Document:

ex10-13.htm

FORM OF

 

SUN BANCORP, INC.

Salary Continuation Plan

for

Bernard A. Brown

ARTICLE I  -   Purpose: Effective Date

	
1.1.  

	
Purpose. The purpose of this Salary Continuation Plan for Bernard A. Brown (hereinafter, the "Plan”) is to permit the Company to provide the Participant with an additional benefit payable upon his retirement from service with the Company in recognition of his past and future service to the Company. The Company has determined that in planning for the succession of a new Chairman of the Board for the Company upon the future retirement of Mr. Bernard A. Brown as the Chairman, it will be in the best interest of the Company and its stockholders that Mr. Brown be appointed as Chairman Emeritus to serve as a consultant to the incoming Chairman and as a consultant to the Board generally.  The Committee wishes to compensate Mr. Brown for offering to advise such incoming Chairman and the Board generally, as well as to reward Mr. Brown for his many years of service to the Company, by means of establishing a salary continuation plan upon the retirement of Mr. Brown as Chairman of the Company.

	
1.2. 

	
 This Plan shall be effective as of September 24, 2010.

 

ARTICLE II  -   Definitions

For the purposes of this Plan, the following terms shall have the meanings indicated unless the context clearly indicates otherwise:

Beneficiary. means the person, persons or entity as designated by the Participant, entitled under Article IV to receive any Plan benefits that may be payable after the Participant's death.  Such Beneficiary shall be the person or persons designated by the Participant to receive any benefits payable under the Plan in the event of such Participant=s death.  A Participant=s last will and testament or any codicil thereto shall not constitute written designation of a Beneficiary.  In the absence of such written designation, the Beneficiary shall be the Participant=s surviving spouse, if any, or if none, the Participant=s estate.

Board. "Board" means the Board of Directors of the Company.

Change in Control of the Company shall mean (1) a change in ownership of the Company under paragraph (i) below, or (2) a change in effective control of the Company under paragraph (ii) below, or (3) a change in the ownership of a substantial portion of the assets of the Company under paragraph (iii) below.

 

  

  

  

 

	 	
(i)

	
Change in the ownership of the Company.  A change in the ownership of the Company shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(g)(5)(v)(B)), acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation.

	 	
(ii)

	
Change in the effective control of the Company.  A change in the effective control of the Company shall occur on the date that either (i) any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30% or more of the total voting power of the stock of such corporation; or (ii) a majority of members of the corporation’s Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the corporation’s Board of Directors prior to the date of the appointment or election, provided that this sub-section (ii) is inapplicable where a majority shareholder of the Company is another corporation.

	 	
(iii)

	
Change in the ownership of a substantial portion of the Company’s assets.  A change in the ownership of a substantial portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation Section 1.409A-3(g)(5)(v)(b)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of (i) all of the assets of the Company, or (ii) the value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

	 	
(iv)

	
For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation Section 1.409A-3(g), except to the extent that such regulations are superseded by subsequent guidance.

  “Code” means the Internal Revenue Code of 1986, as amended.

  "Committee" means the Compensation Committee of the Board of Directors of the Company.

Company.  "Company" means Sun Bancorp, Inc., a State of New Jersey corporation with its main office in Vineland, New Jersey,  or any successor thereto.

  “Disability” means (A) the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (B) the Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.  The Committee shall determine the existence of Disability, in its sole discretion, and may rely on advice from a medical examiner satisfactory to the Committee in making the determination.

 

  

2

  

 

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

 

  "Participant" means Bernard A. Brown, Chairman of the Board of the Company.  Such individual shall remain a Participant in this Plan until such time as all benefits payable under this Plan have been paid in accordance with the provisions hereof.

Plan. “Plan” means the Salary Continuation Plan for Bernard A. Brown.

Retirement Date.  "Retirement Date" means the date on which Participant terminates employment with Company on or after completion of not less than twenty years of service as an employee with the Company.

Salary Continuation  Benefit.  "Salary Continuation Benefit" means the benefit payable under this Plan which shall be equal to the Participant’s monthly base salary in effect on the Retirement Date.

 

   “Specified Employee” means an employee who at the time of Termination of Employment is a key employee of the Company, if any stock of the Company is publicly traded on an established securities market or otherwise.  For purposes of this Plan, an employee is a key employee if the employee is (i) an officer of the Company having an annual compensation greater than $150,000 (as indexed), (ii) a 5-percent owner of Company, or (iii) a 1-percent owner of the Company having an annual compensation from the Company greater than $150,000 at any time during the twelve (12) month period ending on December 31 (the “identification period”).  If the employee is a key employee during an identification period, the employee is treated as a key employee for purposes of this Plan during the twelve (12) month period that begins on the first day of April following the close of the identification period.

 

Termination of Employment. “Termination of Employment” shall have the same meaning as "separation from service", as that phrase is defined in Section 409A of the Code (taking into account all rules and presumptions provided for in the Section 409A regulations).

ARTICLE III  -  Salary Continuation  Benefits

	
3.1.  

	
Retirement Benefit Eligibility.  If the Participant has a Termination of Employment event on or after the Retirement Date, or the Participant suffers a Disability or death after meeting the requirements for such termination on or after the Retirement Date while still an employee of the Company, then Company shall commence payment to the Participant of the Salary Continuation Benefit.  Payments shall commence within forty-five days after the date of such Termination of Employment, Disability or death.

	
3.2.

	
  The Salary Continuation Benefit shall be paid as a monthly benefit payable for a period of thirty-six months certain.  In the event of the death of the Participant prior to the complete payment of benefits under this Plan, Company shall pay to the Participant’s Beneficiary, the remaining unpaid amounts at the same time and in the same manner as if the Participant had survived.

  

3

  

	
3.3.  

	
  Company shall withhold from payments hereunder any taxes required to be withheld from such payments under local, state or federal law.  A Beneficiary, however, may elect not to have withholding of federal income tax pursuant to Section 3405 (a) (2) of the Code, or any successor provision thereto.

	
3.4.  

	
Payment to Guardian.  If a Plan benefit is payable to a minor or a person declared incompetent or to a person incapable of handling the disposition of property, the Committee may direct payment to the guardian, legal representative or person having the care and custody of such minor, or incompetent person.  The Committee may require proof of incompetency, minority, incapacity or guardianship as it may deem appropriate prior to distribution.  Such distribution shall completely discharge the Committee and Company from all liability with respect to such benefit.

	
3.5.  

	
  Any currently held stock options or stock awards previously awarded to the Participant as of the date of such Participant’s Termination of Employment, Disability or death shall continue to be earned without regard to continued service as an employee or director of the Company, and such previously awarded options shall remain exercisable for their remaining term without regard to any prior termination of service as an employee or director of the Company. 

ARTICLE IV  -   Beneficiary Designation

	
4.1.  

	
Beneficiary Designation.  Participant shall have the right, at any time, to designate one (1) or more persons or entity as Beneficiary (both primary as well as secondary) to whom benefits under this Plan shall be paid in the event of Participant's death prior to complete distribution of benefits due.  Each Beneficiary designation shall be in a written form prescribed by the Committee and shall be effective only when filed with the Committee during the Participant's lifetime.

	
4.2.  

	
  Any Beneficiary designation may be changed by Participant without the consent of the previously named Beneficiary by the filing of a new Beneficiary designation with the Committee.

	
4.3.  

	
No Beneficiary Designation. If Participant fails to designate a Beneficiary in the manner provided above, if the designation is void, or if the Beneficiary designated by deceased Participant dies before the Participant or before complete distribution of the Participant's benefits, the Participant's Beneficiary shall be the person in the first of the following classes in which there is a survivor:

	
a)  

	
The Participant's surviving spouse;

	
b)  

	
The Participant's children in equal shares, except that if any of the children predeceases the Participant but leaves surviving issue, then such issue shall take by right of representation the share the deceased child would have taken if living;

	
c)  

	
The Participant's estate.

	
4.4.  

	
  Payment to the Beneficiary shall completely discharge the Company’s obligations under this Plan.

 

 

  

4

  

 

ARTICLE V  -   Administration

	
5.1.  

	
Committee; Duties. This Plan shall be administered by the Committee, which shall have the authority to make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan and decide or resolve any and all questions, including interpretations of the Plan, as they may arise in such administration.  A majority vote of the Committee members voting, a quorum being present, shall make decisions on administration of the Plan.

	
5.2.  

	
Agents.  The Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be counsel to the Company.

	
5.3.  

	
Binding Effect of Decisions.  The decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan.

	
5.4.  

	
  The Company shall indemnify and hold harmless the members of the Committee against any and all claims, loss, damage, expense or liability arising from any action or failure to act with respect to this Plan on account of such member's service on the Committee, except in the case of gross negligence or willful misconduct.

	
5.5.  

	
Election of Committee After Change in Control.   After a Change in Control, vacancies on the Committee shall be filled by a majority vote of the remaining Committee members and Committee members may be removed only by such a vote.  If no Committee members remain, a new Committee shall be selected and appointed by the Participant in the Plan immediately preceding such Change in Control.  No amendment shall be made to Article V, or other Plan provisions regarding Committee authority with respect to the Plan, without prior approval by the Committee.

ARTICLE VI.  -   Claims And Review Procedures

	
6.1

	
Claims Procedure.  A Participant or Beneficiary (“claimant”) who has not received benefits under this Plan that he believes should be distributed shall make a claim for such benefits as follows:

	
6.1.1

	
Initiation – Written Claim.  The claimant initiates a claim by submitting to the Committee a written claim for the benefits.  If such a claim relates to the contents of a notice received by the claimant, the claim must be made within sixty (60) days after such notice was received by the claimant.  All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred.  The claim must state with particularity the determination desired by the claimant.

	
6.1.2

	
Timing of Committee Response.  The Committee shall respond to such claimant within ninety (90) days after receiving the claim.  If the Committee determines that special circumstances require additional time for processing the claim, the Committee can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior 

 

 

  

5

  

 

	
 

	
to the end of the initial ninety (90) day period that an additional period is required.  The notice of extension must set forth the special circumstances and the date by which the Committee expects to render its decision.

 

	
6.1.3

	
Notice of Decision.  If the Committee denies part or the entire claim, the Committee shall notify the claimant in writing of such denial.  The Committee shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

	
  

	
(a)

	
The specific reasons for the denial;

	
  

	
(b)

	
A reference to the specific provisions of this Plan on which the denial is based;

	
  

	
(c)

	
A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed;

	
  

	
(d)

	
An explanation of this Plan’s review procedures and the time limits applicable to such procedures; and

	
  

	
(e)

	
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

	
6.2

	
Review Procedure.  If the Committee denies part or the entire claim, the claimant shall have the opportunity for a full and fair review by the Committee of the denial as follows:

	
6.2.1

	
Initiation – Written Request.  To initiate the review, the claimant, within sixty (60) days after receiving the Committee’s notice of denial, must file with the Committee a written request for review.

	
6.2.2

	
Additional Submissions – Information Access.  The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.  The Committee shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

	
6.2.3

	
Considerations on Review.  In considering the review, the Committee shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

	
6.2.4

	
Timing of Committee Response.  The Committee shall respond in writing to such claimant within sixty (60) days after receiving the request for review.  If the Committee determines that special circumstances require additional time for processing the claim, the Committee can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60) day period that an additional period is required.  The notice of extension must set forth the special circumstances and the date by which the Committee expects to render its decision.

 

 

  

6

  

 

	
6.2.5

	
Notice of Decision.  The Committee shall notify the claimant in writing of its decision on review.  The Committee shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth:

	
  

	
(a)

	
The specific reasons for the denial;

	
  

	
(b)

	
A reference to the specific provisions of this Agreement on which the denial is based;

	
  

	
(c)

	
A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits; and

	
  

	
(d)

	
A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

ARTICLE VII  -   Termination, Suspension or Amendment

	
7.1.  

	
Termination, Suspension or Amendment of Plan.  The Board may, in its sole discretion, terminate or suspend the Plan at any time, in whole or in part.  The Board may amend the Plan at any time.  Any amendment may provide different benefits or amounts of benefits from those herein set forth.  However, no such termination, suspension or amendment shall adversely affect the benefits of the Participant which have accrued prior to such action, or the benefits of any Beneficiary of the Participant who has previously died without the written consent of the Participant or Beneficiary.

	
7.2.  

	
Upon a termination of the Plan, the Participant may receive a lump sum payment immediately paid to the Participant (without regard to any actual Termination of Employment) or designated Beneficiary, provided, however, any such distributions to be made in accordance with this Article 7 shall comply with the requirements and limitation under Section 409A of the Code, including that such lump-sum distribution shall only be made: (1) within thirty (30) days before, or twelve (12) months after a Change in Control, provided that all distributions are made no later than twelve (12) months following such termination of the Plan and further provided that all of the Company’s arrangements which are substantially similar to the Plan are terminated so the Participant and all participants under similar arrangements shall receive all amounts of deferred compensation under such terminated arrangements within twelve (12) months of the termination of the arrangements; (2) Upon the Company’s dissolution or with the approval of a bankruptcy court provided that the amounts deferred under the Plan are included in the Participant’s gross income in the latest of (i) the calendar year in which the Plan terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively practical; or (3) upon the Company’s termination of this and all other non-account balance plans (as referenced in Section 409A of the Code or the regulations thereunder), provided that (1) the termination and liquidation of the Plan does not occur proximate to a downturn in the financial health of the Company or the Bank,  (2) all distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and the Company does not adopt any new non-account balance plans for a minimum of three (3) years following the date of such termination.

 

  

7

  

 

ARTICLE VIII  -   Miscellaneous

	
8.1.  

	
Unfunded Plan.  This Plan is an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of "management or highly-compensated employees" within the meaning of Sections 201, 301, and 401 of the ERISA, and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.  Accordingly, the Board may terminate the Plan and make no further benefit payments, or remove the Participant if it is determined by the United States Department of Labor, a court of competent jurisdiction, or an opinion of counsel that the Plan constitutes an employee pension benefit plan within the meaning of Section 3(2) of ERISA (as currently in effect or hereafter amended) which is not so exempt.

	
8.2.  

	
Company Obligation.  The obligation to make benefit payments to Participant under the Plan shall be an obligation solely of the Company, and any successors thereto.

	
8.3.  

	
Unsecured General Creditor.   Participant and Beneficiary shall be unsecured general creditors, with no secured or preferential right to any assets of Company or any other party for payment of benefits under this Plan.  Any property held by Company for the purpose of generating the cash flow for benefit payments shall remain its general, unpledged and unrestricted assets.  Company's obligation under the Plan shall be an unfunded and unsecured promise to pay money in the future.

	
8.4.  

	
Trust Fund.  Company shall be responsible for the payment of all benefits provided under the Plan.  At its discretion, Company may establish one (1) or more trusts, with such trustees as the Board may approve, for the purpose of providing for the payment of such benefits.  Although such a trust shall be irrevocable, its assets shall be held for payment of all Company's general creditors in the event of insolvency.  To the extent any benefits provided under the Plan are paid from any such trust, Company shall have no further obligation to pay those benefits directly to the Participant or Beneficiary.  If not paid from the trust, such benefits shall remain the obligation of Company.

	
8.5.  

	
Nonassignability.  Neither Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be unassignable and nontransferable.  No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by Participant or any other person, nor be transferable by operation of law in the event of Participant's or any other person's bankruptcy or insolvency.

  

8

  

	
8.6.  

	
Not a Contract of Employment.  This Plan shall not constitute a contract of employment between Company and the Participant.  Nothing in this Plan shall give Participant the right to be retained in the service of Company or to interfere with the right of Company to discipline or discharge Participant at any time.

	
8.7.  

	
Protective Provisions.  Participant shall cooperate with Company by furnishing any and all information requested by Company in order to facilitate the payment of benefits hereunder, and by taking such physical examinations as Company may deem necessary and by taking such other action as may be requested by Company.

	
8.8.  

	
Governing Law.  The provisions of this Plan shall be construed and interpreted according to the laws of the State of New Jersey, except as may be preempted by federal law.

	
8.9.  

	
Validity.  If any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein.

	
8.10.  

	
Notice.  Any notice or filing required or permitted under the Plan shall be sufficient if in writing and hand delivered or sent by registered or certified mail.  Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.  Mailed notice to the Committee shall be directed to the Company's address.  Mailed notice to Participant or Beneficiary shall be directed to the individual's last known address in Company's records.

	
8.11.  

	
Successors.  The provisions of this Plan shall bind and inure to the benefit of Company and its successors and assigns.  The term successors as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of Company, and successors of any such corporation or other business entity.

 

ARTICLE 9  -   SECTION 409A COMPLIANCE

	
9.1

	
Notwithstanding anything herein to the contrary, the Company shall make reasonable efforts to administer the Plan and make benefit payments hereunder in a manner that is not deemed to be contrary to the requirements set forth at Section 409A of the Code and regulations and notices promulgated thereunder such that any payments made would result in the requirement for the recipient of such payments to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code; provided, however, the Company shall not have any responsibility to a Participant or Beneficiary(ies) with respect to any tax liabilities that may be applicable to any payments made under the Plan, whether such tax liabilities are applicable to compliance with Section 409A of the Code or otherwise.

  

9

  

	
9.2

	
If any provision of the Plan shall be determined to be inconsistent with the requirements of Section 409A of the Code, then, the Plan shall be construed, to the maximum extent possible, to give effect to such provision in a manner consistent with Section 409A of the Code, and if such construction is not possible, as if such provision had never been included.

	
9.3

	
Delay of Payment Commencement to Specified Employee.  Notwithstanding any provision in the Plan to the contrary, if the Participant is a Specified Employee, such Participant's benefit payments shall become first payable to him as of the first day of the seventh month next following his Termination of Employment, if and only if such payments, if made earlier, would result in the recipient of such payments to pay additional interest and taxes to be imposed in accordance with Section 409A(a)(1)(B) of the Code; provided that such payment delay shall not be required in the event of the death of the Participant.  Therefore, in the event this Section 9.3 is applicable to the Participant, any distribution which would otherwise be paid to the Participant within the first six months following the Termination of Employment shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following the Termination of Employment along with any payments applicable to such seventh month.  All subsequent distributions shall be paid in the manner specified.  Notwithstanding anything herein to the contrary, this Section 9.3 shall only be effective if the stock of the Company or a parent corporation is publicly traded as set forth at Section 409A(a)(2)(B)(i) of the Code.

	
9.4

	
Distributions Upon Income Inclusion Under Section 409A of the Code.  Upon the inclusion of any amount as taxable income to the Participant as a result of the failure of this non-qualified deferred compensation agreement to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the Salary Continuation Benefit, a distribution shall be made to the Participant as soon as is administratively practicable following the discovery of the plan failure in an amount sufficient for the Participant to pay such tax liability.

	
9.5

	
Subsequent Changes to Time and Form of Payment.

The Company may permit a subsequent change to the time and form of benefit distributions.  Any such change must be submitted in writing by the Participant to the Company and shall be considered made only when it becomes irrevocable under the terms of the Plan. Any change will be considered irrevocable not later than thirty (30) days following acceptance of the change by the Committee, subject to the following rules:

(1)           the subsequent deferral election may not take effect until at least twelve (12) months after the date on which the election is made;

(2)           the payment (except in the case of death or Disability), upon which the subsequent deferral election is made is deferred for a period of not less than five (5) years from the date such payment would otherwise have been paid; and

(3)           in the case of a payment made at a specified time, the election to make a change must be made not less than twelve (12) months before the date the payment is scheduled to be paid.

  

10

  

    IN WITNESS WHEREOF, the parties hereto intending to be legally bound to hereby agree to the terms and conditions set forth herein on the first day set forth hereinabove.

 

	  	  	
Sun Bancorp, Inc. (“Company”)

	  	  	  	  
	  	  	  	  
	  	  	
By:

	  
	
Attest

	  	  	
Thomas X. Geisel

	  	  	
Its:

	
President and CEO

	  	  	  	  
	  	  	  	  
	
Witness

	  	  	
Bernard A. Brown, Participant

	  	  	  	  
	  	  	  	  

11exv10w1

EXHIBIT 10.1

FORM OF

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SCHOTTENSTEIN REALTY LP

a Delaware limited partnership

THE LIMITED PARTNERSHIP INTERESTS THAT ARE THE SUBJECT OF THIS AGREEMENT HAVE NOT BEEN REGISTERED
OR QUALIFIED UNDER ANY FEDERAL OR STATE SECURITIES LAWS. SUCH INTERESTS ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AND MAY NOT BE TRANSFERRED EXCEPT AS PERMITTED UNDER FEDERAL AND STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY
MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINED TERMS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II ORGANIZATIONAL MATTERS
	 	 	22	 
	Section 2.01. Formation; Withdrawal of Initial Limited Partner
	 	 	22	 
	Section 2.02. Name
	 	 	22	 
	Section 2.03. Registered Office and Agent; Principal Office
	 	 	22	 
	Section 2.04. Power of Attorney
	 	 	23	 
	Section 2.05. Term
	 	 	24	 
	Section 2.06. Partnership Interests are Securities
	 	 	24	 
	 
	 	 	 	 
	ARTICLE III PURPOSE
	 	 	24	 
	Section 3.01. Purpose and Business
	 	 	24	 
	Section 3.02. Powers
	 	 	25	 
	Section 3.03. Partnership Only for Partnership Purposes Specified
	 	 	25	 
	Section 3.04. Representations and Warranties by the Parties
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IV CAPITAL CONTRIBUTIONS
	 	 	27	 
	Section 4.01. Capital Contributions of the Partners
	 	 	27	 
	Section 4.02. Classes of Partnership Units
	 	 	28	 
	Section 4.03. Issuances of Additional Partnership Interests
	 	 	28	 
	Section 4.04. Additional Funds and Capital Contributions
	 	 	29	 
	Section 4.05. Incentive Compensation Plan
	 	 	31	 
	Section 4.06. LTIP Units
	 	 	32	 
	Section 4.07. Conversion of LTIP Units
	 	 	36	 
	Section 4.08. No Interest; No Return
	 	 	40	 
	Section 4.09. Other Contribution Provisions
	 	 	40	 
	Section 4.10. Not Publicly Traded
	 	 	40	 
	 
	 	 	 	 
	ARTICLE V DISTRIBUTIONS
	 	 	41	 
	Section 5.01. Requirement and Characterization of Distributions
	 	 	41	 
	Section 5.02. Interests in Property not Held Through the Partnership
	 	 	41	 
	Section 5.03. Distributions In-Kind
	 	 	41	 
	Section 5.04. Amounts Withheld
	 	 	41	 
	Section 5.05. Distributions Upon Liquidation
	 	 	42	 
	Section 5.06. Distributions to Reflect Issuance of Additional Partnership Units
	 	 	42	 
	Section 5.07. Restricted Distributions
	 	 	42	 

i

 

	 	 	 	 	 
	Clause	 	Page	 
	ARTICLE VI ALLOCATIONS
	 	 	42	 
	Section 6.01. Timing and Amount of Allocations of Net Income and Net Loss
	 	 	42	 
	Section 6.03 Additional Allocation Provisions
	 	 	45	 
	Section 6.04 Tax Allocations
	 	 	47	 
	 
	 	 	 	 
	ARTICLE VII MANAGEMENT AND OPERATIONS OF BUSINESS
	 	 	48	 
	Section 7.01. Management
	 	 	48	 
	Section 7.02. Certificate of Limited Partnership
	 	 	52	 
	Section 7.03. Restrictions on General Partner’s Authority
	 	 	52	 
	Section 7.04. Reimbursement of the General Partner
	 	 	54	 
	Section 7.05. Outside Activities of the General Partner
	 	 	55	 
	Section 7.06. Contracts with Affiliates
	 	 	56	 
	Section 7.07. Indemnification
	 	 	56	 
	Section 7.08. Liability of the General Partner
	 	 	58	 
	Section 7.09. Other Matters Concerning the General Partner
	 	 	60	 
	Section 7.10. Title to Partnership Assets
	 	 	61	 
	Section 7.11. Reliance by Third Parties
	 	 	61	 
	 
	 	 	 	 
	ARTICLE VIII RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS
	 	 	62	 
	Section 8.01. Limitation of Liability
	 	 	62	 
	Section 8.02. Management of Business
	 	 	62	 
	Section 8.03. Outside Activities of Limited Partners
	 	 	62	 
	Section 8.04. Return of Capital
	 	 	62	 
	Section 8.05. Adjustment Factor
	 	 	63	 
	Section 8.06. Redemption Rights
	 	 	63	 
	Section 8.07. Approval of Certain Taxable Sales and Debt Reduction
	 	 	66	 
	 
	 	 	 	 
	ARTICLE IX BOOKS, RECORDS, ACCOUNTING AND REPORTS
	 	 	66	 
	Section 9.01. Records and Accounting
	 	 	66	 
	Section 9.02. Partnership Year
	 	 	66	 
	 
	 	 	 	 
	ARTICLE X TAX MATTERS
	 	 	67	 
	Section 10.01. Preparation of Tax Returns
	 	 	67	 
	Section 10.02. Tax Elections
	 	 	67	 
	Section 10.03. Tax Matters Partner
	 	 	68	 
	Section 10.04. Withholding
	 	 	69	 
	Section 10.05. Organizational Expenses
	 	 	69	 
	 
	 	 	 	 
	ARTICLE XI TRANSFERS AND WITHDRAWALS
	 	 	70	 
	Section 11.01. Transfer
	 	 	70	 

ii

 

	 	 	 	 	 
	Clause	 	Page	 
	Section 11.02. Transfer of General Partner’s Partnership Interest
	 	 	70	 
	Section 11.03. Transfer of Limited Partners’ Partnership Interests
	 	 	71	 
	Section 11.04. Substituted Limited Partners
	 	 	72	 
	Section 11.05. Assignees
	 	 	73	 
	Section 11.06. General Provisions
	 	 	73	 
	 
	 	 	 	 
	ARTICLE XII ADMISSION OF PARTNERS
	 	 	75	 
	Section 12.01. Admission of Successor General Partner
	 	 	75	 
	Section 12.02. Admission of Additional Limited Partners
	 	 	75	 
	Section 12.03. Amendment of Agreement and Certificate of Limited Partnership
	 	 	76	 
	Section 12.04. Limit on Number of Partners
	 	 	76	 
	Section 12.05. Admission
	 	 	77	 
	 
	 	 	 	 
	ARTICLE XIII DISSOLUTION, LIQUIDATION AND TERMINATION
	 	 	77	 
	Section 13.01. Dissolution
	 	 	77	 
	Section 13.02. Winding Up
	 	 	77	 
	Section 13.03. Deemed Distribution and Recontribution
	 	 	80	 
	Section 13.04. Rights of Limited Partners
	 	 	80	 
	Section 13.05. Notice of Dissolution
	 	 	80	 
	Section 13.06. Cancellation of Certificate of Limited Partnership
	 	 	80	 
	Section 13.07. Reasonable Time for Winding-Up
	 	 	80	 
	 
	 	 	 	 
	ARTICLE XIV PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS
	 	 	81	 
	Section 14.01. Procedures for Actions and Consents of Partners
	 	 	81	 
	Section 14.02. Amendments
	 	 	81	 
	Section 14.03. Voting by General Partner
	 	 	81	 
	Section 14.04. Meetings of the Partners
	 	 	81	 
	 
	 	 	 	 
	ARTICLE XV GENERAL PROVISIONS
	 	 	83	 
	Section 15.01. Addresses and Notice
	 	 	83	 
	Section 15.02. Titles and Captions; Construction
	 	 	83	 
	Section 15.03. Pronouns and Plurals
	 	 	83	 
	Section 15.04. Further Action
	 	 	83	 
	Section 15.05. Binding Effect
	 	 	83	 
	Section 15.06. Waiver
	 	 	83	 
	Section 15.07. Counterparts
	 	 	84	 
	Section 15.08. Applicable Law
	 	 	84	 
	Section 15.09. Entire Agreement
	 	 	84	 
	Section 15.10. Invalidity of Provisions
	 	 	84	 

iii

 

	 	 	 	 	 
	Clause	 	Page	 
	Section 15.11. Limitation to Preserve REIT Qualification
	 	 	84	 
	Section 15.12. No Partition
	 	 	85	 
	Section 15.13. No Third-Party Rights Created Hereby
	 	 	85	 
	Section 15.14. No Rights as Stockholders of General Partner
	 	 	85	 
	Section 15.15. Jurisdiction
	 	 	86	 
	 
	 	 	 	 
	Exhibit A PARTNERS AND PARTNERSHIP UNITS
	 	 	A-1	 
	 
	 	 	 	 
	Exhibit B NOTICE OF REDEMPTION
	 	 	B-1	 
	 
	 	 	 	 
	Exhibit C NOTICE OF ELECTION BY PARTNER TO CONVERT LTIP UNITS INTO PARTNERSHIP UNITS
	 	 	C-1	 
	 
	 	 	 	 
	Exhibit D NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSION OF LTIP UNITS
INTO 

PARTNERSHIP UNITS
	 	 	D-1	 

iv

 

          THIS AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF SCHOTTENSTEIN REALTY LP, dated
as of March __, 2011 is entered into by and among Schottenstein Realty Trust, Inc., a Maryland
corporation as the General Partner (the “General Partner”), Schottenstein Realty LLC, as the
initial limited partner (the “Initial Limited Partner”) and the limited partners listed on Exhibit
A hereto, as Limited Partners (each a “Limited Partner”).

          WHEREAS, a Certificate of Limited Partnership of the Partnership was filed in the office of
the Secretary of State of the State of Delaware on July 29, 2010;

          WHEREAS, the General Partner and the Initial Limited Partner entered into an Agreement of
Limited Partnership of Schottenstein Realty LP, dated as of July 29, 2010, pursuant to which the
Partnership was formed (the “Original Agreement”);

          WHEREAS, the Initial Limited Partner desires to withdraw as a Partner from the Partnership
effective as of the Effective Date pursuant to Section 2.01 hereof

          WHEREAS, the General Partner, the Initial Limited Partner and the Limited Partners desire to
amend and restate the Original Agreement in its entirety;

          NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto amend and restate the Original Agreement in its entirety (and
agree to continue the Partnership as a limited partnership under the Delaware Revised Uniform
Limited Partnership Act, as amended from time to time) as follows effective as of the Effective
Date:

ARTICLE I

DEFINED TERMS

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

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

          “Additional Funds” has the meaning set forth in Section 4.04(a) hereof.

          “Additional Limited Partner” means a Person who is admitted to the Partnership as a Limited
Partner pursuant to Sections 4.03 and 12.02 hereof and who is shown as such on the books and
records of the Partnership.

          “Adjusted Capital Account” means the Capital Account maintained for each Partner as of the end
of each Fiscal Year (i) increased by any amounts which such Partner is obligated to restore
pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the
penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) and (ii) decreased by
the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-

 

 

1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital
Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.

          “Adjusted Capital Account Balance” means, with respect to any Partnership Unit on any date,
the Adjusted Capital Account balance as determined by the General Partner to be properly allocable
to such Partnership Unit as of such date, taking into account all allocations made pursuant to
Article VI hereof through and including such date (including, in the case of LTIP Units,
allocations pursuant to Section 6.02(c) through and including the date of the redemption or
conversion, as applicable).

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

          “Adjustment Event” shall have the meaning set forth in Section 4.06(a) hereof.

          “Adjustment Factor” means 1.0; provided, however, that if:

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

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

2

 

effective retroactive to the date of distribution of the Distributed Rights, to reflect a
reduced maximum number of REIT Shares or any change in the minimum purchase price for the
purposes of the above fraction;

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

                              (iv) an entity other than an Affiliate of the General Partner shall become General Partner
pursuant to any merger, consolidation or combination of the General Partner with or into another
entity (the “Successor Entity”), the Adjustment Factor previously in effect shall be adjusted by
multiplying the Adjustment Factor by the number of shares of the Successor Entity into which one
REIT Share is converted pursuant to such merger, consolidation or combination, determined as of
the date of such merger, consolidation or combination.

          Any adjustments to the Adjustment Factor shall become effective immediately after the
effective date of such event, retroactive to the record date, if any, for such event.
Notwithstanding the foregoing, the Adjustment Factor shall not be adjusted in connection with an
event described in clauses (i) or (ii) above if, in connection with such event, the Partnership
makes a distribution of cash, Partnership Units, REIT Shares and/or rights, options or warrants to
acquire Partnership Units and/or REIT Shares with respect to all applicable Partnership Units
(including LTIP Units) or effects a reverse split of, or otherwise combines, the Partnership Units
(including LTIP Units), as applicable, that is comparable as a whole in all material respects with
such an event, or if in connection with an event described in clause (iv) above, the consideration
provided for in Section 11.02(b)(iii) hereof is paid.

          “Affiliate” means, with respect to any Person, (i) any Person directly or indirectly
controlling or controlled by or under common control with such Person, (ii) any Person owning or
controlling ten percent (10%) or more of the outstanding voting interests of such Person, (iii) any
Person of which such Person owns or controls ten percent (10%) or more of the voting interests or
(iv) any officer, director, general partner or trustee of such Person or any Person referred to in
clauses (i), (ii), and (iii) above. For the purposes of this definition, “control” when used with
respect to any Person means the possession, directly or indirectly, of the power (alone or together
with other of its Affiliates under the first sentence of this definition) to direct or cause the
direction of the management and policies of such Person, whether through the ownership of

3

 

voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

          “Agreement” means this Amended and Restated Agreement of Limited Partnership of the
Partnership, as it may be amended, supplemented or restated from time to time in accordance with
its terms.

          “Aggregate LP Recourse Amount” means the sum of the LP Recourse Amounts.

          “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 11.05 hereof.

          “Available Cash” means, with respect to any period for which such calculation is being made,
the amount of cash available for distribution by the Partnership under applicable law as determined
by the General Partner in its sole and absolute discretion.

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

          “Bylaws” means the Bylaws of the General Partner, as amended, supplemented or restated from
time to time.

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

                    (a) To each Partner’s Capital Account, there shall be added such Partner’s Capital
Contributions, such Partner’s distributive share of Net Operating Income, Net Property Gain and any
items in the nature of income or gain that are specially allocated pursuant to Section
4.06(d)(iii), Section 6.02(c), Section 6.02(d) or Section 6.03 hereof, determined without
duplication, and the principal amount of any Partnership liabilities assumed by such Partner or
that are secured by any property distributed to such Partner.

                    (b) From each Partner’s Capital Account, there shall be subtracted the amount of cash and the
Gross Asset Value of any property distributed to such Partner pursuant to any provision of this
Agreement, such Partner’s distributive share of Net Operating Loss, Net Property Loss and any items
in the nature of expenses or losses that are specially allocated pursuant to Section 4.06(d)(iii),
Section 6.02(c), Section 6.02(d) or Section 6.03 hereof, determined without duplication, and the
principal amount of any liabilities of such Partner assumed by the Partnership or that are secured
by any property contributed by such Partner to the Partnership.

                    (c) If any interest in the Partnership is Transferred in accordance with the terms of this
Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent that
it relates to the Transferred interest.

4

 

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

                    (e) The provisions of this Agreement relating to the maintenance of Capital Accounts are
intended to comply with Regulations Sections 1.704-1(b) and 1.704-2, and shall be interpreted and
applied in a manner consistent with such Regulations (without any double counting of amounts added
or subtracted in computing the definition of “Net Operating Income”, or “Net Operating Loss”, “Net
Property Gain”, or “Net Property Loss”). If the General Partner shall determine that it is prudent
to modify the manner in which the Capital Accounts are maintained in order to comply with such
Regulations, the General Partner may make such modification provided, that such modification will
not have a material effect on the amounts distributable to any Partner (consistent with the overall
economic intent of the Partners that such material effect determination be made as if all
distributions were required to be made as set forth in Article V hereof and in the order of
priorities set forth therein without applying Section 5.05 hereof and without regard to the
Partners’ Capital Account balances) without such Partner’s Consent. The General Partner also shall
(i) make any adjustments that are necessary or appropriate to maintain equality between the Capital
Accounts of the Partners and the amount of Partnership capital reflected on the Partnership’s
balance sheet, as computed for book purposes, in accordance with Regulations Section
1.704-1(b)(2)(iv)(q) and (ii) make any appropriate modifications if unanticipated events might
otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b) or Section
1.704-2.

          “Capital Account Deficit” has the meaning set forth in Section 13.02(c) hereof.

          “Capital Contribution” means, with respect to any Partner, the amount of money and the initial
Gross Asset Value of any Contributed Property that such Partner contributes to the Partnership or
is deemed to contribute pursuant to Sections 4.01, 4.02, 4.03 or 4.04 hereof.

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

          “Cause” has the meaning set forth in the Incentive Compensation Plan.

          “Certificate” means the Certificate of Limited Partnership of the Partnership filed in the
office of the Secretary of State of the State of Delaware on July 29, 2010, as amended from time to
time in accordance with the terms hereof and the Act.

          “Change in Control” means the earliest to occur of any of the following events:

                              (i) any “person”, as such term is used in Sections 13(d) and 14(d) of the Exchange Act
(other than any trustee, fiduciary or other person or entity holding securities under any
employee benefit plan or trust of any of the General Partner or any of its subsidiaries or
affiliates), together with all “affiliates” and “associates” (as such terms are defined in Rule
12b-2 under the Exchange Act) of such person, shall become the “beneficial

5

 

owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the General Partner representing forty percent (40%) or more of the
combined voting power of the General Partner’s then outstanding securities having the right to
vote in an election of the General Partner’s Board of Directors (“Voting Securities”) (other than
as a result of an acquisition of securities directly from the General Partner). Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of this
clause (i) solely as the result of an acquisition of securities by the General Partner which, by
reducing the number of shares of Voting Securities outstanding, increases the proportionate
number of shares of Voting Securities beneficially owned by any person (as defined in the
foregoing clause) to forty percent (40%) or more of the combined voting power of all then
outstanding Voting Securities; provided, however, that if such person shall thereafter become the
beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock
split, stock dividend, or similar transaction or as a result of an acquisition of securities
directly from the General Partner) and immediately thereafter beneficially owns forty percent
(40%) or more of the combined voting power of all then outstanding Voting Securities, then a
“Change in Control” shall be deemed to have occurred for purposes of this clause (i);

                              (ii) the moment immediately prior to the consummation of a merger, reorganization or
consolidation of the General Partner or the occurrence of any other event (including without
limitation a tender or exchange offer), the result of which is that the “beneficial owners” (as
such term is defined in Rule 13d-3 of the Exchange Act) of the Voting Securities of the General
Partner before the merger, reorganization, consolidation or other transaction are not the
beneficial owners, directly or indirectly, of a majority of the voting power of the surviving or
resulting entity upon completion of such merger, reorganization, consolidation or other
transaction;

                              (iii) the moment immediately prior to the consummation of a merger, reorganization or
consolidation of the Partnership, unless the General Partner immediately prior to such merger,
reorganization or consolidation remains the sole general partner of the Partnership after such
merger;

                              (iv) the moment immediately prior to the consummation of a change (whether by removal,
withdrawal, transfer or otherwise) in the general partner of the Partnership such that the
general partner of the Partnership is neither the General Partner or a wholly-owned Subsidiary of
the General Partner;

                              (v) persons who, as of the Effective Date, constitute the General Partner’s Board of
Directors (the “Incumbent Directors”) cease for any reason, including, without limitation, as a
result of a tender or exchange offer, proxy contest, merger or similar transaction, to constitute
at least a majority of the Board of Directors of the General Partner (rounded up to the next
whole number); provided, that any person becoming a director of the General Partner subsequent to
such date shall be considered an Incumbent Director if such person’s election was approved by or
such person was nominated for election by a vote of a majority of the Incumbent Directors;
provided, however, that any person whose initial assumption of office is in connection with an
actual or threatened election contest relating to the election of members of the Board of
Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
person other than the Board of Directors, including by

6

 

reason of agreement intended to avoid or settle any such actual or threatened contest or
solicitation, shall not be considered an Incumbent Director; or

                              (vi) the moment immediately prior to the consummation of a sale of all or substantially all
of the assets of the General Partner and/or the Partnership other than to an entity a majority of
the voting power of which entity are held by the “beneficial owners” (as such term is defined in
Rule 13d-3 of the Exchange Act) of the Voting Securities of the General Partner before the
consummation of a sale of all or substantially all of the assets of the General Partner and/or
the Partnership.

          “Charter” means the Articles of Incorporation of the General Partner as filed with the State
Department of Assessments and Taxation of Maryland on July 28, 2010, as amended, supplemented or
restated from time to time.

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

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

          “Common Unit” shall mean a Partnership Unit representing an interest in the Partnership, other
than an LTIP Unit or any other preferred interest or preferred Partnership Units issued hereafter.

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

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

          “Contribution Agreement” means the Second Amended and Restated Contribution Agreement, dated
as of March [__], 2011 among the General Partner, the Partnership and certain Limited Partners
signatories thereto.

          “Constructively Owns” means ownership determined through the application of the constructive
ownership rules of Section 318 of the Code, as modified by Section 856(d)(5) of the Code.

          “Conversion Percentage” with respect to any LTIP Unit (i) shall equal 0% on the date of its
issuance, (ii) shall increase in the manner and subject to the terms of the applicable LTIP Award
with respect to such LTIP Unit.

          “Covered Person” and “Covered Persons” shall have the meanings set forth in Section 7.08
hereof.

7

 

          “Damages” shall have the meaning set forth in Section 7.07(a) hereof.

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

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

          “Disability” has the meaning set forth in the Incentive Compensation Plan.

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

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

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

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

          “Forfeited Capital Account” shall mean that portion of the Adjusted Capital Account Balance
attributable to an LTIP Unit determined at the time of redemption or conversion, as follows:

     (i) the General Partner shall determine the Adjusted Capital Account Balance properly
allocable to such LTIP Unit,

     (ii) the Adjusted Capital Account Balance allocable to such LTIP Unit shall be reduced by
the sum of (a) the allocable portion of any Capital Contribution made with respect to such LTIP
Unit and (b) the excess, if any, of (1) the aggregate amount of the allocations of Net Operating
Income and Net Property Gain (and other items of income and gain) made with respect to such LTIP
Unit pursuant to Sections 6.01(a), 6.02(a) and 6.03(a) hereof for all

8

 

fiscal years (and without taking into account allocations made pursuant to Section 6.04
hereof), over (2) the sum of (A) the aggregate allocations of Net Operating Loss and Net
Property Loss (and other items of loss and deduction) made with respect to such LTIP Unit
pursuant to Sections 6.01(b), 6.02(b) and 6.03(a) hereof for all fiscal years (and without
taking into account allocations made pursuant to Section 6.04 hereof), and (B) the aggregate
distributions of Available Cash made to such LTIP Unit for all fiscal years, and

     (iii) the remainder shall be multiplied by 100% minus the Conversion Percentage applicable
to such LTIP Unit at such time.

          “Fundamental Transaction” shall mean a transaction to which the Partnership or the General
Partner shall be a party, including, without limitation a merger, consolidation, unit exchange,
self tender offer for all or substantially all Partnership Units or other business combination or
reorganization, or sale of all or substantially all of the Partnership’s assets (but excluding any
transaction which constitutes an Adjustment Event) in each case as a result of which Partnership
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.

          “Funding Debt” means the incurrence of any Debt for the purpose of providing funds to the
Partnership by or on behalf of the General Partner or any wholly owned subsidiary of the General
Partner.

          “General Partner” means Schottenstein Realty Trust, Inc., and its successors and assigns, as
the general partner of the Partnership.

          “General Partner Employee” means any employee of the Partnership, the General Partner and any
of their subsidiaries.

          “General Partner Interest” means the Partnership Interest held by the General Partner, which
Partnership Interest is an interest as a general partner under the Act. A General Partner Interest
may be (but is not required to be) expressed as a number of Partnership Units.

          “General Partner Interest Transfer” has the meaning set forth in Section 11.02(d) hereof.

          “General Partner Loan” has the meaning set forth in Section 4.04(d) hereof.

          “Good Reason” has the meaning set forth in the Incentive Compensation Plan.

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

                    (a) The initial Gross Asset Value of any asset contributed by a Partner to the Partnership
shall be the gross fair market value of such asset as determined by the General Partner in its sole
discretion, subject to being established as such in any binding contribution agreement with a
Partner that is entered into between the Partnership and such Partner.

9

 

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

                              (i) the acquisition of an additional interest in the Partnership (other than in connection
with the execution of this Agreement but including, without limitation, acquisitions pursuant to
Sections 4.02, 4.03 or 4.04 hereof or contributions or deemed contributions by the General
Partner pursuant to Sections 4.02, 4.03 or 4.04 hereof) by a new or existing Partner in exchange
for more than a de minimus Capital Contribution, if the General Partner reasonably determines
that such adjustment is necessary or appropriate to reflect the relative economic interests of
the Partners in the Partnership; provided, that the issuance of any Series of LTIP Units or
conversion of any such Series of LTIP Units into Common Units shall be deemed to require a
recalculation pursuant to this subsection or subsection (b)(iv) of this definition;

                              (ii) the distribution by the Partnership to a retiring or continuing Partner of more than a
de minimus amount of Property as consideration for an interest in the Partnership, if the General
Partner reasonably determines that such adjustment is necessary or appropriate to reflect the
relative economic interests of the Partners in the Partnership;

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

                              (iv) at such other times as the General Partner shall reasonably determine necessary or
advisable in order to comply with Regulations Sections 1.704-1(b) and 1.704-2 (including the
grant of an interest in the Partnership to an existing or new Partner acting in a partner
capacity or in anticipation of becoming a Partner as consideration for the provision of services
by such Partner to or for the benefit of the Partnership).

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

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

10

 

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

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

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

          “Incentive Compensation Plan” means any equity incentive plan hereafter adopted by the
Partnership or the General Partner, including the Schottenstein Realty Trust, Inc. 2011 Incentive
Compensation Plan.

          “Incumbent Directors” has the meaning set forth in the definition of “Change in Control.”

          “Indemnitee” means (i) any Person made, or threatened to be made, a party to a Proceeding by
reason of (A) its status as the General Partner or as a trustee, director, officer, stockholder
(other than as a stockholder commencing or directly participating in a derivative action against
the General Partner), partner, member, employee, representative or agent of the General Partner or
any of its Subsidiaries or as an officer, employee, representative or agent of

11

 

the Partnership, or (B) except as provided in Sections 8.07(b) and 13.02(d) hereof, its
liabilities, pursuant to a loan guarantee or otherwise, for any indebtedness of the Partnership or
any Subsidiary of the Partnership (including, without limitation, any indebtedness which the
Partnership or any Subsidiary of the Partnership has assumed or taken assets subject to), and (ii)
such other Persons (including the Initial Limited Partner and Affiliates of the General 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.

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

          “Initial Limited Partner” means Schottenstein Realty LLC, a Delaware limited liability
company.

          “IPO” means the initial public offering of the REIT Shares.

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

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

          “Junior Unit” means a fractional share of the Partnership Interests that the General Partner
has authorized pursuant to Section 4.01, 4.03 or 4.04 hereof that has distribution rights, or
rights upon liquidation, winding up and dissolution, that are junior in rank to the Common Units
and LTIP Units.

          “Limited Partner” means any Person named as a Limited Partner of the Partnership in Exhibit A
attached hereto, as such Exhibit A may be amended from time to time, or any Substituted Limited
Partner or Additional Limited Partner, in such Person’s capacity as a limited partner 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 Limited Partners and
includes any and all benefits to which the holder of such a Partnership Interest may be entitled as
provided in this Agreement, together with all obligations of such Person to comply with the terms
and provisions of this Agreement. A Limited Partner Interest may be (but is not required to be)
expressed as a number of Partnership Units, LTIP Units, Preferred Units, Junior Units or other
Partnership Units.

          “Liquidating Event” has the meaning set forth in Section 13.01 hereof.

          “Liquidating Gains” has the meaning set forth in Section 6.03(c) hereof.

          “Liquidator” has the meaning set forth in Section 13.02(a) hereof.

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          “LP Recourse Amount” has the meaning set forth in Section 13.02(d) hereof.

          “LTIP Award” means each or any, as the context requires, LTIP Award issued under any Incentive
Compensation Plan, which may be issued in separately designated series, with each such series (a
“Series”), having the economic rights and entitlements and such other rights and entitlements as
set forth in the applicable LTIP Award, including any amendments thereto.

          “LTIP Unit” means a Partnership Unit which is designated as an LTIP Unit and which has the
rights, preferences and other privileges designated in Sections 4.06, 4.07 and 6.02 hereof and
elsewhere in this Agreement in respect of Holders of LTIP Units. The allocation of LTIP Units among
the Partners shall be set forth on Exhibit A, as the same may be amended from time to time.

          “LTIP Unitholder” means a Partner that holds LTIP Units.

          “Majority in Interest” means Limited Partners holding more than 50% of the outstanding Common
Units and any other Partnership Units voting as single class that are held by Limited Partners that
are included for the purposes of any vote as set forth in this Agreement.

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

          “Modified Adjusted Capital Account” shall mean the Adjusted Capital Account determined without
regard to any LP Recourse Amount.

          “Net Operating Income” means, for any Partnership Year, the excess of the items of income and
gain properly taken into account for such period (in the manner set forth with respect to this
definition in the paragraph immediately following the definition of “Net Property Loss”), over the
items of deduction and loss properly taken into account for such period (in the manner set forth
with respect to this definition in the paragraph immediately following the definition of “Net
Property Loss”), excluding, in each case, items of gain or loss realized in connection with the
sale or disposition of real property and other capital assets of the Partnership pursuant to the
definition of “Net Property Gain” and “Net Property Loss”, as applicable.

          “Net Operating Loss” shall mean, for any Partnership Year, the excess the items of deduction
and loss properly taken into account for such period (in the manner set forth with respect to this
definition in the paragraph immediately following the definition of “Net Property Loss”), over the
items of income and gain properly taken into account for such period (in the manner set forth with
respect to this definition in the paragraph immediately following the definition of “Net Property
Loss”), excluding, in each case, items of gain or loss realized in connection with the sale or
disposition of real property and other capital assets of the Partnership pursuant to the definition
of “Net Property Gain” and “Net Property Loss”, as applicable.

          “Net Property Gain” shall mean, for any Partnership Year, the excess of gains realized from
the sale or disposition of real property and other capital assets of the Partnership properly taken
into account for such period (in the manner set forth with respect to this definition in the
paragraph immediately following the definition of “Net Property Loss”), over the losses realized in
connection with the sale or disposition of real property and other capital assets (in the

13

 

manner set forth with respect to this definition in the paragraph immediately following the
definition of “Net Property Loss”).

          “Net Property Loss” shall mean, for any Partnership Year, the excess of losses realized from
the sale or disposition of real property and other capital assets of the Partnership properly taken
into account (in the manner set forth with respect to this definition in the paragraph immediately
following the definition of “Net Property Loss”), over the gains realized in connection with the
sale or disposition of real property and other capital assets of the Partnership (in the manner set
forth with respect to this definition in the paragraph immediately following the definition of “Net
Property Loss”).

          For purposes of the foregoing definitions of “Net Operating Income”, “Net Operating Loss”,
“Net Property Gain” and “Net Property Loss”, such amounts shall be determined with respect to each
Partnership Year of the Partnership, by taking into account an amount equal to the applicable
items of the Partnership’s taxable income or loss for such Partnership Year, as determined for book
purposes in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss
or deduction for book purposes required to be stated separately pursuant to Code Section 703(a)(1)
shall be included in taxable income or loss), with the following adjustments:

(a) Any income of the Partnership that is exempt from federal income tax and not
otherwise taken into account in computing Net Operating Income (or Net Operating
Loss) for a period shall be added to (or subtracted from, as the case may be) such
Net Operating Income (or Net Operating Loss) for such period;

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

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

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

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

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

(g) Notwithstanding any other provision set forth above, any item that is required
to be specially allocated pursuant to Section 4.06(d)(iii), Section 6.02(c), Section
6.02(d) or Section 6.03 hereof shall not be taken into account in computing Net
Operating Income, or Net Operating Loss and Net Property Gain or Net Property Loss,
as applicable, and the amounts of the items of Partnership income, gain, loss or
deduction required to be specially allocated pursuant to Section 4.06(d)(iii),
Section 6.02(c), Section 6.02(d) or Section 6.03 hereof shall be determined by
applying rules analogous to those set forth in subparagraphs (a) through (f) above
(without double counting of any item). Notwithstanding the foregoing, it is the
intention of the Partners that the allocations to be made pursuant to Sections 6.01
and 6.02 hereof shall be made, to the maximum extent possible, so as to reduce the
adjustments required by the “Regulatory Allocations” of Section 6.03(a) hereof to
the extent inconsistent with the intent of Sections 6.01 and 6.02 hereof and clause
(e) of the definition of “Capital Account”.

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

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

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

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

          “Original Agreement” means the original Agreement of Limited Partnership of the Partnership,
dated as of July 29, 2010.

          “Outside Interest” has the meaning set forth in Section 5.02 hereof.

          “Outside Limited Partners” means Limited Partners other than (i) the General Partner or its
Subsidiaries, (ii) any Person of which the General Partner or its Subsidiaries directly or
indirectly owns or controls more than 50% of the voting interests and (iii) any Person directly or

15

 

indirectly owning or controlling more than 50% of the outstanding interests of the General
Partner.

          “Ownership Limit” means the applicable restriction or restrictions on ownership of shares of
the General Partner imposed under the Charter.

          “Partner” means the General Partner or a Limited Partner, and “Partners” means the General
Partner and the Limited Partners.

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

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

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

          “Partnership” means Schottenstein Realty LP, the limited partnership heretofore formed under
the Act and pursuant to the Original Agreement and continued pursuant to this Agreement, and any
successor thereto.

          “Partnership Approval” means, with respect to any proposed General Partner Interest Transfer,
when the sum of (i) the Percentage Interest of Limited Partners holding Common Units and LTIP Units
effecting a Consent to the General Partner Interest Transfer, plus (ii) the product of (a) the
Percentage Interest of Partnership Common Units held by the General Partner multiplied by (b) the
percentage of the votes that were cast in favor of the event constituting such General Partner
Interest Transfer by the General Partner’s common stockholders out of the total votes entitled to
be cast by the General Partner’s common stockholders, equals or exceeds the percentage required for
the common stockholders of the General Partner to approve the event constituting such General
Partner Interest Transfer.

          “Partnership Interest” means an ownership interest in the Partnership held by either a Limited
Partner or the General Partner and includes any and all benefits to which the holder of such a
Partnership Interest may be entitled as provided in this Agreement, together with all obligations
of such Person to comply with the terms and provisions of this Agreement. A Partnership Interest
may be (but is not required to be) expressed as a number of Partnership Units, LTIP Units,
Preferred Units, Junior Units or other Partnership Units.

          “Partnership Minimum Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and
the amount of Partnership Minimum Gain, as well as any net increase or decrease in Partnership
Minimum Gain, for a Partnership Year shall be determined in accordance with the rules of
Regulations Section 1.704-2(d).

16

 

          “Partnership Record Date” means a record date established by the General Partner for the
distribution of Available Cash pursuant to Section 5.01 hereof, which record date shall generally
be the same as the record date established by the General Partner for a distribution to its
stockholders of some or all of its portion of such distribution.

          “Partnership Recourse Debt Amount” means, at any time, the amount of liabilities owed by the
Partnership at such time for borrowed money other than Nonrecourse Liabilities and liabilities to
which Partner Nonrecourse Deductions are attributable in accordance with Section 1.704-2(i) of the
Regulations.

          “Partnership Unit” shall mean a Partnership Unit that the General Partner has authorized
pursuant to Section 4.01, 4.02, 4.03 or 4.04 hereof.

          “Partnership Unit Designation” has the meaning set forth in Section 4.03 hereof.

          “Partnership Unit Distribution” shall have the meaning set forth in Section 4.06(a)(ii)
hereof.

          “Partnership Year” means, except as provided below in this definition, the fiscal year of the
Partnership and the Partnership’s taxable year for federal income tax purposes, each of which shall
be the calendar year unless otherwise required under the Code. If (a) there is an adjustment in
the Percentage Interests of the Partners, (b) the Partnership issues additional Interests or
converts or redeems Interests, (c) there is an adjustment to the Gross Asset Value of any Property,
or (d) the General Partner so elects, the Partnership Year for purposes of allocating Net Operating
Income, Net Operating Loss, Net Property Gain and Net Property Loss (and other items of Partnership
income, gain, loss or deduction) shall be treated as ending as of the date of such adjustment if
the General Partner determines (based on the advice of the Partnership’s tax counsel or
accountants) that it is necessary or appropriate for such allocations to be made as of such time to
reflect the revised economic interests of the Partners or their respective interests in such
allocations.

          “Percentage Interest” means, as to a Partner holding a class or series of Partnership
Interests, its interest in such class or series as determined by dividing the Partnership Units of
such class or series owned by such Partner by the total number of Partnership Units of such class
then outstanding as specified in Exhibit A attached hereto, as such Exhibit A may be amended from
time to time. If the Partnership issues additional classes or series of Partnership Interests other
than as contemplated herein, the interest in the Partnership among the classes or series of
Partnership Interests shall be determined as set forth in the amendment to the Partnership
Agreement setting forth the rights and privileges of such additional classes or series of
Partnership Interest, if any, as contemplated by Section 4.03 hereof. As of the date hereof, the
“Percentage Interest”:

               (i) of a holder of Common Units shall mean (i) the undivided percentage ownership interest
of such Partner in the Partnership as determined by dividing (A) the number of Common
Partnership Units owned by such Partner by (B) the sum of (x) the total number of Common
Partnership Units then outstanding plus (y) the total number of outstanding LTIP Units, and

17

 

               (ii) of a holder of LTIP Units shall mean the undivided percentage ownership interest of
such Partner in the Partnership as determined by dividing (A) the total number of
outstanding LTIP Units owned by such Partner by (B) the sum of (x) the total number of
Common Partnership Units then outstanding plus (y) the total number of outstanding LTIP Units.
If any Partner holds both Common Units and LTIP Units, then such Partner’s Percentage Interest
shall equal the sum of the amounts calculated under clauses (i) and (ii) of this definition of
“Percentage Interest”, determined by assuming for purposes of clause (i) that such Partner holds
only Common Units and for purposes of clause (ii) that such Partner holds only LTIP Units.

          “Person” means an individual or a corporation, partnership (general or limited), trust,
estate, custodian, nominee, unincorporated organization, association, limited liability company or
any other individual or entity in its own or any representative capacity.

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

          “Preferred Unit” means a fractional share of the Partnership Interests that the General
Partner has authorized pursuant to Section 4.01, 4.03 or 4.04 hereof that has distribution rights,
or rights upon liquidation, winding up and dissolution, that are superior or prior to the
Partnership Units.

          “Proceeding” has the meaning set forth in Section 7.07(a) hereof.

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

          “Publicly Traded” means listed or admitted to trading on the New York Stock Exchange, the
American Stock Exchange, the NASDAQ Stock Market or another national securities exchange or any
successor to the foregoing.

          “Qualified Assets” means any of the following assets: (i) interests, rights, options, warrants
or convertible or exchangeable securities of the Partnership; (ii) Debt issued by the Partnership
or any Subsidiary thereof in connection with the incurrence of Funding Debt; (iii) equity interests
in Qualified REIT Subsidiaries and limited liability companies (or other entities disregarded from
their sole owner for U.S. federal income tax purposes, including wholly owned grantor trusts) whose
assets consist solely of Qualified Assets; (iv) up to a one percent (1%) equity interest in any
partnership or limited liability company at least ninety-nine percent (99%) of the equity of which
is owned, directly or indirectly, by the Partnership; (v) cash held for payment of administrative
expenses or pending distribution to security holders of the General Partner or any wholly owned
Subsidiary thereof or pending contribution to the Partnership; and (vi) other tangible and
intangible assets that, taken as a whole, are de minimus in relation to the net assets of the
Partnership and its Subsidiaries.

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          “Qualified REIT Subsidiary” means any Subsidiary of the General Partner that is a “qualified
REIT subsidiary” within the meaning of Code Section 856(i).

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

          “Recourse Partner” has the meaning set forth in Section 13.02(d) hereof.

          “Redemption” has the meaning set forth in Section 8.06(a) hereof.

          “Regulations” means the applicable income tax regulations under the Code, whether such
regulations are in proposed, temporary or final form, as such regulations may be amended from time
to time (including corresponding provisions of succeeding regulations and, to the extent applicable
to the provisions herein, changes to such regulations or interpretations thereof made pursuant to
applicable IRS or Treasury Department pronouncements).

          “Regulatory Allocations” has the meaning set forth in Section 6.03(a)(vii) hereof.

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

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

          “REIT Requirements” has the meaning set forth in Section 5.01 hereof.

          “REIT Share” means a share of the General Partner’s common stock, par value $0.01 per share.
Where relevant in this Agreement, “REIT Share” includes shares of the General Partner’s common
stock, par value $0.01 per share, issued upon conversion of Preferred Shares or Junior Shares.

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

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

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

19

 

          “Series” has the meaning set forth in the definition of “LTIP Award.” A single Series may
become more than one Series as provided in Section 6.02(c) hereof.

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

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

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

          “Substituted Limited Partner” means a Person who is admitted as a Limited Partner to the
Partnership pursuant to Section 11.04 hereof.

          “Successor Entity” has the meaning set forth in the definition of “Adjustment Factor.”

          “Target Balance” has the meaning set forth in Section 6.02(c) hereof.

          “Tax Items” has the meaning set forth in Section 6.04(a) hereof.

          “Tax Protection Agreement” means the Agreement entered into by the Partnership and Limited
Partners signatories thereto (and any similar type of agreement entered into with subsequent
contributors of Contributed Property to the Partnership if so determined by the General Partner
from time to time) in accordance with Section 8.07 hereof.

          “Tendered Units” has the meaning set forth in Section 8.06(a) hereof.

          “Tendering Partner” has the meaning set forth in Section 8.06(a) hereof.

          “Terminating Capital Transaction” means any sale or other disposition of all or substantially
all of the assets of the Partnership or a related series of transactions that, taken together,
result in the sale or other disposition of all or substantially all of the assets of the
Partnership.

          “Termination Transaction” has the meaning set forth in Section 11.02(b) hereof.

          “Transfer,” when used with respect to a Partnership Unit, or all or any portion of a
Partnership Interest, means any sale, assignment, bequest, conveyance, devise, gift (outright or in
trust), pledge, encumbrance, hypothecation, mortgage, exchange, transfer or other disposition or
act of alienation, whether voluntary or involuntary or by operation of law; provided, however, that
when the term is used in Article XI hereof, “Transfer” does not include (a) any

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Redemption of Partnership Units by the Partnership or the General Partner, or acquisition of
Tendered Units by the General Partner, pursuant to Section 8.06 hereof or (b) any Redemption of
Partnership Units pursuant to any Partnership Unit Designation. The terms “Transferred” and
“Transferring” have correlative meanings.

          “Trigger Event” means, with respect to a Series of LTIP Units, the earliest to occur of any of
the following events:

               (i) such time as a plan of dissolution or liquidation (but not including a deemed
liquidation for tax purposes in connection with one or more transfers of interests in the
Partnership) of the General Partner and/or the Partnership is duly adopted by appropriate
corporate or partnership action;

               (ii) the date on which the Conversion Percentage applicable to all LTIP Units of such Series
of LTIP Units held by then current employees of the General Partner and/or the Partnership (i.e.,
other than holders of LTIP Units whose employment with the General Partner and/or the Partnership
has terminated) reaches 100% or, if prior to such time, an employee owning an LTIP Unit in a
Series has its Conversion Percentage increased to 100% under the provisions of the LTIP Award
applicable thereto, including pursuant to Section 4.07(c)(ii) hereof, a Trigger Event will be
deemed to have occurred solely with respect to such employee, but not with respect to any other
holders of LTIP Units of such Series.

               (iii) the earliest date on which the employment of all holders of LTIP Units of such Series
of LTIP Units has been terminated;

               (iv) a Change in Control; and

               (v) such other events as are set forth in the applicable LTIP Award for such Series of LTIP
Units, as may be amended from time to time, except to the extent such amendment restricts or
materially diminishes rights, entitlements or attributes of previously issued LTIP Units.

          “Value” means, on any date of determination with respect to a REIT Share, the average of the
daily Market Prices for ten consecutive trading days immediately preceding the date of
determination except that, as provided in Section 4.05(b) hereof, the Market Price for the trading
day immediately preceding the date of exercise of a stock option under any Incentive Compensation
Plan shall be substituted for such average of daily market prices for purposes of Section 4.05
hereof; provided, however, that for purposes of Section 8.06 hereof, the “date of determination”
shall be the date of receipt by the General Partner of a Notice of Redemption or, if such date is
not a Business Day, the immediately preceding Business Day. The term “Market Price” on any date
shall mean, with respect to any class or series of outstanding REIT Shares, the Closing Price for
such REIT Shares on such date. The “Closing Price” on any date shall mean the last sale price for
such REIT Shares, regular way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, for such REIT Shares, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or, if such REIT

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Shares are not listed or admitted to trading on the New York Stock Exchange, as reported on
the principal consolidated transaction reporting system with respect to securities listed on the
principal national securities exchange on which such REIT Shares are listed or admitted to trading
or, if such REIT Shares are not listed or admitted to trading on any national securities exchange,
the last quoted price, or, if not so quoted, the principal other automated quotation system that
may then be in use or, if such REIT Shares are not quoted by any such organization, the average of
the closing bid and asked prices as furnished by a professional market maker making a market in
such REIT Shares selected by the Board of Directors of the General Partner or, if no trading price
is available for such REIT Shares, the fair market value of the REIT Shares, as determined in good
faith by the Board of Directors of the General Partner.

          “Voting Securities” has the meaning set forth in the definition of “Change in Control.”

          If the REIT Shares Amount includes Rights that a holder of REIT Shares would be entitled to
receive, then the Value of such Rights shall be determined by the General Partner acting in good
faith on the basis of such quotations and other information as it considers, in its reasonable
judgment, appropriate.

ARTICLE II

ORGANIZATIONAL MATTERS

          Section 2.01. Formation; Withdrawal of Initial Limited Partner. The Partnership is limited partnership formed pursuant to the provisions of the Act and the
Original Agreement and continued upon the terms and subject to the conditions set forth in this
Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the
Partners and the administration and termination of the Partnership shall be governed by the Act.
The Partnership Interest of each Partner shall be personal property for all purposes. Effective as
of the Effective Date, the Initial Limited Partner hereby withdraws from the Partnership and shall
have no further interest in the Partnership.

          Section 2.02. Name. The name of the Partnership is “Schottenstein Realty LP.” The Partnership’s business may be
conducted under any other name or names deemed advisable by the General Partner, including the name
of the General Partner or any Affiliate thereof. The words “Limited Partnership,” “LP,” “Ltd.” or
similar words or letters shall be included in the Partnership’s name where necessary for the
purposes of complying with the laws of any jurisdiction that so requires. The General Partner in
its sole and absolute discretion may change the name of the Partnership at any time and from time
to time and shall notify the Limited Partners of such change in the next regular communication to
the Limited Partners.

          Section 2.03. Registered Office and Agent; Principal Office. The address of the registered office of the Partnership in the State of Delaware is located
at 160 Greentree Drive, Suite 101, Dover, Kent County, Delaware 19904, and the registered agent for
service of process on the Partnership in the State of Delaware at such registered office
is National Registered Agents, Inc. The principal office of the Partnership is located c/o of
the General Partner at 4300 East Fifth Avenue, Columbus, OH 43219 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

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such other place or places within or outside the State of Delaware as the
General Partner deems advisable.

          Section 2.04. Power of Attorney.

               (a) By executing this Agreement, each Limited Partner and each Assignee irrevocably
constitutes and appoints the General Partner, any Liquidator, and authorized officers and
attorneys-in-fact of each, and each of those acting singly, in each case with full power of
substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in
its name, place and stead to:

               (i) execute, swear to, seal, acknowledge, deliver, file and record in the appropriate public
offices (a) all certificates, documents and other instruments (including, without limitation,
this Agreement and the Certificate and all amendments, supplements or restatements thereof) that
the General Partner or any Liquidator deems appropriate or necessary to form, qualify or continue
the existence or qualification of the Partnership as a limited partnership (or a partnership in
which the limited partners have limited liability to the extent provided by applicable law) in
the State of Delaware and in all other jurisdictions in which the Partnership may, or plans to,
conduct business or own property; (b) all instruments that the General Partner or the Liquidator
deems appropriate or necessary to reflect any amendment, change, modification or restatement of
this Agreement in accordance with its terms; (c) all conveyances and other instruments or
documents that the General Partner or the Liquidator deems appropriate or necessary to reflect
the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement,
including, without limitation, a certificate of cancellation; (d) all conveyances and other
instruments or documents that the General Partner or the Liquidator deems appropriate or
necessary to reflect the distribution or exchange of assets of the Partnership pursuant to the
terms of this Agreement; (e) all instruments relating to the admission, withdrawal, removal or
substitution of any Partner pursuant to, or other events described in, Article XI, Article XII or
Article XIII hereof or the Capital Contribution of any Partner; and (f) all certificates,
documents and other instruments relating to the determination of the rights, preferences and
privileges of Partnership Interests; and

               (ii) execute, swear to, acknowledge and file all ballots, consents, approvals, waivers,
certificates and other instruments appropriate or necessary, in the sole and absolute discretion
of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote,
consent, approval, agreement or other action that is made or given by the Partners hereunder or
is consistent with the terms of this Agreement or appropriate or necessary, in the sole and
absolute discretion of the General Partner or 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 XIV hereof or as may be
otherwise expressly provided for in this Agreement.

               (b) The foregoing power of attorney is hereby declared to be irrevocable and a special power
coupled with an interest, in recognition of the fact that each of the Limited

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Partners and
Assignees will be relying upon the power of the General Partner or 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 or Partnership Interest and shall extend to such Limited Partner’s or Assignee’s heirs,
successors, assigns and personal representatives. Each such Limited Partner or Assignee hereby
agrees to be bound by any representation made by the General Partner or 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 that may be available to contest, negate or disaffirm the action of the
General Partner or the Liquidator, taken in good faith under such power of attorney. Each Limited
Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within 15
days after receipt of the General Partner’s or the Liquidator’s request therefor, such further
designation, powers of attorney and other instruments as the General Partner or the Liquidator, as
the case may be, deems necessary to effectuate this Agreement and the purposes of the Partnership.
Notwithstanding anything to the contrary set forth in this Section 2.04(b), no Limited Partner
shall incur any personal liability for any action of the General Partner or any Liquidator taken
under such power of attorney, except to the extent otherwise provided in this Agreement.

          Section 2.05. Term. Pursuant to Sections 17-201(b) and 17-801 of the Act, the term of the Partnership commenced
on July 29, 2010 and shall continue perpetually, unless it is dissolved pursuant to the provisions
of Article XIII hereof or as otherwise provided by law.

          Section 2.06. Partnership Interests are Securities. All Partnership Interests shall be securities within the meaning of, and governed by, (i)
Article 8 of the Delaware Uniform Commercial Code and (ii) Article 8 of the Uniform Commercial Code
of any other applicable jurisdiction.

ARTICLE III

PURPOSE

          Section 3.01. Purpose and Business. The purpose and nature of the Partnership is to conduct any business, enterprise or activity
permitted by or under the Act; provided, however, that such business and arrangements and interests
shall be limited to and conducted in such a manner as to permit the General Partner at all times to
qualify and be classified as a REIT unless the General Partner ceases to qualify as a REIT for
reasons other than the conduct of the business of the Partnership or the General Partner
voluntarily revokes its election to be a REIT in accordance with its Charter. In connection with
the foregoing, and without limiting the General Partner’s right to cease qualifying as a REIT in
accordance with its Charter, the Partners acknowledge that the
qualification of the General Partner as a REIT inures to the benefit of all Partners and not
solely to the General Partner or its Affiliates. In connection with the foregoing, the Partnership
shall have full power and authority to enter into, perform and carry out contracts of any kind, to
borrow and lend money and to issue and guarantee evidence of indebtedness, whether or not secured
by mortgage, deed of trust, pledge or other lien and, directly or indirectly, to acquire and
construct additional Properties necessary, useful or desirable in connection with its business.

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          Section 3.02. Powers.

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

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

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

          Section 3.03. Partnership Only for Partnership Purposes Specified. This Agreement shall not be deemed to create a company, venture or partnership between or
among the Partners with respect to any activities whatsoever other than the activities within the
purposes of the Partnership as specified in Section 3.01 hereof. Except as otherwise provided in
this Agreement, no Partner shall have any authority to act for, bind, commit or assume any
obligation or responsibility on behalf of the Partnership, its Properties or any other Partner. No
Partner, in its capacity as a Partner under this Agreement, shall be responsible or liable for any
indebtedness or obligation of any other Partner, and the Partnership shall not be responsible or
liable for any indebtedness or obligation of any Partner, incurred either before or after the
execution and delivery of this Agreement by such Partner, except as to those responsibilities,
liabilities, indebtedness or obligations incurred pursuant to and as limited by the terms of this
Agreement and the Act.

          Section 3.04. Representations and Warranties by the Parties.

               (a) Each Partner (including, without limitation, each Additional Limited Partner or
Substituted Limited Partner as a condition to becoming an Additional Limited Partner or a
Substituted Limited Partner, respectively) represents and warrants to each other Partner that,
except as the General Partner otherwise agrees in writing to the contrary:

               (i) the consummation of the transactions contemplated by this Agreement to be performed by
such Partner will not result in a breach or violation of, or a default under, any material
agreement by which such Partner or any of such Partner’s property is bound, or any statute,
regulation, order or other law to which such Partner is subject;

               (ii) if such Partner is an individual, such Partner has the legal capacity to enter into
this Agreement and perform such Partner’s obligations hereunder;

25

 

               (iii) if such Partner is not an individual, its execution and delivery of this Agreement and
all transactions contemplated by this Agreement to be performed by it have been duly authorized
by all necessary action, including without limitation, that of its general partner(s),
committee(s), trustee(s), beneficiaries, director(s), member(s) and/or stockholder(s), as the
case may be, as required;

               (iv) subject to the last sentence of this Section 3.04(a), such Partner is a “United States
person” within the meaning of Section 7701(a)(30) of the Code;

               (v) subject to the last sentence of this Section 3.04(a), such Partner is neither a “foreign
person” within the meaning of Code Section 1445(f) nor a “foreign partner” within the meaning of
Code Section 1446(e);

               (vi) this Agreement is binding upon, and enforceable against, such Partner in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization. fraudulent conveyance, moratorium or similar laws affecting
creditors’ rights generally, as from time to time in effect, or the application of equitable
principles;

               (vii) upon request of the General Partner, it will promptly disclose to the General Partner
the amount of REIT Shares or other capital shares of the General Partner that it actually owns or
Constructively Owns; and

               (viii) without the consent of the General Partner, which may be given or withheld in its
sole discretion, it shall not take any action that would cause the Partnership at any time to
have more than one hundred (100) partners (including as partners those Persons indirectly owning
an interest in the Partnership through a partnership, limited liability company, S corporation or
grantor trust (such entity, a “flow through entity”), but only if substantially all of the value
of such Person’s interest in the flow through entity is attributable to the flow through entity’s
interest (direct or indirect) in the Partnership);

               (ix) Notwithstanding anything contained herein to the contrary, if the representations
contained in the foregoing clauses (iv) and (v) would be inaccurate if given by a Partner, such
Partner (A) shall not be required to make and shall not be deemed to have made such
representation, if it delivers to the General Partner in connection with or prior to its
execution of this Agreement written notice that it may not truthfully make such representation,
(B) hereby agrees that it is subject to, and hereby authorizes the General Partner to withhold,
all withholdings to which such a “foreign person” or “foreign partner,” as applicable, is subject
under the Code and (C) hereby agrees to cooperate fully with the General Partner with respect to
such withholdings, including by effecting the timely
completion and delivery to the General Partner of all governmental forms required in
connection therewith.

               (b) Each Partner (including, without limitation, each Additional Limited Partner and
Substituted Limited Partner as a condition to becoming an Additional Limited Partner or a
Substituted Limited Partner) represents, warrants and agrees that it has acquired and continues to
hold its interest in the Partnership for its own account for investment purposes only

26

 

and not for
the purpose of, or with a view toward, the resale or distribution of all or any part thereof, and
not with a view toward selling or otherwise distributing such interest or any part thereof at any
particular time or under any predetermined circumstances. Each Partner further represents and
warrants that it is a sophisticated investor, able and accustomed to handling sophisticated
financial and tax matters for itself, particularly real estate investments, and that it has a
sufficiently high net worth that it does not anticipate a need for the funds that it has invested
in the Partnership in what it understands to be a highly speculative and illiquid investment.

               (c) The representations and warranties contained in Sections 3.04(a) and 3.04(b) hereof shall
survive the execution and delivery of this Agreement by each Partner (and, in the case of an
Additional Limited Partner or a Substituted Limited Partner, the admission of such Additional
Limited Partner or Substituted Limited Partner as a Limited Partner in the Partnership) and the
dissolution, liquidation and winding up of the Partnership.

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

               (e) Each Partner understands that if, for any reason; the Partnership’s actual or Constructive
Ownership of REIT Shares or other capital shares of the General Partner violates the limitations
set forth in the Charter, then (x) some or all of the Redemption Rights of the Partners may become
non-exercisable; and (y) some or all of the REIT Shares owned by the Partners may be automatically
transferred to a trust for the benefit of a charitable beneficiary, as provided in the Charter.

ARTICLE IV

CAPITAL CONTRIBUTIONS

          Section 4.01. Capital Contributions of the Partners.

               (a) Capital Contributions. The Partnership has entered into the Contribution Agreement and is
hereby authorized to consummate the transactions contemplated by the
Contribution Agreement in accordance with the terms thereof. Each Partner has made a Capital
Contribution to the Partnership and owns Partnership Units in the amount and designation set forth
for such Partner on Exhibit A, as the same may be amended from time to time by the General Partner
to the extent necessary to reflect accurately sales, exchanges, conversions or other Transfers,
redemptions, Capital Contributions, the issuance of additional Partnership Units, or similar events
having an effect on a Partner’s ownership of Partnership Units. Except as

27

 

provided by law or in
Section 4.04, 10.04 or 13.02(d) hereof, the Partners shall have no obligation or right to make any
additional Capital Contributions or loans to the Partnership.

               (b) General Partner Interest. A number of Partnership Units held by the General Partner equal
to one percent (1%) of all outstanding Partnership Units shall be deemed to be the General Partner
Interest of the General Partner. All other Partnership Units held by the General Partner shall be
deemed to be Limited Partner Interests and shall be held by the General Partner in its capacity as
a Limited Partner of the Partnership.

          Section 4.02. Classes of Partnership Units. From and after the Effective Date, subject to Section 4.03(a) hereof, the Partnership shall
have two classes of Partnership Units, designated “Common Units,” and “LTIP Units.” Subject to
Section 4.06 hereof, Common Units, or LTIP Units, or a combination of both, at the election of the
General Partner, in its sole and absolute discretion, may be issued to newly admitted Partners in
exchange for any Capital Contributions by such Partners and/or the provision of services by such
Partners; provided, that any Partnership Unit that is not specifically designated by the General
Partner as being of a particular class shall be deemed to be a Common Unit.

          Section 4.03. Issuances of Additional Partnership Interests.

               (a) General. Notwithstanding anything to the contrary in Section 4.02 or in Section 7.03(b)
hereof, the General Partner is hereby authorized to cause the Partnership to issue additional
Partnership Interests, in the form of Partnership Units, for any Partnership purpose, at any time
or from time to time, to the Partners (including the General Partner) or to other Persons, and to
admit such Persons as Additional Limited Partners, for such consideration and on such terms and
conditions as shall be established by the General Partner in its sole and absolute discretion, all
without the approval of any Limited Partners. Without limiting the foregoing, the General Partner
is expressly authorized to cause the Partnership to issue Partnership Units (i) upon the
conversion, redemption or exchange of any Debt, Partnership Units or other securities issued by the
Partnership, (ii) for less than fair market value, so long as the General Partner concludes in good
faith that such issuance is in the best interests of the Partnership and (iii) in connection with
any merger of any other Person into the Partnership or any Subsidiary of the Partnership if the
applicable merger agreement provides that Persons are to receive Partnership Units in exchange for
their interests in the Person merging into the Partnership or any Subsidiary of the Partnership.
Subject to Delaware law, any additional Partnership Interests may be issued in one or more classes,
or one or more series of any of such classes, with such designations, preferences and relative,
participating, optional or other special rights, powers and duties as shall be determined by the
General Partner, in its sole and absolute discretion, without the approval of any Limited Partner,
and set forth in a written document thereafter attached to and made an
exhibit to this Agreement (each, a “Partnership Unit Designation”). Without limiting the
generality of the foregoing, the General Partner shall have authority to specify (a) the
allocations of items of Partnership income, gain, loss, deduction and credit to each such class or
series of Partnership Interests; (b) the right of each such class or series of Partnership
Interests to share in Partnership distributions; (c) the rights of each such class or series of
Partnership Interests upon dissolution and liquidation of the Partnership; (d) the voting rights,
if any, of each such class or series of Partnership Interests; and (e) the conversion, redemption
or exchange rights applicable to each such class or series of Partnership Interests. Nothing in
this Agreement shall prohibit the

28

 

General Partner from issuing Partnership Units for less than fair
market value if the General Partner concludes in good faith that such issuance is in the best
interest of the Partnership. Upon the issuance of any additional Partnership Interest, the General
Partner shall amend Exhibit A as appropriate to reflect such issuance.

               (b) Issuances to the General Partner. No additional Partnership Units shall be issued to the
General Partner unless (i) the additional Partnership Units are issued to all Partners in
proportion to their respective Percentage Interests with respect to the class of Partnership Units
so issued, (ii) (A) the additional Partnership Units are (x) Common Units issued in connection with
an issuance of REIT Shares or (y) Partnership Units (other than Common Units) issued in connection
with an issuance of Preferred Shares, Junior Shares, New Securities or other interests in the
General Partner (other than REIT Shares), which Preferred Shares, Junior Shares, New Securities or
other interests have designations, preferences and other rights, terms and provisions that are
substantially the same as the designations, preferences and other rights, terms and provisions of
the additional Partnership Units issued to the General Partner and (B) the General Partner directly
or indirectly contributes or otherwise causes to be transferred to the Partnership the net cash
proceeds or other consideration, if any, received in connection with the issuance of such REIT
Shares, Preferred Shares, Junior Shares, New Securities or other interests in the General Partner,
or (iii) the additional Partnership Units are issued upon the conversion, redemption or exchange of
Debt, Partnership Units or other securities issued by the Partnership. If the Partnership issues
additional Partnership Units pursuant to this Section 4.03(b) hereof, the General Partner shall
make such revisions to this Agreement (including but not limited to the revisions described in
Sections 6.02(b) and 8.06 hereof) as it determines are necessary to reflect the issuance of such
additional Partnership Interests.

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

          Section 4.04. Additional Funds and Capital Contributions.

               (a) General. The General Partner may, at any time and from time to time, determine that the
Partnership requires additional funds (“Additional Funds”) for the acquisition or development of
additional Properties, for the Redemption of Partnership Units or for such other purposes as the
General Partner may determine in its sole and absolute discretion. Additional Funds may be obtained
by the Partnership, at the election of the General Partner, in any manner provided in, and in
accordance with, the terms of this Section 4.04 without the approval of any Limited Partners.

               (b) Additional Capital Contributions. The General Partner, on behalf of the Partnership, may
obtain any Additional Funds by accepting Capital Contributions from any Partners or other Persons.
In connection with any such Capital Contribution (of cash or property), the General Partner is
hereby authorized to cause the Partnership from time to time to issue additional Partnership Units
(as set forth in Section 4.03 hereof) in consideration therefor and the Percentage Interests of the
General Partner and the Limited Partners shall be adjusted to reflect the issuance of such
additional Partnership Units.

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               (c) Loans by Third Parties. The General Partner, on behalf of the Partnership, may obtain any
Additional Funds by causing the Partnership to incur Debt to any Person upon such terms as the
General Partner determines appropriate, including making such Debt convertible, redeemable or
exchangeable for Partnership Units; provided, however, that the Partnership shall not incur any
such Debt if (i) any Partner would be personally liable for the repayment of such Debt (unless such
Partner otherwise agrees), (ii) unless the General Partner otherwise determines to be in the best
interests of the Partnership, a breach, violation or default of such Debt would be deemed to occur
by virtue of the transfer of any Partnership Interest, or (iii) unless the General Partner
otherwise determines to be in the best interests of the Partnership, a breach, violation or default
under any other Debt or material commitment of the Partnership would occur as a result of the
incurrence of such Debt (in each case as such Debt is in effect from time to time).

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

               (e) Issuance of Securities by the General Partner. The General Partner shall not issue any
additional REIT Shares, Preferred Shares, Junior Shares or New Securities unless the General
Partner contributes directly or indirectly the cash proceeds or other consideration, if any,
received from the issuance of such additional REIT Shares, Preferred Shares, Junior Shares or New
Securities, as the case may be, and from the exercise of the rights contained in any such
additional New Securities, to the Partnership in exchange for (x) in the case of an issuance of
REIT Shares, Partnership Units or (y) in the case of an issuance of Preferred Shares, Junior Shares
or New Securities, Partnership Units with designations, preferences and other rights, terms and
provisions that are substantially the same as the designations, preferences and other rights, terms
and provisions of such Preferred Shares, Junior Shares or New Securities; provided, however, that
notwithstanding the foregoing, the General Partner may issue REIT Shares, Preferred Shares, Junior
Shares or New Securities (i) pursuant to Section 4.05 or 8.06(b) hereof, (ii) pursuant to a
dividend or distribution (including any stock
split) wholly or partly of REIT Shares, Preferred Shares, Junior Shares or New Securities to
all of the holders of REIT Shares, Preferred Shares, Junior Shares or New Securities, as the case
may be, (iii) upon a conversion, redemption or exchange of Preferred Shares, (iv) upon a conversion
of Junior Shares into REIT Shares, (v) upon a conversion, redemption, exchange or exercise of New
Securities or (vi) pursuant to share grants or awards made pursuant to any Incentive Compensation
Plan of the General Partner. In the event of any issuance of additional REIT Shares, Preferred
Shares, Junior Shares or New Securities by the General Partner, and the direct or indirect
contribution to the Partnership, by the General Partner, of the net cash proceeds

30

 

or other
consideration received from such issuance, if any, the Partnership shall pay the General Partner’s
expenses associated with such issuance, including any underwriting discounts or commissions (it
being understood that if the proceeds actually received by the General Partner are less than the
gross proceeds of such issuance as a result of any underwriter’s discount or other expenses paid or
incurred by the General Partner in connection with such issuance, then the General Partner shall be
deemed to have made a Capital Contribution to the Partnership in the amount of the gross proceeds
of such issuance and the Partnership shall be deemed simultaneously to have reimbursed the General
Partner pursuant to Section 7.04(b) hereof for the amount of such underwriter’s discount or other
expenses). Nothing in this Agreement shall prohibit the General Partner from issuing Partnership
Units for less than fair market value if the General Partner concludes in good faith that such
issuance is in the best interest of the Partnership.

          Section 4.05. Incentive Compensation Plan.

               (a) Options Granted to General Partner Employees and Independent Directors. If at any time or
from time to time, in connection with an Incentive Compensation Plan, a stock option granted to a
General Partner Employee or Independent Director is duly exercised:

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

               (ii) Notwithstanding the amount of the Capital Contribution actually made pursuant to
Section 4.05(a)(i) hereof, the General Partner shall be deemed to have contributed directly or
indirectly to the Partnership, as a Capital Contribution, in consideration of an additional
Limited Partner Interest (expressed in and as additional Partnership Units), an amount equal to
the Value of a REIT Share as of the date of exercise multiplied by the number of REIT Shares then
being issued in connection with the exercise of such stock option.

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

               (b) Special Valuation Rule. For purposes of this Section 4.05, in determining the Value of a
REIT Share, only the trading date immediately preceding the exercise of the relevant stock option
under the Incentive Compensation Plan shall be considered.

               (c) Grant of Restricted Stock or Stock Options. The General Partner may, pursuant to an
Incentive Compensation Plan or otherwise, provide for the grant of (i) restricted stock or stock
options in the General Partner or other rights with respect to the General Partner’s Common Units,
(ii) LTIP Units and LTIP Awards with respect to Partnership interests, or (iii) cash bonuses or
other incentive compensation, including equity based grants (with any such

31

 

grant being made at such
times, including annually or more frequently, as determined by the General Partner).

               (d) Future Incentive Compensation Plans. Nothing in this Agreement shall be construed or
applied to preclude or restrain the General Partner from adopting, modifying or terminating any
Incentive Compensation Plan, for the benefit of employees, directors or other business associates
of the General Partner, the Partnership or any of their Affiliates. The Limited Partners
acknowledge and agree that, if any such plan is adopted, modified or terminated by the General
Partner, amendments to this Section 4.05 may become necessary or advisable and that any approval or
consent of the Limited Partners required pursuant to the terms of this Agreement in order to effect
any such amendments requested by the General Partner shall not be unreasonably withheld or delayed.

          Section 4.06. LTIP Units.

               (a) Issuance of LTIP Units. Pursuant to an Incentive Compensation Plan or otherwise, the
Partnership may, from time to time, issue LTIP Units to Persons who have provided, or will provide,
services to (or for the benefit of) the Partnership for such consideration (if any) as the General
Partner may determine to be appropriate, and admit such Persons as Limited Partners. Such Persons
(including recipients of LTIP Units pursuant to the 2011 Incentive Compensation Plan) shall be
deemed to be Partners of the Partnership for all purposes as of the effective date of the grant of
such LTIP Units to such Person. It is intended that LTIP Units shall be designated as part of a
specified Series of LTIP Units issued from time to time to a new or existing Partner pursuant to an
LTIP Award. Except to the extent a Capital Contribution is made with respect to an LTIP Unit, each
LTIP Unit is 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 the Code, the Regulations, and any published
guidance by the IRS with respect thereto. Subject to the following provisions of this Section 4.06
and the special provisions of Sections 4.07 and 6.02 hereof, LTIP Units shall be treated as
Partnership Units, with all of the rights, privileges and obligations attendant thereto. Subject to
the provisions of Section 4.06(c)(ii) and Section 4.07 hereof, it is intended that the Partnership
shall maintain at all times a one-to-one correspondence between LTIP Units and Common Units for
conversion, distribution and other purposes, including without limitation complying with the
following procedures:

               (i) If an Adjustment Event (as defined below) occurs, then the General Partner shall make a
corresponding adjustment to the LTIP Units to maintain the same correspondence between Common
Units and LTIP Units as existed prior to such
Adjustment Event. Each of the following events shall be “Adjustment Events:” (A) the
Partnership makes a distribution on all outstanding Common Units in Common Units, (B) the
Partnership subdivides the outstanding Common Units into a greater number of units or combines
the outstanding Common Units into a smaller number of units, or (C) the Partnership issues any
Common Units in exchange for its outstanding Common Units by way of a reclassification or
recapitalization of its Common Units. If more than one Adjustment Event occurs, the adjustment to
the LTIP Units need be made only once using a single formula that takes into account each and
every Adjustment Event as if all Adjustment Events occurred simultaneously. The following events
shall not be Adjustment Events: (x) the

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issuance of Common Units in a financing, reorganization,
acquisition or other similar business transaction, (y) the issuance of Common Units pursuant to
any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance
of any Common Units to the General Partner in respect of a capital contribution to the
Partnership of proceeds from the sale of securities by the General Partner. If the Partnership
takes an action affecting the Common 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 LTIP Units to maintain the one-to-one correspondence described above, the
General Partner shall have the right to make such adjustment to the LTIP Units, to the extent
permitted by law and by any Incentive Compensation Plan, in such manner and at such time as the
General Partner, in its sole discretion, may determine to be appropriate under the circumstances.
If an adjustment is made to the LTIP 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 LTIP Unitholder
setting forth the adjustment to his or her LTIP Units and the effective date of such adjustment;
and

               (ii) Unless otherwise provided in an LTIP Award, the LTIP Unitholders shall, when, as and if
authorized and declared by the General Partner out of assets legally available for that purpose,
be entitled to receive distributions in an amount per LTIP Unit equal to the distributions per
Common Unit (the “Partnership Unit Distribution”) paid to holders of Common Units on such
Partnership Record Date established by the General Partner with respect to such distribution
(excluding distributions in liquidation of the Partnership or a Partner’s interest therein, which
distributions shall be subject to the Capital Account distribution requirement of Section
13.02(a)(iv) hereof). So long as any LTIP Units are outstanding, no distributions (whether in
cash or in kind) shall be authorized, declared or paid on Common Units unless equal distributions
have been or contemporaneously are authorized, declared and paid on the LTIP Units (excluding
distributions in liquidation of the Partnership or a Partner’s interest therein, subject to the
Capital Account distribution requirement of Section 13.02(a)(iv) hereof).

               (iii) Priority. Subject to the provisions of this Section 4.06 and Section 4.07 hereof and
the special provisions of Sections 6.02(c) and 6.02(d) hereof, the LTIP Units shall rank pari
passu with the Common Units as to the payment of regular and special periodic or other
distributions and, subject to Sections 13.02(a)(iv) and 13.02(c) hereof, distribution of assets
upon liquidation, dissolution or winding up. As to the payment of distributions and as to
distribution of assets upon liquidation, dissolution or winding up, any
class or series of Common Units or Partnership Interests which by its terms specifies that
it shall rank junior to, on a parity with, or senior to the Common Units shall also rank junior
to, or pari passu with, or senior to, respectively, the LTIP Units.

               (b) Special Provisions. LTIP Units shall be subject to the following special provisions:

               (i) LTIP Awards. LTIP Units of any Series may, in the sole discretion of the General
Partner, be issued subject to such economic and
other rights and

33

 

entitlements as shall be
determined by the General Partner. The terms of any such Award may be modified by the General
Partner from time to time in its sole discretion, subject to any restrictions on amendment
imposed by the relevant LTIP Award or by the applicable Incentive Compensation Plan pursuant to
which such LTIP Award was issued; provided, that any such restriction or amendment shall not
materially diminish the economic rights and entitlements applicable to existing LTIP Units. For
the avoidance of confusion, it is explicitly agreed that the mere grant of subsequent LTIP Awards
and/or the issuance of any additional Common Units (whether on a parity with, senior to or junior
to any such LTIP Units) shall not itself be deemed to restrict or materially diminish the rights
of existing LTIP Units.

               (ii) Forfeiture. Except as otherwise specified in the applicable LTIP Award, LTIP Units
shall be subject to the forfeiture, conversion and redemption rights provisions as set forth in
Section 4.07 hereof.

               (iii) Allocations. LTIP Unitholders shall be entitled to certain special allocations of gain
under Sections 6.02(c) and 6.02(d) hereof.

               (iv) Redemption. The Redemption Right provided to Limited Partners under Section 8.06 hereof
shall not apply with respect to LTIP Units unless and until they are converted to Common Units as
provided in clause (v) below and Section 4.07 hereof.

               (v) Conversion to Common Units. Upon the occurrence of a Trigger Event, LTIP Units are
eligible to be converted into Common Units under Section 4.07 hereof.

               (vi) Legend. Any certificate evidencing an LTIP Unit shall bear an appropriate legend
indicating that additional terms, conditions and restrictions on transfer, including without
limitation any LTIP Award, apply to the LTIP Unit.

               (c) Voting. LTIP Unitholders shall (a) have the same voting rights as a holder of Common
Units, with the LTIP Units voting as a single class with the Common Units and having one vote per
LTIP Unit; and (b) have the additional voting rights that are expressly set forth below. So long as
any LTIP Units remain outstanding, the Partnership shall not, without the affirmative vote of the
holders of at least a majority of the LTIP 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 LTIP
Units so as to materially and adversely affect any right, privilege or voting power of the LTIP
Units or the LTIP Unitholders as such, unless such amendment,
alteration, or repeal affects equally, ratably and proportionately the rights, privileges and
voting powers of the holders of Partnership Units; but subject, in any event, to the following
provisions:

               (i) The consummation of a Fundamental Transaction shall not be deemed to materially and
adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the
LTIP Unitholders as such; provided, that such transaction is treated as a Trigger Event and the
Conversion Percentage applicable to all LTIP Units shall be deemed to be 100% in connection with
such transaction; and

34

 

               (ii) Any creation or issuance of any Partnership Units or of any class or series of
Partnership Interest including without limitation additional Common Units, LTIP Units or
Preferred Units, whether ranking senior to, junior to, or on a parity with the LTIP 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 LTIP Units or the LTIP Unitholders as such.

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

               (d) Liquidation Value of LTIP Units Upon Issuance; Safe Harbor Election and Forfeiture
Allocations.

               (i) The Partners agree that the General Partner may make an election, on behalf of itself
and of all Partners, to have the “Safe Harbor” of Section 3.03 of IRS Notice 2005-43 (or the
corresponding provision in any Revenue Procedure or regulation issued in execution of the
provisions of such Notice) (the “Safe Harbor”) apply irrevocably with respect to LTIP Units
transferred in connection with the performance of services by a Partner in a partner capacity
(such election, the “Safe Harbor Election”). The Safe Harbor Election shall be effective as of
the date of issuance of such LTIP Units. If such election is made, (A) 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 (B) 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.

               (ii) The Partners agree that (A) if a Safe Harbor Election is made by the General Partner,
each LTIP Unit issued hereunder is a “Safe Harbor Partnership Interest” within the meaning of
section 3.02 of IRS Notice 2005-43 (or the corresponding provision in any Revenue Procedure or
regulation issued in relation to the provisions of such Notice or successor pronouncement), (B)
each LTIP Unit represents a profits interest received for services rendered or to be rendered to
or for the benefit of the Partnership by the LTIP Unitholder in his or her capacity as a Partner
or in anticipation of becoming a Partner, and (C) the fair market value of each LTIP Unit issued
by the Partnership upon receipt by the LTIP Unitholder as of the date of issuance is zero (plus
the amount, if any, of any Capital
Contributions made to the Partnership by such LTIP Unitholder in connection with the
issuance of such LTIP Unit), representing the liquidation value of such interest upon receipt
(with such valuation being consented to and hereby approved by all Partners).

               (iii) 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 LTIP Unitholder’s Safe Harbor Partnership Interest, and (B) 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

35

 

or loss (including, as may be
permitted by or under Treasury Regulations (or other rules promulgated) to be adopted, notional
items of income, deduction or loss) in accordance with the Treasury Regulations to be adopted
under Sections 704(b) and 83 of the Code.

               (iv) 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
transfers of each LTIP Unitholder’s Safe Harbor Partnership Interest.

               (v) 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 LTIP Units is not a
taxable event with respect to the LTIP Unitholders, 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 LTIP Units
to LTIP Unitholders from being a taxable event may be reflected in such amendments and, to the
extent so reflected, shall be binding on each Partner.

               (vi) 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.

               (vii) 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 this Section 4.06(d), in a form reasonably satisfactory
to the General Partner.

               (viii) The General Partner may amend this Section 4.06(d) as it deems necessary or
appropriate to maximize the tax benefit of the issuance of LTIP Units to any LTIP Unitholder if
there are changes in the law or Regulations concerning the issuance of partnership interests for
services.

          Section 4.07. Conversion of LTIP Units.

               (a) Forfeited Capital Account and Determination of Resulting Common Unit Entitlement Upon
Conversion. Except as otherwise provided below, upon the occurrence of any Trigger Event with
respect to one or more LTIP Units owned by an LTIP Unitholder, the Forfeited Capital Account with
respect to such LTIP Units shall be forfeited and such LTIP Units shall, without the taking of any
action by the General Partner or any Partners holding such Units, automatically convert into that
number of Common Units calculated in the following manner.

36

 

The number of Common Units to be received by a holder of LTIP Units shall equal the amount
determined as follows. The General Partner shall:

               (i) determine the Adjusted Capital Account Balance properly allocable to each LTIP Unit held
by such holder;

               (ii) subtract from the Adjusted Capital Account Balance properly allocable to such LTIP
Units being converted the Forfeited Capital Account allocable to such LTIP Units as of such time;

               (iii) divide the remainder by the Adjusted Capital Account Balance properly allocable to one
Common Unit determined immediately prior to such conversion, after taking into account any
adjustments made pursuant to Article VI hereof (including Sections 6.02(c) and 6.02(d) thereof)
through and including the date of conversion; and

               (iv) multiply the resulting number (whether expressed as a decimal or a fraction but which
shall in no event exceed 1.0) by the number of LTIP Units subject to such conversion in order to
determine the number of Common Units into which such LTIP Units shall convert.

               (b) Change in Control. In the event of a Trigger Event which is a Change in Control,
the Conversion Percentage applicable to LTIP Units shall be 100%.

               (c) Termination of Employment. As of the date an LTIP Unitholder is no longer an
employee of the Partnership, the General Partner or any of their subsidiaries or Affiliates (other
than by reason of the LTIP Unitholder’s death or Disability, as provided in Section 4.07(d) hereof
or in connection with a Trigger Event),

     (i) except as otherwise provided in clause (ii) below, the Forfeited Capital
Account with respect to the LTIP Units of such LTIP Unitholder shall be forfeited
and the Partnership shall have the right, for 90 days following the date of
termination of such LTIP Unitholder’s employment, to redeem each LTIP Unit held by
such LTIP Unitholder in exchange for, at the Partnership’s option, either:

     (1) the number of shares of Common Stock calculated by dividing:

     (A) the remainder resulting from subtracting (x) the Forfeited
Capital Account as of the time of redemption from (y) the Adjusted
Capital Account Balance properly allocable to each such LTIP Unit as
determined by the General Partner after taking into account all
allocations required to be made pursuant to Article VI hereof
(including Sections 6.02(c) and 6.02(d) thereof) and, if the
provisions of Section 6.02(d) thereof are inapplicable, in a manner
consistent with the provisions of Treasury Regulation Section
1.704-1(b)(2)(iv)(f), by

37

 

     (B) the Closing Price of Common Stock determined as of such
date; or

(2) the number of Common Units calculated by dividing

     (A) the remainder resulting from subtracting (x) the Forfeited
Capital Account from (y) the Adjusted Capital Account Balance which
would be allocable to each such LTIP Unit as determined by the
General Partner after taking into account all allocations required to
be made pursuant to Article VI hereof (including Sections 6.02(c) and
6.02(d) thereof) and assuming that the Capital Accounts of the
Partners were adjusted at such time as provided in Sections 6.02(d)
hereof (and if the provisions of Section 6.02(d) hereof are
inapplicable, in a manner consistent with the provisions of Treasury
Regulation Section 1.704-1(b)(2)(iv)(f)) by

     (B) the Adjusted Capital Account Balance properly allocable to
one Common Unit determined immediately prior to such redemption,
after taking into account any adjustments made pursuant to Article VI
hereof (including Section 6.02(d) thereof) and assuming that the
Capital Accounts of the Partners were adjusted at such time as
provided in Section 6.02(d) hereof through and including the date of
redemption and if the provisions of Section 6.02(d) hereof are
inapplicable, in a manner consistent with the provisions of Treasury
Regulation Section 1.704-1(b)(2)(iv)(f).

     (ii) notwithstanding anything to the contrary above, an LTIP Award may provide
that in the event of a termination of employment of an LTIP Unitholder by the
Partnership, General Partner or one of its Affiliates which is without Cause or by
the LTIP Unitholder resigning for Good Reason, an LTIP Award may provide that clause
(i) above shall be applied as if the Conversion Percentage applicable to such LTIP
Units is equal to 100% (or another specified percentage) and, accordingly the
Forfeited Capital Account attributable to such LTIP Units shall be zero.

               (d) Death or Disability of an LTIP Unitholder.

     (i) Except as otherwise provided in clause (ii) below, upon the death or
Disability of an LTIP Unitholder, the Forfeited Capital Account with respect to such
LTIP Unit shall be forfeited and each such LTIP Unit held by such LTIP Unitholder
shall be redeemed by the Partnership for, at its option, either:

     (1) the number of shares of Common Stock calculated by dividing:

     (A) the remainder resulting from subtracting (x) the Forfeited Capital
Account as of the time of redemption from (y) the Adjusted

38

 

Capital Account
Balance properly allocable to each such LTIP Unit as determined by the
General Partner after taking into account all allocations required to be
made pursuant to Article VI hereof (including Sections 6.02(c) and 6.02(d)
thereof) (and if the provisions of Section 6.02(d) thereof are inapplicable,
in a manner consistent with the provisions of Treasury Regulation Section
1.704-1(b)(2)(iv)(f)), by

     (B) the Closing Price of Common Stock determined as of such date; or

     (2) the number of Common Units calculated by dividing

     (A) the remainder resulting from subtracting (x) the Forfeited Capital
Account from (y) the Adjusted Capital Account Balance which would be
allocable to each such LTIP Unit as determined by the General Partner after
taking into account all allocations required to be made pursuant to Article
VI hereof (including Sections 6.02(c) and 6.02(d) thereof) and assuming that
the Capital Accounts of the Partners were adjusted at such time as provided
in Section 6.02(d) hereof (and if the provisions of Section 6.02(d) hereof
are inapplicable, in a manner consistent with the provisions of Treasury
Regulation Section 1.704-1(b)(2)(iv)(f)) by

     (B) the Adjusted Capital Account Balance properly allocable to one Common
Unit determined immediately prior to such redemption, after taking into
account any adjustments made pursuant to Article VI hereof (including Sections
6.02(c) and 6.02(d) thereof) and assuming that the Capital Accounts of the
Partners were adjusted at such time as provided in Section 6.02(d) hereof
through and including the date of redemption (and if the provisions of Section
6.02(d) hereof are inapplicable, in a manner consistent with the provisions of
Treasury Regulation Section 1.704-1(b)(2)(iv)(f)).

The Partnership shall effect the redemption required by this Section 4.07(d)
within 60 days following its receipt of written notification of the death or
Disability of an LTIP Unitholder.

(ii) notwithstanding anything to the contrary above, an LTIP Award may provide
that in the event of an LTIP Unitholder’s death or Disability, an LTIP Award
may provide that clause (i) above shall be applied as if the Conversion
Percentage applicable to such LTIP Units is equal to 100% (or another
specified percentage) and, accordingly the Forfeited Capital Account
attributable to such LTIP Units shall be zero.

               (e) Fractional Shares or Units. In lieu of delivering a fractional share of
Common Stock or Common Unit pursuant to this Section 4.07, the Partnership may deliver cash equal
to the Closing Price attributable to such fractional share, which in the case of a fractional

39

 

Common Unit shall take into account the Adjustment Factor. For the avoidance of doubt, as to
any fractional Common Unit or fraction of a share of Common Stock which would otherwise be
delivered, the Partnership shall pay a cash adjustment in respect of such fraction (which for each
holder of LTIP Units shall be deemed to be a fraction of a single Common Unit or a single share of
Common Stock after taking into account all LTIP Units held by such holder, not on a unit-by-unit
basis) in the amount provided for in this subsection (e).

               (f) The holder of any Common Units received upon a conversion or Redemption of LTIP Units
pursuant to this Section 4.07 shall have an aggregate Adjusted Capital Account Balance with respect
to such Common Units in an amount equal to: (x) the Adjusted Capital Account Balance of the LTIP
Units of such LTIP Unitholder (determined pursuant to the applicable subsection of this Section
4.07 immediately prior to conversion or redemption), minus (y) the Forfeited Capital Account (if
any), and such holder of Common Units shall have all of the rights of holders of Common Units as
set forth in this Agreement. Immediately upon conversion or Redemption of any LTIP Units pursuant
to this Section 4.07, the aggregate Forfeited Capital Account (if any) with respect to all LTIP
Units being converted or redeemed shall be reallocated among the Capital Accounts of the holders of
Common Units immediately subsequent to such conversion or redemption on a pro rata basis, in
proportion to the Adjusted Capital Account Balances of all such Common Units immediately subsequent
to such conversion or redemption. Any Common Units received upon the conversion or Redemption of
LTIP Units pursuant to this Section 4.07 may thereafter be converted into Common Stock or redeemed
pursuant to and subject to the restrictions of Section 8.6 hereof and the holder of such Common
Units shall have the Rights provided in Article VIII hereof with respect to holders of Common
Units.

          Section 4.08. No Interest; No Return. No Partner shall be entitled to interest on its Capital
Contribution or on such Partner’s Capital Account. Except as provided herein or by law, no Partner
shall have any right to demand or receive the return of its Capital Contribution from the
Partnership.

          Section 4.09. Other Contribution Provisions. If any Partner is admitted to the Partnership and
is given a Capital Account in exchange for services rendered to the Partnership, unless otherwise
determined by the General Partner in its sole and absolute discretion, such transaction shall be
treated by the Partnership and the affected Partner as if the Partnership had compensated such
partner in cash and such Partner had contributed the cash to the capital of the Partnership. In
addition, with the consent of the General Partner, one or more Limited Partners may enter into
contribution agreements with the Partnership which have the effect of providing a guarantee of
certain obligations of the Partnership.

          Section 4.10. Not Publicly Traded. The General Partner, on behalf of the Partnership, shall
use its best efforts not to take any action which would result in the Partnership being a “publicly
traded partnership” under and as such term is defined in Code Section 7704(b), and by reason
thereof, taxable as a corporation.

40

 

ARTICLE V

DISTRIBUTIONS

          Section 5.01. Requirement and Characterization of Distributions. Subject to the terms of any
Partnership Unit Designation, the General Partner shall cause the Partnership to distribute at
least quarterly all, or such portion as the General Partner may in its sole and absolute discretion
determine, of Available Cash generated by the Partnership during such quarter to the Holders of
Partnership Units on such Partnership Record Date with respect to such quarter: (1) first, with
respect to any Partnership Interests that are entitled to any preference in distribution, in
accordance with the rights of such class(es) of Partnership Interests (and, within such class(es),
pro rata in proportion to the respective Percentage Interests on such Partnership Record Date) and
(2) second, with respect to any Partnership Interests that are not entitled to any preference in
distribution, in accordance with the rights of such class of Partnership Interests (and, within
such class, pro rata in proportion to the respective Percentage Interests on such Partnership
Record Date).

          The General Partner in its sole and absolute discretion may distribute to the Holders
Available Cash on a more frequent basis and provide for an appropriate Partnership Record Date.
Notwithstanding anything herein to the contrary, the General Partner shall make such reasonable
efforts, as determined by it in its sole and absolute discretion and consistent with its
qualification as a REIT, to cause the Partnership to distribute sufficient amounts to enable the
General Partner to pay stockholder dividends that will (a) satisfy the requirements for its
qualification as a REIT under the Code and Regulations (the “REIT Requirements”) and (b) except to
the extent otherwise determined by the General Partner, in its sole and absolute discretion, avoid
any federal income or excise tax liability of the General Partner.

          Section 5.02. Interests in Property not Held Through the Partnership. To the extent amounts
distributed by the Partnership are attributable to amounts received from a property in which the
General Partner or any Affiliate of the General Partner holds a direct or indirect interest (other
than through the Partnership) (an “Outside Interest”), (i) such amounts distributed to the General
Partner will be reduced so as to take into account amounts received pursuant to the Outside
Interest and (ii) the amounts distributed to the Limited Partners will be increased to the extent
necessary so that the overall effect of the distribution combined with any amount so received
pursuant to the Outside Interest will provide the same aggregate distributions that would have been
distributed had such Outside Interest been held through the Partnership.

          Section 5.03. Distributions In-Kind. No right is given to any Partner to demand and receive
property other than cash as provided in this Agreement. The General Partner may determine, in its
sole and absolute discretion, to make a distribution in-kind of Partnership assets to the Holders,
and such assets shall be distributed in such a fashion as to ensure that the fair market value is
distributed and allocated in accordance with Articles V, VI, X and XIII hereof.

          Section 5.04. Amounts Withheld. All amounts withheld pursuant to the Code or any provisions of
any state or local tax law and Section 10.04 hereof with respect to any allocation, payment or
distribution to any Holder shall be treated as amounts paid or distributed to such Holder pursuant
to Section 5.01 hereof for all purposes under this Agreement.

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          Section 5.05. Distributions Upon Liquidation. Notwithstanding the other provisions of this
Article V, net proceeds from a Terminating Capital Transaction, and any other cash received or
reductions in reserves made after commencement of the liquidation of the Partnership, shall be
distributed to the Holders in accordance with Section 13.02 hereof.

          Section 5.06. Distributions to Reflect Issuance of Additional Partnership Units.
Notwithstanding Section 7.03(b) hereof, if the Partnership issues additional Partnership Units
pursuant to the provisions of Article IV hereof, subject to Section 7.03(d) hereof, the General
Partner is hereby authorized to make such revisions to this Article V as it determines are
necessary or desirable to reflect the issuance of such additional Partnership Units, including,
without limitation, making preferential distributions to certain classes of Partnership Units.

          Section 5.07. Restricted Distributions. Notwithstanding any provision to the contrary
contained in this Agreement, neither the Partnership nor the General Partner, on behalf of the
Partnership, shall make a distribution to any Holder on account of its Partnership Interest or
interest in Partnership Units if such distribution would violate Section 17-607 or 17-804 of the
Act or other applicable law.

ARTICLE VI

ALLOCATIONS

          Section 6.01. Timing and Amount of Allocations of Net Income and Net Loss. Net Operating
Income, Net Operating Loss, Net Property Gain and Net Property Loss of the Partnership (and all
other items of income, gain, loss and deduction) shall be determined and allocated with respect to
each Partnership Year of the Partnership as of the end of each such Partnership Year (or other
applicable period or portion thereof). Except as otherwise provided in this Article VI, and subject
to Section 11.06(c) hereof, an allocation to a Holder of a share of Net Operating Income, Net
Operating Loss, Net Property Gain and Net Property Loss shall be treated as an allocation of the
same share of each item of income, gain, loss or deduction that is taken into account in computing
Net Operating Income, Net Operating Loss, Net Property Gain and Net Property Loss.

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

                    (1) First, to the Partners, until the cumulative Net Operating Income allocated pursuant to
this Section 6.01(a)(1) for the current and all prior periods equals the cumulative Net Operating
Loss allocated pursuant to Section 6.01(b)(2) hereof for all prior periods, with such allocation
being made among the Partners in the same ratio and reverse order that such Net Operating Loss was
allocated to the Partners pursuant to Section 6.01(b)(2) hereof (and, in the event of a shift of a
Partner’s interest in the Partnership, among the Partners in a manner that most equitably reflects
the varying interests of the Partners, including the successors in interest to the Partners as
determined by the General Partner upon advice of the Partnership’s tax counsel or accountants), and

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                    (2) Thereafter, the balance of such Net Operating Income, if any, shall be allocated among the
Partners in accordance with their respective Percentage Interests.

          (b) Net Operating Loss. Except as otherwise provided herein, Net Operating Loss of
the Partnership for each Partnership Year (or other applicable period) shall be allocated as
follows:

               (1) To the Partners in accordance with their respective Percentage Interests.

               (2) Notwithstanding Section 6.01(b)(1) hereof, to the extent any Net Operating Loss otherwise
allocable to a Partner under Section 6.01(b)(1) hereof would cause such Partner to have a deficit
Modified Adjusted Capital Account balance as of the end of the Partnership Year (or other
applicable period) to which such Net Operating Loss relates, such Net Operating Loss shall not be
allocated to such Partner and instead shall be allocated to the other Partners as follows: (x)
first, pro rata in accordance with their relative Percentage Interests until the balances of the
Modified Adjusted Capital Accounts of all the Partners other than the General Partner shall be
zero, (y) second, to the General Partner, until the cumulative amount of Net Operating Loss
allocated to the General Partner under this clause (y) and under clause (y) of Section 6.02(b)(2)
(and not previously reversed with allocations of Net Operating Income under Section 6.01(a)(1) or
Net Property Gain under Section 6.02(a)(1)) is equal to the excess, if any, of the Partnership
Recourse Debt Amount over the Aggregate LP Recourse Amount, and (z) then, to the Recourse Partners
pro rata in accordance with their relative LP Recourse Amounts.

          6.02. Allocation of Net Property Gain and Net Property Loss.

          Net Property Gain and Net Property Loss shall be allocated as follows:

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

                    (1) First, to the Partners, until the cumulative Net Property Gain allocated pursuant to this
Section 6.02(a)(1) for the current and all prior periods equals the cumulative Net Property Loss
allocated pursuant to subparagraph Section 6.02(b)(2) hereof for all prior periods, with such
allocations being made among the Partners in the same ratio and reverse order that such Net
Property Loss was allocated to the Partners pursuant to Section 6.02(b)(2) hereof (and, in the
event of a shift of a Partner’s interest in the Partnership, among the Partners in a manner that
most equitably reflects the varying interests of the Partners, including the successors in interest
to the Partners), and

                    (2) Thereafter, the balance of such Net Property Gain, if any, shall be allocated among
the Partners in accordance with their respective Percentage Interests.

          (b) Net Property Loss. Except as otherwise provided herein, Net Property Loss of the
Partnership for each fiscal year or other applicable period shall be allocated as follows:

               (1) To the Partners in accordance with their respective Percentage Interests.

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               (2) Notwithstanding Section 6.02(b)(1) hereof, to the extent any Net Property Loss otherwise
allocable to a Partner under Section 6.02(b)(1) hereof would cause such Partner to have a deficit
Modified Adjusted Capital Account balance as of the end of the Partnership Year (or other
applicable period) to which such Net Property Loss relates, such Net Property Loss shall not be
allocated to such Partner and instead shall be allocated to the other Partners as follows: (x)
first, pro rata in accordance with their relative Percentage Interests until the balances of the
Modified Adjusted Capital Accounts of all the Partners other than the General Partner shall be
zero, (y) second, to the General Partner, until the cumulative amount of Net Property Loss
allocated to the General Partner under this clause (y) and under clause (y) of Section 6.01(b)(2)
(and not previously reversed with allocations of Net Property Gain under Section 6.02(a)(1) or Net
Operating Income under Section 6.01(a)(1)) is equal to the excess, if any, of the Partnership
Recourse Debt Amount over the Aggregate LP Recourse Amount, and (z) then, to the Recourse Partners
pro rata in accordance with their relative LP Recourse Amounts.

          (c) Special Allocation to Holders of LTIP Units.

               Notwithstanding any other provision of this Section 6.02 (and after taking into account any
allocations required by Section 6.03 hereof), in the year in which the Partnership sells or
otherwise disposes of all or substantially all of its assets in a single transaction or a series of
related transactions, and upon the occurrence of any of the events described in Section 6.02(d)
hereof, Net Property Gain shall first be allocated to the holders of LTIP Units, pro rata in
proportion to the amount by which the Adjusted Capital Account Balance attributable to each LTIP
Unit is less than the Target Balance (as defined below) (such allocation to be made pari passu
within each Series, except as provided below, and if there are multiple series of LTIP Units that
have economic preferences that differ, then the allocation shall take such preferences into
account, including making allocations to achieve the Target Balance for LTIP Unitholders of one
Series before another Series receives an allocation, with the LTIP Units owned by any LTIP
Unitholder within a Series whose Conversion Percentage has increased faster than another LTIP
Unitholder in such Series (or faster than other LTIP Units in such Series owned by such LTIP
Unitholder) being deemed to be a separate Series for purposes of this Agreement, including this
Section 6.02(c)) until the Capital Account balance attributable to each such LTIP Unit is equal to
the amount (the “Target Balance”) obtained by dividing: (A) the aggregate Adjusted Capital Account
Balance attributable to the Common Units outstanding (including any other Partnership Units that
are then convertible into Common Units) by (B) the number of such Common Units outstanding. If Net
Property Gain is insufficient to make the full allocation provided in the preceding sentence, then,
in lieu of such special allocation of Net Property Gain provided in the preceding sentence, items
of gross capital gain (as computed for book purposes) shall be allocated to the holders of LTIP
Units as necessary to make such full allocation and if such gross items are insufficient to make
the full required allocation, items of gross capital loss (as computed for book purposes), shall be
allocated pro rata with respect to such Common Units to the extent necessary to cause the Target
Balance to equal the Adjusted Capital Account Balance with respect to each such LTIP Unit. The
allocations pursuant to this paragraph (c) shall be made after the allocation of Net Operating
Income or Net Operating Loss pursuant to Section 6.01 hereof for the applicable period in which
such sale or other disposition (or other event described in Section 6.02(d) hereof) occurs. For
purposes of this clause (i) of this Section 6.02(c) the definition of “all or substantially all”
means assets representing not less

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than 95% of the aggregate fair market value of the assets that are held by the Partnership at
such time.

          (d) Book-Up and Capital Account Adjustments. On any day on which (i) any Series of
LTIP Units are redeemed or converted into Common Stock or Common Units (such conversion to be
treated as a contribution of Units under the Gross Assets Value definition), (ii) any Series of
LTIP Units is issued, or (iii) at the election of the General Partner, upon the occurrence of any
other event pursuant to which an adjustment of Gross Asset Value is permitted pursuant to either
the definition of Gross Asset Value or any other provision of the Regulations (including Regulation
Section 1.704-1(b)(2)(iv)(f) or other applicable Regulations), the Partnership shall adjust the
Gross Asset Values of all Partnership assets to equal their respective gross fair market values and
shall allocate the amount of such adjustment as Net Property Gain or Net Property Loss pursuant to
Section 6.02(c) hereof, with the result that, to the maximum extent possible, such Net Property
Gain or Net Property Loss shall be allocated in such a manner that after such allocation the
Adjusted Capital Account Balances of the Partners are in proportion to their Percentage
Interests(in the case of clause (ii) above, without taking any newly-issued LTIP Units into
account), with such allocation being made pro rata among the Partners taking into account the
allocation rules of Section 6.02(c).

          (e) Allocations to Reflect Issuance of Additional Partnership Units. Notwithstanding
Section 7.03(b) hereof, if the Partnership issues additional Partnership Units pursuant to the
provisions of Article IV hereof, the General Partner is hereby authorized to make such revisions to
this Section 6.02 as it determines are necessary or desirable to reflect the terms of the issuance
of such additional Partnership Units.

          (f) Partnership Status. The Partners intend that the Partnership be treated as a
partnership for tax purposes and the General Partner shall not elect to treat the Partnership as a
corporation.

          Section 6.03 Additional Allocation Provisions. Notwithstanding the foregoing provisions of
this Article VI:

               (a) Regulatory Allocations.

               (i) Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f),
notwithstanding the provisions of Section 6.02 hereof, or any other provision of this Article VI,
if there is a net decrease in Partnership Minimum Gain during any Partnership Year, each Holder
shall be specially allocated items of Partnership income and gain for such year (and, if
necessary, subsequent years) in an amount equal to such Holder’s share of the net decrease in
Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations
pursuant to the previous sentence shall be made in proportion to the respective amounts required
to be allocated to each Holder pursuant thereto. The items to be allocated shall be determined in
accordance with Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 6.03(a)(i) is
intended to qualify as a “minimum gain chargeback” within the meaning of Regulations Section
1.704-2(f) and shall be interpreted consistently therewith.

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               (ii) Partner Minimum Gain Chargeback. Except as otherwise provided in Regulations Section
1.704-2(i)(4) or in Section 6.03(a)(i) hereof, if there is a net decrease in Partner Minimum Gain
attributable to a Partner Nonrecourse Debt during any Partnership Year, each Holder who has a
share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in
accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of
Partnership income and gain for such year (and, if necessary, subsequent years) in an amount
equal to such Holder’s share of the net decrease in Partner Minimum Gain attributable to such
Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4).
Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each General Partner, Limited Partner and other Holder
pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations
Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 6.03(a)(ii) is intended to qualify as a
“chargeback of partner nonrecourse debt minimum gain” within the meaning of Regulations Section
1.704-2(i) and shall be interpreted consistently therewith.

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

               (iv) Qualified Income Offset. If any Holder unexpectedly receives an adjustment, allocation
or distribution described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of
Partnership income and gain shall be allocated, in accordance with Regulations Section
1.704-1(b)(2)(ii)(d), to such Holder in an amount and manner sufficient to eliminate, to the
extent required by such Regulations, the Adjusted Capital Account Deficit of such Holder as
quickly as possible. It is intended that this Section 6.03(a)(iv) qualify and be construed as a
“qualified income offset” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.

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

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

46

 

Holders to whom such distribution was made if Regulations Section 1.704-1(b)(2)(iv)(m)(4)
applies.

               (vii) Curative Allocations. The allocations set forth in Sections 6.03(a)(i), (ii), (iii),
(iv), (v), and (vi) hereof (the “Regulatory Allocations”) are intended to comply with certain
regulatory requirements, including the requirements of Regulations Sections 1.704-1(b) and
1.704-2. Notwithstanding the provisions of Sections 6.01 and 6.02 hereof, the Regulatory
Allocations shall be taken into account in allocating other items of income, gain, loss and
deduction among the Holders of Partnership Units so that, to the maximum extent possible without
violating the requirements giving rise to the Regulatory Allocations, the Adjusted Capital
Account Balance properly allocable to each Partnership Unit would be the same (or in the same
ratio to other Partnership Units) as if the Regulatory Allocations were not required to be made.

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

          Section 6.04 Tax Allocations.

               (a) In General. Except as otherwise provided in this Section 6.04, for income tax purposes
under the Code and the Regulations, each Partnership item of income, gain, loss and deduction as
determined for federal income tax purposes (as distinct from the determination of such items for
“book purposes” pursuant to Section 704(b) of the Code) (collectively, “Tax Items”), shall be
allocated among the Holders of Partnership Units in the same manner as its correlative item of
“book” income, gain, loss or deduction(as determined for purposes of Code Section 704(b)) is
allocated pursuant to Sections 6.01, 6.02 and 6.03 hereof.

               (b) Allocations Respecting Section 704(c) Revaluations. Notwithstanding Section 6.04(a)
hereof, Tax Items with respect to (i) Property that is contributed to the Partnership with a Gross
Asset Value that varies from its basis in the hands of the contributing Partner immediately
preceding the date of contribution and (ii) all Partnership Property that, as a result of an
adjustment to the Gross Asset Value of such Property pursuant to the definition of “Gross Asset
Value” has a Gross Asset Value that varies from its basis in the hands of the Partnership
immediately after such adjustment, shall be allocated among the Holders of Partnership Units for
income tax purposes pursuant to Regulations promulgated under Code Section 704(c) so as to take
into account such variation. The Partnership shall account for such variation under any method
permitted under Code Section 704(c) and the applicable Regulations as chosen by the General
Partner, including, without limitation, the “remedial allocation method” as described in
Regulations Section 1.704-3(d); provided, however, that the “traditional method” shall be used for
(A) any assets acquired by the Partnership pursuant to merger and other contracts and agreements
entered into by the Partnership or the General Partner in connection with the IPO (or thereafter
from any Limited Partner or its Affiliates, for properties that were owned by them as of the
Effective Date but that were not contributed to the Partnership

47

 

by them on such date for any reason) and (B) accounting for any variation resulting from an
adjustment described in preceding clause (ii) of this Section 6.04(b).

ARTICLE VII

MANAGEMENT AND OPERATIONS OF BUSINESS

          Section 7.01. Management.

               (a) Except as otherwise expressly provided in this Agreement, all management powers over the
business and affairs of the Partnership are and shall be exclusively vested in the General Partner,
and no Limited Partner shall have any right to participate in or exercise control or management
power over the business and affairs of the Partnership. The General Partner may not be removed by
the Limited Partners with or without cause, except with the consent of the General Partner. In
addition to the powers now or hereafter granted to a general partner of a limited partnership under
applicable law or that are granted to the General Partner under any other provision of this
Agreement, the General Partner, subject to the other provisions hereof including Section 7.03
hereof, 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 3.02 hereof
and to effectuate the purposes set forth in Section 3.01 hereof, including, without limitation:

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

               (ii) the making of tax, regulatory and other filings or elections, or rendering of periodic
or other reports to governmental or other agencies having jurisdiction over the business or
assets of the Partnership, the registration of any class of securities of the Partnership under
the Securities Act or the Exchange Act and the listing of any debt securities of the Partnership
on any exchange;

               (iii) subject to Section 11.02 hereof, the acquisition, sale, lease, transfer, exchange or
other disposition of any, all or substantially all of the assets of the Partnership (including,
but not limited to, the exercise or grant of any conversion, option, privilege or subscription
right or any other right available in connection with any assets at any time held by the
Partnership) or the merger, consolidation, reorganization or other combination of the Partnership
with or into another entity;

48

 

               (iv) the mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership,
the use of the assets of the Partnership (including, without limitation, cash on hand) for any
purpose consistent with the terms of this Agreement and on any terms that it sees fit, including,
without limitation, the financing of the operations and activities of the General Partner, the
Partnership or any of the Partnership’s Subsidiaries, the lending of funds to other Persons
(including, without limitation, the Partnership’s Subsidiaries) and the repayment of obligations
of the Partnership, its Subsidiaries and any other Person in which the Partnership has an equity
investment, and the making of capital contributions to and equity investments in the
Partnership’s Subsidiaries;

               (v) the use of the assets of the Partnership (including, without limitation, cash on hand)
for any purpose consistent with the terms of this Agreement and on any terms it sees fit,
including, without limitation, the financing of the conduct of the operations of the General
Partner, the Partnership or any of the Partnership’s Subsidiaries, the lending of funds to other
Persons (including, without limitation, the General Partner and its Subsidiaries and the
Partnership’s Subsidiaries) and the repayment of obligations of the Partnership and its
Subsidiaries and any other Person in which the Partnership has an equity investment and the
making of capital contributions to its Subsidiaries;

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

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

               (viii) the distribution of Partnership cash or other Partnership assets in accordance with
this Agreement, the holding, management, investment and reinvestment of cash and other assets of
the Partnership and the collection and receipt of revenues, rents and income of the Partnership;

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

               (x) the formation of, or acquisition of an interest in, and the contribution of property to,
any further limited or general partnerships, limited liability companies, REITs, corporations,
entities that are treated as REITs, “taxable REIT subsidiaries” or foreign corporations for
federal income tax purposes, joint ventures or other relationships that the General Partner deems
desirable (including, without limitation, the acquisition of interests in, and the contributions
of property to, any Subsidiary and any other

49

 

Person in which it has an equity investment from time to time); provided, however, that as
long as the General Partner has determined to continue to qualify as a REIT, the General Partner
may not engage in any such formation, acquisition or contribution that would cause it to fail to
qualify as a REIT within the meaning of Code Section 856(a) (so long as the General Partner
desires to maintain its qualification as a REIT);

               (xi) the filing of applications, communicating and otherwise dealing with any and all
governmental agencies having jurisdiction over, or in any way affecting, the Partnership’s assets
or any other aspect of the Partnership business;

               (xii) the control of any matters affecting the rights and obligations of the Partnership,
including the settlement, compromise, submission to arbitration or any other form of dispute
resolution, or abandonment, of any claim, cause of action, liability, debt or damages, due or
owing to or from the Partnership, the commencement or defense of suits, legal proceedings,
administrative proceedings, arbitrations or other forms of dispute resolution, and the
representation of the Partnership in all suits or legal proceedings, administrative proceedings,
arbitrations or other forms of dispute resolution, the incurring of legal expense, and the
indemnification of any Person against liabilities and contingencies to the extent permitted by
law;

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

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

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

               (xvi) 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;

               (xvii) 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;

               (xviii) 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;

               (xix) the making, execution, delivery and performance of any and all deeds, leases, notes,
deeds to secure Debt, mortgages, deeds of trust, security agreements,

50

 

conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal
instruments or agreements in writing necessary or appropriate in the judgment of the General
Partner for the accomplishment of any of the powers of the General Partner enumerated in this
Agreement;

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

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

               (xxii) the distribution of cash to acquire Partnership Units held by a Limited Partner in
connection with a Limited Partner’s exercise of its Redemption right under Section 8.06 hereof;

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

               (xxiv) the determination regarding whether a payment to a Partner who exercises its
Redemption Right under Section 8.06 hereof that is assumed by the General Partner will be paid in
the form of the Cash Amount or the REIT Shares Amount, except as such determination may be
limited by Section 8.06 hereof;

               (xxv) an election to dissolve the Partnership pursuant to Section 13.01(d) hereof;

               (xxvi) doing any and all acts and things necessary or prudent to ensure that the Partnership
will not be classified as a “publicly traded partnership” taxable as a corporation under Code
Section 7704; and

               (xxvii) the taking of any action necessary or appropriate to enable the General Partner to
qualify as a REIT (so long as the General Partner desires to maintain its qualification as a
REIT).

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               (b) Each of the Limited Partners agrees that, except as provided in Section 7.03 hereof, the
General Partner is authorized to execute, deliver and perform the above-mentioned agreements and
transactions on behalf of the Partnership without any further act, approval or vote of the
Partners, notwithstanding any other provision of this Agreement, the Act or any applicable law,
rule or regulation.

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

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

          Section 7.02. Certificate of Limited Partnership. To the extent that such action is determined
by the General Partner to be reasonable and necessary or appropriate, the General Partner shall
file amendments to and restatements of the Certificate and do all the things to maintain the
Partnership as a limited partnership (or a partnership in which the limited partners have limited
liability) under the laws of the State of Delaware and each other state, the District of Columbia
or any other jurisdiction, in which the Partnership may elect to do business or own property.
Except as otherwise required under the Act, the General Partner shall not be required, before or
after filing, to deliver or mail a copy of the Certificate or any amendment thereto to any Limited
Partner. The General Partner shall use all reasonable efforts to cause to be filed such other
certificates or documents as may be reasonable and necessary or appropriate for the formation,
continuation, qualification and operation of a limited partnership (or a partnership in which the
limited partners have limited liability to the extent provided by applicable law) in the State of
Delaware and any other state, or the District of Columbia or other jurisdiction, in which the
Partnership may elect to do business or own property.

          Section 7.03. Restrictions on General Partner’s Authority.

               (a) The General Partner may not take any action in contravention of an express prohibition or
limitation of this Agreement without the written consent of a Majority in Interest of the Outside
Limited Partners and may not (1) perform any act that would subject a Limited Partner to liability
as a general partner in any jurisdiction or any other liability except as provided herein or under
the Act; or (2) enter into any contract, mortgage, loan or other agreement that expressly prohibits
or restricts (a) the General Partner or the Partnership from performing its specific obligations
under Section 8.06 hereof in full or (b) a Limited Partner from exercising its rights under Section
8.06 hereof to effect a Redemption in full, except, in

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either case, with the written consent of such Limited Partner affected by the prohibition or
restriction.

               (b) The General Partner shall not, without the written consent of a Majority in Interest of
the Outside Limited Partners, except as provided in this Agreement, including Sections 4.03(a),
5.06, 6.02(e) and 7.03(c) hereof, amend, modify or terminate this Agreement.

               (c) Notwithstanding Sections 7.03(b), 8.07 and 14.02 hereof, the General Partner shall have
the exclusive power, without the prior consent of the Limited Partners, to amend this Agreement as
may be required to facilitate or implement any of the following purposes:

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

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

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

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

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

               (vi) to modify either or both the manner in which items of Net Income or Net Loss are
allocated pursuant to Article VI hereof or the manner in which Capital Accounts are adjusted,
computed or maintained (but only to the extent set forth in the definition of “Capital Account”
or contemplated by the Code or the Regulations);

               (vii) to issue additional Partnership Interests in accordance with Section 4.03 hereof and
to set forth in this Agreement the designations, rights, powers, duties and preferences of the
holders of any additional Partnership Units issued pursuant to this Agreement;; and

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               (viii) to reflect any other modification to this Agreement as is reasonably necessary for
the business or operations of the Partnership or the General Partner and which does not violate
Section 7.03(d) hereof.

          The General Partner will provide notice to the Limited Partners whenever any action under this
Section 7.03(c) is taken.

               (d) Notwithstanding Sections 7.03(b) and 7.03(c) hereof, this Agreement shall not be amended,
and no action may be taken by the General Partner, without the consent of each Partner adversely
affected thereby, if such amendment or action would (i) convert a Limited Partner Interest in the
Partnership into a General Partner Interest (except as a result of the General Partner acquiring
such Partnership Interest), (ii) modify the limited liability of a Limited Partner, (iii) alter the
rights of any Partner to receive the distributions to which such Partner is entitled, pursuant to
Article V hereof or Section 13.02(a)(iv) hereof, or alter the allocations specified in Article VI
hereof (except, in any case, as permitted pursuant to Sections 4.03, 5.06, 7.03(c) and Article VI
hereof or any other provision of this Agreement), (iv) alter or modify the Redemption rights, Cash
Amount or REIT Shares Amount as set forth in Section 8.06 hereof, or amend or modify any related
definitions, (v) alter or modify Section 11.02 hereof or (vi) amend this Section 7.03(d). Further,
no amendment may alter the restrictions on the General Partner’s authority set forth elsewhere in
this Section 7.03 without the consent specified therein. Any such amendment or action consented to
by any Partner shall be effective as to that Partner, notwithstanding the absence of such consent
by any other Partner.

          Section 7.04. Reimbursement of the General Partner.

               (a) Except as provided in this Section 7.04 and elsewhere in this Agreement (including the
provisions of Articles V and VI hereof regarding distributions, payments and allocations to which
it may be entitled), the General Partner shall not be compensated for its services as general
partner of the Partnership.

               (b) The Partnership shall be responsible for and shall pay all expenses relating to the
Partnership’s and the General Partner’s organization, the ownership of their assets and their
operations. The General Partner is hereby authorized to pay compensation for accounting,
administrative, legal, technical, management and other services rendered to the Partnership. Except
to the extent provided in this Agreement, the General Partner and its Affiliates shall be
reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole
and absolute discretion, for all expenses that the General Partner and its Affiliates incur
relating to the ownership and operation of, or for the benefit of, the Partnership (including,
without limitation, administrative expenses); provided, that the amount of any such reimbursement
shall be reduced by any interest earned by the General Partner with respect to bank accounts or
other instruments or accounts held by it on behalf of the Partnership. The Partners acknowledge
that all such expenses of the General Partner are deemed to be for the benefit of the Partnership.
Such reimbursement shall be in addition to any reimbursement made as a result of indemnification
pursuant to Section 7.07 hereof. 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 sole and
absolute discretion deems fair and reasonable. All payments and

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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) If the General Partner shall elect to purchase from its stockholders REIT Shares for the
purpose of delivering such REIT Shares to satisfy an obligation under any dividend reinvestment
program adopted by the General Partner, any employee stock purchase plan adopted by the General
Partner or any similar obligation or arrangement undertaken by the General Partner in the future or
for the purpose of retiring such REIT Shares, the purchase price paid by the General Partner for
such REIT Shares and any other expenses incurred by the General Partner in connection with such
purchase shall be considered expenses of the Partnership and shall be advanced to the General
Partner or reimbursed to the General Partner, subject to the condition that: (1) if such REIT
Shares subsequently are sold by the General Partner, the General Partner shall pay or cause to be
paid to the Partnership any proceeds received by the General Partner for such REIT Shares (which
sales proceeds shall include the amount of dividends reinvested under any dividend reinvestment or
similar program; provided, that a transfer of REIT Shares for Partnership Units pursuant to Section
8.06 hereof would not be considered a sale for such purposes); and (2) if such REIT Shares are not
retransferred by the General Partner within 30 days after the purchase thereof, or the General
Partner otherwise determines not to retransfer such REIT Shares, the General Partner shall cause
the Partnership to redeem a number of Partnership Units held by the General Partner equal to the
number of such REIT Shares multiplied by a fraction, the numerator of which is 1.00 and the
denominator of which is the Adjustment Factor (in which case such advancement or reimbursement of
expenses shall be treated as having been made as a distribution in redemption of such number of
Partnership Units held by the General Partner).

               (d) As set forth in Section 4.03 hereof, the General Partner shall be treated as having made
a Capital Contribution in the amount of all expenses that it incurs relating to the its offering of
REIT Shares, Preferred Shares, Junior Shares or New Securities.

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

          Section 7.05. Outside Activities of the General Partner. Without the consent of a Majority in
Interest of the Outside Limited Partners, the General Partner shall not directly or indirectly
enter into or conduct any business, other than in connection with (a) the ownership, acquisition
and disposition of Partnership Interests, (b) the management of the business of the Partnership,
(c) the operation of the General Partner as a reporting company with a class of securities
registered under the Exchange Act, (d) financing or refinancing of any type related to the
Partnership or its assets or activities, (e) any of the foregoing activities as they relate to a
Subsidiary of the Partnership, and (f) such activities as are incidental thereto. Nothing contained
herein shall be deemed to prohibit the General Partner from (i) executing guarantees of Partnership
Debt for which it would otherwise be liable in its capacity as General Partner, (ii) holding such
bank accounts or similar instruments or accounts in its name as it deems

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necessary to carry out its responsibilities and purposes as contemplated under this Agreement
and its organizational documents (provided, that accounts held on behalf of the Partnership to
permit the General Partner to carry out its responsibilities under this Agreement shall be
considered to belong to the Partnership and the interest earned thereon shall, subject to Section
7.04(b) hereof, be applied for the benefit of the Partnership), (iii) acquiring Qualified Assets,
or (iv) holding or acquiring assets in its own name or otherwise other than through the Partnership
so long as the General Partner takes commercially reasonable measures to ensure that the economic
benefits and burdens of such assets are otherwise vested in the Partnership and such that the
Partnership is deemed to be the owner of such assets for federal income tax purposes.

          Section 7.06. Contracts with Affiliates.

               (a) The Partnership may lend or contribute funds or other assets to its Subsidiaries or other
Persons in which it or the General Partner has an equity investment, and such Persons may borrow
funds from the Partnership, on terms and conditions established in the sole and absolute discretion
of the General Partner. The foregoing authority shall not create any right or benefit in favor of
any Subsidiary or any other Person.

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

               (c) Except as expressly permitted by this Agreement, neither the General Partner nor any of
its Affiliates shall sell, transfer or convey any property to, 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 of the
Limited Partners, may propose and adopt on behalf of the Partnership employee benefit plans funded
by the Partnership for the benefit of employees of the General Partner, the Partnership,
Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed,
directly or indirectly, for the benefit of the Partnership or any of the Partnership’s
Subsidiaries.

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

          Section 7.07. Indemnification.

               (a) To the fullest extent permitted by applicable law, the Partnership shall indemnify each
Indemnitee from and against any and all losses, claims, damages, liabilities (whether joint or
several), expenses (including, without limitation, attorney’s fees and other legal fees and
expenses), judgments, fines, settlements and other amounts (“Damages”) arising from any and all
claims, demands, actions, suits or proceedings, civil, criminal, administrative or

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investigative, that relate to the operations of the Partnership and its Subsidiaries (each, a
“Proceeding”) as set forth in this Agreement in which such Indemnitee may be involved, or is
threatened to be involved, as a party or otherwise; provided, however, that the Partnership shall
not indemnify an Indemnitee (1) for willful misconduct or a knowing violation of the law, (2) for
any transaction for which such Indemnitee received an improper personal benefit in violation or
breach of any provision of this Agreement, or (3) if, in the case of any criminal proceeding, the
Indemnitee had reasonable cause to believe that the act or omission was unlawful. Without
limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a
loan guaranty or otherwise, for any indebtedness of the Partnership or any Subsidiary of the
Partnership (including, without limitation, any indebtedness which the Partnership or any
Subsidiary of the Partnership has assumed or taken subject to), and the General Partner is hereby
authorized and empowered, on behalf of the Partnership, to enter into one or more indemnity
agreements consistent with the provisions of this Section 7.07 in favor of any Indemnitee having or
potentially having liability for any such indebtedness. The termination of any Proceeding by
judgment, order or settlement does not create a presumption that the Indemnitee did not meet the
requisite standard of conduct set forth in this Section 7.07(a). The termination of any Proceeding
by conviction of an Indemnitee or upon a plea of nolo contendere or its equivalent by an
Indemnitee, or an entry of an order of probation against an Indemnitee prior to judgment, does not
create a presumption that such Indemnitee acted in a manner contrary to that specified in this
Section 7.07(a) with respect to the subject matter of such Proceeding. Any indemnification pursuant
to this Section 7.07 or pursuant to indemnity agreements permitted by this Section 7.07, shall be
made only out of the assets of the Partnership and any insurance proceeds from the liability policy
covering the General Partner and any Indemnitees, and neither the General Partner nor any Limited
Partner shall have any obligation to contribute to the capital of the Partnership or otherwise
provide funds to enable the Partnership to fund its obligations under this Section 7.07 or under
such indemnity agreements.

               (b) To the fullest extent permitted by law, expenses incurred by an Indemnitee who is a party
to a Proceeding or otherwise subject to or the focus of or is involved in any Proceeding shall be
paid or reimbursed by the Partnership as incurred by the Indemnitee in advance of the final
disposition of the Proceeding upon receipt by the Partnership of (1) a written affirmation by the
Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for
indemnification by the Partnership as authorized in this Section 7.07(b) has been met and (2) a
written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be
determined that the standard of conduct has not been met.

               (c) The indemnification provided by this Section 7.07 shall be in addition to any other rights
to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any
vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who
has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors,
assigns and administrators of the Indemnitee unless otherwise provided in a written agreement with
such Indemnitee or in the writing pursuant to which such Indemnitee is indemnified.

               (d) The Partnership may, but shall not be obligated to, purchase and maintain insurance, on
behalf of any of the Indemnitees and such other Persons as the General Partner shall determine,
against any liability that may be asserted against or expenses that may be

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incurred by such Person in connection with the Partnership’s activities, regardless of whether
the Partnership would have the power to indemnify such Person against such liability under the
provisions of this Agreement.

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

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

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

               (h) The provisions of this Section 7.07 are for the benefit of the Indemnitees, their heirs,
successors, assigns and administrators and shall not be deemed to create any rights for the benefit
of any other Persons. Any amendment, modification or repeal of this Section 7.07 or any provision
hereof shall be prospective only and shall not in any way affect the obligations of the Partnership
or the limitations on the Partnership’s liability to any Indemnitee under this Section 7.07 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.

               (i) If and to the extent any payments to the General Partner pursuant to this Section 7.07
constitute gross income to the General Partner (as opposed to the repayment of advances made on
behalf of the Partnership), such amounts shall be treated as “guaranteed payments” for the use of
capital within the meaning of Code Section 707(c), shall be treated consistently therewith by the
Partnership and all Partners, and shall not be treated as distributions for purposes of computing
the Partners’ Capital Accounts.

               (j) The provisions of this Section 7.07 shall survive the termination of this Agreement.

          Section 7.08. Liability of the General Partner.

               (a) Notwithstanding anything to the contrary set forth in this Agreement, none of the General
Partner, its Affiliates, nor any of their respective officers, trustees, directors,

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stockholders, partners, members, employees, representatives or agents or any officer,
employee, representative or agent of the Partnership and its Affiliates (individually, a “Covered
Person” and collectively, the “Covered Persons”) shall be liable or accountable in damages or
otherwise to the Partnership, any Partners or any Assignees for losses sustained, liabilities
incurred or benefits not derived as a result of errors in judgment or mistakes of fact or law or of
any act or omission if the Covered Person acted in good faith.

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

               (c) Subject to its obligations and duties as General Partner set forth in Section 7.01(a)
hereof, the General Partner may exercise any of the powers granted to it by this Agreement and
perform any of the duties imposed upon it hereunder either directly or by or through its employees
or agents (subject to the supervision and control of the General Partner). The General Partner
shall not be responsible for any misconduct or negligence on the part of any such employee or agent
appointed by it in good faith.

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

               (e) Notwithstanding anything herein to the contrary, except for fraud, willful misconduct or
gross negligence, or pursuant to any express indemnities given to the Partnership by any Partner
pursuant to any other written instrument, no Partner shall have any personal liability whatsoever,
to the Partnership or to the other Partner(s), for the debts or liabilities of the Partnership or
the Partnership’s obligations hereunder, and the full recourse of the other Partner(s) shall be
limited to the interest of that Partner in the Partnership. To the fullest extent permitted by law,
no officer, director or stockholder of the General Partner shall be liable to the Partnership for
money Damages except to the extent that such Damages were proximately caused by such officer’s,
director’s or stockholder’s (1) active and deliberate dishonesty established by a nonappealable
final judgment or (2) actual receipt of an improper benefit or profit in money, property or
services. Without limitation of the foregoing, and except to the extent that such Damages were
proximately caused by such officer’s, director’s or stockholder’s (1) active and deliberate
dishonesty established by a nonappealable final judgment or (2) actual receipt of an improper
benefit or profit in money, property or services, no property or assets of

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any Partner, other than its interest in the Partnership, shall be subject to levy, execution
or other enforcement procedures for the satisfaction of any judgment (or other judicial process) in
favor of any other Partner(s) and arising out of, or in connection with, this Agreement. This
Agreement is executed by the officers of the General Partner solely as officers of the General
Partner and not in their own individual capacities.

               (f) Any amendment, modification or repeal of this Section 7.08 or any provision hereof shall
be prospective only and shall not in any way affect the limitations on the Covered Persons’
liability to the Partnership and the Limited Partners under this Section 7.08 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.

               (g) Each Partner hereby acknowledges and agrees that, whenever in this Agreement the General
Partner is permitted to take any action, make any decision or determination or otherwise vote on or
give its consent to (or any term of similar import with respect to) any action or failure to act,
the General Partner shall be entitled to exercise its sole and absolute discretion in connection
therewith after considering only such interests and factors as it desires and, without limiting the
generality of the foregoing, it is specifically agreed and acknowledged that the General Partner in
taking any action hereunder may consider exclusively its own interests or the interests of any
Affiliate of the General Partner and shall have no duty or obligation to give any consideration to
the interests of or factors affecting the Partnership or any other Partner.

               (h) In accordance with Section 17-1101(d) of the Act, the Partners hereby acknowledge and
agree that the provisions of this Agreement, including the provisions of this Article VII, to the
extent they restrict or eliminate the duties (including fiduciary duties) and liabilities relating
thereto otherwise existing at law or in equity replace completely and absolutely such other duties
(including fiduciary duties) and liabilities relating thereto and further acknowledge and agree
that this Section 7.08 and the other provisions of this Article VII are fundamental elements to the
agreement of the Partners to enter into this Agreement and without such provisions the Partners
would not have entered into this Agreement.

          Section 7.09. 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 that the 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.

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

               (d) Notwithstanding any other provision of this Agreement or the Act, any action of the
General Partner 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 (1) to protect the ability of the General Partner to
continue to qualify as a REIT, (2) for the General Partner otherwise to satisfy the REIT
Requirements, or (3) to avoid the General Partner incurring any taxes under Code Sections 857,
337(d), 1374 or 4981, is expressly authorized under this Agreement and is deemed approved by all of
the Limited Partners.

          Section 7.10. Title to Partnership Assets. Title to Partnership assets, whether real, personal
or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an
entity, and no Partner, individually or collectively with other Partners or Persons, shall have any
ownership interest in such Partnership assets or any portion thereof. Title to any or all of the
Partnership assets may be held in the name of the Partnership, the General Partner or one or more
nominees, as the General Partner may determine, including Affiliates of the General Partner. The
General Partner hereby declares and warrants that any Partnership assets for which legal title is
held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be
held by the General Partner for the use and benefit of the Partnership in accordance with the
provisions of Section 7.05 hereof. Except as provided in Section 7.05 hereof, 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.

          Section 7.11. Reliance by Third Parties. Notwithstanding anything to the contrary in this
Agreement, any Person dealing with the Partnership shall be entitled to assume that the General
Partner has full power and authority, without the consent or approval of any other Partner or
Person, to encumber, sell or otherwise use in any manner any and all assets of the Partnership and
to enter into any contracts on behalf of the Partnership, and take any and all actions on behalf of
the Partnership, and such Person shall be entitled to deal with the General Partner as if it were
the Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner
hereby waives any and all defenses or other remedies that may be available against such Person to
contest, negate or disaffirm any action of the General Partner in connection with any such dealing.
In no event shall any Person dealing with the General Partner or its representatives be obligated
to ascertain that the terms of this Agreement have been complied with or to inquire into the
necessity or expediency of any act or action of the General Partner or its representatives. Each
and every certificate, document or other instrument executed on behalf of the Partnership by the
General Partner or its representatives shall be conclusive evidence in favor of any and every
Person relying in good faith thereon or claiming thereunder that (1) at the time of the execution
and delivery of such certificate, document or instrument, this Agreement was in full force and
effect, (2) the Person executing and delivering such certificate, document or instrument was duly
authorized and empowered to do so for and on behalf of the

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Partnership, and (3) such certificate, document or instrument was duly executed and delivered
in accordance with the terms and provisions of this Agreement and is binding upon the Partnership.

ARTICLE VIII

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

          Section 8.01. Limitation of Liability. The Limited Partners shall have no liability under this
Agreement (other than for breach thereof) except as expressly provided in this Agreement, including
Sections 10.04 and 13.02(d) hereof, or under the Act.

          Section 8.02. Management of Business. No Limited Partner or Assignee (other than the General
Partner, any of its Affiliates or any officer, director, member, employee, partner, agent or
director of the General Partner, the Partnership or any of their Affiliates, in their capacity as
such) shall take part in the operations, management or control (within the meaning of the Act) of
the Partnership’s business, transact any business in the Partnership’s name or have the power to
sign documents for or otherwise bind the Partnership. The transaction of any such business by the
General Partner, any of its Affiliates or any officer, director, member, employee, partner, agent,
representative, stockholder or trustee of the General Partner, the Partnership or any of their
Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations on the
liability of the Limited Partners or Assignees under this Agreement.

          Section 8.03. Outside Activities of Limited Partners. Subject to any agreements entered into
pursuant to Section 7.06(e) hereof and any other agreements entered into by a Limited Partner or
its Affiliates with the General Partner, the Partnership or any Affiliate thereof (including,
without limitation, any employment agreement), any Limited Partner and any Assignee, officer,
director, employee, agent, trustee, Affiliate, member or shareholder of any Limited Partner shall
be entitled to and may have business interests and engage in business activities in addition to
those relating to the Partnership, including business interests and activities that are in direct
or indirect competition with the Partnership or that are enhanced by the activities of the
Partnership. Neither the Partnership nor any Partner shall have any rights by virtue of this
Agreement in any business ventures of any Limited Partner or Assignee. Subject to such agreements,
none of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement
or the partnership relationship established hereby in any business ventures of any other Person
(other than the General Partner, to the extent expressly provided herein), and such Person shall
have no obligation pursuant to this Agreement, subject to Section 7.06(e) hereof and any other
written agreements entered into by a Limited Partner or its Affiliates with the General Partner,
the Partnership or any Affiliate thereof, to offer any interest in any such business ventures to
the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a
character that, if presented to the Partnership, any Limited Partner or such other Person, could be
taken by such Person.

          Section 8.04. Return of Capital. Except pursuant to the rights of Redemption set forth in
Section 8.06 hereof, no Limited Partner shall be entitled to the withdrawal or return of its
Capital Contribution, except to the extent of distributions made pursuant to this Agreement, upon
liquidation of the Partnership as provided herein or upon a merger of the General Partner or a sale
by the General Partner of all or substantially all of its assets pursuant to Section 7.01(a)(iii)

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hereof. Except to the extent provided in Articles V and VI hereof or as otherwise expressly
provided in this Agreement, no Limited Partner or Assignee shall have priority over any other
Limited Partner or Assignee either as to the return of Capital Contributions or as to profits,
losses or distributions.

          Section 8.05. Adjustment Factor. The Partnership shall notify any Limited Partner, on request,
of the then current Adjustment Factor or any change made to the Adjustment Factor.

          Section 8.06. Redemption Rights.

               (a) Subject to the limitations of Section 8.06(e) hereof, on or after the one-year anniversary
of the Effective Date, each Limited Partner shall have the right (subject to the terms and
conditions set forth herein and in any other such agreement, as applicable) to require the
Partnership to redeem all or a portion of the Common Units held by such Limited Partner (such
Common Units being hereafter referred to as “Tendered Units”) in exchange for the Cash Amount (a
“Redemption”), unless the terms of such Common Units or a separate agreement entered into between
the Partnership and the holder of such Common Units provide that such Common Units are not entitled
to a right of Redemption. The Limited Partner who is exercising this right (the “Tendering
Partner”) shall have no right, with respect to any Common Units so redeemed, to receive any
distributions paid on or after the Specified Redemption Date. Any Redemption shall be exercised
pursuant to a Notice of Redemption delivered to the General Partner by the Tendering Partner. The
Cash Amount shall be payable to the Tendering Partner on the Specified Redemption Date.

               (b) Notwithstanding Section 8.06(a) hereof, if a Limited Partner has delivered to the General
Partner a Notice of Redemption, the General Partner may, in its sole and absolute discretion
(subject to the limitations on ownership and transfer of REIT Shares set forth in the Charter),
elect to assume and satisfy the Partnership’s Redemption obligation and acquire some or all of the
Tendered Units from the Tendering Partner in exchange for the REIT Shares Amount (as of the
Specified Redemption Date) and, if the General Partner so elects, the Tendering Partner shall sell
the Tendered Units to the General Partner in exchange for the REIT Shares Amount. In such event,
the Tendering Partner shall have no right to cause the Partnership to redeem such Tendered Units.
The General Partner shall give such Tendering Partner written notice of its election on or before
the close of business on the fifth Business Day after its receipt of the Notice of Redemption.

               (c) The REIT Shares Amount, if applicable, shall be delivered as duly authorized, validly
issued, fully paid and nonassessable REIT Shares, free of any pledge, lien, encumbrance or
restriction, other than those provided in the Charter or the Bylaws of the General Partner, the
Securities Act, relevant state securities or blue sky laws and any applicable registration rights
agreement with respect to such REIT Shares entered into by the Tendering Partner. Notwithstanding
any delay in such delivery (but subject to Section 8.06(e) hereof), the Tendering Partner shall be
deemed the owner of such REIT Shares for all purposes, including without limitation, rights to vote
or consent, and receive dividends, as of the Specified Redemption Date. In addition, the REIT
Shares for which the Partnership Units might be exchanged shall also bear a legend which generally
provides the following:

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Restriction on Ownership and Transfer

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON BENEFICIAL OWNERSHIP AND
CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE, AMONG OTHERS, OF THE CORPORATION’S MAINTENANCE
OF ITS QUALIFICATION AS A REAL ESTATE INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE “CODE”). SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN
THE CORPORATION’S CHARTER, (I) NO PERSON MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF THE
CORPORATION’S COMMON STOCK IN EXCESS OF 9.8 PERCENT (IN VALUE OR NUMBER OF SHARES) OF THE
OUTSTANDING SHARES OF COMMON STOCK OF THE CORPORATION UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN
WHICH CASE THE EXCEPTED HOLDER LIMIT SHALL BE APPLICABLE); (II) NO PERSON MAY BENEFICIALLY OWN OR
CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK OF THE CORPORATION IN EXCESS OF 9.8 PERCENT OF THE VALUE
OF THE TOTAL OUTSTANDING SHARES OF CAPITAL STOCK OF THE CORPORATION, UNLESS SUCH PERSON IS AN
EXCEPTED HOLDER (IN WHICH CASE THE EXCEPTED HOLDER LIMIT SHALL BE APPLICABLE); (III) NO PERSON MAY
BENEFICIALLY OWN OR CONSTRUCTIVELY OWN CAPITAL STOCK THAT WOULD RESULT IN THE CORPORATION BEING
“CLOSELY HELD” UNDER SECTION 856(H) OF THE CODE OR OTHERWISE CAUSE THE CORPORATION TO FAIL TO
QUALIFY AS A REIT; AND (IV) NO PERSON MAY TRANSFER SHARES OF CAPITAL STOCK IF SUCH TRANSFER WOULD
RESULT IN THE CAPITAL STOCK OF THE CORPORATION BEING OWNED BY FEWER THAN 100 PERSONS. ANY PERSON
WHO BENEFICIALLY OWNS OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO BENEFICIALLY OWN OR CONSTRUCTIVELY OWN
SHARES OF CAPITAL STOCK WHICH CAUSES OR WILL CAUSE A PERSON TO BENEFICIALLY OR CONSTRUCTIVELY OWN
SHARES OF CAPITAL STOCK IN EXCESS OR IN VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY
THE CORPORATION. IF ANY RESTRICTION ON TRANSFER OR OWNERSHIP IS VIOLATED, THE SHARES OF CAPITAL
STOCK IN EXCESS OR IN VIOLATION OF THE ABOVE LIMITATIONS WILL BE AUTOMATICALLY TRANSFERRED TO A
TRUSTEE OF A TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN ADDITION, THE
CORPORATION MAY REDEEM SHARES UPON THE TERMS AND CONDITIONS SPECIFIED BY THE BOARD OF DIRECTORS IN
ITS SOLE DISCRETION IF THE BOARD OF DIRECTORS DETERMINES THAT OWNERSHIP OR A TRANSFER OR OTHER
EVENT MAY VIOLATE THE RESTRICTIONS DESCRIBED ABOVE. FURTHERMORE, UPON THE OCCURRENCE OF CERTAIN
EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB
INITIO. ALL CAPITALIZED TERMS IN THIS LEGEND HAVE THE MEANINGS DEFINED IN THE CHARTER OF
THE CORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE
RESTRICTIONS ON TRANSFER AND OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF CAPITAL STOCK OF THE
CORPORATION ON REQUEST AND WITHOUT CHARGE. REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE
SECRETARY OF THE CORPORATION AT ITS PRINCIPAL OFFICE.

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

               (e) Notwithstanding the provisions of Sections 8.06(a), 8.06(b), or 8.06(c) hereof or any
other provision of this Agreement, a Limited Partner (i) shall not be entitled to tender Common
Units for Redemption to the extent that, if the General Partner were to exercise its rights
pursuant to Sections 8.06(b) and 8.06(c) hereof with respect thereto, the delivery of the REIT
Shares Amount to such Limited Partner on the Specified Redemption Date would cause such Limited
Partner or any other Person to violate the restrictions on ownership and transfer of REIT Shares
set forth in the Charter of the General Partner and (ii) shall have no rights under this Agreement
to acquire REIT Shares which would otherwise be prohibited under the Charter. To the extent any
attempted Redemption or exchange for REIT Shares would be in violation of this Section 8.06(e), it
shall be null and void ab initio and such Limited Partner shall not acquire any rights or economic
interest in the cash otherwise payable upon such Redemption or the REIT Shares otherwise issuable
upon such exchange.

               (f) Notwithstanding anything herein to the contrary (but subject to Section 8.06(e) hereof),
with respect to any Redemption or exchange for REIT Shares pursuant to this Section 8.06: (i) a
portion of the Common Units acquired by the General Partner pursuant thereto shall automatically,
and without further action required, be converted into and deemed to be General Partner Interests
and all other Common Units shall be deemed to be Limited Partner Interests and held by the General
Partner in its capacity as a Limited Partner in the Partnership such that, immediately after such
Redemption, the requirements of Section 4.01(b) hereof continue to be met; (ii) without the consent
of the General Partner, each Limited Partner may effect a Redemption only one time in each fiscal
quarter; (iii) without the consent of the General Partner, each Limited Partner may not effect a
Redemption for less than 1,000 Common Units or, if the Limited Partner holds less than 1,000 Common
Units, all of the Common Units held by such Limited Partner; (iv) without the consent of the
General Partner, each Limited Partner may not effect a Redemption during the period after the
Partnership Record Date with respect to a distribution and before the record date established by
the General Partner for a distribution to its stockholders of some or all of its portion of such
distribution; (v) the consummation of any Redemption or exchange for REIT Shares shall be subject
to the expiration or termination of the applicable waiting period, if any, under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; and (vi) each Tendering Partner
shall continue to own all Common Units subject to any Redemption or exchange for REIT Shares, and
be treated as a Limited Partner with respect to such Partnership Units for all purposes of this
Agreement, until such Common Units are transferred to the General Partner and paid for or exchanged
on the Specified Redemption Date. Until a Specified Redemption Date, the Tendering Partner shall
have no rights as a stockholder of the General Partner with respect to such Tendering Partner’s
Common Units.

               (g) If the Partnership issues additional Partnership Interests to any Additional Limited
Partner pursuant to Section 4.04 hereof, the General Partner shall make such revisions to

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this Section 8.06 as it determines are necessary to reflect the issuance of such additional
Partnership Interests.

          Section 8.07. Approval of Certain Taxable Sales and Debt Reduction.

               (a) The General Partner shall cause the Partnership to enter into a Tax Protection Agreement
with certain Limited Partners substantially in the form of the Tax Protection Agreement annexed as
Exhibit E hereto.

               (b) If so determined in the General Partner’s sole discretion, the Partnership may also enter
into a Tax Protection Agreement with any subsequent contributor of Contributed Property to the
Partnership.

ARTICLE IX

BOOKS, RECORDS, ACCOUNTING AND REPORTS

          Section 9.01. Records and Accounting.

               (a) The General Partner shall keep or cause to be kept at the principal office of the
Partnership those records and documents required to be maintained by the Act and other books and
records deemed by the General Partner to be appropriate with respect to the Partnership’s business,
including, without limitation, all books and records necessary to provide to the Limited Partners
any information, lists and copies of documents required to be provided pursuant to Section 8.05 or
9.03 hereof. Any records maintained by or on behalf of the Partnership in the regular course of its
business may be kept on, or be in the form for, magnetic tape, photographs, micrographics or any
other information storage device, provided, that the records so maintained are convertible into
clearly legible written form within a reasonable period of time.

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

          Section 9.02. Partnership Year. The Partnership Year of the Partnership shall be the calendar
year, except as otherwise provided in the definition of Partnership Year..

          Section 9.03. 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 an annual report, as of the close of the most recently ended Partnership Year,
containing financial statements of the Partnership, or of the General Partner if such statements
are prepared solely on a consolidated basis with the Partnership, for such

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Partnership Year, presented in accordance with generally accepted accounting principles, such
statements to be audited by a nationally recognized firm of independent public accountants selected
by the General Partner.

               (b) If and to the extent that the General Partner mails quarterly reports to its stockholders,
as soon as practicable, but in no event later than the date on such reports are mailed, the General
Partner shall cause to be mailed to each Limited Partner a report containing unaudited financial
statements, as of the last day of such fiscal quarter, of the Partnership, or of the General
Partner if such statements are prepared solely on a consolidated basis with the Partnership, and
such other information as may be required by applicable law or regulations, or as the General
Partner determines to be appropriate.

               (c) The General Partner shall have satisfied its obligations under Sections 9.03(a) and
9.03(b) hereof by posting or making available the reports required by this Section 9.03 on the
website maintained from time to time by the Partnership; provided, that such reports are able to be
printed or downloaded from such website.

               (d) At the request of any Limited Partner for any purpose reasonably related to such Limited
Partner’s interests as a Limited Partner, the General Partner shall provide access to the books,
records and work paper upon which the reports required by this Section 9.03 are based, to the
extent required by the Act.

ARTICLE X

TAX MATTERS

          Section 10.01. Preparation of Tax Returns. The General Partner shall arrange for the
preparation and timely filing of all returns with respect to Partnership income, gains, deductions,
losses and other items required of the Partnership for federal and state income tax purposes and
shall use all reasonable effort to furnish, within 90 days of the close of each taxable year, the
tax information reasonably required by Limited Partners for federal and state income tax reporting
purposes. The Limited Partners shall promptly provide the General Partner with such information
relating to the Contributed Properties, including tax basis and other relevant information, as may
be reasonably requested by the General Partner from time to time.

          Section 10.02. Tax Elections. Except as otherwise provided herein, the General Partner shall,
in its sole and absolute discretion, determine whether to make any available election pursuant to
the Code, including, but not limited to, the election under Code Section 754 and the election to
use the “recurring item” method of accounting provided under Code Section 461(h) with respect to
property taxes imposed on the Partnership’s Properties. The General Partner shall have the right to
seek to revoke any such election (including, without limitation, any election under Code Sections
461(h) and 754) upon the General Partner’s determination in its sole and absolute discretion.
Notwithstanding the foregoing, in making any such tax election, the General Partner may, but shall
be under no obligation to (unless pursuant to a separate written agreement), take into account the
tax consequences to any Limited Partner resulting from any such election.

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          Section 10.03. Tax Matters Partner.

               (a) The General Partner shall be the “tax matters partner” of the Partnership for federal
income tax purposes. The tax matters partner shall receive no compensation for its services. All
third-party costs and expenses incurred by the tax matters partner in performing its duties as such
(including legal and accounting fees and expenses) shall be borne by the Partnership in addition to
any reimbursement pursuant to Section 7.04 hereof. Nothing herein shall be construed to restrict
the Partnership from engaging an accounting firm to assist the tax matters partner in discharging
its duties hereunder, so long as the compensation paid by the Partnership for such services is
reasonable.

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

               (i) to enter into any settlement with the IRS with respect to any administrative or judicial
proceedings for the adjustment of Partnership items required to be taken into account by a
Partner for income tax purposes (such administrative proceedings being referred to as a “tax
audit” and such judicial proceedings being referred to as “judicial review”), and in the
settlement agreement the tax matters partner may expressly state that such agreement shall bind
all Partners, except that such settlement agreement shall not bind any Partner (i) who (within
the time prescribed pursuant to the Code and Regulations) files a statement with the IRS
providing that the tax matters partner shall not have the authority to enter into a settlement
agreement on behalf of such Partner or (ii) who is a “notice partner” (as defined in Code Section
6231) or a member of a “notice group” (as defined in Code Section 6223(b)(2));

               (ii) if a notice of a final administrative adjustment at the Partnership level of any item
required to be taken into account by a Partner for tax purposes (a “final adjustment”) is mailed
to the tax matters partner, to seek judicial review of such final adjustment, including the
filing of a petition for readjustment with the United States Tax Court or the United States
Claims Court, or the filing of a complaint for refund with the District Court of the United
States for the district in which the Partnership’s principal place of business is located;

               (iii) to intervene in any action brought by any other Partner for judicial review of a final
adjustment;

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

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

               (vi) to take any other action on behalf of the Partners and the Partnership in connection
with any tax audit or judicial review proceeding to the extent permitted by applicable law or
regulations.

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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 and
liability of the General Partner set forth in Section 7.07 hereof shall be fully applicable to the
tax matters partner in its capacity as such.

          Section 10.04. Withholding. Each Limited Partner hereby authorizes the Partnership to withhold
from or pay on behalf of or with respect to such Limited Partner any amount of federal, state,
local or foreign taxes that the General Partner determines that the Partnership is required to
withhold or pay with respect to any amount distributable or allocable to such Limited Partner
pursuant to this Agreement, including, without limitation, any taxes required to be withheld or
paid by the Partnership pursuant to Code Sections 1441, 1442, 1445 or 1446 and Treasury Regulations
thereunder. Any amount paid on behalf of or with respect to a Limited Partner, in excess of any
withheld amounts shall constitute a loan by the Partnership to such Limited Partner, which loan
shall be repaid by such Limited Partner within 15 days after notice from the General Partner that
such payment must be made unless (i) the Partnership withholds such payment from a distribution
that would otherwise be made to the Limited Partner or (ii) the General Partner determines, in its
sole and absolute discretion, that such payment may be satisfied out of the Available Cash of the
Partnership that would, but for such payment, be distributed to the Limited Partner. Each Limited
Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in
such Limited Partner’s Partnership Interest to secure such Limited Partner’s obligation to pay to
the Partnership any amounts required to be paid pursuant to this Section 10.04. If a Limited
Partner fails to pay any amounts owed to the Partnership pursuant to this Section 10.04 when due,
the General Partner may, in its sole and absolute discretion, elect to make the payment to the
Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have
loaned such amount to such defaulting Limited Partner and shall succeed to all rights and remedies
of the Partnership as against such defaulting Limited Partner (including, without limitation, the
right to receive distributions). Any amounts payable by a Limited Partner hereunder shall bear
interest at the base rate on corporate loans at large United States money center commercial banks,
as published from time to time in The Wall Street Journal, plus four percentage points (but not
higher than the maximum lawful rate) from the date such amount is due (i.e., 15 days after demand)
until such amount is paid in full. Each Limited Partner shall take such actions as the Partnership
or the General Partner shall request in order to (i) perfect or enforce the security interest
created hereunder and (ii) cause any loan arising hereunder to be treated as a real estate asset
for purposes of Section 856(c)(4)(A) of the Code. Upon a Limited Partner’s complete withdrawal
from the Partnership, such Limited Partner shall be required to pay to the Partnership an amount
equal to the excess of (A) the cumulative amount of taxes withheld by the Partnership from, or paid
by the Partnership, on behalf of, or with respect to, such Limited Partner, over (B) the sum of
amounts (I) repaid to the Partnership by such Limited Partner and (II) withheld by the Partnership
from distributions to such Limited Partner (not including taxes paid by the General Partner on
behalf of such Limited Partner pursuant to a Tax Protection Agreement described in Section 8.07
hereof).

          Section 10.05. Organizational Expenses. The Partnership shall elect to amortize expenses, if
any, incurred by it in organizing the Partnership ratably over a 180-month period as provided in
Code Section 709.

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ARTICLE XI

TRANSFERS AND WITHDRAWALS

          Section 11.01. Transfer.

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

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

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

          Section 11.02. Transfer of General Partner’s Partnership Interest.

               (a) The General Partner may not transfer any of its Partnership Interests except in connection
with (i) a transaction permitted under Section 11.02(b) hereof, (ii) any merger (including a
triangular merger), consolidation or other combination with or into another Person following the
consummation of which the equity holders of the surviving entity are substantially identical to the
stockholders of the General Partner, (iii) a transfer to a Qualified REIT Subsidiary or (iv) as
otherwise expressly permitted under this Agreement, nor shall the General Partner withdraw as
General Partner except in connection with a transaction permitted under Section 11.02(b) hereof or
any merger, consolidation, or other combination permitted under clause (ii) of this Section
11.02(a).

               (b) The General Partner shall not engage in any merger (including, without limitation, a
triangular merger), consolidation or other combination with or into another Person (other than any
transaction permitted by Section 11.02(a) hereof), sale of all or substantially all of its assets
or any reclassification, recapitalization or change of outstanding REIT Shares (other than a change
in par value, or from par value to no par value, or as a result of a subdivision or combination as
described in the definition of “Adjustment Factor”) (“Termination Transaction”), unless (i) it
receives the consent of a Majority in Interest of the Outside Limited Partners, (ii) following such
merger or other consolidation, substantially all of the assets of the

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surviving entity consist of Partnership Units or (iii) in connection with which all Partners
(other than the General Partner) who hold Partnership Units either will receive, or will have the
right to receive, for each Partnership Unit an amount of cash, securities, or other property equal
to the product of the Adjustment Factor and the greatest amount of cash, securities or other
property paid to a holder of REIT Shares in consideration of one such REIT Share at any time during
the period from and after the date on which the Termination Transaction is consummated; provided,
however, that, if in connection with the Termination Transaction, a purchase, tender or exchange
offer shall have been made to and accepted by the holders of the percentage required for the
approval of mergers under the organizational documents of the General Partner, each holder of
Partnership Units shall receive, or shall have the right to receive without any right of Consent
set forth above in this Section 11.02(b), the greatest amount of cash, securities, or other
property which such holder would have received had it exercised the Redemption Right and received
REIT Shares in exchange for its Partnership Units immediately prior to the expiration of such
purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange
offer.

               (c) The General Partner shall not enter into an agreement or other arrangement providing for
or facilitating the creation of a General Partner other than the General Partner, unless the
successor General Partner executes and delivers a counterpart to this Agreement in which such
General Partner agrees to be fully bound by all of the terms and conditions contained herein that
are applicable to a General Partner.

               (d) Until the date [_______] beneficially owns, in the aggregate, less than [___]% of the
number of Common Units issued on the Effective Date (excluding Common Units issued to the General
Partner or its Subsidiaries), the General Partner shall not, without prior Partnership Approval,
consummate any transaction that would result in a direct or indirect transfer of all or any portion
of the General Partner’s Partnership Interest if such direct or indirect transfer would be effected
through (i) a Termination Transaction or (ii) the issuance of REIT Shares, in each case in
connection with which the General Partner seeks to obtain or would be required to obtain approval
of its common stockholders (each, a “General Partner Interest Transfer”).

          Section 11.03. Transfer of Limited Partners’ Partnership Interests.

               (a) Except for a Transfer contemplated by the immediately succeeding sentence, no Limited
Partner shall Transfer all or any portion of its Partnership Interest to any transferee without the
written consent of the General Partner, which consent may be withheld in its sole and absolute
discretion. A Limited Partner may Transfer all or any portion of its Partnership Interest to his
or her spouse, children (natural or adopted), brothers, sisters and parents of such Limited Partner
or to a family limited partnership, trust or other entity for the benefit of one or more of such
persons without the consent of the General Partner; such transfer to be effective upon receipt by
the General Partner of written notice of such Transfer from the Limited Partner transferring its
Partnership Interest.

               (b) Without limiting the generality of Section 11.03(a) hereof, it is expressly understood and
agreed that the General Partner will not consent to any Transfer of all or any

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portion of any Partnership Interest pursuant to Section 11.03(a) hereof unless such Transfer
meets each of the following conditions:

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

               (ii) The transferee in such Transfer assumes by operation of law or express agreement all of
the obligations of the transferor Limited Partner under this Agreement with respect to such
Transferred Partnership Interest; provided, that no such Transfer (unless made pursuant to a
statutory merger or consolidation wherein all obligations and liabilities of the transferor
Partner are assumed by a successor corporation by operation of law) shall relieve the transferor
Partner of its obligations under this Agreement without the approval of the General Partner, in
its sole and absolute discretion. Notwithstanding the foregoing, any transferee of any
Transferred Partnership Interest shall be subject to any and all ownership limitations contained
in the Charter that may limit or restrict such transferee’s ability to exercise its Redemption
rights, including, without limitation, the Ownership Limit. Any transferee, whether or not
admitted as a Substituted Limited Partner, shall take subject to the obligations of the
transferor hereunder. Unless admitted as a Substituted Limited Partner, no transferee, whether by
a voluntary Transfer, by operation of law or otherwise, shall have any rights hereunder, other
than the rights of an Assignee as provided in Section 11.05 hereof.

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

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

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

               (e) The Partners hereby acknowledge and agree that LTIP Units shall not be Transferred, other
than (a) by operation of law to the estate of a Partner who held such LTIP Units immediately prior
to his or her death or (b) to the Partnership or the General Partner.

          Section 11.04. Substituted Limited Partners.

               (a) A transferee of the interest of a Limited Partner pursuant to a Transfer consented to by
the General Partner pursuant to Section 11.03(a) hereof may be admitted as a Substituted Limited
Partner only with the consent of the General Partner, which consent may be

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given or withheld by the General Partner in its sole and absolute discretion. The failure or
refusal by the General Partner to permit a transferee of any such interests to become a Substituted
Limited Partner shall not give rise to any cause of action against the Partnership or the General
Partner. Subject to the foregoing, an Assignee shall not be admitted as a Substituted Limited
Partner until and unless it furnishes to the General Partner (i) evidence of acceptance, in form
and substance satisfactory to the General Partner, of all the terms, conditions and applicable
obligations of this Agreement, including, without limitation, the power of attorney granted in
Section 2.04 hereof, (ii) a counterpart signature page to this Agreement executed by such Assignee,
and (iii) such other documents and instruments as may be required or advisable, in the sole and
absolute discretion of the General Partner, to effect such Assignee’s admission as a Substituted
Limited Partner.

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

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

          Section 11.05. Assignees. If the General Partner, in its sole and absolute discretion, does
not consent to the admission of any transferee of any Partnership Interest as a Substituted Limited
Partner in connection with a transfer permitted by the General Partner pursuant to Section 11.03(a)
hereof, such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee
shall be entitled to all the rights of an assignee of a limited partnership interest under the Act,
including the right to receive distributions from the Partnership and the share of Net Income, Net
Losses and other items of income, gain, loss, deduction and credit of the Partnership attributable
to the Partnership Units assigned to such transferee and the rights to Transfer the Partnership
Units only in accordance with the provisions of this Article XI, but shall not be deemed to be a
holder of Partnership Units for any other purpose under this Agreement, and shall not be entitled
to effect a Redemption with respect to such Partnership Units or to effect a Consent or vote on any
matter presented to the Limited Partners for approval (such right to Consent or vote, to the extent
provided in this Agreement or under the Act, fully remaining with the transferor Limited Partner).
If any such transferee desires to make a further assignment of any such Partnership Units, such
transferee shall be subject to all the provisions of this Article XI to the same extent and in the
same manner as any Limited Partner desiring to make an assignment of Partnership Units.

          Section 11.06. General Provisions.

               (a) No Limited Partner may withdraw from the Partnership other than as a result of a permitted
Transfer of all of such Limited Partner’s Partnership Units in accordance with this Article XI,
with respect to which the transferee becomes a Substituted Limited Partner, or pursuant to a
redemption (or acquisition by the General Partner) of all of its Partnership Units pursuant to a
Redemption under Section 8.06 hereof and/or pursuant to any Partnership Unit Designation.

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               (b) Any Limited Partner who shall Transfer all of its Partnership Units in a Transfer (i)
consented to by the General Partner pursuant to this Article XI where such transferee was admitted
as a Substituted Limited Partner, (ii) pursuant to the exercise of its rights to effect a
Redemption of all of its Partnership Units pursuant to a Redemption under Section 8.06 hereof
and/or pursuant to any Partnership Unit Designation, or (iii) to the General Partner, whether or
not pursuant to Section 8.06(b) hereof, shall cease to be a Limited Partner.

               (c) If any Partnership Unit is Transferred in compliance with the provisions of this Article
XI, or is redeemed by the Partnership, or acquired by the General Partner pursuant to Section 8.06
hereof, on any day other than the first day of a Partnership Year, then Net Income, Net Losses,
each item thereof and all other items of income, gain, loss, deduction and credit attributable to
such Partnership Unit for such Partnership Year shall be allocated to the transferor Partner or the
Tendering Partner, as the case may be, and, in the case of a Transfer or assignment other than a
Redemption, to the transferee Partner, by taking into account their varying interests during the
Partnership Year in accordance with Code Section 706(d) and the corresponding Regulations, using
the “interim closing of the books” method or another permissible method selected by the General
Partner (unless the General Partner in its sole and absolute discretion elects to adopt a daily,
weekly or monthly proration period, in which case Net Income or Net Loss, items thereof and all
other items of income, gain, loss or deduction shall be allocated based upon the applicable method
selected by the General Partner). All distributions of Available Cash attributable to such
Partnership Unit with respect to which the Partnership Record Date is before the date of such
Transfer, assignment or Redemption shall be made to the transferor Partner or the Tendering
Partner, as the case may be, and, in the case of a Transfer other than a Redemption, all
distributions of Available Cash thereafter attributable to such Partnership Unit shall be made to
the transferee Partner.

               (d) In no event may any Transfer or assignment of a Partnership Interest by any Partner
(including any Redemption, any acquisition of Partnership Units by the General Partner or any other
acquisition of Partnership Units by the Partnership, including pursuant to Section 8.06(b)) be made
(i) to any person or entity who lacks the legal right, power or capacity to own a Partnership
Interest; (ii) to any person or entity that is not an “Accredited Investor” (as such term is
defined in Rule 501 of Regulation D promulgated under the Securities Act), (iii) in violation of
applicable law; (iv) 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; (v) if such Transfer would cause the General Partner to cease to comply with the REIT
Requirements (unless otherwise approved by the General Partner); (vi) if counsel to the Partnership
or the General Partner advises in writing that such Transfer would create a significant risk that
the Partnership could be terminated for federal or state income tax purposes; (vii) if counsel to
the Partnership advises in writing that such Transfer would create a significant risk that the
Partnership could cease to be classified as a partnership for federal income tax purposes; (viii)
if such Transfer would cause the Partnership to become, with respect to any employee benefit plan
subject to Title I of ERISA, a “party-in-interest” (as defined in ERISA Section 3(14)) or with
respect to any plan that is subject to Code Section 4975(c), a “disqualified person” (as defined in
Code Section 4975(c)); (ix) without the consent of the General Partner, to any benefit plan
investor within the meaning of Department of Labor Regulations Section 2510.3-101(f) and ERISA
Section 3(42); (x) if counsel to the Partnership or the General Partner advises in writing that
such Transfer would create a significant risk that any

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portion of the assets of the Partnership could constitute assets of any employee benefit plan
pursuant to Department of Labor Regulations Section 2510.3-101 or that the transfer could result in
a violation of any provision of any federal, state, local, foreign or other law or regulation
applicable to any employee benefit plan or arrangement that is similar to any provision of ERISA or
Code Section 4975(c); (xi) if such Transfer requires the registration of such Partnership Interest
pursuant to any applicable federal or state securities laws or could subject the General Partner or
the Partnership to such regulation or registration requirements; (xii) if counsel to the
Partnership or the General Partner advises in writing that such Transfer could adversely affect the
ability of the General Partner to continue to qualify as a REIT or could subject the General
Partner to any additional taxes under Code Section 857 or Code Section 4981; (xiii) if such
transfer would be effectuated either through an “established securities market” or a “secondary
market (or the substantial equivalent thereof)” within the meaning of Code Section 7704 or could
cause the Partnership to fail to qualify for any and all of the “secondary market safe harbors”
provided by paragraphs (e), (f), (g), (h) and (j) of Regulations Section 1.7704-1 (and any other
secondary market safe harbors that may be adopted after the date hereof); provided, that this
clause (xiii) shall not be the basis for limiting or restricting in any manner the exercise of a
Redemption right unless, and only to the extent that, in the absence of such limitation or
restriction, in the opinion of legal counsel to the Partnership, there is more than an
insignificant risk that the Partnership would be treated as a “publicly traded partnership” and, by
reason thereof, taxable as a corporation; (xiv) if such Transfer causes the Partnership (as opposed
to the General Partner) to become a reporting company under the Exchange Act; or (xv) if such
Transfer subjects the Partnership or the General Partner to regulation under the Investment Company
Act of 1940, the Investment Advisors Act of 1940 or ERISA, each as amended.

ARTICLE XII

ADMISSION OF PARTNERS

          Section 12.01. Admission of Successor General Partner. A successor to all of the General
Partner’s General Partner Interest pursuant to Section 11.02 hereof who is proposed to be admitted
as a successor General Partner shall be admitted to the Partnership as the General Partner,
effective immediately prior to such Transfer. Any such successor shall carry on the business of the
Partnership without dissolution. In each case, the admission shall be subject to the successor
General Partner executing and delivering to the Partnership an acceptance of all of the terms and
conditions of this Agreement and such other documents or instruments as may be required to effect
the admission. Concurrently with, and as evidence of, the admission of an a new General Partner,
the General Partner shall amend Exhibit A and the books and records of the Partnership to reflect
the name, address and number of Partnership Units of such new General Partner.

          Section 12.02. Admission of Additional Limited Partners.

               (a) After the date hereof, a Person (other than an existing Partner) who makes a Capital
Contribution to the Partnership in accordance with this Agreement shall be admitted to the
Partnership as an Additional Limited Partner only upon furnishing to the General Partner (i)
evidence of acceptance, in form and substance satisfactory to the General Partner, of all of the

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terms and conditions of this Agreement, including, without limitation, the power of attorney
granted in Section 2.04 hereof, (ii) a counterpart signature page to this Agreement executed by
such Person, and (iii) such other documents or instruments as may be required in the sole and
absolute discretion of the General Partner in order to effect such Person’s admission as an
Additional Limited Partner and the satisfaction of all the conditions set forth in this Section
12.02. Upon the admission of an Additional Limited Partner, the General Partner shall amend
Exhibit A and the books and records of the Partnership in all respects that are necessary to
reflect the name, address and number and classes and/or series of Partnership Units of such
Additional Limited Partner.

               (b) Notwithstanding anything to the contrary in this Section 12.02, no Person shall be
admitted as an Additional Limited Partner without the consent of the General Partner, which consent
may be given or withheld in the General Partner’s sole and absolute discretion. The admission of
any Person as an Additional Limited Partner shall become effective on the date upon which the name
of such Person is recorded on the books and records of the Partnership, following the consent of
the General Partner to such admission.

               (c) If any Additional Limited Partner is admitted to the Partnership on any day other than the
first day of a Partnership Year, then Net Income, Net Losses, each item thereof and all other items
of income, gain, loss, deduction and credit allocable among Partners and Assignees for such
Partnership Year shall be allocated pro rata among such Additional Limited Partner and all other
Partners and Assignees by taking into account their varying interests during the Partnership Year
in accordance with Code Section 706(d), using the “interim closing of the books” method or another
permissible method selected by the General Partner. Solely for purposes of making such allocations,
each of such items for the calendar month in which an admission of any Additional Limited Partner
occurs shall be allocated among all the Partners and Assignees including such Additional Limited
Partner, in accordance with the principles described in Section 11.06(c) hereof. All distributions
of Available Cash with respect to which the Partnership Record Date is before the date of such
admission shall be made solely to Partners and Assignees other than the Additional Limited Partner,
and all distributions of Available Cash thereafter shall be made to all the Partners and Assignees
including such Additional Limited Partner.

          Section 12.03. 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 2.04 hereof.

          Section 12.04. Limit on Number of Partners. Unless otherwise permitted by the General Partner,
no Person shall be admitted to the Partnership as an Additional Limited Partner if the General
Partner is advised by counsel that there is a significant risk that the Partnership may be deemed
to have a number of Partners that would require the Partnership to become a reporting company under
the Exchange Act.

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          Section 12.05. Admission. A Person shall be admitted to the Partnership as a Limited Partner
of the Partnership only upon strict compliance, and not upon substantial compliance, with the
requirements set forth in this Agreement for admission to the Partnership as an Additional Limited
Partner.

ARTICLE XIII

DISSOLUTION, LIQUIDATION AND TERMINATION

          Section 13.01. Dissolution. The Partnership shall not be dissolved by the admission of
Substituted Limited Partners or Additional Limited Partners or by the admission of a successor
General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General
Partner, any successor General Partner shall continue the business of the Partnership without
dissolution. However, the Partnership shall dissolve, and its affairs shall be wound up, upon the
first to occur of any of the following (each a “Liquidating Event”):

               (a) a final and nonappealable judgment is entered by a court of competent jurisdiction ruling
that the General Partner is bankrupt or insolvent, or a final and nonappealable 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, within 90
days after the entry of such order or judgment, a Majority in Interest of the Outside Limited
Partners agree in writing, in their sole and absolute discretion, to continue the business of the
Partnership and to the appointment, effective as of a date prior to the date of such order or
judgment, of a successor General Partner;

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

               (c) entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of
the Act;

               (d) the occurrence of a Terminating Capital Transaction;

               (e) the Redemption (or acquisition by the General Partner) of all Partnership Units other than
Partnership Units held by the General Partner; or

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

          Section 13.02. Winding Up.

               (a) Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the
purposes of winding up its affairs in an orderly manner, liquidating its assets and satisfying the
claims of its creditors and Partners. After the occurrence of a Liquidating Event, no Partner shall
take any action that is inconsistent with, or not necessary to or appropriate for, the

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winding up of the Partnership’s business and affairs. The General Partner or, if there is no
remaining General Partner or the General Partner has dissolved, become bankrupt within the meaning
of the Act or ceased to operate, any Person elected by a Majority in Interest of the Outside
Limited Partners (the General Partner or such other Person being referred to herein as the
“Liquidator”) shall be responsible for overseeing the winding up and dissolution of the Partnership
and shall take full account of the Partnership’s liabilities and property, and the Partnership
property shall be liquidated as promptly as is consistent with obtaining the fair value thereof,
and the proceeds therefrom (which may, to the extent determined by the General Partner, include
shares of stock in the General Partner) shall be applied and distributed in the following order:

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

               (ii) Second, to the satisfaction of all of the Partnership’s Debts and liabilities to the
General Partner (whether by payment or the making of reasonable provision for payment thereof),
including, but not limited to, amounts due as reimbursements under Section 7.04 hereof;

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

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

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

               (b) Notwithstanding the provisions of Section 13.02(a) hereof that require liquidation of the
assets of the Partnership, but subject to the order of priorities set forth therein, if prior to or
upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all
of the Partnership’s assets would be impractical or would cause undue loss to the Partners, the
Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of
any assets except those necessary to satisfy liabilities of the Partnership (including to those
Partners as creditors) and/or distribute to the Partners, in lieu of cash, as tenants in common and
in accordance with the provisions of Section 13.02(a) hereof, undivided interests in such
Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions in
kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in
kind are in the best interest of the Partners, and shall be subject to such conditions relating to
the disposition and management of such properties as the Liquidator deems reasonable and equitable
and to any agreements governing the operation of such properties at such time. The Liquidator shall
determine the fair market value of any property distributed in kind using such reasonable method of
valuation as it may adopt.

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

               (d) Notwithstanding the foregoing, the second sentence of Section 13.02(c) hereof shall not
apply with respect to any other Partner to the extent, but only to the extent, that such Partner (a
“Recourse Partner”) previously has agreed in writing, with the consent of the General Partner, to
undertake an express obligation to restore all or any portion of a Capital Account Deficit that may
exist upon a liquidation of the Partnership (the amount of such obligation, such Recourse Partner’s
“LP Recourse Amount”). Any such deficit restoration obligation shall be for the benefit of the
Partnership, the General Partner and recourse creditors of the partnership for borrowed money
(including persons to whom liabilities are owed by the General Partner as guarantor of liabilities
of the Partnership for borrowed money) and shall be enforceable by such parties. No Partner shall
have any right of subrogation, reimbursement or contribution or other similar right to which it
might otherwise be entitled as a result of its performance of such obligation, but such Partner
shall have the right to proceed against Partnership assets (other than the obligation of any
Partner to contribute to the Partnership with respect to, or pay directly, such obligation to such
Partner). No Partner shall have any right to otherwise agree to restore any portion of any Capital
Account Deficit without the express written consent of the General Partner, in its sole and
absolute discretion (which may be granted in a Tax Protection Agreement). Any contribution
required of a Partner under this Section 13.02(d) shall be made on or before the later of (i) the
end of the Partnership Year in which the interest is liquidated or (ii) the ninetieth (90th) day
following the date of such liquidation.

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

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

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               (ii) withheld or escrowed to provide a reasonable reserve for Partnership liabilities
(contingent or otherwise) and to reflect the unrealized portion of any installment obligations
owed to the Partnership, provided, that such withheld or escrowed amounts shall be distributed to
the General Partner and Limited Partners in the manner and order of priority set forth in Section
13.02(a) hereof as soon as practicable.

          Section 13.03. Deemed Distribution and Recontribution. Notwithstanding any other provision of
this Article XIII, if the Partnership is liquidated within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g), but no Liquidating Event has occurred, the Partnership’s Property shall not
be liquidated, the Partnership’s liabilities shall not be paid or discharged and the Partnership’s
affairs shall not be wound up. Instead, for federal income tax purposes the Partnership shall be
deemed to have contributed all of its assets and liabilities to a new partnership in exchange for
an interest in the new partnership; and, immediately thereafter, distributed interests in the new
partnership to the Partners in accordance with their respective Capital Accounts in liquidation of
the Partnership, and the new partnership is deemed to continue the business of the Partnership.
Nothing in this Section 13.03 shall be deemed to have constituted any Assignee as a Substituted
Limited Partner without compliance with the provisions of Section 11.04 hereof.

          Section 13.04. Rights of Limited Partners. Except as otherwise provided in this Agreement, (a)
each Limited Partner shall look solely to the assets of the Partnership for the return of its
Capital Contribution, (b) no Limited Partner shall have the right or power to demand or receive
property other than cash from the Partnership, and (c) no Limited Partner (other than any Limited
Partner who holds Preferred Units, to the extent specifically set forth herein and in the
applicable Partnership Unit Designation) shall have priority over any other Limited Partner as to
the return of its Capital Contributions, distributions or allocations.

          Section 13.05. Notice of Dissolution. If a Liquidating Event occurs or an event occurs that
would, but for an election or objection by one or more Partners pursuant to Section 13.01 hereof,
result in a dissolution of the Partnership, the General Partner shall, within 30 days thereafter,
provide written notice thereof to each of the Partners and, in the General Partner’s sole and
absolute discretion, to all other parties with whom the Partnership regularly conducts business (as
determined in the sole and absolute discretion of the General Partner), and the General Partner may
or, if required by the Act, shall, publish notice thereof in a newspaper of general circulation in
each place in which the Partnership regularly conducts business (as determined in the sole and
absolute discretion of the General Partner).

          Section 13.06. Cancellation of Certificate of Limited Partnership. Upon the completion of the
liquidation of the Partnership as provided in Section 13.02 hereof, the Partnership shall be
terminated, a certificate of cancellation shall be filed with the State of Delaware, all
qualifications of the Partnership as a foreign limited partnership or association in jurisdictions
other than the State of Delaware shall be cancelled, and such other actions as may be necessary to
terminate the Partnership shall be taken.

          Section 13.07. 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 13.02 hereof in order to minimize any losses otherwise attendant upon

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such winding-up, and the provisions of this Agreement shall remain in effect among the
Partners during the period of liquidation.

ARTICLE XIV

PROCEDURES FOR ACTIONS AND CONSENTS

OF PARTNERS; AMENDMENTS; MEETINGS

          Section 14.01. Procedures for Actions and Consents of Partners. The actions requiring consent
or approval of Limited Partners pursuant to this Agreement, including Section 7.03 hereof, or
otherwise pursuant to applicable law, are subject to the procedures set forth in this Article XIV.

          Section 14.02. Amendments. Amendments to this Agreement requiring Consent of the Limited
Partners may be proposed only by the General Partner. Following such proposal, the General Partner
shall submit any proposed amendment to the Limited Partners. The General Partner shall seek the
written consent of the Limited Partners on the proposed amendment or shall call a meeting to vote
thereon and to transact any other business that the General Partner may deem appropriate. For
purposes of obtaining a written consent, the General Partner may require a response within a
reasonable specified time, but not less than 10 days, and failure to respond in such time period
shall constitute a consent that is consistent with the General Partner’s recommendation with
respect to the proposal; provided, however, that an action shall become effective at such time as
requisite consents are received even if prior to such specified time. Notwithstanding anything to
the contrary in this Agreement, the General Partner shall have the power, without the consent of
the Limited Partners, to amend this Agreement as may be required to reflect the admission,
substitution, termination or withdrawal of Partners.

          Section 14.03. Voting by General Partner. In determining whether the required vote of
Partners has been obtained and whether the Partnership can proceed with a transaction requiring a
vote of the Partners under this Agreement that also requires the vote of the stockholders of the
General Partner, after obtaining the approval of the stockholders of the General Partner, the
General Partner shall vote its Partnership Units in respect of such transaction in the same
proportion as the stockholders of the General Partner voted with respect to such transaction.

          Section 14.04. Meetings of the Partners.

                    (a) Meetings of the Partners may be called by the General Partner and shall be called upon the
receipt by the General Partner of a written request by a Majority in Interest of the Outside
Limited Partners. The call shall state the nature of the business to be transacted. Notice of any
such meeting shall be given to all Partners not less than seven days nor more than 30 days prior to
the date of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the
vote or Consent of Partners is permitted or required under this Agreement, such vote or Consent may
be given at a meeting of Partners or may be given in accordance with the procedure prescribed in
Section 14.03(b) hereof.

                    (b) Any action required or permitted to be taken at a meeting of the Partners may be taken
without a meeting if a written consent setting forth the action so taken is signed by

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a majority (or such other percentage as is expressly required by this Agreement for the action
in question) of the Percentage Interests of the Partners (or Outside Limited Partners, as the case
may be). 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 (or such other percentage as is expressly required by this
Agreement for the action in question) of the Percentage Interests of the Partners (or Outside
Limited Partners, as the case may be). Such consent shall be filed with the General Partner. An
action so taken shall be deemed to have been taken at a meeting held on the effective date so
certified.

                    (c) Each Limited Partner may authorize any Person or Persons to act for it by proxy on all
matters in which a Limited Partner is entitled to participate, including waiving notice of any
meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited Partner
or its attorney-in-fact. No proxy shall be valid after the expiration of 11 months from the date
thereof unless otherwise provided in the proxy (or there is receipt of a proxy authorizing a later
date). Every proxy shall be revocable at the pleasure of the Limited Partner executing it, such
revocation to be effective upon the Partnership’s receipt of written notice of such revocation from
the Limited Partner executing such proxy. The use of proxies will be governed in the same manner as
in the case of corporations organized under the Delaware General Corporation Law (including Section
212 thereof). The General Partner may set, in advance, a record date (i) for the purpose of
determining the Partners entitled to Consent, approve or vote upon (or words of similar import) to
any action, or who are entitled to receive notice of or vote at any meeting of the Partners or (ii)
in order to make a determination of Partners for any other proper purpose. Such date, in any case,
shall not be prior to the close of business on the day the record date is fixed and shall be not
more than ninety (90) days and, in the case of a meeting of the Partners, not less than ten (10)
days, before the date on which the meeting is to be held. If no record date is fixed, the record
date for the determination of Partners entitled to notice of or to vote at a meeting of the
Partners shall be at the close of business on the day on which the notice of the meeting is sent,
and the record date for any other determination of Partners shall be the effective date of such
Partner action, distribution or other event. When a determination of the Partners entitled to vote
at any meeting of the Partners has been made as provided in this Section 14.03, such determination
shall apply to any adjournment thereof. Notwithstanding the foregoing, the record date with
respect to the determination of the existence of Partnership Approval shall be the record date
established by the General Partner for the approval of its stockholders for the event constituting
a General Partner Interest Transfer.

                    (d) Each meeting of Partners shall be conducted by the General Partner or such other Person as
the General Partner may appoint pursuant to such rules for the conduct of the meeting as the
General Partner or such other Person deems appropriate in its sole and absolute discretion. Without
limitation, meetings of Partners may be conducted in the same manner as meetings of the General
Partner’s stockholders and may be held at the same time as, and as part of, the meetings of the
General Partner’s stockholders.

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

82

 

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

ARTICLE XV

GENERAL PROVISIONS

          Section 15.01. Addresses and Notice. Any notice, demand, request or report required or
permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and
shall be deemed given or made when delivered in person or when sent by first class United States
mail or by other means of written or electronic communication (including by facsimile or commercial
courier service) to the Partner or Assignee at the address or contact information set forth in
Exhibit A or such other address or contact information of which the Partner shall notify the
General Partner in writing.

          Section 15.02. Titles and Captions; Construction. All article or section titles or captions in
this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no
way define, limit, extend or describe the scope or intent of any provisions hereof. Except as
specifically provided otherwise, references to “Articles” and “Sections” are to Articles and
Sections of this Agreement. Any consent, approval, determination, discretionary act (or word of
comparable import or meaning to any of the foregoing) of any Partner (including the General
Partner) shall be granted or withheld in such Partner’s sole and absolute discretion unless, and to
the extent that, such term is modified by other language in this Agreement.

          Section 15.03. Pronouns and Plurals. Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice versa.

          Section 15.04. Further Action. The parties shall execute and deliver all documents, provide
all information and take or refrain from taking action as may be necessary or appropriate to
achieve the purposes of this Agreement.

          Section 15.05. Binding Effect. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their heirs, executors, administrators, successors, legal representatives
and permitted assigns.

          Section 15.06. Waiver.

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

                    (b) The restrictions, conditions and other limitations on the rights and benefits of the
Limited Partners contained in this Agreement, and the duties, covenants and other requirements of
performance or notice by the Limited Partners, are for the benefit of the Partnership and, except
for an obligation to pay money to the Partnership, may be waived or

83

 

relinquished by the General Partner, in its sole and absolute discretion, on behalf of the
Partnership in one or more instances from time to time and at any time.

          Section 15.07. Counterparts. This Agreement may be executed in counterparts, all of which
together shall constitute one agreement binding on all the parties hereto, notwithstanding that all
such parties are not signatories to the original or the same counterpart. Each party shall become
bound by this Agreement immediately upon affixing its signature hereto.

          Section 15.08. Applicable Law. This Agreement shall be construed and enforced in accordance
with and governed by the laws of the State of Delaware, without regard to the principles of
conflicts of law. In the event of a conflict between any provision of this Agreement and any
non-mandatory provision of the Act, the provisions of this Agreement shall control and take
precedence.

          Section 15.09. Entire Agreement. Except for the Contribution Agreement, the Tax Protection
Agreement, LTIP Awards, the Incentive Compensation Plans and any other contribution agreements with
respect to contributed properties, this Agreement contains all of the understandings and agreements
between and among the Partners with respect to the subject matter of this Agreement and the rights,
interests and obligations of the Partners with respect to the Partnership.

          Section 15.10. Invalidity of Provisions. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

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

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

                    (ii) an amount equal to the excess, if any, of (a) 24% of the General Partner’s total gross
income (but excluding the amount of any REIT Payments) for the Partnership Year that is described
in subsections (A) through (I) of Code Section 856(c)(3) over (b) the amount of gross income
(within the meaning of Code Section 856(c)(3)) derived

84

 

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

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

          Section 15.13. No Third-Party Rights Created Hereby. The provisions of this Agreement are
solely for the purpose of defining the interests of the Partners, inter se; and no other person,
firm or entity (i.e., a party who is not a signatory hereto or a permitted successor to such
signatory hereto) shall have any right, power, title or interest by way of subrogation or
otherwise, in and to the rights, powers, title and provisions of this Agreement. No creditor or
other third party having dealings with the Partnership (other than as expressly set forth herein
with respect to Indemnitees and Covered Persons and as provided in Section 13.02(d) hereof) shall
have the right to enforce the right or obligation of any Partner to make Capital Contributions or
loans to the Partnership or to pursue any other right or remedy hereunder or at law or in equity.
None of the rights or obligations of the Partners herein set forth to make Capital Contributions or
loans to the Partnership shall be deemed an asset of the Partnership for any purpose by any
creditor or other third party, nor may any such rights or obligations be sold, transferred or
assigned by the Partnership or pledged or encumbered by the Partnership to secure any debt or other
obligation of the Partnership or any of the Partners. It is the intent of the parties hereto that
no distribution to any Limited Partner shall be deemed a return of money or other property in
violation of the Act. However, if any court of competent jurisdiction holds that, notwithstanding
the provisions of this Agreement, any Limited Partner is obligated to return such money or
property, such obligation shall be the obligation of such Limited Partner and not of the General
Partner.

          Section 15.14. No Rights as Stockholders of General Partner. Nothing contained in this
Agreement shall be construed as conferring upon the Holders of Partnership Units any rights
whatsoever as stockholders of the General Partner, including without limitation any right to

85

 

receive dividends or other distributions made to stockholders of the General Partner or to
vote or to consent or receive notice as stockholders in respect of any meeting of stockholders for
the election of directors of the General Partner or any other matter.

          Section 15.15. Jurisdiction. The parties hereto hereby (a) submit to the
exclusive jurisdiction of any state or federal court sitting in New York, New York with respect to
any dispute arising out of this Agreement or any transaction contemplated hereby to the extent such
courts would have subject matter jurisdiction with respect to such dispute, and (b) irrevocably
waive, and agree not to assert by way of motion, defense, or otherwise, in any such action brought
in the above-named courts, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or execution, that the
action is brought in an inconvenient forum, or that the venue of the action is improper.

[signature page follows]

86

 

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

	 	 	 	 	 	 	 

	 	 	GENERAL PARTNER:	 	 
	 
	 	 	 	 	 	 
	 	 	SCHOTTENSTEIN REALTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ALL LIMITED PARTNERS LISTED ON EXHIBIT A HERETO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title: as Attorney-in-Fact for the

           Limited Partners	 	 
	 
	 	 	 	 	 	 
	 	 	Initial Limited Partner:	 	 
	 	 	Executed by the Undersigned to indicate its 
withdrawal from the Partnership as
of the Effective Date	 	 
	 
	 	 	 	 	 	 
	 	 	Schottenstein Realty LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

Exhibit A

PARTNERS AND PARTNERSHIP UNITS

As of                     , 2011, Closing

	 	 	 	 	 
	Name and Address of Partners	 	Partnership Units
(Type and Amount)	 	Address
	General Partner:

Schottenstein Realty Trust,
Inc.

	 	—
	 	4300 East Fifth Avenue

Columbus, OH 43219

Attention: Benton E. Kraner 

Facsimile No.:
	 
	 	 	 	 
	Limited Partners:

[•]

	 	—
	 	—
	 
	TOTALS

	 	           Partnership Units	 	 

	 	 	 	 	 	 	 
	 	 	Partnership	 	 	 	 
	Name of Limited Partners	 	Units	 	LTIP Units	 	Address
	General Partner:

Schottenstein Realty
Trust, Inc.

	 	 	 	 	 	4300 East Fifth Avenue

Columbus, OH 43219

Attention: Benton E. Kraner

Facsimile No.:

	 	 	 	 	 	 	 	 	 
	 	 	Common	 	 	 	 
	Name of Common Unitholders	 	Units	 	 	 	Address
	 

	 	 
	 	 

A-1

 

Exhibit B

NOTICE OF REDEMPTION

			
	To:	 	Schottenstein Realty Trust, Inc.

4300 East Fifth Avenue

Columbus, OH 43219

Attention: Benton E. Kraner

     The undersigned Limited Partner or Assignee hereby irrevocably tenders for Redemption ____
Common Units in Schottenstein Realty LP in accordance with the terms of the Amended and Restated
Agreement of Limited Partnership of Schottenstein Realty LP, dated as of April __, 2011 (the
“Agreement”), and the Redemption rights referred to therein. The undersigned

     Limited Partner or Assignee:

     (a) undertakes (i) to surrender such Common Units and any certificate therefor at the closing
of the Redemption and (ii) to furnish to the General Partner, prior to the Specified Redemption
Date, the documentation, instruments and information required under Section 8.06 of the Agreement;

     (b) directs that the certified check representing the Cash Amount, or the REIT Shares Amount,
as applicable, deliverable upon the closing of such Redemption be delivered to the address
specified below;

     (c) represents, warrants, certifies and agrees that:

     (i) the undersigned Limited Partner or Assignee is a Qualifying Party,

     (ii) the undersigned Limited Partner or Assignee has, and at the closing of the
Redemption will have, good, marketable and unencumbered title to such Common Units, free
and clear of the rights or interests of any other person or entity,

     (iii) the undersigned Limited Partner or Assignee has, and at the closing of the
Redemption will have, the full right, power and authority to tender and surrender such
Common Units as provided herein, and

     (iv) the undersigned Limited Partner or Assignee has obtained the consent or approval
of all persons and entities, if any, having the right to consent to or approve such tender
and surrender; and

     (d) acknowledges that he will continue to own such Common Units until and unless either (1)
such Common Units are acquired by the General Partner pursuant to Section 8.06(b) of the Agreement
or (2) such redemption transaction closes.

B-1

 

     All capitalized terms used herein and not otherwise defined shall have the same meaning
ascribed to them respectively in the Agreement.

	 	 	 

	Dated: ____________

	 	Name of Limited Partner or Assignee:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Signature of Limited Partner or Assignee)
	 
	 	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(City) (State) (Zip Code)
	 
	 	 
	 

	 	Signature Medallion Guaranteed by:
	Issue Check Payable/REIT Shares to:
	 	 
	 

	 	 
	Name:
	 	 
	 

	 	 
	Please insert social security or identification 
	 	 
	 

	 	 
	number:
	 	 
	 

	 	 

B-2

 

Exhibit C

NOTICE OF ELECTION BY PARTNER

TO CONVERT LTIP UNITS INTO COMMON UNITS

     The undersigned Holder of LTIP Units hereby irrevocably (i) elects to convert the number of
LTIP Units in Schottenstein Realty LP (the “Partnership”) set forth below into Common Units
in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of the
Partnership, as amended; and (ii) directs that any cash in lieu of Common Units that may be
deliverable upon such conversion be delivered to the address specified below. The undersigned
hereby represents, warrants, and certifies that the undersigned (a) has title to such LTIP Units,
free and clear of the rights of interests of any other person or entity other than the Partnership;
(b) has the full right, power, and authority to cause the conversion of such LTIP Units as provided
herein; and (c) has obtained the consent or approval of all persons or entitles, if any, having the
right to consent or approve such conversion.

	 	 	 

	Name of Holder:
	 	 
	 

	 	 
	 

	 	(Please Print: Exact Name as Registered with Partnership)

	 	 	 

	Number of LTIP Units to be Converted:
	 	 
	 

	 	 

	 	 	 

	Date of this Notice:
	 	 
	 

	 	 

 
(Signature of Holder: Sign Exact Name as Registered with Partnership)

	 	 	 

	 
	(Street Address)
	 	 
	 

	 	 

					
	 	 	 	 	 
	 
	(City)
	 	(State)
	 	(Zip Code)

	 	 	 

	Signature Medallion Guaranteed by:
	 	 
	 

	 	 

C-1

 

Exhibit D

NOTICE OF ELECTION BY PARTNERSHIP TO

FORCE CONVERSION OF LTIP UNITS INTO COMMON UNITS

     Schottenstein Realty LP (the “Partnership”) hereby irrevocably elects to cause the
number of LTIP Units held by the Holder of LTIP Units set forth below to be converted into Common
Units in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of
the Partnership, as amended.

	 	 	 

	Name of Holder:
	 	 
	 

	 	 
	 

	 	(Please Print: Exact Name as Registered with Partnership)

	 	 	 

	Number of LTIP Units to be Converted:
	 	 
	 

	 	 

	 	 	 

	Date of this Notice:
	 	 
	 

	 	 

D-1

 

Exhibit E

Form of Tax Protection Agreement

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