Document:

Amendment No. 8 to the Receivables Purchase Agreement

 EXHIBIT 10.1 
 EXECUTION VERSION 
 AMENDMENT NO. 8 
 TO 
 RECEIVABLES PURCHASE AGREEMENT 
 THIS AMENDMENT NO. 8 TO RECEIVABLES PURCHASE AGREEMENT dated as of March 13, 2009 (this “Amendment”) is entered into among AVISTA
RECEIVABLES CORP. (the “Seller”), AVISTA CORPORATION (the “Servicer”), RANGER FUNDING COMPANY LLC (formerly known as Receivables Capital Company LLC) (the “Conduit Purchaser”) and BANK OF AMERICA,
N.A., as “Committed Purchaser” (in such capacity, the “Committed Purchaser”) and as “Administrator” (in such capacity, the “Administrator”) under the Receivables Purchase Agreement defined below.
Capitalized terms used herein but not defined herein shall have the meanings provided in such Receivables Purchase Agreement. 
 W I T N E
S S E T H 
 WHEREAS, the Seller, the Servicer, the Conduit Purchaser, the Committed Purchaser and the Administrator are parties to that
certain Receivables Purchase Agreement dated as of May 29, 2002 (as amended, supplemented or otherwise modified from time to time, the “Receivables Purchase Agreement”); and 
 WHEREAS, the Seller, the Servicer, the Conduit Purchaser, the Committed Purchaser and the Administrator have agreed to amend the Receivables Purchase
Agreement on the terms and conditions hereafter set forth; 
 NOW, THEREFORE, in consideration of the premises set forth above, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller, the Servicer, the Conduit Purchaser, the Committed Purchaser and the Administrator hereby agree as follows: 
 SECTION 1. Amendment. Subject to the fulfillment of the condition precedent set forth in Section 2 below, the Receivables Purchase
Agreement is hereby amended as follows: 
 1.1 Section 3.03(b) of the Receivables Purchase Agreement is hereby
amended by deleting the reference to “2% per annum above the Alternate Base Rate” set forth in such section and replacing such reference with “a rate equal to the then applicable Earned Discount Rate”. 

1.2 Section 4.01 of the Receivables Purchase Agreement is amended and restated in its entirety to read as follows:

 SECTION 4.01. Fees. Seller shall pay to the Administrator and the Purchasers the fees in the amounts and at the
times set forth herein and in the fee letter, dated March 13, 2009, among the Administrator, Parent and Seller (as amended, restated, supplemented or otherwise modified from time to time, the “Fee Letter”). 

 1.3 Article XII of the Receivables Purchase Agreement is hereby amended to add the
following new Section 12.03 to the end of such article: 
 SECTION 12.03. Federal Reserve Bank. Notwithstanding
any other provision of this Agreement to the contrary, any Purchaser may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, the Asset Interest and any rights to payment of Earned
Discount and fees related to the Transaction Documents) under this Agreement to secure obligations of such Investor to a Federal Reserve Bank, without notice to or consent of any party hereto; provided that no such pledge or grant of a
security interest shall release any Purchaser from any of its obligations hereunder, or substitute any such pledgee or grantee for such Purchaser as a party hereto. 
 1.4 Section 4.02(a) of the Receivables Purchase Agreement is hereby amended to add the phrase “or (iii) any
Accounting Based Consolidation Event” immediately following the words “Regulatory Change”. 
 1.5 Appendix
A to the Receivables Purchase Agreement is amended by adding the following definition in the appropriate alphabetical location: 
 “Accounting Based Consolidation Event” means the consolidation, for financial and/or regulatory accounting purposes, of all or any portion of the assets and liabilities of the Conduit Purchaser that are subject to this
Agreement or any other Transaction Document with all or any portion of the assets and liabilities of an Affected Party as the result of the existence of, or occurrence of any change in, accounting standards or the issuance of any pronouncement,
interpretation or release, by any accounting body or any other body charged with the promulgation or administration of accounting standards, including, without limitation, the Financial Accounting Standards Board, the International Accounting
Standards Board, the American Institute of Certified Public Accountants, the Federal Reserve Board of Governors and the Securities and Exchange Commission, and shall occur as of the date that such consolidation (i) shall have occurred with
respect to the financial statements of the Conduit Purchaser or any of its affiliates or (ii) shall have been required to have occurred, regardless of whether such financial statements were prepared as of such date. 
 1.6 The definition of “Concentration Limit” set forth in Appendix A to the Receivables Purchase Agreement is amended and
restated in its entirety to read as follows: 
 “Concentration Limit” at any time for (1) any Obligor
that is a Governmental Authority (other than any federal Governmental Authority), means an amount equal to (i) the aggregate Unpaid Balance of all Eligible Receivables at such time times (ii) 1% (or in the case of Bonneville Power
Authority, 2% so long as the Administrator has confirmed in writing that it has received satisfactory evidence of the assignability of such Receivables), (2) all Obligors (on a combined basis) that are federal Governmental Authorities, means an
amount equal to (i) the aggregate Unpaid Balance of all Eligible Receivables at such time times (ii) 2% and (3) any other Obligor means an amount equal to (i) the aggregate Unpaid Balance of all Eligible Receivables at
such time times (ii) the applicable percentage as set forth below opposite the appropriate ratings of such Obligor’s long-term and short-term unsecured debt. Any Obligor that has a split rating shall be deemed to be in the lower
rating category. 
  

 2 

										
	Long Term Rating	  	Short-Term Rating	  	Applicable Percentage	 
	S&P	  	Moody’s	  	S&P	  	Moody’s	  	 	 
	A+ or better	  	A1 or better	  	A-1	  	P-1	  	6.0	%
	BBB+ to A	  	Baa1 to A2	  	A-2	  	P-2	  	4.0	%
	BBB- to BBB	  	Baa3 to Baa2	  	A-3	  	P-3	  	2.0	%
	Lower than	  		  	Lower than	  	1.5	%
	BBB-/Baa3	  		  	BBB-/Baa3	  		
	or Not Rated	  		  	or Not Rated	  		

 1.7 The definition of “Earned Discount Rate” set forth in Appendix
A to the Receivables Purchase Agreement is amended and restated in its entirety as follows: 
 “Earned Discount
Rate” means for any Settlement Period; 
 (a) in the case of any portion of the Capital funded by a Liquidity Funding
or by a Committed Purchaser, the sum of (i) the Federal Funds Rate for such Settlement Period plus (ii) 3.00% per annum; and 
 (b) in the case of any portion of the Capital funded by any Commercial Paper Notes, the CP Rate for such Settlement Period; 
 provided, however, that on any day during a Settlement Period when any Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing, the Earned Discount Rate for the Capital shall mean the
sum of (i) the Federal Funds Rate for such Settlement Period plus (ii) 4.00% per annum. 
 1.8 The definition
of “Termination Date” set forth in Appendix A to the Receivables Purchase Agreement is amended to delete the reference to “March 13, 2009” in clause (c) thereof and substitute “March 12, 2010” therefor.

 SECTION 2. Condition Precedent. The effectiveness of this Amendment is subject to the satisfaction of the condition precedent that
the Administrator shall have received (i) counterparts (which receipt may be by facsimile transmission) of (x) this Amendment, executed by the Seller, the Servicer, the Conduit Purchaser, the Committed Purchaser and the Administrator and
(y) the Fee Letter (as defined after giving effect hereto) and (ii) all fees payable on the date hereof pursuant to the Fee Letter. 
  

 3 

 SECTION 3. Representations and Warranties. Each of the Seller and the Servicer hereby represents
and warrants that (i) this Amendment constitutes its legal, valid and binding obligation, enforceable against such party in accordance with its terms, (ii) before and after giving effect to this Amendment, the representations and
warranties of each such party, respectively, set forth in Article 6 of the Receivables Purchase Agreement are true and correct in all material respects with the same effect as if made on the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date. The Seller further represents and warrants that before and after giving effect to this Amendment, no event has occurred and is continuing that constitutes a Liquidation Event or an
Unmatured Liquidation Event. 
 SECTION 4. Reference to and Effect on the Receivables Purchase Agreement. 
 4.1 Upon the effectiveness of this Amendment, (i) each reference in the Receivables Purchase Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Receivables Purchase Agreement, as amended hereby, and (ii) each reference to the Receivables Purchase Agreement in any
other Transaction Document or any other document, instrument or agreement executed and/or delivered in connection therewith, shall mean and be a reference to the Receivables Purchase Agreement as amended hereby. 
 4.2 Except as specifically amended above, the terms and conditions of the Receivables Purchase Agreement, of all other Transaction
Documents and any other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect and are hereby ratified and confirmed. 
 4.3 The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the
Administrator, the Conduit Purchaser or the Committed Purchaser under the Receivables Purchase Agreement or any other Transaction Document or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of
any provision contained therein, in each case except as specifically set forth herein. 
 SECTION 5. Execution in Counterparts. This
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one
and the same instrument. 
 SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK. 
 SECTION 7. Section Titles. The section titles contained in this Amendment are and shall be without
substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
 [THE
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
signatories thereunto duly authorized as of the date first above written. 
  

			
	 AVISTA RECEIVABLES CORP.,
 as
Seller

		
	By:	 	/s/ Diane C. Thoren
		 	Name: Diane C. Thoren
		 	Title: Vice President
	
	 AVISTA CORPORATION,
 as
Servicer

		
	By:	 	/s/ Diane C. Thoren
		 	Name: Diane C. Thoren
		 	Title: Assistant Treasurer
	
	 RANGER FUNDING COMPANY LLC (formerly known as Receivables Capital Company LLC),
 as Conduit Purchaser

		
	By:	 	/s/ Doris J. Hearn
		 	Name: Doris J. Hearn
		 	Title: Vice President
	
	 BANK OF AMERICA, N.A.,
 as Committed
Purchaser and as Administrator

		
	By:	 	/s/ Jeremy Grubb
		 	Name: Jeremy Grubb
		 	Title: Vice President

 Signature Page to 
 Amendment No. 8 to Receivables Purchase Agreement 

 APPENDIX A 
 DEFINITIONS 
 This is Appendix A to the Receivables Purchase Agreement dated as of May 29, 2002 among
Avista Receivables Corp., as Seller, Eaglefunding Capital Corporation, as Conduit Purchaser, Avista Corporation, as initial Servicer, Fleet National Bank, as Committed Purchaser, and Fleet Securities, Inc., as Administrator (as amended,
supplemented or otherwise modified from time to time, the “Agreement”). Unless otherwise indicated, all Section, Exhibit and schedule references in this Appendix are to Sections of and Exhibits and Schedules to the Agreement.

 A. Defined Terms. As used in the Agreement, unless the context requires a different meaning, the following terms have the meanings
indicated hereinbelow: 
 “Administrator” has the meaning set forth in the preamble. 
 “Administrator’s Office” means the office of the Administrator at 100 Federal Street, Eleventh Floor, Boston, Massachusetts 02110
or such other address as shall be designated by the Administrator in writing to Seller, Parent and each Purchaser. 
 “Affected
Party” means each of each Purchaser, each Program Support Provider, any assignee or participant of any Purchaser or any Program Support Provider, Fleet Securities, any successor to Fleet Securities as Administrator, and any sub-agent of the
Administrator. 
 “Affiliate” when used with respect to a Person means any other Person, directly or indirectly,
controlling, controlled by, or under common control with such Person. 
 “Allocation Limit” has the meaning set forth in
Section 1.01. 
 “Alternate Base Rate” means, on any date, a fluctuating rate of interest per
annum equal to the higher of 
 (a) the rate of interest most recently announced by the Liquidity Agent in Boston,
Massachusetts, as its prime rate; and 
 (b) the Federal Funds Rate most recently determined by the Liquidity Agent plus 0.50% per
annum. 
 The Alternate Base Rate is not necessarily intended to be the lowest rate of interest determined by the Liquidity Agent in connection with
extensions of credit. 
 “Applicable Law” means all applicable laws, rules, regulations (including temporary and final
income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental Authority, and applicable judgments, decrees, injunctions, writs, orders or like action of any
court, arbitrator or other administrative, judicial or quasi-judicial tribunal or agency of competent jurisdiction. 

 “Asset Interest” means an undivided ownership interest determined from time to time as
provided in Section 1.04(b) in all Pool Assets. 
 “Avista Utilities” means the operating division of the Parent
which represents all the regulated utility operations of the Parent that are responsible for retail electric and natural gas distribution, electric transmission services and electric generation and production. 
 “Avista Utilities EBITDA” means, for any period, (a) Avista Utilities Net Income for such period plus (b) in each case,
without duplication and to the extent deducted in computing Avista Utilities Net Income for such period, the sum of such period of (i) income tax expense, (ii) interest expense, (iii) depreciation and amortization expense,
(iv) any extraordinary or non-recurring losses and (v) other non-cash items reducing such Avista Utilities Net Income for such period, minus (c) in each case, without duplication and to the extent added in computing Avista Net Income
for such period, the sum of for such period of (i) any extraordinary or non-recurring gains and (ii) other non-cash items increasing Avista Utilities Net Income for such period, all as determined in accordance with GAAP, plus (d) for
any period including the fiscal quarter ended December 31, 2001, $20,600,000 of power cost deferrals deducted in computing Avista Utilities Net Income for such fiscal quarter but incurred with respect to prior fiscal quarters. 
 “Avista Utilities Interest Expense” means, for any period, interest expense of Avista Utilities for such period determined in accordance
with GAAP. 
 “Avista Utilities Net Income” means, for any period, the net income or loss of Avista Utilities for such
period determined in accordance with GAAP. 
 “Business Day” means a day other than a Saturday or a Sunday on which both
(a) the Administrator at its principal office in Boston, Massachusetts is open for business and (b) commercial banks in New York City and Spokane, Washington are not authorized or required to be closed for business. 
 “Capital” means at any time with respect to the Asset Interest an amount equal to (a) the aggregate of the amounts theretofore paid
to Seller for Purchases pursuant to Section 1.01, less (b) the aggregate amount of Collections theretofore received and actually distributed to, and received by, a Purchaser on account of the Capital pursuant to
Section 3.01. 
 “Capital Lease Obligations” means as to any Person, the obligations of such Person to pay rent
or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and, for the purposes of the Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. 
 “Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing. 
  

 -2- 

 “Change in Control” means any of the following: 
 (a) in relation to Parent, the acquisition following the date hereof by any person or group of persons (within the meaning of
Section 13 or 14 of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under the Exchange Act) of issued and outstanding shares of the capital stock of Parent
entitled (without regard to the occurrence of any contingency) to vote for the election of members of the board of directors of Parent and having a then present right to exercise 30% or more of the voting power for the election of members of the
board of directors of Parent attached to all such outstanding shares of capital stock of Parent, unless otherwise agreed in writing by the Liquidity Banks and the Administrator; or 
 (b) the creation or imposition of any Lien on any shares of capital stock of Seller; or 
 (c) the failure by Parent to own all of the issued and outstanding capital stock of Seller. 
 “Collection Ratio” means, for any Cut-Off Date, the ratio (expressed as a percentage) computed as of such Cut-Off Date by dividing
(x) the Collections received during the month ending on such Cut-Off Date by (y) the amount of Sales generated during the month ending on the immediately preceding Cut-Off Date. 
 “Collections” means, with respect to any Receivable, all funds which either (a) are received by Seller, Servicer, the Originator or
any other Person from or on behalf of the related Obligors in payment of any amounts owed (including, without limitation, purchase prices, finance charges, interest and all other charges) in respect of such Receivable, or applied to such amounts
owed by such Obligors (including, without limitation, insurance payments that Seller, the Originator or Servicer applies in the ordinary course of its business to amounts owed in respect of such Receivable and net proceeds of sale or other
disposition of repossessed goods or other collateral or property of the Obligor or any other party directly or indirectly liable for payment of such Receivable and available to be applied thereon), or (b) are deemed to have been received by
Seller or any other Person as a Collection pursuant to Section 3.02. 
 “Commercial Paper Holders” means the
holders from time to time of the Commercial Paper Notes. 
 “Commercial Paper Notes” means short-term promissory notes
issued or to be issued by Conduit Purchaser, or the proceeds of which are loaned to Conduit Purchaser, to fund its investments in accounts receivable or other financial assets. 
 “Committed Purchaser” has the meaning set forth in the preamble. 
 “Commitment” means with respect to any Committed Purchaser, the amount listed opposite such Committed Purchaser’s name on the
signature page to the Agreement. 
  

 -3- 

 “Commitment Fee” means, for each day, the amount equal to the product of (x) the
unused Liquidity Commitment Amount on such day, times (y) the Commitment Fee Rate, times (z) 1/360. 
 “Commitment Fee Rate” has the meaning set forth in the Fee Letter. 
 “Concentration Limit” at any
time for (1) any Obligor that is a Governmental Authority, means an amount equal to (i) the aggregate Unpaid Balance of all Eligible Receivables at such time times (ii) 1% (or in the case of Bonneville Power Authority, 2% so
long as the Administrator has confirmed in writing that it has received satisfactory evidence of the assignability of such Receivables) and (2) any other Obligor means an amount equal to (i) the aggregate Unpaid Balance of all Eligible
Receivables at such time times (ii) the applicable percentage as set forth below opposite the appropriate ratings of such Obligor’s long-term and short-term unsecured debt. Any Obligor that has a split rating shall be deemed to be
in the lower rating category. 
  

									
	 Long Term Rating
	  	 Short-Term Rating
	  	 Applicable
 Percentage

	 S&P
	  	 Moody’s
	  	 S&P
	  	 Moody’s
	  
	A+ or better	  	A1 or better	  	A-1	  	P-1	  	8.0%
	BBB+ to A	  	Baa1 to A2	  	A-2	  	P-2	  	6.0%
	BBB- to BBB	  	Baa3 to Baa2 A-3	  	P-3	  		  	3.0%
	 Lower than
     BBB-/Baa3 or Not
Rated
	  		  	 Lower than
     BBB-/Baa3 or Not
Rated
	  		  	2.0%

 “Conduit Purchaser” has the meaning set forth in the preamble. 

“Consolidated Total Capitalization” on any date means the sum, without duplication, of the following with respect to the Parent and
its consolidated subsidiaries: (a) total capitalization as of such date, as determined in accordance with GAAP, (b) the current portion of liabilities which as of such date would be classified in whole or part as long-term debt in
accordance with GAAP (it being understood that the noncurrent portion of such liabilities is included in the total capitalization referred to in clause (a)), (c) all obligations as lessee which, in accordance with GAAP, are capitalized as
liabilities (including the current portion thereof), and (d) all other liabilities which would be classified as short-term debt in accordance with GAAP. 
 “Consolidated Total Debt” on any date means the sum, without duplication, of the following with respect to the Parent and its consolidated subsidiaries: (a) all liabilities which as of such date
would be classified in whole or in part as long-term debt in accordance with GAAP (including the current portion thereof), (b) all obligations as lessee which, in accordance with GAAP, are capitalized as liabilities (including the current
portion thereof), (c) all other liabilities which would be classified as short-term debt in accordance with GAAP, and (d) all Guarantee Obligations of or by the Parent. 
  

 -4- 

 “Contract” means a contract between the Originator and any Person, or an invoice or bill
from the Originator to any Person, pursuant to or under which such Person shall be obligated to make payments for products or services to the Originator. A “related” Contract with respect to the Receivables means a Contract under which
Receivables in the Receivables Pool arise, which evidence such Receivables, or which is relevant to the collection or enforcement of such Receivables. 
 “Contractual Obligation” with respect to any Person, means any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is party or by
which it or any of its Property is bound. 
 “CP Rate” for any Settlement Period means the per annum rate equivalent to the
“weighted average cost” (as defined below) related to the issuances of Commercial Paper Notes that are allocated, in whole or in part, by the Conduit Purchaser (or by the Administrator) to fund or maintain the Asset Interest (and which may
also be allocated in part to the funding of other assets of the Conduit Purchaser); provided, however, that if any component of such rate is a discount rate, in calculating the “CP Rate” for such Settlement Period, the
Conduit Purchaser shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent rate per annum. As used in this definition, the Conduit Purchaser’s “weighted average cost”
shall consist of (w) the actual interest rate (or discount) paid to purchasers of the Conduit Purchaser’s Commercial Paper Notes, together with the Dealer Fee, to the extent allocated, in whole or in part, to the Conduit Purchaser’s
Commercial Paper Notes by the Conduit Purchaser (or the Administrator), (x) certain documentation and transaction costs associated with the issuance of such Commercial Paper Notes, (y) any incremental carrying costs incurred with respect
to Commercial Paper Notes maturing on dates other than those on which corresponding funds are received by the Conduit Purchaser and (z) other borrowing by the Conduit Purchaser, including borrowings to fund small or odd dollar amounts that are
not easily accommodated in the commercial paper market. 
 “Credit Agreement” means the Credit Agreement, dated as of
May 21, 2002, among Avista Corporation, the banks party thereto, Keybank and Washington Mutual Bank, as Co-Agents, U.S. Bank, National Association, as Managing Agent, Fleet National Bank and Wells Fargo Bank, as Documentation Agents, Union Bank
of California, N.A., as Syndication Agent, and The Bank of New York, as Administrative Agent and Issuing Bank. 
 “Credit and
Collection Policy” means those credit and collection policies and practices relating to Contracts and Receivables described in Schedule 7.01(g), as modified in accordance with Section 7.03(c). 
 “Cut-Off Date” means the last day of each calendar month. 
 “Dealer Fee” means, the dealer or placement agent fees or commissions incurred by the Conduit Purchaser in connection with its issuance of Commercial Paper Notes. 
 “Deemed Collection” has the meaning set forth in the Purchase Agreement. 
  

 -5- 

 “Default Ratio” means the ratio (expressed as a percentage) computed as of a Cut-Off
Date by dividing (x) the Gross Write-off for the month ending on such Cut-Off Date by (y) the aggregate amount of Sales for the month ending on the fourth preceding Cut-Off Date. 
 “Defaulted Receivable” means a Receivable: (a) as to which any payment, or part thereof, remains unpaid for more than 90 days from
the original due date for such Receivable, (b) as to which the Obligor thereof is the subject of an Event of Bankruptcy, or (c) which, consistent with the Credit and Collection Policy, would be written off the Seller’s books as
uncollectible. 
 “Delinquency Ratio” means, for any Cut-Off Date, the ratio (expressed as a percentage) computed as of such
Cut-Off Date by dividing (x) the aggregate Unpaid Balance of all Delinquent Receivables by (y) the aggregate Unpaid Balance of all Pool Receivables on such Cut-Off Date. 
 “Delinquent Receivable” means a Receivable as to which any payment, or part thereof, remains unpaid for more than 60 days from the
original due date for such Receivable, but is not a Defaulted Receivable. 
 “Dilution” means any credit, adjustment,
rebate, refund or setoff with respect to any Receivable granted or allowed by Seller or any Affiliate of Seller. 
 “Dilution
Reserve” means, at any time, an amount equal to (i) the Net Pool Balance at such time times (ii) the most recently calculated Dilution Reserve Percentage. 
 “Dilution Reserve Percentage” as measured on any Reporting Date means a percentage determined in accordance with the following formula:

 [(SF x ED) + ((DS-ED) x DS/ED)] x DHR where: 
  

					
	 SF
	  	=	  	the Stress Factor, which shall be 2.0;
			
	 ED
	  	=	  	the “Expected Dilution”, which shall be equal to the twelve-month rolling average Sales-Based Dilution Ratio, expressed as a percentage;
			
	 DS
	  	=	  	the “Dilution Spike”, which shall be equal to the highest average of the Sales-Based Dilution Ratios for three successive Cut-Off Dates over the immediately preceding twelve
months, expressed as a percentage; and
			
	 DHR
	  	=	  	the “Dilution Horizon Ratio”, which shall be equal to the Sales for the month ending on the related Cut-Off Date divided by the Net Pool Balance as of such Cut-Off
Date.

 “Dollars” means dollars in lawful money of the United States of America.

  

 -6- 

 “Dynamic Loss Reserve Percentage” shall be measured as an amount calculated pursuant to
the following formula: 
  

					
	 DLRP
	  	=	  	LR x LH x SF

 where: 
  

					
	 DLRP
	  	=	  	the Dynamic Loss Reserve Percentage;
			
	 LR
	  	=	  	the Loss Ratio, which shall be equal to the highest average of the Default Ratios for any three consecutive calendar months during the previous twelve calendar months;
			
	 LH
	  	=	  	the Loss Horizon, which shall be equal to the cumulative Sales over the previous three months divided by the Net Pool Balance as of the most recent Cut-Off Date; and
			
	 SF
	  	=	  	the Stress Factor, which shall be 2.

 “Earned Discount” means for any Settlement Period: 
  

	
	C x ER x ED + LF
	        360

 where: 
  

					
	 C
	  	=	  	the daily average (calculated at the close of business each day) of the Capital during such Settlement Period,
			
	 ER
	  	=	  	the Earned Discount Rate for such Settlement Period,
			
	 ED
	  	=	  	the actual number of days elapsed during such Settlement Period, and
			
	 LF
	  	=	  	the Liquidation Fee, if any, during such Settlement Period.

 “Earned Discount Rate” means for any Settlement Period: 
 (a) in the case of any portion of the Capital funded by a Liquidity Funding or by a Committed Purchaser, the sum of (i) the
Eurodollar Rate (Reserve Adjusted) for such Settlement Period, plus (ii) the then applicable spread over the Eurodollar Rate (Reserve Adjusted) or its equivalent set forth in the Credit Agreement (or if the Credit Agreement is no longer
in effect, the spread that would have been applicable if the Credit Agreement were still in effect); and 
 (b) in the case of
any portion of the Capital funded by any Commercial Paper Notes, the CP Rate for such Settlement Period; 
 provided, however, that on any day
during a Settlement Period when any Liquidation Event or Unmatured Liquidation Event shall have occurred and be continuing, the Earned Discount Rate for the Capital shall mean the higher of (i) the Alternate Base Rate in effect on such day plus
2% per annum and (ii) the Eurodollar Rate (Reserve Adjusted) for such Settlement Period plus 2% per annum. 
 “Eligible Receivable” means, at any time, a Receivable: 
 (a) which is
originated by the Originator in the ordinary course of its business; 
 (b) which constitutes an “account” as
defined in the UCC; 
  

 -7- 

 (c) the Obligor of which is (1) not an Affiliate of Seller and (2) is a
resident of the United States. 
 (d) which was purchased or otherwise acquired by Seller pursuant to the Purchase Agreement
and which was designated by the Originator as an “Eligible Receivable” pursuant to the Purchase Agreement; 
 (e)
which is not a Delinquent Receivable or a Defaulted Receivable; 
 (f) with respect to which the warranty of Seller in
Section 6.01(k) is true and correct; 
 (g) the sale of which, or of an undivided interest in which, does not
contravene or conflict with Applicable Law, or require the consent of the Obligor or any other Person; 
 (h) which is
denominated and payable only in Dollars in the United States; 
 (i) which arises under a Contract, which contract has been
duly authorized by the parties thereto and that, together with such Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of the Obligor of such Receivable enforceable against such Obligor in accordance with
its terms and is not subject to any offset or defense whatsoever (other than discharge in bankruptcy and payment); 
 (j)
which, together with the Contract related thereto, does not contravene in any material respect any Applicable Law and with respect to which no party to the Contract related thereto is in violation of any Applicable Law in any material respect;

 (k) which (i) satisfies all material applicable requirements of the Credit and Collection Policy and
(ii) complies with such other criteria and requirements (other than those relating to the collectibility of such Receivable) as the Administrator may from time to time specify to Seller in writing in the exercise of reasonable business
judgment; 
 (l) as to which the payment terms have not been altered or extended so as to materially affect the collectibility
of such Receivable; 
 (m) the Unpaid Balance of which is payable within 45 days or less from the invoice date therefor; 
 (n) which are not Receivables owed by an Obligor for which more than 20% of the aggregate Unpaid Balance of Receivables of such Obligor
constitute Defaulted Receivables; 
 (o) which arise from the completion of the sale and delivery of goods and services
performed, and which do not represent an invoice in advance of such completion; and 
  

 -8- 

 (p) which are not subject to any contingent performance requirements of the Seller or the
Originator. 
 “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time.

 “Eurodollar Business Day” means a day of the year on which dealings are carried on in the eurodollar interbank market and
banks are open for business in London and are not required or authorized to close in New York City. 
 “Eurodollar Rate (Reserve
Adjusted)” means, with respect to any Settlement Period and any portion of the Capital, a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined pursuant to the following formula: 
  

					
	Eurodollar Rate	 	=	  	      Eurodollar Rate
	(Reserve Adjusted)	 		  	        1 – Eurodollar
		 		  	Reserve Percentage

 where: 
 “Eurodollar Rate” means, with respect to any Settlement Period and any portion of the Capital, the rate per annum at which Dollar deposits in immediately available funds are offered to the Eurodollar
Office of the Administrator two Eurodollar Business Days prior to the beginning of such period by prime banks in the interbank eurodollar market at or about 11:00 a.m., New York City time for delivery on the first day of such Settlement Period, for
the number of days comprised therein and in an amount equal or comparable to the applicable portion of the Capital for such Settlement Period. 
 “Eurodollar Reserve Percentage” means, with respect to any Settlement Period, the then maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/100th of 1%) prescribed by the Federal Reserve Board
for determining the maximum reserve requirements applicable to “Eurocurrency Liabilities” pursuant to Regulation D having a term comparable to such Settlement Period. 
 “Event of Bankruptcy” shall be deemed to have occurred with respect to a Person if either: 
 (a) any case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the
liquidation, reorganization, debt arrangement, dissolution, winding up, or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or
all or substantially all of its assets, or any similar action with respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue
undismissed, or unstayed and in effect, for a period of 60 consecutive days; or an order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect
and shall either not be contested or shall remain undismissed for 60 consecutive days; or 
  

 -9- 

 (b) such Person shall commence a voluntary case or other proceeding under any applicable
bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) for such Person or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally
as they become due, or, if a corporation or similar entity, its board of directors shall vote to implement any of the foregoing. 
 “Excess Amount” as of any date, means the amount, if any, by which the sum of the Capital, plus the Required Reserves on such date exceeds the Net Pool Balance, as most recently calculated. 
 “Exchange Act” means the Securities and Exchange Act of 1934, as amended. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal (for each day during such period)
to 
 (a) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York; or 
 (b) if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions
received by Fleet Securities from three federal funds brokers of recognized standing selected by it. 
 “Federal Reserve
Board” means the Board of Governors of the Federal Reserve System, or any successor thereto or to the functions thereof. 
 “Fee Letter” has the meaning set forth in Section 4.01. 
 “Fees” means the Commitment
Fee and the Program Fee. 
 “Final Payout Date” means the date following the Termination Date on which the Capital shall
have been reduced to zero and all other amounts payable by Seller to Purchasers, the Administrator, the Affected Parties and the Indemnified Parties under the Transaction Documents shall have been paid in full. 
 “Fleet Securities” has the meaning set forth in the preamble. 
 “Funded Percentage” with respect to any Purchaser as of any date means the ratio (expressed as a percentage) of (i) the portion of
the then outstanding Capital funded by such Purchaser divided by (ii) the entire then outstanding Capital. 
  

 -10- 

 “GAAP” means generally accepted accounting principles applicable in the United States
for reporting entities domiciled in the United States as in effect from time to time. 
 “Governmental Action” means all
permits, authorizations, registrations, consents, approvals, waivers, exceptions, variances, orders, judgements, decrees, licenses, exemptions, publications, filings, notices to and declaration of or with, or required by, any Governmental Authority,
or required by any Applicable Law. 
 “Governmental Authority” means any foreign or domestic federal, state, county,
municipal or other governmental or regulatory authority, agency, board, body, commission, instrumentality, court or any political subdivision thereof. 
 “Gross Writeoffs” means for any period the aggregate Unpaid Balance of all Receivables that either become more than 90, but less than 121, days past due during such period or were written off during
such period prior to becoming more than 90 days past due. 
 “Guarantee Obligation” means as to any Person (the
“guaranteeing person”), any obligation of (a) the guaranteeing person or (b) another Person (including, without limitation, any bank under any letter of credit) to induce the creation of which the guaranteeing person has issued a
reimbursement, counter indemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary
obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any Property constituting direct
or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net
worth or solvency of the primary obligor, (ii) to purchase Property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments
for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary
obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated
liability in respect thereof as determined by Parent in good faith. 
 “Hedge Agreements” means any financial futures
contract, option, forward contract, warrant, swap, swaption, collar, floor, cap and other agreement, instrument and derivative and other transactions of a similar nature (whether currency linked, rate linked, index linked, insurance risk linked,
credit risk linked or otherwise) entered into by or on behalf of a Conduit Purchaser. 
  

 -11- 

 “Indebtedness” means of any person at any date, without duplication, (a) all
indebtedness of such person for borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than current trade payables incurred in the ordinary course of such Person’s business, and
overdue trade payables incurred in the ordinary course of such Person’s business to the extent the amount or validity thereof is currently being contested in good faith by appropriate procedures and reserves in conformity with GAAP with respect
thereto have been provided on the books of Parent or its Subsidiaries, as the case may be), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to Property acquired by such person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or
sale of such Property), (e) all Capital Lease Obligations of such Person (the amount of which shall be calculated without regard to imputed interest), (f) all obligations of such Person, contingent or otherwise, as an account party under
acceptance, letter of credit or similar facilities, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any Capital Stock (other than common stock) of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above to the extent quantified as liabilities, contingent obligations or like term in accordance with GAAP on the balance
sheet (including notes thereto) of such Person, (i) all obligations of the kind referred to in clause (a) through (h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be
secured by) any Lien on Property (including, without limitation, accords and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation (but only to the extent of the fair market
value of such Property), (j) all obligations of such Person in respect of Interest Rate Protection Agreements and (k) the liquidation value of any preferred Capital Stock of such Person or its Subsidiaries held by any Person other than
such Person and its Wholly Owned Subsidiaries. 
 “Indemnified Amounts” has the meaning set forth in
Section 13.01. 
 “Indemnified Party” has the meaning set forth in Section 13.01. 
 “Independent Director” shall mean an individual who is not, and never was, (1) a member, stockholder, director, officer, employee,
Affiliate, customer or supplier of, or an individual that has received any benefit (excluding, however, any compensation received in such individual’s capacity as Independent Director) in any form whatever from, or an individual who has
provided any service (excluding, however, any service provided by such individual in such individual’s capacity as Independent Director) in any form whatever to, the Parent or any of its subsidiaries or Affiliates, or (2) an individual
owning beneficially, directly or indirectly, any interest in the Parent, or (3) an individual who is a relative or spouse of an individual described in clause (1) or (2) above. 
 “Interest Rate Protection Agreement” means any interest rate protection agreement, interest rate futures contract, interest rate option,
interest rate cap or other interest rate hedge arrangement to or under which Parent or any of its Subsidiaries is a party or a beneficiary on the date of the Agreement or becomes a party or a beneficiary after the date of the Agreement. 

 

 -12- 

 “Lien” means any mortgage, lien, pledge, encumbrance, charge, title retention or other
security interest of any kind, whether arising under a security agreement, mortgage, deed of trust, assignment, pledge or financing statement or arising as a matter of law, judicial process or otherwise. 
 “Liquidation Event” has the meaning set forth in Section 10.01. 
 “Liquidation Fee” means, for each day in any Settlement Period during the Liquidation Period following the occurrence of a Liquidation
Event, the amount, if any, by which: 
 (a) the additional Earned Discount (calculated without taking into account any
Liquidation Fee) which would have accrued on the reductions of the Capital during such Settlement Period (as so computed) if such reductions had not been made, exceeds 
 (b) the income, if any, received by the related Purchaser from investing the proceeds of such reductions of the Capital. 
 “Liquidation Period” means the period commencing on the Termination Date and ending on the Final Payout Date. 
 “Liquidity Agent” means Fleet National Bank, as agent for the Liquidity Banks under the Liquidity Agreement, or any successor to Fleet
National Bank in such capacity. 
 “Liquidity Agreement” means and includes the Liquidity Purchase Agreement dated as of
May 29, 2002 among Conduit Purchaser, Fleet National Bank, as Liquidity Agent, and certain financial institutions, party thereto as liquidity providers, and any other agreement hereafter entered into by Conduit Purchaser providing for the
making of loans, purchases or undivided interests or other extensions of credit to Conduit Purchaser to support all or part of Conduit Purchaser’s payment obligations with respect to the Commercial Paper Notes or to provide an alternate means
of funding Conduit Purchaser’s investments in accounts receivable or other financial assets. 
 “Liquidity Bank” means
any one of, and “Liquidity Banks” means all of, Fleet National Bank and the other financial institutions that are at any time parties to a Liquidity Agreement as liquidity providers. 
 “Liquidity Commitment Amount” means, at any time, the then aggregate amount of the Liquidity Banks’ commitments under the Liquidity
Agreement. 
 “Liquidity Funding” means a loan or purchase made by the Liquidity Bank (or simultaneous loans or purchases
made by the Liquidity Banks) pursuant to a Liquidity Agreement. 
 “Lock-Box” means any post office box to which Collections
of Pool Receivables are sent. 
 “Lock-Box Account” means any bank account to which Collections of Pool Receivables are sent
or deposited. 
  

 -13- 

 “Lock-Box Agreement” means a letter agreement, in substantially the form of Exhibit
5.01(f), among Seller, Parent, the Administrator and any Lock-Box Bank. 
 “Lock-Box Bank” means any of the banks
holding one or more Lock-Box Accounts for receiving Collections from Pool Receivables. 
 “Loss Reserve” means the product
of (A) the greater of (1) 10%; and (2) the Dynamic Loss Reserve Percentage as most recently calculated and (B) the Net Pool Balance. 
 “Material Adverse Effect” with respect to any event or circumstance, means a material adverse effect on: 
 (i) (A) the operations, financial condition, business or assets of Seller or (B) the business, assets, operations or financial condition of Parent and its Subsidiaries, taken as a whole, which could reasonably be
expected to have a material adverse effect on the creditworthiness of Parent; 
 (ii) the ability of Servicer, the Originator
or Parent to perform its obligations under this Agreement or any other Transaction Document; 
 (iii) the validity,
enforceability or collectibility of this Agreement or any other Transaction Document or the validity, enforceability or collectibility of a material portion of the Receivables; or 
 (iv) the status, existence, perfection, priority or enforceability of the Administrator’s or any Purchaser’s interest in the
Pool Assets. 
 “Mid-Month Report” has the meaning set forth in Section 3.01(a). 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Net Pool Balance” at any time means an amount equal to (i) the aggregate Unpaid Balance of the Eligible Receivables in the Receivables Pool at such time, minus (ii) the aggregate
amount by which the aggregate Unpaid Balance of the Eligible Receivables of each Obligor and its Affiliates exceeds the Concentration Limit for such Obligor at such time, minus (iii) the aggregate amount by which the Unbilled Receivables
Amount at such time exceeds 50% of the amount described in the foregoing clause (i), minus (iv) the aggregate amount by which the aggregate Unpaid Balance of all Receivables owed by Governmental Authorities exceeds 10% of the
amount described in the foregoing clause (i), provided that the subtraction set forth in this clause (iv) shall not become effective until the Reporting Date occurring in August of 2002. 
 “Obligor” means a Person obligated to make payments with respect to a Receivable, including any guarantor thereof. 
 “Originator” means the Parent in its capacity as originator of Receivables. 
 “Parent” has the meaning set forth in the preamble. 
  

 -14- 

 “Percentage” means, with respect to any Committed Purchaser, the ratio, expressed as a
percentage, of (i) such Committed Purchaser’s Commitment divided by (ii) the aggregate Commitments of all of the Committed Purchasers. 
 “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company, government or any
agency or political subdivision thereof or any other entity. 
 “Pool Assets” has the meaning set forth in
Section 1.04(a). 
 “Pool Receivable” means a Receivable in the Receivables Pool. 
 “Postmaster Notice” has the meaning set forth in Section 5.01(f). 
 “Program Agreement” means each Liquidity Agreement, each agreement pursuant to which Conduit Purchaser obtains funding, through the
issuance of Commercial Paper Notes or otherwise, and each other agreement entered into by Conduit Purchaser in connection with its securitization program. 
 “Program Fee” means, for each day, the amount equal to the product of (x) the Capital on such day, times (y) the Program Fee Rate, times (z) 1/360. 
 “Program Fee Rate” has the meaning set forth in the Fee Letter. 
 “Program Information” has the meaning set forth in Section 14.07. 
 “Program Support Provider” means each entity that provides credit enhancement to the Conduit Purchaser, each Liquidity Bank and the
Administrator. 
 “Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or
mixed, and whether tangible or intangible, including, without limitation, Capital Stock. 
 “Purchase” has the meaning set
forth in Section 1.01. 
 “Purchase Agreement” means the Purchase and Sale Agreement, dated as of May 29,
2002, between Seller and the Originator. 
 “Purchase Limit” has the meaning set forth in Section 1.01.

 “Purchase Termination Date” means that day 
 (a) the Administrator declares a Purchase Termination Date in a notice to Seller in accordance with Section 10.02(a); or

 (b) in accordance with Section 10.02(b), becomes the Purchase Termination Date automatically. 
 “Purchaser” means any of Conduit Purchaser and any Committed Purchaser. 
  

 -15- 

 “Purchasers’ Share” of any amount means the then Asset Interest, expressed as a
percentage (but not greater than 100%), times such amount. 
 “Rating Agencies” at any time means those rating
agencies then rating the Commercial Paper Notes. 
 “Receivable” means any right to payment from a Person, whether
constituting an account, chattel paper, instrument or general intangible, arising under a Contract and includes the right to payment of any interest or finance charges and other obligations of such Person with respect thereto. Indebtedness and other
obligations arising from any one transaction, including, without limitation, indebtedness and other obligations represented by an individual invoice or agreement, shall constitute a Receivable separate from a Receivable consisting of the
indebtedness and other obligations arising from any other transaction. 
 “Receivables Pool” means at any time all then
outstanding Receivables, other than Reconveyed Receivables. 
 “Reconveyed Receivable” means a Receivable for which the
Originator has paid the full Unpaid Balance pursuant to the Purchase Agreement. 
 “Regulation D” means Regulation D of the
Federal Reserve Board, or any other regulation of the Federal Reserve Board that prescribes reserve requirements applicable to nonpersonal time deposits or “Eurocurrency Liabilities” as presently defined in Regulation D, as in effect from
time to time. 
 “Regulatory Change” means, relative to any Affected Party 
 (a) any change in (or the adoption, implementation, change in phase-in or commencement of effectiveness of) any 
 (i) United States federal or state law or foreign law applicable to such Affected Party; 
 (ii) regulation, interpretation, directive, requirement or request (whether or not having the force of law) applicable to such Affected
Party of (A) any court, government authority charged with the interpretation or administration of any law referred to in clause (a)(i) or of (B) any fiscal, monetary or other authority having jurisdiction over such Affected Party;
or 
 (iii) GAAP or regulatory accounting principles applicable to such Affected Party and affecting the application to such
Affected Party of any law, regulation, interpretation, directive, requirement or request referred to in clause (a)(i) or (a)(ii) above; or 
 (b) any change in the application to such Affected Party of any existing law, regulation, interpretation, directive, requirement, request
or accounting principles referred to in clause (a)(i), (a)(ii) or (a)(iii) above. 
  

 -16- 

 “Reinvestment” has the meaning set forth in Section 1.03. 
 “Related Security” means, with respect to any Pool Receivable: (a) all of Seller’s or the Originator’s right, title and
interest in and to all Contracts that relate to such Pool Receivable; (b) all security interests or liens and property subject thereto from time to time purporting to secure payment of such Pool Receivable, whether pursuant to the Contract
related to such Pool Receivable or otherwise; (c) all UCC financing statements covering any collateral securing payment of such Pool Receivable; (d) all guarantees and other agreements or arrangements of whatever character from time to
time supporting or securing payment of such Pool Receivable whether pursuant to the Contract related to such Pool Receivable or otherwise; and (e) all of Seller’s and the Originator’s interest in the merchandise (including returned
merchandise), if any, relating to the sale that gave rise to such Pool Receivable. 
 “Reporting Date” has the meaning set
forth in Section 3.01(a). 
 “Required Reserves” means, on any day, an amount equal to the sum of (1) the
Dilution Reserve, plus (2) the Loss Reserve, plus (3) the Yield Reserve, in each case as most recently calculated. 
 “Required Reserves Percentage” means, on any day, (i) the Required Reserves on such day divided by (ii) the Net Pool Balance as of such day. 
 “Requirement of Law” means as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents
of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such person or any of its Property or to which such Person or any of its
Property is subject. 
 “S&P” means Standard & Poor’s Ratings Services. 
 “Sales” means sales of the Originator which generate trade receivables. 
 “Sales-Based Dilution Ratio” as of any Cut-Off Date means (a) the aggregate reduction attributable to Dilutions occurring in the
Unpaid Balance of Pool Receivables which Dilutions were granted during the month ending on such Cut-Off Date; divided by (b) the aggregate amount of Sales for the month immediately preceding the month ending as of such Cut-Off
Date. 
 “Secured Parties” means Purchasers, the Administrator, the Indemnified Parties and the Affected Parties.

 “Seller” has the meaning set forth in the preamble. 
 “Seller’s Share” of any amount means (x) 100% minus the Asset Interest (but such Asset Interest shall not be greater
than 100%) times (y) such amount. 
 “Servicer” has the meaning set forth in Section 8.01(a).

 “Servicer Report” has the meaning set forth in Section 3.01. 
  

 -17- 

 “Servicer Transfer Event” has the meaning set forth in Section 8.01(b).

 “Servicer’s Fee” means, for each day, an amount equal to (x) the Servicer’s Fee Rate, times
(y) the aggregate Unpaid Balance of all Pool Receivables at the close of business on such day, times (z) 1/360. 
 “Servicer’s Fee Rate” means 0.50% per annum or, in the event that Parent is no longer the Servicer, such higher rate as may be charged by the successor Servicer. 
 “Settlement Date” has the meaning set forth in Section 3.01(c). 
 “Settlement Period” means the period (i) in the case of the first Settlement Period, from, and including, the date of the initial
Purchase to, but excluding the next Settlement Date and (ii) thereafter, from, and including, each Settlement Date to, but excluding, the next Settlement Date. 
 “Subsidiary” means a corporation of which Parent and/or its other Subsidiaries own, directly or indirectly, such number of outstanding shares as have more than 50% of the ordinary voting power for the
election of directors. 
 “Successor Notice” has the meaning set forth in Section 8.01(b). 
 “Tangible Net Worth” at any date means a sum equal to: (i) the net book value (after deducting related depreciation, obsolescence,
amortization, valuation, and other proper reserves) at which the tangible assets (which for purposes of this definition shall include Receivables owned by such Person) of a Person would be shown on a balance sheet at such date in accordance with
GAAP minus (ii) the amount at which such Person’s liabilities (other than capital stock and surplus) would be shown on such balance sheet in accordance with GAAP, and including as liabilities all reserves for contingencies and other
potential liabilities. 
 “Termination Date” means the earliest of 
 (a) the date of termination (whether by scheduled expiration, termination on default or otherwise) of any Liquidity Bank’s Commitment
under the Liquidity Agreement; 
 (b) the Purchase Termination Date; 
 (c) with respect to Conduit Purchaser, May 29, 2005, and with respect to each Committed Purchaser, the date of the termination of
such Committed Purchaser’s commitment under the Liquidity Agreement; and 
 (d) the date on which Seller terminates
Purchasers’ right to make Purchases and Reinvestments pursuant to Section 1.05. 
 “Transaction Documents”
means this Agreement, the Lock-Box Agreements, the Purchase Agreement, the Fee Letter and the Initial Purchaser Note. 
  

 -18- 

 “Turnover Rate” means, as of any Cut-Off Date, the ratio (expressed as a percentage) of
(i) the aggregate Unpaid Balance of the Pool Receivables as of the immediately preceding Cut-Off Date, divided by (ii) the aggregate Collections for the month ending on such Cut-Off Date. 
 “UCC” means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions. 
 “Unbilled Receivables Amount” for any date means the aggregate estimate for accrued billings for the most recently ended calendar month
for power used but for which an invoice has not been issued. 
 “Unmatured Liquidation Event” means any event which, with
the giving of notice or lapse of time, or both, would become a Liquidation Event. 
 “Unpaid Balance” of any Receivable
means at any time the unpaid principal amount thereof. 
 “Wholly Owned Subsidiary” mean, as to any Person, any other Person
all of the Capital Stock of which (other than (i) a nominal number of shares held by foreign nationals to the extent required by local law or (ii) directors’ qualifying shares required by law) is owned by such person directly and/or
through other Wholly Owned Subsidiaries. 
 “Yield Reserve” means, at any time, an amount equal to the product of
(i) the Net Pool Balance at such time, times (ii) the sum of (A) the Earned Discount Rate set forth in paragraph (a) of the definition thereof as determined as of the most recent Cut-Off Date, plus (B) the
Servicer’s Fee Rate, divided by (iii) 12, times (iv) 2, times (v), the most recently calculated Turnover Rate. 
 B. Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as
defined in such Article 9. 
 C. Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a
period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”. 
 D. Interpretation. In each Transaction Document, unless a clear contrary intention appears: 
 (i) the singular number includes the plural number and vice versa; 
 (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns
are permitted by the Transaction Documents, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually; 
 (iii) reference to any gender includes each other gender; 
  

 -19- 

 (iv) reference to any agreement (including any Transaction Document), document or
instrument means such agreement, document or instrument as amended, supplemented or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Transaction Documents and reference to any
promissory note includes any promissory note which is an extension or renewal thereof or a substitute or replacement therefor; and 
 (v) reference to any Applicable Law means such Applicable Law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and reference
to any section or other provision of any Applicable Law means that provision of such Applicable Law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or
other provision. 
  

 -20-Sixth Amended and Restated Partnership Agreement

 Exhibit 10.1 
 SIXTH AMENDED AND RESTATED 
 ERP OPERATING LIMITED PARTNERSHIP 
 AGREEMENT OF LIMITED PARTNERSHIP 
 As of 
 March 12, 2009 

 TABLE OF CONTENTS 
  

							
	1.	 	PARTNERSHIP	  	1
		 	1.1	 	Continuation of Partnership; Partnership Interests	  	1
		 	1.2	 	Name	  	2
			
	2.	 	DEFINITIONS	  	2
			
	3.	 	CAPITAL	  	8
		 	3.1	 	Capital Contributions of the Partners	  	8
		 	3.2	 	Issuance and Conversion of Units	  	8
		 	3.3	 	Additional Funds	  	13
		 	3.4	 	Capital Accounts	  	14
		 	3.5	 	Interest on and Return of Capital	  	15
		 	3.6	 	Negative Capital Accounts	  	15
		 	3.7	 	Limit on Contributions and Obligations of Partners	  	16
		 	3.8	 	Redemption and Repurchase of Units	  	16
			
	4.	 	PRINCIPAL OFFICE	  	16
			
	5.	 	PURPOSES AND POWERS OF PARTNERSHIP	  	16
			
	6.	 	TERM	  	17
			
	7.	 	ALLOCATIONS	  	17
		 	7.1	 	Allocation of Net Profits	  	17
		 	7.2	 	Net Losses	  	18
		 	7.3	 	Special Allocations	  	19
		 	7.4	 	Curative Allocations	  	21
		 	7.5	 	Tax Allocations: Code Section 704(c)	  	21
			
	8.	 	CASH AVAILABLE FOR DISTRIBUTION	  	21
		 	8.1	 	Operating Cash Flow	  	21
		 	8.2	 	Capital Cash Flow	  	22
		 	8.3	 	Consent to Distributions	  	23
		 	8.4	 	Right to Limit Distributions	  	23
		 	8.5	 	Withholding	  	23
			
	9.	 	MANAGEMENT OF PARTNERSHIP	  	23
		 	9.1	 	General Partner	  	23
		 	9.2	 	Limitations on Powers and Authorities of Partners	  	24
		 	9.3	 	Limited Partners	  	25
		 	9.4	 	Liability of General Partner	  	25
		 	9.5	 	Indemnity	  	25
		 	9.6	 	Other Activities of Partners and Agreements with Related Parties	  	25
		 	9.7	 	Other Matters Concerning the General Partner	  	25
		 	9.8	 	Partner Exculpation	  	26
		 	9.9	 	General Partner Expenses and Liabilities	  	27
			
	10.	 	BANKING	  	27
			
	11.	 	ACCOUNTING	  	27

							
		 	11.1	 	Fiscal Year	  	27
		 	11.2	 	Books of Account	  	27
		 	11.3	 	Method of Accounting	  	27
		 	11.4	 	Section 754 Election	  	27
		 	11.5	 	Tax Matters Partner	  	28
		 	11.6	 	Administrative Adjustments	  	28
			
	12.	 	TRANSFER OF PARTNERSHIP INTERESTS	  	28
			
	13.	 	ADMISSION OF NEW PARTNERS	  	30
			
	14.	 	TERMINATION, LIQUIDATION AND DISSOLUTION OF PARTNERSHIP	  	30
		 	14.1	 	Termination Events	  	30
		 	14.2	 	Method of Liquidation	  	30
		 	14.3	 	Date of Termination	  	31
		 	14.4	 	Reconstitution Upon Bankruptcy	  	31
		 	14.5	 	Death, Legal Incompetency, Etc. of a Limited Partner	  	32
			
	15.	 	POWER OF ATTORNEY	  	32
			
	16.	 	AMENDMENT OF AGREEMENT	  	32
			
	17.	 	MISCELLANEOUS	  	33
		 	17.1	 	Notices	  	33
		 	17.2	 	Modifications	  	33
		 	17.3	 	Successors and Assigns	  	33
		 	17.4	 	Duplicate Originals	  	34
		 	17.5	 	Construction	  	34
		 	17.6	 	Governing Law	  	34
		 	17.7	 	Other Instruments	  	34
		 	17.8	 	General Partner with Interest as Limited Partner	  	34
		 	17.9	 	Legal Construction	  	34
		 	17.10	 	Gender	  	34
		 	17.11	 	Prior Agreements Superseded	  	34
		 	17.12	 	No Third Party Beneficiary	  	34
		 	17.13	 	Purchase for Investment	  	35
		 	17.14	 	Waiver	  	35
		 	17.15	 	Time of Essence	  	35

 SIXTH AMENDED AND RESTATED 
 AGREEMENT OF LIMITED PARTNERSHIP 
 FOR 
 ERP OPERATING LIMITED PARTNERSHIP 
 THIS SIXTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (this “Agreement”) has been executed and delivered as of the 12th day of March, 2009, by Equity Residential (the “General Partner” or the
“Company”), a Maryland real estate investment trust, pursuant to Section 16 hereof, for itself and on behalf of those partnerships identified on Schedule A to this Agreement (each a “Zell Partner” and collectively, the
“Zell Partners”); those entities identified on Schedule B to this Agreement (each a “Starwood Partner” and collectively, the “Starwood Partners”); and to the extent not included in Schedule A or B those additional
persons and entities holding Partnership Interests (as hereinafter defined) in the Partnership from time to time as recorded in the books and records maintained by the General Partner (the “Additional Partners”) (the General Partner, the
Zell Partners, the Starwood Partners and the Additional Partners, being each a “Partner” and collectively, the “Partners”). 
 RECITALS 
 A. The Partners are parties to that certain Fifth Amended and Restated Agreement of Limited Partnership of
ERP Operating Limited Partnership dated as of August 1, 1998 (the “Prior Partnership Agreement”) and, in accordance therewith, have been doing business as an Illinois limited partnership (the “Partnership”) under the name
“ERP Operating Limited Partnership.” 
 B. The requisite majorities of the Partners have approved amendments to the Prior
Partnership Agreement in accordance with its terms, including, without limitation, provisions for the Partnership’s issuance of long-term incentive interests in the Partnership as more fully provided for herein. 
 B. In order to implement the amendments so approved by the Partners, the Partners have determined it to be in the best interest of the Partnership to
amend and restate the Prior Partnership Agreement and are desirous of continuing the Partnership in accordance with the Illinois Revised Uniform Limited Partnership Act and this Agreement. 
 THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the General Partner, for itself and on behalf of the Partners, agrees as follows: 
 1.
Partnership. 
 1.1 Continuation of Partnership; Partnership Interests. The General Partner and the Limited Partners do hereby
continue the Partnership as an Illinois limited partnership according to all of the terms and provisions of this Agreement and otherwise in accordance with the Act. The General Partner is the sole general partner and the Limited Partners are the
sole limited partners of the Partnership. All Partnership profits, losses, and distributive shares of tax items accruing prior to the date of this Agreement shall be allocated in accordance with, and the respective rights and obligations of the
Partners with respect to the period prior to the date of this Agreement shall be governed by, the Prior Partnership Agreement. No Partner has any interest in any Partnership property but the interests of all Partners in the Partnership are, for all
purposes, personal property. 

 1.2 Name. The Partnership name shall be “ERP Operating Limited Partnership”, but the
General Partner may from time to time change the name of the Partnership or may adopt such trade or fictitious names as it may determine. 
 2. Definitions. 
 2.1 As used in this Agreement, the following terms shall have the meanings set forth respectively after
each: 
 “Act” shall mean the Illinois Revised Uniform Limited Partnership Act, as amended from time to time, and any
successor statute. 
 “Adjusted Capital Account Deficit” shall mean, at any time, the then balance in the Capital Account of
a Partner, after giving effect to the following adjustments: 
 (i) credit to such Capital Account any amounts that such
Partner is obligated to restore pursuant to this Agreement or otherwise or is deemed to be obligated to restore as described in the penultimate sentences of Regulations Section 1.704-2(g)(1) and Regulations Section 1.704-2(i)(5), or any
successor provisions; and 
 (ii) debit to such Capital Account the items described in Regulations Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6). 
 “Affiliate” with respect to any specified Person shall mean any Person
directly or indirectly controlling, controlled by or under common control with the specified Person. 
 “Aggregate Restoration
Amount” shall mean with respect to the Obligated Partners, as a group, the aggregate balances of the Restoration Amounts, if any, of the Obligated Partners, as determined on the date in question. 
 “Agreement” shall mean this Sixth Amended and Restated Agreement of Limited Partnership, as it may be amended from time to time.

 “Assignee” shall mean a Person to whom one or more OP 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 12(B)(ii). 
 “Bankruptcy” of a Partner shall mean (a) the filing by a Partner of a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of its debts under Title 11 of the United States
Code (or corresponding provisions of future laws) or any other Federal or state insolvency law, or a Partner’s filing an answer consenting to or acquiescing in any such petition, (b) the making by a Partner of any assignment for the
benefit of its creditors or the admission by a Partner in writing of its inability to pay its debts as they mature, or (c) the expiration of sixty (60) days after the filing of an involuntary petition under Title 11 of the United States
Code (or corresponding provisions of future laws), seeking an application for the appointment of a receiver for the assets of a Partner, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under
any other Federal or state insolvency law, provided that the same shall not have been vacated, set aside or stayed within such 60-day period. 
 “Capital Account” shall mean the capital account maintained by the Partnership for each Partner as described in Section 3.4 below. 
  

 2 

 “Capital Cash Flow” shall have the meaning provided in Section 8.2 below.

 “Capital Contribution” shall mean, when used in respect of a Partner, the initial capital contribution of such Partner
and any other amounts of money or the fair market value of other property contributed by such Partner to the capital of the Partnership pursuant to the terms of this Agreement, including the Capital Contribution made by any predecessor holder of the
Partnership Interest of such Partner. 
 “Code” shall mean the Internal Revenue Code of 1986, as the same may be amended
from time to time, and any successor statute. 
 “Common Share” shall mean a common share of beneficial interest (or other
comparable common equity interest) of the Company. 
 “Company” means Equity Residential, a Maryland real estate investment
trust and the General Partner of the Partnership, and any successor thereto (including Equity Residential as constituted as of the date of this Agreement). 
 “Contributing Partner” shall have the meaning provided in clause (vi) of Section 3.2(B) below. 
 “Depreciation” shall mean for any fiscal year or portion thereof, an amount equal to the depreciation, amortization or other cost recovery deduction allowable with respect to an asset for such period
for Federal income tax purposes, 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 period, Depreciation shall be an amount that bears the same relationship to
such beginning Gross Asset Value as the depreciation, amortization or cost recovery deduction in such period for Federal income tax purposes bears to the beginning adjusted tax basis; provided, however, that if the adjusted basis for Federal income
tax purposes of an asset at the beginning of such period is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner. 
 “Determination Date” shall have the meaning provided in Section 3.2(C) below. 
 “FPAA” shall have the meaning provided in Section 11.6 below. 
 “Gains” or “Losses” means, upon the actual or deemed sale of all or substantially all Partnership assets, the sum of:
(a) changes to the Gross Asset Value of Partnership assets as described under paragraph (ii) of the definition of Gross Asset Value and (b) gain or loss resulting from any disposition of Partnership assets with respect to which gain
or loss is recognized for Federal income tax purposes, computed by reference to the Gross Asset Value of the property disposed. 
 “General Partner” means Equity Residential, a Maryland real estate investment trust sometimes also referred to in this Agreement as the “Company,” and any successor thereto (including Equity Residential as
constituted as of the date of this Agreement). 
 “Gross Asset Value” means, with respect to any Partnership asset, the
asset’s adjusted basis for Federal income tax purposes, except as follows: 
 (i) 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; 
  

 3 

 (ii) The Gross Asset Value of all Partnership assets shall be adjusted to equal their
respective gross fair market values, as determined by the General Partner, as of the following times: (a) the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital
Contribution; (b) the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership; (c) the issuance of LTIP Units in exchange for services
provided by an employee or non-employee trustee of the Partnership or an Affiliate of the Partnership; and (d) the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); provided, however, that
adjustments pursuant to clauses (a) and (b) above shall be made only if the General Partner reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the
Partnership; 
 (iii) The Gross Asset Value of any Partnership asset distributed to any Partner shall be adjusted to equal the
gross fair market value of such asset on the date of distribution as determined by the General Partner; and 
 (iv) The Gross
Asset Value 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) and paragraph (vi) of the definition of Net Profits and Net Losses and Section 7.3(G) below; provided, however, that Gross Asset
Value shall not be adjusted pursuant to this paragraph (iv) to the extent the General Partner determines that an adjustment pursuant to paragraph (ii) above is necessary or appropriate in connection with a transaction that would otherwise
result in an adjustment pursuant to this paragraph (iv). 
 If the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraphs (i),
(ii) or (iv) 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 Profits and Net Losses. It is the intent of this Agreement that Capital
Accounts are at all times maintained in accordance with Regulations Section 1.704-1. To the extent provided for in Regulations, revenue rulings, revenue procedures and/or other IRS guidance issued after the date hereof, the Partnership is
hereby authorized to, and at the direction of the General Partner shall, elect a safe harbor under which the fair market value of any Partnership Interests issued after the effective date of such Regulations (or other guidance) will be treated as
equal to the liquidation value of such Partnership Interests (i.e., a value equal to the total amount that would be distributed with respect to such interests if the Partnership sold all of its assets for their fair market value immediately after
the issuance of such Partnership Interests, satisfied its liabilities (excluding any non-recourse liabilities to the extent the balance of such liabilities exceeds the fair market value of the assets that secure them) and distributed the net
proceeds to the Partners under the terms of this Agreement). In the event that the Partnership makes a safe harbor election as described in the preceding sentence, each Partner hereby agrees to comply with all safe harbor requirements with respect
to transfers of such Partnership Interests while the safe harbor election remains effective. 
 “IRS” shall have the meaning
provided in Section 11.6 below. 
  

 4 

 “Limited Partner” shall mean any Person (i) whose name is set forth as a Limited
Partner on Schedule A or B attached hereto or who has become a Limited Partner pursuant to the terms and conditions of this Agreement, and (ii) who holds a Partnership Interest. “Limited Partners” means all such persons. Nevertheless,
solely for purposes of Section 16 of this Agreement, “Limited Partner” means and includes only those Partners, exclusive of the General Partner, who, at the time of reference, hold OP Units. 
 “LTIP Capital Target” is the targeted increased value of the Capital Account per LTIP Unit of a holder of LTIP Units of a particular
class or series (as issued on a particular date pursuant to a LTIP Unit Designation) necessary for the LTIP Units governed by such LTIP Unit Designation to be automatically converted into OP Units. 
 “LTIP Unit Designation” shall have the meaning set forth in clause (g) of Section 3.2(B) below. 
 “LTIP Units” shall mean long-term incentive plan interests in the Partnership issued from time to time following the date of this
Agreement issued pursuant to Section 3.2(A)(iii) below. Holders of LTIP Units will agree to be bound by the terms and provisions of this Agreement and will be admitted as Limited Partners. 
 “Market Price” shall have the meaning set forth in Section 3.2(C) below. 
 “Net Profits” and “Net Losses” shall mean for each fiscal year or portion thereof, an amount equal to the
Partnership’s items of taxable income or loss for such year or period, determined in accordance with Section 703(a) of the Code with the following adjustments: 
 (i) any income which is exempt from Federal income tax and not otherwise taken into account in computing Net Profits or Net Losses shall
be added to taxable income or loss; 
 (ii) any expenditures of the Partnership described in Code Section 705(a)(2)(B) or
treated as Section 705(a)(2)(B) expenditures under Regulations Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Net Profits or Net Losses, will be subtracted from taxable income or loss; 
 (iii) in the event that the Gross Asset Value of any Partnership asset is adjusted pursuant to the definition of Gross Asset Value
contained in this Section 2, 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 Profits and Net Losses; 
 (iv) gain or loss resulting from any disposition of Partnership assets 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; 
 (v) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or
loss, there shall be taken into account Depreciation for such fiscal year or other period; 
  

 5 

 (vi) to the extent 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 complete
liquidation of a Partner’s Partnership Interest, 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 Profits or Net Losses; and 
 (vii) any
items specially allocated pursuant to Section 7.3 or Section 7.4 below shall not be considered in determining Net Profits or Net Losses. 
 “Nonrecourse Debt” shall mean a liability as defined in Regulations Section 1.704-2(b)(3). 
 “Nonrecourse Deductions” has the meaning set forth in Regulations Section 1.704-2(c). 
 “Obligated
Partners” shall mean that or those Limited Partner(s) listed as Obligated Partner(s) from time to time as recorded in the books and records maintained by the General Partner, whether by express amendment to this Partnership Agreement or by
execution of a written instrument by and between any additional Obligated Partner(s) being directly affected thereby and the General Partner, acting on behalf of the Partnership and without the prior consent of the Limited Partners (whether or not
Obligated Partners other than the Obligated Partner(s) being directly affected thereby). Any successor, Assignee, or transferee of the entire Partnership Interest of an Obligated Partner shall be considered an Obligated Partner; provided, however,
that if an Obligated Partner makes a distribution of all or any portion of its OP Units in accordance with Section 12(B)(i)(z) hereof, the General Partner shall, upon receipt of written notice from such Obligated Partner and such distributee(s)
of OP Units, add any such distributee(s) as an additional Obligated Partner in the manner set forth in such notice. 
 “Operating
Cash Flow” shall have the meaning provided in Section 8.1 below. 
 “OP Units” are units of Partnership
Interest more particularly described in Section 3.2 below. 
 “OP Unit Net Asset Value” shall mean, as of any given
time, the positive balance, if any, of the Gross Asset Value of Partnership assets, less Partnership liabilities, less the Capital Accounts pertaining to Units excluding OP Units, divided by the number of OP Units outstanding. 
 “OP Unit Value” shall mean, as of any given time, the number of OP Units into which a Preference Unit or LTIP Unit is convertible
(whether or not the conversion can then be effected), or the value of the Preference Unit expressed in OP Units if the Preference Unit is not convertible into OP Units, as provided for in the applicable Preference Unit Term Sheet or Other Securities
Term Sheet. Nevertheless, the LTIP Unit Designation establishing any particular class or series of LTIP Units may prescribe an OP Unit Value that differs from the number of OP Units into which the subject LTIP Units may be converted for one or more
specific purposes of this Agreement, including, without limitation, the OP Unit Value to be used in determining the amount of distributions of Operating Cash Flow and/or Capital Cash Flow payable in respect of such LTIP Units pursuant to Sections
8.1 and 8.2 of this Agreement. 
  

 6 

 “Other Securities” shall have the meaning set forth in clause (iv) of
Section 3.2(B) below. 
 “Other Securities Term Sheet” shall have the meaning provided in clause (f) of
Section 3.2(B) below. 
 “Partner Nonrecourse Debt” has the meaning set forth in Regulations
Section 1.704-2(b)(4). 
 “Partner Nonrecourse Debt Minimum Gain” has the meaning set forth in Regulations
Section 1.704-2(i). 
 “Partner Nonrecourse Deductions” has the meaning set forth in Regulations
Section 1.704-2(i). 
 “Partners” shall mean, collectively, the General Partner and the Limited Partners, and any
additional or successor Partners of the Partnership admitted to the Partnership in accordance with the terms of this agreement. Reference to a Partner shall be to any one of the Partners. 
 “Partnership Interest” shall mean the ownership interest of a Partner in the Partnership at any particular time, including the right of
such Partner to any and all benefits to which such Partner may be entitled as provided in this Agreement, and to the extent not inconsistent with this Agreement, under the Act, together with the obligations of such Partner to comply with all of the
terms and provisions of this Agreement and of the Act. “Partnership Interests” means and includes OP Units, Preference Units and LTIP Units. 
 “Partnership Minimum Gain” has the meaning set forth in Regulations Sections 1.704-2(b)(2) and 1.704-2(d). 
 “Percentage Interest” shall mean, as to each Partner, the quotient (expressed as a percentage) arrived at by dividing (i) the sum of the OP Unit Value of any Preference Units held by that
Partner, the OP Unit Value of LTIP Units held by that holder of LTIP Units and the number of OP Units held by that Partner, by (ii) the sum of the OP Unit Value of all Preference Units and LTIP Units issued and outstanding at the time and the
total number of OP Units issued and outstanding at the time. The respective Percentage Interests of the Partners shall be maintained and revised as necessary in books and records kept by the General Partner to add Partners from time to time as
provided in Section 3.1. 
 “Person” means any individual, partnership, corporation, trust or other entity. 

“Pledge” shall have the meaning provided in Section 12(B)(i) below. 
 “Preference Units” are units of Partnership Interest more particularly described in Section 3.2 below. 
 “Preference Unit Term Sheet” shall have the meaning provided in clause (e) Section 3.2(B) below. 
 “Prior Partnership Agreement” has the meaning set forth in Recital A above. 
 “Recapitalization” shall have the meaning provided in Section 3.2(C) below. 
  

 7 

 “Record Date” shall have the meaning provided in Section 9.1(x) below. 

“Recourse Debt” shall mean the amount of indebtedness owed by the Partnership other than Nonrecourse Debt and Partner Nonrecourse
Debt. 
 “Regulations” shall mean the Income Tax Regulations, including Temporary and Proposed Regulations, promulgated
under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 “Restoration Amount” shall mean with respect to any Obligated Partner, the amount set forth opposite the name of such Obligated Partner on from time to time as recorded in the books and records maintained by the General
Partner by an amendment to the Partnership Agreement or by execution of a written instrument by and between such Obligated Partner, and/or any additional Obligated Partner(s) being directly affected thereby and the General Partner, acting on behalf
of the Partnership and without the prior written consent of the Limited Partners (whether or not Obligated Partners other than the Obligated Partner(s) being directly affected thereby). If an Obligated Partner makes a distribution of all or any
portion of its OP Units in accordance with Section 12(B)(i)(z) hereof, and the General Partner receives a written notice from such Obligated Partner and any distributee of OP Units to add such distributee as an additional Obligated Partner, the
Restoration Amount of such additional Obligated Partner shall be increased by an amount equal to that amount set forth in such notice, and the Restoration Amount of the Obligated Partner making such distribution shall be reduced by such amount.

 “TMP” shall have the meaning provided in Section 11.5 below. 
 “Third Party Loan” shall have the meaning provided in Section 9.7(E) below. 
 “Units” has the meaning set forth in Section 3.2(A) below. 
 3. Capital. 
 3.1 Capital
Contributions of the Partners. At the time of the execution of this Agreement, the Partners have made or are credited with the Capital Contributions as set forth in the Partnership’s books and records maintained by the General Partner. The
Partners shall own OP Units in the amounts, and shall have a Percentage Interest in the Partnership as set forth in such books and records maintained by the General Partner, which Percentage Interest shall be adjusted from time to time by the
General Partner to the extent necessary to reflect accurately redemptions, Capital Contributions, the issuance of additional OP Units, Preference Units, LTIP Units or similar events having an effect on a Partner’s Percentage Interest. To the
extent the Partnership is acquiring any property by the merger of any other Person into the Partnership, Persons who receive Partnership Interests in exchange for their interests in the Person merging into the Partnership shall become Partners and
shall be deemed to have made Capital Contributions as provided in the applicable merger agreement and as set forth in the Partnership’s books and records that will be appropriately revised and maintained by the General Partner. 
 3.2 Issuance and Conversion of Units. 
 A. The interest of a Partner in the Partnership is referred to as being evidenced by one or more “Units”. In addition, the General Partner may cause the Partnership to issue LTIP Units to employees or non-employee trustees of the
Partnership or Affiliates of the Partnership from time to time. Units may be “OP Units”, “LTIP Units” or “Preference Units”: 
  

	 	(i)	An “OP Unit” is a unit of Partnership Interest that, as more particularly provided for below in Section 3.2(B), may be converted into either cash or one
(1) Common Share. 

  

 8 

	 	(ii)	A “Preference Unit” is a unit of Partnership Interest having such rights, preferences and other privileges, variations and designations as may be determined by the General
Partner in its sole and absolute discretion (but not in violation of the provisions of Section 3.2(B) or the terms of any other Preference Unit(s)). There may be more than one series or class of Preference Units having differing terms and
conditions, but all Preference Units within a given series or class shall have the same rights, preferences and other privileges, variations and designations. A Preference Unit shall be convertible into one or more OP Units or be capable of being
valued in OP Units. With respect to each series or class of Preference Units, the General Partner may also, in its discretion, determine and fix, among other terms and conditions, any of the following: (a) the series to which such Preference
Units shall belong, (b) the distribution rate therefore, (c) the price at and the terms and conditions on which such Preference Units may be redeemed, (d) the amount payable in respect of such Preference Units in the event of
involuntary or voluntary liquidation, (e) the terms and conditions on which such Preference Units may be converted, if such Preference Units are issued with the privilege of conversion, and (f) the number of such Preference Units to be
issued as a part of such series. Once determined and fixed as herein provided, however, the terms and conditions of a particular series or class of Preference Units may not be changed without the written consent of the holders of at least 67% of the
Preference Units within the class or series (or such greater percentage as may be provided for in the applicable Preference Unit Term Sheet or Other Securities Term Sheet, as the case may be). 

  

	 	(iii)	 An “LTIP Unit” is a long-term incentive plan interest in the Partnership, issuable to employees or non-employee trustees of the Partnership or an
Affiliate of the Partnership for services provided to the Partnership. There may be multiple series or classes of LTIP Units, each having such rights to participate in the future profits of the Partnership, with such privileges, variations and
designations as may be determined by the General Partner in its sole and absolute discretion (but not in violation of the provisions of Section 3.2(B)), but all LTIP Units within a given series or class shall have the same rights, privileges,
variations and designations. An LTIP Unit shall be automatically converted into an OP Unit at such time as the Capital Account maintained in respect of such LTIP Unit shall have increased to the LTIP Capital Target ascribed to such LTIP Unit in the
applicable LTIP Unit Designation. If, however, the LTIP Capital Target is not attained within ten (10) years following the date of issuance of such LTIP Unit, the LTIP Unit shall automatically be canceled and cease to exist, with no
compensation payable to the holder of such canceled LTIP Unit. With respect to each series or class of LTIP Units, the General Partner may also, in its discretion, determine and fix, among other terms and conditions, any of the following:
(a) the class or series to which such LTIP Units shall belong, (b) the distribution rate therefore, which may, but need not, be the same rate, payable at the same times, as OP Units, (c) the Capital Contribution payable to the
Partnership upon issuance of each LTIP Unit within such class or series, (d) terms for forfeiture of such LTIP Units (as well as any OP Units into which such LTIP Units may automatically convert upon attainment of the applicable LTIP Capital
Target), upon the holder’s or holders’ of such LTIP Units termination of employment with the Partnership or an Affiliate of the Partnership and any date(s) or event(s) following which such LTIP Units (or OP Units into which they may have
automatically been converted) will no longer be subject to forfeiture (i.e. will have become “vested”), and (e) the number 

  

 9 

	 	 
of such LTIP Units to be issued as a part of such class or series. It is the intent of this Agreement that LTIP Units qualify as profits interests in a
partnership under Rev. Proc. 93-27. 

 B. From time to time hereafter, subject to and in accordance with the provisions of
this Section 3.2(B), the General Partner shall cause the Partnership to issue additional Units as follows: 
  

	 	(i)	OP Units to the Company upon the issuance by the Company of additional Common Shares (other than in exchange for OP Units) and the contribution of the net proceeds thereof as a
Capital Contribution to the Partnership as provided for in Section 3.3(B) below it being understood, however, that the Company may issue Common Shares in connection with share option plans, dividend reinvestment plans, restricted share plans or
other benefit or compensation plans (for example, shares issued in lieu of fees or compensation) without receiving any proceeds and that the issuance of such Common Shares shall nonetheless entitle the Company to additional OP Units pursuant to this
clause (i); 

  

	 	(ii)	OP Units to Partners (including itself) that hold Preference Units that are convertible into OP Units, upon the exercise of such conversion in accordance with the terms and
conditions of the Preference Unit Term Sheet or Other Securities Term Sheet (each hereinafter defined) applicable thereto; 

  

	 	(iii)	OP Units to the Company upon the issuance by the Company of additional Common Shares issuable upon conversion or exchange of notes, bonds or other evidences of indebtedness that are
convertible into, or exchangeable for, Common Shares; 

  

	 	(iv)	OP Units to Partners holding OP Units (including itself) if and to the extent of each such Partner’s participation in any reinvestment program contemplated by
Section 3.3(C) below; 

  

	 	(v)	OP Units to holders of LTIP Units on a one for one basis upon the automatic conversion of such LTIP Units into OP Units; 

  

	 	(vi)	Preference Units to the Company upon the issuance by the Company of securities other than Common Shares (whether debt or equity securities; (“Other Securities”)) and the
contribution of the net proceeds thereof as a Capital Contribution to the Partnership as provided for in Section 3.3(B) below; 

  

	 	(vii)	LTIP Units upon such terms and conditions as are set forth in an LTIP Unit Designation (as hereinafter defined) applicable thereto; and 

  

	 	(viii)	in all other cases, OP Units and/or Preference Units, as determined by the General Partner, in its discretion, to existing or newly-admitted Partners (including itself), in exchange
for the contribution by a Partner (the “Contributing Partner”) of additional Capital Contributions to the Partnership. 

 Issuance of
OP Units as aforesaid shall be in accordance with the following: 
  

	 	(a)	the number of OP Units issued to the Company under clauses (i) and (iii) of this Section 3.2(B) shall be equal to the number of Common Shares issued;

  

 10 

	 	(b)	the number of OP Units issued to a Partner under clause (ii) of this Section 3.2(B) shall be as provided for in the Preference Unit Term Sheet or the Other Securities Term
Sheet (each hereinafter defined) pursuant to which the Preference Units being converted exist; 

  

	 	(c)	the number of OP Units issued to a Limited Partner under clause (iv) of this Section 3.2(B) shall be as provided for in the applicable reinvestment program; and

  

	 	(d)	the number of OP Units issued to a Contributing Partner under clause (viii) of this Section 3.2(B) shall be equal to the quotient (rounded to the nearest whole number)
arrived at by dividing (x) the initial Gross Asset Value of the property contributed as additional Capital Contributions (net of any debt to which such property is subject or assumed, and any cash paid to the Contributing Partner, by the
Partnership in connection with such contribution) by (y) the contractual price per OP Unit agreed to by the General Partner and the Contributing Partner. 

 Issuance of Preference Units as aforesaid shall be in accordance with the following: 
  

	 	(e)	Preference Units issued pursuant to clause (viii) of this Section 3.2(B) shall have the terms and conditions specified in an agreement (a “Preference Unit Term
Sheet”) executed by and between the Partnership (at the direction and in the discretion of the General Partner) and the Contributing Partner and such Preference Unit Term Sheet shall thereupon be a part of this Agreement. The number of
Preference Units issued to a Contributing Partner under clause (viii) of this Section 3.2(B) shall be equal to the quotient (rounded to the nearest whole number) arrived at by dividing (x) the initial Gross Asset Value of the property
contributed as additional capital contributions (net of any debt to which such property is subject or assumed by the Partnership in connection with such contribution) by (y) an amount provided for in the Preference Unit Term Sheet; and

  

	 	(f)	Preference Units issued pursuant to clause (vi) of this Section 3.2(B) shall have economic terms substantially identical to those of the applicable Other Securities and
such other terms and conditions, all of which are specified in an agreement (an “Other Securities Term Sheet”) executed between the Partnership and the Company and such Other Securities Term Sheet shall thereupon be a part of this
Agreement. 

 Issuance of LTIP Units as aforesaid shall be in accordance with the following: 
  

	 	(g)	LTIP Units issued pursuant to clause (vii) of this Section 3.2(B) shall have the terms and conditions, including, without limitation, the LTIP Capital Target per LTIP
Unit, specified in an “LTIP Unit Designation” created by, and in the discretion of, the General Partner and such LTIP Unit Designation shall thereupon be a part of this Agreement. LTIP Units may only be issued to employees or non-employee
trustees of the Partnership or an Affiliate of the Partnership for services provided to the Partnership. As a condition to the issuance of LTIP Units to any employee or non-employee trustee of the Partnership or an Affiliate of the Partnership, the
employee or non-employee trustee will have agreed to be bound by the terms of this Agreement. 

 Units may also be issued to some or all of the
Partners holding Preference Units if and to the extent of such Partner’s participation in any reinvestment program contemplated by Section 3.3(C) below. Upon the issuance of additional OP Units and/or Preference Units in accordance with
the provisions of this Section 3.2(B), each recipient of such Units shall either execute this Agreement or a joinder 

  

 11 

 
to this Agreement (which joinder, as to Preference Units, may be a part of the applicable Preference Unit Term Sheet or Other Securities Term Sheet) and the
Percentage Interests of all of the Partners shall thereupon be appropriately adjusted by the General Partner. Notwithstanding anything to the contrary contained herein, in no event shall any additional Preference Units or OP Units be issued
(pursuant to this Section 3.2(B) or otherwise) to the extent that the effect of such issuance would be to reduce the General Partner’s Percentage Interest to fifty percent (50%) or less. 
 C. Subject to the further provisions of this Section 3.2(C), the Company hereby grants to each Limited Partner holding OP Units the right to
request an exchange of any or all of its OP Units for Common Shares, with one OP Unit being exchangeable for one Common Share. Such right may be exercised by a Limited Partner at any time and from time to time upon not less than ten (10) days
prior written notice to the Partnership. Upon receipt of such a request, the Partnership may, in its discretion, in lieu of the Company’s issuing Common Shares, pay to such Limited Partner cash in an amount equal to the product arrived at by
multiplying (i) the number of OP Units requested to be exchanged by such Limited Partner multiplied by (ii) the Market Price, with such payment to be made within ten (10) days after the Partnership’s receipt of the Limited
Partner’s exercise notice as aforesaid; provided, however, that in calculating Market Price for this Section 3.2(C) only, the “Determination Date” shall mean the trading date immediately preceding the date on which the
Partnership receives notice from the holder of OP Units stating such holder’s intention to exercise its right to request an exchange of its OP Units for Common Shares. As used in this Section 3.2(C), “Market Price” means either
(a) the last reported sale price per share of the Common Shares at the close of trading on the Determination Date as reported in the Wall Street Journal (Midwest Edition) or such other reportable stock price reporting service as may be selected
by the General Partner, or (b) in the event that the Common Shares were not traded on such Determination Date, then the last reported sale price as aforesaid on the most recent day that the Common Shares were traded. If the Partnership does not
elect to make a cash payment, it shall be obligated to issue Common Shares as provided above. The Company shall at all times reserve and keep available out of its authorized but unissued Common Shares, solely for the purpose of effecting the
exchange of OP Units for Common Shares, such number of Common Shares as shall from time to time be sufficient to effect the conversion of all outstanding OP Units not owned by the Company, OP Units that may become issuable upon the automatic
conversion of LTIP Units and any Preference Units not owned by the Company that are convertible into OP Units (whether or not the conversion can then be effected). No Limited Partner shall, by virtue of being the holder of one or more LTIP Units, OP
Units and/or Preference Units, be deemed to be a shareholder of or have any other interest in the Company. In the event of any change in the outstanding Common Shares by reason of any share dividend, split, recapitalization, merger, consolidation,
combination, exchange of shares or other similar corporate change (a “Recapitalization”), the number of OP Units held by each Partner (or into which Preference Units are or may be convertible, if applicable, or LTIP Units may be
automatically converted into OP Units upon achievement of the LTIP Capital Target applicable to such LTIP Units) shall be proportionately adjusted so that one OP Unit remains exchangeable for one Common Share without dilution. The Assignee of any
Limited Partner may exercise the rights of such Limited Partner pursuant to this Section 3.2(C), and such Limited Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such
Limited Partner’s Assignee. In connection with any exercise of such rights by such Assignee on behalf of such Limited Partner, if the Partnership elects to make a cash payment as provided herein, the cash payment shall be paid by the
Partnership directly to such Assignee and not to such Limited Partner. If the Company adopts a shareholder rights plan or such other plan or arrangement pursuant to which the holders of Common Shares are entitled to receive rights or other
securities upon the occurrence of specified events, then the General Partner shall in good faith make an equitable adjustment to the exchange ratio of Common Shares for OP Units, as the General 

  

 12 

 
Partner shall determine in its sole discretion, to protect the value of the OP Units if any rights or other securities issued under such plan or arrangement
become exercisable and expire prior to a Determination Date. In the event the Company issues any Common Shares in exchange for OP Units pursuant to this Section 3.2(C), the General Partner shall record the transfer on the books of the
Partnership so that the Company is thereupon the owner and holder of such OP Units. Notwithstanding the foregoing provisions of this Section 3.2(C), a Limited Partner shall not have the right to exchange OP Units for Common Shares if
(i) in the opinion of counsel for the Company, the Company would, as a result thereof, no longer qualify (or it would be likely that the Company no longer would qualify) as a real estate investment trust under the Code; or (ii) such
exchange would, in the opinion of counsel for the Company, constitute or be likely to constitute a violation of applicable securities laws. In either such event, to the extent the consequences described in (i) or (ii) could be eliminated
by reasonable action of the Company without any material detriment to the Company and at the expense of such Limited Partner(s) requesting such exchange, the Company shall take all such reasonable action to effect the exchange of OP Units for Common
Shares by such Limited Partner(s) as herein provided. 
 3.3 Additional Funds. 
 A. No Partner shall be assessed or, except as otherwise provided in this Agreement, required to contribute additional funds or other property to the
Partnership. Any additional funds or other property required by the Partnership, as determined by the General Partner in its sole discretion, may, at the option of the General Partner and without an obligation to do so (except as provided for in
Section 3.3(B) below), be contributed by the General Partner or any other Partner (provided such other Partner is willing to do so and the General consents thereto, each in its sole and absolute discretion) as additional Capital Contributions.
The General Partner may also, in its sole discretion, cause the Partnership to accept Capital Contributions in connection with the issuance of LTIP Units. If and as the General Partner or any other Partner makes additional Capital Contributions to
the Partnership, each such Partner shall receive additional OP Units and/or Preference Units as provided for in Section 3.2(B) above. The General Partner shall also have the right (but not the obligation) to raise any additional funds required
for the Partnership in accordance with the provisions of Section 9.7(E) below and/or by causing the Partnership to borrow the necessary funds from third parties on such terms and conditions as the General Partner shall deem appropriate in its
sole discretion. If the General Partner elects to cause the Partnership to borrow the additional funds, or if the Partnership issues a guaranty, indemnity or similar undertaking in connection with indebtedness of the Company as aforesaid, in any
such case one or more of the Partnership’s assets may be encumbered to secure the loan or undertaking. Except as provided for in Section 3.3(C) below, no Partner shall have the right to make additional Capital Contributions to the
Partnership without the prior written consent of the General Partner. 
 B. Except for (i) the capitalization of any wholly owned
entity of the General Partner which is the general partner of a partnership having the Partnership as a limited partner, (ii) the net proceeds generated by the issuance of Other Securities that evidence debt (and are not equity securities) that
are loaned by the Company to the Partnership, and (iii) where, in the good faith opinion of the Company, the net proceeds generated by the issuance of Other Securities (whether for debt or equity) are retained by the Company for a valid
business reason consistent with the purposes of the Partnership and such retention does not materially adversely affect the Limited Partners, the net proceeds of any and all funds raised by or through the Company through the issuance of Common
Shares or Other Securities shall be contributed to the Partnership as additional Capital Contributions, and in such event the Company shall be issued additional Units pursuant to Section 3.2(B) above. 
  

 13 

 C. If the General Partner creates and administers a reinvestment program in substantial conformance with
a dividend reinvestment program which may be available from time to time to holders of the Common Shares, each Limited Partner holding OP Units shall have the right to reinvest any or all cash distributions payable to it from time to time pursuant
to this Agreement by having some or all (as the Limited Partner elects) of such distributions contributed to the Partnership as additional Capital Contributions, and in such event the Partnership shall issue to each such Limited Partner additional
OP Units pursuant to clause (iv) of Section 3.2(B) above, or the General Partner may elect to cause distributions with respect to which a Limited Partner has elected reinvestment to be contributed to the Company in exchange for the
issuance of Common Shares. At the option of the General Partner, such a program may also be made available with respect to Preference Units. 
 3.4 Capital Accounts. A separate capital account (“Capital Account”) shall be maintained for each Partner, inclusive of each holder of LTIP Units. 
 A. To each Partner’s Capital Account there shall be credited such Partner’s Capital Contributions, such Partner’s distributive share of
Net Profits and any items in the nature of income or gain which are specially allocated pursuant to Section 7.3, Section 7.4 or Section 14.2(C) hereof, and the amount of any Partnership liabilities assumed by such Partner or which are
secured by any Partnership property distributed to such Partner. 
 B. To each Partner’s Capital Account there shall be debited the
amount of cash and the Gross Asset Value of any Partnership property distributed to such Partner pursuant to any provision of this Agreement, such Partner’s distributive share of Net Losses and any items in the nature of expenses or losses
which are specially allocated pursuant to Section 7.3 or Section 7.4 hereof, and the amount of any liabilities of such Partner assumed by the Partnership or which are secured by any property contributed by such Partner to the Partnership.

 C. In the event all or a portion of a Partnership Interest, including LTIP Units is or are transferred in accordance with the terms of
this Agreement (including a transfer of OP Units in exchange for Common Shares, pursuant to Section 3.2(C)), the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest,
including transferred LTIP Units. 
 D. In determining the amount of any liability for purposes of Sections 3.4(A) and 3.4(B) above, there
shall be taken into account Code Section 752(c) and any other applicable provisions of the Code and Regulations. 
 E. This
Section 3.4 and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such
Regulations. In the event the General Partner shall determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are
secured by contributed or distributed property or which are assumed by the Partnership, or the Partners) are computed in order to comply with such Regulations, the General Partner may make such modification, provided that it is not likely to have a
material effect on the amounts distributed to any Partner pursuant to Section 14 below upon the dissolution of the Partnership. 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)(g), and (ii) make
any appropriate modifications in the event unanticipated events (for example, the acquisition by the Partnership of oil or gas properties) might otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b). 
  

 14 

 3.5 Interest on and Return of Capital. 
 A. No Partner shall be entitled to any interest on its Capital Account or on its contributions to the capital of the Partnership. 
 B. Except as expressly provided for in this Agreement, no Partner shall have the right to demand or to receive the return of all or any part of his
capital contributions to the Partnership and there shall be no priority of one Partner over the other as to the return of capital contributions or withdrawals or distributions of profits and losses. No Partner shall have the right to demand or
receive property other than cash in return for the contributions of such Partner to the Partnership. 
 3.6 Negative Capital Accounts.

 A. Except as provided in the next sentence and Section 3.6(B), no Partner shall be liable to the Partnership or to any other Partner
for any deficit or negative balance which may exist in such Partner’s Capital Account. If any Obligated Partner has a deficit balance in its Capital Account (after giving effect to all contributions, distributions, allocations and adjustments
to Capital Accounts for all periods), each such Obligated Partner shall contribute to the capital of the Partnership an amount equal to its respective deficit balance; such obligation to be satisfied by the end of the fiscal year of liquidation (or,
if later, within ninety (90) days following the liquidation and dissolution of the Partnership.) Such contributions shall be used to make payments to creditors of the Partnership and such Obligated Partners (i) shall not be subrogated to
the rights of any such creditor against the General Partner, the Partnership, another Partner or any person related thereto, and (ii) hereby waive any right to reimbursement, contribution or similar right to which such Obligated Partners might
otherwise be entitled as a result of the performance of its obligations under this Agreement. 
 B. Except as otherwise agreed in writing by
the General Partner and an Obligated Partner, prior to the time of admission of such Obligated Partner to the Partnership, notwithstanding any other provision of this Agreement, an Obligated Partner shall cease to be an Obligated Partner for
purposes of this Section 3.6 upon an exchange by such Obligated Partner of all remaining OP Units for Common Shares (pursuant to Section 3.2(C) or otherwise) 12 months after the date of such exchange by such Obligated Partner unless at the
time of, or during the 12 month period following, such exchange, there has been: 
  

	 	(i)	An entry of a decree or order for relief in respect of the Partnership by a court having jurisdiction over a substantial part of the Partnership’s assets, or the appointment of
a receiver, liquidator, Assignee, custodian, trustee, sequestrator (or other similar official) of the Partnership or of any substantial part of its property, or ordering the winding up or liquidation of the Partnership’s affairs, in an
involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law; or 

  

	 	(ii)	The commencement against the Partnership of an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law; or 

  

	 	(iii)	 The commencement by the Partnership of a voluntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law, or the consent by it to the 

  

 15 

	 	 
entry of an order for relief in an involuntary case under any such law or the consent by it to the appointment of or taking possession by a receiver,
liquidator, Assignee, custodian, trustee, sequestrator (or other similar official) of the Partnership or of any substantial part of its property, or the making by it of a general assignment for the benefit of creditors, or the failure of Partnership
generally to pay its debts as such debts become due or the taking of any action in furtherance of any of the foregoing; provided that, after the passage of such 12 months, the Obligated Partner shall cease to be an Obligated Partner, at the
first time, if any, that all of the conditions set forth in (i) through (iii) above are no longer in existence. 

 This Section 3.6(B) shall not be amended without the consent of two-thirds in number of the Obligated Partners, provided, however, that no such amendment shall adversely affect an Obligated Partner without the written consent of such
Obligated Partner. 
 3.7 Limit on Contributions and Obligations of Partners. Neither the Limited Partners nor the General Partner
shall be required to make any additional advances or contributions to or on behalf of the Partnership or to endorse any obligations of the Partnership. 
 3.8 Redemption and Repurchase of Units. Notwithstanding any other provision of this Agreement which may be contrary to this Section 3.8, in the event of the proposed repurchase or redemption for cash by
the Company of (i) Common Shares or, (ii) Other Securities with respect to which the Company had previously been issued Preference Units pursuant to Section 3.2(B)(vi) of this Agreement, then, in such event, the Partnership shall
provide cash to the Company concurrently with such repurchase or redemption for such purpose equal to the proposed repurchase or redemption price, and one OP Unit owned by the General Partner (or, in the case of redemption or repurchase by the
Company of Other Securities contemplated by clause (ii) above, one Preference Unit owned by the General Partner which had been issued with respect to such Other Securities) shall be cancelled with respect to each Common Share (or share of Other
Securities) so repurchased or redeemed. 
 4. Principal Office. The principal office of the Partnership shall be located at Two North
Riverside Plaza, Suite 400, Chicago, Illinois 60606, or at such other place as the General Partner may designate after giving written notice of such designation to the other Partners. 
 5. Purposes and Powers of Partnership. 
 A. The purposes of the Partnership shall be to acquire, purchase, own, operate, manage, develop, redevelop, invest in, finance, refinance, sell, lease and otherwise deal with multifamily residential properties and assets related thereto,
and interests therein, whether directly or indirectly, alone or in association with others, and to conduct any other business that may be lawfully conducted by a limited partnership pursuant to the Act. The purposes of the Partnership include, but
are not limited to: 
 (i) acquiring, developing, operating, leasing and managing multifamily residential properties and
conducting any other lawful business relating thereto; 
 (ii) financing, mortgaging, exchanging, selling, encumbering or
otherwise disposing of all or any part of a multifamily residential property or any interest therein; 
  

 16 

 (iii) constructing, reconstructing, altering, modifying and subtracting from or adding to
a multifamily residential property or any part thereof; 
 (iv) organizing and holding partnership interests in partnerships
owning or otherwise having an interest in, whether directly or indirectly, one or more multifamily residential properties; and 
 (v) in general, the making of any investments or expenditures, the borrowing and lending of money and the taking of any and all actions which are incidental or related to any of the purposes recited above. 
 It is agreed that each of the foregoing is an ordinary part of the Partnership’s business and affairs. Property may be acquired subject to, or by assuming, the
liens, encumbrances, and other title exceptions which affect such property. The Partnership may also be a partner, general or limited, in partnerships, general or limited, and joint ventures created to accomplish all or any of the foregoing.

 B. The Partnership purposes may be accomplished by taking any action which is not prohibited under the Act and which is related to the
acquisition, ownership, development, improvement, operation, management, financing, leasing, exchanging, selling or otherwise encumbering or disposing of all or any portion of the assets of the Partnership, or any interest therein. 
 6. Term. The term of the Partnership shall continue until the Partnership is terminated upon the occurrence of an event described in
Section 14.1 below. 
 7. Allocations. 
 7.1 Allocation of Net Profits. After giving effect to the allocations set forth in Sections 7.3 and 7.4, Net Profits for any fiscal year shall be allocated to the Partners in the following order of priority:

 A. First, to the General Partner to the extent that the cumulative Net Losses allocated to the General Partner pursuant to
Section 7.2(E) exceed the cumulative Net Profits allocated to the General Partner pursuant to this Section 7.1(A); 
 B. Second,
to each Partner to the extent of and in proportion to the amount by which the cumulative Net Losses allocated to such Partner pursuant to Section 7.2(D) exceed the cumulative Net Profits allocated to such Partner pursuant to this
Section 7.1(B); 
 C. Third, to the General Partner to the extent that the cumulative Net Losses allocated to the General Partner
pursuant to Section 7.2(C) exceed the cumulative Net Profits allocated to the General Partner pursuant to this Section 7.1(C); 
 D. Fourth, to the Partners who hold Preference Units to the extent that the cumulative Net Losses allocated to such Partners in respect of their Preference Units pursuant to Section 7.2(B) exceed the cumulative Net Profits allocated to
such Partners in respect of their Preference Units pursuant to this Section 7.1(D); 
 E. Fifth, to each Partner to the extent of and
in proportion to the amount by which the cumulative Net Losses allocated to such Partner pursuant to Section 7.2(A) exceed the cumulative Net Profits allocated to such Partner pursuant to this Section 7.1(E); and 
  

 17 

 F. Thereafter, to the Partners in accordance with their respective Percentage Interests. Notwithstanding
the immediately preceding sentence, allocations of Net Profits among holders of OP Units under Section 7.1(E) and this Section 7.1(F) shall be made in such a way, to the extent possible, as to minimize any differences between the Capital
Account pertaining to each OP Unit and the OP Unit Net Asset Value. For this purpose, the OP Unit Net Asset Value shall be increased, on a Partner by Partner basis, to the extent a Partner is credited with the right to receive distributions of
Operating Cash Flow and/or Capital Cash Flow from the Partnership pursuant to Section 8.1 and/or 8.2 hereof, respectively, in respect of any fiscal period, or portion thereof, that were not received in the fiscal year of declaration.

 7.2 Net Losses. After giving effect to the allocations set forth in Sections 7.3 and 7.4, Net Losses for each fiscal year shall be
allocated to the Partners in the following order of priority: 
 A. First, to the Partners, in proportion to their respective Percentage
Interests; provided that Net Losses allocated pursuant to this Section 7.2(A) shall not exceed the maximum amount of Net Losses that can be allocated without causing any Partner to have an Adjusted Capital Account Deficit (excluding for this
purpose any increase to such Adjusted Capital Account Deficit for a Partner’s actual obligation to fund a deficit Capital Account balance, including the obligation of an Obligated Partner to fund a deficit Capital Account balance pursuant to
Section 3.6 hereof). Notwithstanding the immediately preceding sentence, allocations of Net Losses among holders of OP Units shall be made in such a way, to the extent possible, as to minimize any differences between the Capital Account
pertaining to each OP Unit and the OP Unit Net Asset Value. For this purpose, the OP Unit Net Asset Value shall be increased, on a Partner by Partner basis, to the extent a Partner is credited with the right to receive distributions of Operating
Cash Flow and/or Capital Cash Flow from the Partnership pursuant to Section 8.1 and/or 8.2 hereof, respectively, in respect of any fiscal period, or portion thereof, that were not received in the fiscal year of declaration; 
 B. Second, to the Partners who hold Preference Units in proportion to the Capital Accounts pertaining to those Preference Units, until such Capital
Account balance equals zero. 
 C. Third, to the General Partner, until the General Partner’s Adjusted Capital Account Deficit
(excluding for this purpose any increase to such Adjusted Capital Account Deficit for the obligation of any General Partner to actually fund a deficit Capital Account balance) equals the excess of (i) the amount of Recourse Liabilities over
(ii) the Aggregate Restoration Amount; 
 D. Fourth, to the Obligated Partners, in proportion to their respective Restoration Amounts,
until such time as the Obligated Partners have been allocated in aggregate amount of Net Losses pursuant to this Section 7.2(D) equal to the Aggregate Restoration Amount; and; 
 E. Thereafter, to the General Partner. 
 This Section 7.2 together with Section 7.1 shall control notwithstanding any reallocation or adjustment of taxable income, loss or other items by the IRS or any other taxing authority; provided, however, that neither the
Partnership nor the General Partner (nor any of their respective affiliates) is required to indemnify any Obligated Partner (or its affiliates) for the loss of any tax benefit resulting from any reallocation or adjustment of taxable income, loss or
other items by the IRS or other taxing authority. The provisions of Section 7.1 and this Section 7.2 shall not be amended in a manner which adversely affects an Obligated Partner (without consent of such Obligated Partner), provided that
the General Partner may add additional Obligated Partners. 
  

 18 

 7.3 Special Allocations. The following special allocations shall be made in the following order:

 A. Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f), notwithstanding any other
provision of this Section 7, if there is a net decrease in Partnership Minimum Gain during any fiscal year, each Partner shall be specially allocated items of Partnership income and gain for such fiscal year (and, if necessary, subsequent
fiscal years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). The items to be so allocated shall be determined in accordance with
Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 7.3(A) is intended to comply with the minimum gain chargeback requirement in Section 1.704-2(f) of the Regulations and shall be interpreted consistently therewith.

 B. Partner Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(i)(4), notwithstanding any
other provision of this Section 7, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership fiscal year, each Partner who has a share of the Partner Nonrecourse Debt
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 fiscal year (and, if necessary, subsequent
fiscal years) in an amount equal to such Partner’s share of the net decrease in Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). The items
to be so allocated shall be determined in accordance with Regulations Sections 1.704-2(i)(4) and 1.704-2(i)(2). This Section 7.3(B) is intended to comply with the minimum gain chargeback requirement in Regulations Section 1.704-2(i)(4) and
shall be interpreted consistently therewith. 
 C. Qualified Income Offset. In the event any Partner unexpectedly receives any
adjustments, allocations, or distributions described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5), or Section 1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be specially
allocated to each such Partner in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit of such Partner as quickly as possible, provided that an allocation pursuant to this
Section 7.3(C) shall be made only if and to the extent that such Partner would have an Adjusted Capital Account Deficit after all other allocations provided for this Section 7 have been tentatively made, as if this Section 7.3(C) were
not in the Agreement. 
 D. Gross Income Allocation. In the event any Partner has a deficit Capital Account at the end of any
Partnership fiscal year which is in excess of the sum of (i) the amount such Partner is obligated to restore pursuant to any provision of this Agreement, and (ii) the amount such Partner 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), each such Partner shall be specifically allocated items of Partnership income and gain in the amount of such excess as quickly as possible, provided that an allocation
pursuant to this Section 7.3(D) shall be made only if and to the extent that such Partner would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Section 7 have been made as if
Section 7.3(C) hereof and this Section 7.3(D) were not in the Agreement. 
 E. Preferential Gross Income Allocations. If
and to the extent Partners are credited with the right to receive distributions from the Partnership in respect of any fiscal period, or portion thereof, during which such Partners are the holders of 

  

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Partnership Interests (other than (i) distributions pursuant to Section 14.2 in final liquidation of the Partnership), each such Partner shall be
allocated an equal amount of Partnership gross income, excluding Gains and Losses, prior to any allocations of Net Profit and Net Loss pursuant to Sections 7.1 and 7.2 above. For purposes of this Section 7.3(E), any payment with respect to a
Preference Unit that, under the applicable Preference Unit Term Sheet or Other Securities Term Sheet, as the case may be, constitutes a payment in redemption of such Preference Unit shall not be considered a distribution except to the extent such
payment is specifically attributable to accrued and unpaid preferred distributions with respect to such Preference Unit provided for in such Term Sheet. 
 F. Nonrecourse Deductions. Nonrecourse Deductions for any fiscal year shall be allocated among the Partners in accordance with their respective Percentage Interests. 
 G. Partner Nonrecourse Deductions. Any Partner Nonrecourse Deductions for any fiscal year shall be specially allocated to the Partner 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)(1). 
 H. Section 754 Adjustments. To the extent 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 Partner in complete liquidation of his interest in the Partnership, the amount of such adjustment to 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 specifically allocated to the Partners in accordance with their respective Percentage Interests in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or the
Partner to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies. 
 I. Allocation
of Net Gains and Net Losses to LTIP Units. Net Gains shall be specially allocated to the holders of LTIP Units, in an amount as specified in the LTIP Unit Designation relating to each class or series of LTIP Units. In no event shall an
allocation under this Section 7.3(I) cause the Capital Accounts related to LTIP Units to exceed the LTIP Capital Target. Net Losses shall be specially allocated to the holders of LTIP Units to the extent of and in proportion to their respective
Capital Accounts. In no event shall an allocation of Net Losses under this Section 7.3(I) create a deficit Capital Accounts balance in respect of any LTIP Units. LTIP Units not issued prior to the recognition of Partnership Net Gains or Net
Losses shall not be considered in determining the amount of the special allocation under this Section 7.3(I). Net Gains and Net Losses not allocated under this Section 7.3(I) shall be allocated as Net Profits and Net Losses under Sections
7.1 and 7.2 of this Agreement. 
 J. Conversion of Preferred Units. Upon the conversion of Preferred Units to OP Units, Net Gains or
Net Losses shall be specially allocated to the holders of Preferred Units so that, to the extent possible, the Capital Account attributable to each OP Unit issued upon conversion of the Preferred Units is equal to the OP Unit Net Asset Value. An
allocation pursuant to this Section 7.3(J) shall be made only if and to the extent that such Preferred Units would have a Capital Account greater to or less than the OP Unit Net Asset Value after all other allocations provided for in this
Section 7 have been made as if this Section 7.3(J) were not in the Agreement. 
  

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 K. Sequence of Special Allocations. The Partnership shall apply the Special Allocations under
this Section 7.3 in the following priority: Section 7.3(A), 7.3(B), 7.3(E), 7.3(J), 7.3(I), 7.3(D), 7.3(C), 7.3(F), 7.3(G). 
 7.4
Curative Allocations. The allocations set forth in Sections 7.3(A), 7.3(B), 7.3(C), 7.3(D), 7.3(F), 7.3(G) and 7.3(H) above (the “Regulatory Allocations”) are intended to comply with certain requirements of the Regulations under
Sections 704(b) and 514(c)(9)(E) of the Code. It is the intent of the Partners that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of
Partnership income, gain, loss, or deduction pursuant to this Section 7.4. Therefore, notwithstanding any other provision of this Section 7 (other than the Regulatory Allocations), the General Partner shall make such offsetting special
allocations of Partnership income, gain, loss, or deduction in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account balance is, to the extent possible, equal to the
Capital Account balance such Partner would have had if the Regulatory Allocations were not part of the Agreement and all Partnership items were allocated pursuant to Sections 7.1 and 7.2(A) (subject, however, to Section 7.3(E) above), and so
that, to the greatest extent possible, such allocations comply with the Regulations under Code Section 514(c)(9)(E). In exercising its discretion under this Section 7.4, the General Partner shall take into account future Regulatory
Allocations under Sections 7.3(A) and 7.3(B) that, although not yet made, are likely to offset other Regulatory Allocations previously made under Sections 7.3(F) and 7.3(G). 
 7.5 Tax Allocations: Code Section 704(c). 
 A. Income, gain, loss, and deduction with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners so as to take account of any variation
between the adjusted basis of such property to the Partnership for Federal income tax purposes and its initial Gross Asset Value in accordance with any permissible manner or manners under Code Section 704(c) and the Regulations thereunder.

 B. In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to the definition of “Gross Asset Value”
contained in Section 2 above, subsequent allocations of income, gain, loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for Federal income tax purposes and its Gross
Asset Value in accordance with any permissible manner or manners under Code Section 704(c) and the Regulations thereunder. 
 C. Any
elections or other decisions relating to such allocations shall be made by the General Partner in any permissible manner under the Code or the Regulations that the General Partner may elect in its sole discretion. Allocations pursuant to this
Section 7.5 are solely for purposes of Federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Net Profits, Net Losses, other items, or distributions
pursuant to any provision in this Agreement. 
 8. Cash Available For Distribution. 
 8.1 Operating Cash Flow. As used in this Agreement, “Operating Cash Flow” shall mean and be defined as all cash receipts of the
Partnership from whatever source (but excluding Capital Cash Flow and excluding the proceeds of any additional Capital Contributions to the Partnership pursuant to Section 3.3 above) during the period in question in excess of all items of
Partnership expense (other than non-cash expenses such as depreciation) and other cash needs of the Partnership, including, without limitation, amounts paid by the Partnership as principal on debts and advances, during such period, capital
expenditures and any reserves (as determined by the General Partner) established or increased during such period. In the discretion of the General Partner, 

  

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reserves may include cash held for future acquisitions. Operating Cash Flow shall be distributed to or for the benefit of the Partners including, to the
extent provided in the applicable LTIP Unit Declaration, holders of LTIP Units, of record as of the applicable Record Date not less frequently than annually, and shall be distributed: first to those Partners holding Preference Units to the extent of
the respective priorities (if any) established by the applicable Preference Unit Term Sheets and Other Securities Term Sheets; and then the balance prorata among the Partners holding OP Units and LTIP Units (on the basis of the OP Unit Value of each
outstanding class or series of LTIP Units as set forth in the applicable LTIP Unit Designation, which will in no event exceed one OP Unit per LTIP Unit) and the Partners holding Preference Units which, based on the provisions of the applicable
Preference Unit Term Sheets and Other Securities Term Sheets, entitle such Partners to participate in such distributions on a pari passu basis with the holders of OP Units and LTIP Units (the “Residual Operating Cash Flow Units”), to each
Partner based on the quotient (expressed as a percentage) arrived at by dividing (i) the sum of the OP Unit Value of any Residual Operating Cash Flow Units held by that Partner and the number of OP Units and OP Unit Value of LTIP Units held by
that Partner by (ii) the sum of the OP Unit Value of all Residual Operating Cash Flow Units and LTIP Units issued and outstanding at the time and the total number of OP Units issued and outstanding at the time. Notwithstanding the foregoing,
any incoming Limited Partners who were admitted during the applicable quarter (but excluding any incoming Partners who received Units from an existing Limited Partner) and who held Units as of an applicable Record Date, but held such Units for less
than the entire period with respect to which an Operating Cash Flow distribution is to be paid, shall be entitled to receive a pro-rated portion of such Operating Cash Flow distribution otherwise payable to such Partner based on the number of days
such Units were outstanding during the applicable period, or any other method of pro-ration deemed equitable by the General Partner, and in such event, if the General Partner, in its sole discretion, deems it necessary, the amount of the
distribution payable to all other Partners shall be adjusted accordingly. 
 8.2 Capital Cash Flow. As used in this Agreement,
“Capital Cash Flow” shall mean and be defined as collectively (a) gross proceeds realized in connection with the sale of any assets of the Partnership, (b) gross financing or refinancing proceeds, (c) gross condemnation
proceeds (excluding condemnation proceeds applied to restoration of remaining property) and (d) gross insurance proceeds (excluding rental insurance proceeds or insurance proceeds applied to restoration of property), less (a) closing
costs, (b) the cost to discharge any Partnership financing encumbering or otherwise associated with the asset(s) in question, (c) the establishment of reserves (as determined by the General Partner, and which may include cash held for
future acquisitions), and (d) other expenses of the Partnership then due and owing. Subject to Section 14.2 below, if applicable, Capital Cash Flow shall be distributed to or for the benefit of the Partners, including, to the extent
provided in the applicable LTIP Unit Declaration, holders of LTIP Units, of record as of the applicable Record Date not less frequently than annually and shall be distributed: first to the Partners holding Preference Units to the extent of the
respective priorities (if any) established by the applicable Preference Unit Term Sheets and Other Securities Term Sheets; and then the balance prorata among those Partners holding OP Units and LTIP Units (on the basis of the OP Unit Value of each
outstanding class or series of LTIP Units as set forth in the applicable LTIP Unit Designation which will in no event exceed one OP Unit per LTIP Unit) and those Partners holding Preference Units which, based on the provisions of the applicable
Preference Unit Term Sheets and Other Securities Term Sheets, entitle such Partners to participate in such distributions on a pari passu basis with the holders of OP Units (the “Capital Cash Flow Preference Units”), to each Partner based
on the quotient (expressed as a percentage) arrived at by dividing (i) the sum of the OP Unit Value of any Capital Cash Flow Preference Units and LTIP Units held by that Partner and the number of OP Units held by that Partner by (ii) the
sum of the OP Unit Value of all Capital Cash Flow Preference Units and LTIP Units issued and outstanding at the time and the total number of OP Units issued and outstanding at the time. Notwithstanding the foregoing, the General Partner reserves the
right to pro-rate distributions of Capital Cash Flow to incoming 

  

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Limited Partners who were admitted during the applicable quarter (but excluding any incoming Partners who received Units from an existing Limited Partner)
and who held Units as of the applicable Record Date but held such Units for less than the entire period with respect to which the Capital Cash Flow distribution is to be paid, based on the number of days such Units were outstanding during the
applicable period, or any other method of pro-ration deemed equitable by the General Partner and, in such event, the amount of the distribution payable to all other Partners shall be adjusted accordingly. 
 8.3 Consent to Distributions. Each of the Partners hereby consents to the distributions provided for in this Agreement. 
 8.4 Right to Limit Distributions. The right of any Partner to receive distributions of any nature pursuant to the terms of this Agreement shall be
subject to the terms of any agreement between such Partner and the Partnership limiting, restricting or providing rights of set-off with respect to such distributions. 
 8.5 Withholding. Each Partner hereby authorizes the Partnership to withhold or pay on behalf of or with respect to such Partner any amount of federal, state, local or foreign taxes that the General Partner
determines the Partnership is required to withhold or pay with respect to any amount distributable or allocable to such Partner pursuant to this Agreement. To the extent the payment or accrual of withholding tax results in a federal, state or local
tax credit to the Partnership, such credit shall be allocated to the Partner from whom amounts were withheld from distributions. The General Partner shall report on no less than an annual basis to each Partner the amount(s) of any withholding and
the jurisdiction(s) of the withholding. The General Partner has no obligation to return amounts withheld to any Partner or to file a claim for refund with any jurisdiction on behalf of a Partner. 
 9. Management of Partnership. 
 9.1
General Partner. The General Partner shall be the sole manager of the Partnership business, and shall have the right and power to make all decisions and take any and every action with respect to the property, the business and affairs of the
Partnership and shall have all the rights, power and authority generally conferred by law, or necessary, advisable or consistent with accomplishing the purposes of the Partnership. All such decisions or actions made or taken by the General Partner
hereunder shall be binding upon all of the Partners and the Partnership. The powers of the General Partner to manage the Partnership business shall include, without limitation, the power and authority to, directly or indirectly: 
 (i) operate any business normal or customary for the owner of or investor in multifamily residential property; 
 (ii) perform any and all acts necessary or appropriate to the operation of the Partnership assets, including, but not limited to,
applications for rezoning, objections to rezoning of other property and the establishment of bank accounts in the name of the Partnership; 
 (iii) procure and maintain with responsible companies such insurance as may be available in such amounts and covering such risks as are deemed appropriate by the General Partner; 
 (iv) take and hold all real, personal and mixed property of the Partnership in the name of the Partnership or in the name of a nominee;

  

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 (v) execute and deliver leases on behalf of and in the name of the Partnership;

 (vi) borrow money (whether on a secured or unsecured basis), finance and refinance the assets of the Partnership or any
part thereof or interest therein, and in connection therewith, issue notes, bonds, securities and other undertakings and evidences of indebtedness and documents related thereto (including, without limitation, guaranty, indemnities and similar
undertakings to support loans obtained or debt securities issued by the Company where the net proceeds thereof are either loaned to the Partnership or contributed to the Partnership as a Capital Contribution); 
 (vii) coordinate all accounting and clerical functions of the Partnership and employ such accountants, lawyers, property managers, leasing
agents and other management or service personnel as may from time to time be required to carry on the business of the Partnership; 
 (viii) acquire any assets, and encumber, sell, ground lease or otherwise dispose of any or all of the assets of the Partnership (including by way of merger, consolidation or other combination with any other Person), or any part thereof or
interest therein; and 
 (ix) organize one or more partnerships or limited liability companies which are controlled, directly
or indirectly, by the Partnership (including, without limitation, Equity Residential Management, L.L.C.) and make any capital contributions required pursuant to the partnership or limited liability company agreements of any such partnerships or
limited liability companies. 
 (x) establish the date (the “Record Date”) for the purpose of making any proper
determination with respect to which Partners are entitled to receive distributions, consent to any matter for which the consent of Partners is permitted or required under any provision hereof, or otherwise be allocated rights hereunder. 

9.2 Limitations on Powers and Authorities of Partners. Notwithstanding the powers of the General Partner set forth in Section 9.1 above,
no Partner shall have the right or power to do any of the following: 
 (a) do any act in contravention of this Agreement, or
any amendment hereto; 
 (b) do any act which would make it impossible to carry on the ordinary business of the Partnership,
except to the extent that such act is specifically permitted by the terms hereof (it being understood and agreed that, except as hereafter provided in this Section 9.2, a sale of any or all of the assets of the Partnership, for example, would
be an ordinary part of the Partnership’s business and affairs and is specifically permitted hereby); or 
 (c) confess a
judgment against the Partnership. 
  

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 9.3 Limited Partners. The Limited Partners shall have no right or authority to act for or to bind
the Partnership and no Limited Partner shall participate in the conduct or control of the Partnership’s affairs or business. 
 9.4
Liability of General Partner. The General Partner shall not be liable or accountable, in damages or otherwise, to the Partnership or to any other Partner for any error of judgment or for any mistakes of fact or law or for anything which it
may do or refrain from doing hereafter in connection with the business and affairs of the Partnership except (i) in the case of fraud, willful misconduct (such as an intentional breach of fiduciary duty or an intentional breach of this
Agreement) or gross negligence, and (ii) for other breaches of this Agreement, but the liability of the General Partner under this clause (ii) shall be limited to its interest in the Partnership as more particularly provided for in
Section 9.8 below. The General Partner shall not have any personal liability for the return of any Limited Partner’s capital. 
 9.5 Indemnity. The Partnership shall indemnify and shall hold the General Partner (and the officers and trustees thereof) harmless from any loss or damage, including without limitation reasonable legal fees and court costs, incurred
by it by reason of anything it may do or refrain from doing hereafter for and on behalf of the Partnership or in connection with its business or affairs; provided, however, that (i) the Partnership shall not be required to indemnify the General
Partner (or any officer or trustee thereof) for any loss or damage which it might incur as a result of its fraud, willful misconduct or gross negligence in the performance of its duties hereunder and (ii) this indemnification shall not relieve
the General Partner of its proportionate part of the obligations of the Partnership as a Partner. In addition, the General Partner shall be entitled to reimbursement from the Partnership for any amounts paid by it in satisfaction of indemnification
obligations owed by the General Partner to present or former trustees or officers of the General Partner or its predecessors, or other Persons indemnified by the General Partner, as provided for in or pursuant to the Declaration of Trust and By-Laws
of the General Partner or otherwise. The right of indemnification set forth in this Section 9.5 shall be in addition to any rights to which the person or entity seeking indemnification may otherwise be entitled and shall inure to the benefit of
the successors and assigns of any such person or entity. No Partner shall be personally liable with respect to any claim for indemnification pursuant to this Section 9.5, but such claim shall be satisfied solely out of assets of the
Partnership. 
 9.6 Other Activities of Partners and Agreements with Related Parties. The General Partner shall devote its full-time
efforts in furtherance of the Partnership business, it being expressly understood that, except for (i) the Company’s ownership interest in a partnership or a limited liability company of which the Partnership is a partner or a member,
respectively; (ii) the Company’s ownership of any qualified REIT subsidiary (within the meaning of the Code) or any other entity which is a partner of a partnership or a member of a limited liability company having the Partnership as a
partner or member, respectively; (iii) the Company’s ownership of any entity that owns no more than a one percent (1%) interest in any partnership, limited liability company or other entity; (iv) borrowing (including the issuance
of debt securities) where the net proceeds thereof are loaned or contributed to the Partnership; (v) any activity which the Board of Trustees of the General Partner, in its sole discretion, has determined will have a material benefit to the
General Partner and will not have a material adverse effect on the Partnership; and (vi) activities incidental to the Company’s status and existence as a real estate investment trust, the General Partner shall conduct all of its activities
with respect to the multifamily residential property business exclusively through the Partnership and shall not conduct or engage in any way in any other business. 
 9.7 Other Matters Concerning the General Partner. 
 A. The General Partner shall be protected in
relying, acting or refraining from acting on any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties. 
  

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 B. The General Partner may exercise any of the powers granted or perform any of the duties imposed by
this Agreement either directly or through agents. The General Partner may consult with counsel, accountants, appraisers, management consultants, investment bankers and other consultants selected by it, each of whom may serve as consultants for the
Partnership. An opinion by any consultant on a matter which the General Partner believes to be within its professional or expert competence shall be full and complete protection as to any action taken or omitted by the General Partner based on the
opinion and taken or omitted in good faith. The General Partner shall not be responsible for the misconduct, negligence, acts or omissions of any consultant or contractor of the Partnership or of the General Partner, and shall assume no obligations
other than to use due care in the selection of all consultants and contractors. 
 C. No mortgagee, grantee, creditor or any other person
dealing with the Partnership shall be required to investigate the authority of the General Partner or secure the approval of or confirmation by any Limited Partner of any act of the General Partner in connection with the conduct of the Partnership
business. 
 D. The General Partner may retain such persons or entities as it shall determine (including the General Partner or any entity
in which the General Partner shall have an interest or with which it is affiliated) to provide services to or on behalf of the Partnership. The General Partner shall be entitled to reimbursement from the Partnership for its out-of-pocket expenses
(including, without limitation, amounts paid or payable to the General Partner or any entity in which the General Partner shall have an interest or with which it is affiliated) incurred in connection with Partnership business. Such expenses shall be
deemed to include those expenses required in connection with the administration of the Partnership such as the maintenance of Partnership books and records, management of the Partnership property and assets and preparation of information respecting
the Partnership needed by the Partners in the preparation of their individual tax returns. 
 E. The General Partner may loan to the
Partnership the net proceeds of loans obtained or debt securities issued by the Company so long as the terms of such loan to the Partnership are substantially equivalent to the corresponding loan obtained or debt securities issued by the Company.

 9.8 Partner Exculpation. Except for fraud, willful misconduct and gross negligence, no Partner shall have any personal liability
whatever, whether to the Partnership or to the other Partner, for the debts or liabilities of the Partnership or its obligations hereunder, and the full recourse of the other Partner shall be limited to the interest of that Partner in the
Partnership. To the fullest extent permitted by law, no officer, trustee or shareholder of the General Partner shall be liable to the Partnership for money damages except for (i) active and deliberate dishonesty established by a final judgment
or (ii) actual receipt of an improper benefit or profit in money, property or services. Without limitation of the foregoing, and except for fraud, willful misconduct and gross negligence, no property or assets of any Partner, other than its
interest in the Partnership, shall be subject to levy, execution or other enforcement procedures for the satisfaction of any judgment (or other judicial process) in favor of any other Partner(s) and arising out of, or in connection with, this
Agreement. This Agreement is executed by the officers or general partners of each Partner solely as officers or partners of the same and not in their own individual capacities. No advisor, trustee, officer, partner, employee, beneficiary,
shareholder, participant or agent of any Partner (or of any partner of a Partner) shall be personally liable in any matter or to any extent under or in connection with this Agreement, and the Partnership, each Partner and their respective successors
and assigns shall look solely to the interest of the other Partner in the Partnership for the payment of any claim or for any performance hereunder. 
  

 26 

 9.9 General Partner Expenses and Liabilities. All costs and expenses incurred by the Company in
connection with its activities as the General Partner hereunder, all costs and expenses incurred by the Company in connection with its continued corporate existence, qualification as a real estate investment trust under the Code and otherwise, and
all other liabilities incurred or suffered by the General Partner in connection with the pursuit of its business and affairs as contemplated hereunder and in connection herewith, shall be paid (or reimbursed to the Company, if paid by the Company)
by the Partnership unless and to the extent that any such costs were paid by the Company in connection with the issuance of additional shares of beneficial interest of the Company as contemplated by Section 3.3(B) above. Notwithstanding
anything to the contrary contained herein, this Section 9.9 shall apply only to the extent that such costs, expenses or liabilities exceed any cash distributed to the General Partner by any wholly-owned subsidiary of the General Partner.

 10. Banking. The funds of the Partnership shall be kept in accounts designated by the General Partner and all withdrawals therefrom
shall be made on such signature or signatures as shall be designated by the General Partner. 
 11. Accounting. 
 11.1 Fiscal Year. The fiscal year and taxable year of the Partnership (the “fiscal year”) shall end on the last day of December of each
year, unless another fiscal year end is selected by the General Partner. 
 11.2 Books of Account. The Partnership books of account
shall be maintained at the principal office designated in Section 4 above or at such other locations and by such person or persons as may be designated by the General Partner. The Partnership shall pay the expense of maintaining its books of
account. Each Partner shall have, during reasonable business hours and upon reasonable prior notice, access to the books of the Partnership and in addition, at its expense, shall have the right to copy such books. The General Partner, at the expense
of the Partnership, shall cause to be prepared and distributed to the Partners annual financial data sufficient to reflect the status and operations of the Partnership and its assets and to enable each Partner to file its federal income tax return.

 11.3 Method of Accounting. The Partnership books of account shall be maintained and kept, and its income, gains, losses and
deductions shall be accounted for, in accordance with sound principles of accounting consistently applied, or such other method of accounting as may be adopted hereafter by the General Partner. All elections and options available to the Partnership
for Federal or state income tax purposes shall be taken or rejected by the Partnership in the sole discretion of the General Partner. 
 11.4
Section 754 Election. In case of a distribution of property made in the manner provided in Section 734 of the Code (or any similar provision enacted in lieu thereof), or in the case of a transfer of any interest in the Partnership
permitted by this Agreement made in the manner provided in Section 743 of the Code (or any similar provision enacted in lieu thereof), the General Partner, on behalf of the Partnership, will file an election under Section 754 of the Code
(or any similar provision enacted in lieu thereof) in accordance with the procedures set forth in the applicable Regulations. 
  

 27 

 11.5 Tax Matters Partner. The General Partner is hereby designated the Tax Matters Partner
(hereinafter referred to as the “TMP”) of the Partnership and shall have all the rights and obligations of the TMP under the Code. 
 11.6 Administrative Adjustments. If the TMP receives notice of a Final Partnership Administrative Adjustment (the “FPAA”) or if a request for an administrative adjustment made by the TMP is not allowed by the United States
Internal Revenue Service (the “IRS”) and the IRS does not notify the TMP of the beginning of an administrative proceeding with respect to the Partnership’s taxable year to which such request relates (or if the IRS so notifies the TMP
but fails to mail a timely notice of an FPAA), the TMP may, but shall not be obligated to, petition a Court for readjustment of partnership items. In the case of notice of an FPAA, if the TMP determines that the United States District Court or
Claims Court is the most appropriate forum for such a petition, the TMP shall notify each person who was a Partner at any time during the Partnership’s taxable year to which the IRS notice relates of the approximate amount by which its tax
liability would be increased (based on such assumptions as the TMP may in good faith make) if the treatment of partnership items on his return was made consistent with the treatment of partnership items on the Partnership’s return, as adjusted
by the FPAA. Unless each such person deposits with the TMP, for deposit with IRS, the approximate amount of his increased tax liability, together with a written agreement to make additional deposits if required to satisfy the jurisdictional
requirements of the Court, within thirty days after the TMP’s notice to such person, the TMP shall not file a petition in such Court. Instead, the TMP may, but shall not be obligated to, file a petition in the United States Tax Court.

 12. Transfers of Partnership Interests. 
 A. General Partner. In no event may the General Partner at any time assign, sell, transfer, pledge, hypothecate or otherwise dispose of all or any portion of its Partnership Interest, except by operation of
law. 
 B. Limited Partner. 
 (i) No Limited Partner or substituted Limited Partner shall, without the prior written consent of the General Partner (which consent may be given or withheld in the sole discretion of the General Partner), sell, assign, distribute or
otherwise transfer (a “Transfer”) all or any part of his interest in the Partnership, except (w) by operation of law, testamentary disposition, gift (outright or in trust) or by sale, in each case to or for the benefit of his
parent(s), spouse or descendants, (x) pledges or other collateral transfers effected by a Limited Partner to secure the repayment of a bona fide loan or other obligation (a “Pledge”) and the subsequent foreclosure or satisfaction
thereof by transfer of such OP Units, (y) the exchange of OP Units for shares of beneficial interest of the Company, pursuant to Section 3.2(C) above, and (z) the distribution of OP Units or Preference Units by a Limited Partner to
any of its direct or indirect constituent partners or owners. Notwithstanding the foregoing, each such transfer shall be subject to compliance with restrictions on transferability contained in any other applicable agreement executed by the
transferor and compliance with applicable securities laws; the General Partner reserves the right to require an opinion of counsel regarding such matters in form and substance reasonably acceptable to the General Partner as a condition to any such
Transfer. Neither the conversion of a Preference Unit into one or more OP Units nor the conversion of OP Unit into a Common Share constitutes a Transfer. A Limited Partner shall notify the General Partner of any Transfer of beneficial interest or
other interest which occurs without a transfer of record ownership, as well as any pledge or other collateral transfer. No part of the interest of a Limited Partner shall be subject to the claims of any creditor, 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. A Limited Partner shall not be permitted to retire or withdraw from the Partnership except as
expressly permitted by this Agreement. 
  

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 (ii) An Assignee, legatee, distributee or other transferee (whether by conveyance, operation of law or
otherwise) (including any pledgee upon realization of its rights as a secured creditor) (a “Transferee”) of all or any portion of a Limited Partner’s interest in the Partnership shall be entitled to receive Net Profits, Net Losses and
distributions hereunder attributable to such interest acquired by reason of such Transfer, from and after the effective date of the Transfer of such interest, and Assignees shall have the ability to exercise the rights granted to Limited Partners
under Section 3.2(C), but shall not have any consent rights with respect to any matter presented to Limited Partners for approval; provided, however, anything in this Agreement to the contrary notwithstanding, (a) no Transfer by a Limited
Partner shall be effective until such Transfer has been consented to by the General Partner except as provided in Section 12(B)(i); (b) without the prior written consent of the General Partner, no Transferee shall be considered a
substituted Limited Partner except as provided in Section 12(B)(i)(w) and (z) and, in any event, until such Transferee shall have agreed to be bound by the terms of this Agreement and shall have executed a counterpart hereof; (c) the
Partnership and the General Partner shall be entitled to treat the transferor of such interest as the absolute owner thereof in all respects, and shall incur no liability for the allocation of Net Profits and Net Losses or distributions which are
made to such transferor until such time as the written instrument of Transfer has been received by the General Partner and the “effective date” of the Transfer has passed, (d) the General Partner shall have the right to require any
such transferor to exchange the OP Units to which such interest relates for Common Shares, pursuant to Section 3.2(C) above, excluding Pledges of OP Units but including any transfer of the pledged OP Units, whether to the secured party or
otherwise, pursuant to such party’s exercise of its remedies under the Pledge or the related loan or obligation, and (e) an Assignee shall not be bound by any amendments, modifications or changes to this Agreement that would adversely
affect its rights under Section 3.2(C) or this Section 12(B)(ii) without its consent. The “effective date” of any Transfer shall be the last day of the month set forth on the written instrument of Transfer or such other date
consented to in writing by the General Partner as the “effective date”. 
 (iii) Notwithstanding anything to the contrary
contained in this Section 12(B), (a) in the event a Limited Partner distributes in dissolution and liquidation all or any portion of its interest in the Partnership, the partners, shareholders or members (as the case may be) in such
Limited Partner receiving such interest shall become substituted Limited Partners, and shall (upon agreeing to be bound by the terms of this Agreement and executing a counterpart hereof and/or any Preference Unit Terms Sheet or Other Securities Term
Sheet) succeed to the rights, interests and obligations of such Limited Partner in the Partnership, in proportion to their respective interests in such Limited Partner, and (b) no Transfer shall be effective to the extent that such Transfer
would, in the opinion of the General Partner (y) by treating the interest in the Partnership so transferred as if it had been exchanged for Common Shares in accordance with Section 3.2(C) above, violate the limitations on ownership of
Common Shares contained in Article VII of the Declaration of Trust of the Company, or (z) violate any State or Federal securities laws. 
 C. LTIP Units. No holder of LTIP Units may sell, assign, distribute or otherwise transfer (an “LTIP Transfer”) any LTIP Units, except by operation of law, testamentary disposition, gift (outright or in trust), in each case
to or for the benefit of his parent(s), spouse or descendants and any attempted Transfer not expressly permitted by this Section 12(C) shall be void ab initio. Any permitted transferee of LTIP Units shall assume the status of an
“Assignee” of such LTIP Units, shall be entitled to receive Net Profits, Net Losses and distributions hereunder attributable to such interest acquired by reason of such Transfer, from and after the effective date of the Transfer of such
LTIP Units. The Partnership and the General Partner shall be entitled to treat the transferor of such LTIP Units as the absolute owner thereof in all respects, and shall incur no liability for the allocation of Net Profits and Net 

  

 29 

 
Losses or distributions which are made to such transferor until such time as the written instrument of LTIP Transfer has been received by the General Partner
and the “effective date” of the LTIP Transfer has passed. The “effective date” of any LTIP Transfer shall be the last day of the month set forth on the written instrument of LTIP Transfer or such other date consented to in
writing by the General Partner as the “effective date”. The General Partner may, in its sole discretion, require any permitted transferee of LTIP Units to agree in writing to be bound by the terms and provisions of this Agreement prior to
such transferees admission as a Limited Partner if and when any LTIP Units which have been the subject of an LTIP Transfer automatically convert to OP Units. 
 D. Admission Adjustments. The General Partner shall, when necessary, cause this Agreement to be amended from time to time to reflect the addition or withdrawal of Partners, and the issuance, conversion,
cancellation and redemption of any LTIP Units, Preference Units and/or OP Units (including the corresponding adjustments to Percentage Interests). 
 E. Limitation. Notwithstanding any other provision of this Agreement to the contrary, no sale, exchange, assignment, or other transfer or issuance of a Partnership Interest by or to any Partner shall be effective, if the effect of
such transaction would be to cause the General Partner’s Percentage Interest to decrease to a level of fifty percent (50%) or less. 
 13. Admission of New Partners. The General Partner shall admit to the Partnership as Limited Partners those persons and entities who are not already Partners and who receive OP Units and/or Preference Units in accordance with the
provisions of this Agreement. 
 14. Termination, Liquidation and Dissolution of Partnership. 
 14.1 Termination Events. Partnership shall be dissolved and its affairs wound up in the manner hereinafter provided upon the earliest to occur of
the following events: 
  

	 	(a)	the agreement of those Partners holding at least ninety percent (90%) of the Percentage Interests of all of the Partners, exclusive of any Percentage Interests attributable to
LTIP Units, determining that the Partnership should be dissolved; or 

  

	 	(b)	subject to Section 14.4 below, the entry of a final judgment, order or decree of a court of competent jurisdiction adjudicating as bankrupt either the Partnership or the
General Partner, and the expiration without appeal of the period, if any, allowed by applicable law to appeal therefrom. 

 14.2 Method of Liquidation. Upon the happening of any of the events specified in Section 14.1 above, the General Partner (or if there be no General Partner, a liquidating trustee selected by those Limited Partners holding in the
aggregate more than fifty percent 50% of the Percentage Interests held by all Limited Partners) shall immediately commence to wind up the Partnership’s affairs and shall liquidate the assets of the Partnership as promptly as possible, unless
the General Partner, or the liquidating trustee, shall determine that an immediate sale of Partnership assets would cause undue loss to the Partnership, in which event the liquidation may be deferred for a reasonable time. The Partners shall
continue to share Operating Cash Flow, Capital Cash Flow, Net Profits and Net Losses during the period of liquidation in the same proportions as before dissolution (subject to Section 14.2(C) below). The proceeds from liquidation of the
Partnership, including repayment of any debts of Partners to the Partnership, shall be applied in the order of priority as follows: 
 A.
Debts of the Partnership, including repayment of principal and interest on loans and advances made by the General Partner pursuant to Sections 3.3 and/or 9.7 above; then 
  

 30 

 B. To the establishment of any reserves deemed necessary or appropriate by the General Partner, or by
the person(s) winding up the affairs of the Partnership in the event there is no remaining General Partner of the Partnership, for any contingent or unforeseen liabilities or obligations of the Partnership. Such reserves established hereunder shall
be held for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the General Partner, or such person(s) deems advisable, the balance of such reserves shall be distributed in the
manner provided hereinafter in this Section 14.2 as though such reserves had been distributed contemporaneously with the other funds distributed hereunder; then 
 C. To the Partners, including the holders of LTIP Units, in accordance with their respective Capital Account balances, after giving effect to all contributions, distributions and allocations for all periods. In
connection therewith, the Company, as the holder of Preference Units, shall be allocated gross income to the extent necessary to cause its Capital Account balance to equal the amount established in the applicable Other Securities Term Sheet upon any
voluntary or involuntary dissolution, liquidation or winding up of the Partnership; provided, that no such gross income allocation shall be made to the Company to the extent that such allocation would result in any additional Net Loss (or item
thereof) being allocated to any Obligated Partner. 
 14.3 Date of Termination. The Partnership shall be terminated when all notes
received in connection with such disposition have been paid and all of the cash or property available for application and distribution under Section 14.2 above (including reserves) shall have been applied and distributed in accordance
therewith. 
 14.4 Reconstitution Upon Bankruptcy. 
 A. Notwithstanding any dissolution of the Partnership under clause (c) of Section 14.1 above, if the Partnership is reconstituted as set forth in this Section 14.4, then the business of the Partnership
shall be continued with the Partnership’s property and the Partnership’s assets shall not be liquidated. 
 B. If the Partnership
is dissolved by reason of the bankruptcy of the General Partner, a successor general partner may be admitted within 90 days after the dissolution, effective as of the date of dissolution, as the General Partner hereunder, with the written consent of
those Limited Partners holding more than 50% of the aggregate Percentage Interests of all Limited Partners. Upon the admission of such successor general partner, without any further consent or approval of any other Partner, the Partnership shall be
reconstituted as a successor limited partnership. 
 C. If the Partnership is dissolved by reason of the bankruptcy of the Partnership in a
proceeding for the reorganization (and not the liquidation) of the Partnership, then, with the consent of the Company and those Limited Partners holding at least fifty percent (50%) of the Percentage Interests held by all Limited Partners, the
Partnership may be reconstituted within 90 days after dissolution, effective as of the date of dissolution, whereupon the Partnership shall be reconstituted as a successor limited partnership. 
  

 31 

 D. The successor limited partnership reconstituted in accordance with the foregoing provisions of this
Section 14.4 shall continue the business of the Partnership with the Partnership’s property. The Percentage Interests of the Partners in the successor limited partnership shall be in proportion to their respective Percentage Interests in
the dissolved Partnership. Such successor limited partnership shall be governed by the terms and provisions of this Agreement and references in this Agreement to the Partnership or to the Partners or their rights and obligations shall be understood
to comprehend such successor limited partnership and the Partners thereof and their rights and obligations. 
 14.5 Death, Legal
Incompetency, Etc. of a Limited Partner. The death, legal incompetency, insolvency, dissolution or bankruptcy of a Limited Partner shall not dissolve or terminate the Partnership. Upon the death or incapacity of an individual Limited Partner,
such individual Limited Partner’s interest in the Partnership shall be transferred either by will, the laws of intestacy or otherwise to the legal representative or successor of such individual Limited Partner. 
 15. Power of Attorney. Each Limited Partner hereby irrevocably constitutes and appoints the Chief Executive Officer of the General Partner with
full power of substitution, its true and lawful attorney, for him and in his name, place and stead and for his use and benefit, to sign, swear to, acknowledge, file and record: 
 (i) this Agreement, and subject to Section 16 below, amendments to this Agreement; 
 (ii) any certificates, instruments and documents (including assumed and fictitious name certificates) as may be required by, or may be
appropriate under, the laws of the State of Illinois or any other State or jurisdiction in which the Partnership is doing or intends to do business, in order to discharge the purposes of the Partnership or otherwise in connection with the use of the
name or names used by the Partnership; 
 (iii) any other instrument which may be required to be filed or recorded by the
Partnership on behalf of the Partners under the laws of any State or by any governmental agency in order for the Partnership to conduct its business; 
 (iv) any documents which may be required to effect the continuation of the Partnership, the admission of a substitute or additional Partner, or the dissolution and termination of the Partnership, provided such
continuation, admission or dissolution and termination is not in violation of any provision of this Agreement; and 
 (v) any
documents which may be required or desirable to have the General Partner appointed, and act as, the “Tax Matters Partner” as described in the Code. 
 The foregoing grant of authority is a special power of attorney coupled with an interest, is irrevocable and shall survive the death or incapacity of any individual Limited Partner, and shall survive the delivery of any assignment by a
Limited Partner of the whole or any portion of his interest in the Partnership. 
 16. Amendment of Agreement. 
 A. Each Partner, by his execution of or joinder in this Agreement, hereby irrevocably appoints the Chairman of the Board of the General Partner (or the
Co-Chairmen acting together if there be more than one) with power of substitution, as his true and lawful attorney coupled with an interest, in his name, place and stead to amend this Agreement in any respect other than: 
 (i) to enlarge the obligation of any Partner to make contributions to the capital of the Partnership, as provided for in Section 3
above; or 
  

 32 

 (ii) except as otherwise provided for in this Agreement or as required by law, to modify
the allocation of Net Profits or Net Losses or distributions among the Partners as provided for in Section 7 and 8 above, respectively; or 
 (iii) to amend Sections 1, 3.2, 9.2, or 12; or 
 (iv) to amend this Section 16.

 B. With respect to amendments regarding Sections 16(A)(ii) or 16(A)(iii), this Agreement may be amended with the written consent of the
Company, the Zell Partners, and the Starwood Partners or their respective successors in interest, as applicable, so long as they shall remain Partners and those Limited Partners holding not less than 67% of the aggregate of Percentage Interests held
by all Limited Partners. 
 Notwithstanding the foregoing, the terms and conditions of a particular series of Preference Units may not be
changed without the written consent of the holders of at least 67% of the Preference Units within the class or series (or such greater percentage as may be provided for in the applicable Preference Unit Term Sheet or Other Securities Term Sheet, as
the case may be). 
 C. With respect to amendments regarding Sections 16(A)(i) or (iv), this Agreement may be amended only with the written
consent of all Partners. 
 In the event this Agreement shall be amended pursuant to this Section 16, the General Partner shall cause
this Agreement to be amended to reflect the amendment. 
 17. Miscellaneous. 
 17.1 Notices. Any notice, election or other communication provided for or required by this Agreement shall be in writing and shall be deemed to
have been given when delivered by hand or by telecopy or other facsimile transmission, the first business day after sent by overnight courier (such as Federal Express), or on the second business day after deposit in the United States Mail, certified
or registered, return receipt requested, postage prepaid, properly addressed to the Partner to whom such notice is intended to be given at the address for the Partner set forth on the signature pages of this Agreement, or at such other address as
such person may have previously furnished in writing to the Partnership and each Partner. 
 17.2 Modifications. Except as otherwise
provided in this Agreement, no change or modification of this Agreement, nor any waiver of any term or condition in the future, shall be valid or binding upon the Partners unless such change or modification shall be in writing and signed or
consented to by all of the Partners necessary to effect such change, modification or waiver. 
 17.3 Successors and Assigns. Any
person acquiring or claiming an interest in the Partnership, in any manner whatsoever, shall be subject to and bound by all of the terms, conditions and obligations of this Agreement to which his predecessor-in-interest was subject or bound, without
regard to whether such a person has executed a counterpart hereof or any other document contemplated 

  

 33 

 
hereby. No person, including the legal representative, heir or legatee of a deceased Partner, shall have any rights or obligations greater than those set
forth in this Agreement, and no person shall acquire an interest in the Partnership or become a Partner thereof except as expressly permitted by and pursuant to the terms of this Agreement. Subject to the foregoing, and the provisions of
Section 12 above, this Agreement shall be binding upon and inure to the benefit of the Partners and their respective successors, assigns, heirs, legal representatives, executors and administrators. Notwithstanding the foregoing, the special
voting and consent privileges granted to the Zell Partners and the Starwood Partners contained in Article 16 shall be limited to the Zell Partners and the Starwood Partners for such time as they remain Partners and any Person acquiring Units as a
result of the exercise of remedies by a pledgee of Units held by such Partner and shall not be transferred to each Partners’ respective successor-in-interest. 
 17.4 Duplicate Originals. For the convenience of the Partners, any number of counterparts hereof may be executed, and each such counterpart shall be deemed to be an original instrument, and all of which taken
together shall constitute one agreement. 
 17.5 Construction. The titles of the Sections and subsections herein have been inserted as
a matter of convenience of reference only and shall not control or affect the meaning or construction of any of the terms or provisions herein. 
 17.6 Governing Law. This Agreement shall be governed by the laws of the State of Illinois. Except to the extent the Act is inconsistent with the provisions of this Agreement, the provisions of such Act shall apply to the Partnership.

 17.7 Other Instruments. The parties hereto covenant and agree that they will execute such other and further instruments and
documents as, in the opinion of the General Partner, are or may become necessary or desirable to effectuate and carry out the Partnership as provided for by this Agreement. 
 17.8 General Partner with Interest as Limited Partner. If the General Partner ever has an interest as a Limited Partner in the Partnership, the
General Partner shall, with respect to such interest, enjoy all of the rights and be subject to all of the obligations and duties of a Limited Partner. 
 17.9 Legal Construction. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 
 17.10 Gender. Whenever the context shall so require, all words herein in any gender shall be deemed to include the masculine, feminine or neuter
gender, all singular words shall include the plural, and all plural words shall include the singular. 
 17.11 Prior Agreements
Superseded. Except for joinders, term sheets and/or addendums that have been made or will be made and are deemed to be incorporated by reference herein and made a part hereof, this Agreement supersedes any prior understandings or written or oral
agreements amongst the parties, or any of them, respecting the within subject matter and contains the entire understanding amongst the parties with respect thereto. 
 17.12 No Third Party Beneficiary. The terms and provisions of this Agreement are for the exclusive use and benefit of General Partner and the Limited Partners and shall not inure to the benefit of any other
person or entity. 
  

 34 

 17.13 Purchase for Investment. Each Partner represents, warrants and agrees that it has acquired
and continues to hold its interest in the Partnership for its own account for investment only and not for the purpose of, or with a view toward, the resale or distribution of all or any part thereof, nor with a view toward selling or otherwise
distributing such interest or any part thereof at any particular time or under any predetermined circumstances. Each Partner further represents and warrants that it is a sophisticated investor, able and accustomed to handling sophisticated financial
matters for itself, particularly real estate investments, and that it has a sufficiently high net worth that it does not anticipate a need for the funds it has invested in the Partnership in what it understands to be a highly speculative and
illiquid investment. 
 17.14 Waiver. No consent or waiver, express or implied, by any Partner to or of any breach or default by any
other Partner in the performance by such other Partner of its obligations hereunder shall be deemed or construed to be a consent to or waiver of any other breach or default in the performance by such other Partner of the same or any other
obligations of such Partner hereunder. Failure on the part of any Partner to complain of any act or failure to act on the part of any other Partner or to declare any other Partner in default, irrespective of how long such failure continues, shall
not constitute a waiver by such Partner of its rights hereunder. 
 17.15 Time of Essence. Time is hereby expressly made of the
essence with respect to the performance by the parties of their respective obligations under this Agreement. 
  

 35 

 IN WITNESS WHEREOF, the General Partner (on behalf of itself and as attorney-in-fact for the Limited
Partners pursuant to Section 16 hereof) has executed this Agreement as of the date first written above. 
  

					
	GENERAL PARTNER:
	
	EQUITY RESIDENTIAL, a Maryland real estate investment trust
			
	By:	 	 /s/ David J. Neithercut
	 	
		 	Chief Executive Officer and President	 	
	
	LIMITED PARTNERS:
			
	By:	 	 /s/ David J. Neithercut
	 	
		 	David J. Neithercut	 	
		 	Chief Executive Officer and President,	 	
		 	as Attorney-in-Fact	 	

  

 36 

 SCHEDULE A 
 LIMITED PARTNER 
 515 Lake-Two Lakes General Partnership 
 E-BS Associates 
 E-FH-One, Inc. 
 E-FH-Two , Inc. 
 E-FH-Three, Inc. 
 E-G-Three
Associates 
 E-QR Associates 
 E-SD Associates 
 E-V-One Associates 
 E-V-Two Associates 
 E-V-Three Associates 
 FC Partnership, Ltd. 
 FU Associates 
 Hidden Valley Joint Venture 
 Mallgate Investors 
 Maxwell Apartments Limited Partnership 
 SE Continental Villas Limited Partnership 
 SE Governor’s Place
Associates Limited Partnership 
 SE Plantation Limited Partnership 
 Southeastern Properties Associates 
 Arlington-Temple Terrace General Partnership 
 The Lakes, Ltd. 
 Valley Park South Apartments Investors 
 E-Chaparral, Inc. 
 E-Stonebrook, Inc. 
 E-G-One, Inc. 
 E-G-Two, Inc. 
 E-Lodge, Inc.

 First Capital Grave Dancer I 
 Equity Financial Investment
Company 
 Equity Properties Management Corp. 

 SCHEDULE B 
 LIMITED PARTNER 
  

	
	 Sofistar I Limited Partnership,
a Delaware limited partnership
  
 SCP Nashville Partners, L.P.
  
 Starwood Opportunity Fund I, L.P.,
a Delaware limited
partnership
  
 Starwood Opportunity Fund IA,
L.P.,
a Delaware limited partnership
  
 Starwood Mortgage Investors III, Inc.,
a Delaware corporation
  
 Breton/Hammocks Limited Partnership,
a Delaware limited partnership

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