the General Partner, or 
 (vi) his or its liabilities, pursuant to a loan
guarantee or otherwise, for any indebtedness of the Partnership or any Subsidiary of the Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken assets subject to); and 

(b) such other Persons (including Affiliates of the General Partner, a Limited Partner or the Partnership) as the General
Partner may designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion. 

“Initial Limited Partners” has the meaning set forth in the recitals. 

“Investment” or “Investments” means any investment or investments by the Partnership, directly
or indirectly, in Properties, Loans or other Permitted Investments. 
 “Investment Liquidity Promote” has the
meaning set forth in Section 5.1(e). 
 “Investment Liquidity Date” means the date on which an Investment Liquidity
Event is consummated. 

  
 12 

 “Investment Liquidity Event” means: (a) an Asset Sale; or (b) a
Merger. 
 “IRS” means the Internal Revenue Service of the United States (or any successor organization). 

“Liability Shortfall” has the meaning set forth in subparagraph 4(d) of Exhibit B. 

“Lien” means any lien, security interest, mortgage, deed of trust, charge, claim, encumbrance, pledge, option, right
of first offer or first refusal and any other right or interest of others of any kind or nature, actual or contingent, or other similar encumbrance of any nature whatsoever. 

“Limited Partner” means, prior to the admission of the first Additional Limited Partner to the Partnership, each of
the Initial Limited Partners, and thereafter any Person named as a Limited Partner in Exhibit A, as such Exhibit may be amended from time to time, upon the execution and delivery by such Person of an additional limited partner signature page,
or any Substituted Limited Partner or Additional Limited Partner, in such Person’s capacity as a Limited Partner of the Partnership. 

“Limited Partner Interest” means a Partnership Interest of a Limited Partner in the Partnership representing a
fractional part of the Partnership Interests of all Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled, as provided in this Agreement, together with all obligations of such Person to comply
with the terms and provisions of this Agreement. A Limited Partner Interest may be expressed as a number of Partnership Units (other than GP Units). 

“Liquidating Event” has the meaning set forth in Section 13.1(b) hereof. 

“Liquidator” has the meaning set forth in Section 13.2(a)(iii) hereof. 

“Liquidity Event” means the first to occur of the following: (i) an OP Unit Transaction, or (ii) a Listing.

 “Listing” means the listing of any class of shares of Common Stock on a national securities exchange. 

“Listing Promote” has the meaning set forth in Section 5.1(c). 

“Loans” means mortgage loans and other types of debt financing investments made by the Partnership, either directly or
indirectly, including through ownership interests in a joint venture or other entity and including mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests,
and participations in such loans. 
 “Management Agreement” means the Master Real Estate Management Agreement among
the General Partner, the Partnership and Inland Residential Real Estate Services, LLC, a Delaware limited liability company, as the manager. 

  
 13 

 “Market Value” means: (a) in the case of a Listing, the weighted
average closing price per share of Common Stock over the Measurement Period multiplied by the number of shares of Common Stock outstanding on the day trading first commences or commenced upon a Listing; (b) in the case of a Merger, the value
accorded to one share of Common Stock in the applicable transaction documents governing the Merger multiplied by the number of shares of Common Stock outstanding immediately prior to the effective time of the Merger; and (c) in the case of an
Asset Sale, the Net Sales Proceeds distributed to the holders of Common Stock. Notwithstanding (a) above, if a definitive agreement relating to a Merger or an Asset Sale shall be entered into after a Listing, but before the Measurement Period
shall be completed, then Market Value shall be determined according to (b) or (c) above, as applicable. 
 “Measurement
Period” means the period beginning the date that is one hundred eighty (180) calendar days after the date of Listing, and continuing for a period of thirty (30) consecutive calendar days. 

“Merger” means any merger, reorganization, business combination, share exchange or acquisition by any Person or
related group of Persons of beneficial ownership of all or substantially all the shares of Common Stock in one or more related transactions, or another similar transaction involving the General Partner, pursuant to which the holders of Common Stock
receive cash or the securities of another issuer that are listed on a national securities exchange, as full or partial consideration for their shares of Common Stock. 

“Net Income” or “Net Loss” means, for each fiscal year or other applicable period, an amount
equal to the Partnership’s taxable income or loss for such year or period as determined for federal income tax purposes by the General Partner, determined in accordance with Section 703(a) of the Code (for this purpose, all items of
income, gain, loss or deduction required to be stated separately pursuant to Section 703(a) of the Code shall be included in taxable income or loss), adjusted as follows: 

(a) by including as an item of gross income any tax-exempt income received by the Partnership and not otherwise taken into
account in computing Net Income or Net Loss; 
 (b) by treating as a deductible expense any expenditure of the Partnership
described in Section 705(a)(2)(B) of the Code (or which is treated as a Section 705(a)(2)(B) expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) and not otherwise taken into account in computing Net Income or Net
Loss, including amounts paid or incurred to organize the Partnership (unless an election is made pursuant to Section 709(b) of the Code) or to promote the sale of interests in the Partnership and by treating deductions for any losses incurred
in connection with the sale or exchange of Partnership property disallowed pursuant to Section 267(a)(1) or 707(b) of the Code as expenditures described in Section 705(a)(2)(B) of the Code; 

(c) by taking into account Depreciation in lieu of depreciation, depletion, amortization and other cost recovery deductions
taken into account in computing taxable income or loss; 

  
 14 

 (d) by computing gain or loss resulting from any disposition of Partnership
property with respect to which gain or loss is recognized for federal income tax purposes by reference to the Gross Asset Value of such property rather than its adjusted tax basis; 

(e) if an adjustment of the Gross Asset Value of any Partnership asset which requires that the Capital Accounts of the Partners
be adjusted pursuant to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations, by taking into account the amount of such adjustment as if such adjustment represented additional Net Income or Net Loss pursuant to Exhibit B;

 (f) by excluding Net Property Gain and Net Property Loss; and 

(g) by not taking into account in computing Net Income or Net Loss items separately allocated to the Partners pursuant to
paragraphs 2 and 3 of Exhibit B. 
 “Net Investment” means (i) as it relates to the Stockholders, the
total amount of Gross Proceeds raised in all Offerings; and (ii) as it relates to the Limited Partners (other than the General Partner in its capacity as a Limited Partner) the total amount of Capital Contributions. 

“Net Investment Balance” means the excess, if any, of: (a) the Net Investment, over (b) in each case,
without duplication, (i) as it relates to the Stockholders, all prior distributions to Stockholders of Net Sales Proceeds and any amounts paid by the General Partner to repurchase shares of Common Stock pursuant to the General Partner’s
plan for redemption of Common Stock or otherwise; and (ii) as it relates to the Limited Partners, all distributions pursuant to Section 5.1(b)(i) (other than distributions to the General Partner in its capacity as a Limited Partner), and
all proceeds or property used to redeem Limited Partner Interests (except those held directly or indirectly the General Partner). 

“Net Property Gain” or “Net Property Loss” means, for each fiscal year or other applicable
period, an amount equal to the Partnership’s taxable gain or loss for such year or period from Sales, including the amount of any adjustment of the Gross Asset Value of any Real Estate Asset which requires that the Capital Accounts of the
Partners be adjusted pursuant to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations. For these purposes, the Gross Asset Value of the Real Estate Assets may reflect the market capitalization of the General Partner (increased by
the amount of any Partnership liabilities). 
 “Net Sales Proceeds” has the meaning set forth in the Articles of
Incorporation. 
 “Nonrecourse Deductions” has the meaning set forth in Sections 1.704-2(b)(1) and 1.704-2(c) of the
Regulations. 
 “Nonrecourse Liabilities” has the meaning set forth in Section 1.704-2(b)(3) of the
Regulations. 
 “Notice of Redemption” has the meaning provided in Section 8.6(a) hereof. 

“Offer” has the meaning set forth in Section 11.2(c)(i). 

  
 15 

 “Offering” means the public offering of shares of any class of Common
Stock pursuant to a Registration Statement on Form S-11 or any other applicable form prescribed by the Commission. 
 “OP
Unit” means a Class A Unit or a Class T Unit, or the Class A Units and Class T Units collectively, as the context requires. 

“OP Unit Economic Balance” means the quotient of (a) the aggregate Capital Account balance attributable to the OP
Units outstanding, plus the amount of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to the ownership of OP Units and computed on a hypothetical basis after taking into account all allocations through
the date on which any allocation is made under subparagraph 1(c)(ii) of Exhibit B, divided by (b) the number of OP Units outstanding; provided, that the OP Unit Economic Balance shall be determined separately for each Class
of OP Units. 
 “OP Unit Transaction” means a transaction to which the Partnership or the General Partner shall be a
party, including a merger, consolidation, unit exchange, self-tender offer for all or substantially all OP Units or other business combination or reorganization, or sale of all or substantially all of the Partnership’s assets (but excluding any
transaction which constitutes an Adjustment Event and any merger in which the General Partner is the surviving entity) in each case as a result of which OP Units shall be exchanged for or converted into the right, or the holders of such Units shall
otherwise be entitled, to receive cash, securities or other property or any combination thereof. 
 “Organization and Offering
Expenses” means all expenses incurred by or on behalf of the General Partner in connection with or in preparing the General Partner for registration of and subsequently offering and distributing any class of its shares of Common Stock
to the public, whether incurred before, on or after the date of the Business Management Agreement, which may include total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); any expense
allowance granted by the General Partner to the underwriter or any reimbursement of expenses of the underwriter by the General Partner; expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges
of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and expenses of qualification of the sale of the securities under federal and state laws, including taxes and fees, accountants’ and attorneys’ fees. 

“Partner” means the General Partner or a Limited Partner, and “Partners” means the General Partner and the
Limited Partners collectively. Solely for purposes of Exhibit B, “Partner” shall include the Special Limited Partner. 

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

“Partner Nonrecourse Debt Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the
Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Section 1.704-2(i)(3) of the Regulations. 

  
 16 

 “Partner Nonrecourse Deductions” has the meaning set forth in Sections
1.704-2(i)(1) and (2) of the Regulations, and the amount of Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Section 1.704-2(i)(2)
of the Regulations. 
 “Partnership” means the limited partnership formed under the Act and pursuant to this
Agreement, and any successor thereto. 
 “Partnership Interest” means an ownership interest in the Partnership
representing a Capital Contribution by either a Limited Partner or the General Partner or the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner
capacity or in anticipation of becoming a Partner, and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the
terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership Units. 
 “Partnership
Minimum Gain” has the meaning set forth in Section 1.704-2(b)(2) of the Regulations, and the amount of Partnership Minimum Gain, as well as any net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year
shall be determined in accordance with the rules of Section 1.704-2(d) of the Regulations. 
 “Partnership Record
Date” means the record date established by the General Partner for a distribution pursuant to Section 5.1(a) hereof, which record date shall be the same as the record date established by the General Partner for a distribution to
its stockholders of some or all of its portion of such distribution. 
 “Partnership Unit” means a fractional,
undivided share of the Partnership Interests of all Partners issued hereunder. Partnership Units consist of GP Units, Class A Units, Class T Units and Class M Units and any classes or series of Partnership Units established after the date
hereof. The number of Partnership Units outstanding and the Percentage Interests in the Partnership represented by such Partnership Units are set forth in Exhibit A, as such Exhibit may be amended from time to time. The ownership of
Partnership Units shall be evidenced by such form of certificate for Partnership Units as the General Partner adopts from time to time unless the General Partner determines that the Partnership Units shall be uncertificated securities. 

“Partnership Year” means the fiscal year of the Partnership, as set forth in Section 9.2 hereof. 

“Percentage Interest” means, as to a Partner, the fractional part of the Partnership Interests owned by such Partner
and expressed as a percentage as specified in Exhibit A, as such Exhibit may be amended from time to time. 
 “Permitted
Investments” means all investments (other than Properties and Loans) in which the Partnership acquires an interest, either directly or indirectly, including through ownership interests in a joint venture or other entity, pursuant to the
Certificate, this Agreement and the investment objectives and policies adopted by the General Partner from time to time, other than short-term investments acquired for purposes of cash management, and that allow the General Partner to meet the REIT
Requirements. 

  
 17 

 “Permitted Transferee” means any person to whom Partnership Units are
Transferred in accordance with Section 11.3. 
 “Person” means an individual or Entity. 

“Precontribution Gain” has the meaning set forth in subparagraph 4(c) of Exhibit B. 

“Priority Return” means a 6.0% cumulative, non-compounded, pre-tax annual return (based on a 365-day year). 

“Priority Return Balance” means, as of any date, the excess, if any, of (a) a Priority Return from the Effective
Date until such Distribution Date on the Net Investment Balance (calculated like simple interest on a daily basis based on a 365-day year), over (b) distributions made under Sections 5.1(a) and (b)(ii); provided, however, that for
purposes of calculating the Priority Return Balance, the Net Investment Balance shall be determined on a daily basis. 

“Property” or “Properties” means any real property or properties transferred or conveyed to
the Partnership or any subsidiary of the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a joint venture or partnership in which the Partnership is, directly or indirectly, a co-venturer
or partner. 
 “PTP Safe Harbors” has the meaning set forth in Section 11.6(f). 

“Real Estate Assets” means any investment by the Partnership in unimproved and improved Real Property (including fee
or leasehold interests, options and leases), directly, through one or more subsidiaries or through a joint venture (net of any interest held in such investment by a partner or member of a joint venture unaffiliated with the Partnership). 

“Real Property” means (i) land, (ii) rights in land (including leasehold interests), and (iii) any
buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land. 

“Redeeming Limited Partner” has the meaning provided in Section 8.6(a) hereof. 

“Registration Statement” means a Registration Statement filed on the applicable form prescribed by the Commission and
filed by the General Partner with the Commission, and any amendments thereof at any time made, relating to the Common Stock. 

“Regulations” means the final, temporary or proposed income tax regulations promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 “Regulatory
Allocations” means the allocations set forth in paragraph 2 of Exhibit B. 
 “REIT” means a real
estate investment trust as defined in Section 856 of the Code. 

  
 18 

 “REIT Requirements” has the meaning set forth in Section 5.2. 

“Restricted Class M Units” has the meaning set forth in Section 15.2(a)(i) hereof. 

“Safe Harbor” has the meaning set forth in Section 10.2(d). 

“Safe Harbor Election” has the meaning set forth in Section 10.2(d). 

“Safe Harbor Interests” has the meaning set forth in Section 10.2(d). 

“Sales” has the meaning set forth in the Articles of Incorporation. 

“Securities” has the meaning set forth in Section 4.2(b). 

“Special Fees” means fees or expenses that are required or intended to be borne entirely or disproportionately by one
or more particular Classes of OP Units, including but not limited to, selling commissions, dealer manager fees and distribution and stockholder servicing fees. 

“Special Limited Partner” means Inland Residential Properties Trust Special Limited Partner, LLC, a Delaware limited
liability company, which shall be a limited partner of the Partnership and recognized as such under applicable Delaware law, but not a “Limited Partner” within the meaning of this Agreement. 

“Special Limited Partner Interest” means the interest of the Special Limited Partner in the Partnership representing
its right as the holder of an interest in distributions described in Sections 5.1(b)(iii)(A), (c), (d) and (e) (and any corresponding allocations of income, gain, loss and deduction under this Agreement). 

“Specified Redemption Date” shall mean with respect to each written notice of redemption, the first business day of a
month occurring on or after 60 calendar days from receipt by the General Partner of such written notice of redemption. 

“Sponsor” means Inland Real Estate Investment Corporation, a Delaware corporation. 

“Stockholder” means a holder of Common Stock. 

“Stockholder Distributions” means any distributions of money or other property by the General Partner to Stockholders,
including distributions that may constitute a return of capital for U.S. federal income tax purposes, with the exception of distributions paid on shares of Common Stock repurchased or redeemed by the General Partner. 

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company or other
entity of which a majority of (a) the voting power of the voting equity securities; or (b) the outstanding equity interests (whether or not voting), is owned, directly or indirectly, by such Person. 

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

  
 19 

 “Surviving General Partner” has the meaning set forth in Section
11.2(d)(i)(A). 
 “Tax Allocations” means the allocations set forth in paragraph 4 of Exhibit B. 

“Tax Items” has the meaning set forth in subparagraph 4(a) of Exhibit B. 

“Termination” means a Termination Without Cause and a Termination For Managerial Cause. 

“Termination Base Promote” has the meaning set forth in Section 5.1(d)(i). 

“Termination Date” means the date of Termination. 

“Termination For Managerial Cause” means the termination of the Business Management Agreement by the Business Manager
due to a Change of Control (as defined in the Business Management Agreement) or breach of a material term or condition of the Business Management Agreement by the General Partner and the General Partner has not cured such breach within 30 days of
written notice thereof or, in the case of any breach that cannot be cured within 30 days by reasonable effort, has not taken all necessary action within a reasonable time period to cure such breach. 

“Termination Liquidity Promote” has the meaning set forth in Section 5.1(d)(ii)(B). 

“Termination Listing Promote” has the meaning set forth in Section 5.1(d)(ii)(A). 

“Termination Promote” means the Termination Base Promote, the Termination Liquidity Promote, the Termination Listing
Promote, the Deferred Liquidity Promote or the Deferred Listing Promote. 
 “Termination Without Cause” means the
termination of the Business Management Agreement, without Cause (as defined in the Business Management Agreement) or penalty, by the General Partner upon a vote of a majority of the Independent Directors (as defined in the Business Management
Agreement) of the General Partner as provided for in the Business Management Agreement. 
 “Transaction” has the
meaning set forth in Section 11.2(c). 
 “Transfer” as a noun, means any sale, assignment, conveyance, pledge,
hypothecation, gift, encumbrance or other transfer, and as a verb, means to sell, assign, convey, pledge, hypothecate, give, encumber or otherwise transfer. 

“Unrestricted Class M Units” has the meaning set forth in Section 15.2(a)(ii) hereof. 

“Valuation Date” means the date of receipt by the Partnership and the General Partner of notice from an exchanging
Partner that such Partner is exercising its Exchange Rights or, if such date is not a Business Day, the first Business Day thereafter. 

  
 20 

 “Value” means, solely with respect to Class M Units, (a) during the
General Partner’s primary offering, $22.81 per share of Class A Common Stock (the gross offering price for a share of Class A Common Stock net of selling commissions and the dealer manager fee), (b) after the primary offering is completed,
unless required by the applicable rules and regulations promulgated by FINRA (i) in a follow-on offering, the gross offering price for a share of Class A Common Stock less any selling commissions and dealer manager fees or (ii) in the absence of a
follow-on offering, the estimated value of the shares of Class A Common Stock that the General Partner publishes from time to time in accordance with FINRA rules and regulations to assist broker dealers to satisfy their reporting obligations for
customer account statement purposes, (iii) in connection with any merger or sale, the actual value accorded to a share of Class A Common Stock, or (iv) if the shares of Class A Common Stock are listed, (A) for purposes of the definition of
Additional Total Return and Section 15.1(a), the volume weighted average closing price of a share of Class A Common Stock for the last thirty trading days of the current year, or such shorter period as the shares of Common Stock have been listed,
during the current year, or (B) for purposes of Section 15.4(b)(ii)(y), the volume weighted average closing price of a share of Class A Common Stock for the ten trading days immediately prior to the contribution date. 

“Withheld Amount” means any amount required to be withheld by the Partnership with respect to a Limited Partner and
paid over to any taxing authority as a result of any allocation or distribution of income to a Limited Partner or any other transaction. 

ARTICLE 2 
 ORGANIZATIONAL MATTERS

  

	2.1	Formation 

 The General Partner has formed the Partnership by filing the Certificate on
December 19, 2013 in the office of the Delaware Secretary of State. The Partnership is a limited partnership organized pursuant to the provision of the Act and upon the terms and conditions set forth in this Agreement. Except as expressly
provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes.

  

	2.2	Name 

 The name of the Partnership is Inland Residential Operating Partnership, L.P. The
Partnership’s business may be conducted under any other name or names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited Partnership”, “LP”,
“Ltd.” or similar words, phrases or letters shall be included in the Partnership’s name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its sole and absolute
discretion may change the name of the Partnership and shall notify the Limited Partners of such change in the next regular communication to the Limited Partners. 

  
 21 

	2.3	Registered Office and Agent; Principal Office 

 The address of the registered office of
the Partnership in the State of Delaware and the name and address of the registered agent for service of process on the Partnership in the State of Delaware is Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808. The
principal office of the Partnership shall be 2901 Butterfield Road, Oak Brook, Illinois 60523, or such other place as the General Partner may from time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such
other place or places within or outside the State of Delaware as the General Partner deems advisable. 
  

	2.4	Power of Attorney 

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

(i) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices 

(A) all certificates, documents and other instruments (including this Agreement and the Certificate and all amendments or
restatements thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners
have limited liability) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property, including any documents necessary or advisable to convey any Contributed Property to the
Partnership; 
 (B) all instruments that the General Partner or any Liquidator deems appropriate or necessary to reflect any
amendment, change, modification or restatement of this Agreement in accordance with its terms; 
 (C) all conveyances and
other instruments or documents that the General Partner or any Liquidator deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including a certificate of cancellation;

 (D) all instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other
events described in, Article 11, 12 or 13 hereof or the Capital Contribution of any Partner; 
 (E) all certificates,
documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interest; and 

(F) amendments to this Agreement as provided in Article 14 hereof; and 

  
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 (ii) execute, swear to, seal, acknowledge and file all ballots, consents,
approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other
action which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, to effectuate the terms or intent of this
Agreement. 
 Nothing contained herein shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except in accordance
with Article 14 hereof or as may be otherwise expressly provided for in this Agreement. 
 (b) (i) The foregoing power of attorney is hereby
declared to be irrevocable and a power coupled with an interest, in recognition of the fact that each of the Limited Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated by this Agreement in any
filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the subsequent Incapacity of any Limited Partner or Assignee and the Transfer of all or any portion of such Limited Partner’s or
Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns and personal representatives. 

(ii) Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any
Liquidator, acting in good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or any
Liquidator, taken in good faith under such power of attorney. 
 (iii) Each Limited Partner or Assignee shall execute and
deliver to the General Partner or the Liquidator, within fifteen (15) days after receipt of the General Partner’s or Liquidator’s request therefore, such further designation, powers of attorney and other instruments as the General
Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and the purposes of the Partnership. 
 (c) For
the purposes of this Section 2.4, the term “Limited Partner” shall be deemed to include the Special Limited Partner, unless the context otherwise requires. 
  

	2.5	Term 

 The term of the Partnership shall commence on the date hereof and shall continue
until December 31, 2109, unless the Partnership is dissolved sooner pursuant to the provisions of Article 13 or as otherwise provided by law. 

  
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 ARTICLE 3 

PURPOSE 
  

	3.1	Purpose and Business 

 (a) The purpose and nature of the business to be conducted by the
Partnership is to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Act including to engage in the following activities: 

(i) to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange,
and otherwise dispose of or deal with the properties or other real estate assets acquired by the Partnership as described in the prospectus (as supplemented or amended from time to time) contained in the Registration Statement; 

(ii) to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange,
and otherwise dispose of or deal with real and personal property of all kinds; 
 (iii) to enter into any partnership, joint
venture, corporation, limited liability company, trust or other similar arrangement to engage in any of the foregoing; 

(iv) to undertake such other activities as may be necessary, advisable, desirable or convenient to the business of the
Partnership; and 
 (v) to engage in such other ancillary activities as shall be necessary or desirable to effectuate the
foregoing purposes; 
 provided, however, that such business shall be limited to and conducted in such a manner as to permit the General
Partner at all times to be classified as a REIT, unless the General Partner determines not to qualify as a REIT or ceases to qualify as a REIT for any reason not related to the business conducted by the Partnership. 

(b) The Partnership shall have all powers necessary or desirable to accomplish the purposes enumerated. 

 

	3.2	Powers 

 (a) The Partnership is empowered to do any and all acts and things necessary,
appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the Partnership including full power and authority to enter into,
perform, and carry out contracts of any kind, to borrow money and to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other Lien, and, directly or indirectly, to acquire, own, improve, develop and construct
real property, and lease, sell, transfer and dispose of real property; provided, however, that the Partnership shall not take, or refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute
discretion, 
 (i) could adversely affect the ability of the General Partner to continue to qualify as a REIT, unless the
General Partner otherwise ceases to qualify as a REIT; 

  
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 (ii) could subject the General Partner to any additional taxes under
Section 857 or Section 4981 of the Code; or 
 (iii) could violate any law or regulation of any governmental body
or agency having jurisdiction over the General Partner or its securities, unless such action (or inaction) shall have been specifically consented to by the General Partner in writing. 

(b) The General Partner also is empowered to do any and all acts and things necessary, appropriate or advisable to ensure that the Partnership
will not be classified as a “publicly traded partnership” for the purposes of Section 7704 of the Code, including but not limited to imposing restrictions on exchanges of Partnership Units. 

ARTICLE 4 
 CAPITAL CONTRIBUTIONS

  

	4.1	Capital Contributions of the Partners 

 (a) The Partners have made the Capital
Contributions as set forth in Exhibit A. 
 (b) Persons who receive Partnership Interests in exchange for their interests in a Person
merging into or contributing assets to the Partnership shall become Limited Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement or contribution agreement and as set forth in Exhibit
A, as amended to reflect such deemed Capital Contributions. 
 (c) As of the effective date of this Agreement, the Partnership shall
have four classes of Partnership Units, entitled “GP Units,” “Class A Units,” “Class T Units” and “Class M Units,” respectively. The Class M Units shall have the same rights, privileges and preferences as the
Class A Units, except as set forth in Article 15. Each Partner shall own Partnership Units in the amounts set forth for such Partner in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A,
which Percentage Interest shall be adjusted in Exhibit A from time to time by the General Partner to the extent necessary to reflect accurately exchanges, additional Capital Contributions, the issuance of additional Partnership Units,
transfers of Partnership Units or similar events having an effect on any Partner’s Percentage Interest. 
 (d) The number of
Partnership Units held by the General Partner, in its capacity as general partner, as evidenced by GP Units, shall be deemed to be the General Partner Interest. 

(e) Except as otherwise may be expressly provided herein, the Partners shall have no obligation to make any additional Capital Contributions
or provide any additional funding to the Partnership (whether in the form of loans, repayments of loans or otherwise) and, except as set forth in Section 13.3, no Partner shall have any obligation to restore any deficit that may exist in its
Capital Account, either upon a liquidation of the Partnership or otherwise. 

  
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	4.2	Additional Funds; Restrictions on the General Partner 

 (a) (i) The sums of money
required to finance the business and affairs of the Partnership shall be derived from the Capital Contributions made to the Partnership by the Partners as set forth in Section 4.1 and from funds generated from the operation and business of the
Partnership, including rents and distributions directly or indirectly received by the Partnership from any Subsidiary. 

(ii) If additional financing is needed from sources other than as set forth in Section 4.2(a)(i) for any reason, the
General Partner may, in its sole and absolute discretion, in such amounts and at such times as it solely shall determine to be necessary or appropriate, 

(A) cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in
accordance with Section 4.3; 
 (B) make additional Capital Contributions to the Partnership (subject to the provisions
of Section 4.2(b)); 
 (C) cause the Partnership to borrow money, enter into loan arrangements, issue debt securities,
obtain letters of credit or otherwise borrow money on a secured or unsecured basis; 
 (D) make a loan or loans to the
Partnership (subject to Section 4.2(b)); or 
 (E) sell any assets or properties directly or indirectly owned by the
Partnership. 
 (iii) In no event shall any Limited Partners be required to make any additional Capital Contributions or any
loan to, or otherwise provide any financial accommodation for the benefit of, the Partnership. 
 (b) The General Partner shall not issue
any debt securities, any preferred stock or any common stock, including additional Common Stock other than (i) as payment of the Common Stock Amount or (ii) in connection with the conversion or exchange of securities of the General Partner
solely in conversion or exchange for other securities of the General Partner, or rights, options, warrants or convertible, exercisable or exchangeable securities containing the right to subscribe for or purchase any of the foregoing (collectively,
“Securities”), other than to all holders of Common Stock, unless the General Partner shall: 
 (i) in the
case of debt securities, lend to the Partnership the proceeds of or consideration received for such Securities on the same terms and conditions, including interest rate and repayment schedule, as shall be applicable with respect to or incurred in
connection with the issuance of such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable); 

  
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 (ii) in the case of equity Securities senior or junior to the Common Stock as to
dividends and distributions on liquidation, contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received for such Securities and the proceeds of, or consideration received from, any
subsequent exercise, exchange or conversion thereof (if applicable), and receive from the Partnership, interests in the Partnership in consideration therefor with the same terms and conditions, including dividend, dividend priority and liquidation
preference, as are applicable to such Securities; and 
 (iii) in the case of Common Stock or other equity Securities on a
parity with the Common Stock as to dividends and distributions on liquidation (including Common Stock or other Securities granted as a stock award to directors and officers of the General Partner or directors, officers or employees of the Sponsor or
its Affiliates in consideration for services or future services, and Common Stock issued pursuant to a dividend reinvestment plan or issued to enable the General Partner to make distributions to satisfy the REIT Requirements), contribute to the
Partnership the proceeds of or consideration (including any property or other non-cash assets, including services) received for such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion
thereof (if applicable), and receive from the Partnership a number of additional Partnership Units in consideration therefor equal to the product of 

(A) the number of shares of Common Stock or other equity Securities issued by the General Partner, multiplied by 

(B) a fraction the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of such
contribution. 
  

	4.3	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners 

(a) In addition to any Partnership Interests issuable by the Partnership pursuant to Section 4.2, the General Partner is authorized to
cause the Partnership to issue additional Partnership Interests (or options therefore) in the form of Partnership Units or other Partnership Interests in one or more series or classes, or in one or more series of any such class senior, on a parity
with, or junior to the Partnership Units to any Persons at any time or from time to time, on such terms and conditions, as the General Partner shall establish in each case in its sole and absolute discretion subject to Delaware law, including
(i) the allocations of items of Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests, (ii) the right of each class or series of Partnership Interests to share in Partnership distributions,
and (iii) the rights of each class or series of Partnership Interest upon dissolution and liquidation of the Partnership; provided, however, that, no such Partnership Interests shall be issued to the General Partner unless either
(A) the Partnership Interests are issued in connection with the grant, award, or issuance of Common Stock or other equity interests in the General Partner having designations, preferences and other rights such that the economic interests
attributable to such Common Stock or other equity interests are substantially similar to the designations, preferences and other rights (except voting rights) of the Partnership Interests issued to the General Partner in accordance with this
Section 4.3(a) or (B) the additional Partnership Interests are issued to all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such class, without any approval being required
from any Limited Partner or any other Person; provided further, however, that: 
 (i) such issuance does not cause the
Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA or Section 4975 of the Code, a “party in interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as
defined in Section 4975(e) of the Code); and 
 (ii) such issuance would not cause any portion of the assets of the
Partnership to constitute assets of any employee benefit plan pursuant to Section 2510.3-101 of the regulations of the United States Department of Labor. 

(b) Subject to the limitations set forth in Section 4.3(a), the General Partner may take such steps as it, in its sole and absolute
discretion, deems necessary or appropriate to admit any Person as a Limited Partner of the Partnership or to issue any Partnership Interests, including amending the Certificate, Exhibit A or any other provision of this Agreement. 

  
 27 

	4.4	Contribution of Proceeds of Issuance of Common Stock 

 In connection with any offering,
grant, award, or issuance of Common Stock or securities, rights, options, warrants or convertible or exchangeable securities pursuant to Section 4.2, the General Partner shall make aggregate Capital Contributions to the Partnership of the
proceeds raised in connection with such offering, grant, award, or issuance, including any property issued to the General Partner pursuant to a merger or contribution agreement in exchange for Common Stock; provided, however, that if the proceeds
actually received by the General Partner are less than the gross proceeds of such offering, grant, award, or issuance as a result of any underwriter’s discount, commission, or fee or other expenses paid or incurred in connection with such
offering, grant, award, or issuance, then the General Partner shall make a Capital Contribution to the Partnership in the amount equal to the sum of (i) the net proceeds of such issuance plus (ii) an intangible asset in an amount equal to
the capitalized costs of the General Partner relating to such issuance of Common Stock. Upon any such Capital Contribution by the General Partner, the Capital Account of the General Partner shall be increased by the amount of its Capital
Contribution as described in the previous sentence. 
  

	4.5	Repurchase of Common Stock; Shares-In-Trust 

 (a) If the General Partner shall elect to
purchase from its stockholders Common Stock for the purpose of delivering such Common Stock to satisfy an obligation under any distribution reinvestment plan adopted by the General Partner, any employee stock purchase plan adopted by the General
Partner, or for any other purpose, the purchase price paid by the General Partner for such Common Stock and any other expenses incurred by the General Partner in connection with such purchase shall be considered expenses of the Partnership and shall
be reimbursed to the General Partner, subject to the condition that: 
 (i) if such Common Stock subsequently is to be sold
by the General Partner, the General Partner shall pay to the Partnership any proceeds received by the General Partner from the sale of such Common Stock (provided that an exchange of Common Stock for Partnership Units pursuant to the applicable
Exchange Rights Agreement would not be considered a sale for such purposes); and 
 (ii) if such Common Stock is not
re-transferred by the General Partner within 30 days after the purchase thereof, the General Partner shall cause the Partnership to cancel a number of Partnership Units held by the General Partner (as applicable) equal to the product of 

(A) the number of shares of such Common Stock, multiplied by 

(B) a fraction, the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of such
cancellation. 

  
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 (b) If the General Partner purchases shares of Common Stock from the Trust (as from time to time
defined in the Articles of Incorporation), the Partnership will purchase from the General Partner a number of Partnership Units, at a price per Partnership Unit equal to the price per share of Common Stock paid by the General Partner, equal to the
product of 
 (i) the number of shares of Common Stock purchased by the General Partner from the Trust, multiplied by 

(ii) a fraction, the numerator of which is one and the denominator of which is the Exchange Factor in effect on the date of
such purchase. 
  

	4.6	No Third-Party Beneficiary 

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

	4.7	No Interest; No Return 

 (a) No Partner shall be entitled to interest on its Capital
Contribution or on such Partner’s Capital Account. 
 (b) Except as provided herein or by law, no Partner shall have any right to
demand or receive the return of its Capital Contribution from the Partnership. 
  

	4.8	No Preemptive Rights. 

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

  
 29 

	4.9	Special Fees. 

 The Partners acknowledge and agree that the following Special Fees shall
be borne by the Classes of OP Units as follows: 
 (a) a selling commission equal to $1.50 and a dealer manager fee equal to approximately
$0.69 for each Class A Unit issued in respect of the issuance and sale of a share of Class A Common Stock in the General Partner’s primary offering (or, with respect to Class A Units issued in respect of the issuance and sale of
a share of Class A Common Stock in a follow-on offering of the General Partner, such other selling commission and dealer manager fee charged in respect of such share of Class A Common Stock); 

(b) a selling commission equal to approximately $0.48 and a dealer manager fee equal to approximately $0.66 for each Class T Unit issued in
respect of the issuance and sale of a share of Class T Common Stock in the General Partner’s primary offering (or, with respect to Class T Units issued in respect of the issuance and sale of a share of Class T Common Stock in a follow-on
offering of the General Partner, such other selling commission and dealer manager fee charged in respect of such share of Class T Common Stock); and 

(c) an annual distribution and stockholder servicing fee for each Class T Unit issued in respect of the issuance and sale of a share of Class
T Common Stock in the General Partner’s primary offering equal to (i) one percent of the gross offering price of a share of Class T Common Stock issued in the General Partner’s primary offering, or, once the General Partner publishes the
estimated value of a share of Class T Common Stock in accordance with FINRA rules and regulations to assist broker dealers to satisfy their reporting obligations for customer account statement purposes, (ii) one percent of the estimated value of a
share of Class T Common Stock that the General Partner publishes from time to time. 
  

	4.10	Conversion of Class T Units. 

 At such time as a share of Class T Common Stock is
converted into Class A Common Stock, the corresponding Class T Unit shall convert into a corresponding number of Class A Units. The conversion of all or a portion of the Class T Units shall occur automatically after the close of business
on the applicable date of conversion, as of which time the holder of Class T Units shall be credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Class A Units
issuable upon such conversion. 
 ARTICLE 5 

DISTRIBUTIONS 
  

	5.1	Distributions 

 (a) Cash Available for Distribution. Subject to the provisions of
Sections 5.3, 5.4, 12.2(c) and 13.2, the General Partner shall cause the Partnership to distribute, at such times as the General Partner shall determine (each a “Distribution Date”), an amount of Cash Available for Distribution,
determined by the General Partner in its sole discretion to the Partners holding Partnership Units who are Partners on the applicable Partnership Record Date, pro rata and pari passu in accordance with each such Partner’s respective Percentage
Interest. 

  
 30 

 (b) Net Sales Proceeds. Subject to the provisions of Sections 5.1(f), 5.3, 5.4, 12.2(c)
and 13.2, Net Sales Proceeds shall be distributed as follows: 
 (i) First, 100% to the Partners holding GP Units and
any Class of OP Units in proportion to each such Partner’s respective Percentage Interest with respect to such GP Units and Class of OP Units until the Net Investment Balance is zero; 

(ii) Second, 100% to the Partners holding GP Units and any Class of OP Units in proportion to each such Partner’s
respective Percentage Interest with respect to such GP Units and Class of OP Units until such Partners have received in the aggregate, pursuant to this Section 5.1(b)(ii) and Section 5.1(a), an amount such that the Priority Return Balance
is zero; and 
 (iii) Thereafter, (A) 15% to the Special Limited Partner, and (B) 85% to be
distributed to the Partners holding Partnership Units pro rata and pari passu in proportion to each such Partner’s respective Percentage Interest; provided, that no distributions shall be made pursuant to this Section 5.1(b)(iii)
with respect to a Class M Unit unless such Class M Unit is an Unrestricted Class M Unit; provided further, that to the extent the Class M Unit Economic Balance of a holder of Class M Units is less than the OP Unit Economic Balance of the
Class A Units, the Percentage Interest of such Partner holding Class M Units with respect to such Class M Units shall be reduced for purposes of determining its proportionate share of distributions pursuant to this Section 5.1(b)(iii) to
equal such Partner’s Percentage Interest with respect to such Class M Units multiplied by a fraction, the numerator of which is such Partner’s Class M Unit Economic Balance for such Class M Units, and the denominator of which is the OP
Unit Economic Balance of the Class A Units. 
 (c) Listing Promote. Upon a Listing and subject to Section 5.1(f),
the General Partner shall cause the Partnership to distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Listing
Promote”), equal to 15% of the amount, if any, by which (i) the sum of (A) the Market Value plus (B) the sum of all Stockholder Distributions paid by the General Partner prior to the date of Listing, exceeds
(ii) the sum of (A) the Gross Proceeds raised in all Offerings through the date of Listing (less amounts paid on or prior to the date of Listing to purchase or redeem any shares of Common Stock purchased in an Offering pursuant to the
General Partner’s share repurchase program) plus (B) the minimum amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering, would have provided such Stockholders a Priority Return
on the Gross Proceeds raised in all such Offerings. The Listing Promote will only be paid to the Special Limited Partner if the Business Management Agreement has not been terminated by the General Partner or the Business Manager prior to the
Listing. 

  
 31 

 (d) Termination Promotes. 

(i) Upon a Termination and subject to Sections 5.1(d)(ii), (d)(iii) and (f), the General Partner shall cause the Partnership to
distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Termination Base Promote”), equal to 15% of the amount,
if any, by which (A) the sum of (I) the estimated value of the Included Assets (as determined by the General Partner in accordance with its valuation policy), minus (II) any debt secured by such Investments as well as any unsecured
debt of the General Partner, plus or minus (III) any working capital surplus or deficit of the General Partner, as applicable, plus (IV) the sum of all Stockholder Distributions paid by the General Partner through the Termination Date
on shares of Common Stock issued in all Offerings through the Termination Date, minus (V) any amounts distributable as of the Termination Date to the Limited Partners who received Partnership Units in connection with the contribution of
any Included Assets (including cash used to acquire Included Assets) to the Partnership, upon the liquidation or sale of such Included Assets (assuming the liquidation or sale of such Included Assets on the Termination Date) exceeds (B) the sum
of (I) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the Termination Date to purchase or redeem any shares of Common Stock purchased in an Offering pursuant to the General
Partner’s share repurchase plan) plus (II) the minimum amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such
Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception through the Termination Date. 

(ii) Subject to Section 5.1(f), if upon a Termination the Special Limited Partner would be entitled to an amount with
respect to the Termination Base Promote, the Special Limited Partner may retain its Special Limited Partner Interest and elect to receive, in lieu of its right to receive the Termination Base Promote, either: 

(A) If there is a Listing subsequent to the Termination Date, then the General Partner shall cause the Partnership to
distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Termination Listing Promote”), equal to 15% of the
amount, if any, by which (I) the sum of (a) the Market Value, plus (b) the sum of all Stockholder Distributions paid by the General Partner through the date of Listing on shares of Common Stock issued in Offerings
through the Termination Date exceeds (II) the sum of (a) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the date of Listing to purchase or redeem any shares of Common Stock
purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s share repurchase plan), plus (b) the minimum amount of cash that, if distributed to those Stockholders who purchased shares of
Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception of the
General Partner through the date of Listing; or 

  
 32 

 (B) If there is an Investment Liquidity Event subsequent to the Termination Date,
then the General Partner shall cause the Partnership to distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the
“Termination Liquidity Promote”), equal to 15% of the amount, if any, by which (I) the sum of (a) the Market Value, plus (b) the sum of all Stockholder Distributions paid by the General Partner
through the Investment Liquidity Date on shares of Common Stock issued in Offerings through the Termination Date exceeds (II) the sum of (a) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or
prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s share repurchase program), plus (b) the
minimum amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all
Offerings through the Termination Date, measured for the period from inception of the General Partner through the Investment Liquidity Date. 

(iii) Subject to Section 5.1(f), if upon a Termination the Special Limited Partner would not be entitled to any amount
with respect to the Termination Base Promote, the Special Limited Partner shall retain its Special Limited Partner Interest and shall be entitled to receive either: 

(A) If there is a Listing subsequent to the Termination Date, then the General Partner shall cause the Partnership to
distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Deferred Listing Promote”), equal to the product of
(I) 15% of the amount, if any, by which (a) the sum of (1) the Market Value, plus (2) the sum of all Stockholder Distributions paid by the General Partner through the date of Listing on shares of Common Stock issued
in Offerings through the Termination Date exceeds (b) the sum of (a) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the date of Listing to purchase or redeem any shares of
Common Stock purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s share repurchase plan), plus (b) the minimum amount of cash that, if distributed to those Stockholders who purchased
shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception of
the General Partner through the date of Listing, multiplied by (II) a fraction equal to the quotient of (a) the number of calendar days elapsed from the inception of the General Partner through and including the Termination Date,
divided by (b) the number of calendar days elapsed from the inception of the General Partner through and including the date of Listing; or 

  
 33 

 (B) If there is an Investment Liquidity Event subsequent to the Termination Date,
then the General Partner shall cause the Partnership to distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Deferred
Liquidity Promote”), equal to the product of (I) 15% of the amount, if any, by which (a) the sum of (1) the Market Value, plus (2) the sum of all Stockholder Distributions paid by the General Partner
through the Investment Liquidity Date on shares of Common Stock issued in Offerings through the Termination Date exceeds (b) the sum of (1) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid
on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s share repurchase program), plus (2) the
minimum amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all
Offerings through the Termination Date, measured for the period from inception of the General Partner through the Investment Liquidity Date, multiplied by (II) a fraction equal to the quotient of (a) the number of calendar days
elapsed from the inception of the General Partner through and including the Termination Date, divided by (b) the number of calendar days elapsed from the inception of the General Partner through and including the Investment
Liquidity Date. 
 (e) Investment Liquidity Promote. Upon an Investment Liquidity Event and subject to Section 5.1(f), the
General Partner shall cause the Partnership to distribute an amount to the Special Limited Partner, in one or more distributions solely out of Net Sales Proceeds in redemption of the Special Limited Partner Interest (the “Investment
Liquidity Promote”), equal to 15% of the amount, if any, by which (i) the sum of (A) the Market Value, plus (B) the sum of all Stockholder Distributions paid by the General Partner through the Investment Liquidity
Date, exceeds (ii) the sum of (A) the Gross Proceeds raised in all Offerings through the Investment Liquidity Date (less amounts paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased
in an Offering pursuant to the General Partner’s share repurchase plan) plus (B) the minimum amount of cash that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Investment
Liquidity Date, would have provided such Stockholders a Priority Return on the Gross Proceeds raised in all Offerings through the Investment Liquidity Date, measured for the period from inception of the General Partner through the Investment
Liquidity Date. The Investment Liquidity Promote will only be paid to the Special Limited Partner if the Business Management Agreement has not been terminated by the General Partner or the Business Manager prior to the Investment Liquidity Event.

 (f) Coordination. 

(i) Any Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to a Listing shall
reduce dollar for dollar the amount of the Listing Promote distributable pursuant to Section 5.1(c). If the Special Limited Partner is entitled to the Listing Promote pursuant to Section 5.1(c), (A) the

  
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Special Limited Partner shall no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Termination Promote pursuant to Section 5.1(d)
or the Investment Liquidity Promote pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the Partnership after the Listing shall be applied first to satisfy the Partnership’s obligation to make distributions pursuant
to Section 5.1(c). 
 (ii) Any Net Sales Proceeds paid to the Special Limited Partner pursuant to
Section 5.1(b)(iii)(A) prior to the Termination Date shall reduce dollar for dollar the amount of the Termination Promote distributable pursuant to Section 5.1(d). If the Special Limited Partner receives, or is entitled to receive, a
Termination Promote pursuant to Section 5.1(d), (A) the Special Limited Partner shall no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Listing Promote pursuant to
Section 5.1(c) or the Investment Liquidity Promote pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the Partnership after the Termination Date, in connection with the Termination Base Promote, the date of the
subsequent Listing, in connection with the Termination Listing Promote and the Deferred Listing Promote, and the Investment Liquidity Date, in connection with the Termination Liquidity Promote and the Deferred Liquidity Promote, shall be applied
first to satisfy the Partnership’s obligation to make distributions pursuant to Section 5.1(d). 
 (iii) Any Net
Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to an Investment Liquidity Date shall reduce dollar for dollar the Investment Liquidity Promote distributable pursuant to Section 5.1(e). If the
Special Limited Partner is entitled to receive an Investment Liquidation Promote pursuant to Section 5.1(e), (A) the Special Limited Partner shall no longer be entitled to receive distributions of Net Sales Proceeds pursuant to
Section 5.1(b)(iii)(A), the Listing Promote pursuant to Section 5.1(c) or a Termination Promote pursuant to Section 5.1(d) and (B) any Net Sales Proceeds received by the Partnership as a result of or after the Investment
Liquidity Event shall be applied first to satisfy the Partnership’s obligation to make distributions pursuant to Section 5.1(e). 

(iv) If the Special Limited Partner contributes its Special Limited Partner Interest to the Partnership in exchange for
Class A Units pursuant to Section 8.7, the Special Limited Partner shall no longer be entitled to the Listing Promote, a Termination Promote or the Investment Liquidity Promote or distributions of Net Sales Proceeds in respect of such
Listing Promote, Termination Promote or Investment Liquidity Promote pursuant to Sections 5.1(f)(i), (ii) or (iii), respectively. 

(v) If the priority distribution of Net Sales Proceeds to the Special Limited Partner pursuant to this Section 5.1(f)
prevents the Partnership from being able to distribute sufficient amounts to the General Partner pursuant to Section 5.1(b) to enable the General Partner to satisfy the REIT Requirement, the General Partner may in its sole discretion cause the
Partnership to distribute some or all of the Net Sales Proceeds subject to a priority distribution pursuant to this Section 5.1(f) to the General Partner in an amount sufficient to enable the General Partner to pay dividends to the Stockholders
in order to satisfy the REIT Requirements. 

  
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 (g) Notwithstanding anything herein to the contrary, in accordance with Section 736 of the
Code, so long as the Special Limited Partner is entitled to the Listing Promote, a Termination Promotes or the Investment Liquidity Promote and has not contributed its Special Limited Partner Interest in accordance with Section 8.7, the Special
Limited Partner shall continue to be treated as a partner of the Partnership in respect of its Special Limited Partner Interest until the Partnership has satisfied its obligations with respect to the Listing Promote, Termination Promotes and
Investment Liquidity Promote. 
 (h) In no event may any Partner receive a distribution pursuant to Sections 5.1(a) or (b) with respect
to a Partnership Unit if such Partner is entitled to receive a distribution with respect to Common Stock for which such a Partnership Unit has been exchanged. 

(i) Special Fees. Consistent with Section 4.9, if the Partnership directly or indirectly incurs Special Fees, (i) Cash
Available for Distribution or Net Sales Proceeds, as the case may be, available for distribution under this Section 5.1 shall be increased by the Special Fees to the extent that Cash Available for Distribution or Net Sales Proceeds have been
previously reduced by such fees; and (ii) the amounts otherwise distributable among the Classes of OP Units shall then be reduced to reflect their appropriate share or shares of the Special Fees. For example, if the Partnership has Cash
Available for Distribution of $1,000 after taking into account a distribution and stockholder servicing fee of $200 that is required to be borne entirely by the Partners holding Class T Units, Cash Available for Distribution shall be increased to
$1,200 for purposes of this Section 5.1 and the amounts otherwise distributable to the Class T Units under this Section 5.1 shall be reduced by $200. 
  

	5.2	Qualification as a REIT 

 The General Partner shall use its best efforts to cause the
Partnership to distribute sufficient amounts under this Article 5 to enable the General Partner to pay dividends to the Stockholders that will enable the General Partner to 

(a) satisfy the requirements for qualification as a REIT under the Code and Regulations (“REIT Requirements”),
and 
 (b) avoid any U.S. federal income or excise tax liability; 

provided, however, that the General Partner shall not be bound to comply with this covenant to the extent such distributions would 

(i) violate applicable Delaware law, or 

(ii) contravene the terms of any notes, mortgages or other types of debt obligations to which the Partnership may be subject in
conjunction with borrowed funds. 
  

	5.3	Withholding 

 With respect to any withholding tax or other similar tax liability or
obligation to which the Partnership may be subject as a result of any act or status of any Partner or the Special Limited Partner or to which the Partnership becomes subject with respect to any Partnership Unit

  
 36 

 
or the Special Limited Partner Interest, the Partnership shall have the right to withhold amounts distributable pursuant to this Article V to such Partner or the Special Limited Partner or with
respect to such Partnership Units or the Special Limited Partner Interest, to the extent of the amount of such withholding tax or other similar tax liability or obligation pursuant to the provisions contained in Section 10.5, and the amount of
any withholding shall reduce the right of such Partner or the Special Limited Partner to future distribution to the extent provided in Section 10.5. 
  

	5.4	Additional Partnership Interests 

 If the Partnership issues Partnership Interests in
accordance with Section 4.2 or 4.3, the distribution priorities set forth in Section 5.1 shall be amended, as necessary, to reflect the distribution priority of such Partnership Interests and corresponding amendments shall be made to the
provisions of Exhibit B. 
 ARTICLE 6 

ALLOCATIONS 
  

	6.1	Allocations 

 The Net Income, Net Loss, Net Property Gain, Net Property Loss and other
Partnership items shall be allocated pursuant to the provisions of Exhibit B. 
  

	6.2	Revisions to Allocations to Reflect Issuance of Partnership Interests 

 If the
Partnership issues Partnership Interests to the General Partner or any additional Limited Partner pursuant to Article IV, the General Partner shall make such revisions to this Article 6 and Exhibit B as it deems necessary to reflect the terms
of the issuance of such Partnership Interests, including making preferential allocations to classes of Partnership Interests that are entitled thereto. Notwithstanding anything to the contrary in this Agreement, such revisions shall not require the
consent or approval of any other Partner. 
 ARTICLE 7 

MANAGEMENT AND OPERATIONS OF BUSINESS 
  

	7.1	Management 

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

  
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 (iii) In addition to the powers now or hereafter granted a general partner of a
limited partnership under applicable law or which are granted to the General Partner under any other provision of this Agreement, the General Partner, subject to Section 7.11, shall have full power and authority to do all things deemed
necessary or desirable by it to conduct the business of the Partnership, to exercise all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including: 

(A) (1) the making of any expenditures, the lending or borrowing of money, including making prepayments on loans and borrowing money to permit
the Partnership to make distributions to its Partners in such amounts as will permit the General Partner (so long as the General Partner qualifies as a REIT) to avoid the payment of any U.S. federal income tax (including, for this purpose, any
excise tax pursuant to Section 4981 of the Code) and to make distributions to its Stockholders in amounts sufficient to permit the General Partner to maintain REIT status, 

(2) the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, 

(3) the issuance of evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other
lien or encumbrance on the Partnership’s assets) and 
 (4) the incurring of any obligations it deems necessary for the
conduct of the activities of the Partnership, including the payment of all expenses associated with the General Partner; 

(B) the acquisition, purchase, ownership, operating, leasing and disposition of any real property and any other property or
assets, including mortgages and real estate-related securities, whether directly or indirectly; 
 (C) the making of tax,
regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the Partnership or the General Partner; 

(D) the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of all or substantially all of the
assets of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available in connection with any assets at any time held by the Partnership) or the merger, consolidation or other
combination (each a “Business Combination”) of the Partnership with or into another Entity on such terms as the General Partner deems proper, provided, however, that the General Partner shall be required to send to
each Limited Partner a notice of such proposed Business Combination no less than 15 days prior to the record date for the vote of the General Partner’s Stockholders on such Business Combination, if any; 

  
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 (E) the use of the assets of the Partnership (including cash on hand) for any
purpose consistent with the terms of this Agreement and on any terms it sees fit, including, 
 (1) the financing of the
conduct of the operations of the General Partner, the Partnership or any of the Partnership’s Subsidiaries, 
 (2) the
lending of funds to other Persons (including the Subsidiaries of the Partnership and/or the General Partner) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and 

(3) the making of capital contributions to its Subsidiaries; 

(F) the expansion, development, redevelopment, construction, leasing, repair, rehabilitation, repositioning, alteration,
demolition or improvement of any property in which the Partnership or any Subsidiary of the Partnership owns an interest; 

(G) the negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner
considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s powers under this Agreement, including contracting with contractors, developers, consultants, accountants, legal
counsel, other professional advisors and other agents and the payment of their expenses and compensation out of the Partnership’s assets; 

(H) the distribution of Partnership cash or other Partnership assets in accordance with this Agreement; 

(I) holding, managing, investing and reinvesting cash and other assets of the Partnership; 

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

(K) the establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership
(including employees having titles such as “president”, “vice president”, “secretary” and “treasurer” of the Partnership), and agents, attorneys, accountants, consultants and contractors of the Partnership,
and the determination of their compensation and other terms of employment or engagement; 
 (L) the maintenance of such
insurance for the benefit of the Partnership and the Partners and the directors, officers, agents, employees or affiliates thereof as it deems necessary or appropriate; 

  
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 (M) the formation of, or acquisition of an interest (including non-voting
interests in entities controlled by Affiliates of the Partnership or by third parties) in, and the contribution of property to, any further Entities or other relationships that it deems desirable, including the acquisition of interests in, and the
contributions of funds or property to, or making of loans to, its Subsidiaries and any other Person from time to time, or the incurrence of indebtedness on behalf of such Persons or the guarantee of the obligations of such Persons; provided,
however, that as long as the General Partner has determined to elect to qualify as a REIT or to continue to qualify as a REIT, the Partnership may not engage in any such formation, acquisition or contribution that would cause the General
Partner to fail to qualify as a REIT; 
 (N) the control of any matters affecting the rights and obligations of the
Partnership, including 
 (1) the settlement, compromise, submission to arbitration or any other form of dispute resolution,
or abandonment of, any claim, cause of action, liability, debt or damages, due or owing to or from the Partnership, 
 (2)
the commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of dispute resolution, and 

(3) the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other
forms of dispute resolution, the incurring of legal expenses, and the indemnification of any Person against liabilities and contingencies to the extent permitted by law; 

(O) the undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries
or any other Person (including the contribution or loan of funds by the Partnership to such Persons); 
 (P) the
determination of the fair market value of any Partnership property distributed in kind using such reasonable method of valuation as the General Partner, in its sole discretion, may adopt; 

(Q) the exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of
any right, including the right to vote, appurtenant to any asset or investment held by the Partnership; 
 (R) the exercise
of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect interest, or jointly with any such
Subsidiary or other Person; 

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

(T) the making, execution and delivery of any and all deeds, leases, notes, mortgages, deeds of trust, security agreements,
conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary or appropriate, in the judgment of the General Partner, for the accomplishment of any of the foregoing; 

(U) the issuance of additional Partnership Units in connection with Capital Contributions by Additional Limited Partners and
additional Capital Contributions by Partners pursuant to Article 4 hereof; 
 (V) the authorization, issuance, sale,
redemption or purchase of any Partnership Units or any securities of the Partnership; 
 (W) the opening of bank accounts on
behalf of, and in the name of, the Partnership and its Subsidiaries; and 
 (X) the amendment and restatement of Exhibit
A to reflect accurately at all times the Capital Contributions and Percentage Interests of the Partners as the same are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of Partnership
Units, the admission of any Additional Limited Partner or any Substituted Limited Partner or otherwise, which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment of this Agreement,
as long as the matter or event being reflected in Exhibit A otherwise is authorized by this Agreement. 
 (b) (i) Each of the Limited
Partners agree that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership without any further act, approval or vote of the Partners, notwithstanding any other
provision of this Agreement to the fullest extent permitted under the Act or other applicable law, rule or regulation. 

(ii) The execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted
under this Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or
equity. 
 (c) At all times from and after the date hereof, the General Partner at the expense of the Partnership, may or may not, cause the
Partnership to obtain and maintain 
 (i) casualty, liability and other insurance on the properties of the Partnership or its
subsidiaries; 

  
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 (ii) liability insurance for the Indemnitees hereunder; and 

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

(e) (i) In exercising its authority under this Agreement, the General Partner may, but shall be under no obligation to, take into
account the tax consequences to any Partner (including the General Partner) of any action taken (or not taken) by it. The General Partner and the Partnership shall not have liability to any Limited Partner for monetary damages or otherwise for
losses sustained, liabilities incurred or benefits not derived by such Limited Partner in connection with such decisions; provided, that the General Partner has acted in good faith pursuant to its authority under this Agreement. The Limited
Partners expressly acknowledge that the General Partner is acting on behalf of the Partnership, the General Partner, and the General Partner’s Stockholders, collectively. 

(ii) The General Partner and the Partnership shall not have liability to any Limited Partner or the Special Limited Partner
under any circumstances as a result of an income tax liability incurred by such Limited Partner or the Special Limited Partner as a result of an action (or inaction) by the General Partner taken pursuant to its authority under and in accordance with
this Agreement. 
 (iii) With respect to any indebtedness of the Partnership which any Limited Partner or the Special Limited
Partner may have guaranteed, the General Partner (and its investment advisor) shall have no duty to keep such indebtedness outstanding. 
  

	7.2	Certificate of Limited Partnership 

 (a) The General Partner has previously filed the
Certificate with the Secretary of State of Delaware as required by the Act. 
 (b) (i) The General Partner shall use all reasonable efforts
to cause to be filed such other certificates or documents as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners have
limited liability) in the State of Delaware and any other state, or the District of Columbia, in which the Partnership may elect to do business or own property. 

(ii) To the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate, the
General Partner shall file amendments to and restatements of the Certificate and do all of the things to maintain the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) under the laws of the
State of Delaware and each other state, or the District of Columbia, in which the Partnership may elect to do business or own property. 

(iii) The General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any
amendment thereto to any Limited Partner. 

  
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	7.3	Reimbursement of the General Partner 

 (a) Except as provided in this Section 7.3
and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner of the
Partnership. 
 (b) (i) The Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s
organization, the ownership of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such other basis as it may determine in its sole and absolute discretion, for all expenses that it incurs on behalf of the
Partnership relating to the ownership and operation of the Partnership’s assets, or for the benefit of the Partnership, including all expenses associated with compliance by the General Partner with laws, rules and regulations promulgated by any
regulatory body, expenses related to the operations of the General Partner and to the management and administration of any Subsidiaries of the General Partner or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing
fees and any and all salaries, compensation and expenses of officers and employees of the General Partner, but excluding any portion of expenses reasonably attributable to assets not owned by or for the benefit of, or to operations not for the
benefit of, the Partnership or Affiliates of the Partnership; provided, however, that the amount of any such reimbursement shall be reduced by any interest earned by the General Partner with respect to bank accounts or other
instruments or accounts held by it in its name. 
 (ii) Such reimbursement shall be in addition to any reimbursement
made as a result of indemnification pursuant to Section 7.6 hereof. 
 (iii) The General Partner shall determine in good
faith the amount of expenses incurred by it related to the ownership and operation of, or for the benefit of, the Partnership. If certain expenses are incurred for the benefit of the Partnership and other entities (including the General Partner),
such expenses will be allocated to the Partnership and such other entities in such a manner as the General Partner in its reasonable discretion deems fair and reasonable. All payments and reimbursements hereunder shall be characterized for federal
income tax purposes as expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner. 
 (c) (i) Expenses
incurred by the General Partner relating to the organization or reorganization of the Partnership and the General Partner the issuance of Common Stock in connection with an Offering and any issuance of additional Partnership Interests, Common Stock
or rights, options, warrants, or convertible or exchangeable securities pursuant to Section 4.2 hereof and all costs and expenses associated with the preparation and filing of any periodic reports by the General Partner under federal, state or
local laws or regulations (including all costs, expenses, damages, and other payments resulting from or arising in connection with litigation related to any of the foregoing) are primarily obligations of the Partnership. 

(ii) To the extent the General Partner pays or incurs such expenses, the General Partner shall be reimbursed for such expenses.

  
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	7.4	Outside Activities of the General Partner 

 (a) Without the Consent of the Limited
Partners, the General Partner shall not directly or indirectly enter into or conduct any business other than in connection with the ownership, acquisition, and disposition of Partnership Interests and the management of its business and the business
of the Partnership, and such activities as are incidental thereto. 
 (b) The General Partner and any Affiliates of the General Partner may
acquire Limited Partner Interests and shall be entitled to exercise all rights of a Limited Partner relating to such Limited Partner Interests. 
  

	7.5	Contracts with Affiliates 

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

 (ii) The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. 

(b) Except as provided in Section 7.4, the Partnership may Transfer assets to Entities in which it is or thereby becomes a participant
upon such terms and subject to such conditions consistent with this Agreement and applicable law as the General Partner, in its sole and absolute discretion, may determine. 

(c) Except as expressly permitted by this Agreement, neither the General Partner, the Sponsor nor any of their Affiliates, including the
Business Manager, shall sell, Transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are determined by the General Partner in good faith to be fair and
reasonable. 
 (d) The General Partner, in its sole and absolute discretion and without the approval the Limited Partners, may propose and
adopt, on behalf of the Partnership, employee benefit plans, stock option plans, and similar plans funded by the Partnership for the benefit of employees of the Partnership, the General Partner, any Subsidiaries of the Partnership or any Affiliate
of any of them in respect of services performed, directly or indirectly, for the benefit of the Partnership, the General Partner, any Subsidiaries of the Partnership or any Affiliate of any of them. 

(e) The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, a “right of first
opportunity” or “right of first offer” arrangement, non-competition agreements and other conflict avoidance agreements with various Affiliates of the Partnership, the General Partner and the Sponsor on such terms as the General
Partner, in its sole and absolute discretion, believes are advisable. 

  
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	7.6	Indemnification 

 (a) (i) To the fullest extent permitted by Delaware law or as provided
herein, the Partnership shall indemnify each Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including reasonable attorneys’ fees and other legal fees and expenses), judgments, fines,
settlements, and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”), that relate to the operations of the Partnership or
the General Partner as set forth in this Agreement, in which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, so long as (A) the course of conduct which gave rise to the Claim was taken, in the
reasonable determination of the Indemnitee made in good faith, in the best interests of the Partnership or the General Partner, (B) such Claim was not the result of negligence or misconduct by the Indemnitee, (C) the Indemnitee (if other
than the General Partner) was acting on behalf of or performing services for the Partnership and (D) such indemnification is not satisfied or recoverable from the assets of the Stockholders of the General Partner. Notwithstanding the foregoing,
no Indemnitee (other than the General Partner) shall be indemnified for any Claim arising from or out of an alleged violation of federal or state securities laws unless (1) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to such Indemnitee, (2) such allegations have been dismissed with prejudice on the merits by a court of competent jurisdiction as to such Indemnitee, or (3) a court of competent jurisdiction
approves a settlement of such allegations against such Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of
the Commission and of the published position of any state securities regulatory authority in which the Common Stock was offered or sold as to indemnification for violations of securities law. 

(ii) Without limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty
(except a guaranty by a limited partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan guaranty), contractual obligation for any indebtedness or other obligation or otherwise for any indebtedness of the
Partnership or any Subsidiary of the Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General Partner is hereby authorized and empowered, on behalf of the
Partnership, to enter into one or more indemnity agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially having liability for any such indebtedness. 

(iii) Any indemnification pursuant to this Section 7.6 shall be made only out of the assets of the Partnership, and
neither the General Partner nor any Limited Partner shall have any obligation to contribute to the capital of the Partnership, or otherwise provide funds, to enable the Partnership to fund its obligations under this Section 7.6. 

(b) Reasonable expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership in advance of
the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the
Indemnitee of the Indemnitee’s good faith belief that the standard of conduct 

  
 45 

 
necessary for indemnification by the Partnership as authorized in this Section 7.6 has been met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if
it shall ultimately be determined that the standard of conduct has not been met. 
 (c) The indemnification provided by this
Section 7.6 shall be in addition to any other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee
who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant to which such Indemnities are indemnified. 

(d) The Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnities 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 7.6,
the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by such Indemnitee of its duties to the Partnership also imposes duties on, or otherwise involves services by,
such Indemnitee to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 7.6.
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 any of the
Partners (other than the General Partner) to personal liability by reason of the indemnification provisions set forth in this Agreement. 

(g) An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.6 because the Indemnitee had an interest
in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

(h) (i) The provisions of this Section 7.6 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators
and shall not be deemed to create any rights for the benefit of any other Persons. 
 (ii) Any amendment, modification or
repeal of this Section 7.6 or any provision hereof shall be prospective only and shall not in any way affect the Partnership’s liability to any Indemnitee under this Section 7.6, as in effect immediately prior to such amendment,
modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

  
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 (i) If and to the extent any payments to the General Partner pursuant to this Section 7.6
constitute gross income to the General Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated
consistently therewith by the Partnership and all Partners, and shall not be treated as distributions for purposes of computing the Partners’ Capital Accounts. 

(j) Notwithstanding anything to the contrary in this Agreement, the General Partner shall not be entitled to indemnification hereunder for any
loss, claim, damage, liability or expense for which the General Partner is obligated to indemnify the Partnership under any other agreement between the General Partner and the Partnership. 

 

	7.7	Liability of the General Partner 

 (a) Notwithstanding anything to the contrary set forth
in this Agreement, neither the General Partner nor the Business Manager, nor any of their respective officers and directors, shall be liable for monetary damages to the Partnership, any Partners or any Assignees for losses sustained or liabilities
incurred as a result of errors in judgment or mistakes of fact or law or of any act or omission unless the General Partner or the Business Manager, as the case may be, acted in bad faith and the act or omission was material to the matter giving rise
to the loss, liability or benefit not derived. 
 (b) (i) Subject to its obligations and duties as General Partner set forth in
Section 7.1(a) hereof, the General Partner may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agent, including the Business Manager. 

(ii) The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by
the General Partner in good faith. 
 (c) The Limited Partners expressly acknowledge that if any conflict in the fiduciary duties owed by
the General Partner to its Stockholders and by the General Partner, in its capacity as a general partner of the Partnership, to the Limited Partners or the Special Limited Partner, the General Partner may act in the best interests of the General
Partner’s Stockholders without violating its fiduciary duties to the Limited Partners or the Special Limited Partner, and that, notwithstanding anything to the contrary herein, the General Partner shall not be liable for monetary damages for
losses sustained, liabilities incurred, or benefits not derived by the Limited Partners or the Special Limited Partner in connection with any such violation. 

(d) Any amendment, modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall not in any way
affect the limitations on the General Partner’s and its officers’ and directors’ liability to the Partnership, the Special Limited Partner and the Limited Partners under this Section 7.7 as in effect immediately prior to such
amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

  
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	7.8	Other Matters Concerning the General Partner 

 (a) The General Partner may rely and shall
be protected in acting, or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it in good faith to be genuine and
to have been signed or presented by the proper party or parties. 
 (b) The General Partner may consult with legal counsel, accountants,
appraisers, management consultants, investment bankers, architects, engineers, environmental consultants and other consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the opinion of such Persons as to
matters which such General Partner reasonably believes to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion. 

(c) (i) The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and duly appointed attorneys-in-fact. 
 (ii) Each such attorney shall, to the extent provided by the
General Partner in the power of attorney, have full power and authority to do and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder. 

(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 avoid the General Partner incurring any taxes under Section 857 or Section 4981 of the Code, 

is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners and the Special Limited Partner. 

 

	7.9	Title to Partnership Assets 

 (a) 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. 

(b) (i) 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. 

  
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 (ii) The General Partner hereby declares and warrants that any Partnership asset
for which legal title is held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions of this Agreement;
provided, 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. 

(iii) All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the
name in which legal title to such Partnership assets is held. 
  

	7.10	Reliance by Third Parties 

 (a) Notwithstanding anything to the contrary in this
Agreement, any Person dealing with the Partnership shall be entitled to assume that the General Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise use in any manner any
and all assets of the Partnership and to enter into any contracts on behalf of the Partnership, and take any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the General Partner
were the Partnership’s sole party in interest, both legally and beneficially. 
 (b) Each Limited Partner and the Special Limited
Partner hereby waive any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. 

(c) In no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that the terms of this
Agreement have been complied with or to inquire into the necessity or expediency of any act or action of the General Partner or its representatives. 

(d) Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner or its
representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that 

(i) at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and
effect; 
 (ii) the Person executing and delivering such certificate, document or instrument was duly authorized and
empowered to do so for and on behalf of the Partnership; and 
 (iii) such certificate, document or instrument was duly
executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 

  
 49 

	7.11	Loans By Third Parties 

 The Partnership may incur Debt, or enter into similar credit,
guarantee, financing or refinancing arrangements for any purpose (including in connection with any acquisition of property) with any Person upon such terms as the General Partner determines appropriate. 

ARTICLE 8 
 RIGHTS AND OBLIGATIONS
OF LIMITED PARTNERS 
  

	8.1	Limitation of Liability 

 No Limited Partner shall have any liability under this
Agreement except as expressly provided in this Agreement, including Section 10.5 hereof, or under the Act. 
  

	8.2	Management of Business 

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

	8.3	Outside Activities of Limited Partners 

 (a) Subject to any agreements entered into
pursuant to Section 7.5 hereof and any other agreements entered into by a Limited Partner, the Special Limited Partner, or any of their Affiliates with the Partnership or any of its Subsidiaries, any Limited Partner, the Special Limited Partner
and any officer, director, employee, agent, trustee, Affiliate or shareholder of any Limited Partner or the Special Limited Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating
to the Partnership, including business interests and activities that are in direct competition with the Partnership or that are enhanced by the activities of the Partnership. 

(b) Neither the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited
Partner, the Special Limited Partner, any Assignee or any of their Affiliates. 
 (c) No Limited Partner nor any other Person shall have any
rights by virtue of this Agreement or the Partnership relationship established hereby in any business ventures of any other Person and such Person shall have no obligation pursuant to this Agreement to offer any

  
 50 

 
interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character which, if presented to the Partnership, any
Limited Partner or such other Person, could be taken by such Person. 
  

	8.4	Return of Capital 

 (a) Except pursuant to the Exchange Rights Agreements, no Limited
Partner shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. 

(b) Except as provided in Articles 5, 6 and 13 hereof, no Limited Partner or Assignee shall have priority over any other Limited Partner or
Assignee, either as to the return of Capital Contributions or as to profits, losses or distributions. 
  

	8.5	Rights of Limited Partners Relating to the Partnership 

 (a) In addition to the other
rights provided by this Agreement or by the Act, and except as limited by Section 8.5(b) hereof, each Limited Partner and the Special Limited Partner shall have the right, for a purpose reasonably related to such Person’s interest as a
limited partner in the Partnership, upon written demand with a statement of the purpose of such demand and at such Person’s own expense (including such reasonable copying and administrative charges as the General Partner may establish from time
to time): 
 (i) to obtain a copy of the most recent annual and quarterly reports filed with the Commission by the General
Partner pursuant to the Securities Exchange Act of 1934; and 
 (ii) to obtain a copy of the Partnership’s U.S. federal,
state and local income tax returns for each Partnership Year. 
 (b) Notwithstanding any other provision of this Section 8.5, the
General Partner may keep confidential from the Limited Partners and the Special Limited Partner, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information that: 

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

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

 

	8.6	Exchange of Class A Units 

 (a) Subject to Sections 8.6(b), (c), (d), (e),
(f) and (g) hereof, the penultimate sentence of this Section 8.6(a), and the provisions of any agreements between the Partnership 

  
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and one or more Limited Partners with respect to Class A Units held by them, each Limited Partner holding Class A Units shall have the right (the “Class A Unit Redemption
Right”) to require the Partnership to redeem on a Specified Redemption Date all or a portion of the Class A Units held by such Limited Partner at a redemption price equal to and in the form of the Class A Unit Redemption Amount to
be paid by the Partnership; provided, that such Class A Units (including, for the avoidance of doubt, any Class A Units issued to such Limited Partner as a result of any merger, consolidation or other business combination or
reorganization to which the Partnership or the General Partner is a party) shall have been outstanding for at least one year (or such lesser time as determined by the General Partner in its sole and absolute discretion), which period shall include
the period that any Partnership Units that were converted into such Class A Units were held, and subject to any restriction agreed to in writing between the Redeeming Limited Partner and the General Partner. The Class A Unit Redemption
Right shall be exercised pursuant to a written notice (the “Notice of Redemption”) delivered to the Partnership (with a copy to the General Partner) by the Limited Partner who is exercising the Class A Unit Redemption Right
(the “Redeeming Limited Partner”); provided, however, that the Partnership shall, in its sole and absolute discretion, have the option to deliver either the Cash Amount or the Common Stock Amount; provided, further,
that the Partnership shall not be obligated to satisfy such Class A Unit Redemption Right if the General Partner elects to purchase the Class A Units subject to the Notice of Redemption; and provided, further, that no Limited
Partner may deliver more than two Notices of Redemption during each calendar year. A Limited Partner may not exercise the Class A Unit Redemption Right for less than one thousand (1,000) Class A Units or, if such Limited Partner holds
less than one thousand (1,000) Class A Units, all of the Class A Units held by such Limited Partner. The Redeeming Limited Partner shall have no right, with respect to any Class A Units so redeemed, to receive any distribution
paid with respect to Class A Units if the record date for such distribution is on or after the Specified Redemption Date. 
 (b)
Notwithstanding the provisions of Section 8.6(a) hereof, a Limited Partner that exercises the Class A Unit Redemption Right shall be deemed to have offered to sell the Class A 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 Class A Units by paying to the Redeeming Limited Partner either the Cash Amount or the Common Stock 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 Class A Units offered for redemption by the Redeeming Limited Partner and shall be treated for all purposes
of this Agreement as the owner of such Class A Units. If the General Partner shall elect to exercise its right to purchase Class A Units under this Section 8.6(b) with respect to a Notice of Redemption, it shall so notify the
Redeeming Limited Partner within five business days after the receipt by the General Partner of such Notice of Redemption. 
 (c) In the
event the General Partner shall exercise its right to purchase Class A Units with respect to the exercise of a Class A Unit Redemption Right, the Partnership shall have no obligation to pay any amount to the Redeeming Limited Partner with
respect to such Redeeming Limited Partner’s exercise of such Class A Unit Redemption Right, and each of the Redeeming Limited Partner, the Partnership and the General Partner shall treat the transaction between the General Partner and the
Redeeming Limited Partner for U.S. federal income tax purposes as a sale of the Redeeming Limited Partner’s Class A Units to the General Partner. Each Redeeming Limited Partner agrees to execute such documents as the General Partner may
reasonably require in connection with the issuance of Common Stock upon exercise of the Class A Unit Redemption Right. 

  
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 (d) Notwithstanding the provisions of Sections 8.6(a) and 8.6(b) hereof, a Limited Partner shall
not be entitled to exercise the Class A Unit Redemption Right if the delivery of Common Stock to such Limited Partner on the Specified Redemption Date by the General Partner pursuant to Section 8.6(b) hereof (regardless of whether or not
the General Partner would in fact exercise its rights under Section 8.6(b) hereof) would cause the acquisition of Common Stock by such Limited Partner to be “integrated” with any other distribution of Common Stock or Class A
Units for purposes of complying with the registration provisions of the Securities Act. The General Partner, in its sole and absolute discretion and without the consent of any other Limited Partner or Person, may waive the restriction on redemption
set forth in this Section 8.6(d). 
 (e) Any Cash Amount to be paid to a Redeeming Limited Partner pursuant to this Section 8.6
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 90 days to the extent required for the General Partner to cause
additional Common Stock to be issued to provide financing to be used to make such payment of the Cash Amount. Any Common Stock Amount to be paid to a Redeeming Limited Partner pursuant to this Section 8.6 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 60 days to the extent required for the General Partner to cause additional Common Stock to be
issued. Notwithstanding the foregoing, the General Partner agrees to use its reasonable best efforts to cause the closing of the acquisition of redeemed Class A Units hereunder to occur as quickly as reasonably possible. 

(f) 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 that apply upon a Redeeming Limited Partner’s exercise of the Class A Unit
Redemption Right. If a Redeeming Limited Partner believes that it is exempt from such withholding upon the exercise of the Class A Unit Redemption Right, such Partner must furnish the General Partner with such supporting documentation
reasonably requested by the General Partner. If the Partnership or the General Partner is required to withhold and pay over to any taxing authority any amount upon a Redeeming Limited Partner’s exercise of the Class A Unit Redemption Right
and if the Class A Unit Redemption Amount equals or exceeds the Withheld Amount, the Withheld Amount shall be treated as an amount received by such Limited Partner in redemption of its Class A Units. If, however, the Class A Unit
Redemption Amount is less than the Withheld Amount, the Redeeming Limited Partner shall not receive any portion of the Class A Unit Redemption Amount, the Class A Unit Redemption Amount shall be treated as an amount received by such
Limited Partner in redemption of its Class A Units, and the Limited Partner shall contribute the excess of the Withheld Amount over the Class A Unit Redemption Amount to the Partnership before the Partnership is required to pay over such
excess to a taxing authority. 

  
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 (g) Notwithstanding any other provision of this Agreement, the General Partner shall place
appropriate restrictions on the ability of the Limited Partners to exercise their Class A Unit 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 to each of the Limited Partners. 

(h) Any other terms, conditions and restrictions with respect to such a redemption will be contained in an exchange rights agreement among the
General Partner, the Partnership and one or more Limited Partners (as amended from time to time, the “Exchange Rights Agreement”). The form of the Exchange Rights Agreement governing the redemption of Class A Units hereafter
shall be determined by the General Partner. 
 (i) The Limited Partners and all successors, assignees and transferees (whether by operation
of law, including by merger or consolidation, dissolution or liquidation of an entity that is a Limited Partner, or otherwise) shall be bound by the provisions of the Exchange Rights Agreement to which they are parties. 

 

	8.7	Conversion and Exchange of the Special Limited Partner Interest. 

 (a) Conversion.
At such time as the Special Limited Partner is entitled to the Listing Promote, a Termination Promote or the Investment Liquidity Promote, the Special Limited Partner shall have the right, but not the obligation, to contribute the entire Special
Limited Partner Interest to the Partnership in exchange for Class A Units in a transaction intended to qualify as a contribution of property pursuant to Section 721 of the Code. The Special Limited Partner shall notify the General Partner
of its intention to contribute its Special Limited Partner Interest in exchange for Class A Units as soon as reasonably practicable after learning of the event that will give rise to its right to receive the Listing Promote, Termination Promote
or Investment Liquidity Promote. The number of Class A Units issuable upon a conversion of the Special Limited Partner Interest shall be equal to the quotient of (i) the Listing Promote, Termination Promote or Investment Liquidity Promote,
as the case may be, divided by (ii) the product of (A) in the case of the Listing Promote or Termination Promote, the Value of one share of Class A Common Stock, and in the case of the Investment Liquidity Promote, the
Investment Liquidity Value per one share of Class A Common Stock multiplied by (B) the Exchange Factor. The Special Limited Partner covenants and agrees with the Partnership that the Special Limited Partner Interest shall be free
and clear of all liens. The conversion of all or a portion of the Special Limited Partner Interest shall occur automatically after the close of business on the applicable date of conversion, as of which time the Special Limited Partner shall be
credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Class A Units issuable upon such conversion. 

(b) Exchange. Class A Units issuable upon a conversion of the Special Limited Partner Interest as set forth in this
Section 8.7 shall be exchangeable for cash or, at the option of the Partnership, for shares of Common Stock pursuant to Section 8.6; provided, that such Class A Units (including, for the avoidance of doubt, any Class A
Units issued to the Special Limited Partner as a result of any merger, consolidation or other business combination or reorganization to which the Partnership or the General Partner is a party) shall have been outstanding for at least

  
 54 

 
two years (or such lesser time as determined by the General Partner in its sole and absolute discretion), which period shall include the period that the Special Limited Partner held the Special
Limited Partner Interest prior to its conversion to Class A Units pursuant to Section 8.7(a). 
 ARTICLE 9 

BOOKS, RECORDS, ACCOUNTING AND REPORTS 
  

	9.1	Records and Accounting 

 (a) The General Partner shall keep or cause to be kept at the
principal office of the Partnership those records and documents required to be maintained by the Act and other books and records deemed by the General Partner to be appropriate with respect to the Partnership’s business, including all books and
records necessary for the General Partner to comply with applicable REIT Requirements and to provide to the Limited Partners and the Special Limited Partner any information, lists and copies of documents required to be provided pursuant to Sections
8.5(a) and 9.3 hereof. 
 (b) Any records maintained by or on behalf of the Partnership in the regular course of its business may be kept
on, or be in the form of, punch cards, magnetic tape, photographs, micrographics or any other information storage device, provided that the records so maintained are convertible into clearly legible written form within a reasonable period of time.

 (c) The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with
generally accepted accounting principles, or such other basis as the General Partner determines to be necessary or appropriate. 
  

	9.2	Fiscal Year 

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

 

	9.3	Reports 

 (a) As soon as practicable, but in no event later than the date on which the
General Partner mails its annual report to its Stockholders, the General Partner shall cause to be mailed to each Limited Partner and the Special Limited Partner as of the close of the Partnership Year, an annual report containing financial
statements of the Partnership, or of the General Partner, if such statements are prepared on a consolidated basis with the Partnership, for such Partnership Year, presented in accordance with the standards of the Public Accounting Oversight Board
(United States), such statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner in its sole discretion. 

(b) If and to the extent that the General Partner mails quarterly reports to its Stockholders, then as soon as practicable, but in no event
later than the date such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner and the Special Limited Partner a report containing unaudited financial statements as of the last day of the calendar quarter of the
Partnership, or of the General Partner, if such statements are prepared on a consolidated basis with the Partnership, and such other information as may be required by applicable law or regulation, or as the General Partner determines to be
appropriate. 
 (c) Notwithstanding the foregoing, the General Partner may deliver to the Limited Partners and the Special Limited Partner
each of the reports described above, as well as any other communications that it may provide hereunder, by e-mail or by any other electronic means. 

  
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 ARTICLE 10 

TAX MATTERS 
  

	10.1	Preparation of Tax Returns 

 (a) The General Partner shall arrange for the preparation
and timely filing of all returns of Partnership income, gains, deductions, losses and other items required of the Partnership for federal and state income tax purposes and shall use all reasonable efforts to furnish, within ninety (90) days of
the close of each taxable year, the tax information reasonably required by the Limited Partners and the Special Limited Partner for U.S. federal and state income tax reporting purposes. The federal income tax return of the Partnership shall be filed
annually on IRS Form 1065 (or such other successor form) or on any other IRS form as may be required. 
 (b) If required under the Code or
applicable state or local income tax law, the General Partner shall also arrange for the preparation and timely filing of all returns of income, gains, deductions, losses and other items required of the Subsidiaries of the Partnership for federal
and state income tax purposes and shall use all reasonable efforts to furnish, within ninety (90) days of the close of each taxable year, the tax information reasonably required by the Limited Partners and the Special Limited Partner for U.S.
federal and state income tax reporting purposes. 
  

	10.2	Tax Elections 

 (a) Except as otherwise provided herein, the General Partner shall, in
its sole and absolute discretion, determine whether to make any available election pursuant to the Code. 
 (b) The General Partner shall
elect a permissible method (which need not be the same method for each item or property) of eliminating the disparity between the Gross Asset Value and the tax basis for each item of property contributed to the Partnership or to a Subsidiary of the
Partnership pursuant to the Regulations promulgated under the provisions of Section 704(c) of the Code. 
 (c) The General Partner
shall have the right to seek to revoke any tax election it makes, including the election under Section 754 of the Code, upon the General Partner’s determination, in its sole and absolute discretion, that such revocation is in the best
interests of the Partners. 
 (d) The Partners, intending to be legally bound, hereby authorize the Partnership to make an election (the
“Safe Harbor Election”) to have the “liquidation value” safe harbor 

  
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provided in Proposed Treasury Regulation Section 1.83-3(1) and the Proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43, as such safe harbor may be modified when
such proposed guidance is issued in final form or as amended by subsequently issued guidance (the “Safe Harbor”), apply to any interest in the Partnership transferred to a service provider while the Safe Harbor Election remains
effective, to the extent such interest meets the Safe Harbor requirements (collectively, such interests are referred to as “Safe Harbor Interests”). The tax matters partner is authorized and directed to execute and file the Safe
Harbor Election on behalf of the Partnership and the Partners if and when the Safe Harbor Election becomes available. The Partnership and the Partners (including any person to whom an interest in the Partnership is transferred in connection with the
performance of services) hereby agree to comply with all requirements of the Safe Harbor (including forfeiture allocations) with respect to all Safe Harbor Interests and to prepare and file all U.S. federal income tax returns reporting the tax
consequences of the issuance and vesting of Safe Harbor Interests consistent with such final Safe Harbor guidance. The General Partner is authorized to take such actions as are necessary to achieve, under the Safe Harbor, the effect that the
election and compliance with all requirements of the Safe Harbor referred to above would be intended to achieve under Proposed Treasury Regulation Section 1.83-3, including amending this Agreement. 

 

	10.3	Tax Matters Partner 

 (a) (i) The General Partner shall be the “tax matters
partner” of the Partnership for U.S. federal income tax purposes. 
 (ii) Pursuant to Section 6230(e) of the Code,
upon receipt of notice from the IRS of the beginning of an administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the IRS with the name, address, taxpayer identification number, and profit interest of each
of the Limited Partners, the Special Limited Partner and the Assignees; provided, however, that such information is provided to the Partnership by the Limited Partners, the Special Limited Partner and the Assignees. 

(iii) The tax matters partner is authorized, but not required: 

(A) to enter into any settlement with the IRS with respect to any administrative or judicial proceedings for the adjustment of
Partnership items required to be taken into account by a Partner (including the Special Limited Partner) for income tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings being
referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state that such agreement shall bind all Partners (including the Special Limited Partner), except that such settlement agreement shall
not bind any Partner or the Special Limited Partner 
 (1) who (within the time prescribed pursuant to the Code and
Regulations) files a statement with the IRS providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner or the Special Limited Partner; or 

(2) who is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice
group” (as defined in Section 6223(b)(2) of the Code); 

  
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 (B) if a notice of a final administrative adjustment at the Partnership level of
any item required to be taken into account by a Partner or the Special Limited Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial review of such final adjustment, including the filing of
a petition for readjustment with the Tax Court or the filing of a complaint for refund with the United States Claims Court or the District Court of the United States for the district in which the Partnership’s principal place of business is
located; 
 (C) to intervene in any action brought by any other Partner or the Special Limited Partner for judicial review of
a final adjustment; 
 (D) to file a request for an administrative adjustment with the IRS and, if any part of such request
is not allowed by the IRS, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request; 

(E) to enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item
required to be taken account of by a Partner or the Special Limited Partner for tax purposes, or an item affected by such item; and 

(F) to take any other action on behalf of the Partners, the Special Limited Partner or the Partnership in connection with any
tax audit or judicial review proceeding to the extent permitted by applicable law or regulations. 
 The taking of any action and the
incurring of any expense by the tax matters partner in connection with any such proceeding, except to the extent required by law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to
indemnification of the General Partner set forth in Section 7.6 of this Agreement shall be fully applicable to the tax matters partner in its capacity as such. 

(b) (i) The tax matters partner shall receive no compensation for its services. 

(ii) All third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal
and accounting fees and expenses) shall be borne by the Partnership. 
 (iii) Nothing herein shall be construed to restrict
the Partnership from engaging an accounting firm to assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable. 

  
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	10.4	Organizational Expenses 

 The Partnership shall elect to deduct expenses, if any,
incurred by it in organizing the Partnership ratably over a one hundred eighty (180) month period as provided in Section 709 of the Code. 
  

	10.5	Withholding 

 (a) Each Limited Partner and the Special Limited Partner hereby authorizes
the Partnership to withhold from, or pay on behalf of or with respect to, such Limited Partner or the Special Limited Partner any amount of U.S. federal, state, local, or foreign taxes that the General Partner determines that the Partnership is
required to withhold or pay with respect to any amount distributable or allocable to such Limited Partner or the Special Limited Partner pursuant to this Agreement, including any taxes required to be withheld or paid by the Partnership pursuant to
Sections 1441, 1442, 1445, or 1446 of the Code. 
 (b) (i) Any amount paid on behalf of or with respect to a Limited Partner or the Special
Limited Partner shall constitute a loan by the Partnership to such Limited Partner or the Special Limited Partner, which loan shall be repaid by such Limited Partner or the Special Limited Partner as the case may be within fifteen (15) days
after notice from the General Partner that such payment must be made unless 
 (A) the Partnership withholds such payment
from a distribution which would otherwise be made to the Limited Partner or the Special Limited Partner; or 
 (B) the
General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner or the Special Limited
Partner. 
 (ii) Any amounts withheld pursuant to the foregoing clauses (i)(A) or (B) shall be treated as having been
distributed to the Limited Partner or the Special Limited Partner. 
 (c) (i) Each Limited Partner and the Special Limited Partner hereby
unconditionally and irrevocably grant to the Partnership a security interest in such Limited Partner’s Partnership Interest and such Special Limited Partner’s Special Limited Partner Interest, as the case may be, to secure such Limited
Partner’s or Special Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this Section 10.5. 

(ii) (A) If a Limited Partner or the Special Limited Partner fails to pay when due any amounts owed to the Partnership pursuant to this
Section 10.5, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf of such defaulting Limited Partner or the Special Limited Partner, and in such event shall be deemed to have
loaned such amount to such defaulting Limited Partner or the Special Limited Partner and shall succeed to all rights and remedies of the Partnership as against such defaulting Limited Partner or the Special Limited Partner. 

  
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 (B) Without limitation, in such event, the General Partner shall have the right
to receive distributions that would otherwise be distributable to such defaulting Limited Partner or the Special Limited Partner until such time as such loan, together with all interest thereon, has been paid in full, and any such distributions so
received by the General Partner shall be treated as having been distributed to the defaulting Limited Partner or the Special Limited Partner and immediately paid by the defaulting Limited Partner or the Special Limited Partner to the General Partner
in repayment of such loan. 
 (iii) Any amount payable by a Limited Partner or the Special Limited Partner hereunder shall
bear interest at the highest base or prime rate of interest published from time to time by The Wall Street Journal, plus four (4) percentage points, but in no event higher than the maximum lawful rate of interest on such obligation, such
interest to accrue from the date such amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full. 

(iv) Each Limited Partner or the Special Limited Partner shall take such actions as the Partnership or the General Partner
shall request in order to perfect or enforce the security interest created hereunder. 
 ARTICLE 11 

TRANSFERS AND WITHDRAWALS 
  

	11.1	Transfer 

 (a) (i) The term “Transfer,” when used in this Article 11 with
respect to a Partnership Interest or a Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partner Interest to another Person, or a Limited Partner purports to
assign all or any part of its Limited Partner Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise. 

(ii) The term “Transfer” when used in this Article 11 does not include any exchange of Partnership Units for cash or
Common Stock pursuant to the Exchange Rights Agreement. 
 (b) (i) No Partnership Interest shall be Transferred, in whole or in part, except
in accordance with the terms and conditions set forth in this Article 11. 
 (ii) Any Transfer or purported Transfer of a
Partnership Interest not made in accordance with this Article 11 shall be null and void. 

  
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	11.2	Transfer of the General Partner’s General Partner Interest 

 (a) The General Partner
may not Transfer any of its General Partner Interest or withdraw as General Partner, or Transfer any of its Limited Partner Interest, except 

(i) if holders of at least two-thirds of the Limited Partner Interests consent to such Transfer or withdrawal; 

(ii) if such Transfer is to an entity which is wholly owned by the General Partner and is a Qualified REIT Subsidiary as
defined in Section 856(i) of the Code; or 
 (iii) in connection with a transaction described in Section 11.2(c) or
11.2(d) (as applicable) 
 (b) If the General Partner withdraws as general partner of the Partnership in accordance with
Section 11.2(a), the General Partner’s General Partner Interest shall immediately be converted into a Limited Partner Interest. 

(c) Except as otherwise provided in Section 11.2(d), the General Partner shall not engage in any merger, consolidation or other
combination of the General Partner with or into another Person (other than a merger in which the General Partner is the surviving entity) or sale of all or substantially all of its assets, or any reclassification, or any recapitalization of
outstanding Common Stock (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination of Common Stock) (a “Transaction”), unless 

(i) in connection with the Transaction all Limited Partners will either receive, or will have the right to elect to receive,
for each Partnership Unit an amount of cash, securities, or other property equal to the product of the Exchange Factor and the amount of cash, securities or other property or value paid in the Transaction to or received by a holder of one share of
Common Stock corresponding to such Partnership Unit in consideration of one share of Common Stock at any time during the period from and after the date on which the Transaction is consummated; provided, however, 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 Common Stock, each holder of Partnership Units shall be given the option to
exchange its Partnership Units for the amount of cash, securities, or other property which a Limited Partner would have received had it 

(A) exercised its Exchange Right and 

(B) sold, tendered or exchanged pursuant to the Offer the Common Stock received upon exercise of the Exchange Right immediately
prior to the expiration of the Offer. 
 The foregoing is not intended to, and does not, affect the ability of (i) a
Stockholder of the General Partner to sell its stock in the General Partner or (ii) the General Partner to perform its obligations (under agreement or otherwise) to such Stockholders (including the fulfillment of any obligations with respect to
registering the sale of stock under applicable securities laws). 

  
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 (d) (i) Notwithstanding Section 11.2(c), the General Partner may merge into or consolidate
with another entity if immediately after such merger or consolidation 
 (A) substantially all of the assets of the successor
or surviving entity (the “Surviving General Partner”), other than Partnership Units held by the General Partner, are contributed 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 Surviving General Partner in good faith and 
 (B) the
Surviving General Partner expressly agrees to assume all obligations of the General Partner hereunder. 
 (ii) (A) Upon such
contribution and assumption, the Surviving General Partner shall have the right and duty to amend this Agreement and the Exchange Rights Agreement as set forth in this Section 11.2(d). 

(B) (1) The Surviving General Partner shall in good faith arrive at a new method for the calculation of the Exchange 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. 

(2) 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 Common Stock or options, warrants or other rights relating thereto, and which a holder of Partnership Units could have acquired had such Partnership Units been redeemed for Common
Stock immediately prior to such merger or consolidation. 
 (C) 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 Exchange Factor. 

(iii) The above provisions of this Section 11.2(d) shall similarly apply to successive mergers or consolidations permitted
hereunder. 
  

	11.3	Limited Partners’ Rights to Transfer 

 (a) Subject to the provisions of Sections
11.3(c), 11.3(d), 11.3(e), 11.4 and 11.6, a Limited Partner may, without the consent of the General Partner, Transfer all or any portion of its Limited Partner Interest, or any of such Limited Partner’s economic right as a Limited Partner. In
order to effect such transfer, the Limited Partner must deliver to the General Partner a duly executed copy of the instrument making such transfer and such instrument must evidence the written acceptance by the assignee of all of the terms and
conditions of this Agreement and represent that such assignment was made in accordance with all applicable laws and regulations. 

  
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 (b) (i) If a Limited Partner is Incapacitated, the executor, administrator, trustee, committee,
guardian, conservator or receiver of such Limited Partner’s estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners, for the purpose of settling or managing the estate and such
power as the Incapacitated Limited Partner possessed to Transfer all or any part of his or its interest in the Partnership. 

(ii) The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership. 

(c) The General Partner may prohibit any Transfer by a Limited Partner of its Partnership Units if it reasonably believes (based on the advice
of counsel) such Transfer would require filing of a registration statement under the Securities Act of 1933, as amended, or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the Partnership
Units. 
 (d) No Transfer by a Limited Partner of its Partnership Units may be made to any Person if 

(i) it would adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the General
Partner to any additional taxes under Section 857 or Section 4981 of the Code; 
 (ii) it would result in the
Partnership being treated as an association taxable as a corporation for U.S. federal income tax purposes; 
 (iii) such
Transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in
Section 4975(c) of the Code); 
 (iv) such Transfer would, in the opinion of legal counsel for the Partnership, cause
any portion of the assets of the Partnership to constitute assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101; 

(v) such Transfer would subject the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisors
Act of 1940 or the Employee Retirement Income Security Act of 1974, each as amended; 
 (vi) such Transfer is a sale or
exchange, and such sale or exchange would, when aggregated with all other sales and exchanges during the 12-month period ending on the date of the proposed Transfer, result in 50% or more of the interests in Partnership capital and profits being
sold or exchanged during such 12-month period without the consent of the General Partner, which consent may be withheld in its sole and absolute discretion; or 

(vii) 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. 

  
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 (e) 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 Section 1.752-4(b) of the Regulations) to any lender to the Partnership whose loan constitutes a nonrecourse liability (within the meaning of Section 1.752-1(a)(2) of the Regulations), without the
consent of the General Partner, which may be withheld in its sole and absolute discretion; provided, however, 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 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. 
 (f) Any Transfer in contravention of any of the provisions of
this Section 11.3 shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership. 
  

	11.4	Substituted Limited Partners 

 (a) (i) No Limited Partner shall have the right to
substitute a Permitted Transferee for a Limited Partner in its place. 
 (ii) The General Partner shall, however, have the
right to consent to the admission of a Permitted Transferee of the Partnership Interest of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld by the General Partner in its
sole and absolute discretion. 
 (iii) The General Partner’s failure or refusal to permit such transferee to become a
Substituted Limited Partner shall not give rise to any cause of action against the Partnership or any Partner. 
 (b) A transferee who has
been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement. 

(c) (i) No Permitted Transferee will be admitted as a Substituted Limited Partner, unless such transferee has furnished to the General Partner
evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and, as it relates to the Substituted Limited Partners, the Exchange Rights Agreement, including the power of attorney granted in
Section 2.4 hereof. 
 (ii) Upon the admission of a Substituted Limited Partner, the General Partner shall amend
Exhibit A to reflect the name, address, number of Partnership Units, and Percentage Interest of such Substituted Limited Partner, and to eliminate or adjust, if necessary, the name, address and interest of the predecessor of such
Substituted Limited Partner. 

  
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	11.5	Assignees 

 (a) If the General Partner, in its sole and absolute discretion, does not
consent to the admission of any transferee as a Substituted Limited Partner, as described in Section 11.4(a), such transferee shall be considered an Assignee for purposes of this Agreement. 

(b) An Assignee shall be deemed to have had assigned to it, and shall be entitled to receive distributions from the Partnership and the share
of Net Income, Net Losses, Net Property Gain, Net Property Loss, and any other items of gain, loss, deduction or credit of the Partnership attributable to the Partnership Units assigned to such transferee, but shall not be deemed to be a holder of
Partnership Units for any other purpose under this Agreement, and shall not be entitled to vote such Partnership Units in any matter presented to the Limited Partners, for a vote (such Partnership Units being deemed to have been voted on such matter
in the same proportion as all other Partnership Units held by Limited Partners are voted). 
 (c) If any such transferee desires to make a
further assignment of any such Partnership Units, such transferee shall be subject to all of the provisions of this Article 11 to the same extent and in the same manner as any Limited Partner desiring to make an assignment of Partnership Units. 

 

	11.6	General Provisions 

 (a) No Limited Partner may withdraw from the Partnership other than
as a result of a permitted Transfer of all of such Limited Partner’s Partnership Units in accordance with this Article 11 or, as it relates to the Limited Partners, pursuant to exchange of all of its Partnership Units pursuant to the applicable
Exchange Rights Agreement. 
 (b) (i) Any Limited Partner which shall Transfer all of its Partnership Units in a Transfer permitted pursuant
to this Article 11 shall cease to be a Limited Partner upon the admission of all Assignees of such Partnership Units as Substituted Limited Partners. 

(ii) Similarly, any Limited Partner which shall Transfer all of its Partnership Units pursuant to an exchange of all of its
Partnership Units pursuant to an Exchange Rights Agreement shall cease to be a Limited Partner. 
 (c) Other than pursuant to the Exchange
Rights Agreement or with the consent of the General Partner, transfers pursuant to this Article 11 may only be made as of the first day of a fiscal quarter of the Partnership. 

(d) (i) If any Partnership Interest is transferred or assigned during the Partnership’s fiscal year in compliance with the provisions of
this Article 11 or exchanged pursuant to the applicable Exchange Rights Agreement on any day other than the first day of a Partnership Year, then Net Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items
attributable to such interest for such Partnership Year shall be divided and allocated between the transferor Partner and the transferee Partner by taking into account their varying interests during the Partnership Year in accordance with
Section 706(d) of the Code, using the interim closing of the books method or such other method permitted by the Code as the General Partner may select. 

  
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 (ii) Solely for purposes of making such allocations, each of such items for the
calendar month in which the Transfer or assignment occurs shall be allocated to the transferee Partner, and none of such items for the calendar month in which an exchange occurs shall be allocated to the exchanging Partner, provided,
however, that the General Partner may adopt such other conventions relating to allocations in connection with transfers, assignments, or exchanges as it determines are necessary or appropriate. 

(iii) All distributions pursuant to Section 5.1(a) and Section 5.1(b) attributable to Partnership Units, with respect
to which the Partnership Record Date is before the date of such Transfer, assignment, or exchange of such Partnership Units, shall be made to the transferor Partner or the exchanging Partner, as the case may be, and in the case of a Transfer or
assignment other than an exchange, all distributions pursuant to Section 5.1(a) and Section 5.1(b) thereafter attributable to such Partnership Units shall be made to the transferee Partner. 

(e) In addition to any other restrictions on transfer herein contained, including the provisions of this Article 11, in no event may any
Transfer or assignment of a Partnership Interest by any Partner (including pursuant to Section 8.6) be made without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks the
legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion of a Partnership Interest, such as the Capital Account, or rights to distributions, separate and apart from
all other components of a Partnership Interest; (iv) if in the opinion of legal counsel to the Partnership such transfer would cause a termination of the Partnership for U.S. federal or state income tax purposes (except as a result of the
exchange for Common Stock of all Partnership Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (v) if in the opinion of counsel to the Partnership, there would be a significant risk
that such transfer would cause the Partnership to cease to be classified as a partnership for U.S. federal income tax purposes (except as a result of the exchange for Common Stock of all Partnership Units held by all Limited Partners or pursuant to
a transaction expressly permitted under Section 11.2); (vi) if such transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such transfer is effectuated
through an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code or such transfer causes the Partnership to become a “publicly
traded partnership,” as such term is defined in Section 469(k)(2) or Section 7704(b) of the Code (provided, however, that this clause (vii) shall not be the basis for limiting or restricting in any manner the
exercise of the Exchange Right under Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a significant
risk that the Partnership will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation); (viii) such transfer could adversely affect the ability of the General Partner to remain qualified as a
REIT; or (ix) if in the opinion of legal counsel of the transferring Partner (which opinion and counsel are reasonably satisfactory to the Partnership), or legal counsel of the Partnership, such transfer would adversely affect the ability of
the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, if the General Partner has elected to be qualified as a REIT. 

  
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 (f) The General Partner shall monitor the transfers of interests in the Partnership to determine
(i) if such interests are being traded on an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code; and (ii) whether
additional transfers of interests would result in the Partnership being unable to qualify for at least one of the “safe harbors” set forth in Section 1.7704-1 of the Regulations (or such other guidance subsequently published by the
IRS setting forth safe harbors under which interests will not be treated as “readily tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the “PTP Safe
Harbors”). The General Partner shall take all steps reasonably necessary or appropriate to prevent any trading of interests or any recognition by the Partnership of transfers made on such markets and, except as otherwise provided herein, to
insure that at least one of the PTP Safe Harbors is met; provided, however, that the foregoing shall not authorize the General Partner to limit or restrict in any manner the right of any holder of a Partnership Unit to exercise the Exchange Right in
accordance with the terms of the applicable Exchange Rights Agreement unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is
a significant risk that the Partnership will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation for U.S. federal income tax purposes. 

ARTICLE 12 
 ADMISSION OF PARTNERS

  

	12.1	Admission of Successor General Partner 

 (a) (i) A successor to all of the General
Partner Interest pursuant to Article 11 hereof who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership as the General Partner, effective immediately following such transfer and the admission of such
successor General Partner as a general partner of the Partnership upon the satisfaction of the terms and conditions set forth in Section 12.1(b). 

(ii) Any such transferee shall carry on the business of the Partnership without dissolution. 

(b) A Person shall be admitted as a substitute or successor General Partner of the Partnership only if the following terms and conditions are
satisfied: 
 (i) 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; 

(ii) 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 

  
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 (iii) counsel for the Partnership shall have rendered an opinion (relying on such
opinions from other counsel 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 
 (A) the Partnership to be classified other than as a
partnership for federal income tax purposes, or 
 (B) the loss of any Limited Partner’s limited liability. 

(c) In the case of such admission on any day other than the first day of a Partnership Year, all items attributable to the General Partner
Interest for such Partnership Year shall be allocated between the transferring General Partner and such successor as provided in Section 11.6(d) hereof. 
  

	12.2	Admission of Additional Limited Partners 

 (a) A Person who makes a Capital Contribution
to the Partnership in accordance with this Agreement shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner 

(i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and
the applicable Exchange Rights Agreement, including the power of attorney granted in Section 2.4 hereof, and 
 (ii)
such other documents or instruments as may be required in the discretion of the General Partner in order to effect such Person’s admission as an Additional Limited Partner. 

(b) (i) Notwithstanding anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner
without the consent of the General Partner, which consent may be given or withheld in the General Partner’s sole and absolute discretion. 

(ii) The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of
such Person is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission. 
 (c)
(i) If any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Partnership Year, then Net Income, Net Losses, Net Property Gain, Net Property Loss, each item thereof and all other items allocable among
Partners and Assignees for such Partnership Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees by taking into account their varying interests during the Partnership Year in accordance with
Section 706(d) of the Code, using the interim closing of the books method or such other method permitted by the Code as the General Partner may select. 

  
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 (ii) (A) Solely for purposes of making such allocations, each of such items for the calendar
month in which an admission of any Additional Limited Partner occurs shall be allocated among all of the Partners and Assignees, including such Additional Limited Partner. 

(B) distributions pursuant to Section 5.1(a) and Section 5.1(b) with respect to which the Partnership Record Date is
before the date of such admission shall be made solely to Partners and Assignees, other than the Additional Limited Partner, and all distributions pursuant to Section 5.1(a) and Section 5.1(b) thereafter shall be made to all of the
Partners and Assignees, including such Additional Limited Partner. 
  

	12.3	Amendment of Agreement and Certificate of Limited Partnership 

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

ARTICLE 13 
 DISSOLUTION,
LIQUIDATION AND TERMINATION 
  

	13.1	Dissolution 

 (a) The Partnership shall not be dissolved by the admission of Substituted
Limited Partners, Additional Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General Partner shall continue the business of
the Partnership. 
 (b) The Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the
following (each, a “Liquidating Event”): 
 (i) the expiration of its term as provided in Section 2.5
hereof; 
 (ii) an event of withdrawal of the General Partner, as defined in the Act (other than an event of bankruptcy),
unless, within ninety (90) days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment, effective as
of the date of withdrawal, of a successor General Partner; 
 (iii) an election to dissolve the Partnership made by the
General Partner, with the Consent of the Limited Partners holding at least a majority of the Percentage Interest of the Limited Partners (including Limited Partner Interests held by the General Partner); 

  
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 (iv) entry of a decree of judicial dissolution of the Partnership pursuant to the
provisions of the Act; 
 (v) a Capital Transaction; 

(vi) a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is
bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in
effect, unless prior to the entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment, effective as of a date
prior to the date of such order or judgment, of a substitute General Partner. 
 As used herein, a “majority in interest” shall
refer to Partners (excluding the General Partner) who hold more than fifty percent (50%) of the outstanding Percentage Interests not held by the General Partner. 
  

	13.2	Winding Up 

 (a) (i) Upon the occurrence of a Liquidating Event, the Partnership shall
continue solely for the purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. 

(ii) No Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the
Partnership’s business and affairs. 
 (iii) The General Partner, or, if there is no remaining General Partner, any
Person elected by the Limited Partners holding at least a “majority in interest” (the General Partner or such other Person being referred to herein as the “Liquidator”), shall be responsible for overseeing the winding up
and dissolution of the Partnership and shall take full account of the Partnership’s liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds
therefrom (which may, to the extent determined by the General Partner, include shares of common stock or other securities of the General Partner) shall be applied and distributed in the following order: 

(A) First, to the payment and discharge of all of the Partnership’s debts and liabilities to creditors other than the
Partners; 
 (B) Second, to the payment and discharge of all of the Partnership’s debts and liabilities to the General
Partner; 
 (C) Third, to the payment and discharge of all of the Partnership’s debts and liabilities to the other
Partners; and 
 (D) the balance, if any, shall be distributed to all Partners (including the Special Limited Partner) with
positive Capital Accounts in accordance with their respective positive Capital Account balances after giving effect to all allocations in Exhibit B and all prior distributions under Section 5.1. 

  
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 (iv) The General Partner shall not receive any additional compensation for any
services performed pursuant to this Article 13. 
 (v) Any distributions pursuant to this Section 13.2(a) shall be
made by the end of the Partnership’s taxable year in which the liquidation occurs (or, if later, within 90 days after the date of the liquidation). 

(b) (i) Notwithstanding the provisions of Section 13.2(a) hereof which require liquidation of the assets of the Partnership, but subject
to the order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all of the Partnership’s assets would be impractical or would cause undue loss to the
Partners (including the Special Limited Partner), the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any asset except those necessary to satisfy liabilities of the Partnership (including to those
Partners, including the Special Limited Partner, as creditors) or distribute to the Partners (including the Special Limited Partner), in lieu of cash, as tenants in common and in accordance with the provisions of Section 13.2(a) hereof,
undivided interests in such Partnership assets as the Liquidator deems not suitable for liquidation. 
 (ii) Any such
distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are in the best interests of the Partners (including the Special Limited Partner), and shall be subject to such conditions relating
to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. 

(iii) The Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method of
valuation as it may adopt. 
 (c) In the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made
to the General Partner, the Limited Partners and the Special Limited Partner pursuant to this Article 13 may be: 
 (A)
distributed to a trust established for the benefit of the General Partner, the Limited Partners and the Special Limited Partner for the purposes of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent
or unforeseen liabilities or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership; the assets of any such trust shall be distributed to the General Partner, the Limited Partners and the Special
Limited Partner from time to time, in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust by the Partnership would otherwise have been distributed to the General Partner, the Limited Partners
and the Special Limited Partner pursuant to this Agreement; or 
 (B) withheld or escrowed to provide a reasonable reserve
for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed amounts shall be distributed to the General Partner, the
Limited Partners and the Special Limited Partner in the manner and order of priority set forth in Section 13.2(a), as soon as practicable. 

  
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	13.3	No Obligation to Contribute Deficit 

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

 

	13.4	Rights of Limited Partners 

 (a) Except as otherwise provided in this Agreement, each
Limited Partner shall look solely to the assets of the Partnership for the return of its Capital Contributions and shall have no right or power to demand or receive property other than cash from the Partnership. 

(b) Except as otherwise provided in this Agreement, no Limited Partner shall have priority over any other Partner as to the return of its
Capital Contributions, distributions, or allocations. 
  

	13.5	Notice of Dissolution 

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

	13.6	Termination of Partnership and Cancellation of Certificate of Limited Partnership 

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

 

	13.7	Reasonable Time for Winding-Up 

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

  
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	13.8	Waiver of Partition 

 Each Partner hereby waives any right to partition of the
Partnership property. 
 ARTICLE 14 

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS 
  

	14.1	Amendments 

 (a) The General Partner shall have the power, without the consent of the
Limited Partners or the Special Limited Partner, to amend this Agreement except as set forth in Section 14.1(b) hereof. The General Partner shall provide notice to the Limited Partners and the Special Limited Partner when any action under this
Section 14.1(a) is taken in the next regular communication to the Limited Partners. 
 (b) Notwithstanding Section 14.1(a) hereof,
this Agreement shall not be amended with respect to: 
 (i) any Partner, including the Special Limited Partner, adversely
affected without the Consent of such Partner adversely affected if such amendment would: 
 (A) convert a Limited
Partner’s or the Special Limited Partner’s interest in the Partnership into a General Partner Interest; 
 (B)
modify the limited liability of a Limited Partner or the Special Limited Partner in a manner adverse to such Limited Partner or the Special Limited Partner; or 

(C) amend this Section 14.1(b)(i); 

(ii) any Limited Partner adversely affected without the Consent of Limited Partners holding more than fifty percent
(50%) of the outstanding Percentage Interests of the Limited Partners adversely affected if such amendment would: 
 (A)
alter or change Exchange Rights; 
 (B) create an obligation to make Capital Contributions not contemplated in this
Agreement; 
 (C) alter or change the terms of this Agreement or the Exchange Rights Agreement regarding the rights of the
limited partners with respect to Business Combinations; 
 (D) alter or change the distribution and liquidation rights
provided in Section 5 and 13 hereto, except as otherwise permitted under this Agreement; or 
 (E) amend this
Section 14.1(b)(ii). 

  
 73 

 (c) Section 14.1(b)(i) does not require unanimous consent of all Partners adversely affected
unless the amendment is to be effective against all Partners adversely affected. 
 (d) Notwithstanding Section 14.1(a) hereof, no
provision of this Agreement shall be amended or modified without the Special Limited Partner’s prior written consent if such amendment or modification (i) relates to the distributions, allocations or other rights and privileges of the
Special Limited Partner or (ii) would amend this Section 14.1(d). 
  

	14.2	Meetings of the Partners 

 (a) (i) Meetings of the Partners may be called by the General
Partner and shall be called upon the receipt by the General Partner of a written request by Limited Partners holding 25 percent or more of the Partnership Interests. 

(ii) The request shall state the nature of the business to be transacted. 

(iii) Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty
(30) days prior to the date of such meeting. 
 (iv) Partners may vote in person or by proxy at such meeting. 

(v) Whenever the vote or Consent of the Limited Partners is permitted or required under this Agreement, such vote or Consent
may be given at a meeting of the Partners or may be given in accordance with the procedure prescribed in Section 14.1(a). 

(vi) Except as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Percentage Interests
held by Partners (including the General Partner) shall control. 
 (b) (i) Subject to Section 14.2(a)(vi), any action required or
permitted to be taken at a meeting of the Partners may be taken without a meeting if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or such other percentage as is expressly
required by this Agreement). 
 (ii) Such Consent may be in one instrument or in several instruments, and shall have the same
force and effect as a vote of a majority of the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement). 

(iii) Such Consent shall be filed with the General Partner. 

(iv) An action so taken shall be deemed to have been taken at a meeting held on the effective date of the Consent as certified
by the General Partner. 
 (c) (i) Each Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which
a Limited Partner is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. 

  
 74 

 (ii) Every proxy must be signed by the Partner or an attorney-in-fact and a copy
thereof delivered to the Partnership. 
 (iii) No proxy shall be valid after the expiration of eleven (11) months from
the date thereof unless otherwise provided in the proxy. 
 (iv) Every proxy shall be revocable at the pleasure of the
Partner executing it, such revocation to be effective upon the General Partner’s receipt of written notice of such revocation from the Partner executing such proxy. 

(d) (i) Each meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint
pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate. 
 (ii)
Meetings of Partners may be conducted in the same manner as meetings of the Stockholders of the General Partner and may be held at the same time, and as part of, meetings of the Stockholders of the General Partner. 

ARTICLE 15 
 CLASS M UNITS 

 

	15.1	Designation and Number 

 (a) A series of Partnership Units in the Partnership, designated
as the “Class M Units,” is hereby established. Except as set forth in this Article 15, Class M Units shall have the same rights, privileges and preferences as the Class A Units. Subject to the provisions of this
Article 15 and the special provisions of subparagraph 1(c)(ii) of Exhibit B, Class M Units shall be treated as Partnership Units, with all of the rights, privileges and obligations attendant thereto. In connection with services
provided by the Business Manager under the Business Management Agreement, the General Partner shall cause the Partnership to issue to the Business Manager within thirty (30) days after the end of each fiscal year a number of Class M Units equal
to the quotient of (i) the sum of (A) the Additional Total Return on the Class A Common Stock for such fiscal year plus (B) the Additional Total Return on the Class T Common Stock for such fiscal year divided by
(ii) the Value of a share of Class A Common Stock for such fiscal year. 
 (b) It is intended that the Partnership shall maintain
at all times a one-to-one correspondence between Class M Units and Class A Units for conversion and other purposes. If an Adjustment Event (as defined below) occurs, then the General Partner shall make a corresponding adjustment to the Class M
Units to maintain a one-for-one conversion and economic equivalence ratio between the Class A Units and the Class M Units. The following shall be “Adjustment Events:” (A) the Partnership makes a distribution on all
outstanding Class A Units in Partnership Units, (B) the Partnership subdivides the outstanding Class A Units into a greater number of units or combines the outstanding Class A Units into a smaller number of units, or (C) the
Partnership issues any Partnership Units in exchange for its outstanding Class A Units by way of a reclassification or recapitalization of its Class A Units. If more than one Adjustment Event occurs, the adjustment to the Class M Units
need be made only once using a single formula that takes into account each and every Adjustment Event as if all Adjustment 

  
 75 

 
Events occurred simultaneously. For the avoidance of doubt, the following events shall not be Adjustment Events: (x) the issuance of Partnership Units in a financing, reorganization,
acquisition or other similar business transaction, (y) the issuance of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units in respect of a
capital contribution to the Partnership, including a contribution by the General Partner of proceeds from the sale of securities by the General Partner. If the Partnership takes an action affecting the Class A Units other than actions
specifically described above as Adjustment Events and, in the opinion of the General Partner such action would require an adjustment to the Class M Units to maintain the one-to-one correspondence described above, the General Partner shall have the
right to make such adjustment to the Class M Units, to the extent permitted by law, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to
the Class M Units as herein provided, the Partnership shall promptly file in the books and records of the Partnership an officer’s certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which
certificate shall be conclusive evidence of the correctness of such adjustment absent manifest error. Promptly after the filing of such certificate, the Partnership shall mail a notice to each holder of Class M Units setting forth the adjustment to
his, her or its Class M Units and the effective date of such adjustment. 
  

	15.2	Special Provisions. 

 Class M Units shall be subject to the following special provisions:

 (a) Restrictions and Forfeiture. 

(i) All Class M Units when issued shall be subject to forfeiture and shall constitute “Restricted Class M
Units” and shall remain subject to forfeiture as provided in this Section 15.2(a) until the requirements of this Section 15.2(a) have been satisfied. 

(ii) One hundred percent (100%) of the outstanding Restricted Class M Units shall no longer be subject to forfeiture and
shall constitute “Unrestricted Class M Units” at such time as: 
 (A) The estimated net value of the
Partnership’s assets (as determined by the General Partner in accordance with its valuation policy) plus all distributions made under Sections 5.1(a), 5.1(b)(i) and 5.1(b)(ii) equals the cumulative Net Investment plus the Priority Return on
such cumulative Net Investment (the “Economic Hurdle”); provided, that in the event of an OP Unit Transaction the determination of the value of the Partnership’s assets shall take into account the offering price or
transaction value of the Common Stock, as appropriate; or 
 (B) a Liquidity Event occurs concurrently with or subsequent to
the Economic Hurdle being met. 

  
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 (iii) If the Business Management Agreement is terminated for any reason other
than pursuant to a Termination Without Cause or a Termination For Managerial Cause, any outstanding Restricted Class M Units shall be forfeited immediately. Upon such forfeiture, such Restricted Class M Units shall immediately, and without any
further action, be treated as cancelled and no longer outstanding for any purpose. No consideration or other payment shall be due with respect to any Class M Units that have been forfeited. In connection with any forfeiture of Class M Units, the
balance of the Capital Account of a holder of Class M Units, if any, shall be reduced by the amount of the Capital Account attributable to the forfeited Class M Units, and such reduction shall be reallocated to all holders of OP Units, pro rata in
accordance with their respective Percentage Interests with respect to OP Units. 
 (iv) The General Partner may in its sole
discretion provide for the acceleration, waiver or change of the forfeiture provisions contained in this Section 15.2(a), in whole or in part, based on such factors or criteria as the General Partner may determine. 

(b) Distributions. The holders of Class M Units shall be entitled to distributions in accordance with the terms of the following
provisions: (i) current distributions, if any, of Cash Available for Distribution pursuant to Section 5.1(a), (ii) distributions, if any, of Net Sales Proceeds pursuant to Section 5.1(b)(iii), and (iii) distributions in
liquidation of the Partnership pursuant to Section 13.2. 
 (c) Allocations. Holders of Class M Units shall be entitled to
certain special allocations of gain under subparagraph 1(c)(i) of Exhibit B. 
 (d) Exchange Right. The right to exchange
all or a portion of Partnership Units for cash or, at the option of the Partnership, for shares of Common Stock provided to Limited Partners under Section 8.6 hereof shall not apply with respect to Class M Units unless and until the Class M
Units are converted to Class A Units as provided in clause (e) below and Section 15.4 hereof. 
 (e) Conversion to
Class A Units. Unrestricted Class M Units are eligible to be converted into Class A Units in accordance with Section 15.4 hereof. 
  

	15.3	Voting 

 (a) Holders of Class M Units shall (a) have the same voting rights as the
Limited Partners, with the Class M Units voting as a single class with the OP Units and having one vote per Class M Unit; and (b) have the additional voting rights that are expressly set forth below. So long as any Class M Units remain
outstanding, the Partnership shall not, without the affirmative vote of the holders of at least a majority the Class M Units outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class),
amend, alter or repeal, whether by merger, consolidation or otherwise, the provisions of this Agreement applicable to the Class M Units so as to materially and adversely affect any right, privilege or

  
 77 

 
voting power of the Class M Units or the holders of the Class M Units as such, unless such amendment, alteration, or repeal affects equally, ratably and proportionately the rights, privileges and
voting powers of the Limited Partners; but subject, in any event, to the following provisions: 
 (i) With respect to any OP
Unit Transaction, so long as the Class M Units are treated in accordance with Section 15.4(c) hereof, the consummation of such OP Unit Transaction shall not be deemed to materially and adversely affect such rights, preferences, privileges or
voting powers of the Class M Units or the holders of Class M Units as such; and 
 (ii) Any creation or issuance of any
Partnership Units or of any class or series of Partnership Interest including additional OP Units or Class M Units whether ranking senior to, junior to, or on a parity with the Class M Units with respect to distributions and the distribution of
assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the Class M Units or the holders of Class M Units as such. 

(b) The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be
required, all outstanding Class M Units shall have been converted into Class A Units. 
  

	15.4	Conversion of Class M Units 

 (a) Conversion. Restricted Class M Units shall not
be convertible into Class A Units until they become Unrestricted Class M Units. At such time as the Class M Economic Capital Account Balance attributable to an Unrestricted Class M Unit is equal to the OP Unit Economic Balance for the
Class A Units, each such balance determined on a per unit basis as of the effective date of conversion (the “Conversion Date”), such Unrestricted Class M Unit shall automatically convert into one fully paid and non-assessable
Class A Unit, giving effect to all adjustments (if any) made pursuant to Section 15.1 hereof; provided, that an Unrestricted Class M Unit shall not be convertible into Class A Units if the Class M Economic Capital Account
Balance attributable to such Unrestricted Class M Unit is negative. Each holder of Class M Units covenants and agrees with the Partnership that all Unrestricted Class M Units to be converted pursuant to this Section 15.4 shall be free and clear
of all liens. The conversion of Unrestricted Class M Units shall occur automatically after the close of business on the applicable Conversion Date without any action on the part of such holder of Unrestricted Class M Units, as of which time such
holder of Unrestricted Class M Units shall be credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Class A Units issuable upon such conversion. For purposes of
determining the Class M Economic Capital Account Balance attributable to an Unrestricted Class M Unit, allocations pursuant to subparagraph 1(c)(ii) of Exhibit B shall be made in such a manner so as to allow the greatest number of Class M
Units to convert pursuant to this Section 15.4 at any time which shall include making such allocations to Class M Units in the order in which such Class M Units were issued (for example, all amount allocated pursuant to subparagraph 1(c)(ii) of
Exhibit B would be allocated pro rata amongst the Class M Units issued the first time Class M Units are issued until the Class M Economic Account Balances with respect to such Class M Units of the Partners holding such Class M Units are equal
to the OP Unit Economic Balance for the Class A Units 

  
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 multiplied by the number of Class M Units held by such Partners, and subsequently, the amount allocated pursuant
to subparagraph 1(c)(ii) of Exhibit B would be allocated pro rata amongst the Class M Units issued the next time Class M Units are issued, and so on). 

(b) Adjustment to Gross Asset Value. 

(i) The General Partner shall provide the holders of Class M Units the opportunity but not the obligation to make Capital
Contributions to the Partnership in exchange for Class A Units in order to cause an adjustment to the Gross Asset Value of the Partnership’s assets within the meaning of paragraph (b)(i) of the definition of Gross Asset Value up to two
(2) times each fiscal year including: 
 (A) if the Partnership or the General Partner shall be a party to any OP Unit
Transaction; provided, that the General Partner shall give each holder of Class M Units written notice of such OP Unit Transaction at least thirty (30) days prior to entering into any definitive agreement pursuant to which the OP Unit
Transaction would be consummated; 
 (B) upon a Listing; provided, that the General Partner shall give each holder of
Class M Units written notice of such Listing at least thirty (30) days prior to such Listing; or 
 (C) upon a
Termination Without Cause or a Termination For Managerial Cause; provided, that the General Partner shall give each holder of Class M Units written notice of such Termination Without Cause or such Termination For Managerial Cause at least
thirty (30) days prior to such Termination Without Cause or such Termination For Managerial Cause. 
 (ii) For purposes
of clause (i) of this Section 15.4(b), the value of each OP Unit issued in order to cause an adjustment to the Gross Asset Value of the Partnership’s assets shall be an amount equal to the product of (y) the Value of a share of
Common Stock as of the date the holder of Class M Units makes a Capital Contribution to the Partnership multiplied by (z) the Exchange Factor. 

(iii) For the avoidance of doubt, the issuance of Class M Units shall be treated as an event allowing for an adjustment to the
Gross Asset Value of the Partnership’s assets within the meaning of paragraph (b)(iv) of the definition of Gross Asset Value. 
 (c)
Impact of Conversion for Purposes of Subparagraph 1(c)(ii) of Exhibit B. For purposes of making future allocations under subparagraph 1(c)(ii) of Exhibit B, the portion of the Class M Economic Capital Account Balance of the applicable
holder of Unrestricted Class M Units that is treated as attributable to his, her or its Class M Units shall be reduced, as of the date of conversion, by the product of the number of Unrestricted Class M Units converted and the OP Unit Economic
Balance for the Class A Units. 
 (d) OP Unit Transactions. Immediately prior to or concurrent with an OP Unit Transaction the
maximum number of Class M Units then eligible for conversion (in accordance with the provisions of Section 15.4(a)) shall automatically be converted into an equal number of 

  
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Class A Units, giving effect to all adjustments (if any) made pursuant to Section 15.1 hereof, taking into account any allocations that occur in connection with the OP Unit Transaction
or that would occur in connection with the OP Unit Transaction if the assets of the Partnership were sold at the OP Unit Transaction price or, if applicable, at a value determined by the General Partner in good faith using the value attributed to
the Partnership Units in the context of the OP Unit Transaction (in which case the Conversion Date shall be the effective date of the OP Unit Transaction). In anticipation of such OP Unit Transaction, the Partnership shall use commercially
reasonable efforts to cause each holder of Class M Units to be afforded the right to receive in connection with such OP Unit Transaction in consideration for the Class A Units into which his, her or its Class M Units will be converted the same
kind and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such OP Unit Transaction by a holder of the same number of Class A Units, assuming such holder of Class A Units is not
a Person with which the Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer was made, as the case may be (a “Constituent Person”), or an affiliate of a
Constituent Person. In the event that holders of Class A Units have the opportunity to elect the form or type of consideration to be received upon consummation of the OP Unit Transaction, prior to such OP Unit Transaction the General Partner
shall give prompt written notice to each holder of Class M Units of such election, and shall use commercially reasonable efforts to afford the holders of Class M Units the right to elect, by written notice to the General Partner, the form or type of
consideration to be received upon conversion of each Class M Unit held by such holder into Class A Units in connection with such OP Unit Transaction. If a holder of Class M Units fails to make such an election, such holder (and any of its
transferees) shall receive upon conversion of each Class M Unit held by him, her or it (or by any of his, her or its transferees) the same kind and amount of consideration that a holder of a Class A Unit would receive if such Class A Unit
holder failed to make such an election. The Partnership shall use commercially reasonable efforts to cause the terms of any OP Unit Transaction to be consistent with the provisions of this Section 15.4(d) and to enter into an agreement with the
successor or purchasing entity, as the case may be, for the benefit of any holders of Class M Units whose Class M Units will not be converted into Class A Units in connection with the OP Unit Transaction that will (i) contain provisions
enabling the holders of Class M Units that remain outstanding after such OP Unit Transaction to convert their Class M Units into securities as comparable as reasonably possible under the circumstances to the Class A Units and (ii) preserve
as far as reasonably possible under the circumstances the distribution, special allocation, conversion, and other rights set forth in this Agreement for the benefit of the holders of Class M Units. 

 

	15.5	Profits Interests 

 (a) Class M Units are intended to qualify as a “profits
interest” in the Partnership issued to a new or existing Partner in a partner capacity for services performed or to be performed to or for the benefit of the Partnership within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343, and Rev. Proc.
2001-43, 2001-2 C.B. 191, the Code, the Regulations, and other future guidance provided by the IRS with respect thereto, and the allocations under subparagraph 1(c)(ii) of Exhibit B shall be interpreted in a manner that is consistent
therewith. 
 (b) The Partners agree that the General Partner may make a Safe Harbor Election (if and when the Safe Harbor Election becomes
available), on behalf of itself and of all Partners, to 

  
 80 

 
have the Safe Harbor apply irrevocably with respect to Class M Units transferred in connection with the performance of services by a Partner in a partner capacity. The Safe Harbor Election (if
and when the Safe Harbor Election becomes available) shall be effective as of the date of issuance of such Class M Units. If such election is made, (i) the Partnership and each Partner agree to comply with all requirements of the Safe Harbor
with respect to all interests in the Partnership transferred in connection with the performance of services by a Partner in a partner capacity, whether such Partner was admitted as a Partner or as the transferee of a previous Partner, and
(ii) the General Partner shall cause the Partnership to comply with all record-keeping requirements and other administrative requirements with respect to the Safe Harbor as shall be required by proposed or final regulations relating thereto.

 (c) The Partners agree that if a Safe Harbor Election is made by the General Partner, (A) each Class M Unit issued hereunder with
respect to which the Safe Harbor Election is available is a Safe Harbor Interest, (B) each Class M Unit represents a profits interest received for services rendered or to be rendered to or for the benefit of the Partnership by such holder of
Class M Units in his, her or its capacity as a Partner or in anticipation of becoming a Partner, and (C) the fair market value of each Class M Unit issued by the Partnership upon receipt by such holder of Class M Units as of the date of
issuance is zero (plus the amount, if any, of any Capital Contributions made to the Partnership by such holder of Class M Units in connection with the issuance of such Class M Unit), representing the liquidation value of such interest upon receipt
(with such valuation being consented to and hereby approved by all Partners). 
 (d) Each Partner, by signing this Agreement or by accepting
such transfer, hereby agrees (A) to comply with all requirements of any Safe Harbor Election made by the General Partner with respect to each holder of Class M Units’ Safe Harbor Interest, (B) that each holder of Class M Units shall
take into account of all items of income, gain, loss, deduction and credit associated with its Class M Units as if they were fully vested in computing its U.S. federal income tax liability for the entire period during which it holds the Class M
Units, (C) that neither the Partnership nor any Partner shall claim a deduction (as wages, compensation or otherwise) for the fair market value of such Class M Units issued to a holder of such Class M Units, either at the time of grant of the
Class M Units or at the time the Class M Units becomes substantially vested, and (D) that to the extent that such profits interest is forfeited after the date hereof, the Partnership shall make special forfeiture allocations of gross items of
income, deduction or loss (including, as may be permitted by or under Regulations (or other rules promulgated) to be adopted, notional items of income, deduction or loss) in accordance with the Regulations to be adopted under Sections 704(b) and 83
of the Code. 
 (e) The General Partner shall file or cause the Partnership to file all returns, reports and other documentation as may be
required, as reasonably determined by the General Partner, to perfect and maintain any Safe Harbor Election made by the General Partner with respect to granting of each holder of Class M Units’ Safe Harbor Interest. 

(f) The General Partner is hereby authorized and empowered, without further vote or action of the Partners, to amend this Agreement to the
extent necessary or helpful in accordance with the advice of Partnership tax counsel or accountants to sustain the Partnership’s position that (A) it has complied with the Safe Harbor requirements in order to provide for a Safe Harbor
Election and it has ability to maintain the same, or (B) the issuance of the Class M Units is not a 

  
 81 

 
taxable event with respect to the holders of Class M Units, and the General Partner shall have the authority to execute any such amendment by and on behalf of each Partner pursuant to the power
of attorney granted by this Agreement. Any undertaking by any Partner necessary or desirable to (A) enable or preserve a Safe Harbor Election or (B) otherwise to prevent the issuance of Class M Units from being a taxable event with respect
to the holders of Class M Units may be reflected in such amendments and, to the extent so reflected, shall be binding on each Partner. 

(g) Each Partner agrees to cooperate with the General Partner to perfect and maintain any Safe Harbor Election, and to timely execute and
deliver any documentation with respect thereto reasonably requested by the General Partner, at the expense of the Partnership. 
 (h) No
Transfer of any interest in the Partnership by a Partner shall be effective unless prior to such Transfer, the assignee or intended recipient of such interest shall have agreed in writing to be bound by the provisions of Section 10.2(d) and
this Section 15.5, in a form reasonably satisfactory to the General Partner. 
 (i) The provisions of this Section 15.5 shall
apply regardless of whether or not a holder of Class M Units files an election pursuant to Section 83(b) of the Code. 
 (j) The
General Partner may amend this Section 15.5 as it deems necessary or appropriate to maximize the tax benefit of the issuance of Class M Units to any holder of Class M Units if there are changes in the law or Regulations concerning the issuance
of partnership interests for services. 
 ARTICLE 16 

GENERAL PROVISIONS 
  

	16.1	Addresses and Notice 

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

 

	16.2	Titles and Captions 

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

  
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	16.3	Pronouns and Plurals 

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

	16.4	Further Action 

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

	16.5	Binding Effect 

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

	16.6	Creditors 

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

	16.7	Waiver 

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

 

	16.8	Counterparts 

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

	16.9	Applicable Law 

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

	16.10	Invalidity of Provisions 

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

  
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	16.11	Entire Agreement 

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

	16.12	Merger 

 Notwithstanding any provision of this Agreement, the General Partner, without
the consent of the Limited Partners or any other Person, may (i) merge or consolidate the Partnership with or into any other domestic or foreign partnership, limited partnership, limited liability company, corporation or other Person or
(ii) sell all or substantially all of the assets of the Partnership and may amend this Agreement in any manner or adopt a new limited partnership agreement for the Partnership in connection with any such transaction consistent with the
provisions of this Section 16.12. 
  

	16.13	No Rights as Stockholders 

 Nothing contained in this Agreement shall be construed as
conferring upon the holders of the Partnership Units any rights whatsoever as Stockholders of the General Partner, including any right to receive dividends or other distributions made to Stockholders or to vote or to consent or receive notice as
Stockholders in respect to any meeting of Stockholders for the election of directors of the General Partner or any other matter. 

[SIGNATURE PAGE FOLLOWS] 

  
 84 

 Signature Page to Agreement of Limited Partnership of Inland Residential Operating
Partnership, L.P., among the undersigned and the other parties thereto. 
  

					
	GENERAL PARTNER:
	
	INLAND RESIDENTIAL PROPERTIES TRUST, INC.
		
	By:		 /s/ David Z. Lichterman

			Name:		David Z. Lichterman
			Title:		Vice President, Treasurer and Chief Accounting Officer
	
	SPECIAL LIMITED PARTNER:
	
	INLAND RESIDENTIAL PROPERTIES TRUST SPECIAL LIMITED PARTNER, LLC
		
	By:		Inland Real Estate Investment Corporation,
			its Managing Member
		
	By:		 /s/ Catherine L. Lynch

			Name:		Catherine L. Lynch
			Title:		Chief Financial Officer

 Exhibit A 

Partners’ Contributions and Partnership Interests 
  

																	
	 Name and Address of Partner
	  	Type of Interest	  	Type of Unit	 	Capital
Contribution	 	  	Number of
Partnership Units	 	  	Percentage
Interest	 
	 Inland Residential Properties Trust, Inc.

 
 2901 Butterfield Road

Oak Brook, Illinois 60523
	  	General Partner
 Interest 
	  	GP Units	 	$	200,000	  	  	 	8,000	  	  	 	100	% 
	  	Limited Partner
 Interest 
	  	Class A Units	 	$	0	  	  	 	0	  	  	 	0	% 
	  	Limited Partner
 Interest 
	  	Class T Units	 	$	0	  	  	 	0	  	  	 	0	% 
	 Inland Residential Business Manager & Advisor, Inc.

 
 2901 Butterfield Road

Oak Brook, Illinois 60523
	  	Limited Partner
Interest	  	Class M
Units1	 	 	N/A	  	  	 	0	  	  	 	0	% 
	 Inland Residential Properties Trust Special Limited Partner, LLC

 
 2901 Butterfield Road

Oak Brook, Illinois 60523
	  	Special Limited Partner
Interest	  	N/A	 	 	N/A	  	  	 	N/A	  	  	 	N/A	  

  

	1 	It is not expected that Inland Residential Business Manager & Advisor, Inc. will be a limited partner until it is issued Class M Units in accordance with Article 15 of the Agreement. 

  
 A-1 

 Exhibit B 

Allocations 
 For purposes of this Exhibit B, the
term “Partner” shall include the Special Limited Partner. 
 1. Allocations. 

(a) Allocations of Net Income and Net Loss. Except as otherwise provided in this Agreement, after giving effect to the special
allocations in subparagraph 1(c) and paragraph 2, Net Income, Net Loss and, to the extent necessary, individual items of income, gain, loss or deduction, of the Partnership for each fiscal year or other applicable period of the Partnership shall be
allocated to the Partners holding Partnership Units pro rata and pari passu in accordance with each such Partner’s respective Percentage Interest. 

(b) Allocations of Net Property Gain and Net Property Loss. Except as otherwise provided in this Agreement, after giving effect to the
special allocations in subparagraphs 1(c) and paragraph 2, Net Property Gain, Net Property Loss and, to the extent necessary, individual items of income, gain, credit, loss and deduction comprising Net Property Gain and Net Property Loss of the
Partnership, without duplication, for each fiscal year or other applicable period shall be allocated among the Partners in a manner that will, as nearly as possible cause the Capital Account balance of each Partner at the end of such fiscal year or
other applicable period to equal (i) the amount of the distributions that would be made to such Partner pursuant to Section 5.1(b) of the Agreement if the Partnership were dissolved, its affairs wound up and its assets were sold for cash
equal to their Gross Asset Value, as determined in the reasonable discretion of the General Partner, taking into account any adjustments thereto for such period, all Partnership liabilities were satisfied in full in cash according to their terms
(limited with respect to each nonrecourse liability to the Gross Asset Value of the assets securing such liability), and Net Sales Proceeds (after satisfaction of such liabilities) were distributed in full in accordance with Section 5.1(b) to
the Partners immediately after making such allocations, minus (ii) the sum of such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would
be obligated to contribute to the capital of the Partnership, all computed immediately prior to the hypothetical sale of assets. 
 (c)
Special Allocations. 
 (i) Special Allocations Regarding Class M Units. After giving effect to the special
allocations in paragraph 2 but prior to any allocations under subparagraphs 1(a) or 1(b), and subject to the last sentence of Section 15.4(a), Net Property Gain and, to the extent necessary, individual items of income and gain comprising Net
Property Gain of the Partnership shall be allocated to the Partners holding Class M Units pro rata until their Class M Economic Capital Account Balances are equal to (A) the OP Unit Economic Balance for the Class A Units, multiplied by
(B) the number of Class M Units held by such Partner; provided, that no such Net Property Gain or individual items of income and gain comprising Net Property Gain will be allocated with respect to any particular Class M Unit unless and
to the extent that the OP Unit Economic Balance with respect to the Class A Units exceeds the OP Unit Economic Balance for the Class A 

  
 B-1 

 
Units in existence at the time such Class M Unit was issued. Any allocations made pursuant to the first sentence of this subparagraph 1(c)(i) shall be made among the holders of Class M Units in
proportion to the amounts required to be allocated to each under this subparagraph 1(c)(i). The parties agree that the intent of this subparagraph 1(c)(i) is to make the Capital Account balance associated with each Class M Unit to be economically
equivalent to the Capital Account balance associated with the Class A Units outstanding (on a per-Unit basis), but only if and to the extent that the Capital Account balance associated with such Class A Units outstanding, without regard to
the allocations under this subparagraph 1(c)(i), has increased on a per-Unit basis since the issuance of the relevant Class M Unit. 

(ii) Special Allocations Regarding the Special Limited Partner Interest. After giving effect to the special allocations
in subparagraphs 1(c)(i) and paragraph 2 but prior to any allocations under subparagraph 1(a) and 1(b), Net Property Gain and, to the extent necessary, individual items of income and gain comprising Net Property Gain of the Partnership shall be
allocated to the Special Limited Partner until the Special Limited Partner has received aggregate allocations of income for all fiscal years equal to the aggregate amount of distributions the Special Limited Partner is entitled to receive or has
received with respect to the Special Limited Partner Interest for such fiscal year and all prior fiscal years. Notwithstanding the foregoing, if the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant to the
Partnership’s obligation under a Listing Promote, Termination Promote or Investment Liquidity Promote, Net Property Gain shall be allocated to the Special Limited Partner until the Special Limited Partner has received aggregate allocations
equal to the aggregate amount of distributions the Special Limited Partner is entitled to receive pursuant to such Listing Promote, Termination Promote or Investment Liquidity Promote. 

(iii) Special Allocation of Special Fees. Consistent with Section 4.9, if the Partnership directly or indirectly
incurs Special Fees, such Special Fees shall be specially allocated among the Classes of OP Units to correspond with their appropriate shares of such fees and then proportionately allocated among the Units within each burdened Class. For
example, if the Partnership incurs a distribution and stockholder servicing fee of $200 that is required to be borne entirely by the Partners holding Class T Units, the $200 servicing fee shall be specially allocated to the holders of Class T Units
in proportion to their Class T Units. To the extent that an allocation of Special Fees under this subparagraph 1(c)(iii) would create or increase an Adjusted Capital Account Deficit for a Partner, such allocation instead shall be made
proportionately to the other Partners within the burdened Class who do not have Adjusted Capital Account Deficits. 
 2. Regulatory Allocations.
Notwithstanding any provisions of paragraph 1 of this Exhibit B, the following special allocations shall be made. 
 (a) Minimum
Gain Chargeback (Nonrecourse Liabilities). Except as otherwise provided in Section 1.704-2(f) of the Regulations, if there is a net decrease in Partnership Minimum Gain for any Partnership fiscal year, each Partner shall be specially
allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain to the extent

  
 B-2 

 
required by Section 1.704-2(f) of the Regulations. The items to be so allocated shall be determined in accordance with Sections 1.704-2(f) and (i) of the Regulations. This subparagraph
2(a) is intended to comply with the minimum gain chargeback requirement in said section of the Regulations and shall be interpreted consistently therewith. Allocations pursuant to this subparagraph 2(a) shall be made in proportion to the respective
amounts required to be allocated to each Partner pursuant hereto. 
 (b) Partner Minimum Gain Chargeback. Except as otherwise
provided in Section 1.704-2(i)(4) of the Regulations, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any fiscal year, each Partner who has a share of the Partner Nonrecourse Debt Minimum Gain, determined in
accordance with Section 1.704-2(i)(5) of the Regulations, shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to that Partner’s share of the net decrease
in the Partner Nonrecourse Debt Minimum Gain to the extent and in the manner required by Section 1.704-2(i) of the Regulations. The items to be so allocated shall be determined in accordance with Sections 1.704-2(i)(4) and (j)(2) of the
Regulations. This subparagraph 2(b) is intended to comply with the minimum gain chargeback requirement with respect to Partner Nonrecourse Debt contained in said section of the Regulations and shall be interpreted consistently therewith. Allocations
pursuant to this subparagraph 2(b) shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant hereto. 

(c) Qualified Income Offset. If a Partner unexpectedly receives any adjustments, allocations or distributions described in Sections
1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations, and such Partner has an Adjusted Capital Account Deficit, items of Partnership income (including gross income) and gain shall be specially allocated to such Partner in an amount and
manner sufficient to eliminate the Adjusted Capital Account Deficit as quickly as possible as required by the Regulations. This subparagraph 2(c) is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d)
of the Regulations and shall be interpreted consistently therewith. 
 (d) Nonrecourse Deductions. Nonrecourse Deductions for any
fiscal year or other applicable period shall be allocated to the Partners in accordance with their respective Percentage Interests. 
 (e)
Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any fiscal year or other applicable period with respect to a Partner Nonrecourse Debt shall be specially allocated to the Partner that bears the economic risk of loss for such
Partner Nonrecourse Debt (as determined under Sections 1.704-2(b)(4) and 1.704-2(i)(1) of the Regulations). 
 (f) Section 754
Adjustment. To the extent an adjustment to the adjusted tax basis of any asset of the Partnership pursuant to Section 734(b) of the Code or Section 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the
Regulations, to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated among the Partners in a manner consistent with the manner in which each of their respective Capital Accounts are required to be adjusted pursuant to such section of the
Regulations. 

  
 B-3 

 (g) Gross Income Allocation. If any Partner has an Adjusted Capital Account Deficit at the
end of any fiscal year or other applicable period which is in excess of the amount such Partner is obligated to restore pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations, such Partner shall be
specially allocated items of Partnership income (including gross income) and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this subparagraph 2(g) shall be made if and only to the extent that such
Partner would have an Adjusted Capital Account Deficit in excess of such amount after all other allocations provided for under this Agreement have been tentatively made as if subparagraph 2(c) and this subparagraph 2(g) were not in this Agreement.

 3. Curative Allocations. The General Partner is authorized to offset all Regulatory Allocations either with other Regulatory Allocations or with
special allocations of other items of Partnership income, gain, loss, or deduction pursuant to this paragraph 3. Therefore, notwithstanding any other provision of this Exhibit B (other than the Regulatory Allocations and Tax Allocations), the
General Partner shall make such offsetting allocations of Partnership income, gain, loss or deduction in whatever manner the General Partner determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital
Account balance is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of this Agreement. 

4. Tax Allocations. 
 (a) Items of
Income or Loss. For federal income tax purposes, except as is otherwise provided in this Exhibit B, an allocation of Partnership Net Income, Net Loss, Net Property Gain or Net Property Loss to a Partner shall be treated as an allocation
to such Partner of the same share of each item of income, gain, loss, deduction and item of tax-exempt income or Section 705(a)(2)(B) expenditure (or item treated as such expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the
Regulations) (“Tax Items”) that is taken into account in computing Net Income, Net Loss, Net Property Gain or Net Property Loss. 

(b) Section 1245/1250 Recapture. Subject to subparagraph 4(c) below, if any portion of gain from the sale of Partnership assets is
treated as gain which is ordinary income by virtue of the application of Sections 1245 or 1250 of the Code or is gain described in Section 1(h)(1)(D) of the Code (“Affected Gain”), then such Affected Gain shall be allocated
among the Partners in the same proportion that the depreciation and amortization deductions giving rise to the Affected Gain were allocated. This subparagraph 4(b) shall not alter the amount of Net Income or Net Property Gain (or items thereof)
allocated among the Partners, but merely the character of such Net Income or Net Property Gain (or items thereof). For purposes hereof, in order to determine the proportionate allocations of depreciation and amortization deductions for each fiscal
year or other applicable period, such deductions shall be deemed allocated on the same basis as Net Income, Net Loss, Net Property Gain and Net Property Loss for such respective period. 

(c) Precontribution Gain, Revaluations. With respect to any Contributed Property, the Partnership shall use any permissible method
contained in the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in its sole discretion, to take into account any variation between the adjusted basis of such asset and the fair market value of such

  
 B-4 

 
asset as of the time of the contribution (“Precontribution Gain”). Each Partner hereby agrees to report income, gain, loss and deduction on such Partner’s federal income tax
return in a manner consistent with the method used by the Partnership. If any asset has a Gross Asset Value which is different from the Partnership’s adjusted basis for such asset for federal income tax purposes because the Partnership has
revalued such asset pursuant to Section 1.704-1(b)(2)(iv)(f) of the Regulations, the allocations of Tax Items shall be made in accordance with the principles of Section 704(c) of the Code and the Regulations and the methods of allocation
promulgated thereunder. The intent of this subparagraph 4(c) is that each Partner who contributed to the capital of the Partnership a Contributed Property will bear, through reduced allocations of depreciation, increased allocations of gain or other
items, the tax detriments associated with any Precontribution Gain. This subparagraph 4(c) is to be interpreted consistently with such intent. 

(d) Excess Nonrecourse Liability Safe Harbor. Pursuant to Section 1.752-3(a)(3) of the Regulations, solely for purposes of
determining each Partner’s proportionate share of the “excess nonrecourse liabilities” of the Partnership (as defined in Section 1.752-3(a)(3) of the Regulations), the Partners’ respective interests in Partnership profits
shall be determined under any permissible method reasonably determined by the General Partner; provided, however, that each Partner who has contributed an asset to the Partnership shall be allocated, to the extent possible, a share of “excess
nonrecourse liabilities” of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to the amount of income pursuant to Section 704(c) of the Code and the Regulations
promulgated thereunder (the “Liability Shortfall”). If there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse liabilities equal to the Liability Shortfall, then an amount of
nonrecourse liabilities in proportion to, and to the extent of, the Liability Shortfall shall be allocated to each Partner. 
 (e)
References to Regulations. Any reference in this Exhibit B or the Agreement to a provision of proposed and/or temporary Regulations shall, if such provision is modified or renumbered, be deemed to refer to the successor provision as so
modified or renumbered, but only to the extent such successor provision applies to the Partnership under the effective date rules applicable to such successor provision.) 

(f) Successor Partners. For purposes of this Exhibit B, a transferee of a Partnership Interest shall be deemed to have been
allocated the Net Income, Net Loss, Net Property Gain, Net Property Loss and other items of Partnership income, gain, loss, deduction and credit allocable to the transferred Partnership Interest that previously have been allocated to the transferor
Partner pursuant to this Agreement. 

  
 B-5 

 Exhibit C 

Certificate of Limited PartnershipEX-10.1

 Exhibit 10.1 

BUSINESS MANAGEMENT AGREEMENT 

THIS BUSINESS MANAGEMENT AGREEMENT (this “Agreement”), dated as of February 17, 2015, is entered into by and between Inland
Residential Properties Trust, Inc., a Maryland corporation (the “Company”), Inland Residential Operating Partnership, L.P., a Delaware limited partnership of which the Company is the sole general partner and of which the Business Manager
is a limited partner (the “Operating Partnership”) and Inland Residential Business Manager & Advisor, Inc., an Illinois corporation (the “Business Manager”). All references to the Company in this Agreement shall include
the Company’s wholly-owned subsidiaries and, where applicable, the Operating Partnership. 
 WITNESSETH: 

WHEREAS, the Company is a corporation formed under the Maryland General Corporation Law (the “MGCL”); 

WHEREAS, the Company through its interest in the Operating Partnership intends to invest primarily in income producing multifamily properties
and other real estate related assets; 
 WHEREAS, the Company intends to qualify as a REIT (as defined below), and the Operating Partnership
intends to qualify as a partnership, in each case for U.S. federal income tax purposes; 
 WHEREAS, the Company and its subsidiaries
including the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and facilities available to the Business Manager and to have the Business Manager undertake the duties and responsibilities
hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors (as defined below), all as provided herein; and 

WHEREAS, the Business Manager is willing to undertake to render these services, subject to the supervision of the Board of Directors, on the
terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties hereto
agree as follows: 
  

	1.	Definitions. As used herein, the following capitalized terms shall have the meanings set forth below: 

“Acquisition Expenses” means any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Business
Manager or any Affiliate of either in connection with selecting, evaluating or acquiring any investment in Real Estate Assets regardless of whether the Real Estate Asset is acquired, including but not limited to legal fees and expenses, travel and
communication, appraisals and surveys, nonrefundable option payments regardless of whether the Real Estate Asset is acquired, accounting fees and expenses, computer related expenses, architectural and engineering reports, environmental and asbestos
audits and surveys, title insurance and escrow fees, and personal and miscellaneous expenses. 

 “Acquisition Fees” means any and all fees and commissions, exclusive of
Acquisition Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to any Affiliate of the Company or the Business Manager) in connection with making or investing in Mortgage Loans or other Loans or the
purchase, development or construction of a Real Estate Asset, including, without limitation, real estate commissions, selection fees, investment banking fees, third party seller’s fees (to the extent the Company agrees to pay these fees as part
of an acquisition), development fees, construction fees, non-recurring management fees, loan fees, points or any other fees of a similar nature. Excluded shall be development fees and construction fees paid to any Person not affiliated with the
Sponsor in connection with the actual development and construction of any Property. 
 “Affiliate” or
“Affiliates” means, with respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such other
Person; (ii) any Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any Person directly or indirectly
controlling, controlled by or under common control with such other Person; (iv) any executive officer, director, trustee, general partner or manager of such other Person; and (v) any legal entity for which such Person acts as an executive
officer, director, trustee, general partner or manager. 
 “Average Invested Assets” means, for any specified period, the
average of the aggregate book value of the assets of the Company, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, Loans, Real Estate Assets, and all Real Estate-Related Securities or other securities
and consolidated and unconsolidated Joint Ventures or other partnerships, before non-cash charges such as depreciation, amortization, impairments, bad debt reserves or other non-cash reserves, computed by taking the average of these values at the
end of each month during the relevant calendar quarter. 
 “Board of Directors” means the persons holding the office of
director of the Company as of any particular time under the Charter. 
 “Business Day” means any day other than Saturday,
Sunday or any other day on which national banks are required or are authorized to be closed in Chicago, Illinois. 
 “Business
Management Fee” means the fee payable to the Business Manager under Section 7(b) hereof. 
 “Cause” means
(i) fraud, criminal conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Business Manager, or (ii) if any of the following events occur: (A) the Business Manager breaches any material provision of this
Agreement, and after written notice of such breach, and does not cure such default within thirty (30) days or have begun action within thirty (30) days to cure the default which is not completed with reasonable diligence; (B) the
Business Manager is adjudged bankrupt or insolvent by a court of competent jurisdiction, or an order is made by a court of competent jurisdiction for the appointment of a receiver, liquidator, or trustee of the Business Manager, for all or
substantially all its property by reason of the foregoing, or if a court of competent jurisdiction approves any petition filed against the Business Manager for reorganization, and such adjudication or order remains in force or

  
 2 

 
unstayed for a period of thirty (30) days; or (C) the Business Manager institutes proceedings for voluntary bankruptcy or files a petition seeking reorganization under the federal
bankruptcy laws, or for relief under any law for relief of debtors, or consents to the appointment of a receiver for itself or for all or substantially all its property, or makes a general assignment for the benefit of its creditors, or admits in
writing its inability to pay its debts, generally, as they become due. 
 “Change of Control” means a change of control of
the Company of a nature that would be required to be reported in response to the disclosure requirements of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as enacted
and in force on the date hereof, whether or not the Company is then subject to such reporting requirements; provided, however, that, without limitation, a Change of Control shall be deemed to have occurred if: (i) any “person”
(within the meaning of Section 13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in force on the date hereof, under the
Exchange Act) of securities of the Company representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a merger, consolidation or other reorganization of the Company which is not
approved by the Board of Directors; (iii) there occurs a sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person, which disposition is not approved by the Board of Directors; or
(iv) there occurs a contested proxy solicitation of the Stockholders that results in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election. 

“Charter” means the articles of incorporation of the Company, as amended or restated from time to time. 

“Class A Shares” means a class of Equity Stock, 320,000,000 shares of which are authorized pursuant to the Charter. 

“Class T Shares” means a class of Equity Stock, 80,000,000 shares of which are authorized pursuant to the Charter. 

“Class M Unit” means a Partnership Unit, as that term is defined in the limited partnership agreement of the Operating
Partnership, entitling the holder thereof to the rights of a holder of a Class M Unit as provided in the limited partnership agreement of the Operating Partnership, and the Class M Units correspond with the Class A Shares. 

“Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder or corresponding
provisions of subsequent revenue laws. 
 “Competitive Real Estate Commission” means the real estate or brokerage
commission paid for the purchase or Sale of a Property that is reasonable, customary and competitive in light of the size, type and location of the Property. 

  
 3 

 “Contract Purchase Price” means the amount of monies or other consideration paid
or contributed by the Company, from time to time: (1) to acquire, directly or indirectly, any Real Estate Asset or an Incremental Interest in a Real Estate Asset, and including any indebtedness for money borrowed to finance the purchase,
indebtedness secured by the Real Estate Asset, which is assumed, or indebtedness that is refinanced or restructured, all in connection with the acquisition, and which is or will be secured by the Real Estate Asset at the time of the acquisition; or
(2) to make any Property Improvements. The Contract Purchase Price shall exclude Acquisition Fees and Acquisition Expenses. With respect to monies funded or contributed by the Company to a Joint Venture, the Contract Purchase Price shall be
equal to the product of: (a) the amount determined in accordance with the foregoing; and (b) the Ownership Percentage. 

“Dealer Manager” means Inland Securities Corporation, a Delaware corporation, or any of its successors or assigns. 

“Dealer Manager Fee” means the dealer manager fee payable to the Dealer Manager as described in the Prospectus. 

“Distribution and Shareholder Servicing Fee” means the distribution and shareholder servicing fees payable to the Dealer
Manager as described in the Dealer Manager Agreement dated February 17, 2015. 
 “Distributions” means any
distributions (as such term is defined in Section 2-301 of the MGCL) of money or other property, pursuant to Section 5.5 of the Charter, by the Company to owners of Equity Stock, including distributions that may constitute a return of
capital for federal income tax purposes. 
 “DRP Offering” means the offering of Shares pursuant to the Company’s
Distribution Reinvestment Plan, dated February 17, 2015 as the same may be amended from time to time. 
 “Equity
Stock” means all classes or series of capital stock of the Company authorized under the Charter, including, without limit, any class or classes of common stock, $.001 par value per share, and any class or classes of preferred stock, $.001
par value per share. 
 “Fiscal Year” means the calendar year ending December 31. 

“GAAP” means generally accepted accounting principles as in effect in the United States of America from time to time or any
other accounting basis mandated by the Securities and Exchange Commission. 
 “Gross Offering Proceeds” means the aggregate
purchase price of Shares sold in any Offering, without deduction for selling commissions, volume discounts, Distribution and Shareholder Servicing Fees, Dealer Manager Fees or Organization and Offering Expenses in any Offering. 

“Incremental Interest” means, any increase in the percentage interest owned by the Company, directly or indirectly, including
through a Joint Venture, in a Real Estate Asset, which results from an additional investment by the Company in the Real Estate Asset, whether 

  
 4 

 
through an additional capital contribution, the funding of additional debt or the assumption or guarantee of debt, which, in the case of a Joint Venture, is not matched by a corresponding
contribution or assumption by the other Joint Venture partner. 
 “Independent Director” means any director of the Company
who is an “Independent Director” for purposes of the Charter. 
 “Invested Capital” means the aggregate original
issue price paid for the outstanding Shares, before reduction for Organization and Offering Expenses, as reduced by any prior distribution of Sale or financing proceeds and by amounts used by the Company to repurchase its own Shares. 

“Issuer Costs” means all expenses, other than Selling Commissions, the Dealer Manager Fee and the Distribution and
Shareholder Servicing Fee, incurred by, and to be paid from, the assets of the Company in connection with and in preparing the Company for registration and offering its Shares to the public, including, but not limited to, reimbursing the Dealer
Manager and participating soliciting dealers for bona fide out-of-pocket, itemized and detailed due diligence expenses incurred by these entities, expenses for printing, engraving and mailing, salaries, bonuses, benefits and severance payments of
the employees of the Company, or the Sponsor and its Affiliates, while engaged in sales activity, charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts, expenses of qualifying the sale of the Shares under federal
and state laws, including taxes and fees and accountants’ and attorneys’ fees and expenses. 
 “Joint Venture”
means a joint venture, limited liability company, corporation or partnership arrangement (excluding the Operating Partnership) in which the Company, or any subsidiary thereof, is a co-venturer, member, stockholder or partner with one or more other
Persons or an entity, which acquires, owns or manages Real Estate Assets. 
 “Key Person” means a natural person who, at
the time of the determination: (1) serves as an executive officer of the Company; (2) serves as an executive officer of the Business Manager; or (3) performs services that are integral to the operation of the Company, as mutually
agreed upon in writing by the Company and the Business Manager; provided, however, that for purposes of clauses (1) and (2), a “Key Person” shall not include any person that, as of the date on which the Company has mailed or
otherwise delivered the Qualifying Internalization Notice, concurrently serves as a director or executive officer of any other REIT(s) sponsored by the Sponsor; provided, further, that for purposes of this definition, a secretary of an entity shall
not be considered an “executive officer.” 

  
 5 

 “Listing” means, in the aggregate, the filing of a Form 8-A (or any successor
form) with the Securities and Exchange Commission to register any or all Shares, or the shares of common stock of any of the Company’s subsidiaries, the approval of the original listing application related thereto by the applicable exchange and
the commencement of trading in the Shares, or the shares of common stock of any of the Company’s subsidiaries, on the exchange. A Listing shall also be deemed to occur, and the applicable securities deemed “Listed,” on the effective
date of a merger in which the consideration received by the holders of the Shares is securities of another issuer that are listed on a national securities exchange; provided, however, that if the merger is effectuated through a
wholly-owned subsidiary of the Company, a Listing will not occur until the consideration received by the Company shall be distributed to, or received by, the holders of the Shares; provided further that a Listing of the shares of common stock of the
Company’s subsidiary will not occur until the applicable shares are distributed to the stockholders by distribution, spin-off or otherwise. 

“Liquidity Event” means a sale of all or substantially all of the Company’s Real Estate Assets, a Listing or any merger,
reorganization, business combination, share exchange or acquisition or other similar transaction by any Person or related group of Persons of beneficial ownership of all or substantially all of the Shares in one or more related transactions, or
another similar transaction involving the Company, pursuant to which the Stockholders receive cash or the securities of another issuer that are listed on a national securities exchange, as full or partial consideration for their Shares. 

“Loans” means debt financing evidenced by bonds, notes, debentures or similar instruments or letters of credit and Mortgage
Loans. 
 “Managerial Cause” means a Change of Control or breach of a material term or condition of this Agreement by the
Company which the Company has not cured within 30 days of written notice thereof from the Business Manager or, in the case of any breach that cannot be cured within 30 days by reasonable effort, a failure by the Company to take all necessary action
within a reasonable time period to begin to cure the breach. 

  
 6 

 “Mortgage Financing Fee” means the fee payable to the Business Manager under
Section 7(d) hereof. 
 “Mortgage Loans” means notes or other evidences of indebtedness or obligations that are
secured or collateralized, directly or indirectly, by Real Property or other interests in Real Property. 
 “Net Income”
means, for any period, the aggregate amount of total revenues applicable to the period, less the total expenses applicable to the same period other than additions to, or allowances for, non-cash charges such as depreciation, amortization,
impairments and bad debt reserves and excluding any gain from any Sale. 
 “Net Sales Proceeds” means: 

 

	 	(i)	in the case of a transaction described in clause (i)(A) of the definition of Sale, the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf of the Company or the Operating
Partnership, including all real estate commissions, closing costs and legal fees and expenses; 

  

	 	(ii)	in the case of a transaction described in clause (i)(B) of the definition of Sale, the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf of the Company or the Operating
Partnership, including any legal fees and expenses and other selling expenses incurred in connection with such transaction; 

  

	 	(iii)	in the case of a transaction described in clause (i)(C) of the definition of Sale, the proceeds of any such transaction actually distributed to the Company or the Operating Partnership from the Joint Venture less the
amount of any selling expenses, including legal fees and expenses incurred by or on behalf of the Company or the Operating Partnership (other than those paid by the Joint Venture); 

 

	 	(iv)	 in the case of a transaction or series of transactions described in clause (i)(D) of the definition of Sale, the proceeds of any such transaction
(including the aggregate of all payments under a Mortgage Loan or in satisfaction thereof other than regularly scheduled interest payments) less 

  
 7 

	 	
the amount of selling expenses incurred by or on behalf of the Company or the Operating Partnership, including all commissions, closing costs and legal fees and expenses; 

 

	 	(v)	in the case of a transaction described in clause (i)(E) of the definition of Sale, the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf of the Company or the Operating
Partnership, including any legal fees and expenses and other selling expenses incurred in connection with such transaction; and 

  

	 	(vi)	in the case of a transaction described in clause (ii) of the definition of Sale, the proceeds of such transaction or series of transactions less all amounts generated thereby which are reinvested in one or more
assets within 180 days thereafter and less the amount of any real estate commissions, closing costs, legal fees and expenses and other selling expenses incurred by or allocated to the Company or the Operating Partnership in connection with such
transaction or series of transactions. 

 Net Sales Proceeds shall also include any amounts that the Company determines, in
its discretion, to be economically equivalent to proceeds of a Sale. Net Sales Proceeds shall not include any reserves established by the Company or the Operating Partnership in its sole discretion. 

“Offering” means any Primary Offering or DRP Offering. 

“Organization and Offering Expenses” means the aggregate of all Issuer Costs, plus Selling Commissions and the Dealer Manager
Fee incurred in any particular Offering. 
 “Ownership Percentage” means, with respect to any Real Estate Asset at a
specified time, the percentage of capital stock, membership interests, partnership interests or other equity interests in the Real Estate Asset owned directly or indirectly by the Company at that time, without regard to classification of such equity
interests. 
 “Person” means any individual, corporation, partnership, estate, trust (including a trust qualified under
Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of
Section 509(a) of the Code, joint stock company or other entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended from time to time, or any successor statute
thereto and a group to which an Excepted Holder Limit (as defined in the Charter) applies. 
 “Primary Offering” means a
public offering of Shares on a firm or reasonable “best efforts” basis pursuant to the applicable Prospectus, as amended and supplemented from time to time. 

“Priority Return” means a six percent (6.0%) per annum cumulative, pre-tax non-compounded return on Invested Capital.

  
 8 

 “Property” or “Properties” means interests in: (1) Real
Property; or (2) long-term ground leases, whether or not located on the Real Property, in each case owned or to be owned by the Company either directly or indirectly through one or more Affiliates, Joint Ventures, partnerships or other legal
entities. 
 “Property Improvements” means any monies invested or otherwise funded by the Company, directly or indirectly,
including through the Operating Partnership, to develop, construct, renovate, or otherwise physically improve a Real Estate Asset, including, but not limited to tenant improvements that are capitalized pursuant to GAAP, whether pursuant to
allowances, concessions or rent abatements, all to the extent that the monies invested or funded for each of these purposes were approved by the Board of Directors as part of the initial plan for the Real Estate Asset. 

“Prospectus” has the meaning set forth in Section 2(10) of the Securities Act of 1933, as amended (the “Securities
Act”), including a preliminary prospectus, an offering circular as described in Rule 253 of the General Rules and Regulations under the Securities Act, or, in the case of an intrastate offering, any document by whatever name known, utilized for
the purpose of offering and selling Shares to the public in an Offering. 
 “Real Estate Assets” means any and all
Properties and other direct or indirect investments in equity interests in, or Loans secured, directly or indirectly, by, or otherwise relating to, Property (other than investments in bank accounts, money market funds or other current assets),
including any interest in a Joint Venture, owned by the Company, directly or indirectly through one or more of its Affiliates, including the Operating Partnership, or Joint Ventures. Notwithstanding the foregoing, “Real Estate Assets”
shall not include any investments in Real Estate-Related Securities. 
 “Real Estate Manager” means Inland Residential Real
Estate Services, LLC, a Delaware limited liability company, or any of its successors or assigns, or entities owned or controlled by the Sponsor and engaged by the Company, or the Operating Partnership, to manage a Property or Properties. 

“Real Estate-Related Securities” means equity securities of both publicly-traded and privately-held companies, including
REITs and pass-through entities, that own Real Estate Assets, including investments in commercial mortgage-backed securities, owned by the Company, directly or indirectly through one or more of its Affiliates, including the Operating Partnership, or
through Joint Ventures, but excluding, for these purposes, ownership interests in a Joint Venture. 
 “Real Estate Sales
Commissions” means the fee payable to the Business Manager or its Affiliates under Section 7(c) hereof. 
 “Real
Property” means land, rights or interests in land (including, but not limited to, leasehold interests), and any buildings, structures, improvements, furnishings, fixtures and equipment located on, or used in connection with, land and rights
or interest in land. 
 “REIT” means a corporation, trust, association or other legal entity (other than a real estate
syndication) that is engaged primarily in investing in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both as defined pursuant to the REIT Provisions of the Code. 

  
 9 

 “REIT Provisions of the Code” means Sections 856 through 860 of the Code and any
successor or other provisions of the Code relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder. 

“Sale or Sales” means: 

(i) any transaction or series of transactions, regardless of whether Net Sales Proceeds are distributed to Stockholders as a result thereof,
whereby: 
 (A) the Company or the Operating Partnership directly or indirectly, including through any Affiliate (except as
described in other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of any Property or portion thereof, including the sale-leaseback of any Property consisting of a building only, and including any
event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards, except for a contribution to a Joint Venture in which the Company, directly or indirectly, has, or will have, an ownership
interest; 
 (B) the Company or the Operating Partnership directly or indirectly, including through any Affiliate (except as
described in other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest of the Company or the Operating Partnership in any Joint Venture in which it is a
co-venturer or partner; 
 (C) any Joint Venture in which the Company or the Operating Partnership is a co-venturer or
partner directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of any Property or portion thereof, excluding for these purposes any Loans or Mortgage
Loans, but including any event with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; 

(D) the Company or the Operating Partnership directly or indirectly, including through any Affiliate (except as described in
other subsections of this definition) sells, grants, conveys or relinquishes its interest in any Mortgage Loan or portion thereof, including any payments thereunder or in satisfaction thereof (other than regularly scheduled interest payments) or any
amounts owed pursuant to such Mortgage Loan, and including any event with respect to any Mortgage Loan which gives rise to a significant amount of insurance proceeds or similar awards; or 

(E) the Company or the Operating Partnership directly or indirectly, including through any Affiliate (except as described in
other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of any other asset not previously described in this definition or any portion thereof; but 

  
 10 

 (ii) not including any transaction or series of transactions specified in clause
(i) (A) through (E) above in which the proceeds of such transaction or series of transactions are reinvested by the Company in one or more assets within 180 days thereafter. 

“Selling Commissions” means, in any Offering, any and all commissions payable to underwriters, dealer managers or other
broker-dealers in connection with the sale of any Shares, including, without limitation, commissions payable to the Dealer Manager. 

“Shares” means any shares of common stock, par value $.001 per share, of the Company, and “Share” means one of
those Shares. 
 “Sponsor” means Inland Real Estate Investment Corporation, a Delaware corporation. 

“Stockholders” means the holders of record of the Equity Stock, including the Shares, as maintained in the books and records
of the Company or its transfer agent. 
 “Total Operating Expenses” means the aggregate expenses of every character paid or
incurred by the Company, as determined under GAAP, but excluding: 
 (a) the expenses of raising capital such as Organization
and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and listing of any
shares of the Equity Stock; 
 (b) Property expenses (incurred at each Property, including any fees payable under the
Company’s agreement with the Real Estate Manager); 
 (c) interest payments; 

(d) taxes; 

(e) non-cash expenditures such as depreciation, amortization, bad debt reserves and impairment costs; 

(f) incentive fees paid to Inland Residential Properties Trust Special Limited Partner, LLC; 

(g) Acquisition Fees and Acquisition Expenses; 

(h) real estate commissions on the Sale of Property; and 

(i) other fees and expenses connected with acquiring, disposing and owning Real Estate Assets (such as the costs of
foreclosure, insurance premiums, legal services, maintenance, repair and Property Improvements). 

  
 11 

 “Underwriting Costs” means the aggregate of Selling Commissions and Dealer
Manager Fees incurred by the Company in any offering. 
  

	2.	Duties of the Business Manager. The Business Manager shall consult with the Company and its Board of Directors and shall furnish advice and recommendations with respect to all aspects of the business and affairs
of the Company and its subsidiaries including the Operating Partnership. The Business Manager shall inform the Board of Directors of factors that come to the Business Manager’s attention that may, in its opinion, influence the policies of the
Company. Subject to the supervision of the Board of Directors and consistent with the provisions of the Charter, the Business Manager, directly or indirectly through Affiliates or third parties supervised by the Business Manager or its Affiliates,
shall use commercially reasonable efforts to: 

 (a) identify potential investment opportunities in Real Estate
Assets located in the United States, consistent with the Company’s investment objectives and policies; including but not limited to: 
  

	 	(i)	locate, analyze and select potential investments in Real Estate Assets; 

  

	 	(ii)	structure and negotiate the terms and conditions of acquisition and disposition transactions; 

  

	 	(iii)	arrange financing and refinancing or other changes in the asset or capital structure of the Company as well as the reinvesting of proceeds from the Sale of, or otherwise deal with the investments in, Real Estate Assets;
and 

  

	 	(iv)	oversee material leases and service contracts, related to the Real Estate Assets. 

(b) provide the Board of Directors with research and other statistical data and analysis in connection with Real Estate Assets
and the Company’s operations and investment policies; 
 (c) manage the Company’s day-to-day operations, consistent
with the investment objectives and policies established by the Board of Directors from time to time, including hiring and supervising Company employees, if any; 

(d) investigate and conduct relations with lenders, consultants, accountants, brokers, third party asset managers, attorneys,
underwriters, appraisers, insurers, corporate fiduciaries, banks, builders and developers, sellers and buyers of investments and persons acting in any other capacity specified by the Company from time to time, and enter into contracts in the name of
the Company or the Operating Partnership with, and retaining and supervising services performed by, such parties in connection with investments that have been or may be acquired or disposed of by the Company or the Operating Partnership; 

(e) cooperate with the Real Estate Manager in connection with real estate management services and other activities relating to
Real Estate Assets, subject to any 

  
 12 

 
requirement under the laws, rules and regulations affecting REITs that own Real Property that the Business Manager or the Real Estate Manager, as the case may be, qualifies as an
“independent contractor” as that phrase is used in connection with applicable laws, rules and regulations affecting REITs; 

(f) upon request of the Company, act, or obtain the services of others to act, as attorney-in-fact or agent of the Company in
making, acquiring and disposing of investments, disbursing and collecting funds in connection with any acquisition or disposition, paying the debts and fulfilling the obligations of the Company and handling, prosecuting and settling any claims of
the Company, including foreclosing and otherwise enforcing mortgage and other liens and security interests securing investments; 

(g) assist in negotiations on behalf of the Company with investment banking firms and other institutions or investors for
public or private sales of Equity Stock or for other financing on behalf of the Company, provided that in no event may the Business Manager act as a broker, dealer or underwriter of, or for, the Company; 

(h) maintain, with respect to any Real Property and to the extent available, title insurance or other assurance of title and
customary fire, casualty and public liability insurance; 
 (i) coordinate placement of casualty and public liability
insurance and directors’ and officers’ insurance; 
 (j) except as otherwise provided by the Company, provide
office space, equipment and personnel as required for the performance of the foregoing services as Business Manager, subject to the reimbursement of costs associated therewith; 

(k) advise the Board of Directors, from time to time, of the Company’s operating results; 

(l) coordinate preparation, with the Real Estate Manager, of an operating budget and such other reports as may be appropriate
for each Real Estate Asset; 
 (m) prepare, on behalf of the Company, and supervise the filing of all reports required by the
Securities and Exchange Commission, including without limitation Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, and all reports and returns required by the Internal Revenue Service, other state or
federal governmental agencies or other Company vendors relating to the Company and its operations, including specifically its compliance with REIT rules; 

(n) prepare, on behalf of the Company, and supervise the distribution of reports to Stockholders, and act on behalf of the
Company to communicate with Stockholders, brokers, dealers, financial advisors and custodians, whether by in person, written, electronic or telephonic means; 

(o) arrange for, and plan, the Company’s annual meetings of Stockholders; 

  
 13 

 (p) supervise communications with the Company’s transfer agent; 

(q) maintain the Company’s books and records including, but not limited to, appraisals and fairness opinions obtained in
connection with acquiring or disposing Real Estate Assets if such reports were necessary; 
 (r) assist the Board of
Directors in evaluating Sales and Liquidity Events, including without limitation: (i) performing due diligence in connection with investigating potential Sales or Liquidity Events; (ii) selecting and conducting relations with experts,
investment banking firms and potential acquirors of Real Estate Assets, among others; (iii) preparing investment and other strategic models regarding Liquidity Events for evaluation by the Board of Directors; and (iv) preparing written
reports and making presentations regarding potential Sales and Liquidity Events to the Board of Directors; 
 (s) administer
the Company’s bookkeeping and accounting functions, including without limitation: (i) establishing and implementing accounting and financial reporting procedures, processes and policies; (ii) maintaining the Company’s general
ledger and sub ledgers; (iii) recording investments in Real Estate Assets, investments in Joint Ventures and any funding of indebtedness; (iv) performing accounting research; (v) budgeting, forecasting and analyzing the Company’s
performance; (vi) assisting in selecting and implementing accounting and financial system software; (vii) overseeing platform accounting functions and practices; (viii) reporting to the Board of Directors and the audit committee
thereof; (ix) monitoring the Company’s compliance with The Sarbanes–Oxley Act of 2002, as amended, and the effectiveness of the Company’s internal controls; (x) monitoring and ensuring compliance with ratios and covenants
set forth in the loan documents for any Loans; (xi) providing required monthly, quarterly and annual financial reporting, as applicable, to the Company’s lenders; and (xii) ensuring proper accounting treatment for derivative
instruments; 
 (t) enter into ancillary agreements with the Sponsor and its Affiliates to arrange for the services and
licenses to be provided by the Business Manager hereunder, as summarized on Schedule 2(t) hereto (collectively, the “Service Provider Agreements”); and 

(u) undertake and perform all services or other activities necessary and proper to carry out the Company’s investment
objectives, including providing secretarial, clerical and administrative assistance for the Company and maintaining the Company’s website. 
  

	3.	No Partnership or Joint Venture. The Company and the Business Manager are not, and shall not be deemed to be, partners or Joint Venturers with each other. 

 

	4.	 REIT Qualifications. Notwithstanding any other provision of this Agreement to the contrary, the Business Manager shall refrain from taking any
action that, in its reasonable judgment or in any judgment of the Board of Directors of which the Business Manager has written notice, would adversely affect the qualification of the Company, or of the Operating

  
 14 

	 	
Partnership, as a REIT under the Code or that would violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company, its Equity Stock or its Real
Estate Assets, or that would otherwise not be permitted by the Charter. If any such action is ordered by the Board of Directors, the Business Manager shall promptly notify the Board of Directors that, in the Business Manager’s judgment, the
action would adversely affect the Company’s, or the Operating Partnership’s, status as a REIT or violate any law, rule or regulation or the Charter, and that the Business Manager shall refrain from taking such action pending further
clarification or instruction from the Board of Directors. 

  

	5.	Bank Accounts. At the direction of the Board of Directors or the officers of the Company, the Business Manager shall establish and maintain bank accounts in the name of the Company, and shall collect and deposit
into and disburse from such accounts moneys on behalf of the Company, upon such terms and conditions as the Board of Directors may approve, provided that no funds in any such account shall be commingled with funds of the Business Manager. The
Business Manager shall, from time to time, as the Board of Directors or the officers of the Company may require, render appropriate accountings of such collections, deposits and disbursements to the Board of Directors and to the Company’s
auditors. 

  

	6.	Fidelity Bond. The Business Manager shall not be required to obtain or maintain a fidelity bond in connection with performing its services hereunder. 

 

	7.	Compensation. Subject to the provisions of this Agreement, including Section 11 hereof, and in addition to any compensation for additional services that may be paid pursuant to Section 9
hereof, for services rendered hereunder: 

 (a) the Company shall pay Acquisition Fees to the
Business Manager or its designees, upon acquiring a Real Estate Asset or upon funding each Property Improvement, in an amount equal to 1.5% of the Contract Purchase Price of: (i) each Real Estate Asset, or any Incremental Interest therein,
including by way of exchanging a debt interest for an equity interest, but excluding the contribution of a Real Estate Asset owned, directly or indirectly, by the Company to a Joint Venture; or (ii) any Property Improvement. In the case of a
Real Estate Asset acquired by a Joint Venture from a third party, the Acquisition Fee payable hereunder shall be equal to the product of: (x) 1.5% of the Contract Purchase Price paid by the Joint Venture; and (y) the Ownership Percentage.
The Business Manager shall submit an invoice to the Company at or within a reasonable amount of time following the closing or closings of each event for which an Acquisition Fee is due hereunder, and no less frequently than quarterly, accompanied by
a computation of the Acquisition Fee. The Company shall pay the Acquisition Fee to the Business Manager within a reasonable period of time after receipt by the Company of the invoice; provided, that the Business Manager may decide, in its
sole discretion, to be paid an amount less than the total amount to which it is entitled, and the excess amount that is not paid may, in the Business Manager’s sole discretion, be deferred, waived permanently or accrued, without interest, to be
paid at a later point in time; provided further that the Business Manager may also receive the Subordinated Management Performance Interest(s) as described in Section 7(e) below. 

  
 15 

 (b) the Company shall pay Business Management Fees to the Business
Manager or its designees, in an amount equal to 0.6% of Average Invested Assets on a per annum basis, payable quarterly within thirty Business Days of the end of the applicable quarter in an amount equal to 0.15% of Average Invested Assets as of the
last day of the immediately preceding quarter; provided, that the Business Manager may decide, in its sole discretion, to be paid in either cash or the equivalent amount of our Class A Shares, or a combination thereof; and provided further
that the Business Manager may decide, in its sole discretion, to be paid an amount less than the total amount to which it is entitled in any particular quarter, and the excess amount that is not paid may, in the Business Manager’s sole
discretion, be waived permanently or deferred or accrued, without interest, to be paid at a later point in time. For purposes of paying Business Management Fees in Class A Shares, the price for each Class A Share will be equal to the estimated value
per share published by the Company. If the Company has not published an estimate of value, the price, for these purposes, will be equal to $22.81 per share (the gross offering price of the Class A Shares net of Selling Commissions and the Dealer
Manager Fee). 
 (c) the Company shall pay Real Estate Sales Commissions to the Business Manager or its
designees, upon the Sale of a Property or Properties, in an amount not to exceed the lesser of: (i) one-half of the Competitive Real Estate Commission; and (ii) one percent (1%) of the gross sales price of a Property; provided,
that this fee shall be paid only if the Business Manager or its Affiliate provides a substantial amount of services in connection with the Sale of the applicable Property. Substantial services includes the preparation of property-related materials
or other substantial services performed in connection with a sale. 
 (d) the Company shall pay Mortgage Financing
Fees to the Business Manager or its designees, upon the origination or refinancing of any debt that the Company obtains and uses to finance Properties or other assets, or that is assumed, directly or indirectly, in connection with the
acquisition of Properties or other assets, in an amount equal to one quarter of one percent (0.25%) of the amount available or outstanding under the financing or the assumed debt. 

(e) on an annual basis, the Operating Partnership shall issue Subordinated Management Performance Interest(s) to
the Business Manager or its designees, in the form of Class M Units (representing the Additional Total Return on the Class A and Class T Shares, respectively) equal to the quotient of the annual Additional Total Return on the Class A Shares and
Class T Shares for the current year divided by the “value” of a Class A Share for the current year, all as described in the limited partnership agreement of the Operating Partnership. 

  
 16 

 “Additional Total Return” on the Class A Shares will be equal to fifteen percent (15%)
of the product of: 
  

	 	(i)	the sum of: 

  

	 	a.	the amount by which the per share distributions paid during the current calendar year on the Class A Shares exceed $1.45; plus 

  

	 	b.	the per share change in the “value” of the Class A Shares as of December 31 of the current year compared to the “value” of the Shares on December 31 of the prior year; multiplied by

  

	 	(ii)	the number of Class A Shares outstanding on December 31 of the current year. 

 “Additional
Total Return” on the Class T Shares will be equal to fifteen percent (15%) of the product of: 
  

	 	(i)	the sum of: 

  

	 	a.	the amount by which the per share distributions paid during the current calendar year on the Class T Shares exceed $1.45 (minus the Distribution and Shareholder Servicing Fee paid per share during the same period); plus

  

	 	b.	the per share change in the “value” of the Class T Shares as of December 31 of the current year compared to the “value” of the class T Shares on December 31 of the prior year; multiplied by

  

	 	(ii)	the total number of Class T Shares outstanding on December 31 of the current year. 

In each case, for purposes of calculating Additional Total Return, none of the per share Distributions funded from:
(i) financing; (ii) the waiver of deferral of fees by the Business Manager; or (iii) the proceeds of the Offering shall be treated as Distributions for purposes of the calculation. 

For these purposes only, the “value” of the Class A and Class T Shares during the Primary Offering will be equal
to $22.81 per share (the gross offering price less Selling Commissions and the Dealer Manager Fee). 
 Unless required
by the applicable rules and regulations promulgated by the Financial Industry Regulatory Authority, or “FINRA,” the “value” of the Class A and Class T Shares, in any particular year, will be equal to: (i) the gross
offering price less any Selling Commissions and Dealer Manager Fees on the Class A or Class T Shares in a follow-on offering: (ii) in the absence of a follow-on offering, the “estimated value” of the Shares that the Company
publishes from time to time in accordance with FINRA rules and regulations to assist broker dealers to satisfy their reporting obligations for customer account statement purposes,: (iii) the actual value accorded to the Class A and Class T
Shares in connection with any merger or sale; or (iv) if the Shares are Listed, the volume weighted average closing price of the Class A and Class T Shares, as applicable, for the last thirty trading days of the current year, or such
shorter period as the Shares have been Listed, during the current year. 

  
 17 

	8.	Expenses. 

 (a) In addition to the compensation paid to the Business
Manager, or its designees, pursuant to Section 7 and Section 9 hereof, and subject to the limits herein, the Company shall reimburse the Business Manager, the Sponsor and their respective Affiliates for all expenses
attributable to the Company or its subsidiaries including the Operating Partnership and paid or incurred by the Business Manager, the Sponsor or their respective Affiliates in providing certain services and licenses hereunder, including all expenses
and the costs of salaries, bonuses, benefits and severance payments of persons employed by the Business Manager, the Sponsor and their respective Affiliates and performing services for the Company or any of its subsidiaries, including the Operating
Partnership, except for the salaries and benefits of persons who also serve as one of the Company’s executive officers or as an executive officer of the Business Manager. For purposes of this Section 8(a), a secretary of an entity
shall not be considered an “executive officer.” 
 (b) Expenses that the Company shall reimburse pursuant to
Section 8(a) hereof include, but are not limited to all: 
  

	 	(i)	Issuer Costs, incurred in any particular Offering in an amount not to exceed two percent (2%) of Gross Offering Proceeds; 

  

	 	(ii)	expenses, including Acquisition Expenses incurred in connection with selecting or acquiring Real Estate Assets or any Sale of Real Estate Assets or any contribution of Real Estate Assets to a Joint Venture;

  

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

 

	 	(iv)	interest and other costs for money borrowed on behalf of the Company, including points and other similar fees; 

  

	 	(v)	taxes and assessments on income or attributed to Real Property owned by the Company or its subsidiaries including the Operating Partnership; 

 

	 	(vi)	premiums and other associated fees for insurance policies including director and officer liability insurance; 

  

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

 

	 	(viii)	fees and expenses paid to members of the Board of Directors and the fees and costs of any meetings of the Board of Directors or Stockholders; 

  
 18 

	 	(ix)	expenses associated with dividends or Distributions paid or caused to be paid by the Company or its subsidiaries including the Operating Partnership; 

 

	 	(x)	expenses of organizing the Company or any of its subsidiaries, including the Operating Partnership, including filing, revising, amending, converting or modifying the Charter, bylaws or other organizational documents;

  

	 	(xi)	expenses associated with Stockholder communications including the cost of preparing, printing and mailing annual reports, proxy statements and other reports required by governmental entities; 

 

	 	(xii)	administrative service expenses charged to, or for the benefit of, the Company or its subsidiaries, including the Operating Partnership, by non-affiliated third parties; 

 

	 	(xiii)	audit, accounting and legal fees charged to, or for the benefit of, the Company or its subsidiaries, including the Operating Partnership, by non-affiliated third parties; 

 

	 	(xiv)	transfer agent and registrar’s fees and charges; 

  

	 	(xv)	expenses relating to any offices or office facilities maintained for the use of persons employed by the Business Manager or its Affiliates who provide services to the Company; 

 

	 	(xvi)	payments made by the Business Manager to Affiliates of the Sponsor for the services and licenses provided for the benefit of the Company or its subsidiaries, including the Operating Partnership, as
summarized on Schedule 2(t) hereto; 

  

	 	(xvii)	expenses incurred in connection with any Liquidity Event or Qualifying Internalization as defined in Section 10(a); and 

 

	 	(xviii)	expenses incurred in connection with any investment in Real Estate-Related Securities and charged to, or for the benefit of, the Company or its subsidiaries, including the Operating Partnership, by non-affiliated third
parties. 

 (c) The Company shall also reimburse the Business Manager, the Sponsor and their respective
Affiliates for the salaries, bonuses, benefits and severance payments of persons employed by the Business Manager, the Sponsor or their respective Affiliates (excluding the executive officers of the Business Manager and our executive officers) and
performing services for the Company or any of its subsidiaries including the Operating Partnership, subject to the following: 
  

	 	(i)	 in the case of employees of the Sponsor who also provide services for other entities sponsored by, or affiliated with, the Sponsor, the Company

  
 19 

	 	
shall reimburse only a pro rata portion of the salary and benefits of these persons based on the amount of time spent by such persons on matters for the Company compared to the time spent by such
persons on all other matters including the Company’s matters. 

  

	 	(ii)	in the case of Affiliates of the Sponsor (excluding the Sponsor, Inland Securities Corporation and Inland Risk and Insurance Management Services, Inc.), and unless otherwise agreed to in writing by the Company or the
Business Manager, the Company shall be responsible for the payment of the charges billed by such Affiliates for work done for the benefit of the Company or its subsidiaries, including the Operating Partnership. These charges shall be based upon:
(A) the Affiliate’s “hourly billing rate” of its employees, (B) fixed amounts or (C) a combination of the “hourly billing rate” and fixed amounts, all as set forth in the respective Service Provider Agreements
between the Business Manager or the Company and the Affiliate. The “hourly billing rate” for employees of Affiliates of the Sponsor shall be based on the budgeted salaries, bonuses, benefits, severance payments, overhead and operating
expenses of the applicable Affiliates. In the event that an Affiliate of the Sponsor providing services for the benefit of the Company has revenues for any one Fiscal Year that exceed its expenses for that year, the Affiliate shall rebate the excess
on a pro rata basis to its clients, including the Company, based on the “revenues” of the Affiliate attributable to such client. 

In each case, the Company shall reimburse salaries and related salary expenses pursuant to this Section 8(c) irrespective of
whether the services performed by the subject persons could have been performed directly for the Company by independent, non-affiliated third parties. 

(d) The Business Manager shall prepare a statement documenting the expenses paid or incurred by the Business Manager, the
Sponsor and their respective Affiliates for the Company or its subsidiaries, including the Operating Partnership, on a monthly basis. The Company shall reimburse the Business Manager, the Sponsor and their respective Affiliates for any expenses
reimbursable in accordance with this Section 8 within twenty (20) days after receipt of such statements. With respect to expenses incurred by Affiliates of the Sponsor related to services and licenses provided for the benefit of the
Company, or payments made for these services and licenses, the Business Manager, in its sole discretion, may arrange for payment to be made directly from the Company to the Affiliates of the Sponsor. 

(e) The Business Manager shall cause the Sponsor and its Affiliates to direct their employees, who perform services for the
Company, to keep time sheets or other appropriate billing records and receipts in connection with any reimbursement of expenses made by the Company pursuant to this Section 8. All time sheets or other appropriate billing records or
receipts shall be made available to the Company for review or inspection upon reasonable request to the Business Manager. 

  
 20 

	9.	Compensation for Additional Services, Certain Limitations. The Company and the Business Manager will separately negotiate and agree on the fees for any additional services that the Company asks the Business
Manager or its Affiliates to render in addition to those set forth in Section 2 hereof. Any additional fees or reimbursements to be paid by the Company in connection with the additional services must be fair and reasonable and shall be
approved by a majority of the Board of Directors, including a majority of the Independent Directors. 

  

	10.	Qualifying Internalization. 

 (a) Qualifying Internalization
Process. At any time following the one-year anniversary of the completion of the Primary Offering, the Company may elect to internalize the functions performed by the Business Manager through an agreed-upon, transition with the Business Manager
on the terms and subject to the conditions set forth in this Section 10 (a “Qualifying Internalization”). Any decision to pursue a Qualifying Internalization must be approved by the affirmative vote of a majority of the Board
of Directors, including a majority of the Independent Directors. If the Company elects to pursue a Qualifying Internalization, the Company shall provide written notice to the Business Manager, stating the Company’s intention to pursue the
Qualifying Internalization (the “Qualifying Internalization Notice”). During the one-year period commencing upon the Business Manager’s receipt of the Qualifying Internalization Notice and ending on the one-year anniversary thereof
(the “Transition Period”), the Company and the Business Manager shall transition the services provided by the Business Manager to the Company, as follows: 
  

	 	(i)	during the Transition Period, the Company, or any of its subsidiaries, may, without the Business Manager’s consent, solicit and offer to hire each Key Person for employment by the Company or any of its
subsidiaries; provided, however, that any Key Person solicited or hired by the Company or its subsidiaries during the Transition Period shall not commence his or her employment with the Company or its subsidiaries until the Completion Date (as
hereinafter defined); provided, further, that notwithstanding anything to the contrary in this Agreement, the non-solicitation provisions of Section 18 of this Agreement shall not apply to the Key Persons during the Transition Period;

  

	 	(ii)	upon the written request of the Company, the Business Manager shall assign one or more of the Service Provider Agreements to the Company or the Operating Partnership. 

The closing of the Qualifying Internalization shall occur on the last Business Day of the Transition Period or such other date that the Company
and the Business Manager mutually agree (the “Completion Date”). This Agreement shall terminate on the Completion Date. 

(b) Compensation During the Transition Period. Except as contemplated by Section 10(c), the Company shall
not pay any fee to acquire the Business Manager or to internalize any of the functions provided by the Business Manager. The Company shall continue to compensate the Business Manager on the terms and conditions set forth in this Agreement throughout
the Transition Period. In addition, the Company shall reimburse the Business Manager for: (x) costs and expenses the Business Manager has incurred on the Company’s behalf in connection with the Qualifying Internalization; and
(y) costs and expenses the Business Manager incurs directly in connection with the Qualifying Internalization. 
 (c)
Other Arrangements. Notwithstanding anything to the contrary in Section 10(b) of this Agreement, the Company and the Business Manager may enter into separate arrangements for the purchase and sale of tangible assets or services in
connection with the Qualifying Internalization, which are not addressed by Section 10(a) of this Agreement. These arrangements shall be subject to the negotiation and execution of definitive agreements acceptable to both parties. For the
avoidance of doubt, nothing in this Section 10 is intended to or shall affect any rights or obligations under the partnership agreement that governs the Operating Partnership to pay or receive any cash or securities in connection with a Qualifying
Internalization or any actions related to a Qualifying Internalization, including, for example, a termination of this Agreement. 

  
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	11.	Reimbursement by Business Manager. The Business Manager shall be obligated to reimburse the Operating Partnership in the following circumstances: 

(a) On or before the fifteenth (15th) day after the completion of the annual audit of the Company’s financial
statements for each Fiscal Year, the Business Manager shall reimburse the Company and the Operating Partnership for the amounts, if any, by which the Total Operating Expenses of the Company and the Operating Partnership on a consolidated basis for
the Fiscal Year just ended exceeded the greater of: 
  

	 	(i)	two percent (2%) of the total of the Average Invested Assets for the just ended Fiscal Year; or 

  

	 	(ii)	twenty-five percent (25%) of the Net Income for the just ended Fiscal Year; 

provided, however, that the Business Manager may satisfy any obligation under this Section 11(a) by reducing the
amount to be paid the Business Manager under Section 7 or Section 9 hereunder until the Business Manager has satisfied its obligations under this Section 11(a); provided, further, that the Board of
Directors, by the vote of the Board including a majority of the Independent Directors of the Company, may reduce the amount due under this Section 11(a) upon a finding that the increased expenses were caused by unusual or nonrecurring
factors. 
 (b) If, at the closing of any Primary Offering: (i) the aggregate of all Organization and Offering Expenses,
which for purposes of this section includes the Distribution and Shareholder Servicing Fee, exceeds twelve percent (12%) of the Gross Offering Proceeds from that Offering; or (ii) all Issuer Costs exceed two percent (2%) of the Gross
Offering Proceeds, the Business Manager or its Affiliates shall reimburse the Company for, or pay directly, any excess Organization and Offering Expenses, which for purposes of this section includes the Distribution and Shareholder Servicing Fee, or
Issuer Costs incurred by the Company or the Operating Partnership above these limits. 
  

	12.	Other Activities of the Business Manager. Nothing contained herein shall prevent the Business Manager or any Affiliate of the Business Manager (including the Sponsor) from engaging in any other business or
activity including rendering services or advising on real estate investment opportunities to any other person or entity. 

  
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	13.	Term; Termination of Agreement. 

 (a) Term; Renewal. The initial
term of this Agreement shall begin on February 17, 2015 and end on December 31, 2015 and, thereafter, will continue in force for successive one year periods with the mutual consent of the parties including an affirmative vote of a majority
of the Independent Directors. The Board of Directors will evaluate the performance of the Business Manager annually before renewing this Agreement, and each renewal shall be for a term of no more than one year. 

(b) Termination Other than in Connection with a Change of Control or Qualifying Internalization. Notwithstanding any
other provision of the Agreement to the contrary, this Agreement may be terminated: (i) without Cause or penalty, by the Company upon a vote of a majority of the Independent Directors or by the Business Manager, in each case by providing no
less than sixty (60) days’ prior written notice to the other party; (ii) by the Company for Cause; or (iii) by the Business Manager for Managerial Cause. In the event of the termination of this Agreement, the Business Manager
will cooperate with the Company and take all reasonable steps requested to assist the Board of Directors in making an orderly transition of the functions performed hereunder by the Business Manager. Notwithstanding the foregoing, the Company will
reimburse the Business Manager for all costs and expenses (including, without limitation, reimbursement for salaries, bonuses, benefits and severance payment) incurred by the Business Manager for time spent by the Business Manager in connection with
the termination and for providing the transition services required. In no event shall the Business Manager be required to provide transition services in excess of thirty (30) days after the date of termination of this Agreement. 

(c) Termination Pursuant to a Change of Control. This Agreement may be terminated by the Business Manager upon a Change
of Control. 
 (d) Obligations Following Termination. If this Agreement is terminated, the parties shall have no
liability or obligation to each other under this Agreement, including any obligations imposed by Section 2(a) hereof, except as provided in this Section 13 and Section 16, such obligations shall survive the termination of this
Agreement. 
  

	14.	 Assignments. The Business Manager may not assign this Agreement except to a successor organization that acquires substantially all of its
property and carries on the affairs of the Business Manager; provided that following the assignment, the persons who controlled the operations of the Business Manager immediately prior thereto (the “Control Persons”), control the
operations of the successor organization, including the performance of duties under this Agreement; provided, further, that if at any time subsequent to the assignment the

  
 23 

	 	
Control Persons cease to control the operations of the successor organization, the Company may thereupon terminate this Agreement. This Agreement shall not be assignable by the Company, by
operation of law or otherwise, without the consent of the Business Manager. Any permitted assignment of this Agreement shall bind the assignee hereunder in the same manner as the assignor is bound hereunder. 

 

	15.	Default, Bankruptcy, etc. At the sole option of the Company, this Agreement shall be terminated immediately upon written notice of termination from the Board of Directors to the Business Manager if any of the
following events occurs: 

 (a) the Business Manager violates any provisions of this Agreement and after
written notice of the violation from the Company, the default is not cured within thirty (30) days; or 
 (b) a court of
competent jurisdiction enters a decree or order for relief in respect of the Business Manager in any involuntary case under the applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Business Manager or for any substantial part of its property or orders the winding up or liquidation of the Business Manager’s affairs not dismissed within ninety
(90) days; or 
 (c) the Business Manager commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment of, or taking possession by, a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Business Manager or for any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts, as they become due. 

The Business Manager agrees that if any of the events specified in subsections (b) and (c) of this Section 15 occur, it
will give written notice thereof to the Company within seven (7) days after the occurrence of such event. 
  

	16.	 Action Upon Termination; Survival of Certain Provisions. Except as otherwise set forth in this agreement, upon termination of this Agreement,
the parties shall have no further liability or obligation hereunder, provided this Section 16 shall survive termination of this Agreement. The Business Manager shall not be entitled to compensation under this Agreement after the date of
termination, but shall be paid all compensation accruing or accrued to the date of termination, or which the Business Manager has deferred and then elects to be paid at the time of termination; provided, that with respect to any Business
Management Fee payable under Section 7(b) of this Agreement and any Subordinated Management Performance Interest(s) payable under Section 7(e) of this Agreement for the calendar quarter in which the termination occurred, the
Business Manager shall be paid on a pro rata basis through the date of termination, based on the number of days for which the Business Manager served as such under this Agreement.

  
 24 

	17.	Actions Upon Termination. In connection with the termination of this Agreement, the Business Manager shall: 

(a) pay over to the Company all moneys collected and held for the account of the Company pursuant to this Agreement, after
deducting any accrued or deferred compensation and reimbursement for expenses to which the Business Manager is entitled; 

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

(c) deliver to the Board of Directors all property and documents of the Company then in the custody of the Business Manager

  

	18.	Non-Solicitation. Except as otherwise provided in Section 10 hereof, during the period commencing on the date on which this Agreement is entered into and ending one year following the termination of this
Agreement, the Company shall not, without the Business Manager’s prior written consent, directly or indirectly: (i) solicit, induce, or encourage any person, including any Key Person, to leave the employment or other service of the Business
Manager or any of its Affiliates to become employed by the Company or any of its subsidiaries; or (ii) hire or offer to hire, on behalf of the Company or any other Person, firm, corporation or other business organization, any employee of the
Business Manager or any of its Affiliates, including any Key Person. Further, except as otherwise provided in Section 10 hereof, with respect to any person who left the employment of the Business Manager or any of its Affiliates (x) during the term
of this Agreement or (y) within six months immediately after the termination of this Agreement, the Company shall not, without the Business Manager’s prior written consent, directly or indirectly hire or offer to hire on behalf of the Company
or any other Person, firm, corporation or other business organization, that person during the six months immediately following his or her cessation of employment. 

 

	19.	Tradename and Marks. Concurrent with executing this Agreement, the Company will enter into a license agreement granting the Company and its subsidiaries, including the Operating Partnership, the right, subject to
the terms and conditions of license agreement, to use the “Inland” name and marks. 

  

	20.	Amendments. This Agreement shall not be amended, changed, modified or terminated, or the obligations hereunder discharged, in whole or in part except by an instrument in writing signed by both parties hereto, or
their respective successors or assigns. 

  

	21.	Successors and Assigns. This Agreement shall inure to the benefit of, and shall bind, any permitted successors or assigns of the parties hereto. 

 

	22.	Governing Law. The provisions of this Agreement shall be governed, construed and interpreted in accordance with the internal laws of the State of Illinois without regard to its conflicts of law principles.

  

	23.	Liability and Indemnification. 

 (a) The Company shall indemnify the
Business Manager and its officers, directors, employees and agents (individually an “Indemnitee,” collectively the “Indemnitees”) to the same extent as the Company may indemnify its officers, directors and employees under its
Charter and bylaws so long as: 
  

	 	(i)	the Indemnitee has determined, in good faith, that the course of conduct that caused the loss, liability or expense was in the best interests of the Company; 

  
 25 

	 	(ii)	the Indemnitee was acting on behalf of, or performing services on the part of, the Company; 

  

	 	(iii)	the liability or loss was not the result of negligence or misconduct on the part of the Indemnitee; and 

  

	 	(iv)	any amounts payable to the Indemnitee are paid only out of the Company’s net assets and not from any personal assets of any Stockholder. 

(b) The Company shall not indemnify any Indemnitee seeking indemnification for losses, liabilities or expenses arising from, or
out of, an alleged violation of federal or state securities laws (“Securities Claims”) unless one or more of the following conditions are met: 
  

	 	(i)	there has been a successful adjudication for the Indemnitee on the merits of each count involving alleged material Securities Claims as to such Indemnitee; 

 

	 	(ii)	the Securities Claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to such Indemnitee; or 

 

	 	(iii)	a court of competent jurisdiction approves a settlement of the Securities Claims and finds that indemnification for the costs of settlement and related costs should be made and the court considering the request has been
advised of the position of the Securities and Exchange Commission and of the published opinions of any state securities regulatory authority in which securities of the Company were offered and sold as to indemnification for Securities Claims.

 (c) The Company shall advance amounts to Indemnitees entitled to indemnification hereunder for legal and
other expenses and costs incurred as a result of any legal action for which indemnification is being sought only if all of the following conditions are satisfied: 
  

	 	(i)	the legal action relates to acts or omissions with respect to the performance of duties or services by the Indemnitee for or on behalf of the Company; 

 

	 	(ii)	the legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder acting in his or her capacity as such and a court of competent jurisdiction specifically approves
advancement; and 

  
 26 

	 	(iii)	the Indemnitee receiving the advance provides the Company with written affirmation of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification and undertakes to repay any
monies advanced, together with interest thereon at the applicable rate, if a court finds that the person is not entitled to be indemnified. 

  

	24.	Notices. All notices, requests or demands to be given under this Agreement from one party to the other (collectively, “Notices” and individually a “Notice”) shall be in writing
and shall be given by personal delivery, or by overnight courier service for next Business Day delivery at the other party’s address set forth below, or by telecopy transmission at the other party’s facsimile telephone number set forth
below. Notices given by personal delivery (i.e., by the sending party or a messenger) shall be deemed given on the date of delivery. Notices given by overnight courier service shall be deemed given upon deposit with the overnight courier
service and Notices given by telecopy transmission shall be deemed given on the date of transmission provided such transmission is completed by 5:00 p.m. (sending party’s local time) on a Business Day, otherwise delivery by transmission shall
be deemed to occur on the next succeeding Business Day. If any party’s address is a business, receipt, or the refusal to accept delivery, by a receptionist or by any Person in the employ of such party, shall be deemed actual receipt by the
party of Notices. Notices may be issued by an attorney for a party and in such case such Notices shall be deemed given by such party. The parties’ addresses are as follows: 

 

					
	If to the Company:		Inland Residential Properties Trust, Inc.
			2901 Butterfield Road
			Oak Brook, IL 60523
			Attention:		Mr. Mitchell Sabshon
			Telephone:		(630) 218-8000
			Facsimile:		(630) 218-2218
		
	If to the Business Manager:		Inland Residential Business Manager & Advisor Inc.
			2901 Butterfield Road
			Oak Brook, IL 60523
			Attention:		Ms. Roberta S. Matlin
			Telephone:		(630) 218-8000
			Facsimile:		(630) 218-4955

  
 27 

					
	If to the Operating Partnership:		Inland Residential Operating Partnership, L.P.
			2901 Butterfield Road
			Oak Brook, IL 60523
			Attention:		David Lichterman
			Telephone:		(630) 218-8000
			Facsimile:		(630) 586-6790

 Any party may at any time give notice in writing to the other party of a change of its address for the purpose of this
Section 24. 
  

	25.	Conflicts of Interest and Fiduciary Relationship to the Company and to the Company’s Stockholders. The Company and the Operating Partnership on the one hand and the Business Manager on the other hand
recognize that their relationship is subject to various conflicts of interest. The Business Manager, on behalf of itself and its Affiliates, acknowledges that the Business Manager has a fiduciary relationship to the Company, its Stockholders and the
Operating Partnership and its partners. The Business Manager, on behalf of itself and its Affiliates, shall endeavor to balance the interests of the Company and the Operating Partnership with the interests of the Business Manager and its Affiliates
in making any determination where a conflict of interest exists between the Company or the Operating Partnership and the Business Manager or its Affiliates. 

  

	26.	Headings. The section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement. 

[Remainder of this page intentionally left blank] 

  
 28 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written. 
  

													
	COMPANY:		BUSINESS MANAGER:
		
	INLAND RESIDENTIAL PROPERTIES TRUST, INC.		INLAND RESIDENTIAL BUSINESS MANAGER & ADVISOR, INC.
					
	By:		 /s/ Mitchell Sabshon
				By:		 /s/ Roberta S. Matlin

	Name:		Mitchell Sabshon				Name:		Roberta S. Matlin
	Its:		Chief Executive Officer				Its:		Vice President
		
	OPERATING PARTNERSHIP:		
		
	 INLAND RESIDENTIAL OPERATING PARTNERSHIP, L.P.
		
						
	By:		Inland Residential Properties Trust, Inc.								
	Its:		General Partner								
							
			 By:
		 /s/ David Z. Lichterman
								
			Name:		David Z. Lichterman								
			 Its:
		Vice President, Treasurer and Chief Accounting Officer								

 Signature Page — Business Management Agreement 

 Schedule 2(t) 

The Business Manager shall enter into the Service Provider Agreements with certain Affiliates of the Sponsor, as summarized below (as used in
this Schedule 2(t), the “Service Providers”), to arrange for the services and licenses to be provided by the Business Manager under the Agreement, as summarized below. 

 

	 	•	 	Communications Services Agreement. Inland Marketing & Communications, Inc. will provide marketing, communications and media relations services, including designing and placing advertisements, designing and
producing marketing materials, preparing and reviewing press releases and maintaining branding standards. 

  

	 	•	 	Computer Services Agreement. Inland Computer Services, Inc., or “ICS,” will provide data processing, computer equipment and support services and other information technology services, including custom
application, development and programming, support and troubleshooting, data storage and backup, email services, printing services and networking services, including Internet access. ICS will be reimbursed for all direct costs incurred by, and
expenses incurred by, ICS in providing computer services, including programming and consulting time, printing costs, equipment rentals and computer usage. 

  

	 	•	 	Insurance and Risk Management Services Agreement. Inland Risk and Insurance Management Services, Inc., or “IRIM,” will provide insurance and risk management services, including negotiating and obtaining
insurance policies, managing and settling claims and reviewing and monitoring the Company’s insurance policies. IRIM will receive a portion of commissions paid by insurance companies to third party brokers for placing insurance policies for the
Company. So long as IRIM receives commissions in an amount sufficient to cover operating expenses, the Company will not pay any fees or reimbursements for the services provided by IRIM. 

	 	•	 	Office Services Agreement. Inland Office Services, Inc., or “IOS,” will provide office services, including purchasing and maintaining office supplies, office equipment and furniture, providing mailroom,
courier and switchboard services, overseeing all telecommunication functions and managing procurement programs. IOS will negotiate and manage contract programs including but not limited to business travel, cellular phone services and shipping
services. 

  

	 	•	 	Personnel Services Agreement. Inland Human Resource Services, Inc. will provide personnel services, including pre-employment services, new hire services, human resources, benefits administration and payroll and
tax administration. 

  

	 	•	 	Property Tax Services Agreement. Investors Property Tax Services, Inc. will provide property tax services, including tax reduction, such as monitoring properties and seeking ways to lower assessed valuations, and
tax administration, such as coordinating payment of real estate taxes. 

  

	 	•	 	Software License Agreement. ICS will grant the Business Manager a non-exclusive and royalty-free right and license to use and copy software owned by ICS and to use certain third party software according to the
terms of the applicable third party licenses to ICS, all in connection with the Business Manager’s obligations under the Agreement. ICS will provide the Business Manager with all upgrades to the licensed software, as available.

  
 2

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