Document:

Exhibit 10.1

 

THIRD
amended and restated LIMITED PARTNERSHIP AGREEMENT 

 

OF

 

INDUSTRIAL
property OPERATING PARTNERSHIP LP

 

A DELAWARE LIMITED PARTNERSHIP

 

3rd day of February, 2020

 

    	 		 

     

    

 

TABLE
OF CONTENTS

 

	RECITALS	1
	 	 
	Article 1 DEFINED TERMS	4
	 	 
	Article 2 PARTNERSHIP FORMATION AND IDENTIFICATION	15
	2.1     Formation	15
	2.2     Name, Office and Registered Agent	15
	2.3     Partners	15
	2.4     Term and Dissolution	15
	2.5     Filing of Certificate and Perfection of Limited Partnership	16
	2.6     Certificates Describing Partnership Units and Special Partnership Units	16
	 	 
	Article 3 BUSINESS OF THE PARTNERSHIP	16
	 	 
	Article 4 CAPITAL CONTRIBUTIONS AND ACCOUNTS	17
	4.1     Capital Contributions	17
	4.2     Additional Capital Contributions and Issuances of Additional Partnership Interests	17
	4.3     Additional Funding	19
	4.4     Capital Accounts	19
	4.5     Percentage Interests	19
	4.6     No Interest On Contributions	20
	4.7     Return Of Capital Contributions	20
	4.8     No Third Party Beneficiary	20
	 	 
	Article 5 PROFITS AND LOSSES; DISTRIBUTIONS	20
	5.1     Allocation of Profit and Loss	20
	5.2     Distribution of Cash	23
	5.3     REIT Distribution Requirements	25
	5.4     No Right to Distributions in Kind	25
	5.5     Limitations on Return of Capital Contributions	25
	5.6     Distributions Upon Liquidation	25
	5.7     Substantial Economic Effect	25
	 	 
	Article 6 RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER	26
	6.1     Management of the Partnership	26
	6.2     Delegation of Authority	28
	6.3     Indemnification and Exculpation of Indemnitees	28
	6.4     Liability of the General Partner	30
	6.5     Reimbursement of General Partner	31
	6.6     Outside Activities	31
	6.7     Employment or Retention of Affiliates	31
	6.8     General Partner Participation	32
	6.9     Title to Partnership Assets	32
	6.10   Redemptions and Exchanges of REIT Shares	32
	6.11   No Duplication of Fees or Expenses	33

 

    	 		 

     

    

 

	Article 7 CHANGES IN GENERAL PARTNER	33
	7.1     Transfer of the General Partner’s Partnership Interest	33
	7.2     Admission of a Substitute or Additional General Partner	35
	7.3     Effect of Bankruptcy, Withdrawal, Death or Dissolution  of a General Partner	36
	7.4     Removal of a General Partner	36
	 	 
	Article 8 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS	37
	8.1     Management of the Partnership	37
	8.2     Power of Attorney	37
	8.3     Limitation on Liability of Limited Partners	38
	8.4     Ownership by Limited Partner of Corporate General Partner or Affiliate	38
	8.5     Redemption Right	38
	8.6     Registration	40
	8.7     Redemption or Conversion of Special Partnership Units	40
	8.8     Distribution Reinvestment Plan	42
	 	 
	Article 9 TRANSFERS OF LIMITED PARTNERSHIP INTERESTS	42
	9.1     Purchase for Investment	42
	9.2     Restrictions on Transfer of Limited Partnership Interests	43
	9.3     Admission of Substitute Limited Partner	44
	9.4     Rights of Assignees of Partnership Interests	45
	9.5     Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner	45
	9.6     Joint Ownership of Interests	45
	 	 
	Article 10 BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS	46
	10.1   Books and Records	46
	10.2   Custody of Partnership Funds; Bank Accounts	46
	10.3   Fiscal and Taxable Year	46
	10.4   Annual Tax Information and Report	46
	10.5   Partnership Representative; Tax Elections; Special Basis Adjustments	47
	10.6   Reports to Limited Partners	48
	 	 
	Article 11 AMENDMENT OF AGREEMENT; MERGER	49
	 	 
	Article 12 GENERAL PROVISIONS	50
	12.1   Notices	50
	12.2   Survival of Rights	50
	12.3   Additional Documents	50
	12.4   Severability	50
	12.5   Entire Agreement	50
	12.6   Pronouns and Plurals	50
	12.7   Headings	50
	12.8   Counterparts	50
	12.9   Governing Law	50

 

    	 		 

     

    

 

EXHIBITS

 

	EXHIBIT A - 	Partners, Capital Contributions and Percentage Interests or Special Percentage
                                                                          Interests

 

	EXHIBIT B -	Notice of Exercise of Redemption Right

 

    	 		 

     

    

 

THIRD AMENDED AND RESTATED LIMITED
PARTNERSHIP AGREEMENT

OF

INDUSTRIAL PROPERTY OPERATING PARTNERSHIP LP

 

RECITALS

 

This Third Amended
and Restated Limited Partnership Agreement (this “Agreement”) is entered into this 3rd day of February,
2020 between Industrial Property Trust, a Maryland real estate investment trust (the “General Partner”) and the Limited
Partners set forth on Exhibit A attached hereto. Capitalized terms used herein but not otherwise defined shall have the
meanings given them in Article 1.

 

AGREEMENT

 

WHEREAS, the General
Partner has elected to be treated as a real estate investment trust under the Internal Revenue Code of 1986, as amended commencing
with the taxable year ended December 31, 2013;

 

WHEREAS, Industrial
Property Operating Partnership LP (the “Partnership”), was formed on August 28, 2012 as a limited partnership under
the laws of the State of Delaware, pursuant to a Certificate of Limited Partnership filed with the Office of the Secretary of State
of the State of Delaware on August 28, 2012;

 

WHEREAS, the General
Partner and the Limited Partners orally entered into a Limited Partnership Agreement of the Partnership on August 28, 2012;

 

WHEREAS, the General
Partner contributed its general partner interest in the Partnership to IPT-GP Inc. (formerly known as LIT-GP Inc.), a wholly-owned
subsidiary of the General Partner (“IPT-GP”), on September 7, 2012;

 

WHEREAS, IPT-GP contributed
$2,000 to the Partnership in exchange for 200 Operating Partnership Units, and the General Partner contributed $198,000 to the
Partnership in exchange for 19,800 Operating Partnership Units on September 18, 2012;

 

WHEREAS, IPT-GP was
subsequently dissolved and its 200 Operating Partnership Units were distributed to the General Partner on March 31, 2013, resulting
in the General Partner becoming the sole general partner of the Partnership;

 

WHEREAS, Industrial
Property Advisors Group LLC contributed $1,000 to the Partnership and received 100 Special Partnership Units;

 

WHEREAS, the General
Partner and Limited Partners entered into a Limited Partnership Agreement dated as of July 16, 2013 and effective as of March 31,
2013 (the “Original Partnership Agreement”);

 

WHEREAS, the General
Partner and the Limited Partners amended and restated the Original Partnership Agreement and entered into an Amended and Restated
Limited Partnership Agreement dated August 8, 2013 (the “Amended and Restated Limited Partnership Agreement”);

 

    	 	1	 

     

    

 

WHEREAS, the General
Partner and Limited Partners entered into Amendment No. 1 to the Amended and Restated Limited Partnership Agreement as of March
5, 2014;

 

WHEREAS, the General
Partner desires to conduct its current and future business through the Partnership;

 

WHEREAS, in furtherance
of the foregoing, the General Partner has contributed and desires to continue to contribute certain assets to the Partnership from
time to time;

 

WHEREAS, in exchange
for the General Partner’s contribution of assets, the Partnership has issued and will continue to issue Partnership Units
to the General Partner in accordance with the terms of this Agreement;

 

WHEREAS, the Limited
Partners have contributed and they and future Limited Partners may contribute certain of their property to the Partnership in exchange
for Partnership Units or Special Partnership Units in accordance with the terms of this Agreement;

 

WHEREAS, in furtherance
of the Partnership’s business, the Partnership may acquire Properties and other assets from time to time by means of the
contribution of such Properties or other assets to the Partnership by the owners thereof in exchange for Partnership Units;

 

WHEREAS, the parties
hereto wish to establish herein their respective rights and obligations in connection with all of the foregoing and certain other
matters;

 

WHEREAS, the parties
hereto entered into a Second Amended and Restated Limited Partnership Agreement dated August 14, 2015 (the “Second Amended
and Restated Limited Partnership Agreement”), to effect certain changes in share classification and other changes;

 

WHEREAS, on August
20, 2019, the General Partner, Prologis, L.P., a Delaware limited partnership (“PLD”), and Rockies Acquisition
LLC, a Delaware limited liability company and a wholly-owned subsidiary of PLD, entered into an Amended and Restated Agreement
and Plan of Merger ("Merger Agreement") pursuant to which General Partner elected to engage in an asset
sale with PLD and its affiliates, rather than a merger of Rockies Acquisition LLC with and into General Partner, and the board
of directors of General Partner unanimously approved the Asset Sale (as defined below), the Merger Agreement and the other transactions
contemplated by the Merger Agreement;

 

WHEREAS, the Merger
Agreement provided for the sale of substantially all of General Partner’s assets to PLD through (i) two mergers (each, a
 "Merger" and collectively the "Mergers") of Rockies Acquisition LLC or newly formed
Delaware limited liability companies that are wholly owned subsidiaries of PLD or an affiliate of PLD with and into newly formed,
wholly owned subsidiaries of IPT Real Estate Holdco LLC, a Delaware limited liability company and indirect subsidiary of General
Partner, with each such applicable newly formed, wholly owned subsidiary of IPT Real Estate Holdco LLC surviving each Merger as
a wholly owned subsidiary of PLD or an affiliate of PLD upon the terms and subject to the conditions set forth in the Merger Agreement,
and (ii) the sale (each such asset transfer, together with the Mergers, the "Asset Sale") by IPT Real Estate
Holdco LLC of up to ten to-be-formed Delaware limited liability companies that are wholly owned subsidiaries of IPT Real Estate
Holdco LLC to PLD or an affiliate of PLD;

 

    	 	2	 

     

    

 

WHEREAS, in connection
with the Asset Sale, the General Partner agreed to sell all of its subsidiaries in which it has an ownership interest (excluding
the Partnership, IPT Real Estate Holdco LLC and its subsidiaries that hold General Partner’s collective interests in Build-to-Core
Industrial Partnership I LP, a Delaware limited partnership, and Build-to-Core Industrial Partnership II LP, a Delaware limited
partnership (together, the “BTC Portfolio”); and potentially excluding IPT Acquisition, IPT Property
Management, and IPT Services) to affiliates of PLD by way of the Asset Sale, causing the General Partner to continue to exist and
for its remaining assets to primarily consist of its interests in the BTC Portfolio, and resulting in all holders of the General
Partner’s common stock to continue to hold their respective shares of common stock in the General Partner;

 

WHEREAS, the Parties
previously agreed to generate a reduction in total, combined fees payable to Industrial Property Advisors LLC, a Delaware limited
liability company (the “Advisor”) under the Advisory Agreement, in connection with the Asset Sale or
(if the Asset Sale is not consummated) similar transactions with other parties with respect to the assets subject to the Asset
Sale;

 

WHEREAS, the Parties
previously agreed that the Advisor will receive an increased promote interest in the Partnership to the Special OP Unitholder,
such increase to be effective after the closing of the Asset Sale, which transactions the independent directors of the General
Partner unanimously approved and the board of directors of General Partner unanimously approved;

 

WHEREAS, in furtherance
of the foregoing, on or about October 7, 2019, (a) the General Partner and Limited Partners entered into an Amendment to the Second
Amended and Restated Limited Partnership Agreement, and (b) the Advisor, the General Partner and the Partnership entered into an
Amendment to the Advisory Agreement, which amendments the independent directors of the General Partner unanimously approved and
the board of directors of General Partner unanimously approved;

 

WHEREAS, Industrial
Property Advisors Group LLC, the sole Special OP Unitholder of the Partnership under the Second Amended and Restated Limited Partnership
Agreement, duly transferred and assigned all of its Special Partnership Units in the Partnership to IPT Advisor LLC, a Delaware
limited liability company, by way of an assignment and assumption agreement including a joinder agreement to the Partnership dated
December 18, 2019;

 

WHEREAS, the Asset
Sale closed on January 8, 2020 and, pursuant to the closing of the Asset Sale, all holders of the General Partner’s common
stock were entitled to receive a special distribution from the General Partner in cash equal to such stockholder's pro rata share
of the net total consideration for the Asset Sale, as a result of which the General Partner received cumulative distributions from
the Partnership equal to the General Partner's aggregate capital contributions plus the required return thereon required by the
Second A&R Partnership Agreement; and

 

    	 	3	 

     

    

 

WHEREAS, following
the closing of the Asset Sale, the parties now desire to issue to the Special OP Unitholder a preferred equity capital interest
(the “Preferred Equity Interest”) in the Partnership in exchange for an in-kind Capital Contribution
by the Special OP Unitholder of all the rights, title and interests in certain trademarks and/or service marks and related registrations
(the “Assigned IP”), the Agreed Value of which is $10,000,000, which amount was calculated by reference
to the current, total fair market value of the Assigned IP based on arm’s length appraisal of the Assigned IP conducted by
an independent third party as selected by the independent directors of the Partnership, and all of which transactions the independent
directors of the General Partner previously unanimously approved and the board of directors of General Partner previously unanimously
approved.

 

NOW, THEREFORE, in
consideration of the foregoing, of mutual covenants between the parties hereto, and of other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Third Amended and Restated Limited
Partnership Agreement is hereby entered into and adopted in its entirety as follows:

 

Article
1

DEFINED TERMS

 

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

 

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

 

“ADDITIONAL FUNDS”
has the meaning set forth in Section 4.3 hereof.

 

“ADDITIONAL SECURITIES”
means any additional REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to Section 8.5 hereof
or REIT Shares issued pursuant to a distribution reinvestment plan of the General Partner) or rights, options, warrants or convertible
or exchangeable securities containing the right to subscribe for or purchase REIT Shares, as set forth in Section 4.2(a)(ii).

 

“ADMINISTRATIVE
EXPENSES” means (i) all administrative and operating costs and expenses incurred by the Partnership, (ii) those administrative
costs and expenses of the General Partner, including any salaries or other payments to directors, officers or employees of the
General Partner, and any accounting and legal expenses of the General Partner, which expenses, the Partners have agreed, are expenses
of the Partnership and not the General Partner, (iii) costs and expenses relating to the formation and continuity of existence
and operation of the General Partner and any Subsidiaries thereof (which Subsidiaries shall, for purposes hereof, be included within
the definition of General Partner), including taxes, fees and assessments associated therewith, (iv) costs and expenses relating
to any Offering and registration of securities by the General Partner and all statements, reports, fees and expenses incidental
thereto, including, without limitation, underwriting discounts and selling commissions applicable to any such Offering, and any
costs and expenses associated with any claims made by any holders of such securities or any underwriters or placement agents thereof,
(v) costs and expenses associated with any repurchase of any securities by the General Partner, (vi) costs and expenses associated
with the preparation and filing of any periodic or other reports and communications by the General Partner under federal, state
or local laws or regulations, including filings with the Commission, (vii) costs and expenses associated with compliance by the
General Partner with laws, rules and regulations promulgated by any regulatory body, including the Commission and any securities
exchange, (viii) costs and expenses associated with any 401(k) plan, incentive plan, bonus plan or other plan providing for compensation
for the employees of the General Partner, (ix) costs and expenses incurred by the General Partner relating to any issuing or redemption
of Partnership Interests and (x) all other operating or administrative costs of the General Partner incurred in the ordinary course
of its business on behalf of or in connection with the Partnership; provided, however, that Administrative Expenses
shall not include any administrative costs and expenses incurred by the General Partner that are attributable to Properties or
partnership interests in a Subsidiary Partnership that are owned by the General Partner directly.

 

    	 	4	 

     

    

 

“ADVISOR”
or “ADVISORS” means the Person or Persons, if any, appointed, employed or contracted with by the General Partner and
responsible for directing or performing the day-to-day business affairs of the General Partner, including any Person to whom the
Advisor subcontracts all or substantially all of such functions.

 

“ADVISORY AGREEMENT”
means the agreement between the General Partner, the Partnership and the Advisor pursuant to which the Advisor will direct or perform
the day-to-day business affairs of the General Partner.

 

“AFFILIATE”
means, with respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote,
ten percent or more of the outstanding voting securities of such other Person; (ii) any Person ten percent or more of whose outstanding
voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any
Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer,
director, trustee or general partner of such other Person and (v) any legal entity for which such Person acts as an executive officer,
director, trustee or general partner.

 

“AGGREGATE SHARE
OWNERSHIP LIMIT” shall have the meaning set forth in the Charter.

 

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

 

“AGREEMENT”
means this Third Amended and Restated Limited Partnership Agreement, as amended, modified supplemented or restated from time to
time, as the context requires.

 

“APPLICABLE PERCENTAGE”
has the meaning provided in Section 8.5(b) hereof.

 

    	 	5	 

     

    

 

“ASSET”
means any Property, Mortgage, other debt or other investment (other than investments in bank accounts, money market funds or other
current assets) owned by the General Partner, directly or indirectly through one or more of its Affiliates.

 

“CAPITAL ACCOUNT”
has the meaning provided in Section 4.4 hereof.

 

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

 

“CARRYING VALUE”
means, with respect to any asset of the Partnership, the asset’s adjusted net basis for federal income tax purposes or, in
the case of any asset contributed to the Partnership, the fair market value of such asset at the time of contribution, reduced
by any amounts attributable to the inclusion of liabilities in basis pursuant to Section 752 of the Code, except that the Carrying
Values of all assets may, at the discretion of the General Partner, be adjusted to equal their respective fair market values (as
determined by the General Partner), in accordance with the rules set forth in Regulations Section 1.704-1(b)(2)(iv)(f), as provided
for in Section 4.4. In the case of any asset of the Partnership that has a Carrying Value that differs from its adjusted tax basis,
the Carrying Value shall be adjusted by the amount of depreciation, depletion and amortization calculated for purposes of the allocations
of net profit and net loss pursuant to Article 5 hereof rather than the amount of depreciation, depletion and amortization determined
for federal income tax purposes.

 

“CASH AMOUNT”
means an amount of cash per Partnership Unit equal to the lesser of (i) the Value of the REIT Shares Amount on the date of receipt
by the General Partner of a Notice of Redemption or (ii) the applicable Redemption Price determined by the General Partner.

 

“CERTIFICATE”
means any instrument or document that is required under the laws of the State of Delaware, or any other jurisdiction in which the
Partnership conducts business, to be signed and sworn to by the Partners of the Partnership (either by themselves or pursuant to
the power-of-attorney granted to the General Partner in Section 8.2 hereof) and filed for recording in the appropriate public offices
within the State of Delaware or such other jurisdiction to perfect or maintain the Partnership as a limited partnership, to effect
the admission, withdrawal, or substitution of any Partner of the Partnership, or to protect the limited liability of the Limited
Partners as limited partners under the laws of the State of Delaware or such other jurisdiction.

 

“CHARTER”
means the Amended and Restated Articles of Incorporation of the General Partner filed with the Maryland State Department of Assessments
and Taxation, as amended, restated or supplemented from time to time.

 

“CLASS”
means a class of REIT Shares or Partnership Units, as the context may require.

 

“CLASS A REIT
SHARES” means the REIT Shares classified as Class A common shares in the Charter.

 

    	 	6	 

     

    

 

“CLASS A UNIT”
means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class A Unit as provided in this Agreement.

 

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

 

“COMMISSION”
means the U.S. Securities and Exchange Commission.

 

“COMMON SHARE
OWNERSHIP LIMIT” shall have the meaning set forth in the Charter.

 

“CONTROL”
means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities
of a Person, whether through ownership of voting securities or other beneficial interests, by contract or otherwise. “Controlled”
and “Controlling” shall have correlative meanings.

 

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

 

“DEFAULTING LIMITED
PARTNER” has the meaning provided in Section 5.2(c) hereof.

 

“DIRECTOR”
shall have the meaning set forth in the Charter.

 

“DISTRIBUTION
FEE” shall have the meaning set forth in the Company’s Prospectus.

 

    	 	7	 

     

    

 

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

 

“EXCEPTED HOLDER
LIMIT” shall have the meaning set forth in the Charter.

 

“EXCHANGED REIT
SHARES” has the meaning set forth in Section 6.10(b) hereof.

 

“GENERAL PARTNER”
means Industrial Property Trust, a Maryland real estate investment trust, and any Person who becomes a substitute or additional
General Partner as provided herein, and any of their successors as General Partner.

 

“GENERAL PARTNER
LOAN” has the meaning provided in Section 5.2(c) hereof.

 

“GENERAL PARTNERSHIP
INTEREST” means a Partnership Interest held by the General Partner that is a general partnership interest.

 

“INDEMNITEE”
means (i) any Person made a party to a proceeding by reason of its status as the General Partner, the Advisor or a director, officer
or employee of the General Partner, the Advisor or the Partnership, and (ii) such other Persons (including Affiliates of the General
Partner, the Advisor or the Partnership) as the General Partner may designate from time to time, in its sole and absolute discretion.

 

“INDEPENDENT
DIRECTORS” shall have the meaning set forth in the Charter.

 

“JOINT VENTURE”
means those joint venture, co-investment, co-ownership or partnership arrangements in which the General Partner or any of its subsidiaries
is a co-venturer or general partner established to acquire or hold Assets.

 

“LIMITED PARTNER”
means any Person named as a Limited Partner on Exhibit A attached hereto, and any Person who becomes a Substitute Limited
Partner, in such Person’s capacity as a Limited Partner in the Partnership.

 

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

 

    	 	8	 

     

    

 

“LIQUIDITY EVENT”
shall include, but shall not be limited to, (i) a Listing, (ii) a sale, merger or other transaction in which the Stockholders either
receive, or have the option to receive, cash, securities redeemable for cash, and/or securities of a publicly traded company, and
(iii) the sale of all or substantially all of the Corporation’s Assets where Stockholders either receive, or have the option
to receive, cash or other consideration.

 

“LISTING”
means the listing of the REIT Shares on a national securities exchange or the receipt by the holders of the REIT Shares of securities
that are listed on a national securities exchange. Upon such Listing, the REIT Shares shall be deemed “Listed.”

 

“MORTGAGES”
means, in connection with mortgage financing provided, invested in, participated in or purchased by the General Partner, all of
the notes, deeds of trust, security interests or other evidences of indebtedness or obligations, which are secured or collateralized
by Real Property owned by the borrowers under such notes, deeds of trust, security interests or other evidences of indebtedness
or obligations.

 

“NET SALES PROCEEDS”
means, in the case of a transaction described in clause (i)(A) of the definition of Sale, the proceeds of any such transaction
less the amount of selling expenses incurred by or on behalf of the General Partner or the Partnership, including all real estate
commissions, closing costs and legal fees and expenses. In the case of a transaction described in clause (i)(B) of such definition,
Net Sales Proceeds means the proceeds of any such transaction less the amount of selling expenses incurred by or on behalf of the
General Partner or the Partnership, including any legal fees and expenses and other selling expenses incurred in connection with
such transaction. In the case of a transaction described in clause (i)(C) of such definition, Net Sales Proceeds means the proceeds
of any such transaction actually distributed to the General Partner or the Partnership from the Joint Venture less the amount of
any selling expenses, including legal fees and expenses incurred by or on behalf of the General Partner (other than those paid
by the Joint Venture). In the case of a transaction or series of transactions described in clause (i)(D) of the definition of Sale,
Net Sales Proceeds means the proceeds of any such transaction (including the aggregate of all payments under a Mortgage or in satisfaction
thereof other than regularly scheduled interest payments) less the amount of selling expenses incurred by or on behalf of the General
Partner or the Partnership, including all commissions, closing costs and legal fees and expenses. In the case of a transaction
described in clause (i)(E) of such definition, Net Sales Proceeds means the proceeds of any such transaction less the amount of
selling expenses incurred by or on behalf of the General Partner or the Partnership, including any legal fees and expenses and
other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause (ii) of the
definition of Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all amounts generated
thereby which are reinvested in one or more Assets within 180 days thereafter and less the amount of any real estate commissions,
closing costs, and legal fees and expenses and other selling expenses incurred by or allocated to the General Partner or the Partnership
in connection with such transaction or series of transactions. Net Sales Proceeds shall also include any amounts that the General
Partner determines, in its discretion, to be economically equivalent to proceeds of a Sale. Net Sales Proceeds shall not include
any reserves established by the General Partner in its sole discretion.

 

    	 	9	 

     

    

 

“NOTICE OF REDEMPTION”
means the Notice of Exercise of Redemption Right substantially in the form attached as Exhibit B hereto.

 

“OFFER”
has the meaning set forth in Section 7.1(c) hereof.

 

“OFFERING”
means the offer and sale of REIT Shares to the public.

 

“OP UNITHOLDERS”
means all holders of Partnership Interests other than the Special OP Unitholders.

 

“ORIGINAL LIMITED
PARTNER” means the Limited Partners designated as “Original Limited Partners” on Exhibit A hereto.

 

“PARTNER”
means any General Partner or Limited Partner.

 

“PARTNER NONRECOURSE
DEBT MINIMUM GAIN” has the meaning set forth in Regulations Section 1.704-2(i). A Partner’s share of Partner Nonrecourse
Debt Minimum Gain shall be determined in accordance with Regulations Section 1.704-2(i)(5).

 

“PARTNERSHIP”
means Industrial Property Operating Partnership LP, a Delaware limited partnership.

 

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

 

“PARTNERSHIP
LOAN” has the meaning provided in Section 5.2(c) hereof.

 

“PARTNERSHIP
MINIMUM GAIN” has the meaning set forth in Regulations Section 1.704-2(d). In accordance with Regulations Section 1.704-2(d),
the amount of Partnership Minimum Gain is determined by first computing, for each Partnership nonrecourse liability, any gain the
Partnership would realize if it disposed of the property subject to that liability for no consideration other than full satisfaction
of the liability, and then aggregating the separately computed gains. A Partner’s share of Partnership Minimum Gain shall
be determined in accordance with Regulations Section 1.704-2(g)(1).

 

“PARTNERSHIP
RECORD DATE” means the record date established by the General Partner for the distribution of cash pursuant to Section 5.2
hereof, which record date shall be the same as the record date established by the General Partner for a distribution to its shareholders
of some or all of its portion of such distribution.

 

“PARTNERSHIP
UNIT” means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder, including Class
A Units but excluding the Partnership Interests represented by Special Partnership Units and the Preferred Equity Interest. The
allocation of Partnership Units of each Class among the Partners shall be as set forth on Exhibit A, as such Exhibit may
be amended from time to time.

 

    	 	10	 

     

    

 

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

 

“PERSON”
means any individual, partnership, limited liability company, corporation, joint venture, trust or other entity.

 

“PREFERRED EQUITY
INTEREST” shall have the meaning set forth in the Recitals.

 

“PROPERTY”
means, as the context requires, all or a portion of each Real Property acquired by the General Partner, directly or indirectly
through joint venture or co-ownership arrangements or other partnership or investment entities.

 

“PROSPECTUS”
means the same as that term is defined in Section 2(10) of the Securities Act, including a preliminary prospectus, an offering
circular as described in Rule 256 of the general rules and regulations under the Securities Act, or, in the case of an intrastate
offering, any document by whatever name known, utilized for the purpose of offering and selling REIT Shares to the public.

 

“REAL PROPERTY”
means land, rights in land (including leasehold interests), and any buildings, structures, improvements, furnishings, fixtures
and equipment located on or used in connection with land and rights or interests in land.

 

“RECEIVED REIT
SHARES” has the meaning set forth in Section 6.10(b) hereof.

 

“REDEMPTION”
has the meaning provided in Section 8.5(a) hereof.

 

“REDEMPTION PRICE”
means the Value of the REIT Shares Amount on the date of receipt by the General Partner of a Notice of Redemption multiplied by
any discount determined by the General Partner, including but not limited to, any discount based upon the combined number of years
that the applicable Partner has held the Partnership Units offered for redemption.

 

“REDEMPTION RIGHT”
has the meaning provided in Section 8.5(a) hereof.

 

“REDEMPTION SHARES”
has the meaning provided in Section 8.6(a) hereof.

 

“REGULATIONS”
means the Federal income tax regulations promulgated under the Code, as amended and as hereafter amended from time to time. Reference
to any particular provision of the Regulations shall mean that provision of the Regulations on the date hereof and any successor
provision of the Regulations.

 

“REGULATORY ALLOCATIONS”
has the meaning set forth in Section 5.1(i) hereof.

 

“REIT”
means a corporation, trust, association or other legal entity (other than a real estate syndication) that qualifies as a real estate
investment trust under Sections 856 through 860 of the Code, and any successor or other provisions of the Code relating to real
estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations
promulgated thereunder.

 

    	 	11	 

     

    

 

“REIT SHARE”
means a common share of beneficial interest in the General Partner (or successor entity, as the case may be), including Class A
REIT Shares.

 

“REIT SHARES
AMOUNT” means, with respect to Tendered Units of a Class, a number of REIT Shares of the corresponding REIT Share Class equal
to the product of the number of Partnership Units of such Class offered for exchange by a Tendering Party, multiplied by the Conversion
Factor, as adjusted to and including the Specified Redemption Date; provided that in the event the General Partner issues to all
holders of REIT Shares rights, options, warrants or convertible or exchangeable securities entitling the shareholders to subscribe
for or purchase REIT Shares of such Class, or any other securities or property (collectively, the “rights”), and the
rights have not expired at the Specified Redemption Date, then the REIT Shares Amount shall also include the rights issuable to
a holder of the REIT Shares.

 

“RELATED PARTY”
means, with respect to any Person, any other Person whose ownership of shares of the General Partner’s capital stock would
be attributed to the first such Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)).

 

“SAFE HARBOR”
means, the election described in the Safe Harbor Regulation, pursuant to which a partnership and all of its partners may elect
to treat the fair market value of a partnership interest that is transferred in connection with the performance of services as
being equal to the liquidation value of that interest.

 

“SAFE HARBOR
ELECTION” means the election by a partnership and its partners to apply the Safe Harbor, as described in the Safe Harbor
Regulation and Internal Revenue Service Notice 2005-43 , issued on May 19, 2005.

 

“SAFE HARBOR
REGULATION” means Proposed Treasury Regulations Section 1.83-3(l) issued on May 19, 2005.

 

“SALE”
means (i) any transaction or series of transactions whereby: (A) the General Partner or the Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership
of any Property or portion thereof, including the lease of any Property consisting of a building only, and including any event
with respect to any Property which gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the General
Partner or the Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants,
transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the General Partner or the Partnership
in any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture directly or indirectly (except as described
in other subsections of this definition) in which the General Partner or the Partnership as a co-venturer or partner sells, grants,
transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including any event with respect to any Property
which gives rise to insurance claims or condemnation awards; (D) the General Partner or the Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, conveys or relinquishes its interest in any Mortgage
or portion thereof (including with respect to any Mortgage, all payments thereunder or in satisfaction thereof other than regularly
scheduled interest payments) of amounts owed pursuant to such Mortgage and any event which gives rise to a significant amount of
insurance proceeds or similar awards; or (E) the General Partner or the Partnership directly or indirectly (except as described
in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any other Asset not
previously described in this definition or any portion thereof, but (ii) not including any transaction or series of transactions
specified in clause (i) (A) through (E) above in which the proceeds of such transaction or series of transactions are reinvested
by the General Partner in one or more Assets within 180 days thereafter.

 

    	 	12	 

     

    

 

“SECOND A&R
PARTNERSHIP AGREEMENT” means the Second Amended and Restated Limited Partnership Agreement of the Partnership dated August
14, 2015, as amended by that certain Side Agreement Concerning Second Amended and Restated Limited Partnership Agreement, dated
as of August 20, 2019, by and between Industrial Property Trust Inc. and Industrial Property Advisors Group LLC and the Amendment
thereto dated October 7, 2019.

 

“SECURITIES ACT”
means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision
thereto, and the rules and regulations promulgated thereunder.

 

“SERVICE”
means the United States Internal Revenue Service.

 

“SPECIAL DISTRIBUTION”
means the distribution of substantially of all the net proceeds of the Asset Sale by the Partnership to the Partners in accordance
with the Second A&R Partnership Agreement.

 

“SPECIAL OP UNITHOLDERS”
means the holders of Special Partnership Units.

 

“SPECIAL PARTNERSHIP
UNIT” means a unit of a series of Partnership Interests, designated as Special Partnership Units, issued pursuant to Section
4.1. The number of Special Partnership Units outstanding and the Special Percentage Interests in the Partnership represented by
such Special Partnership Units are set forth on Exhibit A, as such Exhibit may be amended from time to time. A holder of
a Special Partnership Unit shall have the same rights and preferences as a holder of a Partnership Unit under this Agreement that
is a Limited Partner except as set forth in Sections 5.1(a), 5.2(b), 7.1(c), 8.5, 8.6 and 8.7.

 

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

 

“SPECIFIED REDEMPTION
DATE” means the last business day of the month that includes the day that is forty-five (45) days after the receipt by the
General Partner of the Notice of Redemption.

 

    	 	13	 

     

    

 

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

 

“SUBSIDIARY PARTNERSHIP”
means any partnership of which the partnership interests therein are owned by the General Partner or a direct or indirect subsidiary
of the General Partner.

 

“SUBSTITUTE LIMITED
PARTNER” means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.3 hereof.

 

“SUCCESSOR ENTITY”
has the meaning provided in the definition of “Conversion Factor” contained herein.

 

“SURVIVOR”
has the meaning set forth in Section 7.1(d) hereof.

 

“TAX MATTERS
PARTNER” has the meaning described in Section 10.5(a) hereof.

 

“TERMINATION
EVENT” means the termination or nonrenewal of the Advisory Agreement (i) in connection with a merger, sale of Assets or other
transaction involving the General Partner pursuant to which a majority of the Directors then in office are replaced or removed,
(ii) by the Advisor for “good reason” (as defined in the Advisory Agreement), or (iii) by the General Partner and/or
the Partnership other than for “cause” (as defined in the Advisory Agreement).

 

“TENDERED UNITS”
has the meaning provided in Section 8.5(a) hereof.

 

“TENDERING PARTY”
has the meaning provided in Section 8.5(a) hereof.

 

“TRANSACTION”
has the meaning set forth in Section 7.1(c) hereof.

 

“TRANSFER”
has the meaning set forth in Section 9.2(a) hereof.

 

“VALUATION DATE”
has the meaning set forth in Section 8.7(b) hereof.

 

“VALUE”
means for each Class of REIT Shares, the fair market value of that Class of REIT Shares which will equal: (i) if REIT Shares of
that Class are Listed, the average closing price per share for the previous thirty business days, (ii) if REIT Shares of that Class
are not Listed, (a) the most recent offering price per share or share equivalent of REIT Shares of that Class, until December 31st
of the year following the year in which the most recently completed offering of REIT Shares of that Class has expired, and (b)
thereafter, such price per REIT Share of that Class as the management of the General Partner determines in good faith.

 

    14

     

    

 

Article
2

PARTNERSHIP FORMATION AND IDENTIFICATION

 

2.1          Formation. The Partnership was formed as a limited partnership pursuant to the Act and all other pertinent laws
of the State of Delaware, for the purposes and upon the terms and conditions set forth in this Agreement.

 

2.2          Name, Office and Registered Agent. The name of the Partnership is Industrial Property Operating Partnership LP.
The specified office and place of business of the Partnership shall be 518 17th Street, 17th Floor, Denver,
Colorado 80202. The General Partner may at any time change the location of such office, provided the General Partner gives notice
to the Partners of any such change. The name and address of the Partnership’s registered agent is Corporation Service Company,
2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The sole duty of the registered agent as such is to forward to the
Partnership any notice that is served on him as registered agent.

 

2.3          Partners.

 

(a)          The General Partner of the Partnership is Industrial Property Trust, a Maryland real estate investment trust. Its principal
place of business is the same as that of the Partnership.

 

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

 

2.4          Term and Dissolution.

 

(a)          The term of the Partnership shall continue in full force and effect until December 31, 2039, except that the Partnership
shall be dissolved upon the first to occur of any of the following events:

 

(i)            The occurrence of an Event of Bankruptcy as to a General Partner or the dissolution, death, removal or withdrawal of a General
Partner unless the business of the Partnership is continued pursuant to Section 7.3(b) hereof;

 

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

 

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

 

(b)          Upon dissolution of the Partnership (unless the business of the Partnership is continued pursuant to Section 7.3(b) hereof),
the General Partner (or its trustee, receiver, successor or legal representative) shall amend or cancel any Certificate(s) and
liquidate the Partnership’s assets and apply and distribute the proceeds thereof in accordance with Section 5.6 hereof. Notwithstanding
the foregoing, the liquidating General Partner may either (i) defer liquidation of, or withhold from distribution for a reasonable
time, any assets of the Partnership (including those necessary to satisfy the Partnership’s debts and obligations), or (ii)
distribute the assets to the Partners in kind.

 

    15

     

    

 

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

 

2.6          Certificates Describing Partnership Units and Special Partnership Units. At
the request of a Limited Partner, the General Partner, at its option, may issue (but in no way is obligated to issue) a certificate
summarizing the terms of such Limited Partner’s interest in the Partnership, including the number of Partnership Units and
Special Partnership Units owned and the Percentage Interest and Special Percentage Interest represented by such Partnership Units
and Special Partnership Units as of the date of such certificate. Any such certificate (i) shall be in form and substance as approved
by the General Partner, (ii) shall not be negotiable and (iii) shall bear a legend to the following effect:

 

This certificate is
not negotiable. The Partnership Units and Special Partnership Units represented by this certificate are governed by and transferable
only in accordance with the provisions of the Third Amended and Restated Limited Partnership Agreement of Industrial Property Operating
Partnership LP, as amended from time to time.

 

Article
3

BUSINESS OF THE PARTNERSHIP

 

The purpose and nature
of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership
organized pursuant to the Act, provided, however, that such business shall be limited to and conducted in such a manner as to permit
the General Partner at all times to qualify as a REIT, unless the General Partner otherwise ceases to qualify as a REIT, and in
a manner such that the General Partner will not be subject to any taxes under Section 857 or 4981 of the Code, (ii) to enter into
any partnership, joint venture, co-ownership or other similar arrangement to engage in any of the foregoing or the ownership of
interests in any entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the foregoing. In connection
with the foregoing, and without limiting the General Partner’s right in its sole and absolute discretion to qualify or cease
qualifying as a REIT, the Partners acknowledge that the General Partner intends to qualify as a REIT for federal income tax purposes
and upon such qualification the avoidance of income and excise taxes on the General Partner inures to the benefit of all the Partners
and not solely to the General Partner. Notwithstanding the foregoing, the Limited Partners agree that the General Partner may terminate
its status as a REIT under the Code at any time to the full extent permitted under the Charter. The General Partner on behalf of
the Partnership shall also be empowered to do any and all acts and things necessary or prudent to ensure that the Partnership will
not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Code.

 

    16

     

    

 

Article
4

CAPITAL CONTRIBUTIONS AND ACCOUNTS

 

4.1          Capital Contributions. The General Partner and the initial Limited Partners have made capital contributions to
the Partnership in exchange for the Partnership Interests set forth opposite their names on Exhibit A, as such exhibit may
be amended from time to time. The Partners shall own Partnership Units of the Class or series and in the amounts set forth in Exhibit
A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A. Notwithstanding the foregoing,
the General Partner may keep Exhibit A current through separate revisions to the books and records of the Partnership that
reflect periodic changes to the capital contributions made by the Partners and redemptions and other purchases of Partnership Units
by the Partnership, and corresponding changes to the Partnership Interests of the Partners, without preparing a formal amendment
to this Agreement, provided that such amendment shall be prepared upon the written request of any Limited Partner.

 

4.2          Additional Capital Contributions and Issuances of Additional Partnership Interests. Except as provided in this
Section 4.2 or in Section 4.3, the Partners shall have no right or obligation to make any additional Capital Contributions or loans
to the Partnership. The General Partner may contribute additional capital to the Partnership, from time to time, and receive additional
Partnership Interests in respect thereof, in the manner contemplated in this Section 4.2. Limited Partnership Interests will be
issued to the General Partner in exchange for contributions by the General Partner to the capital of the Partnership of the proceeds
received by the General Partners from the issuance of REIT Shares.

 

(a)           Issuances of Additional Partnership Interests.

 

(i)            General. The General Partner is hereby authorized to cause the Partnership to issue such additional Partnership Interests
in the form of Partnership Units for any Partnership purpose at any time or from time to time, including but not limited to Partnership
Units issued in connection with acquisitions of properties, to the Partners (including the General Partner) or to other Persons
for such consideration and on such terms and conditions as shall be established by the General Partner in its sole and absolute
discretion, all without the approval of any Limited Partners. Any additional Partnership Interests issued thereby may be issued
in one or more Classes (including the Classes specified in this Agreement or any other Classes), or one or more series of any of
such Classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties,
including rights, powers and duties senior to Limited Partnership Interests, all as shall be determined by the General Partner
in its sole and absolute discretion and without the approval of any Limited Partner, subject to Delaware law, including, without
limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such Class or series of
Partnership Interests; (ii) the right of each such Class or series of Partnership Interests to share in Partnership distributions;
and (iii) the rights of each such Class or series of Partnership Interests upon dissolution and liquidation of the Partnership;
provided, however, that no additional Partnership Interests shall be issued to the General Partner unless:

 

(1)             (A) the additional Partnership Interests are issued in connection with an issuance of REIT Shares of or other interests
in the General Partner, which shares or interests have designations, preferences and other rights, all such that the economic interests
are substantially similar to the designations, preferences and other rights of the additional Partnership Interests issued to the
General Partner by the Partnership in accordance with this Section 4.2 (without limiting the foregoing, for example, the Partnership
shall issue Partnership Interests consisting of Class A Units to the General Partner in connection with the issuance of Class A
REIT Shares) and (B) the General Partner shall make a Capital Contribution to the Partnership in an amount equal to the proceeds
raised in connection with the issuance of such shares of stock of or other interests in the General Partner;

 

    17

     

    

 

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

 

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

 

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

 

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

 

    18

     

    

 

(b)           Certain Deemed Contributions of Proceeds of Issuance of REIT Shares. In connection with any and all issuances of
REIT Shares, the General Partner shall make Capital Contributions to the Partnership of the proceeds therefrom, provided that if
the proceeds actually received and contributed by the General Partner are less than the gross proceeds of such issuance as a result
of any underwriter’s discount or other expenses paid or incurred in connection with such issuance, then the General Partner
shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the gross proceeds of such issuance
and the Partnership shall be deemed simultaneously to have paid such offering expenses in accordance with Section 6.5 hereof
and in connection with the required issuance of additional Partnership Units to the General Partner for such Capital Contributions
pursuant to Section 4.2(a) hereof, and any such expenses shall be allocable solely to the Class of Partnership Units issued to
the General Partner at such time.

 

4.3          Additional Funding. If the General Partner determines that it is in the best interests of the Partnership to
provide for additional Partnership funds (“Additional Funds”) for any Partnership purpose, the General Partner may
(i) cause the Partnership to obtain such funds from outside borrowings, or (ii) elect to have the General Partner or any of its
Affiliates provide such Additional Funds to the Partnership through loans or otherwise, provided, however, that the Partnership
may not borrow money from its Affiliates, unless a majority of the Directors of the General Partner (including a majority of Independent
Directors) not otherwise interested in such transaction approve the transaction as being fair, competitive, and commercially reasonable
and no less favorable to the Partnership than comparable loans between unaffiliated parties.

 

4.4          Capital
Accounts. A separate capital account (each a “Capital Account”) shall be established and maintained for
each Partner in accordance with Regulations Section 1.704-1(b)(2)(iv). If (i) a new or existing Partner acquires an
additional Partnership Interest in exchange for more than a de minimis Capital Contribution, (ii) the Partnership distributes
to a Partner more than a de minimis amount of Partnership property, or money as consideration for a Partnership Interest,
(iii) the Partnership is liquidated within the meaning of Regulation Section 1.704-1(b)(2)(ii)(g), or (iv) the Partnership
grants a Partnership Interest (other than a de minimis interest) as consideration for the provision of services to or
for the benefit of the Partnership, the General Partner shall revalue the property of the Partnership to its fair market
value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of
the Code) in accordance with Regulations Section 1.704-1(b)(2)(iv)(f). When the Partnership’s property is revalued by
the General Partner, the Capital Accounts of the Partners shall be adjusted in accordance with Regulations Section
1.704-1(b)(2)(iv)(f) and (g), which generally require such Capital Accounts to be adjusted to reflect the manner in which the
unrealized gain or loss inherent in such property (that has not been reflected in the Capital Accounts previously) would be
allocated among the Partners pursuant to Section 5.1 if there were a taxable disposition of such property for its fair market
value (as determined by the General Partner in its sole and absolute discretion, and taking into account Section 7701(g) of
the Code, on the date of the revaluation).

 

4.5          Percentage Interests. If the number of outstanding Partnership Units increases or decreases during a taxable
year, each Partner’s Percentage Interest shall be adjusted by the General Partner effective as of the effective date of each
such increase or decrease. If the Partners’ Percentage Interests are adjusted pursuant to this Section 4.5, the net
profits and net losses (and items thereof) for the taxable year in which the adjustment occurs shall be allocated between the part
of the year ending on the day when the Partnership’s property is revalued by the General Partner and the part of the year
beginning on the following day either (i) as if the taxable year had ended on the date of the adjustment or (ii) based on the number
of days in each part. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate
net profits and net losses (or items thereof) for the taxable year in which the adjustment occurs. The allocation of net profits
and net losses (or items thereof) for the earlier part of the year shall be based on the Percentage Interests before adjustment,
and the allocation of net profits and net losses (or items thereof) for the later part shall be based on the adjusted Percentage
Interests.

 

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

 

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

 

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

 

Article
5

PROFITS AND LOSSES; DISTRIBUTIONS

 

5.1          Allocation of Profit and Loss.

 

(a)          General Partner Gross Income Allocation. There shall be specially allocated to the General Partner an amount of (i)
first, items of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period,
before any other allocations are made hereunder, in an amount equal to the excess, if any, of the cumulative distributions made
to the General Partner under Section 6.5(b) hereof, over the cumulative allocations of Partnership income and gain to the General
Partner under this Section 5.1(a).

 

    20

     

    

 

(b)          General Allocations. The items of Profit and Loss and deduction of the Partnership for each fiscal year or other
applicable period, other than any items allocated under Section 5.1(a), shall be allocated among the Partners in a manner that
will, as nearly as possible (after giving effect to the allocations under Section 5.1(a), 5.1(c), 5.1(d), 5.1(e), 5.1(h) and 5.1(i))
cause the Capital Account balance of each Partner at the end of such fiscal year or other applicable period to equal (i) the amount
of the hypothetical distribution that such Partner would receive if the Partnership were liquidated on the last day of such period
and all assets of the Partnership, including cash, were sold for cash equal to their Carrying Values, taking into account any adjustments
thereto for such period, all liabilities of the Partnership were satisfied in full in cash according to their terms (limited with
respect to each nonrecourse liability to the Carrying Value of the assets securing such liability) and the remaining cash proceeds
(after satisfaction of such liabilities) were distributed in full pursuant to Section 5.2(b); minus (ii) the sum of such Partner’s
share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that
the Partner would be obligated to contribute to the capital of the Partnership, all computed as of the date of the hypothetical
sale of assets. 

 

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

 

(d)          Qualified Income Offset.  If a Partner unexpectedly receives in any taxable year an adjustment, allocation, or distribution
described in subparagraphs (4), (5), or (6) of Regulations Section 1.704-1(b)(2)(ii)(d) that causes or increases a deficit balance
in such Partner’s Capital Account that exceeds the sum of such Partner’s shares of Partnership Minimum Gain and Partner
Nonrecourse Debt Minimum Gain, as determined in accordance with Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), such Partner
shall be allocated specially for such taxable year (and, if necessary, later taxable years) items of income and gain in an amount
and manner sufficient to eliminate such deficit Capital Account balance as quickly as possible as provided in Regulations Section
1.704-1(b)(2)(ii)(d). This Section 5.1(d) is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d)
of the Regulations and shall be interpreted consistently therewith. After the occurrence of an allocation of income or gain to
a Partner in accordance with this Section 5.1(d), to the extent permitted by Regulations Section 1.704-1(b), items of expense or
loss shall be allocated to such Partner in an amount necessary to offset the income or gain previously allocated to such Partner
under this Section 5.1(d).

 

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(e)          Capital Account Deficits. Loss (or items of expense or loss) shall not be allocated to a Limited Partner to the extent
that such allocation would cause or increase a deficit in such Partner’s Capital Account at the end of any fiscal year (after
reduction to reflect the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such
Partner’s shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, as determined in accordance with
Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5). Any Loss or item of expense or loss in excess of that limitation shall be
allocated to the General Partner. After an allocation to the General Partner under the immediately preceding sentence, to the extent
permitted by Regulations Section 1.704-1(b), Profit or items of income or gain shall be allocated to the General Partner in an
amount necessary to offset the items allocated to the General Partner under the immediately preceding sentence.

 

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

 

(g)          Definition of Profit and Loss. “Profit” and “Loss” and any items of income, gain, expense,
or loss referred to in this Agreement shall be determined in accordance with federal income tax accounting principles, as modified
by Regulations Section 1.704-1(b)(2)(iv), except that Profit and Loss shall not include items of income, gain and expense that
are specifically allocated pursuant to Section 5.1(a), 5.1(c), 5.1(d), 5.1(e) or 5.1(h). All allocations of Profit and Loss (and
all items contained therein) for federal income tax purposes shall be identical to all allocations of such items set forth in this
Section 5.1, except as otherwise required by Section 704(c) of the Code and Regulations Section 1.704-1(b)(4). The General Partner
shall have the authority to elect the method to be used by the Partnership for allocating items of income, gain, and expense as
required by Section 704(c) of the Code including a method that may result in a Partner receiving a disproportionately larger share
of the Partnership tax depreciation deductions, and such election shall be binding on all Partners.

 

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(h)          Special Allocations of Class-Specific Items. To the extent that any items of income, gain, loss or deduction of the
General Partner are allocable to a specific Class or Classes of REIT Shares as provided in the Prospectus, including, without limitation,
Distribution Fees, such items, or an amount equal thereto, shall be specially allocated to the Class or Classes of Partnership
Units corresponding to such Class or Classes of REIT Shares.

 

(i)           Curative Allocations.  The allocations set forth in Section 5.1(c) (d) and (e) of this Agreement (the “Regulatory
Allocations”) are intended to comply with certain requirements of the Regulations. The General Partner is authorized to offset
all Regulatory Allocations either with other Regulatory Allocations or with special allocations of other items of Partnership income,
gain, loss or deduction pursuant to this Section 5.1(i). Therefore, notwithstanding any other provision of this Section 5.1 (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 deems appropriate so that, after such offsetting allocations are made, each Partner’s
Capital Account is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory
Allocations were not part of this Agreement and all Partnership items were allocated pursuant to Section 5.1(a), (b), (f) and (h).

 

5.2          Distribution of Cash.

 

(a)          For the avoidance of doubt, notwithstanding anything to the contrary contained herein, the Special Distribution shall be
paid in accordance with Section 5.2(b) of the Second A&R Partnership Agreement. After payment of the Special Distribution,
the Partnership may distribute cash on a quarterly (or, at the election of the General Partner, more or less frequent) basis, in
an amount determined by the General Partner in its sole and absolute discretion, to the Partners who are Partners on the Partnership
Record Date with respect to such quarter (or other distribution period) in accordance with Section 5.2(b).

 

(b)          Except for distributions pursuant to Section 5.6 of this Agreement in connection with the dissolution and liquidation of
the Partnership and subject to the provisions of Sections 5.2(c), 5.2(d), 5.3, 5.5 and 8.7 of this Agreement, distributions shall
be made in accordance with the following provisions:

 

(i)            first, one hundred percent (100%) of distributions will be made to the Special OP Unitholders until each Special OP Unitholder
obtains a full return of the amount of its Preferred Equity Interest; then

 

(ii)           sixty-five percent (65%) to the General Partner and thirty-five percent (35%) to the Special OP Unitholders.

 

In applying this Section
5.2(b), the amount distributed per Partnership Unit of any Class may differ from the amount per Partnership Unit of another Class
on account of differences in Class-specific expense allocations with respect to REIT Shares as described in the Prospectus (and
of corresponding special allocations among Classes of Partnership Units in accordance with Section 5.1(h) hereof) or for other
reasons as determined by the board of directors of the General Partner. Any such differences shall correspond to differences in
the amount of distributions per REIT Share for REIT Shares of different Classes, with the same adjustments being made to the amount
of distributions per Partnership Unit for Partnership Units of a particular Class as are made to the distributions per REIT Share
by the General Partner with respect to REIT Shares having the same Class designation.

 

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

 

Any amounts treated
as a Partnership Loan or a General Partner Loan pursuant to this Section 5.2(c) shall bear interest at the lesser of (i) the base
rate on corporate loans at large United States money center commercial banks, as published from time to time in The Wall Street
Journal, or (ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date the Partnership
or the General Partner, as applicable, is deemed to extend the loan until such loan is repaid in full.

 

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

 

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

 

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

 

5.5         Limitations on Return of Capital Contributions. Notwithstanding any of the provisions of this Article 5, no Partner
shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return
of all or part of a Partner’s Capital Contributions, unless after giving effect to the return of a Capital Contribution,
the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does
not exceed the fair market value of the Partnership’s assets.

 

5.6         Distributions Upon Liquidation. Upon liquidation of the Partnership, after payment of, or adequate provision
for, debts and obligations of the Partnership, including any Partner loans, any remaining assets of the Partnership shall be distributed
to all Partners in proportion to their respective positive Capital Account balances, determined after taking into account all allocations
required to be made pursuant to Section 5.1 hereof and all prior distributions made pursuant to this Article 5, in compliance with
Treasury Regulation Section 1.704-1(b)(2)(ii)(b)(2). Notwithstanding any other provision of this Agreement, the amount by
which the value, as determined in good faith by the General Partner, of any property other than cash to be distributed in kind
to the Partners exceeds or is less than the Carrying Value of such property shall, to the extent not otherwise recognized by the
Partnership, be taken into account in computing Profit and Loss of the Partnership for purposes of crediting or charging the Capital
Accounts of, and distributing proceeds to, the Partners, pursuant to this Agreement. To the extent deemed advisable by the General
Partner, appropriate arrangements (including the use of a liquidating trust) may be made to assure that adequate funds are available
to pay any contingent debts or obligations.

 

5.7         Substantial Economic Effect. It is the intent of the Partners that the allocations of Profit and Loss, under
this Agreement have substantial economic effect (or be consistent with the Partners’ interests in the Partnership in the
case of the allocation of losses attributable to nonrecourse debt) within the meaning of Section 704(b) of the Code as interpreted
by the Regulations promulgated pursuant thereto. Article 5 and other relevant provisions of this Agreement shall be interpreted
in a manner consistent with such intent.

 

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Article
6

RIGHTS, OBLIGATIONS AND

POWERS OF THE GENERAL PARTNER

 

6.1          Management of the Partnership.

 

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

 

(i)           to acquire, purchase, own, operate, lease, dispose and exchange of any Assets, that the General Partner determines are necessary
or appropriate or in the best interests of the business of the Partnership;

 

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

 

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

 

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

 

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

 

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

 

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

 

(viii)       to lease all or any portion of any of the Partnership’s assets, whether or not the terms of such leases extend beyond
the termination date of the Partnership and whether or not any portion of the Partnership’s assets so leased are to be occupied
by the lessee, or, in turn, subleased in whole or in part to others, for such consideration and on such terms as the General Partner
may determine;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.3          Indemnification and Exculpation of Indemnitees.

 

(a)          The Partnership shall indemnify an Indemnitee from and against any and all losses, claims, damages, liabilities, joint or
several, expenses (including reasonable legal fees and expenses), judgments, fines, settlements, and other amounts arising from
any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the
operations of the Partnership as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved,
as a party or otherwise, unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving
rise to the proceeding and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii) the Indemnitee
actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding,
the Indemnitee had reasonable cause to believe that the act or omission was unlawful. Any indemnification pursuant to this Section
6.3 shall be made only out of the assets of the Partnership.

 

(b)          The Partnership shall reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a party to a proceeding
in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee
of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 6.3 has been met, and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met.

 

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(c)        The indemnification provided by this Section 6.3 shall be in addition to any other rights to which an Indemnitee or any
other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall
continue as to an Indemnitee who has ceased to serve in such capacity.

 

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

 

(e)        For purposes of this Section 6.3, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary
of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise
involves services by, it to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with
respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.3; and
actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose
reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose
which is not opposed to the best interests of the Partnership.

 

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

 

(g)        An Indemnitee shall not be denied indemnification in whole or in part under this Section 6.3 because the Indemnitee had
an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by
the terms of this Agreement.

 

(h)        The provisions of this Section 6.3 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators
and shall not be deemed to create any rights for the benefit of any other Persons.

 

(i)         Notwithstanding the foregoing, the Partnership may not indemnify or hold harmless an Indemnitee for any liability or loss
unless all of the following conditions are met: (i) the Indemnitee has determined, in good faith, that the course of conduct that
caused the loss or liability was in the best interests of the Partnership; (ii) the Indemnitee was acting on behalf of or performing
services for the Partnership; (iii) the liability or loss was not the result of (A) negligence or misconduct, in the case that
the Indemnitee is a director of the General Partner (other than an Independent Director), the Advisor or an Affiliate of the Advisor
or (B) gross negligence or willful misconduct, in the case that the Indemnitee is an Independent Director; and (iv) the indemnification
or agreement to hold harmless is recoverable only out of net assets of the Partnership. In addition, the Partnership shall not
provide indemnification for any loss, liability or expense arising from or out of an alleged violation of federal or state securities
laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the
merits of each count involving alleged material securities law violations as to the Indemnitee; (ii) such claims have been dismissed
with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or (iii) a court of competent jurisdiction
approves a settlement of the claims against the Indemnitee and finds that indemnification of the settlement and the related costs
should be made, and the court considering the request for indemnification has been advised of the position of the Commission and
of the published position of any state securities regulatory authority in which Securities were offered or sold as to indemnification
for violations of securities laws.

 

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6.4         Liability of the General Partner.

 

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

 

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

 

(c)          Subject to its obligations and duties as General Partner set forth in Section 6.1 hereof, the General Partner may exercise
any of the powers granted to it under this Agreement and perform any of the duties imposed upon it hereunder either directly or
by or through its agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such
agent appointed by it in good faith.

 

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

 

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(e)          Any amendment, modification or repeal of this Section 6.4 or any provision hereof shall be prospective only and shall not
in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this
Section 6.4 as in effect immediately prior to such amendment, modification or repeal with respect to matters occurring, in whole
or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be
asserted.

 

6.5         Reimbursement of General Partner.

 

(a)          Except as provided in this Section 6.5 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding
distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services
as general partner of the Partnership.

 

(b)          The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in
its sole and absolute discretion, for all Administrative Expenses incurred by the General Partner.

 

6.6         Outside Activities. Subject to (a) Section 6.8 hereof, (b) the Charter and (c) any agreements entered into by
the General Partner or its Affiliates with the Partnership, a Subsidiary or any officer, director, employee, agent, trustee, Affiliate
or shareholder of the General Partner, the General Partner shall be entitled to and may have business interests and engage in business
activities in addition to those relating to the Partnership, including business interests and activities substantially similar
or identical to those of the Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by virtue
of this Agreement in any such business ventures, interests or activities. None of the Limited Partners nor any other Person shall
have any rights by virtue of this Agreement or the partnership relationship established hereby in any such business ventures, interests
or activities, and the General Partner shall have no obligation pursuant to this Agreement to offer any interest in any such business
ventures, interests and activities to the Partnership or any Limited Partner, even if such opportunity is of a character which,
if presented to the Partnership or any Limited Partner, could be taken by such Person.

 

6.7         Employment or Retention of Affiliates.

 

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

 

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

 

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

 

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

 

6.8         General Partner Participation. The General Partner agrees that all business activities of the General Partner,
including activities pertaining to the acquisition, development or ownership of any Asset shall be conducted through the Partnership
or one or more Subsidiary Partnerships; provided, however, that the General Partner is allowed to make a direct acquisition, but
if and only if, such acquisition is made in connection with the issuance of Additional Securities, which direct acquisition and
issuance have been approved and determined to be in the best interests of the General Partner and the Partnership by a majority
of the Independent Directors.

 

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

 

6.10       Redemptions and Exchanges of REIT Shares.

 

(a)          Redemptions. In the event the General Partner redeems any REIT Shares (other than REIT Shares redeemed in accordance
with the share redemption program of the General Partner through proceeds received from the General Partner’s distribution
reinvestment plan), then the General Partner shall cause the Partnership to purchase from the General Partner a number of Partnership
Units as determined based on the application of the Conversion Factor on the same terms that the General Partner redeemed such
REIT Shares. Moreover, if the General Partner makes a cash tender offer or other offer to acquire REIT Shares, then the General
Partner shall cause the Partnership to make a corresponding offer to the General Partner to acquire an equal number of Partnership
Units held by the General Partner that have the same Class designation as the REIT Shares that are subject to the offer. In the
event any REIT Shares are redeemed by the General Partner pursuant to such offer, the Partnership shall redeem an equivalent number
of the General Partner’s Partnership Units having the same Class designation as the redeemed REIT Shares for an equivalent
purchase price based on the application of the Conversion Factor.

 

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(b)          Exchanges. If the General Partner exchanges any REIT Shares of any Class (“Exchanged REIT Shares”) for
REIT Shares of a different Class (“Received REIT Shares”), then the General Partner shall, and shall cause the Partnership
to, exchange a number of Partnership Units having the same Class designation as the Exchanged REIT Shares, as determined based
on the application of the Conversion Factor, for Partnership Units having the same Class designation as the Received REIT Shares
on the same terms that the General Partner exchanged the Exchanged REIT Shares. The exchange of Units shall occur automatically
after the close of business on the applicable date of the exchange of REIT Shares, as of which time the holder of a Class of Units
having the same designation as the Exchanged REIT Shares shall be credited on the books and records of the Partnership with the
issuance, as of the opening of business on the next day, of the applicable number of Units having the same designation as the Received
REIT Shares.

 

6.11       No Duplication of Fees or Expenses. The Partnership may not incur or be responsible for any fee or expense (in
connection with the Offering or otherwise) that would be duplicative of fees and expenses paid by the General Partner.

 

Article
7

CHANGES IN GENERAL PARTNER

 

7.1         Transfer of the General Partner’s Partnership Interest.

 

(a)          The General Partner shall not transfer all or any portion of its General Partnership Interest or withdraw as General Partner
except as provided in, or in connection with a transaction contemplated by, Section 7.1(c), (d) or (e).

 

(b)          The General Partner agrees that its Percentage Interest will at all times be in the aggregate, at least 0.1%.

 

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(c)          Except
as otherwise provided in Section 6.4(b) or Section 7.1(d) or (e) hereof, the General Partner shall not engage in any merger, consolidation
or other combination with or into another Person or sale of all or substantially all of its assets (other than in connection with
a change in the General Partner’s state of incorporation or organizational form) in each case which results in a change
of Control of the General Partner (a “Transaction”), unless:

 

(i)           the consent of Limited Partners holding more than 50% of the Percentage Interests and more than 50% of the Special Percentage
Interests of the Limited Partners is obtained;

 

(ii)          as a result of such Transaction all Limited Partners will receive or have the right to receive (A) for each Partnership
Unit of each Class (other than the Special Units) an amount of cash, securities, or other property equal to the product of the
Conversion Factor and the greatest amount of cash, securities or other property paid in the Transaction to a holder of one REIT
Share having the same Class designation as the Partnership Unit in consideration of such REIT Share, provided that if, in connection
with the Transaction, a purchase, tender or exchange offer (“Offer”) shall have been made to and accepted by the holders
of more than 50% of the outstanding REIT Shares, each holder of Partnership Units shall be given the option to exchange its Partnership
Units for the greatest amount of cash, securities, or other property which a Limited Partner holding Partnership Units would have
received had it (1) exercised its Redemption Right and (2) sold, tendered or exchanged pursuant to the Offer the REIT Shares received
upon exercise of the Redemption Right immediately prior to the expiration of the Offer and (B) for each Special Partnership Unit
an amount of cash, securities or other property (as applicable based upon the type of consideration and the proportions thereof
paid to holders of REIT Shares in the Transaction) determined as set forth pursuant to Section 5.2(b)(i) or Section 8.7(b) hereof,
as applicable; or

 

(iii)         the
General Partner is the surviving entity in the Transaction and either (A) the holders of REIT Shares do not receive cash, securities,
or other property in the Transaction or (B) all Limited Partners (other than the General Partner or any Subsidiary) have the right
to receive (1) in exchange for their Partnership Units of each Class (other than the Special Units), an amount of cash, securities,
or other property (expressed as an amount per REIT Share) that is no less than the product of the Conversion Factor and the greatest
amount of cash, securities, or other property (expressed as an amount per REIT Share) received in the Transaction by any holder
of REIT Shares having the same Class designation as the Partnership Units being exchanged, and (2) in exchange for their Special
Partnership Units, an amount of cash, securities or other property (as applicable based upon the type of consideration and the
proportions thereof paid to holders of REIT Shares in the Transaction) determined as set forth pursuant to Section 8.7 hereof.

 

(d)          Notwithstanding Section 7.1(c), the General Partner may merge with or into or consolidate with another entity if immediately
after such merger or consolidation (i) substantially all of the assets of the successor or surviving entity (the “Survivor”),
other than Partnership Units held by the General Partner, are contributed, directly or indirectly, to the Partnership as a Capital
Contribution in exchange for Partnership Units with a fair market value equal to the value of the assets so contributed as determined
by the Survivor in good faith and (ii) the Survivor expressly agrees to assume all obligations of the General Partner, as appropriate,
hereunder. Upon such contribution and assumption, the Survivor shall have the right and duty to amend this Agreement as set forth
in this Section 7.1(d). The Survivor shall in good faith arrive at a new method for the calculation of the Cash Amount, the REIT
Shares Amount and Conversion Factor for a Partnership Unit after any such merger or consolidation so as to approximate the existing
method for such calculation as closely as reasonably possible. Such calculation shall take into account, among other things, the
kind and amount of securities, cash and other property that was receivable upon such merger or consolidation by a holder of REIT
Shares of each Class or options, warrants or other rights relating thereto, and which a holder of Partnership Units of any Class
could have acquired had such Partnership Units been exchanged immediately prior to such merger or consolidation. Such amendment
to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as may be practicable
to the adjustments provided for with respect to the Conversion Factor. The Survivor also shall in good faith modify the definition
of REIT Shares and make such amendments to Sections 8.5 and 8.7 hereof so as to approximate the existing rights and obligations
set forth in Sections 8.5 and 8.7 as closely as reasonably possible. The above provisions of this Section 7.1(d) shall similarly
apply to successive mergers or consolidations permitted hereunder.

 

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(e)          Notwithstanding Section 7.1(c),

 

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

 

(ii)           the General Partner may engage in any transaction that is not required to be submitted to the vote of the holders of the
REIT Shares by (A) law or (B) the rules of any national securities exchange on which one or more Classes of REIT Shares are Listed.

 

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

 

(a)          the Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all
the terms and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be
required or appropriate in order to effect the admission of such Person as a General Partner, and a certificate evidencing the
admission of such Person as a General Partner shall have been filed for recordation and all other actions required by Section 2.5
hereof in connection with such admission shall have been performed;

 

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

 

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

 

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

 

(a)         Upon the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section
7.4(a) hereof) or the death, withdrawal, deemed removal or dissolution of the sole remaining General Partner (except that, if the
sole remaining General Partner is on the date of such occurrence a partnership, the withdrawal, death, dissolution, Event of Bankruptcy
as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business
of such General Partner is continued by the remaining partner or partners), the Partnership shall be dissolved and terminated unless
the Partnership is continued pursuant to Section 7.3(b) hereof. The merger of the General Partner with or into any entity that
is admitted as a substitute or successor General Partner pursuant to Section 7.2 hereof shall not be deemed to be the withdrawal,
dissolution or removal of the General Partner.

 

(b)         Following the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to
Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if
a General Partner is, on the date of such occurrence, a partnership, the withdrawal of, death, dissolution, Event of Bankruptcy
as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business
of such General Partner is continued by the remaining partner or partners), the Limited Partners, within ninety (90) days after
such occurrence, may elect to continue the business of the Partnership for the balance of the term specified in Section 2.4 hereof
by selecting, subject to Section 7.2 hereof and any other provisions of this Agreement, a substitute General Partner by consent
of a majority in interest of the Limited Partners. If the Limited Partners elect to continue the business of the Partnership and
admit a substitute General Partner, the relationship with the Partners and of any Person who has acquired an interest of a Partner
in the Partnership shall be governed by this Agreement.

 

7.4          Removal of a General Partner.

 

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

 

(b)         If a General Partner has been removed pursuant to this Section 7.4 and the Partnership is continued pursuant to Section
7.3 hereof, such General Partner shall promptly transfer and assign its General Partnership Interest in the Partnership to the
substitute General Partner approved by a majority in interest of the Limited Partners in accordance with Section 7.3(b) hereof
and otherwise admitted to the Partnership in accordance with Section 7.2 hereof. At the time of assignment, the removed General
Partner shall be entitled to receive from the substitute General Partner the fair market value of the General Partnership Interest
of such removed General Partner as reduced by any damages caused to the Partnership by such General Partner. Such fair market value
shall be determined by an appraiser mutually agreed upon by the General Partner and a majority in interest of the Limited Partners
within ten (10) days following the removal of the General Partner. In the event that the parties are unable to agree upon an appraiser,
the removed General Partner and a majority in interest of the Limited Partners each shall select an appraiser. Each such appraiser
shall complete an appraisal of the fair market value of the removed General Partner’s General Partnership Interest within
thirty (30) days of the General Partner’s removal, and the fair market value of the removed General Partner’s General
Partnership Interest shall be the average of the two appraisals; provided, however, that if the higher appraisal exceeds the lower
appraisal by more than 20% of the amount of the lower appraisal, the two appraisers, no later than forty (40) days after the removal
of the General Partner, shall select a third appraiser who shall complete an appraisal of the fair market value of the removed
General Partner’s General Partnership Interest no later than sixty (60) days after the removal of the General Partner. In
such case, the fair market value of the removed General Partner’s General Partnership Interest shall be the average of the
two appraisals closest in value.

 

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(c)          The General Partnership Interest of a removed General Partner, until transfer under Section 7.4(b), shall be converted to
that of a special Limited Partner; provided, however, such removed General Partner shall not have any rights to participate in
the management and affairs of the Partnership, and shall not be entitled to any portion of the income, expense, profit, gain or
loss allocations or cash distributions allocable or payable, as the case may be, to the Limited Partners. Instead, such removed
General Partner shall receive and be entitled only to retain distributions or allocations of such items that it would have been
entitled to receive in its capacity as General Partner, until the transfer is effective pursuant to Section 7.4(b).

 

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

 

Article
8

RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

 

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

 

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

 

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

 

8.4         Ownership by Limited Partner of Corporate General Partner or Affiliate. No Limited Partner shall at any time,
either directly or indirectly, own any stock or other interest in the General Partner or in any Affiliate thereof, if such ownership
by itself or in conjunction with other stock or other interests owned by other Limited Partners would, in the opinion of counsel
for the Partnership, jeopardize the classification of the Partnership as a partnership for federal tax purposes. The General Partner
shall be entitled to make such reasonable inquiry of the Limited Partners as is required to establish compliance by the Limited
Partners with the provisions of this Section.

 

8.5         Redemption Right.

 

(a)          Subject to Sections 8.5(b), 8.5(c), 8.5(d), 8.5(e) and 8.5(f) and the provisions of any agreements between the Partnership
and one or more Limited Partners with respect to Partnership Units held by them, each Limited Partner, other than the General Partner,
shall, after holding their Partnership Units for at least one year, have the right (subject to the terms and conditions set forth
herein) to require the Partnership to redeem (a “Redemption”) all or a portion of the Partnership Units (other than
Special Units), held by such Limited Partner in exchange (a “Redemption Right”) for REIT shares having the same Class
designation as the Partnership Units subject to the Redemption Right, issuable on, or the Cash Amount payable on, the Specified
Redemption Date, as determined by the General Partner in its sole discretion, provided that such Partnership Units (the “Tendered
Units”) shall have been outstanding for at least one year. Any Redemption Right shall be exercised pursuant to a Notice of
Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner exercising the Redemption Right
(the “Tendering Party”). No Limited Partner may deliver more than two Notices of Redemption during each calendar year.
A Limited Partner may not exercise the Redemption Right for less than 1,000 Partnership Units or, if such Limited Partner holds
less than 1,000 Partnership Units, all of the Partnership Units held by such Partner. The Tendering Party shall have no right,
with respect to any Partnership Units so redeemed, to receive any distribution paid with respect to Partnership Units if the record
date for such distribution is on or after the Specified Redemption Date.

 

(b)          If the General Partner elects to redeem Tendered Units for REIT Shares having the same Class designation as the Tendered
Units rather than cash, then the Partnership shall direct the General Partner to issue and deliver such REIT Shares to the Tendering
Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i) the General Partner, acting as a distinct legal
entity, shall assume directly the obligation with respect thereto and shall satisfy the Tendering Party’s exercise of its
Redemption Right, and (ii) such transaction shall be treated, for federal income tax purposes, as a transfer by the Tendering Party
of such Tendered Units to the General Partner in exchange for REIT shares. The percentage of the Tendered Units tendered for Redemption
by the Tendering Party for which the General Partner elects to issue REIT Shares (rather than cash) is referred to as the “Applicable
Percentage.” In making such election to acquire Tendered Units, the Partnership shall act in a fair, equitable and reasonable
manner that neither prefers one group or class of Limited Partners over another nor discriminates against a group or class of Limited
Partners. If the Partnership elects to redeem any number of Tendered Units for REIT Shares, rather than cash, on the Specified
Redemption Date, the Tendering Party shall sell such number of the Tendered Units to the General Partner in exchange for a number
of REIT Shares having the same Class designation as the Tendered Units equal to the product of the REIT Shares Amount and the Applicable
Percentage. The product of the Applicable Percentage and the REIT Shares Amount, if applicable, shall be delivered by the General
Partner as duly authorized, validly issued, fully paid and accessible REIT Shares having the same Class designation as the Tendered
Units, free of any pledge, lien, encumbrance or restriction, other than the Ownership Limit (as calculated in accordance with the
Charter) and other restrictions provided in the Article of Incorporation, the bylaws of the General Partner, the Securities Act
and relevant state securities or “blue sky” laws. Notwithstanding the provisions of Section 8.5(a) and this Section
8.5(b), the Tendering Parties shall have no rights under this Agreement that would otherwise be prohibited under the Charter.

 

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(c)          In connection with an exercise of Redemption Rights pursuant to this Section 8.5, the Tendering Party shall submit the following
to the General Partner, in addition to the Notice of Redemption:

 

(1)          A written
affidavit, dated the same date as the Notice of Redemption, (a) disclosing the actual and constructive ownership, as determined
for purposes of Code Sections 856(a)(6) and 856(h), of REIT Shares by (i) such Tendering Party and (ii) any Related Party and (b)
representing that, after giving effect to the Redemption, neither the Tendering Party nor any Related Party will own REIT Shares
in excess of the Ownership Limit (or, if applicable the Excepted Holder Limit);

 

(2)          A written
representation that neither the Tendering Party nor any Related Party has any intention to acquire any additional REIT Shares prior
to the closing of the Redemption on the Specified Redemption Date;

 

(3)          An undertaking
to certify, at and as a condition to the closing of the Redemption on the Specified Redemption Date, that either (a) the actual
and constructive ownership of REIT Shares by the Tendering Party and any Related Party remain unchanged from that disclosed in
the affidavit required by Section 8.5(c)(1) or (b) after giving effect to the Redemption, neither the Tendering Party nor any Related
Party shall own REIT Shares in violation of the Ownership Limit (or, if applicable, the Excepted Holder Limit);

 

(4)          With respect
to any Cash Amount to be received by a Tendering Party, a waiver and release in a form acceptable to the General Partner; and

 

(5)          Any other
documents as the General Partner may reasonably require.

 

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(d)          Any Cash Amount to be paid to a Tendering Party pursuant to this Section 8.5 shall be paid on the Specified Redemption Date;
provided, however, that the General Partner may elect to cause the Specified Redemption Date to be delayed for up to an additional
180 days to the extent required for the General Partner to provide financing to be used to make such payment of the Cash Amount,
by causing the issuance of additional REIT Shares or otherwise. Notwithstanding the foregoing, the General Partner agrees to use
its commercially reasonable efforts to cause the closing of the acquisition of Tendered Units hereunder to occur as quickly as
reasonably possible.

 

(e)          Notwithstanding any other provision of this Agreement, the General Partner shall place appropriate restrictions on the ability
of the Limited Partners to exercise their Redemption Rights to prevent, among other things, (a) any person from owning shares in
excess of the Common Share Ownership Limit, the Aggregate Share Ownership Limit and the Excepted Holder Limit, (b) the General
Partner’s common stock from being owned by less than 100 persons, the General Partner from being “closely held”
within the meaning of section 856(h) of the Code, and as and if deemed necessary to ensure that the Partnership does not constitute
a “publicly traded partnership” under section 7704 of the Code. If and when the General Partner determines that imposing
such restrictions is necessary, the General Partner shall give prompt written notice thereof to each of the Limited Partners holding
Partnership Units, which notice shall be accompanied by a copy of an opinion of counsel to the Partnership which states that, in
the opinion of such counsel, restrictions are necessary in order to avoid having the Partnership be treated as a “publicly
traded partnership” under section 7704 of the Code.

 

(f)           A redemption fee may be charged in connection with an exercise of Redemption Rights pursuant to this Section 8.5.

 

8.6         Registration. Subject to the terms of any agreement between the General Partner and one or more Limited Partners
with respect to Partnership Units held by them:

 

(a)          Listing on Securities Exchange. If the General Partner shall list or maintain the listing of any REIT Shares on any
securities exchange or national market system, it will at its expense and as necessary to permit the registration and sale of the
REIT Shares that may be issued upon redemption of Partnership Units pursuant to Section 8.5 hereof (the “Redemption Shares”)
hereunder, list thereon, maintain and, when necessary, increase such listing to include such Redemption Shares.

 

(b)          Registration Not Required. Notwithstanding the foregoing, the General Partner shall not be required to file or maintain
the effectiveness of a registration statement covering the resale of Redemption Shares if, in the opinion of counsel to the General
Partner, such Redemption Shares could be sold by the holders thereof pursuant to Rule 144 under the Securities Act, or any successor
rule thereto.

 

8.7         Redemption or Conversion of Special Partnership Units. Upon the earliest to occur of (a) the termination or nonrenewal
of the Advisory Agreement for “cause” (as defined in the Advisory Agreement), (b) a Termination Event, or (c) a Liquidity
Event which does not qualify as a Termination Event, the Special Partnership Units will be exchanged for Partnership Units with
a value as described below and immediately thereafter such Partnership Units received upon exchange of the Special Partnership
Units will be redeemed, subject to the option of the Special OP Unitholders to retain such Partnership Units received upon exchange
of the Special Partnership Units in such circumstances; provided, however, that in the event of any Termination Event or a Liquidity
Event which does not qualify as a Termination Event, the Special OP Unitholders may choose to receive distributions of the Net
Sales Proceeds from such Termination Event or Liquidity Event in accordance with the distribution provisions set forth in Section
5.2(b) rather than having its Partnership Units exchanged and redeemed in accordance with this Section 8.7.

 

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(a)          Redemption of Special Partnership Units Upon Termination or Nonrenewal of the Advisory Agreement for Cause. If the
Advisory Agreement is terminated or not renewed by the General Partner for “cause” (as defined in the Advisory Agreement),
all of the Special Partnership Units shall be redeemed by the Partnership for $1 within thirty (30) days after the termination
or nonrenewal of the Advisory Agreement.

 

(b)          Redemption of Special Partnership Units upon a Termination Event or Liquidity Event. Upon the occurrence of a Termination
Event or a Liquidity Event, unless a Special OP Unitholder has chosen to receive distributions of the Net Sales Proceeds from such
Termination Event or Liquidity Event in accordance with the proviso in Section 8.7 above, the Special Partnership Units shall be
exchanged for Class A Units with a value equal to the Net Sales Proceeds that would have been distributed to the Special OP Unitholders
under Section 5.2(b) if all assets of the Partnership had been sold for their fair market value, as determined in good faith by
the General Partner, all liabilities of the Partnership were satisfied in full in cash according to their terms, and Net Sales
Proceeds (after satisfaction of such liabilities) were distributed in full pursuant to Section 5.2(b), provided however, (i) in
any case of a Liquidity Event of the type described in Section 7.1(c) (including a Termination Event that is a Liquidity Event),
the General Partner shall determine such fair market value by reference to the value paid to the holders of Class A REIT Shares,
if applicable, and the implied value of the Partnership’s assets as a result of such Liquidity Event, (ii) in any case of
a Termination Event which is not a Liquidity Event of the type described in Section 7.1(c), the General Partner shall determine
such fair market value by reference to a valuation provided by an independent appraiser selected by the General Partner and approved
by the Special OP Unitholders, and (iii) in connection with a Listing, the General Partner shall make such determination taking
into account the market value of the General Partner’s Class A Listed Shares based upon the average closing price, or average
of bid and asked prices, as the case may be, during a period of thirty (30) days during which such shares are traded beginning
150 days after the Listing (the date on which such valuation is determined to be referred to as the “Valuation Date”).
In the case of a Termination Event or Liquidity Event which is not a Listing, unless a Special OP Unitholder has chosen to receive
distributions of the Net Sales Proceeds from such Termination Event or Liquidity Event in accordance with the proviso in Section
8.7 above, such OP Units shall be redeemed in connection with such Termination Event or Liquidity Event or as soon as is reasonably
practicable thereafter, and in the case of a Listing described above, the redemption of such Class A Units shall occur within 210
days thereof. The payment to the Special OP Unitholders upon the redemption of their Partnership Units resulting from a Termination
Event or a Liquidity Event, to the extent applicable, shall be paid in cash; provided, however that if the Board of Directors of
the General Partner determines that such payment will impair the capital of the General Partner, such payment shall consist of
a promissory note bearing interest at a competitive market rate (determined by taking into account, among other things, the size
of the Partnership, its capital structure and financial strength, its credit rating or the credit rating of its General Partner
(if applicable), the terms of the promissory note, including its maturity date, principal balance, whether it is secured or unsecured,
whether it pays interest currently or allows it to accrue, and the liquidation preference of the promissory note in relation to
other liabilities and obligations of the Partnership). The promissory note will be repaid pursuant to the terms thereof, including
using the entire net proceeds of each Sale of an Asset or Assets of the Partnership in connection with or following the occurrence
of the Termination Event or a Liquidity Event. Notwithstanding anything to the contrary in this Section 8.7, in the case of any
termination or non-renewal of the Advisory Agreement that is not in connection with a Liquidity Event or for “cause”
(as defined in the Advisory Agreement), the Special OP Unitholders shall receive payment in the form of a promissory note, which
shall be payable in 12 equal quarterly installments and will bear interest on the unpaid balance at a rate determined by the Board
of Directors of the General Partner to be fair and reasonable; provided, however, that no payment shall be made in any quarter
in which such payment would impair the General Partner’s capital or jeopardize its REIT status (and such deferred payments
shall be delayed until the next quarter in which payment would not impair the General Partner’s capital or jeopardize REIT
status); further provided that the payment of the outstanding balance on any promissory note and all interest due on such note
shall be accelerated upon the occurrence of a Liquidity Event.

 

    41

     

    

 

8.8         Distribution
Reinvestment Plan. OP Unitholders may have the opportunity to join the General Partner’s distribution reinvestment
plan by completing an enrollment form which is available upon request. A copy of the General Partner’s distribution reinvestment
plan is also available upon request. The shares of the General Partner’s common stock which may be issued under the General
Partner’s distribution reinvestment plan are offered only by a prospectus.

 

Article
9

TRANSFERS OF LIMITED PARTNERSHIP INTERESTS

 

9.1         Purchase for Investment.

 

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

 

(b)          Each Limited Partner agrees that he will not sell, assign or otherwise transfer his Partnership Interest or any fraction
thereof, whether voluntarily or by operation of law or at judicial sale or otherwise, to any Person who does not make the representations
and warranties to the General Partner set forth in Section 9.1(a) above and similarly agree not to sell, assign or transfer such
Partnership Interest or fraction thereof to any Person who does not similarly represent, warrant and agree.

 

    42

     

    

 

9.2         
Restrictions on Transfer of Limited Partnership Interests.

 

(a)           Subject
to the provisions of 9.2(b) and (c), no Limited Partner may offer, sell, assign, hypothecate, pledge or otherwise transfer all
or any portion of his Limited Partnership Interest, or any of such Limited Partner’s economic rights as a Limited Partner,
whether voluntarily or by operation of law or at judicial sale or otherwise (collectively, a “Transfer”) without the
consent of the General Partner, which consent may be granted or withheld in its sole and absolute discretion. Any such purported
transfer undertaken without such consent shall be considered to be null and void ab initio and shall not be given effect. The
General Partner may require, as a condition of any Transfer to which it consents, that the transferor assume all costs incurred
by the Partnership in connection therewith.

 

(b)           No
Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer (i.e., a Transfer consented to
as contemplated by clause (a) above or clause (c) below or a Transfer pursuant to Section 9.5 below) of all of its Partnership
Interest pursuant to this Article 9 or pursuant to a redemption of all of its Partnership Units pursuant to Section 8.5 or pursuant
to the redemption of the Limited Partner’s Special Partnership Units pursuant to Section 8.7. Upon the permitted Transfer
or redemption of all of a Limited Partner’s Partnership Interest, such Limited Partner shall cease to be a Limited Partner.

 

(c)           Notwithstanding
Section 9.2(a) and subject to Sections 9.2(d), (e) and (f) below, a Limited Partner may Transfer, without the consent of the General
Partner, all or a portion of its Partnership Interest to (i) a parent or parent’s spouse, natural or adopted descendant
or descendants, spouse of such descendant, or brother or sister, or a trust created by such Limited Partner for the benefit of
such Limited Partner and/or any such person(s), of which trust such Limited Partner or any such person(s) is a trustee, (ii) a
corporation controlled by a Person or Persons named in (i) above, or (iii) if the Limited Partner is an entity, its beneficial
owners.

 

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

 

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

 

    	 	43	 

     

    

 

(f)            No
transfer by a Limited Partner of any Partnership Interest may be made to a lender to the Partnership or any Person who is related
(within the meaning of Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse liability
(within the meaning of Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in
its sole and absolute discretion, provided that as a condition to such consent the lender will be required to enter into an arrangement
with the Partnership and the General Partner to exchange or redeem for the Cash Amount any Partnership Units in which a security
interest is held simultaneously with the time at which such lender would be deemed to be a Partner in the Partnership for purposes
of allocating liabilities to such lender under Section 752 of the Code.

 

(g)           Any
Transfer in contravention of any of the provisions of this Article 9 shall be void and ineffectual and shall not be binding upon,
or recognized by, the Partnership.

 

(h)           Prior
to the consummation of any Transfer under this Article 9, the transferor and/or the transferee shall deliver to the General Partner
such opinions, certificates and other documents as the General Partner shall request in connection with such Transfer.

 

9.3         
Admission of Substitute Limited Partner.

 

(a)          
Subject to the other provisions of this Article 9, an assignee of the Limited Partnership Interest of a Limited Partner
(which shall be understood to include any purchaser, transferee, donee, or other recipient of any disposition of such Limited Partnership
Interest) shall be deemed admitted as a Limited Partner of the Partnership only with the consent of the General Partner, which
consent may be granted or withheld in its sole and absolute discretion, and upon the satisfactory completion of the following:

 

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

 

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

 

(iii)            The
assignee shall have delivered a letter containing the representation set forth in Section 9.1(a) hereof and the agreement set
forth in Section 9.1(b) hereof.

 

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

 

(v)             The
assignee shall have executed a power of attorney containing the terms and provisions set forth in Section 8.2 hereof.

 

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

 

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

 

    	 	44	 

     

    

 

(b)            For
the purpose of allocating profits and losses and distributing cash received by the Partnership, a Substitute Limited Partner shall
be treated as having become, and appearing in the records of the Partnership as, a Partner upon the filing of the Certificate
described in Section 9.3(a)(ii) hereof or, if no such filing is required, the later of the date specified in the transfer documents
or the date on which the General Partner has received all necessary instruments of transfer and substitution.

 

(c)            The
General Partner shall cooperate with the Person seeking to become a Substitute Limited Partner by preparing the documentation
required by this Section and making all official filings and publications. The Partnership shall take all such action as promptly
as practicable after the satisfaction of the conditions in this Article 9 to the admission of such Person as a Limited Partner
of the Partnership.

 

9.4         
Rights of Assignees of Partnership Interests.

 

(a)            Subject to the provisions of Sections 9.1 and 9.2 hereof, except as required by operation of law, the Partnership shall
not be obligated for any purposes whatsoever to recognize the assignment by any Limited Partner of its Partnership Interest until
the Partnership has received notice thereof.

 

(b)           Any
Person who is the assignee of all or any portion of a Limited Partner’s Limited Partnership Interest, but does not become
a Substitute Limited Partner and desires to make a further assignment of such Limited Partnership Interest, shall be subject to
all the provisions of this Article 9 to the same extent and in the same manner as any Limited Partner desiring to make an assignment
of its Limited Partnership Interest.

 

9.5         
Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner. The occurrence of an Event of
Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is incompetent
(which term shall include, but not be limited to, insanity) shall not cause the termination or dissolution of the Partnership,
and the business of the Partnership shall continue if an order for relief in a bankruptcy proceeding is entered against a Limited
Partner, the trustee or receiver of his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated
incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling
or managing his estate property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all
or any part of his Partnership Interest and to join with the assignee in satisfying conditions precedent to the admission of the
assignee as a Substitute Limited Partner.

 

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

 

    	 	45	 

     

    

 

Article
10

BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

 

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

 

10.2        Custody of Partnership Funds; Bank Accounts.

 

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

 

(b)          All
deposits and other funds not needed in the operation of the business of the Partnership may be invested by the General Partner
in investment grade instruments (or investment companies whose portfolio consists primarily thereof), government obligations,
certificates of deposit, bankers’ acceptances and municipal notes and bonds. The funds of the Partnership shall not be commingled
with the funds of any other Person except for such commingling as may necessarily result from an investment in those investment
companies permitted by this Section 10.2(b).

 

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

 

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

 

    	 	46	 

     

    

 

10.5        Partnership Representative; Tax Elections; Special Basis Adjustments.

 

(a)            BBA
Audit Rules.

 

(i)            Partnership
Representative. The General Partner shall designate the "Partnership Representative" of the Partnership for purposes
of Sections 6221-6241 of the Code as amended by the Bipartisan Budget Act of 2015 and subsequent legislation, as well as similar
state and local legislation (collectively, the "BBA Audit Rules"). The Partnership Representative shall be the sole
person authorized to represent and act on behalf of the Partnership and the Partners in connection with an examination or proceeding
under the BBA Audit Rules. If the Partnership Representative is not an individual, the Partnership Representative shall designate
an individual to act as the “designated individual” for purposes of the BBA Audit Rules. The General Partner shall
require the Partnership Representative to act solely as directed by the General Partner, and the General Partner shall exercise
reasonable business judgment in determining how the Partnership Representative will act or not act. With respect to this Section
10.5(a), the General Partner must obtain the written consent of Special OP Unitholders before acting or not acting in a manner
that would disproportionately and adversely affect Special OP Unitholders. In addition, the General Partner shall not make a Section
6226 election without previously having given Special OP Unitholders a reasonable opportunity to avail itself of the modification
procedures under Section 6225(c)(2) of the Code. The General Partner shall ensure that the Partnership Representative provides
timely notice to the Partners of all communications with the Internal Revenue Service or other tax agency that are pursuant to
the BBA Audit Rules.

 

(ii)           Cooperation.
The Partners hereby agree to cooperate and provide information and documentation that is reasonably requested by the Partnership
Representative with respect to the conduct of an examination or proceeding under the BBA Audit Rules, including cooperation that
will enable the Partnership to take advantage of the modification procedures provided by Section 6225(c) with respect to a contemplated
adjustment in a proceeding relating to the Partnership. Such cooperation may include the filing of amended tax returns and the
payment of additional tax.

 

(iii)          Partnership Payments. In the event that the Partnership pays an imputed underpayment under BBA Audit Rules or an
associated amount such as penalties or interest (collectively, a "Partnership Tax Payment"), the Partnership Representative
shall allocate the Partnership Tax Payment to the Partners as required under the Code and associated guidance. If no particular
allocation is required, the Partnership Representative shall exercise reasonable business judgment in making this allocation. Each
Partner hereby agrees to indemnify the Partnership for its allocated share of a Partnership Tax Payment, plus interest thereon
at a rate equal to the long-term applicable Federal rate under Code Section 1274(d), computed annually, as of the date the Partnership
Tax Payment was made. At the option of the General Partner, the Partnership may collect the indemnity owed by a Partner under this
Section 10.5(a)(iii) by withholding amounts that otherwise would have been distributed to such Partner under Section 5. In addition,
the General Partner may waive a Partner's obligation to indemnify the Partnership for its share of a Partnership Tax Payment so
long as this does not reduce the amount that the Partnership will distribute to the other Partners. If the General Partner waives
a Partner's obligation to indemnify the Partnership for its share of a Partnership Tax Payment, such share of the Partnership Tax
Payment shall be treated as an expense of the Partnership under Section 704 of the Code.

 

    	 	47	 

     

    

 

(iv)            Adjustments
That Do Not Result in an Imputed Underpayment. The General Partner may use reasonable discretion to make allocations relating
to adjustments under Section 6225(a)(2) of the Code that do not result in an imputed underpayment.

 

(v)             Lower-Tier
Partnerships. If the Partnership invests in an entity that is treated as a partnership for U.S. federal income tax purposes,
and such entity makes a Partnership Tax Payment or has an adjustment under Section 6225(a)(2) that does not result in an imputed
underpayment, the General Partner is authorized to apply the principles of Sections 10.5(a)(iii) and (iv) with respect the Partnership's
share of that Partnership Tax Payment and any associated indemnification that the Partnership may pay.

 

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

 

(c)           In the event of a transfer of all or any part of the Partnership Interest of any Partner, the Partnership, at the option
of the General Partner, may elect pursuant to Section 754 of the Code to adjust the basis of the Partnership’s assets. Notwithstanding
anything contained in Article 5 of this Agreement, any adjustments made pursuant to Section 754 of the Code shall affect only the
successor in interest to the transferring Partner and in no event shall be taken into account in establishing, maintaining or computing
Capital Accounts for the other Partners for any purpose under this Agreement. Each Partner will furnish the Partnership with all
information necessary to give effect to such election.

 

10.6        Reports to Limited Partners.

 

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

 

    	 	48	 

     

    

 

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

 

10.7        Safe
Harbor Election. The Partners agree that, in the event the Safe Harbor Regulation is finalized, the Partnership shall be
authorized and directed to make the Safe Harbor Election and the Partnership and each Partner (including any person to whom an
interest in the Partnership is transferred in connection with the performance of services) agrees to comply with all requirements
of the Safe Harbor with respect to all interests in the Partnership transferred in connection with the performance of services
while the Safe Harbor Election remains effective. The Tax Matters Partner shall be authorized to (and shall) prepare, execute,
and file the Safe Harbor Election.

 

Article
11

AMENDMENT OF AGREEMENT; MERGER

 

The General Partner’s
consent shall be required for any amendment to this Agreement. The General Partner, without the consent of the Limited Partners,
may amend this Agreement in any respect or merge or consolidate the Partnership with or into any other partnership or business
entity (as defined in Section 17-211 of the Act) in a transaction pursuant to Section 7.1(c), (d) or (e) hereof; provided, however,
that the following amendments and any other merger, conversion or consolidation of the Partnership shall require (i) the consent
of Limited Partners holding more than 50% of the Percentage Interests of the Limited Partners and (ii) in the case of any of the
following (b), (c) or (d), the consent of Limited Partners holding more than 50% of the Special Percentage Interests of the Limited
Partners:

 

(a)            any amendment affecting the operation of the Conversion Factor or the Redemption Right (except as provided in Section 8.5(d)
or 7.1(d) hereof) in a manner adverse to the Limited Partners;

 

(b)            any
amendment that would adversely affect the rights of the Limited Partners to receive the distributions payable to them hereunder,
other than with respect to the issuance of additional Partnership Units pursuant to Section 4.2 hereof;

 

(c)            any
amendment that would alter the Partnership’s allocations of profit and loss to the Limited Partners, other than with respect
to the issuance of additional Partnership Units pursuant to Section 4.2 hereof; or

 

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

 

    	 	49	 

     

    

 

Article
12

GENERAL PROVISIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12.9        Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware; provided,
however, that any cause of action for violation of federal or state securities laws shall not be governed by this Section 12.9.

 

    	 	50	 

     

    

  

IN WITNESS WHEREOF,
the parties hereto have hereunder affixed their signatures to this Third Amended and Restated Limited Partnership Agreement, all
as of February 3, 2020.

 

	 	GENERAL PARTNER:
	 	 	 
	 	INDUSTRIAL PROPERTY TRUST, a
	 	Maryland real estate investment trust
	 	 	 
	 	 	 
		By:	/s/
    Thomas G. McGonagle
	 	 	Name: 	Thomas G. McGonagle
	 	 	Title: 	Chief Financial Officer

 

     

     

    

 

	 	LIMITED PARTNER:
	 	 	 
	 	 	 
	 	INDUSTRIAL PROPERTY TRUST
	 	 	 
	 	 	 
	 	By:	/s/ Thomas G. McGonagle
	 	 	Name:	Thomas G. McGonagle
	 	 	Title:	Chief Financial Officer
	 	 	 
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 
	 	 
	 	IPT ADVISOR LLC
	 	 	 
	 	 	 
	 	By:	/s/ Evan H. Zucker
	 	 	Name:	Evan H. Zucker
	 	 	Title:	 Manager

 

     

     

    

 

EXHIBIT A

 

As of February 3, 2020

 

	
         

         

        Partner

         
	
         

        Cash Contribution
	
        Agreed Value of

Non-Cash Capital

Contribution
	
        Agreed Value of

Capital

Contribution
	Class A

 Partnership

 Units	Special

 Partnership

 Units	Percentage

 Interest	Special

 Percentage

 Interest	Preferred

 Equity

 Interest
	
        GENERAL PARTNER:

         
	 	 	 	 	
         

         
	 	 	 
	
        Industrial Property Trust

        518 17th
Street, 17th Floor

        Denver, CO 80202

         
	$2,000	 	$2,000	
        200

         
	__	0.0001%	0%	0%
	
        ORIGINAL LIMITED 

        PARTNER:

         
	 	 	 	 	 	 	 	 
	
        Industrial Property Trust

        518 17th Street, 17th
        Floor

        Denver, CO 80202

         
	$1,860,014,919	 	$1,860,014,919	177,335,375	__	99.9999%	0%	0%
	SPECIAL LIMITED

                                                                                PARTNER
	 	 	 	 	 	 	 	 
	
        IPT Advisor LLC

        518 17th Street, 17th
        Floor

        Denver, CO 80202

         
	$1,000	$10,000,000	$10,001,000	1,000,100	100	0.0000%	100%	100%
	Totals	$1,860,017,919	$10,000,000	$1,870,017,919	178,335,675	100	100%	100%	100%

 

     

     

    

 

EXHIBIT B

 

NOTICE OF EXERCISE OF REDEMPTION RIGHT

 

In accordance with
Section 8.5 of the Limited Partnership Agreement (the “Agreement”) of Industrial Property Operating Partnership LP,
the undersigned hereby irrevocably (i) presents for redemption ________ Partnership Units in Industrial Property Operating
Partnership LP in accordance with the terms of the Agreement and the Redemption Right referred to in Section 8.5 thereof, (ii) surrenders
such Partnership Units and all right, title and interest therein, and (iii) directs that the Cash Amount or REIT Shares Amount
(as defined in the Agreement) as determined by the General Partner deliverable upon exercise of the Redemption Right be delivered
to the address specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT Shares be registered
or placed in the name(s) and at the address(es) specified below.

 

	Dated:________ __, _____	 	 
		 	(Name of Limited Partner)
	 	 	 
	 	 	 
		 	(Signature of Limited Partner)
	 	 	 
	 	 	 
		 	(Mailing Address)
	 	 	 
	 	 	 
		 	(City) (State) (Zip Code)
	 	 	 
	 	 	 
		 	Signature Guaranteed by:
	 	 	 
	 	 	 
	If REIT Shares are to be issued, issue to:	 	 

 

	Name:		 	 

 

	Social Security	 	 
	or Tax I.D. Number:		 	 

 

    	 	B-1Exhibit

Exhibit 10.1

SUNRUN INC. 
AMENDED AND RESTATED EXECUTIVE INCENTIVE COMPENSATION PLAN
1.    PURPOSE  
The Sunrun Inc. Amended and Restated Executive Incentive Compensation Plan (the “Plan”) is designed to provide incentives to participating employees to make important contributions to the success of Sunrun Inc. (the “Company”) and reward such employees for outstanding performance.  The Plan is also intended to enhance the ability of the Company to attract and retain highly talented individuals.  As of January 1, 2020 (the “Effective Date”), this Plan amends and restates in its entirety the Company’s Executive Incentive Compensation Plan that was previously adopted on December 9, 2014 (the “Prior Plan”) and supersedes the Prior Plan as of the Effective Date.
2.    ADMINISTRATION
The Plan will be administered by the Compensation Committee (the “Plan Administrator”) of the Board of Directors (the “Board”) of the Company. The Plan Administrator will have the sole discretion and authority to administer and interpret the Plan, and the decisions of the Plan Administrator will in every case be final and binding on all persons having an interest in the Plan.
3.    ELIGIBILITY
(a)    Participation  
Each employee of the Company who is selected by the Plan Administrator for participation and has a written notification from the Company or written agreement with the Company that provides for such employee’s Target Award (as defined in Section 4 below) and eligibility for participation in the Plan is eligible to participate in the Plan and shall be considered a “Participant” in the Plan.  Participation in the Plan will generally be limited to executive level Company employees, including Company officers.  Unless otherwise specified by the Plan Administrator or expressly provided in a written agreement between a Participant and the Company or written notification provided to a Participant by the Company, an individual who commences employment with the Company during an applicable performance period may become a Participant for such performance period, commencing on the date such individual commences employment with the Company (provided such individual meets all other eligibility criteria for participation in the Plan), and will receive a pro-rated Target Award (as defined below) for such initial performance period.
(b)    Awards
Each Participant in a performance period will be granted an award of a contingent right to a future payment under the Plan (an “Award”) for such performance period, which will be paid contingent upon achievement of applicable performance goals established by the Plan Administrator for the applicable performance period and earned upon satisfaction of all applicable conditions for earning such Awards. 

1.    
218978193 v3 

(c)    Award Payments
In order to be eligible to receive payment of an Award, a Participant must meet the following criteria: (A) continue to be employed with the Company from the date his or her participation in the Plan commences for the applicable performance period through the date the Award is paid; and (B) comply with any rules of the Plan established by the Plan Administrator.  If a Participant’s titles or duties change during a performance period, such individual’s Award may be adjusted as determined appropriate by the Plan Administrator.  There is no guarantee for any payment of an Award under the Plan.  Awards are paid as advances and not earned until no longer subject to recoupment in accordance with the Clawback Provisions described in Section 6(h) below, to the extent applicable to the Participant.
4.    METHOD FOR ESTABLISHING AND DETERMINING AWARDS 
(a)    Establishment of Target Awards  
For each performance period, each Participant shall have a target award opportunity under the Plan (“Target Award”), as approved by the Plan Administrator as either a percentage of such Participant’s Base Salary earned during such performance period or as a set dollar amount, and which Target Award is communicated to the Participant in writing.  The Plan Administrator is not obligated to treat all Plan Participants similarly. For purposes of the Plan, unless otherwise determined by the Plan Administrator, “Base Salary” for a Participant means the total amount of base salary or base wages earned by such Participant during the applicable performance period while such individual is a Participant.  Base Salary does not include any bonuses, commissions or other incentive compensation, amounts received or otherwise recognized in connection with equity awards, expense reimbursements, relocation payments, overtime or shift differential payments, contributions made by the Company under any employee benefit plan, the value of any employee benefits or perquisites paid for by the Company, or any other similar items of compensation.  Base Salary will be determined before any deductions for taxes or benefits and deferrals of compensation pursuant to any Company-sponsored plan.
(b)    Establishment of Performance Periods  
The Plan Administrator will establish the applicable performance periods during which actual performance will be measured against the performance goals established by the Plan Administrator to determine the Participant’s potential Award.  Performance periods will generally be established by the Plan Administrator in reference to the Company’s fiscal year and may consist of a single fiscal year, multiple fiscal years, or one or more portions of a fiscal year.
(c)    Establishment of Performance Goals  
With respect to each performance period, the Plan Administrator will establish the following for each Participant: (i) one or more performance goals (which may be corporate performance goals and/or individual performance goals) and (ii) the relative weights, if any, of such performance goals and (iii) such other terms and conditions of the Award, if any, the Plan Administrator determines appropriate in its discretion (and in accordance with the terms of the Plan).  The Plan Administrator 

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will make such determinations under this Section 5(c) at the times and in the manner determined appropriate in its sole discretion and is not obligated to treat all Plan Participants similarly.
(d)    Evaluation of Performance Results 
Following the end of each performance period, the Plan Administrator will determine whether (and to what extent) the performance goals established for such performance period have been achieved.
(e)    Determination of Actual Awards
For each performance period, the Plan Administrator will determine the amount of any actual Award for each Participant (which may be below, at or above the applicable Target Award) based on (i) the extent to which the performance goals established for such performance period have been achieved (and any relative weighting of such performance goals), (ii) such Participant’s Target Award, and (iii) if and the extent to which any and all other conditions for a Participant to earn and receive an Award have been met.  Notwithstanding the foregoing, in determining the amount of any actual Award for any Participant, the Plan Administrator will have the discretion to reduce the amount of any actual Award below the amount calculated under the terms of the Plan, including to zero, or increase the amount of any actual Award above the amount calculated under the terms of the Plan.  In making such determination the Plan Administrator may take into consideration such other factors as it determines appropriate, in its sole discretion, including the Participant’s individual performance.  Awards will additionally be subject to any maximum payout limitation approved by the Plan Administrator for the applicable performance period.  
Unless otherwise determined by the Plan Administrator: (i) any Participant who switches from full-time to part-time employment during the performance period will have his or her actual Award reduced on a pro-rata basis based upon the applicable percentage of full-time equivalent employment that was in effect on an aggregate basis during the performance period and (ii) no adjustment will be made to the determined amount of an actual Award for any Participant due to any reduction in the percentage of full-time equivalent employment of a Participant that occurs after expiration of the performance period and prior to determination of the actual Award.  
Unless prohibited by applicable law or otherwise determined by the Plan Administrator: (i) any Participant who is absent due to an approved leave of absence during the performance period, and who otherwise is eligible to receive and earns an actual Award for such performance period, will have his or her actual Award reduced on a pro-rata basis based upon the applicable period of active employment during the performance period and (ii) no adjustment will be made to the determined amount of an actual Award for any Participant due to any leave of absence that commences after expiration of the performance period and prior to determination of the actual Award.

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5.    PAYMENT OF AWARDS
Following, and subject to, the Plan Administrator’s determination of actual Awards for a performance period, the Plan Administrator will approve the payment of Awards for such performance period, subject to satisfaction of any continued services or additional conditions established by the Plan Administrator to receive the Award.  Payment of Awards under the Plan will be made as soon as practicable after such approval or satisfaction of such conditions, as applicable.  However, Awards are not earned until no longer subject to recovery pursuant to the Clawback Provisions described in Section 6(h) below, to the extent applicable to the Participant.  As a result, the Company pays Awards in advance of the Participant’s earning of the Award, and such advances are subject to recovery pursuant to the Clawback Provisions described in Section 6(h) below, to the extent applicable to the Participant.  
All Awards made under the Plan will be paid in the form of cash or, if approved by the Board or the Committee, an equity award under the Company’s 2015 Equity Incentive Plan (or any successor thereto), as determined by the Plan Administrator in its sole discretion after considering the potential application and requirements of Section 409A of the Internal Revenue Code.  The terms and conditions of any such equity award will be determined by the Plan Administrator in its sole discretion after considering the potential application and requirements of Section 409A of the Internal Revenue Code.  
6.    MISCELLANEOUS
(a)    Withholding of Compensation.  The Company will deduct and withhold from any amounts payable to Participants under the Plan any amounts required to be deducted and withheld by the Company under the provisions of any applicable federal, state, local or foreign statute, law, regulation, ordinance or order.  The Company reserves the right to require a Participant to satisfy such deduction and withholding obligation in such manner as specified by the Company under applicable law, in the event that amounts payable to Participants under the Plan are not paid in the form of cash.
(b)    Plan Funding.  The Plan will be unfunded.  Nothing contained in the Plan will be deemed to require the Company to deposit, invest or set aside amounts for the payment of any Awards under the Plan.
(c)    Amendment or Termination of the Plan.  The Plan may be amended or terminated at any time by the Compensation Committee or the Board.
(d)    No Guarantee of Continued Service.  The Plan will not confer any rights upon an employee to remain in service with the Company or any affiliate of the Company for any specific duration or interfere with or otherwise restrict in any way the rights of the Company or any affiliate of the Company to terminate an employee’s service with the Company (or affiliate, if applicable) for any reason, with or without cause or advance notice.
(e)    No Assignment or Transfer.  None of the rights, benefits, obligations or duties under the Plan may be assigned or transferred by any individual employee or Participant.  Any purported 

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assignment or transfer by any employee or Participant will be void.  Participation in the Plan does not give any individual any ownership, security, or other rights in any assets of the Company.
(f)    Validity.  In the event any provision of the Plan is held invalid, void, or unenforceable, the same will not affect, in any respect whatsoever, the validity of any other provision of the Plan.
(g)    Governing Documents.  Each Award under the Plan shall be governed by the provisions of the Plan as set forth herein.  This Plan contains the entire agreement between the Company and each Participant on this subject, and supersedes all prior bonus compensation plans or programs of the Company and all other previous oral or written statements regarding any such bonus compensation programs or plans.
(h)    Clawback/Recovery.  All Awards and payouts under the Plan will be subject to recoupment in accordance with  the following provisions, as applicable (the “Clawback Provisions”): (i) the Sunrun Inc. Policy for Recoupment of Incentive Compensation, (ii) any clawback policy that the Company (x) is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law and (y) otherwise voluntarily adopts, to the extent applicable and permissible under applicable law; and (iii) such other clawback, recovery or recoupment provisions set forth in an individual written agreement between the Company and the Participant.  No recovery of compensation under such a Clawback Provision will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company.
(i)    Recovery of Mistaken Payments:  On occasion or by mistake, the Company may overpay or make incorrect payments of Awards.  For these situations, to the extent permitted by applicable law, the Company reserves the right to offset or recover such mistaken payment amounts from any future payments of compensation to the Participant.   By signing below, the Participant hereby authorizes the Company to reduce from any amounts owed to the Participant by the Company (including Base Salary, expense reimbursements, other bonuses or accrued vacation pay) such mistaken payment amounts and, to the extent the mistaken payment amounts are not repaid to the Company from such reduction, then the unpaid balance becomes a debt the Participant owes to the Company.
(j)    Governing Law.  The rights and obligations of any employee under the Plan will be governed by and interpreted, construed and enforced in accordance with the laws of the State of California without regard to its or any other jurisdiction’s conflicts of laws principles.
(k)    Section 409A.  All Plan payments are intended to satisfy the requirements for the “short-term deferral” exemption from application of Section 409A of the Internal Revenue Code provided under Treasury Regulations Sections 1.409A-1(b)(4) and any ambiguities herein shall be interpreted accordingly.

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Participant’s Acknowledgement:

I have read and understood the terms and conditions of the Plan stated herein, and I accept and agree to be bound by its terms. I understand that failure to sign this document will disqualify me from earning any other payments under the Plan, and that I will not be otherwise eligible to earn any or other bonus payments.

____________________________________

Name: ______________________________

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