Document:

Exhibit 10.59 Coriell Amendment

SERVICES AGREEMENT
THIS SERVICES AGREEMENT (“Agreement”), effective as of December 1, 2013 (the “Effective Date”), by and between CELLULAR DYNAMICS INTERNATIONAL, INC., a Wisconsin corporation having its address at 525 Science Drive, Madison, Wisconsin 53711 (“CDI” or a “Party”), and CORIELL INSTITUTE FOR MEDICAL RESEARCH, a New Jersey non‐profit corporation having its address at 403 Haddon Avenue, Camden, New Jersey 08103 (“Coriell” or a “Party” and, collectively, with CDI, the “Parties”).

RECITALS:

WHEREAS, Coriell submitted an application to RFA 12-04: CIRM hPSC Repository Award (“RFA 12-04”), issued by the California Institute for Regenerative Medicine (“CIRM”).

WHEREAS, Coriell was awarded the grant made by CIRM under its RFA 12‐04, pursuant to a Notice of Grant Award issued by CIRM to Coriell (the “NGA”).

WHEREAS, Coriell’s application under RFA 12-04 proposed that CDI perform certain services as a subcontractor to Coriell under Coriell’s Repository Agreement with CIRM (the “Repository Agreement”), as contemplated in such application in particular in CDI’s letter of support made a part of such application.

WHEREAS, the Parties desire to set forth the terms and conditions upon which CDI would provide services as a subcontractor to Coriell for the Repository Agreement.

NOW THEREFORE, in reliance on the mutual representations, warranties and agreements set forth herein, the Parties agree as follows:
		
	1.
	Definitions.  The following capitalized terms shall have the meanings assigned to them in this Section 1 when used in this Agreement. 

		
	a.
	Bankruptcy Event. The (i) making of a general assignment for the benefit of creditors by an entity; (ii) filing of any petition by an entity or the commencement of any proceeding voluntarily by an entity for any relief under any bankruptcy or insolvency laws or any law relating to the relief of debtors; (iii) consent by an entity to the entry of an order in an involuntary bankruptcy or insolvency case; (iv) entry of an order or decree for relief against an entity by a court of competent jurisdiction in an involuntary case under any bankruptcy or insolvency laws or any law relating to the relief of debtors, which order or decree is unstayed and in effect for a period of sixty (60) consecutive days; (v) appointment, with or without the consent of an entity, of any receiver, liquidator, custodian, assignee, trustee, sequestrator or other similar official of an entity or any substantial part of its property, which appointment is unstayed and in effect for a period of sixty (60) consecutive days; or (vi) admission by an entity in writing of its inability to pay its debts generally as they become due.

		
	b.
	Buck Institute.  The Buck Institute for Research on Aging.

		
	c.
	Buck Institute Premises.  The premises within the Buck Institute occupied by CDI under a License and Services Agreement with the Buck Institute, as amended.

		
	d.
	Confidential Information.  All information or materials of whatsoever type or kind provided (either directly or indirectly in writing or other tangible form or orally) by one Party (the "Disclosing Party") to another Party (the "Receiving Party") that: (i) in the case of written information or materials, is clearly marked and identified as "Confidential" by the Disclosing Party at the time of disclosure; (ii) in the case of information disclosed orally, is confirmed in writing to be Confidential Information within thirty (30) days following disclosure; (iii) is designated as Confidential Information under this Agreement including, without limitation, in the case of Coriell, the information and materials listed in Exhibit D attached hereto; or (iv) is by its nature and the circumstances surrounding its disclosure ought reasonably to be considered Confidential Information (information described in this clause (iv) shall include without limitation all information of a Party that becomes known to or received by the other Party by reason of the presence of or access by such Receiving Party to the premises occupied by or to the property used by such Disclosing Party in connection with this Agreement).  Specifically excepted from Confidential Information is all information that the Receiving Party can demonstrate by written records (1) to have been known by, or in the possession of, the Receiving Party prior to the Disclosing Party's disclosure of such Confidential Information to the Receiving Party; (2) has, after disclosure of such Confidential Information by the Disclosing Party to the Receiving Party, become known to the Receiving Party through a third party who is not known by the Receiving Party to be under any obligation of confidentiality to the Disclosing Party; (3) to have been part of the public domain or publicly known at the time of the Disclosing Party's disclosure of such Confidential Information to the Receiving Party; (4) has, after disclosure of such Confidential Information by the Disclosing Party to the Receiving Party, become part of the public domain or publicly known, by Publication or otherwise, not due to any unauthorized act or omission by the Receiving Party; or (5) to have been independently developed by the Receiving Party without use of, or reliance upon, such Confidential Information. 

		
	e.
	Coriell’s Application.  The application that Coriell submitted with respect to RFA 12-04 including CDI’s letter of support in connection therewith.

		
	f.
	Derivation Agreement.  The iPSC Derivation Agreement executed by CIRM and CDI in connection with CIRM’s RFA 12-03.

		
	g.
	Derived Line(s).  The induced pluripotent stem cell line(s) derived by CDI pursuant to the Derivation Agreement.

		
	h.
	DCB Acceptance Criteria.  The quality control criteria set forth in Schedule 2 to Exhibit A attached hereto applicable to each DCB created from a Derived Line or Third Party Line, as may be modified from time to time by Coriell, CDI and CIRM as set forth in a writing executed by both parties.  

		
	i.
	DCBs.  The distribution cell banks created from Third Party Lines and Derived Lines by CDI’s performance of the Services under this Agreement.  

		
	j.
	End User Agreement.  The materials transfer agreement entered into between Coriell and a third party receiving a DCB from the Repository as contemplated in Appendix B to RFAs 12-03.

		
	k.
	Non-Commercial Entity End User.  A non-profit entity that uses DCBs or Derived Lines for internal research purposes only and that does not transfer any of the cells comprising a DCB or a Derived Line to any for‐profit entity or any non‐profit entity acting in a capacity of providing a service for commercial gain.

		
	l.
	Repository.  The CIRM human pluripotent stem cell repository that will be established by Coriell under RFA 12-04.

		
	m.
	Term.  The stated term of this Agreement commencing on the Effective Date and continuing until its expiration on the [****] anniversary of the date on which the NGA first becomes effective, which stated term is subject to termination prior to its expiration in accordance with Section 14 and to extension for one or more successive one year periods as may be mutual agreed in writing by the Parties.

		
	n.
	Third Party Line(s).  The pluripotent stem cell lines provided by California researchers and delivered to CDI for expansion.

		
	o.
	Third Party Line Acceptance Criteria.  The specifications and requirements applicable to each Third Party Line as set forth in Schedule 1 to Exhibit A attached hereto, as may be modified from time to time by Coriell, CDI and CIRM as set forth in a writing executed by the parties.

		
	2.
	Incorporation by Reference.  Coriell’s Application including CDI’s letter of support in connection therewith and RFA 12-04 are incorporated herein by reference subject to the other provisions of this Section 2.  In the event of a conflict between this Agreement, CDI’s letter of support in connection with Coriell’s Application, the other provision of Coriell’s Application and RFA 12‐04, the order of precedence shall be this Agreement, CDI’s letter of support, the other provisions of Coriell’s Application and RFA 12-04.  CDI shall have an obligation and responsibility for any matter addressed in the provisions of Coriell’s Application or RFA 12‐04 only to the extent expressly provided in this Agreement or CDI’s letter of support.  

		
	3.
	Services.  

		
	a.
	During the Term and subject to and upon the conditions set forth in this Agreement, CDI will perform the Services as set forth in Exhibit A (the “Services”). 

		
	b.
	[****].  

		
	c.
	[****].  

		
	d.
	Coriell will hold, store and maintain the Third Party Lines in accordance with the Repository Agreement and shall make them available to CDI as necessary for CDI to perform the Services.  

		
	e.
	CDI shall deliver all Acceptable DCBs (defined below) created in performance of the Services to Coriell at the Repository for storage and distribution exclusively by Coriell as contemplated by this Agreement (giving effect to what is provided in Section 2) including without limitation Section 9.d.  

		
	f.
	CDI represents and warrants by delivering DCBs, at the time of such delivery, that such DCBs meet their applicable DCB Acceptance Criteria, and CDI shall deliver to Coriell with each such DCB a Certificate of Analysis (CofA) as described in Exhibit A the delivery of which CofA shall have the effect of confirming such representation and warranty.  A DCB meeting the DCB Acceptance Criteria shall be referred to herein as an “Acceptable DCB.”  “Acceptable DCBs” shall be included in the definition of “DCBs” under this Agreement. [****][1 page redacted]

		
	g.
	The Parties hereby acknowledge and agree that the Third Party Lines provided to CDI under this Agreement (A) may have hazardous properties and the collecting, processing, storing, handling, distribution and disposition of such Third Party Lines may involve risks or dangers that are not known or fully appreciated and (B) must be collected, processed, handled, distributed and disposed of with prudence and appropriate caution.  THE PARTIES FURTHER ACKNOWLEDGE AND AGREE THAT (A) EACH THIRD PARTY LINE IS PROVIDED "AS-IS" AND THAT NEITHER PARTY MAKES ANY REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, WITH RESPECT TO ANY THIRD PARTY LINES (EXCEPT AS EXPRESSLY SET FORTH HEREIN IN THE CASE OF THE THIRD PARTY LINES THAT CDI ACCEPTS AND WITH RESPECT TO WHICH IT DELIVERS DCBS CREATED THEREFROM TO CORIELL) OR CORIELL’S DELIVERY THEREOF; AND (B) THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY THIRD PARTY LINES OR CORIELL’S DELIVERY THEREOF.

		
	h.
	CDI agrees that the Third Party Lines, Derived Lines and DCBs (A) shall be used by CDI for the sole purpose of performing the Services under this Agreement and for no other purpose and (B) except as expressly required or permitted under this Agreement, shall not be disposed of or transferred by CDI to any third party without the prior, written consent of Coriell.  Except to the extent required to enable CDI to perform the Services, CDI hereby further agrees that it will not, directly or indirectly, reverse engineer, deconstruct, or in any way, analyze or determine the identity, structure or composition of any of the Third Party Lines, Derived Lines or DCBs or the properties thereof (chemical, biochemical, physical, biological or other). 

		
	i.
	CDI hereby assumes all risk of loss associated with: (A) any Third Party Line delivered to it by Coriell under this Agreement, and (B) any Derived Lines, or (C) any DCBs created from Third Party Lines or Derived Lines, prior to Coriell’s receipt from CDI thereof (except any loss caused by Coriell).  Notwithstanding the foregoing, Coriell hereby assumes all risk of loss associated with any Acceptable DCBs at the time of its acceptance of physical delivery of such Acceptable DCBs from CDI as provided in Section 3.f.

		
	j.
	In the event that either Party becomes aware of a loss of temperature control or other conditions in respect of any of the Third Party Lines, Derived Lines or DCBs that could adversely affect same, such Party shall immediately provide an electronic notice to the other Party setting forth (A) the applicable Third Party Lines, Derived Lines and DCBs and (B) the facts, circumstances and details of such issue.

		
	k.
	CDI shall within a commercially reasonable period of time notify Coriell if CDI determines that CDI will not be able to conduct and complete any of the Services required under this Agreement in a timely manner.  CDI will notify Coriell within [****] of occurrence any disruptions in CDI’s laboratory processes including but not limited to changes in personnel or equipment failure that would reasonably be expected to significantly delay delivery of DCBs as contemplated herein.  

		
	l.
	CDI shall, within [****] business days following the end of each quarter during the Term of this Agreement (i.e., each three-month period in the Term commencing with the month that includes the Effective Date rather than a calendar year quarter, a “Quarter”), deliver, via an electronic notice to Coriell in accordance with the terms of this Agreement, a report (each, a "Quarterly Services Report") in respect of the Services performed by CDI in accordance with this Agreement during such Quarter.  Each Quarterly Services Report (i) shall be submitted in the format requested by Coriell and (ii) shall contain (A) a cumulative list of the Third Party Lines, Derived Lines, and DCBs processed (identified by the unique identifier assigned to same), (B) a list of each defective Third Party Line (i.e., that CDI determined in the course of performing Services does not meet the Third Party Line Acceptance Criteria or that CDI determined in the course of performing the Services does not (or will not) meet the DCB Acceptance Criteria),  defective Derived Line (i.e., that CDI determined in the course of performing Services does not (or will not) meet the DCB Acceptance Criteria) (each identified by the unique identifier assigned to same), and DCB that does not meet its applicable Acceptance Criteria, (C) material developments and issues relating to the conduct of the Services, and (D) such other information (if any) as the Parties from time to time agree in writing should be included therein.  For avoidance of doubt, in no event shall CDI be required to give access to or disclose to Coriell or any of its Representatives any of CDI’s trade secrets.  

		
	m.
	If either Party becomes aware of any safety hazard that relates to any performance of the Services, such Party shall within a commercially reasonable period of time notify the other Party of such safety hazard by providing all information in its possession or control concerning such safety hazard to the other Party.  

		
	n.
	CDI shall keep complete and accurate records of all Services performed by it under this Agreement.  Such records (including all applicable laboratory notebooks containing data, information or notations relating to the Services) shall be available for inspection, examining or copying by or on behalf of Coriell or at Coriell’s expense, solely to the extent such records are:  (A) necessary for Coriell to comply with any compulsory request of, or audit by, CIRM or any governmental entity with jurisdiction, or (B) reasonably required for Coriell (subject to Section 12.c.) to defend against any complaint, claim or other action or proceeding of which Coriell is a party and which includes or constitutes any claim regarding the Services that is the basis for any alleged liability of Coriell pursuant to such complaint, claim or other action or proceeding, subject to what is provided below in this Section 3.n.  Such records and information therein shall be treated as Confidential Information that may be used solely for the purposes set forth above in this Section 3.n and that shall be disclosed only to those Coriell Representatives (as defined in Section 10) with a need to know such information for such purposes.  Such records and information therein shall be governed by Section 10 and may not be disclosed by Coriell and its Representatives except for the purposes set forth above.  CDI hereby agrees to retain all such records for a period of not less than seven (7) years from the date of termination of this Agreement.  Notwithstanding anything contained herein to the contrary, in no event shall CDI be required to give access to or disclose to Coriell or any of its Representatives any of CDI’s trade secrets absent a court order compelling such disclosure, and without limiting what is provided above regarding Section 10 but for avoidance of doubt may be disclosed only after compliance with the provision of Section 10 regarding legally compelled disclosures.  

		
	4.
	Title; Transfer to the Repository.  

		
	a.
	CDI acknowledges and agrees that CDI does not claim title to [****].

		
	b.
	CDI’s obligation to perform the Services with respect to an Acceptable DCB will be completed upon delivery by CDI to Coriell at the Repository of the frozen aliquots comprising such Acceptable DCB as provided in Exhibit A (i.e., initially [****] aliquots with subsequent delivery of remaining Retained Vials as contemplated in such exhibit), accompanied by a Certificate of Analysis.  [****].  [****] shall bear the cost of delivery of the Acceptable DCBs to Coriell at the Repository.  Notwithstanding any contrary provisions contained herein, [****].

		
	5.
	Service Fees.  

		
	a.
	During the Term, Coriell shall pay to CDI fees as compensation for the Services in the amounts set forth in Exhibit B (collectively, the “Service Fees”).  The Service Fees shall be payable following the end of each Quarter as set forth in this Section 5 and the attached Exhibit B.  As shown on Exhibit B, during the [****] Quarters, Coriell shall pay to CDI [****].

		
	b.
	Within a commercially reasonable period of time following the end of each Quarter following the [****] Quarters, CDI shall calculate the Service Fee payment as set forth herein (each, a "Quarterly Services Payment") to be made by Coriell in respect of the Services performed and completed by CDI in the conduct of this Agreement during such Quarter.  Each such Quarterly Services Payment shall be calculated [****] as of the date on which such Quarterly Services Payment is to be made as set forth in Exhibit B.  [****], Coriell shall pay to CDI the unit price calculated pursuant to the formula set forth in Exhibit B.  [****].  Coriell shall also pay to CDI within [****] following the end of each Quarter any agreed upon consideration for additional services hereunder as specified in, and except as may be expressly otherwise provided in, any written agreement regarding the same signed by both parties. 

		
	c.
	Each invoice delivered by CDI under this Agreement in respect of any Service Fees under this Agreement shall (A) be issued in U.S. Dollars, and (B) be accompanied by the applicable Quarterly Services Report.  [****].  

		
	d.
	Subject to the second sentence of Section 5.c. and Section 5.f, each payment required to be made by Coriell under this Agreement shall be due and payable by Coriell within [****] of the date Coriell receives payment from CIRM for: (i) the Quarter invoiced by CDI in the case of the fixed amount Service Fees contemplated in Section 5.a. and (ii) the Services provided and invoiced by CDI in the case of Service Fees contemplated in Section 5.b.  In the event of a bona fide, good faith dispute regarding the appropriateness of one or more items set forth in an invoice submitted by CDI in accordance with this Agreement, Coriell shall [****].  All payments made by Coriell under this Agreement and be paid by check in U.S. Dollars and remitted to CDI at the address so identified in this Agreement except that payment may be made by wire transfer upon request by CDI.  Any payments that are made more than [****] after the date when due, [****], shall bear an additional charge at the rate of [****] per month until paid, of the maximum rate allowed by applicable law, whichever is less. 

		
	e.
	Not more than [****], CDI will, at the request of Coriell, permit a single external accounting firm selected by Coriell and reasonably acceptable to CDI (the “Accountant”) to have access to CDI’s financial records and books of account related to the Services, during ordinary working hours and without unreasonable disruption to CDI’s business operations, only to the extent necessary in order to audit, with respect to any Quarter during the Term ending prior to such request, the correctness of any Quarterly Services Report or invoice delivered under this Agreement.  Should the Accountant reasonably believe there is an inaccuracy in any of CDI’s Quarterly Services Reports or invoices, the Accountant will have the right to make and retain copies (including photocopies) of any portions of the financial records and books of account pertinent to the determination of the accuracy of CDI’s Quarterly Services Reports and invoices.  In the event that an inaccurate invoice from CDI resulted in Coriell overpaying CDI for Services, CDI shall immediately refund the difference between the amount actually paid and the amount payable pursuant to this Agreement.  For avoidance of doubt, nothing in this Section 5.e. shall be construed to modify any of the amounts set forth herein as payable as Service Fees payable or the basis upon which such amounts are payable hereunder.  All information reviewed and or copied by the Accountant under this Section 5.e. shall be treated as Confidential Information that may be used solely for the purpose of verifying the correctness of CDI’s Quarterly Services Reports and invoices, and the disclosures of information under this Section 5.e. and the information so disclosed shall be governed by, and may not be disclosed by the Accountant except to the extent and as expressly permitted under, the obligations of confidentiality herein including Section 10, except to Coriell as may be necessary to enforce Coriell’s rights under the Agreement or at law in the event an incorrect invoice is identified.

		
	f.
	Notwithstanding any contrary provisions contained herein, [****].  

		
	6.
	Project Directors.  Each Party will designate a primary contact person with respect to the obligations to be performed by such Party provided under this Agreement (a “Project Director”).  The Parties’ respective initial Project Directors are stated in Exhibit A.  Unless the Parties otherwise agree, communications relating to this Agreement must be directed in the first instance by a Party to the other Party’s Project Director.  

		
	7.
	Access; Insurance.

		
	a.
	CDI will give Coriell reasonable access, during normal business hours, upon reasonable prior notice and so long as CDI’s business operations are not unreasonably disrupted, to the portion of the Buck Institute Premises from which CDI provides the Services and to the information, personnel, equipment and systems including, without limitation, the Subcontract-funded Equipment, used to provide the Services as necessary to permit Coriell to confirm that the Services are being performed as contemplated herein and that CDI is otherwise complying with the provisions of this Agreement.  

		
	b.
	Coriell will give CDI reasonable access, during normal business hours, so long as Coriell’s business operations are not unreasonably disrupted, to those portions of the premises at which the Repository is maintained or from which Coriell provides services to CIRM as necessary to permit CDI to perform the Services or services under the Derivation Agreement.

		
	c.
	Each Party agrees to obtain and maintain (i) commercial general liability insurance applicable to the Party’s activities and property at the Buck Institute and providing, on an occurrence basis, a minimum combined single limit of $[****] (umbrella or excess liability policies may be used to meet the required limit), (ii) workers’ compensation insurance in such amounts as is required by applicable statute and (iii) employers liability insurance with coverage of at least $[****] per occurrence.  In addition, CDI will obtain and maintain during the Term, at CDI’s sole expense (subject to what is provided in Section 8.c), property damage and insurance against loss or damage to the Subcontract‐funded Equipment due to fire, explosion, theft, vandalism, terrorism and such other risks of loss as are customarily maintained on equipment such as the Subcontract-funded Equipment intended for the uses contemplated hereby, in such amounts as shall be reasonably satisfactory to Coriell.  Any company writing a Party’s insurance shall have an A.M. Best or Standard and Poor’s rating of not less than A-VIII/A-.  The commercial general liability insurance policy shall cover the other Party as an additional insured.  The workers compensation insurance policy shall contain a waiver of subrogation in favor of the other Party. Each Party shall give the other Party at least [****] days’ advance written notice of any cancellation, termination, material change or lapse of insurance, which does not include routine annual renewals of policies without any changes or modifications thereto.  Each Party shall provide the other Party with a certificate of insurance or other commercially acceptable evidence of insurance evidencing such Party’s insurance required hereunder.  Each Party hereby waives and shall cause their respective insurance carriers to waive any and all rights of recovery, claims, actions or causes of action against the other for any loss or damage with respect to the Parties’ respective activities and properties, including rights, claims, actions and causes of action based on negligence, which loss or damage is (or would have been, had the insurance required by this Agreement been carried) covered by insurance, but only to the extent of any amount recovered by reason of such insurance, provided that such waiver of the right of subrogation shall not be operative in any case where the effect thereof is to invalidate such insurance coverage under applicable law.  

		
	8.
	Equipment.  This Section 8 is subject to [****].

		
	a.
	Coriell shall issue a purchase order for the purchase, at Coriell’s cost and expense for an aggregate price not to exceed $[****], for initial installation at the Buck Institute Premises not later than the [****], the items of equipment identified in Exhibit C [****] (the “[****]”) as well as all of the other the items of equipment identified in Exhibit C and listed under the subheading entitled [****](together with the [****], the “Subcontract‐funded Equipment”).  The foregoing purchase shall be made in accordance with the specifications therefor delivered by CDI to Coriell in accordance with this Agreement (and subject to the condition that CDI makes such delivery) and any applicable CIRM requirements.  Coriell shall pay the purchase price for the Subcontract‐funded Equipment according to the terms and conditions of purchase.  Coriell shall not accept from any manufacturer or supplier, or allow to lapse or waive any acceptance or inspection period or right with respect to, any Subcontract‐funded Equipment, without first notifying CDI and allowing it to exercise its rights under Section 8.e.

		
	b.
	Coriell shall hold title to the Subcontract‐funded Equipment.  Coriell shall maintain, and shall obtain and maintain, at its cost and expense, agreement(s) for third party maintenance of the Subcontract‐funded Equipment to provide the applicable manufacturers’ recommended preventive or periodic maintenance.  Any maintenance required beyond manufacturer recommended preventive or periodic maintenance, in order to maintain the Subcontract‐funded Equipment in good working order in the condition it was in when delivered to CDI, ordinary wear and tear excepted, shall be the sole obligation of CDI as and to the extent provided in Section 8.g.  In the event that Coriell fails to obtain or maintain any insurance or maintenance agreement(s) covering the Subcontract‐funded Equipment as contemplated herein, following [****] days’ advance written notice (or such shorter notice as is required under the terms upon which any such agreement(s) may be obtained or maintained) by CDI to Coriell, provided such agreement(s) are not entered into by Coriell during such [****] day period (or shorter period as contemplated above), CDI may obtain and enter into such agreement(s) at reasonable market rates and terms, and/or pay the amounts payable by Coriell thereunder at Coriell’s cost and expense and may forward or issue (for reimbursement to CDI) to Coriell an invoice for such cost and expense, which invoice Coriell shall pay promptly following its receipt thereof.

		
	c.
	CDI will be provided exclusive physical possession and use of the Subcontract‐funded Equipment during the Term for CDI’s use in providing the Services hereunder, and Coriell agrees that during the Term it shall not have or seek to have any possession, control or use of any of the Subcontract‐funded Equipment.  The Subcontract‐funded Equipment shall be located in the Buck Institute Premises or, if the Services are no longer being performed at the Buck Institute Premises, such other California location agreed to in advance in writing by Coriell (such consent to not be unreasonably conditioned, delayed or withheld), at which CDI then performs the Services hereunder  As additional consideration for its performance of the Services hereunder, CDI may use the Subcontract-funded Equipment for other purposes, provided that such use:  (x) does not prevent, hinder, or interfere with CDI’s performance of the Services hereunder or materially diminish (ordinary wear and tear excepted) the value of the Subcontract-funded Equipment; (y) is consistent with all manufacturer user guides, manuals and other requirements; and (z) is in compliance with any agreement between the Buck Institute, on the one hand, and CDI  (provided that in the case of (y) copies of any such requirements have been provided to CDI), as well as all laws, rules and regulations of every governmental authority applicable to CDI and the provisions of all policies of insurance carried by CDI as required by this Agreement.

		
	d.
	At the expiration or termination of the Term, and as additional consideration for CDI’s performance of the Services hereunder, CDI shall have the right and option, exercisable by notice to Coriell given not later than on the [****] day prior the expiration or termination of the Term, to purchase the [****] and any or all of the other Subcontract‐funded Equipment at a purchase price equal to the fair market value of such Equipment as reasonably determined by the Parties, less any and all costs and expenses of insurance or maintenance for or of the Subcontract‐funded Equipment owing to CDI but unpaid by Coriell in accordance with Section 8.b., as of the expiration or termination of the Term; provided, however, in the absence of a determination by the Parties of the fair market value of the [****] or any other item of Subcontract‐funded Equipment by the [****] day after CDI has given notice of its exercise of its option hereunder, then the purchase price of such item shall be [****].  Coriell shall, at its expense, keep the Subcontract-funded Equipment free and clear from any and all liens, pledges, security interests, encumbrances and other charges (collectively, “Encumbrances”).  If CDI exercises its option to purchase any of the Subcontract‐funded Equipment, then upon CDI’s payment in cash in full of the purchase price for such Subcontract‐funded Equipment, Coriell shall transfer to CDI all right, title and interest to the Subcontract‐funded Equipment, free and clear of all Encumbrances created by Coriell, and shall execute all such documentation to effectuate and evidence such transfer as CDI reasonably may request.  Coriell shall be responsible for all costs relating to obtaining and delivering such title to CDI.  The sale shall be on an “as is, where is, without warranty” basis (except as to title as set forth in the next preceding provision), and the parties shall execute such documentation as is reasonable and customary in connection with such sale including without limitation to transfer all manufacturer and supplier warranty rights (then not yet transferred to CDI) with respect to the Subcontract‐funded Equipment being purchased subject to any necessary manufacturer’s or supplier’s consent, which at the request of CDI the Parties shall cooperate to obtain.  

		
	e.
	CDI represents and acknowledges that the Subcontract-funded Equipment is of a size, design, capacity and manufacture selected by it, and that it is satisfied that the Subcontract‐funded Equipment is in those respects and of the type suitable for its purposes.  THE SUBCONTRACT-FUNDED EQUIPMENT IS PROVIDED AS IS, AND, NOT BEING THE MANUFACTURER OF THE EQUIPMENT OR THE MANUFACTURER’S AGENT, CORIELL MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, DESIGN OR CONDITION OF THE SUBCONTRACT-FUNDED EQUIPMENT.  CORIELL SHALL NOT BE RESPONSIBLE FOR ANY LOSS OR DAMAGE RESULTING FROM THE INSTALLATION, OPERATION OR OTHER USE, OR DEINSTALLATION OF THE SUBCONTRACT-FUNDED EQUIPMENT, INCLUDING ANY DIRECT, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOSS EXCEPT WITH RESPECT TO THE WILLFUL MISCONDUCT OF CORIELL.  Subject to Coriell’s obligations expressly set forth in this Agreement, CDI shall look solely to the manufacturer or the supplier of the Subcontract-Funded Equipment for correction of any problems that may arise with respect thereto, and all transferable manufacturer and supplier warranty rights are, to the extent such rights have been acquired by Coriell, hereby assigned, free and clear of all Encumbrances that would in any way interfere with or limit the exercise by or benefit to CDI of any such warranty rights and otherwise without representation or warranty by Coriell to CDI for the Term, which warranties CDI is authorized to enforce at CDI’s sole cost and expense.  Any non‐transferable warranty rights (including those for the transfer of which the manufacturer’s or supplier’s consent is required and has not been obtained for CDI’s benefit) shall be held, free and clear of Encumbrances that would in any way interfere with or limit the exercise by or benefit to CDI of any such warranty rights, and enforced, at CDI’s cost and expense, by Coriell for the benefit of and as requested by CDI during the Term.

		
	f.
	Except as permitted by Section 8.c., above, CDI shall use the Subcontract-funded Equipment solely in the conduct of its business in accordance with the provisions of this Agreement, in a manner and for the use contemplated by the manufacturer thereof, and in compliance with all laws, rules and regulations of every governmental authority having jurisdiction over the Subcontract-funded Equipment or CDI and with the provisions of all policies of insurance carried by CDI as required by this Agreement.

		
	g.
	CDI shall, at its expense, keep the Subcontract-funded Equipment free and clear from any and all Encumbrances and in good repair, condition and working order in order that such equipment is usable for CDI’s performance of the Services and as to each item of Unpurchased Equipment in the same condition and working order as when delivered to CDI as contemplated in Section 8.b., excepting (i) ordinary wear and tear and (ii) any failure of such equipment to be in such condition or working order attributable to [1] any failure of Coriell to secure a maintenance agreement for the as contemplated in Section 8.b., [2] any failure of Coriell to hold and enforce any non‐transferable warranty rights as contemplated in Section 8.e., [3] any failure of any manufacturer or third party to perform any warranty obligation sought to be enforced by Coriell or CDI, [4] any interference by Coriell with CDI’s exclusive physical possession and use of the Subcontract‐funded Equipment, or [5] any event of loss or damage to the extent covered by the property casualty insurance contemplated in Section 7.c. (the “Return Condition for Unpurchased Equipment”).

		
	h.
	CDI shall be solely responsible, at its own expense, for the de-installation, packing, rigging and delivery of the Subcontract‐funded Equipment to CDI in the event of its purchase thereof pursuant to the exercise of its option in Section 8.d.  Coriell shall be solely responsible, at its own expense, for the de-installation, packing, rigging and delivery to Coriell of each item of the Subcontract-funded Equipment with respect to which CDI declined to exercise its option (“Unpurchased Equipment”).  In the case of any item of Unpurchased Equipment having a fair market value  (as determined in accordance with Section 8.d) in excess of [****] Dollars ($[****]) at the expiration or termination of the Term, Coriell shall have such Unpurchased Equipment inspected and certified acceptable for maintenance service by the manufacturer or an authorized inspector of the manufacturer (to the extent such service is reasonably available for equipment of such type and age). [****].  

		
	i.
	Except with respect to the gross negligence or willful misconduct of Coriell, or Coriell’s failure to comply with an applicable provision of this Agreement, CDI hereby indemnifies, protects, defends and holds harmless Coriell from and against any and all claims and liabilities, demands, actions, suits, and proceedings, losses, costs, expenses, damages and fees, including reasonable attorneys’ fees and costs (including those arising from negligence, tort, strict liability or other legal theory) (collectively “Claims”), to the extent arising out of, or resulting from, CDI’s selection to perform the Services, operation or use of any of the Subcontract-funded Equipment, whether such Claims are brought or claimed before, during or after the Term.  Each of the Parties shall give the other prompt written notice of any Claim of which it becomes aware.  The last sentence of Section 12.a and the provisions of Section 12.c shall apply with respect to with any Claims as if such Claims were described in Section 12.a.

		
	j.
	CDI shall promptly notify Coriell in writing if, prior to CDI’s exercise of its option pursuant to Section 8.d above, or its return to Coriell of any Subcontract-funded Equipment not purchased by CDI, any item of Subcontract-funded Equipment becomes lost, stolen, damaged, destroyed or otherwise unfit or unavailable for use from any cause whatsoever (other than Coriell’s breach of this Agreement or its willful misconduct).

		
	k.
	Except in the case of Coriell and after the Term with respect to any Subcontract-funded Equipment not purchased by CDI as permitted by Section 8.d, without the prior written consent of the other Party, neither Party shall: (a) assign, transfer, or otherwise dispose of any Subcontract-funded Equipment, or any rights or obligations related thereto; (b) sublease any of the Subcontract-funded Equipment or permit the Subcontract-funded Equipment to be controlled by any other person; (c) create or incur, or permit to exist, any Encumbrance with respect to any of the Subcontract-funded Equipment and, in the case of Coriell, any Encumbrance with respect to any non‐transferable warranty rights with respect to any such equipment if such Encumbrance would in any way interfere with or limit the exercise by or benefit to CDI of any such warranty rights; or (d) cause or permit any of the Subcontract-funded Equipment to be moved from the Buck Institute Premises.

		
	l.
	CDI shall not make any additions, attachments, alterations or improvements to the Subcontract‐funded Equipment without the prior written consent of Coriell, which consent shall not to be unreasonably conditioned, delayed or withheld.  Any addition, attachment, alteration or improvement to any item of Subcontract‐funded Equipment shall belong to and be the property of CDI and CDI shall remove any addition, attachment, alteration or improvement to any item of Unpurchased Equipment prior to such required delivery of such item of Unpurchased Equipment by CDI.  CDI shall be responsible for all costs relating to such removal and shall restore such item of Unpurchased Equipment to the condition otherwise required hereunder.

		
	m.
	CDI acknowledges and represents that the Subcontract-funded Equipment shall be and remain personal property, notwithstanding the manner by which it may be attached or affixed to realty, and CDI shall do all acts and enter into all agreements necessary to ensure that the Subcontract-funded Equipment remains personal property.  If requested by Coriell with respect to any item of Subcontract-funded Equipment, CDI shall obtain and deliver to Coriell equipment access agreements, satisfactory to Coriell in its sole discretion, from all persons claiming any interest in the real property on which such item of Subcontract‐funded Equipment is installed or located.

		
	n.
	Each Party hereby represents to the other Party that, with respect to each item of Subcontract‐funded Equipment and any schedule, certificate evidencing acceptance of Subcontract-funded Equipment, assignment of purchase order, insurance letter, proposal letter, UCC financing statement, or other document now or hereafter executed by such Party in connection with this Agreement:  (a) the execution, delivery and performance thereof by such Party or its attorney-in-fact have been duly authorized by all necessary corporate action; (b) the person executing such documents is duly authorized to do so; and (c) such documents constitute legal, valid and binding obligations of such Party, enforceable in accordance with their terms.

		
	9.
	Ownership of Inventions; Licensing; Distribution from the Repository.  

		
	a.
	CDI represents and warrants that:  [****].

		
	b.
	CDI acknowledges that Coriell owns certain intellectual property covering the services Coriell will provide under Coriell’s Application and the NGA.  CDI agrees that it does not and will not acquire any rights in, to or under such intellectual property or any discovery, invention, enhancement, improvement, know-how or work of authorship, whether or not patentable or copyrightable or constituting a trade secret, conceived, created or made by Coriell in the course of performing such services, whether alone or jointly with a third party.

		
	c.
	In the event that, during the Term and in connection with this Agreement, Coriell and CDI jointly conceive, create or make any discovery, invention, enhancement, improvement, know how or work of authorship, whether or not patentable or copyrightable or constituting a trade secret, Coriell and CDI shall jointly own all intellectual property rights therein.  

		
	d.
	Coriell agrees that it will not allow any third party to gain access to any of the Acceptable DCBs in the Repository created from Derived Lines unless the party shall have executed the Standard Form hiPSC License from CDI and paid any required fees when and as due thereunder (which shall not be payable by non‐Commercial Entity End Users) and, following confirmation thereof, the party shall have executed an End User Agreement with Coriell and paid such fees when and as due thereunder.  During and after the Term, CDI shall be responsible for: (i) obtaining an executed Standard Form hiPSC License from each End User seeking to gain access to an Acceptable DCB, (ii) within [****] days of CDI’s receipt of an End User’s signed Standard Form hiPSC License, executing such license and delivering a copy to Coriell, and (iii) collecting the fee payable to CDI in connection therewith (which CDI shall determine subject to the approval of CIRM.  Coriell shall be responsible for (x) directing any proposed End Users to CDI so that they can execute the Standard Form hiPSC License and pay any required fees, (y) obtaining an executed End User Agreement from each such party, and  (z) collecting the fee payable to Coriell in connection therewith (which Coriell shall determine subject to the approval of CIRM).  

		
	e.
	CDI grants to Coriell [****] license to [****] intellectual property and proprietary rights that CDI has or may have in or in connection with [****]. 

		
	f.
	Neither Party shall issue any press release or other public statement regarding this Agreement including, but not limited to, the financial terms hereof, nor shall either party use the name, trademarks, logos, physical likeness or other symbol of the other Party (or their employees) for any marketing, advertising, public relations or other purposes without the prior written authorization of the other Party.  

		
	10.
	Confidentiality.  During the Term and thereafter for a period of [****] (except as to information qualifying as a trade secret, in which event the period shall be perpetual), each Party will (and will ensure that its accountants (including the Accountant), counsel, and employees; collectively, as to each Party, a “Representative”) keep confidential the Confidential Information it possesses relating to the other Party that it obtains in connection with this Agreement, and not use that information except as needed to perform its obligations hereunder or to receive and enjoy the benefits conferred upon it hereunder.  Each Party shall treat the Confidential Information of the Disclosing Party in the same manner, and with the same level of care (but, in no event, less than a reasonable level of care), as the Receiving Party would treat its own confidential or proprietary information.  Without limiting the generality of the foregoing, and except to the extent expressly permitted by the terms and conditions of this Agreement, no Receiving Party shall, without the prior written consent of the Disclosing Party, (A) disclose, reveal, report, publish or give the Confidential Information of the Disclosing Party to any third party except as required by law or regulation or legal process applicable to the Receiving Party subject to what is provided below in this Section 10 or (B) use the Confidential Information of the Disclosing Party for any purpose except as permitted hereby.  Except as expressly permitted by the terms and conditions of this Agreement, each Party hereby agrees to limit disclosure of the Disclosing Party's Confidential Information to those of its Representatives who (A) have a need to know such Confidential Information to enable such Receiving Party to perform its obligations, or exercise its rights, under this Agreement, (B) have entered into a written agreement which requires such Representatives to maintain similar, but no less burdensome, obligations of confidentiality and non-use to those contained in this Agreement and (C) have been advised of the confidential and proprietary nature of such Confidential Information and of their obligations with respect to such Confidential Information.  In the event that a Receiving Party is requested by any legal process to disclose any Confidential Information, the Receiving Party will promptly after such request notify the Disclosing Party to permit the Disclosing Party, at its expense, to seek to avoid or narrow any disclosure of Confidential Information that may be legally compelled to be disclosed and/or to seek a protective order or other reasonable assurance, satisfactory to the Disclosing Party, that confidential treatment will be accorded any Confidential Information that is legally compelled to be disclosed and will cooperate as reasonably requested by the Disclosing Party in such efforts by the Disclosing Party.  Each Receiving Party hereby further agrees (1) to direct its Representatives not to disclose the Confidential Information of the Disclosing Party to any person or entity except as expressly permitted under this Agreement and (2) that it shall be responsible for any breach by its Representatives of the obligations under this Agreement relating to Confidential Information of the Disclosing Party.

		
	11.
	Representations and Warranties.  

		
	a.
	CDI represents and warrants to Coriell that (i) CDI has the requisite corporate power and authority under all applicable laws including the laws of Wisconsin to enter into this Agreement and to consummate the transactions contemplated hereby; (ii) the execution and delivery by CDI of this Agreement has been duly and validly authorized by all necessary corporate action on the part of CDI; (iii) the person signing this Agreement on behalf of CDI is a duly appointed and incumbent officer of CDI and has the authority to execute and deliver this Agreement on behalf of CDI; (iv) this Agreement is binding on CDI and enforceable against it in accordance with this Agreement’s terms; (v) the Services will be performed in a professional manner and in compliance with all federal, state, local, international, health authority and institutional laws, rules, regulations, orders and guidelines applicable to CDI in doing so; (vi) the Services will be performed in accordance with the provisions of this Agreement (giving effect to what is provided in Section 2); (vii) the DCBs when delivered by CDI will meet the DCB Acceptance Criteria as applicable and any other deliverables hereunder will meet the applicable requirements expressly set forth herein or any other applicable agreement that may be agreed to by the Parties in writing; (viii) CDI has obtained all, and will obtain all, licenses, permits, consents and other approvals necessary for CDI to perform its obligations under this Agreement; (ix) CDI has not granted any right or entered into any agreement or understanding that conflicts with CDI's obligations, or Coriell's rights, under this Agreement; (x) CDI will not grant any right and will not enter into any agreement or understanding that conflicts with CDI's obligations or Coriell's rights under this Agreement; (xi) CDI owns or has the right to use pursuant to a valid and enforceable, written license, sublicense, agreement, or other permission, all presently issued and valid intellectual property and proprietary rights necessary and sufficient to perform the Services and the other obligations of CDI under this Agreement; and (xii) neither CDI’s performance of the Services or this Agreement or any DCBs will infringe upon, violate or misappropriate any presently issued and valid intellectual property or proprietary right of any third party.  

		
	b.
	Coriell represents and warrants to CDI that (i) Coriell has the requisite corporate power and authority under the laws of New Jersey to enter into this Agreement and to consummate the transactions contemplated hereby; (ii) the execution and delivery by Coriell of this Agreement has been duly and validly authorized by all necessary corporate action on the part of Coriell; (iii) the person signing this Agreement on behalf of Coriell is a duly appointed and incumbent officer of Coriell and has the authority to execute and deliver this Agreement on behalf of Coriell; and (iv) this Agreement is binding on Coriell and enforceable against it in accordance with this Agreement’s terms; (v) Coriell has obtained all, and will obtain all, licenses, permits, consents and other approvals necessary for Coriell to qualify to receive funding from CIRM and to perform its obligations under this Agreement; (vi) Coriell has not granted any right or entered into any agreement or understanding that conflicts with Coriell's obligations, or CDI's rights, under this Agreement; and (vii) Coriell will not grant any right and will not enter into any agreement or understanding that conflicts with Coriell's obligations or CDI's rights under this Agreement.

		
	12.
	Indemnification. 

		
	a.
	CDI shall defend, indemnify and hold harmless Coriell and CIRM and their respective directors, officers, employees, agents, advisers, representatives, successors and assigns (collectively, Coriell’s/CIRM’s “Related Persons”) against and from, and shall pay or reimburse them for, any third party claim, lawsuit, or demand (a “Third Party Claim”) and any loss, damage, liabilities, costs and/or expense (including reasonable attorney’s fees subject to Section 12.c) (“Losses”) to the extent such Third Party Claim alleges, and any other such Losses result from or arise out of any such Third Party Claim that alleges, any of the following (or, in the case of the following clause (i) and (ii), facts that constitute): [****].  

		
	b.
	Coriell shall defend, indemnify and hold harmless CDI and CIRM and their respective directors, officers, employees, agents, advisers, representatives, successors and assigns (collectively, CDI’s “Related Persons”) against and from, and shall pay or reimburse them for, any and all Third Party Claims and Losses to the extent any such Third Party Claim alleges, and any other such Losses result from or arise out of any such Third Party Claim that alleges, [****].

		
	c.
	As a condition of the indemnification set forth in this Section 12, (i) the party entitled to indemnification hereunder (the "Indemnified Party”) for itself and on behalf of any of its Related Persons who may seek indemnification from the party required to provide indemnification hereunder (the “Indemnifying Party”) hereunder shall promptly notify the Indemnifying Party of any Losses for which such Party or its Related Person seeks indemnification hereunder; (ii) the Indemnifying Party shall have the exclusive right to conduct and control the defense, with counsel selected by the Indemnifying Party in its reasonable discretion, of and to settle any third party claim, lawsuit or demand with respect to which the Indemnified Party or one of its Related Persons seeks indemnification hereunder unless the Indemnifying Party gives written notice to the Indemnified Party or Related Person expressly declining to undertake such defense in which event the Indemnified Party’s or Related Person’s reasonable attorney’s fees shall (and absent such notice shall not) constitute Losses, and (iii) the Indemnified Party or such of its Related Persons seeking indemnification hereunder shall cooperate with the Indemnifying Party and its counsel in investigating and/or defending against third party such claim, including by providing such documents and other information and permitting the Indemnifying Party’s employees to participate in discovery and court proceedings as witnesses or otherwise, as the Indemnifying Party or its counsel may from time to time request to assist it in investigating and/or defending against any such claim.  Notwithstanding what is provided above in this Section 12.c, no Indemnifying Party providing an indemnity hereunder shall enter into any settlement which requires the Indemnified Party to admit liability or pay any amounts (for which insurance proceeds or indemnification hereunder is not available), without the Indemnified Party’s prior written consent, not to be unreasonably conditioned, delayed, or withheld.

		
	13.
	Disclaimers; Limitation of Liability.  EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OR PROVIDES ANY REMEDY TO THE OTHER PARTY, AND ALL OTHER REPRESENTATIONS, WARRANTIES AND REMEDIES WHATSOEVER AND HOWEVER THEY MAY BE CLAIMED, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  EXCEPT FOR A PARTY’S INDEMNITY OBLIGATIONS, OR BREACH OF CONFIDENTIALITY OBLIGATIONS, HEREUNDER, ANY SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT, ARE HEREBY EXPRESSLY DISCLAIMED AND EXCLUDED.  NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, WITH THE EXCEPTION OF A PARTY’S INDEMNITY OBLIGATIONS, OR BREACH OF CONFIDENTIALITY OBLIGATIONS HEREUNDER, IN NO EVENT WILL LIABILITY OF CORIELL EXCEED THE AGGREGATE AMOUNT OF THE SERVICE FEES OR REIMBURSEMENTS PAYABLE BY IT TO CDI HEREUNDER OR WILL LIABILITY OF CDI WITH RESPECT HERETO EXCEED THE AGGREGATE AMOUNT OF THE SERVICE FEES RECEIVED BY OR PAYABLE TO CDI HEREUNDER.

		
	14.
	Termination.  This Agreement shall terminate at the expiration of the Term stated in Section 1 or its termination prior to such expiration in accordance with this Section 14.

		
	a.
	Termination by Coriell.  Coriell may terminate this Agreement and its Term prior to its expiration by giving notice (which may be effective immediately) to CDI:

		
	i.
	in the event of a material breach by CDI of this Agreement which breach remains uncured on the [****] day after CDI’s receipt of notice from Coriell specifying the nature of such breach unless as of such [****]  day CDI has cured such breach; or

		
	ii.
	in the event that CDI’s performance of its obligations is delayed or prevented by circumstance(s) or event(s) constituting force majeure as contemplated herein (other than Coriell’s failure to pay the Service Fees when due and payable), unless as of as of the [****] day after such circumstance or event first affects CDI it has resumed performance; or

		
	iii.
	in the event CDI becomes subject to a Bankruptcy Event; or

		
	iv.
	in the event Coriell’s agreement with CIRM with respect to the Repository is terminated, or CIRM ceases to provide funding to Coriell as required by such agreement or as necessary to fund the CDI Services contemplated by this Agreement.

		
	b.
	Termination by CDI.  Notwithstanding the Term stated in Section 1, CDI may terminate this Agreement and its Term prior to its expiration by giving notice (which may be effective immediately) to Coriell:

		
	i.
	in the event of the failure of Coriell to make any payment of Service Fees when due and payable hereunder which breach remains uncured on the [****] day after Coriell’s receipt of notice from CDI specifying such breach, it being understood that no payment of Service Fees shall be payable by Coriell to CDI unless or until payment for same has been made by CIRM to Coriell;

		
	ii.
	in the event that Coriell’s performance is or would be delayed or prevented by a circumstance or event constituting force majeure as contemplated herein, unless as of the [****] day after such circumstance or event first affects Coriell it has resumed performance;  

		
	iii.
	In the event Coriell becomes subject to a Bankruptcy Event; or

		
	iv.
	In the event Coriell’s agreement with CIRM with respect to the Repository is terminated, or CIRM ceases to provide funding to Coriell as required by such agreement or as necessary to fund the CDI Services contemplated by this Agreement.

		
	c.
	Certain Consequences.  Upon the termination of this Agreement including its termination prior to its stated Term and prior to the completion of the performance of the Services, neither Party shall have any liability or obligation to the other Party except as provided in this Section 14.c and except under the provisions hereof that as provided in Section 14.d. expressly survive termination.  The termination of this Agreement shall not extinguish or otherwise diminish or modify the rights of either Party to any Service Fees or payments which accrued hereunder prior to such termination or under this Section 14.c with respect to DCBs in process as of, or DCBs delivered following, termination as provided in the following provision.  Without limiting the preceding provision, following the termination of this Agreement, CDI shall deliver to Coriell all Acceptable DCBs existing (and not yet so delivered) as of termination [****].  CDI shall deliver an invoice to Coriell for all Services Fees and other amounts payable to it hereunder but not yet invoiced as of termination for Acceptable DCBs delivered or existing as of the termination of the Agreement and or otherwise which except in the case of termination pursuant to Section 14a.i. or 14a.v. shall include an amount for the costs and expenses of CDI incurred performing Services with respect to Third Party Lines and Derived Lines for which DCBs were in the process of being but had not yet been created as of termination; and promptly following its receipt of such invoice, Coriell shall pay CDI the invoiced amounts.

		
	d.
	Survival.  All representation and warranties contained in this Agreement, as well as Sections 2, 3.f (as to the representations and warranties for the period stated therein), 3.g, 3.h, 3.i, 3.n, 4, 5 (to the extent contemplated by Section 14.c), 7, 8.d, 8.e, 8.h, 8.i, 8.j, 8.k, 8.l, 8.m, 8.n, 9 through 13, 14.c, 14.d, and 15 shall survive the termination of this Agreement (whether at the expiration of the Term or its earlier termination) subject to any limitation on the period of such survival provided herein.

		
	15.
	Miscellaneous.

		
	a.
	Relationship of Parties.  CDI, in performing the Services, shall act as an independent contractor.  Nothing in this Agreement shall constitute either Party the legal representative, employee, agent or joint venturer, co‐partner, or the like of the other, of the other Party.  Each Party shall have no right or authority to, and shall not take any action purporting to, bind or represent in any respect the other Party.

		
	b.
	Force Majeure.  Each Party shall be excused of, and shall not be responsible for or in breach by reason of, any delay or failure in the performance of such Party’s obligations under this Agreement that is due to any circumstance or event beyond such Party’s control including but not limited for purposes hereof to Acts of God, earthquakes and other natural disasters, fire, explosion, riot and other civil disturbances, sabotage, terrorism, war, government acts, embargos, labor strikes and lock-outs, transportation delays, or the failure of performance of the other Party or any third parties or under any other agreements necessary for such Party’s performance under this Agreement including, without limitation, in the case of Coriell, any failure of CIRM to provide any funding contemplated by the NGA.  

		
	c.
	Equitable Relief.  The Parties acknowledge that damages would be an inadequate remedy for any breach of Section 3.n, 5.e (as to the use and disclosure of Confidential Information) 8, 9.d, or 10.  Therefore, each Party agrees that the respective obligations of the Parties under each of Section 8, 9.d., or 10 are specifically enforceable and that each Party shall be entitled, without the requirement of actual proof of damages and the requirement of posting a bond or other security, to an injunction, restraining order or other equitable relief from any court of competent jurisdiction, restraining the other Party from committing any breach of any such provision of this Agreement.

		
	d.
	Severability.  If any provision of this Agreement is held to be invalid or unenforceable and it cannot be amended to conform with applicable laws so as to be valid and enforceable, then such provision shall be stricken and the remainder of this Agreement shall remain in full force and effect to carry out intentions of the Parties as nearly as reasonably possible including so long as the economic or legal substance of the transactions contemplated hereby is not affected fundamentally and adversely to either Party.

		
	e.
	Governing Law.  This Agreement, and all questions arising in connection herewith, shall be construed, interpreted, determined and enforced in accordance with the internal laws of the State of California, U.S.A. without regard to the laws of any other jurisdiction that otherwise might govern under any applicable principle or rule of conflicts of law and without regard to rules of construction concerning the drafter hereof.

		
	f.
	Notices.  Each and every notice, agreement or other communication under this Agreement, even if not so expressly stated above, must be in writing in order to be effective and shall be considered to be given and received, in all respects (i) when personally delivered, (ii) when sent by facsimile transmission actually received by the receiving equipment (provided, that any such facsimile received on or after 5:00 p.m. local time of the receiving Party shall be considered received on the next business day), or (iii) on the second (2nd) business day after being sent by reputable, internationally recognized express or courier delivery service, delivery fees prepaid, addressed as follows, or to such other address as may be designated by notice duly given in accordance with this Section 15.f.):

		
	i.
	If to CDI:

Cellular Dynamics International, Inc.
525 Science Drive
Madison, Wisconsin 53711
Attn:  President
If via facsimile, to:  608-310-5101

with a copy to:

Cellular Dynamics International, Inc.
525 Science Drive
Madison, Wisconsin 53711
Attn:  General Counsel
If via facsimile, to:  608-310-5125
		
	ii.
	If to Coriell:

Coriell Institute for Medical Research
403 Haddon Avenue
Camden, NJ  08103
Attn:  Michael Christman, Ph.D.
If via facsimile, to: 856-964-0254

with a copy to:

Mark J. Sever, Jr.
Archer & Greiner, P.C.
One Centennial Square
Haddonfield, NJ  08033
If via facsimile, to:  856-795-0574
		
	g.
	Amendments; Waiver.  No amendment, waiver or other modification to or under this Agreement shall be valid unless set forth in a writing that makes specific reference to this Agreement and that is signed by the Party against whom enforcement of the amendment, waiver or other modification is being sought.

		
	h.
	Assignment; Binding Effect.  Neither this Agreement nor the rights or obligations hereunder of either Party may be assigned or delegated by a Party without the prior written consent of the other Party, not to be unreasonably conditioned, delayed or withheld.  Any purported assignment or delegation without any consent required hereunder shall be void and ineffective for all purposes.  This Agreement is binding on, and inures to the benefit of, the Parties and their respective successors and permitted assigns.  Except as is expressly otherwise provided herein, this Agreement is not intended to confer upon any person other than the Parties any rights or remedies.

		
	i.
	Entire Agreement.  This Agreement, including the exhibits and schedules attached hereto, constitutes the entire agreement of the Parties with regard to its subject matter and supersedes all previous written or oral representations, agreements and understandings between Coriell and CDI.  

		
	j.
	Counterparts.  This Agreement may be executed in counterparts, each of which will be treated as an original and all of which taken together constitute one instrument.

IN WITNESS WHEREOF, the Parties, having read and understood the foregoing and by their duly authorized representatives, have executed this Agreement intending to be bound hereby as of the Effective Date.

CELLULAR DYNAMICS INTERNATIONAL, INC.

By:  /s/ Thomas M. Palay 
Thomas M. Palay, President
Date: December 20, 2013

CORIELL INSTITUTE FOR MEDICAL RESEARCH

By /s/ Michael F. Christman
Print Name: Michael F. Christman
Print Title: President & CEO
Date: December 20, 2013

Exhibit A

Services; Project Directors

The “Services” shall consist of the following services to grow and expand Derived Lines and Third Party Lines:  (i) perform quality control and (ii) create DCBs from the Third Party Lines that meet the Third Party Line Acceptance Criteria and  from Derived Lines, which services are to be provided during the Term, as described in this Exhibit A:

		
	1.
	Services, generally.

		
	a.
	CDI will maintain the personnel, equipment and facilities to be capable to, and as described below will perform, the Services except for the manufacturer recommended preventive and periodic maintenance of the Coriell Equipment, which Coriell is responsible to maintain.  In performing the Services, CDI will use the same diligence and care as it uses in the performance of services for its own account.

		
	b.
	The Services will be performed by CDI primarily at the Buck Institute Premises, or if the License and Services Agreement between the Buck Institute and CDI under which it occupies the Buck Institute Premises terminates during the Term, such other location in California as Coriell approves in its sole discretion.

		
	2.
	Creation of DCBs; Services to grow and expand Derived Lines and Third Party Lines.

		
	a.
	DCBs.  CDI will create DCBs from the Derived Line(s) and from the Third Party Lines selected by CIRM and that CDI determines meet the Third Party Line Acceptance Criteria.  [****] individual frozen aliquots of each Derived Line and Third Party Line will be prepared in cryotubes vialed with approximately [****] cells per aliquot or tube and will comprise a DCB of such cell line.  Delivery by CDI of [****] individual frozen aliquots from each DCB created from Derived Lines will constitute delivery of such DCB, with CDI being entitled to retain [****] individual frozen aliquots of each DCB (the “Retained Vials”), provided that upon Coriell’s request as contemplated in Section 3.f., CDI shall deliver to Coriell whatever Retained Vials then are remaining after any work to provide any replacement DCBs to Coriell hereunder.  Provided that Derived Lines and Third Party Lines are available to permit CDI to do so, CDI will create a total DCB capacity of [****] expanded cell lines (this includes [****] from each of the [****] Derived Lines and up to [****] Third Party Lines).  

To be deemed to be available to CDI for expansion and creation of DCBs as contemplated in the preceding sentence, Derived Lines and Third Party Lines must be available, on average, in consistent quantities, at regular frequencies and sufficiently in advance; by way of example only and without limiting the foregoing, the Derived Lines and the Third Party Lines must be available to CDI no later than [****].  Each Third Party Line must meet the Third Party Line Acceptance Criteria and any additional requirements applicable thereto as agreed to by Coriell, CDI and CIRM.  
In addition, for a Third Party Line to be to be deemed to be available to CDI for expansion and creation of DCBs as contemplated above, the California researcher who provided such Third Party Line to the Repository also must have provided the agreement or consent of the legal and beneficial owner of such Third Party Line, expressly for the benefit of CDI and reasonably acceptable to CDI, to the transfer of such Third Party Line to the Repository, to the withdrawal from the Repository and use of such materials by CDI to perform the Services and create the DCBs, and to confirm ownership of the DCBs as provided in this Agreement.  
		
	b.
	Creation of DCBs.  All cell lines will be grown and expanded, as applicable, using the method established by CDI described in CDI SOP LG‐04.01 which is Addendum D to Part D of Coriell’s Application, or an equivalent CDI SOP as deemed suitable by CDI; the following description of Services is subject to and qualified in its entirety by such SOP).  [****].

		
	3.
	Quality Control Services.  Derived Lines and Third Party lines expanded by CDI and released by it as a DCB when delivered by CDI to Coriell must meet the DCB Acceptance Criteria, which are the quality control criteria set forth in Schedule 2 to this Exhibit A, or such other criteria as is mutually determined by CIRM and Coriell, as well as be delivered to Coriell with a CofA as provided in item 4 of this Exhibit A.  

		
	4.
	Certificate of Analysis.  An electronic version of each a Certificate of Analysis (“CofA”) will be made available to Coriell.

		
	5.
	Initial Project Directors.

		
	a.
	Coriell’s initial Project Director is Steven J. Madore, Ph.D.

		
	b.
	CDI’s initial Project Director is Thomas J. Novak, Ph.D.

Schedule 1 to Exhibit A

Third Party Line Acceptance Criteria

	
					
	Tissue/Cell Type
	Passage
	No. of Vials
	No. of Viable Cells per Vial
	Acceptance Criteria/Notes

	[****]
	[****]
	[****]
	[****]
	[****]

Schedule 2 to Exhibit A

QC Criteria

The following table describes the acceptance criteria for DCBs prepared from Derived Lines and Third Party Lines.  
	
				
	Test criteria
	Method
	DCB Acceptance Criteria
Derived Lines
	DCB Acceptance Criteria
Third Party Lines

	[****]
	[****]
	[****] 
	[****]

	[****]
	[****]
	[****] 
	[****]

	[****]
	[****]
	[****] 
	[****]

	[****]
	[****]
	[****] 
	[****]

	[****]
	[****]
	[****] 
	[****]

	[****]
	[****]
	[****] 
	[****]

Exhibit B

Service Fees

Fixed Payment for first [****] Quarters:  $[****] per Quarter

Fixed Payment for [****] Quarters:  $[****].

Quarterly Services Payment for each subsequent Quarter:

The product obtained by multiplying [****].

For such purposes, the “Unit Price” equals the quotient obtained by dividing $[****] by the net number equal to (i) [****] less (ii)(A) [****].  

Third Party Line Amount:  $[****] per Third Party Line

Exhibit C

Equipment

See attached.
	
			
	Quote #
	Catalog #
	Equipment

	Y-[****]
	[****]
	Vortex Genie 2

	 
	[****]
	Multichannel Pipette

	Y-[****]
	[****]
	[****] CO2 Analyzer

	Y-[****]
	see CDI quote
	[****] (2X, 10X, and 20X obj)

	Y-[****]
	 
	Metro Shelving

	 
	[****]
	(-) 20 Freezer

	Y-[****]
	[****]
	Water Bath

	Y-[****]
	[****]
	Centrifuge: ST8 benchtop

	Y-[****]
	[****]
	Roller Base for 3110 series

	 
	 
	Refrigerator

	Y-[****]
	[****]
	Water Bath Weights

	Y-[****]
	[****]
	Water Bath Weights

	Y-[****]
	[****]
	Water Bath Weights 500-2000mL

	Y-[****]
	[****]
	Timers

	Y-[****]
	[****]
	Repeater Xstream

	Y-[****]
	[****]
	Cordless Pipet

	Y-[****]
	[****]
	Starter Kit: 2 LTS

	Y-[****]
	[****]
	Starter Kit: 20, 200, 1000 LTS

	Y-[****]
	[****]
	Hepa Filter (free)

	Y-[****]
	[****]
	RS-485 Output FI Hazardous material

	Y-[****]
	[****]
	Copper Interior Ductwork

	Y-[****]
	[****]
	Biofit Chairs for lab

	Total Equipment under $[****]
	 
	 

	 
	 
	 

	 
	[****]
	[****] (rotor, etc. included)

	Y-[****]
	[****]
	(-) 80 Freezer

	 
	[****]
	Culture Hood (4 ft)

	Y-[****]
	[****]
	[****]refrigerated centrifuge & rotor

	Y-[****]
	[****]
	[****]

	Y-[****]
	 
	[****]

	Y-[****]
	[****]
	[****] (2 w/ controller)

	Y-[****]
	[****]
	[****]

	 
	 
	Vial labeling

	Y-[****]
	[****]
	Culture Hood (6 ft)

	Y-[****]
	[****]
	[****] Incubator

	Y-[****]
	see CDI quote
	[****] (with plate labeler)

	Total Equipment over $[****]
	 
	 

	
							
	Supplier
	Unit Price
	Banking Quantity
	Cost for Banking
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	*change to 4-20mA monitor

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	 
	 
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	[****]
	[****]
	[****]
	 $[****] 
	 
	 
	 

	 
	 
	 
	$[****]
	 
	 
	 

Exhibit D

Coriell Confidential Information

[none]

10633437.6

[****] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.Exhibit 4.1

 

AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP

 

OF

 

AMERICAN REALTY CAPITAL RETAIL OPERATING
PARTNERSHIP, L.P.

 

Dated as of January 14, 2014

 

    	 

    	 

    

 

TABLE OF
CONTENTS

 

	 	 	 	Page
	 	 	 	 
	Article 1 DEFINED TERMS	1
	 	 	 	 
	Article 2 ORGANIZATIONAL MATTERS	19
	 	2.1	Formation	19
	 	2.2	Name	20
	 	2.3	Registered Office and Agent; Principal Office	20
	 	2.4	Power of Attorney	20
	 	2.5	Term	22
	 	 	 	 
	Article 3 PURPOSE	22
	 	3.1	Purpose and Business	22
	 	3.2	Powers	22
	 	 	 	 
	Article 4 CAPITAL CONTRIBUTIONS	23
	 	4.1	Capital Contributions of the Partners	23
	 	4.2	Additional Funds; Restrictions on the General Partner	24
	 	4.3	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners	25
	 	4.4	Contribution of Proceeds of Issuance of Common Stock	26
	 	4.5	Repurchase of Common Stock; Shares-In-Trust	27
	 	4.6	No Third-Party Beneficiary	27
	 	4.7	No Interest; No Return	28
	 	4.8	No Preemptive Rights	28
	 	 	 	 
	Article 5 DISTRIBUTIONS	28
	 	5.1	Distributions	28
	 	5.2	Qualification as a REIT	33
	 	5.3	Withholding	33
	 	5.4	Additional Partnership Interests	33
	 	 	 	 
	Article 6 ALLOCATIONS	34
	 	6.1	Allocations	34
	 	6.2	Revisions to Allocations to Reflect Issuance of Partnership Interests	34
	 	 	 	 
	Article 7 MANAGEMENT AND OPERATIONS OF BUSINESS	34
	 	7.1	Management	34
	 	7.2	Certificate of Limited Partnership	39
	 	7.3	Reimbursement of the General Partner	39
	 	7.4	Outside Activities of the General Partner	40
	 	7.5	Contracts with Affiliates	40
	 	7.6	Indemnification	41
	 	7.7	Liability of the General Partner	43
	 	7.8	Other Matters Concerning the General Partner	44
	 	7.9	Title to Partnership Assets	45

 

    	i

    	 

    

 

	 	7.10	Reliance by Third Parties	46
	 	7.11	Loans By Third Parties	46
	 	 	 	 
	Article 8 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	47
	 	8.1	Limitation of Liability	47
	 	8.2	Management of Business	47
	 	8.3	Outside Activities of Limited Partners	47
	 	8.4	Return of Capital	48
	 	8.5	Rights of Limited Partners Relating to the Partnership	48
	 	8.6	Exchange Rights Agreements	48
	 	8.7	Conversion and Exchange of Special Limited Partner Interests	49
	 	 	 	 
	Article 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS	50
	 	9.1	Records and Accounting	50
	 	9.2	Fiscal Year	51
	 	9.3	Reports	51
	 	 	 	 
	Article 10 TAX MATTERS	51
	 	10.1	Preparation of Tax Returns	51
	 	10.2	Tax Elections	52
	 	10.3	Tax Matters Partner	53
	 	10.4	Organizational Expenses	54
	 	10.5	Withholding	54
	 	 	 	 
	Article 11 TRANSFERS AND WITHDRAWALS	56
	 	11.1	Transfer	56
	 	11.2	Transfer of the General Partner’s General Partner Interest	56
	 	11.3	Limited Partners’ Rights to Transfer	58
	 	11.4	Substituted Limited Partners	60
	 	11.5	Assignees	60
	 	11.6	General Provisions	61
	 	 	 	 
	Article 12 ADMISSION OF PARTNERS	63
	 	12.1	Admission of Successor General Partner	63
	 	12.2	Admission of Additional Limited Partners	64
	 	12.3	Amendment of Agreement and Certificate of Limited Partnership	64
	 	 	 	 
	Article 13 DISSOLUTION, LIQUIDATION AND TERMINATION	65
	 	13.1	Dissolution	65
	 	13.2	Winding Up	66
	 	13.3	Obligation to Contribute Deficit	67
	 	13.4	Rights of Limited Partners	68
	 	13.5	Notice of Dissolution	68
	 	13.6	Termination of Partnership and Cancellation of Certificate of Limited Partnership	68
	 	13.7	Reasonable Time for Winding-Up	68
	 	13.8	Waiver of Partition	68

 

    	ii

    	 

    

 

	Article 14 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	69
	 	14.1	Amendments	69
	 	14.2	Meetings of the Partners	70
	 	 	 	 
	Article 15 GENERAL PROVISIONS	71
	 	15.1	Addresses and Notice	71
	 	15.2	Titles and Captions	71
	 	15.3	Pronouns and Plurals	71
	 	15.4	Further Action	72
	 	15.5	Binding Effect	72
	 	15.6	Creditors	72
	 	15.7	Waiver	72
	 	15.8	Counterparts	72
	 	15.9	Applicable Law	72
	 	15.10	Invalidity of Provisions	72
	 	15.11	Entire Agreement	72
	 	15.12	Merger	73
	 	15.13	No Rights as Stockholders	73
	 	 	 	 
	Article 16 CLASS B UNITS	73
	 	16.1	Designation and Number	73
	 	16.2	Special Provisions	74
	 	Class B Units shall be subject to the following special provisions:	74
	 	16.3	Voting	75
	 	16.4	Conversion of Class B Units	76
	 	16.5	Profits Interests	78

 

EXHIBITS

 

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

 

    	iii

    	 

    

 

AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP

OF

AMERICAN REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P.

 

THIS AMENDED AND RESTATEDAGREEMENT OF LIMITED
PARTNERSHIP OF AMERICAN REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P. (this “Agreement”) dated as of January
14, 2014, is entered into among AMERICAN REALTY CAPITAL— RETAIL CENTERS OF AMERICA, INC., a Maryland corporation, as general
partner (the “General Partner”), and AMERICAN REALTY CAPITAL RETAIL ADVISOR, LLC, a Delaware limited liability
company, as Limited Partner (the “Initial Limited Partner”), and the Limited Partners party hereto from time
to time.

 

RECITALS

 

WHEREAS, American Realty Capital Retail
Operating Partnership, L.P. was formed as a limited partnership on July 29, 2010 pursuant to the Revised Uniform Limited Partnership
Act of the State of Delaware and a certificate of limited partnership was filed with the Secretary of State of the State of Delaware
(the “Certificate”).

 

WHEREAS, the General Partner and the Initial
Limited Partner entered into the Agreement of Limited Partnership of the Partnership, dated as of March 17, 2011, including any
amendments thereto through the date hereof (the “Original Agreement”).

 

WHEREAS, the General Partner and the Initial
Limited Partner wish to redesignate the Partnership Interests and Partnership Units issued pursuant to the Original Agreement.

 

WHEREAS, the General Partner and the Initial
Limited Partner have agreed to make certain amendments, including creating a new class B limited partnership interest in the Partnership,
and desire to amend and restate the Original Agreement.

 

NOW THEREFORE, in consideration of the mutual
covenants herein contained, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties do hereby agree that the Original Agreement hereby is amended and restated in its entirety to read as follows:

 

Article
1

DEFINED TERMS

 

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

 

“Acquisition Expenses”
means any and all expenses, exclusive of Acquisition Fees, incurred by the General Partner, the Partnership, the Advisor or any
of their Affiliates (as such term is defined in the Advisory Agreement) in connection with the selection, evaluation, acquisition,
origination, making or development of any Real Estate Assets, whether or not acquired, including legal fees and expenses, travel
and communications expenses, brokerage 

 

    	 

    	 

    

 

fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting
fees and expenses, title insurance premiums and the costs of performing due diligence.

 

“Acquisition Fee”
means the fee payable to the Advisor or its assignees pursuant to Section 8.1 of the Advisory Agreement.

 

“Act” means the
Delaware Revised Uniform Limited Partnership Act, as amended from time to time, and any successor to such statute.

 

“Additional Limited Partner”
means a Person that has executed and delivered an additional limited partner signature page in the form attached hereto, has been
admitted to the Partnership as a Limited Partner pursuant to Section 4.3 hereof and that is shown as such on the books and records
of the Partnership.

 

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

 

(a)          credit
to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to restore to the Partnership
pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Regulations, or (ii) is deemed to be obligated to restore to
the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations; and

 

(b)          debit
to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations.

 

“Adjustment Event”
has the meaning set forth in Section 16.1(b).

 

“Advisor” means
the Initial Limited Partner, its successors and assignees.

 

“Advisory Agreement”
means the Second Amended and Restated Advisory Agreement dated as of January 14, 2014, between the General Partner, the Partnership,
and the Advisor, as the same may be amended, supplemented or restated from time to time.

 

“Advisory Agreement Termination
Date” means the date of termination of the Advisory Agreement.

 

“Affected Gain”
has the meaning set forth in paragraph 4(b) of Exhibit B.

 

“Affiliate” means,

 

(a)          with
respect to any individual Person, any member of the Immediate Family of such Person or a trust established for the benefit of such
member, or

 

(b)          with
respect to any Entity, any Person which, directly or indirectly through one or more intermediaries, controls, is controlled by,
or is under common control with, any such Entity. For purposes of this definition, “control,” when used with respect
to any 

 

    	2

    	 

    

  

Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Agreement” means
this Amended and Restated Agreement of Limited Partnership, as originally executed and as amended, supplemented or restated from
time to time, as the context requires.

 

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

 

“Assignee” means
a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who has not
become a Substituted Limited Partner, and who has the rights set forth in Section 11.5.

 

“Available Cash”
means, with respect to the applicable period of measurement (i.e., any period (other than the first period in which this calculation
of Available Cash is being made) beginning on the first day of the fiscal year, quarter or other period commencing immediately
after the last day of the fiscal year, quarter or other applicable period for purposes of the prior calculation of Available Cash
for or with respect to which a distribution has been made, and ending on the last day of the fiscal year, quarter or other applicable
period immediately preceding the date of the calculation), the excess, if any, as of such date, of

 

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

 

(i)          all
rents, revenues, income and proceeds derived by the Partnership from its operations, including distributions received by the Partnership
from any Entity in which the Partnership has an interest;

 

(ii)         all
proceeds and revenues received by the Partnership on account of any sales of any Partnership property or as a refinancing of or
payment of principal, interest, costs, fees, penalties or otherwise on account of any borrowings or loans made by the Partnership
or financings or refinancings of any property of the Partnership;

 

(iii)        the
amount of any insurance proceeds and condemnation awards received by the Partnership;

 

(iv)        all
capital contributions and loans received by the Partnership from its Partners;

 

(v)         all
cash amounts previously reserved by the Partnership, to the extent such amounts are no longer needed for the specific purposes
for which such amounts were reserved; and

 

    	3

    	 

    

  

(vi)        the
proceeds of liquidation of the Partnership’s property in accordance with this Agreement;

 

over

 

(b)          the
sum of the following:

 

(i)          all
operating costs and expenses, including taxes and other expenses of the properties directly and indirectly held by the Partnership
and capital expenditures made during such period (without deduction, however, for any capital expenditures, charges for Depreciation
or other expenses not paid in cash or expenditures from reserves described in clause (viii) below);

 

(ii)         all
costs and expenses expended or paid during such period in connection with the sale or other disposition, or financing or refinancing,
of the property directly or indirectly held by the Partnership or the recovery of insurance or condemnation proceeds;

 

(iii)        all
fees provided for under this Agreement;

 

(iv)        all
debt service, including principal and interest, paid during such period on all indebtedness (including under any line of credit)
of the Partnership;

 

(v)         all
capital contributions, advances, reimbursements, loans or similar payments made to any Person in which the Partnership has an interest;

 

(vi)        all
loans made by the Partnership in accordance with the terms of this Agreement;

 

(vii)       all
reimbursements to the General Partner or its Affiliates during such period; and

 

(viii)      the
amount of any new reserve or reserves or increase in reserves established during such period which the General Partner determines
is necessary or appropriate in its sole and absolute discretion.

 

Notwithstanding the foregoing, Available Cash shall not include
any cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement
of the dissolution and liquidation of the Partnership.

 

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

 

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

 

“Capital Account”
means with respect to any Partner, the Capital Account maintained for such Partner in accordance with the following provisions:

 

    	4

    	 

    

  

(a)          to
each Partner’s Capital Account there shall be credited

 

(i)          such
Partner’s Capital Contributions;

 

(ii)         such
Partner’s distributive share of Net Income, Net Property Gain and any items in the nature of income or gain which are specially
allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B and

 

(iii)        the
amount of any Partnership liabilities assumed by such Partner or which are secured by any asset distributed to such Partner;

 

(b)          to
each Partner’s Capital Account there shall be debited

 

(i)          the
amount of cash and the Gross Asset Value of any property distributed to such Partner pursuant to any provision of this Agreement,

 

(ii)         such
Partner’s distributive share of Net Losses, Net Property Loss and any items in the nature of expenses or losses which are
specially allocated to such Partner pursuant to paragraphs 1 and 2 of Exhibit B and

 

(iii)        the
amount of any liabilities of such Partner assumed by the Partnership or which are secured by any asset contributed by such Partner
to the Partnership; and

 

(c)          if
all or a portion of a Partnership Interest is transferred in accordance with the terms of this Agreement, the transferee shall
succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest.

 

The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with Sections 1.704-1(b) and 1.704-2 of the Regulations,
and shall be interpreted and applied in a manner consistent with such Regulations. If the General Partner shall reasonably determine
that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including debits or credits
relating to liabilities which are secured by contributed or distributed assets or which are assumed by the Partnership, the General
Partner or any Limited Partner) are computed in order to comply with such Regulations, the General Partner may make such modification;
provided, that, all allocations of Partnership income, gain, loss and deduction continue to have

“substantial economic effect” within the meaning of Section 704(b) of the Code and that no Limited Partner is materially
adversely affected by any such modification.

 

“Capital Contribution”
means, with respect to any Partner, any cash, cash equivalents or the Gross Asset Value of property (net of any liabilities secured
by contributed property that the Partnership is considered to assume or take subject to under Section 752 of the Code) which such
Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof.

 

“Capital Transaction”
means any sale, or other disposition (other than a deemed disposition pursuant to Section 708(b)(1)(B) of the Code and the Regulations
thereunder) of all or substantially all of the assets and properties of the Partnership or a related series of 

 

    	5

    	 

    

  

transactions that,
taken together, result in the sale or other disposition of all or substantially all of the assets and properties of the Partnership.

 

“Cash Amount”
means an amount of cash per Partnership Unit equal to the value of one share of Common Stock as determined under the applicable
Exchange Rights Agreement on the Valuation Date of the Common Stock Amount.

 

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

 

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

 

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

 

“Class B Priority Return”
means a 7.0% cumulative, non-compounded, pre-tax annual return (based on a 365-day year).

 

“Class B Unit”
means a Partnership Unit which is designated as a Class B Unit of the Partnership.

 

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

 

“Common Stock”
means the common stock of the General Partner, $.01 par value per share. Common Stock may be issued in one or more classes or series
in accordance with the terms of the Articles of Incorporation. If, at any time, there is more than one class or series of Common
Stock, the term “Common Stock” shall, as the context requires, be deemed to refer to the class or series of Common
Stock that correspond to the class or series of Partnership Interests for which the reference to Common Stock is made.

 

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

 

“Consent” means
the consent or approval of a proposed action by a Partner given in accordance with Section 14.2 hereof.

 

“Consent of the Limited Partners”
means the Consent of Limited Partners (excluding for this purpose any Partnership Interests held by the General Partner, any other
Person of which the General Partner owns or controls more than fifty percent (50%) of the voting interests and any Person directly
or indirectly owning or controlling more than fifty percent (50%) of the 

 

    	6

    	 

    

 

outstanding voting interests of the General Partner) holding
Percentage Interests that are greater than fifty percent (50%) of the aggregate Percentage Interests of all Limited Partners who
are not excluded for the purposes hereof.

  

“Constituent Person”
has the meaning set forth in Section 16.4(d) hereof.

 

“Contributed Property”
means each property, partnership interest, contract right or other asset, in such form as may be permitted by the Act, contributed
or deemed contributed to the Partnership by any Partner, including any interest in any successor partnership occurring as a result
of a termination of the Partnership pursuant to Section 708 of Code.

 

“Conversion Date”
has the meaning set forth in Section 16.4(a) hereof.

 

“Cost of Assets”
means, with respect to a Real Estate Asset, the purchase price, Acquisition Expenses, capital expenditures and other customarily
capitalized costs, but shall exclude Acquisition Fees associated with such Real Estate Asset.

 

“Debt” means,
as to any Person, as of any date of determination and without duplication, (a) all indebtedness of such Person for borrowed money
or for the deferred purchase price of property or services; (b) all amounts owed by such Person to banks or other Persons
in respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment
or other performance of obligations by such Person; (c) all indebtedness for borrowed money or for the deferred purchase price
of property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person’s
interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (d) obligations
of such Person incurred in connection with entering into a lease which, in accordance with generally accepted accounting principles,
should be capitalized.

 

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

 

“Distribution Date”
has the meaning set forth in Section 5.1(a).

 

“Economic Hurdle”
has the meaning set forth in Section 16.2(a)(ii)(A).

 

    	7

    	 

    

  

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

 

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

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding provisions of succeeding
laws).

 

“Excess Oversight Fee”
has the meaning set forth in Section 16.1(a)(i).

 

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

 

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

 

“Exchange Rights Agreements”
has the meaning set forth in Section 8.6.

 

“General Partner”
means American Realty Capital – Retail Centers of America, Inc., a Maryland corporation, and any successor as general partner
of the Partnership.

 

“General Partner Interest”
means a Partnership Interest held by the General Partner, in its capacity as general partner. A General Partner Interest may be
expressed as a number of GP Units.

 

“GP Unit” means
a Partnership Unit which is designated as a GP Unit of the Partnership.

 

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

 

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

 

    	8

    	 

    

  

(b)          if
the General Partner determines that an adjustment is necessary or appropriate to reflect the relative economic interests of the
Partners, the Gross Asset Values of all Partnership assets shall be adjusted in accordance with Sections 1.704-1(b)(2)(iv)(f) and
(g) of the Regulations to equal their respective gross fair market values, without reduction for liabilities, as reasonably determined
by the General Partner, as of the following times:

 

(i)          a
Capital Contribution (other than a de minimis Capital Contribution) to the Partnership by a new or existing Partner as consideration
for a Partnership Interest;

 

(ii)         the
distribution by the Partnership to a Partner of more than a de minimis amount of Partnership assets as consideration for
the repurchase of a Partnership Interest;

 

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

 

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

 

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

 

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

 

At all times, Gross Asset Values shall be adjusted by any Depreciation
taken into account with respect to the Partnership’s assets for purposes of computing Net Income and Net Loss.

 

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

 

    	9

    	 

    

 

the full amount of the offering price per share of Common Stock pursuant to the Registration Statement
for such Offering without reduction.

  

“Incapacity” or
“Incapacitated” means,

 

(a)          as
to any individual who is a Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating
him incompetent to manage his person or his estate;

 

(b)          as
to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the
revocation of its charter;

 

(c)          as
to any partnership which is a Partner, the dissolution and commencement of winding up of the partnership;

 

(d)          as
to any limited liability company which is a Partner, the dissolution and commencement of winding up of the limited liability company;

 

(e)          as
to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership;

 

(f)           as
to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee); or

 

(g)          as
to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when

 

(i)          the
Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or
other similar law now or hereafter in effect;

 

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

 

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

 

(iv)        the
Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against
the Partner in any proceeding of the nature described in clause (ii) above;

 

(v)         the
Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or
any substantial part of the Partner’s properties;

 

(vi)        any
proceeding seeking liquidation, reorganization or other relief of or against such Partner under any bankruptcy, insolvency or other
similar law 

 

    	10

    	 

    

  

now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof;

 

(vii)       the
appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or stayed
within ninety (90) days of such appointment; or

 

(viii)      an
appointment referred to in clause (vii) which has been stayed is not vacated within ninety (90) days after the expiration of any
such stay.

 

“Include”, “includes
and “including” shall be construed as if followed by the phrase “without limitation”.

 

“Included Assets”
means the Investments owned as of the Termination Date or the Investment Liquidity Date, as applicable, and any Investments acquired
after the Termination Date or the Investment Liquidity Date, as applicable, for which a contract to acquire such Investment had
been entered into by or on behalf of the General Partner as of the Termination Date or the Investment Liquidity Date, as applicable.

 

“Indemnitee” means

 

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

 

(i)          its
status as the General Partner,

 

(ii)         its
status as a Limited Partner,

 

(iii)        its
status as the Service Provider,

 

(iv)        its
status as an investment advisor to the General Partner,

 

(v)         its
status as a trustee, director or officer of the Partnership, the General Partner, or the investment advisor to the General Partner,
or

 

(vi)        its
status as a director, trustee, member or officer of any other Entity, each Person serving in such capacity at the request of the
Partnership or the General Partner, or

 

(vii)       his
or its liabilities, pursuant to a loan guarantee or otherwise, for any indebtedness of the Partnership or any Subsidiary of the
Partnership (including any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken assets
subject to); and

 

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

 

    	11

    	 

    

  

“Initial Limited Partner”
means American Realty Capital Retail Advisor, LLC.

 

“Investment” or
“Investments” means any investment or investments by the Partnership, directly or indirectly, in Properties,
Loans or other Permitted Investments.

 

“Investment Liquidity Amount”
has the meaning set forth in Section 5.1(e).

 

“Investment Liquidity Date”
means the date on which an Investment Liquidity Event is consummated.

 

“Investment Liquidity Event”
means a liquidation or the sale of all or substantially all the Investments (regardless of the form in which such sale shall occur,
including through a merger or sale of stock or other interests in an entity, and regardless of whether such transaction is taxable
or tax-free). For the avoidance of doubt, an Investment Liquidity Event includes a Business Combination and a Transaction (including
a merger in which the General Partner is the surviving entity).

 

“Investment Liquidity Value”
has the meaning set forth in Section 5.1(e).

 

“IRS” means the
Internal Revenue Service of the United States (or any successor organization).

 

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

 

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

 

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

 

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

 

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

 

“Liquidating Gain”
means net capital gain realized in connection with an actual or hypothetical Capital Transaction, including the amount of any adjustment
of the Gross Asset 

 

    	12

    	 

    

 

Value of any Real Estate Asset which requires that the Capital Accounts of the Partners be adjusted pursuant
to Sections 1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations.

  

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

 

“Liquidity Event”
means the first to occur of the following: (i) an OP Unit Transaction, (ii) a Listing, or (iii) a Termination Without Cause.

 

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

 

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

 

“Loans” means
mortgage loans and other types of debt financing investments made by the Partnership, either directly or indirectly, including
through ownership interests in a joint venture or other entity and including mezzanine loans, B-notes, bridge loans, convertible
mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans.

 

“Market Value”
means the value calculated based on the average market value of the shares of Common Stock issued and outstanding at Listing over
the 30 days beginning 180 days after the shares of Common Stock are first listed or included for quotation.

 

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

 

(a)          by
including as an item of gross income any tax-exempt income received by the Partnership and not otherwise taken into account in
computing Net Income or Net Loss;

 

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

 

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

 

    	13

    	 

    

  

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

 

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

 

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

 

(g)          by
not taking into account in computing Net Income or Net Loss items separately allocated to the Partners pursuant to paragraphs 2
and 3 of Exhibit B.

 

“Net Investment”
means (i) as it relates to the Stockholders, the total amount of Gross Proceeds raised in all Offerings; and (ii) as it relates
to the Limited Partners (other than the General Partner in its capacity as a Limited Partner) the total amount of Capital Contributions

 

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

 

“Net Property Gain”
or “Net Property Loss” means, for each fiscal year or other applicable period, an amount equal to the
Partnership’s taxable gain or loss for such year or period from Sales, including the amount of any adjustment of the Gross
Asset Value of any Real Estate Asset which requires that the Capital Accounts of the Partners be adjusted pursuant to Sections
1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations. For these purposes, the Gross Asset Value of the Real Estate Assets shall
reflect the market capitalization of the General Partner (increased by the amount of any Partnership liabilities).

 

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

 

“Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(b)(1) and 1.704-2(c) of the Regulations.

 

“Nonrecourse Liabilities”
has the meaning set forth in Section 1.704-2(b)(3) of the Regulations.

 

“Note” means a
non-interest bearing promissory note which shall be repaid from the Net Sales Proceeds of each sale of an Investment that occurs
after the date of Listing or the Termination Date, as applicable. The Partnership shall be the sole obligor with respect to any
Note, and may pay at its discretion all or a portion of such Note in shares of Common Stock, 

 

    	14

    	 

    

 

which may or may not be registered
under the Securities Act of 1933, as amended, or cash. Any Note shall not represent an indebtedness of the Partnership, but rather
shall be evidence of a distribution obligation of the Partnership to the Special Limited Partner pursuant to the terms of Section
5.1.

 

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

 

“Offering” means
the public offering of shares of Common Stock pursuant to the Registration Statement on Form S-11.

 

“OP Unit” means
a Partnership Unit which is designated as an OP Unit of the Partnership.

 

“OP Unit Economic Balance”
has the meaning set forth in subparagraph 1(c)(ii) of Exhibit B.

 

“OP Unit Transaction”
means, in connection with a Class B Unit, a transaction to which the Partnership or the General Partner shall be a party, including
a merger, consolidation, unit exchange, self-tender offer for all or substantially all OP Units or other business combination or
reorganization, or sale of all or substantially all of the Partnership’s assets (but excluding any transaction which constitutes
an Adjustment Event and any merger in which the General Partner is the surviving entity) in each case as a result of which OP Units
shall be exchanged for or converted into the right, or the holders of such Units shall otherwise be entitled, to receive cash,
securities or other property or any combination thereof.

 

“Organization and Offering Expenses”
means all expenses incurred by or on behalf of the General Partner in connection with or in preparing the General Partner for registration
of and subsequently offering and distributing its shares of Common Stock to the public, whether incurred before, on or after the
date of the Advisory Agreement, which may include total underwriting and brokerage discounts and commissions (including fees of
the underwriters’ attorneys); any expense allowance granted by the General Partner to the underwriter or any reimbursement
of expenses of the underwriter by the General Partner; expenses for printing, engraving and mailing; compensation of employees
while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; and
expenses of qualification of the sale of the securities under federal and state laws, including taxes and fees, accountants’
and attorneys’ fees.

 

“Original Agreement”
has the meaning set forth in the Recitals.

 

“Oversight Fee”
has the meaning ascribed to it in the Advisory Agreement.

 

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

 

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

 

    	15

    	 

    

  

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

 

“Partner Nonrecourse Deductions”
has the meaning set forth in Sections 1.704-2(i)(1) and (2) of the Regulations, and the amount of Partner Nonrecourse Deductions
with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Section
1.704-2(i)(2) of the Regulations.

 

“Partnership”
means the limited partnership formed under the Act and pursuant to this Agreement, and any successor thereto.

 

“Partnership Interest”
means an ownership interest in the Partnership representing a Capital Contribution by either a Limited Partner or the General Partner
or the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity, or by
a new Partner acting in a partner capacity or in anticipation of becoming a Partner, and includes any and all benefits to which
the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such
Person to comply with the terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership
Units.

 

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

 

“Partnership Record Date”
means the record date established by the General Partner for a distribution pursuant to Section 5.1(a) hereof, which record date
shall be the same as the record date established by the General Partner for a distribution to its stockholders of some or all of
its portion of such distribution.

 

“Partnership Unit”
means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder. Partnership Units consist of
GP Units, OP Units, Class B Units and any classes or series of Partnership Units established after the date hereof. The number
of Partnership Units outstanding and the Percentage Interests in the Partnership represented by such Partnership Units are set
forth in Exhibit A, as such Exhibit may be amended from time to time. The ownership of Partnership Units shall be evidenced by
such form of certificate for Partnership Units as the General Partner adopts from time to time unless the General Partner determines
that the Partnership Units shall be uncertificated securities.

 

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

 

“Percentage Interest”
means, as to a Partner, the fractional part of the Partnership Interests owned by such Partner and expressed as a percentage as
specified in Exhibit A, as such Exhibit may be amended from time to time.

 

    	16

    	 

    

 

“Permitted Investments”
means all investments (other than Properties and Loans) in which the Partnership acquires an interest, either directly or indirectly,
including through ownership interests in a joint venture or other entity, pursuant to the Certificate, this Agreement and the investment
objectives and policies adopted by the General Partner from time to time, other than short-term investments acquired for purposes
of cash management, and that allow the General Partner to meet the REIT Requirements.

 

“Permitted Transferee”
means any person to whom Partnership Units are Transferred in accordance with Section 11.3.

 

“Person” means
an individual or Entity.

 

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

 

“Priority Return”
means a 7% cumulative, non-compounded, pre-tax annual return (based on a 365-day year).

 

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

 

“Property” or
“Properties” means any real property or properties transferred or conveyed to the Partnership or any
subsidiary of the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to
a joint venture or partnership in which the Partnership is, directly or indirectly, a co-venturer or partner.

 

“PTP Safe Harbors”
has the meaning set forth in Section 11.6(f).

 

“Quarter” means
each of the three-month periods ending on March 31, June 30, September 30 and December 31.

 

“Real Estate Assets”
means any investment by the Partnership in unimproved and improved Real Property (including fee or leasehold interests, options
and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

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

 

“Registration Statement”
means the Registration Statement on Form S-11 filed by the General Partner with the Securities and Exchange Commission, and any
amendments at any time made thereto, relating to the Common Stock.

 

“Regulations”
means the final, temporary or proposed income tax regulations promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

    	17

    	 

    

  

“Regulatory Allocations”
means the allocations set forth in paragraph 2 of Exhibit B.

 

“REIT” means a
real estate investment trust as defined in Section 856 of the Code.

 

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

 

“Restricted Class B Units”
has the meaning set forth in Section 16.2(a)(i).

 

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

 

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

 

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

 

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

 

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

 

“Service Provider”
means Lincoln Retail REIT Services, LLC or any other Person or Persons, if any, appointed, employed or contracted with by the Initial
Limited Partner to perform any of the services required to be performed by the Initial Limited Partner pursuant to the Advisory
Agreement.

 

“Special Limited Partner”
means American Realty Capital Retail Advisor, LLC, a Delaware limited liability company, which shall be a limited partner of the
Partnership and recognized as such under applicable Delaware law, but not a “Limited Partner” within the meaning of
this Agreement.

 

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

 

“Stockholder”
means a holder of Common Stock.

 

“Stockholder Distributions”
means any distributions of money or other property by the General Partner to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.

 

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

 

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

 

“Surviving General Partner”
has the meaning set forth in Section 11.2(d)(i)(A).

 

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“Tax Allocations”
means the allocations set forth in paragraph 4 of Exhibit B.

 

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

 

“Termination”
means the termination of the Advisory Agreement.

 

“Termination Amount”
means the Termination Liquidity Amount, the Termination Listing Amount or the amount distributable pursuant to Section 5.1(d)(i)
in the form of a Termination Note.

 

“Termination Date”
means the date of Termination.

 

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

 

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

 

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

 

“Termination Without Cause”
means the termination of the Advisory Agreement as provided in the Advisory Agreement by the Independent Directors (as defined
in the Advisory Agreement) of the General Partner without cause.

 

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

 

“Transfer” as
a noun, means any sale, assignment, conveyance, pledge, hypothecation, gift, encumbrance or other transfer, and as a verb, means
to sell, assign, convey, pledge, hypothecate, give, encumber or otherwise transfer.

 

“Unrestricted Class B Units”
has the meaning set forth in Section 16.2(a)(i) hereof.

 

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

 

“Value” means
the Offering price for a share of Common Stock less any selling commissions and dealer manager fee that would be payable with respect
to the sale of a share of Common Stock.

 

Certain additional terms and phrases have
the meanings set forth in Exhibit B.

 

Article
2

ORGANIZATIONAL MATTERS

 

2.1         Formation

 

The Partnership was formed by filing the
Certificate on July 29, 2010 in the office of the Delaware Secretary of State. The Partnership is a limited partnership organized
pursuant to the provision of the Act and upon the terms and conditions set forth in this Agreement. Except as 

 

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expressly provided
herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership shall
be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes.

  

2.2         Name

 

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

 

2.3         Registered
Office and Agent; Principal Office

 

The address of the registered office of
the Partnership in the State of Delaware and the name and address of the registered agent for service of process on the Partnership
in the State of Delaware is the Corporation Service Company, 2711 Centerville Road Suite 400, Wilmington, Delaware 19808. The principal
office of the Partnership shall be 405 Park Avenue, New York, New York 10022, or such other place as the General Partner may from
time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such other place or places within
or outside the State of Delaware as the General Partner deems advisable.

 

2.4         Power
of Attorney

 

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

 

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

 

(A)         all
certificates, documents and other instruments (including this Agreement and the Certificate and all amendments or restatements
thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or
qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have limited liability)
in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property,
including any documents necessary or advisable to convey any Contributed Property to the Partnership;

 

(B)         all
instruments that the General Partner or any Liquidator deems appropriate or necessary to reflect any amendment, change, modification
or restatement of this Agreement in accordance with its terms;

 

    	20

    	 

    

  

(C)         all
conveyances and other instruments or documents that the General Partner or any Liquidator deems appropriate or necessary to reflect
the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including a certificate of cancellation;

 

(D)         all
instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other events described
in, Article 11, 12 or 13 hereof or the Capital Contribution of any Partner;

 

(E)         all
certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership
Interest; and

 

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

 

(ii)         execute,
swear to, seal, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments appropriate
or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or
ratify any vote, consent, approval, agreement or other action which is made or given by the Partners hereunder or is consistent
with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator,
to effectuate the terms or intent of this Agreement.

 

Nothing contained herein shall be construed as authorizing the
General Partner or any Liquidator to amend this Agreement except in accordance with Article 14 hereof or as may be otherwise expressly
provided for in this Agreement.

 

(b)         (i)           The
foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact
that each of the Limited Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated
by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by
the subsequent Incapacity of any Limited Partner or Assignee and the Transfer of all or any portion of such Limited Partner’s
or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns
and personal representatives.

 

(ii)         Each
such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator,
acting in good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses
which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator, taken in good faith
under such power of attorney.

 

(iii)        Each
Limited Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within fifteen (15) days after
receipt of the General Partner’s or Liquidator’s request therefore, such further designation, powers of attorney and
other instruments as the General Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and
the purposes of the Partnership.

 

    	21

    	 

    

  

(c)          For
the purposes of this Section 2.4, the term “Limited Partner” shall be deemed to include the Special Limited Partner,
unless the context otherwise requires.

 

2.5         Term

 

The term of the Partnership shall commence
on the date hereof and shall continue until December 31, 2099, unless the Partnership is dissolved sooner pursuant to the provisions
of Article 13 or as otherwise provided by law.

 

Article
3

PURPOSE

 

3.1         Purpose
and Business

 

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

 

(i)           to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer,
encumber, convey, exchange, and otherwise dispose of or deal with the properties described in the prospectus contained in the
Registration Statement;

 

(ii)          to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer,
encumber, convey, exchange, and otherwise dispose of or deal with real and personal property of all kinds;

 

(iii)         to enter into any partnership, joint venture, corporation, limited liability company, trust or
other similar arrangement to engage in any of the foregoing;

 

(iv)         to undertake such other activities as may be necessary, advisable, desirable or convenient to the
business of the Partnership; and

 

(v)          to engage in such other ancillary activities as shall be necessary or desirable to
effectuate the foregoing purposes;

 

provided, however, that such business shall be
limited to and conducted in such a manner as to permit the General Partner at all times to be classified as a REIT, unless the
General Partner determines not to qualify as a REIT or ceases to qualify as a REIT for any reason not related to the business conducted
by the Partnership.

 

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

 

3.2         Powers

 

(a)          The
Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient
for the furtherance and 

 

    	22

    	 

    

 

accomplishment of the purposes
and business described herein and for the protection and benefit of the Partnership including full power and authority to enter
into, perform, and carry out contracts of any kind, to borrow money and to issue evidences of indebtedness, whether or not secured
by mortgage, trust deed, pledge or other Lien, and, directly or indirectly, to acquire, own, improve, develop and construct real
property, and lease, sell, transfer and dispose of real property; provided, however, that the Partnership
shall not take, or refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute discretion,

 

(i)        
  could adversely affect the ability of the General Partner to continue to qualify as a REIT, unless the
General Partner otherwise ceases to qualify as a REIT;

 

(ii)      
   could subject the General Partner to any additional taxes under Section 857 or Section 4981 of the
Code; or

 

(iii)    
    could violate any law or regulation of any governmental body or agency having jurisdiction
over the General Partner or its securities, unless such action (or inaction) shall have been specifically consented to by the
General Partner in writing.

 

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

 

Article
4

CAPITAL CONTRIBUTIONS

 

4.1         Capital
Contributions of the Partners

 

(a)           The Partners have made the Capital Contributions as set forth in Exhibit A.

 

(b)           To the extent the Partnership acquires any property by the merger of any other Person into the
Partnership or the contribution of assets by any other Person, Persons who receive Partnership Interests in exchange for
their interests in the Person merging into or contributing assets to the Partnership shall become Limited Partners and shall
be deemed to have made Capital Contributions as provided in the applicable merger agreement or contribution agreement and as
set forth in Exhibit A, as amended to reflect such deemed Capital Contributions.

 

(c)           As of the effective date of this Agreement, the Partnership shall have three classes of
Partnership Units, entitled “GP Units”, “OP Units” and “Class B Units”, respectively. Any
Partnership Units representing Limited Partner Interests previously issued hereunder are redesignated as OP Units, and any
Partnership Units representing General Partner Interests previously issued hereunder are redesignated as GP Units. The Class
B Units shall have the same rights, privileges and preferences as the OP Units, except as set forth in Article 16. Each
Partner shall own Partnership Units in the amounts set forth for such Partner in Exhibit A and shall have a Percentage
Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to
time by the General Partner to the extent 

 

    	23

    	 

    

 

necessary to reflect accurately exchanges, additional Capital Contributions, the
issuance of additional Partnership Units, transfers of Partnership Units or similar events having an effect on any
Partner’s Percentage Interest.

 

(d)           The number of Partnership Units held by the General Partner, as evidenced by GP Units, in its
capacity as general partner, shall be deemed to be the General Partner Interest.

 

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

 

4.2         Additional
Funds; Restrictions on the General Partner

 

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

 

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

 

(A)        cause
the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in accordance
with Section 4.3;

 

(B)         make
additional Capital Contributions to the Partnership (subject to the provisions of Section 4.2(b));

 

(C)    
    cause the Partnership to borrow money, enter into loan arrangements, issue debt securities,
obtain letters of credit or otherwise borrow money on a secured or unsecured basis;

 

(D)         make
a loan or loans to the Partnership (subject to Section 4.2(b)); or

 

(E)     
    sell any assets or properties directly or indirectly owned by the Partnership.

 

(iii)        In
no event shall any Limited Partners be required to make any additional Capital Contributions or any loan to, or otherwise provide
any financial accommodation for the benefit of, the Partnership.

 

    	24

    	 

    

  

(b)          The
General Partner shall not issue any debt securities, any preferred stock or any common stock (including additional Common Stock
(other than (i) as payment of the Common Stock Amount or (ii) in connection with the conversion or exchange of securities of the
General Partner solely in conversion or exchange for other securities of the General Partner)) or rights, options, warrants or
convertible, exercisable or exchangeable securities containing the right to subscribe for or purchase any of the foregoing (collectively,
“Securities”), other than to all holders of Common Stock, unless the General Partner shall

 

(i)     
     in the case of debt securities, lend to the Partnership the proceeds of or consideration
received for such Securities on the same terms and conditions, including interest rate and repayment schedule, as shall be
applicable with respect to or incurred in connection with the issuance of such Securities and the proceeds of, or
consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable);

 

(ii)      
   in the case of equity Securities senior or junior to the Common Stock as to dividends and
distributions on liquidation, contribute to the Partnership the proceeds of or consideration (including any property or other
non-cash assets) received for such Securities and the proceeds of, or consideration received from, any subsequent exercise,
exchange or conversion thereof (if applicable), and receive from the Partnership, interests in the Partnership in
consideration therefor with the same terms and conditions, including dividend, dividend priority and liquidation preference,
as are applicable to such Securities; and

 

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

 

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

 

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

 

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

 

(a)     
    In addition to any Partnership Interests issuable by the Partnership pursuant to Section 4.2,
the General Partner is authorized to cause the Partnership to issue additional Partnership Interests (or options therefore)
in the form of Partnership Units or other Partnership Interests in one or more series or classes, or in one or more series
of any such class senior, on a 

 

    	25

    	 

    

 

parity with, or junior to the
Partnership Units to any Persons at any time or from time to time, on such terms and conditions, as the General Partner shall
establish in each case in its sole and absolute discretion subject to Delaware law, including (i) the allocations of items of
Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests, (ii) the right of each
class or series of Partnership Interests to share in Partnership distributions, and (iii) the rights of each class or series
of Partnership Interest upon dissolution and liquidation of the Partnership; provided, however, that no such Partnership
Interests shall be issued to the General Partner unless either (A) the Partnership Interests are issued in connection with the
grant, award, or issuance of Common Stock or other equity interests in the General Partner having designations, preferences and
other rights such that the economic interests attributable to such Common Stock or other equity interests are substantially similar
to the designations, preferences and other rights (except voting rights) of the Partnership Interests issued to the General Partner
in accordance with this Section 4.3(a) or (B) the additional Partnership Interests are issued to all Partners holding Partnership
Interests in the same class in proportion to their respective Percentage Interests in such class, without any approval being required
from any Limited Partner or any other Person; and provided further, however, that

 

(i)        
  such issuance does not cause the Partnership to become, with respect to any employee benefit plan subject
to Title I of ERISA or Section 4975 of the Code, a “party in interest” (as defined in Section 3(14) of ERISA) or
a “disqualified person” (as defined in Section 4975(e) of the Code); and

 

(ii)     
    such issuance would not cause any portion of the assets of the Partnership to constitute
assets of any employee benefit plan pursuant to Section 2510.3-101 of the regulations of the United States Department of
Labor.

 

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

 

4.4         Contribution
of Proceeds of Issuance of Common Stock

 

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

 

    	26

    	 

    

 

4.5         Repurchase
of Common Stock; Shares-In-Trust

 

(a)       
  If the General Partner shall elect to purchase from its stockholders Common Stock for the purpose of
delivering such Common Stock to satisfy an obligation under any distribution reinvestment plan adopted by the General
Partner, any employee stock purchase plan adopted by the General Partner, or for any other purpose, the purchase price paid
by the General Partner for such Common Stock and any other expenses incurred by the General Partner in connection with such
purchase shall be considered expenses of the Partnership and shall be reimbursed to the General Partner, subject to the
condition that:

 

(i)      
    if such Common Stock subsequently is to be sold by the General Partner, the General Partner
shall pay to the Partnership any proceeds received by the General Partner from the sale of such Common Stock (provided that
an exchange of Common Stock for Partnership Units pursuant to the applicable Exchange Rights Agreement would not be
considered a sale for such purposes); and

 

(ii)     
    if such Common Stock is not re-transferred by the General Partner within 30 days after the
purchase thereof, the General Partner shall cause the Partnership to cancel a number of Partnership Units held by the General
Partner (as applicable) equal to the product of

 

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

 

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

 

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

 

(i)        
  the number of shares of Common Stock purchased by the General Partner from the Trust, multiplied by

 

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

 

4.6         No
Third-Party Beneficiary

 

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

 

    	27

    	 

    

  

4.7         No
Interest; No Return

 

(a)          No
Partner shall be entitled to interest on its Capital Contribution or on such Partner’s Capital Account.

 

(b)          Except
as provided herein or by law, no Partner shall have any right to demand or receive the return of its Capital Contribution from
the Partnership.

 

4.8         No
Preemptive Rights.

 

Subject to any preemptive rights that may
be granted pursuant to Section 4.3 hereof, no Person shall have any preemptive or other similar right with respect to

 

(a)          additional
Capital Contributions or loans to the Partnership; or

 

(b)          issuance
or sale of any Partnership Units or other Partnership Interests.

 

Article
5

DISTRIBUTIONS

 

5.1         Distributions

 

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

 

(b)          Net
Sales Proceeds. Subject to the provisions of Sections 5.1(f), 5.3, 5.4, 12.2(c) and 13.2, Net Sales Proceeds shall be distributed
as follows:

 

(i)          First,
100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective Percentage Interest
with respect to such GP Units and/or OP Units until the Net Investment Balance is zero

 

(ii)         Second,
100% to the Partners holding GP Units and/or OP Units in proportion to each such Partner’s respective Percentage Interest
with respect to such GP Units and/or OP Units until such Partners have received in the aggregate, pursuant to this Section 5.1(b)(ii)
and Section 5.1(a), an amount such that the Priority Return Balance is zero; and

 

(iii)        Thereafter,
(A) 15% to the Special Limited Partner, and (B) 85% to be distributed to the Partners holding GP Units, OP Units and/or Class B
Units in proportion to their respective Percentage Interests with respect to such GP Units, OP Units and/or Class B Units.

 

    	28

    	 

    

  

(c)          Listing
Amounts. Upon a Listing and subject to Section 5.1(f), the General Partner shall cause the Partnership to distribute an amount
to the Special Limited Partner in redemption of the Special Limited Partner Interest in the form of a Note (the “Listing
Note”) equal to 15% of the amount, if any, by which (i) the sum of (A) the Market Value of all issued and outstanding
shares of Common Stock plus (B) the sum of all Stockholder Distributions paid by the General Partner prior to Listing, exceeds
(ii) the sum of (Y) the total Gross Proceeds in all Offerings plus (Z) the total amount of cash that, if distributed to those Stockholders
who purchased shares of Common Stock in an Offering, would have provided such Stockholders a Priority Return on the Gross Proceeds
raised in all such Offerings. The Listing Note will only be paid to the Special Limited Partner if the Advisory Agreement has not
been terminated by the General Partner or the Advisor prior to the Listing. Notwithstanding anything herein to the contrary, in
accordance with Section 736 of the Code, the Listing Note shall be disregarded for applicable income tax purposes and the Special
Limited Partner shall continue to be treated as a partner of the Partnership in respect of its Special Limited Partner Interest
for such purposes until the Partnership has satisfied all of its obligations under the Listing Note. Without limiting the foregoing,
the Special Limited Partner shall not be required to accrue interest on the Listing Note in income and the Partnership shall not
deduct such interest for such purposes; provided, that, any cash or property paid to the Special Limited Partner with respect to
such interest shall be reported to the Special Limited Partner on Internal Revenue Service Schedule K-1 to Form 1065 (or such successor
schedule or form).

 

(d)          Terminations
Amounts.

 

(i)          Upon
a Termination and subject to Sections 5.1(d)(ii) and (f), the General Partner shall cause the Partnership to distribute an amount
to the Special Limited Partner in redemption of the Special Limited Partner Interest in the form of a Note (the “Termination
Note”) equal to 15% of the amount, if any, by which (A) the sum of (1) the fair market value (determined by appraisal
as of the Termination Date) of the Investments on the Termination Date, minus (2) any Loans secured by such Investments, plus (3)
the sum of all Stockholder Distributions paid by the General Partner through the Termination Date on shares of Common Stock issued
in all Offerings through the Termination Date, minus (4) any amounts distributable as of the Termination Date to the Limited Partners
who received Partnership Units in connection with the contribution of any Investments (including cash used to acquire Investments)
to the Partnership, upon the liquidation or sale of such Investments (assuming the liquidation or sale of such Investments on the
Termination Date), exceeds (B) the sum of (1) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts
paid on or prior to the Termination Date to purchase or redeem any shares of Common Stock purchased in an Offering pursuant to
the General Partner’s share repurchase plan) plus (2) the total amount of cash that, if distributed to those Stockholders
who purchased shares of Common Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders
a Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception
through the Termination Date. Notwithstanding anything herein to the contrary, in accordance with Section 736 of the Code, the
Termination Note shall be disregarded for applicable income tax purposes and the Special Limited Partner shall continue to be treated
as a partner of the Partnership in respect of its Special Limited Partner Interest for such purposes until the Partnership has
satisfied all of 

 

    	29

    	 

    

 

its obligations under the Termination Note. Without limiting the foregoing, the Special Limited Partner shall
not be required to accrue interest on the Termination Note in income and the Partnership shall not deduct such interest for such
purposes; provided, that, any cash or property paid to the Special Limited Partner with respect to such interest shall be reported
to the Special Limited Partner on Internal Revenue Service Schedule K-1 to Form 1065 (or such successor schedule or form).

  

(ii)  
       Upon a Termination and subject to Section 5.1(f), the Special Limited
Partner may elect to receive, in lieu of its right to receive the Termination Note, either:

 

(A)         If
there is a Listing subsequent to the Termination Date, then the General Partner shall cause the Partnership to distribute an amount
to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or more payments solely out
of Net Sales Proceeds (the “Termination Listing Amount”), equal to 15% of the amount, if any, by which (1) the
sum of (w) the fair market value (determined by appraisal as of the date of Listing) of the Included Assets, minus (x) any Loans
secured by the Included Assets, plus (y) the sum of all Stockholder Distributions paid by the General Partner through the date
of Listing on shares of Common Stock issued in Offerings through the Termination Date, minus (z) any amounts distributable as of
the date of Listing to the Limited Partners who received Partnership Units in connection with the contribution of any Included
Assets (including cash used to acquire Included Assets) to the Partnership, upon the liquidation or sale of such Included Assets
(assuming the liquidation or sale of such Included Assets on the date of Listing), exceeds (2) the sum of (y) the Gross Proceeds
raised in all Offerings through the Termination Date (less amounts paid on or prior to the date of Listing to purchase or redeem
any shares of Common Stock purchased in an Offering on or prior to the Termination Date pursuant to the General Partner’s
share repurchase plan), plus (z) the total amount of cash that, if distributed to those Stockholders who purchased shares of Common
Stock in an Offering on or prior to the Termination Date, would have provided such Stockholders a Priority Return on the Gross
Proceeds raised in all Offerings through the Termination Date, measured for the period from inception through the date of Listing. 

 

(B)         If
there is an Investment Liquidity Event subsequent to the Termination Date, then the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or
more payments solely out of Net Sales Proceeds (the “Termination Liquidity Amount”), equal to 15% of the amount,
if any, by which (1) the sum of (w) the fair market value (determined by appraisal as of the Investment Liquidity Date) of the
Included Assets, minus (x) any Loans secured by the Included Assets, plus (y) the sum of all Stockholder Distributions paid by
the General Partner through the Investment Liquidity Date on shares of Common Stock issued in Offerings through the Termination
Date, minus (z) any amounts distributable as of the Investment Liquidity Date to the Limited Partners who received Partnership
Units in connection with the contribution of any 

 

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Included Assets (including cash used to acquire Included Assets) to the Partnership,
upon the liquidation or sale of such Included Assets (assuming the liquidation or sale of such Included Assets on the Investment
Liquidity Date), exceeds (2) the sum of (y) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts
paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased in an Offering on
or prior to the Termination Date pursuant to the General Partner’s share repurchase plan), plus (z) the total amount of cash
that, if distributed to those Stockholders who purchased shares of Common Stock in an Offering on or prior to the Termination Date,
would have provided such Stockholders Priority Return on the Gross Proceeds raised in all Offerings through the Termination Date,
measured for the period from inception of the General Partner through the Investment Liquidity Date.

  

(e)          Investment
Liquidity Amounts. Upon an Investment Liquidity Event and subject to Section 5.1(f), the General Partner shall cause the Partnership
to distribute an amount to the Special Limited Partner in redemption of the Special Limited Partner Interest, payable in one or
more payments solely out of Net Sales Proceeds (the “Investment Liquidity Amount”), equal to 15% of the amount,
if any, by which (A) the sum of (1) the fair market value of the Included Assets or all issued and outstanding shares of Common
Stock as determined in good faith by the General Partner as of the Investment Liquidity Date (the “Investment Liquidity
Value”), plus (2) the sum of all Stockholder Distributions paid by the General Partner through the Investment Liquidity
Date, exceeds (B) the sum of (1) the Gross Proceeds raised in all Offerings through the Investment Liquidity Date (less amounts
paid on or prior to the Investment Liquidity Date to purchase or redeem any shares of Common Stock purchased in an Offering pursuant
to the General Partner’s share repurchase plan) plus (2) the total amount of cash that, if distributed to those Stockholders
who purchased shares of Common Stock in an Offering on or prior to the Investment Liquidity Date, would have provided such Stockholders
a Priority Return on the Gross Proceeds raised in all Offerings through the Investment Liquidity Date, measured for the period
from inception of the General Partner through the Investment Liquidity Date.

 

(f)           Coordination.

 

(i)          Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to a Listing shall reduce dollar
for dollar the amount of a Listing Note to be issued and distributed pursuant to Section 5.1(c). If the Special Limited Partner
receives a Listing Note pursuant to Section 5.1(c), (A) the Special Limited Partner would no longer be entitled to receive distributions
of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Termination Amount pursuant to Section 5.1(d) or the Investment Liquidity
Amount pursuant to Section 5.1(e) and (B) any Net Sales Proceeds received by the Partnership after the Listing shall be applied
first to satisfy the Partnership’s obligation to make distributions pursuant to the Listing Note.

 

(ii)         Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to the Termination Date shall reduce
dollar for dollar the Termination Amount to be distributed pursuant to Section 5.1(d). If the Special Limited Partner receives,
or is entitled to receive, a Termination Amount pursuant to

 

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Section 5.1(d), (A) the Special
Limited Partner would no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A),
a Listing Note pursuant to Section 5.1(c) or the Investment Liquidity Amount pursuant to Section 5.1(e) and (B) any Net Sales
Proceeds received by the Partnership after the Termination Date, in connection with a Termination Note, the date of the subsequent
Listing, in connection with the Termination Listing Amount, and the Investment Liquidity Date, in connection with the Termination
Liquidity Amount, shall be applied first to satisfy the Partnership’s obligation to make distributions pursuant to Section
5.1(d).

 

(iii)        Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section 5.1(b)(iii)(A) prior to the Investment Liquidity Date
shall reduce dollar for dollar the Investment Liquidity Amount to be issued and distributed pursuant to Section 5.1(e). If the
Special Limited Partner is entitled to receive an Investment Liquidation Amount pursuant to Section 5.1(e), (A) the Special Limited
Partner would no longer be entitled to receive distributions of Net Sales Proceeds pursuant to Section 5.1(b)(iii)(A), a Listing
Note pursuant to Section 5.1(c) or a Termination Amount pursuant to Section 5.1(d) and (B) any Net Sales Proceeds received by the
Partnership as a result of or after the Investment Liquidity Event shall be applied first to satisfy the Partnership’s obligation
to make distributions pursuant to Section 5.1(e).

 

(iv)        If
the General Partner chooses in its discretion to satisfy all or a portion of the distributions required to be made to the Special
Limited Partner pursuant to a Listing Note or Termination Note with shares of Common Stock, the amount of the Listing Note or Termination
Note due to the Special Limited Partner shall be reduced by (y) the Market Value, with respect to the Listing Note, and (z) the
fair market value, with respect to the Termination Note, of the Common Stock on the date such Common Stock is issued to the Special
Limited Partner.

 

(v)         If
the Special Limited Partner converts all or a portion of its Special Limited Partner Interest into OP Units pursuant to Section
8.7(a), the amount of the Listing Note or Termination Note due to the Special Limited Partner shall be reduced by an amount equal
to the product of (i) the number of OP Units issued in the conversion multiplied by (ii) the product of (A) the Value of one share
of Common Stock on the date of conversion multiplied by (B) the Exchange Factor. If the Special Limited Partner contributes its
Special Limited Partner Interest to the Partnership in exchange for OP Units pursuant to Section 8.7(b), the Special Limited Partner
shall no longer be entitled the Termination Listing Amount, the Termination Liquidity Amount or Investment Liquidity Amount or
distributions of Net Sales Proceeds in respect of such Termination Listing Amount, the Termination Liquidity Amount or Investment
Liquidity Amount pursuant to Sections 5.1(f)(ii) or (iii), as the case may be.

 

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

 

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amount
sufficient to enable the General Partner to pay dividends to the Stockholders in order to satisfy the REIT Requirements.

  

(g)          In
no event may any Partner receive a distribution pursuant to Sections 5.1(a) or (b) with respect to a Partnership Unit if such Partner
is entitled to receive a distribution with respect to Common Stock for which such a Partnership Unit has been exchanged.

 

5.2         Qualification
as a REIT

 

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

 

(a)          satisfy
the requirements for qualification as a REIT under the Code and Regulations (“REIT Requirements”), and

 

(b)          avoid
any federal income or excise tax liability;

 

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

 

(i)          violate
applicable Delaware law or

 

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

 

5.3         Withholding

 

With respect to any withholding tax or other
similar tax liability or obligation to which the Partnership may be subject as a result of any act or status of any Partner or
the Special Limited Partner or to which the Partnership becomes subject with respect to any Partnership Unit or the Special Limited
Partner Interest, the Partnership shall have the right to withhold amounts distributable pursuant to this Article V to such Partner
or the Special Limited Partner or with respect to such Partnership Units or the Special Limited Partner Interest, to the extent
of the amount of such withholding tax or other similar tax liability or obligation pursuant to the provisions contained in Section
10.5, and the amount of any withholding shall reduce the right of such Partner or the Special Limited Partner to future distribution
to the extent provided in Section 10.5.

 

5.4         Additional
Partnership Interests

 

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

 

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Article
6

ALLOCATIONS

 

6.1         Allocations

 

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

 

6.2         Revisions
to Allocations to Reflect Issuance of Partnership Interests

 

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

 

Article
7

MANAGEMENT AND OPERATIONS OF BUSINESS

 

7.1         Management

 

(a)          (i)            Except
as otherwise expressly provided in this Agreement, full, complete and exclusive discretion to manage and control the business and
affairs of the Partnership are and shall be vested in the General Partner, and no Limited Partner shall have any right to participate
in or exercise control or management power over the business and affairs of the Partnership.

 

(ii)          The
General Partner may not be removed by the Limited Partners with or without cause.

 

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

 

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

 

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

 

(3)         the
issuance of evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other lien or encumbrance
on the Partnership’s assets) and

 

(4)         the
incurring of any obligations it deems necessary for the conduct of the activities of the Partnership, including the payment of
all expenses associated with the General Partner;

 

(B)         the
acquisition, purchase, ownership, operating, leasing and disposition of any real property and any other property or assets, including
mortgages and real estate-related notes, whether directly or indirectly;

 

(C)         the
making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having
jurisdiction over the business or assets of the Partnership or the General Partner;

 

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

 

(E)         the
use of the assets of the Partnership (including cash on hand) for any purpose consistent with the terms of this Agreement and on
any terms it sees fit, including,

 

(1)         the
financing of the conduct of the operations of the General Partner, the Partnership or any of the Partnership’s Subsidiaries,

 

(2)         the
lending of funds to other Persons (including the Subsidiaries of the Partnership and/or the General Partner) and the repayment
of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and

 

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

 

(F)         the
expansion, development, redevelopment, construction, leasing, repair, rehabilitation, repositioning, alteration, demolition or
improvement of any 

 

    	35

    	 

    

  

property in which the Partnership or any Subsidiary of the Partnership owns an interest;

 

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

 

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

 

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

 

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

 

(K)        the
establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership (including
employees having titles such as “president,” “vice president,” “secretary” and “treasurer”
of the Partnership), and agents, outside attorneys, accountants, consultants and contractors of the Partnership, and the determination
of their compensation and other terms of employment or engagement;

 

(L)         the
maintenance of such insurance for the benefit of the Partnership and the Partners and directors and officers thereof as it deems
necessary or appropriate;

 

(M)       the
formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership
or third parties) in, and the contribution of property to, any further Entities or other relationships that it deems desirable,
including the acquisition of interests in, and the contributions of funds or property to, or making of loans to, its Subsidiaries
and any other Person from time to time, or the incurrence of indebtedness on behalf of such Persons or the guarantee of the obligations
of such Persons; provided, however, that, as long as the General Partner has determined to elect to qualify as a REIT or
to continue to qualify as a REIT, the Partnership may not engage in any such formation, acquisition or contribution that would
cause the General Partner to fail to qualify as a REIT;

 

(N)        the
control of any matters affecting the rights and obligations of the Partnership, including

 

(1)         the
settlement, compromise, submission to arbitration or any other form of dispute resolution, or abandonment of, any claim, cause 

 

    	36

    	 

    

 

of action, liability, debt or damages, due or owing to or from the Partnership,

  

(2)         the
commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of dispute resolution,
and

 

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

 

(O)         the
undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries or any other
Person (including the contribution or loan of funds by the Partnership to such Persons);

 

(P)         the
determination of the fair market value of any Partnership property distributed in kind using such reasonable method of valuation
as the General Partner, in its sole discretion, may adopt;

 

(Q)         the
exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right,
including the right to vote, appurtenant to any asset or investment held by the Partnership;

 

(R)         the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary
of the Partnership or any other Person in which the Partnership has a direct or indirect interest, or jointly with any such Subsidiary
or other Person;

 

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

 

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

 

(U)         the
issuance of additional Partnership Units in connection with Capital Contributions by Additional Limited Partners and additional
Capital Contributions by Partners pursuant to Article 4 hereof;

 

(V)         the
authorization, issuance, sale, redemption or purchase of any Partnership Units or any securities of the Partnership;

 

    	37

    	 

    

  

(W)         the
opening of bank accounts on behalf of, and in the name of, the Partnership and its Subsidiaries; and

 

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

 

(b)         (i)            Each
of the Limited Partners agree that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements
and transactions on behalf of the Partnership without any further act, approval or vote of the Partners, notwithstanding any other
provision of this Agreement to the fullest extent permitted under the Act or other applicable law, rule or regulation.

 

(ii)         The
execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this
Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or
the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity.

 

(c)          At
all times from and after the date hereof, the General Partner at the expense of the Partnership, may or may not, cause the Partnership
to obtain and maintain

 

(i)          casualty,
liability and other insurance on the properties of the Partnership;

 

(ii)         liability
insurance for the Indemnitees hereunder; and

 

(iii)        such
other insurance as the General Partner, in its sole and absolute discretion, determines to be appropriate and reasonable.

 

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

 

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

 

    	38

    	 

    

 

the General Partner is acting on behalf of the Partnership, the General Partner, and the General Partner’s Stockholders,
collectively.

  

(ii)         The
General Partner and the Partnership shall not have liability to the any Limited Partner or the Special Limited Partner under any
circumstances as a result of an income tax liability incurred by such Limited Partner or the Special Limited Partner as a result
of an action (or inaction) by the General Partner taken pursuant to its authority under and in accordance with this Agreement.

 

7.2         Certificate
of Limited Partnership

 

(a)          The
General Partner has previously filed the Certificate with the Secretary of State of Delaware as required by the Act.

 

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

 

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

 

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

 

7.3         Reimbursement
of the General Partner

 

(a)          Except
as provided in this Section 7.3 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions,
payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general
partner of the Partnership.

 

(b)          (i)          The
Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s organization, the ownership
of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such other basis as it may determine
in its sole and absolute discretion, for all expenses that it incurs on behalf of the Partnership relating to the ownership and
operation of the Partnership’s assets, or for the benefit of the Partnership, including all expenses associated with compliance
by the General Partner and the Initial Limited Partner with laws, rules and regulations promulgated by any regulatory body, expenses
related to the operations of the General Partner and to the management and administration of any Subsidiaries of the General Partner
or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees and any and all salaries, compensation
and expenses of officers and employees of the General Partner, but excluding any portion of expenses reasonably

 

    	39

    	 

    

 

attributable to
assets not owned by or for the benefit of, or to operations not for the benefit of, the Partnership or Affiliates of the Partnership;
provided, however, that the amount of any such reimbursement shall be reduced by any interest earned by the
General Partner with respect to bank accounts or other instruments or accounts held by it in its name.

  

(ii)         Such
reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to Section 7.6 hereof.

 

(iii)        The
General Partner shall determine in good faith the amount of expenses incurred by it related to the ownership and operation of,
or for the benefit of, the Partnership. If certain expenses are incurred for the benefit of the Partnership and other entities
(including the General Partner), such expenses will be allocated to the Partnership and such other entities in such a manner as
the General Partner in its reasonable discretion deems fair and reasonable. All payments and reimbursements hereunder shall be
characterized for federal income tax purposes as expenses of the Partnership incurred on its behalf, and not as expenses of the
General Partner.

 

(c)         (i)            Expenses
incurred by the General Partner relating to the organization or reorganization of the Partnership and the General Partner the issuance
of Common Stock in connection with an Offering and any issuance of additional Partnership Interests, Common Stock or rights, options,
warrants, or convertible or exchangeable securities pursuant to Section 4.2 hereof and all costs and expenses associated with the
preparation and filing of any periodic reports by the General Partner under federal, state or local laws or regulations (including
all costs, expenses, damages, and other payments resulting from or arising in connection with litigation related to any of the
foregoing) are primarily obligations of the Partnership.

 

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

 

7.4         Outside
Activities of the General Partner

 

(a)          Without
the Consent of the Limited Partners, the General Partner shall not directly or indirectly enter into or conduct any business other
than in connection with the ownership, acquisition, and disposition of Partnership Interests and the management of its business
and the business of the Partnership, and such activities as are incidental thereto.

 

(b)          The
General Partner and any Affiliates of the General Partner may acquire Limited Partner Interests and shall be entitled to exercise
all rights of a Limited Partner relating to such Limited Partner Interests.

 

7.5         Contracts
with Affiliates

 

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

 

    	40

    	 

    

  

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

 

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

 

(c)          Except
as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell, Transfer or convey
any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are
determined by the General Partner in good faith to be fair and reasonable.

 

(d)          The
General Partner, in its sole and absolute discretion and without the approval the Limited Partners, may propose and adopt, on behalf
of the Partnership, employee benefit plans, stock option plans, and similar plans funded by the Partnership for the benefit of
employees of the Partnership, the General Partner, any Subsidiaries of the Partnership or any Affiliate of any of them in respect
of services performed, directly or indirectly, for the benefit of the Partnership, the General Partner, any Subsidiaries of the
Partnership or any Affiliate of any of them.

 

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

 

7.6         Indemnification

 

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

 

    	41

    	 

    

 

court of competent jurisdiction approves a settlement of such allegations against such Indemnitee
and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for
indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any
state securities regulatory authority in which the Common Stock was offered or sold as to indemnification for violations of securities
law.

  

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

 

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

 

(b)          Reasonable
expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership in advance of
the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative
made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the
Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.6 has been met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met.

 

(c)          The
indemnification provided by this Section 7.6 shall be in addition to any other rights to which an Indemnitee or any other Person
may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue
as to an Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant to which
such Indemnities are indemnified.

 

(d)          The
Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnities and such other Persons
as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by
such Person in connection with the Partnership’s activities, regardless of whether the Partnership would have the power to
indemnify such Person against such liability under the provisions of this Agreement.

 

(e)          For
purposes of this Section 7.6, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee
benefit plan whenever the 

 

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performance by such Indemnitee of its duties
to the Partnership also imposes duties on, or otherwise involves services by, such Indemnitee to the plan or participants or beneficiaries
of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall
constitute fines within the meaning of this Section 7.6. Actions taken or omitted by the Indemnitee with respect to an employee
benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the interest of the participants
and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the Partnership.

 

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

 

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

 

(h)          (i)          The
provisions of this Section 7.6 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons.

 

(ii)         Any
amendment, modification or repeal of this Section 7.6 or any provision hereof shall be prospective only and shall not in any way
affect the Partnership’s liability to any Indemnitee under this Section 7.6, as in effect immediately prior to such amendment,
modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may arise or be asserted.

 

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

 

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

 

7.7         Liability
of the General Partner

 

(a)          Notwithstanding
anything to the contrary set forth in this Agreement, neither the General Partner nor the investment advisor of the General Partner,
nor any of their respective officers and directors, shall be liable for monetary damages to the Partnership, any Partners or any
Assignees for losses sustained or liabilities incurred as a result of errors in judgment or mistakes of fact or law or of any act
or omission unless the General Partner or its investment 

 

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advisor, as the case may be, acted in bad faith and the act or omission
was material to the matter giving rise to the loss, liability or benefit not derived.

  

(b)          (i)          The
Limited Partners and the Special Limited Partner expressly acknowledge that the General Partner (and its investment advisor) is
acting on behalf of the Partnership and the Stockholders of the General Partner collectively, that the General Partner (and its
investment advisor), subject to the provisions of Section 7.1(e) hereof, is under no obligation to consider the separate interest
of the Limited Partners or the Special Limited Partner (including the tax consequences to any Limited Partner, the Special Limited
Partner or any Assignees) in deciding whether to cause the Partnership to take (or decline to take) any actions, and that the General
Partner (and its investment advisor) shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits
not derived by Limited Partners or the Special Limited Partner in connection with such decisions; provided that the General Partner
(and its investment advisor) has acted in good faith.

 

(ii)         With
respect to any indebtedness of the Partnership which any Limited Partner or the Special Limited Partner may have guaranteed, the
General Partner (and its investment advisor) shall have no duty to keep such indebtedness outstanding.

 

(c)      (i)            Subject
to its obligations and duties as General Partner set forth in Section 7.1(a) hereof, the General Partner may exercise any of the
powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through
its agent, including its investment advisor.

 

(ii)         The
General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the General
Partner in good faith.

 

(d)          The
Limited Partners expressly acknowledge that if any conflict in the fiduciary duties owed by the General Partner to its Stockholders
and by the General Partner, in its capacity as a general partner of the Partnership, to the Limited Partners or the Special Limited
Partner, the General Partner may act in the best interests of the General Partner’s Stockholders without violating its fiduciary
duties to the Limited Partners or the Special Limited Partner, and that the General Partner shall not be liable for monetary damages
for losses sustained, liabilities incurred, or benefits not derived by the Limited Partners or the Special Limited Partner in connection
with any such violation.

 

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

 

7.8         Other
Matters Concerning the General Partner

 

(a)          The
General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, 

 

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consent, order, bond, debenture, or other paper or document believed by it in good
faith to be genuine and to have been signed or presented by the proper party or parties.

  

(b)          The
General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, architects,
engineers, environmental consultants and other consultants and advisers selected by it, and any act taken or omitted to be taken
in reliance upon the opinion of such Persons as to matters which such General Partner reasonably believes to be within such Person’s
professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with
such opinion.

 

(c)          (i)          The
General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and duly appointed attorneys-in-fact.

 

(ii)         Each
such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power and authority to do
and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder.

 

(d)          Notwithstanding
any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision
of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action
or omission is necessary or advisable in order

 

(i)          to
protect the ability of the General Partner to continue to qualify as a REIT; or

 

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

 

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

 

7.9         Title
to Partnership Assets

 

(a)          Title
to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership
as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof.

 

(b)          (i)          Title
to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees,
as the General Partner may determine, including Affiliates of the General Partner.

 

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

 

    	45

    	 

    

 

however, that the General Partner
shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably
practicable.

  

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

 

7.10       Reliance
by Third Parties

 

(a)          Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General
Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise
use in any manner any and all assets of the Partnership and to enter into any contracts on behalf of the Partnership, and take
any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the
General Partner were the Partnership’s sole party in interest, both legally and beneficially.

 

(b)          Each
Limited Partner and the Special Limited Partner hereby waive any and all defenses or other remedies which may be available against
such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing.

 

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

 

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

 

(i)          at
the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and effect;

 

(ii)         the
Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on
behalf of the Partnership; and

 

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

 

7.11       Loans
By Third Parties

 

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

 

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Article
8

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

 

8.1         Limitation
of Liability

 

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

 

8.2         Management
of Business

 

(a)          No
Limited Partner or Assignee (other than the General Partner, any of its Affiliates or any officer, director, employee, agent or
trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part in the operation,
management or control (within the meaning of the Act) of the Partnership’s business, transact any business in the Partnership’s
name or have the power to sign documents for or otherwise bind the Partnership.

 

(b)          The
transaction of any such business by the General Partner, any of its Affiliates or any officer, director, employee, partner, agent
or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall not affect, impair
or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement.

 

8.3         Outside
Activities of Limited Partners

 

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

 

(b)          Neither
the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner
, the Special Limited Partner, any Assignee or any of their Affiliates.

 

(c)          No
Limited Partner nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship established
hereby in any business ventures of any other Person and such Person shall have no obligation pursuant to this Agreement to offer
any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such opportunity
is of a character which, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person.

 

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8.4         Return
of Capital

 

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

 

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

 

8.5         Rights
of Limited Partners Relating to the Partnership

 

(a)          In
addition to the other rights provided by this Agreement or by the Act, and except as limited by Section 8.5(b) hereof, each Limited
Partner and the Special Limited Partner shall have the right, for a purpose reasonably related to such Person’s interest
as a limited partner in the Partnership, upon written demand with a statement of the purpose of such demand and at such Person’s
own expense (including such reasonable copying and administrative charges as the General Partner may establish from time to time):

 

(i)          to
obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by the General
Partner pursuant to the Securities Exchange Act of 1934; and

 

(ii)         to
obtain a copy of the Partnership’s federal, state and local income tax returns for each Partnership Year.

 

(b)          Notwithstanding
any other provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners and the Special Limited
Partner, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information
that

 

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

 

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

 

8.6         Exchange
Rights Agreements

 

(a)          Subject
to Sections 11.3(c), 11.3(d), 11.3(e), 11.4 and 11.6, the Limited Partners (other than the General Partner in its capacity as
a Limited Partner) will be granted the right, but not the obligation, to exchange all or a portion of their Partnership Units
for cash or, at the option of the Partnership, for shares of Common Stock on such terms and subject to such conditions and restrictions
as will be contained in one or more exchange rights agreements among the General Partner, the Partnership and one or more Limited
Partners (as amended from time to time, the

 

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 “Exchange Rights Agreements”); provided, however,
that such Partnership Units shall have been outstanding for at least one year (or such lesser time as determined by the General
Partner in its sole and absolute discretion). The form of each Exchange Rights Agreement governing the exchange of Partnership
Units hereafter shall be determined by the General Partner. Notwithstanding the foregoing, the Initial Limited Partner shall not
be permitted to exchange any portion of its Partnership Units pursuant to this subparagraph 8.6(a) unless and until the Initial
Limited Partner does not have a deficit balance in its Capital Account.

  

(b)          The
Limited Partners and all successors, assignees and transferees (whether by operation of law, including by merger or consolidation,
dissolution or liquidation of an entity that is a Limited Partner, or otherwise) shall be bound by the provisions of the Exchange
Rights Agreement to which they are parties.

 

8.7         Conversion
and Exchange of Special Limited Partner Interests.

 

(a)          Conversion
of Listing Note or Termination Note.

 

(i)          If
the Special Limited Partner is entitled to receive distributions of Net Sales Proceeds pursuant to the Partnership’s obligation
under a Listing Note or a Termination Note, at such time as the Capital Account balance of the Special Limited Partner attributable
to the Special Limited Partner Interest is equal to the remaining amount of Net Sales Proceeds distributable to the Special Limited
Partner pursuant to the Listing Note or Termination Note, respectively, the Special Limited Partner shall have the right, but not
the obligation, to convert all or a portion of the Special Limited Partner Interest into OP Units. The Special Limited Partner
shall provide written notice to the General Partner of its intention to convert all or a portion of its Special Limited Partner
Interest at least ten (10) days prior to the date on which the conversion is to occur, and such notice shall indicate the amount
of the Special Limited Partner Interest that the Special Limited Partner intends to convert. The maximum number of OP Units issuable
upon a conversion of the Special Limited Partner Interest shall be equal to the quotient of (i) the net amount of the Partnership’s
remaining obligation pursuant to the Listing Note or Termination Note on the date of conversion divided by (ii) the product of
(A) the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange Factor. Only a whole number
of OP Units may be issuable upon a conversion of the Special Limited Partner Interest. The Special Limited Partner covenants and
agrees with the Partnership that the Special Limited Partner Interest shall be free and clear of all liens. The conversion of all
or a portion of the Special Limited Partner Interest shall occur automatically after the close of business on the applicable date
of conversion, as of which time the Special Limited Partner shall be credited on the books and records of the Partnership with
the issuance as of the opening of business on the next day of the number of OP Units issuable upon such conversion.

 

(ii)         Exchange.
OP Units issuable upon a conversion of the Special Limited Partner Interest as set forth in this Section 8.7(a) shall be exchangeable
for cash or, at the option of the Partnership, for shares of Common Stock pursuant to Section 8.6.

 

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(iii)        Impact
of Conversion for Purposes of Subparagraph 1(c)(iii) of Exhibit B. For purposes of making future allocations under subparagraph
1(c)(iii) of Exhibit B, the Special Limited Partner’s Capital Account balance shall be reduced, as of the date of conversion,
by an amount equal to the product of (i) the number of OP Units issued in the conversion multiplied by (ii) the product of (A)
the Value of one share of Common Stock on the date of conversion multiplied by (B) the Exchange Factor.

 

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

 

Article
9

BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

9.1         Records
and Accounting

 

(a)          The
General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents required
to be maintained by the Act and other books and records deemed by the General Partner to be appropriate with respect to the Partnership’s
business, including all books and records necessary for the General Partner to comply with applicable REIT Requirements and to
provide to the Limited Partners and the Special Limited Partner any information, lists and copies of documents required to be provided
pursuant to Sections 8.5(a) and 9.3 hereof.

 

(b)          Any
records maintained by or on behalf of the Partnership in the regular course of its business may be kept on, or be in the form of,
punch cards, magnetic tape, photographs, 

 

    	50

    	 

    

 

micrographics or any other information storage device, provided that the records so maintained
are convertible into clearly legible written form within a reasonable period of time.

 

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

 

9.2         Fiscal
Year

 

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

 

9.3         Reports

 

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

 

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

 

(c)          Notwithstanding
the foregoing, the General Partner may deliver to the Limited Partners and the Special Limited Partner each of the reports described
above, as well as any other communications that it may provide hereunder, by E-mail or by any other electronic means.

 

Article
10

TAX MATTERS

 

10.1       Preparation
of Tax Returns

 

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

 

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(b)          If
required under the Code or applicable state or local income tax law, the General Partner shall also arrange for the preparation
and timely filing of all returns of income, gains, deductions, losses and other items required of the Subsidiaries of the Partnership
for federal and state income tax purposes and shall use all reasonable efforts to furnish, within ninety (90) days of the close
of each taxable year, the tax information reasonably required by the Limited Partners and the Special Limited Partner for federal
and state income tax reporting purposes.

 

10.2       Tax
Elections

 

(a)          Except
as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available
election pursuant to the Code.

 

(b)          The
General Partner shall elect a permissible method (which need not be the same method for each item or property) of eliminating the
disparity between the Gross Asset Value and the tax basis for each item of property contributed to the Partnership or to a Subsidiary
of the Partnership pursuant to the Regulations promulgated under the provisions of Section 704(c) of the Code.

 

(c)          The
General Partner shall have the right to seek to revoke any tax election it makes, including the election under Section 754 of the
Code, upon the General Partner’s determination, in its sole and absolute discretion, that such revocation is in the best
interests of the Partners.

 

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

 

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10.3       Tax
Matters Partner

 

(a)          (i)           The General Partner shall be the “tax matters partner” of the Partnership for federal
income tax purposes.

 

(ii)          Pursuant to Section 6230(e) of the Code, upon receipt of notice from the Internal
Revenue Service of the beginning of an administrative proceeding with respect to the Partnership, the tax matters partner
shall furnish the Internal Revenue Service with the name, address, taxpayer identification number, and profit interest of
each of the Limited Partners, the Special Limited Partner and the Assignees; provided, however, that such
information is provided to the Partnership by the Limited Partners, the Special Limited Partner and the Assignees.

 

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

 

(A)         to
enter into any settlement with the Internal Revenue Service with respect to any administrative or judicial proceedings for the
adjustment of Partnership items required to be taken into account by a Partner (including the Special Limited Partner) for income
tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings being
referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state that
such agreement shall bind all Partners (including the Special Limited Partner), except that such settlement agreement shall not
bind any Partner or the Special Limited Partner

 

(1)         who
(within the time prescribed pursuant to the Code and Regulations) files a statement with the Internal Revenue Service providing
that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner or the
Special Limited Partner; or

 

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

 

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

 

(C)         to
intervene in any action brought by any other Partner or the Special Limited Partner for judicial review of a final adjustment;

 

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

 

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

 

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

 

The taking of any action and the incurring of any
expense by the tax matters partner in connection with any such proceeding, except to the extent required by law, is a matter in
the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner
set forth in Section 7.6 of this Agreement shall be fully applicable to the tax matters partner in its capacity as such.

 

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

 

(ii)         All
third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting
fees and expenses) shall be borne by the Partnership.

 

(iii)     
   Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm to
assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership for
such services is reasonable.

 

10.4       Organizational
Expenses

 

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

 

10.5       Withholding

 

(a)          Each
Limited Partner and the Special Limited Partner hereby authorizes the Partnership to withhold from, or pay on behalf of or with
respect to, such Limited Partner or the Special Limited Partner any amount of federal, state, local, or foreign taxes that the
General Partner determines that the Partnership is required to withhold or pay with respect to any amount distributable or allocable
to such Limited Partner or the Special Limited Partner pursuant to this Agreement, including any taxes required to be withheld
or paid by the Partnership pursuant to Sections 1441, 1442, 1445, or 1446 of the Code.

 

(b)         (i)           Any amount paid on behalf of or with respect to a Limited Partner or the Special Limited Partner
shall constitute a loan by the Partnership to such Limited Partner or the

 

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Special Limited Partner, which loan shall
be repaid by such Limited Partner or the Special Limited Partner as the case may be within fifteen (15) days after notice from
the General Partner that such payment must be made unless

 

(A)        the
Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner or the Special Limited
Partner; or

 

(B)         the
General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds
of the Partnership which would, but for such payment, be distributed to the Limited Partner or the Special Limited Partner.

 

(ii)         Any
amounts withheld pursuant to the foregoing clauses (i)(A) or (B) shall be treated as having been distributed to the Limited Partner
or the Special Limited Partner.

 

(c)          (i)      
    Each Limited Partner and the Special Limited Partner hereby unconditionally and irrevocably grant to
the Partnership a security interest in such Limited Partner’s Partnership Interest and such Special Limited
Partner’s Special Limited Partner Interest, as the case may be, to secure such Limited Partner’s or Special
Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this Section
10.5.

 

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

 

(B)         Without
limitation, in such event, the General Partner shall have the right to receive distributions that would otherwise be distributable
to such defaulting Limited Partner or Special Limited Partner until such time as such loan, together with all interest thereon,
has been paid in full, and any such distributions so received by the General Partner shall be treated as having been distributed
to the defaulting Limited Partner or Special Limited Partner and immediately paid by the defaulting Limited Partner or Special
Limited Partner to the General Partner in repayment of such loan.

 

(iii)        Any
amount payable by a Limited Partner or the Special Limited Partner hereunder shall bear interest at the highest base or prime rate
of interest published from time to time by The Wall Street Journal, plus four (4) percentage points, but in no event higher than
the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount is due (i.e., fifteen
(15) days after demand) until such amount is paid in full.

 

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

 

Article
11

TRANSFERS AND WITHDRAWALS

 

11.1       Transfer

 

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

 

(ii)          The
term “Transfer” when used in this Article 11 does not include any exchange of Partnership Units for cash or Common
Stock pursuant to the Exchange Rights Agreement.

 

(b)         (i)            No Partnership Interest shall be Transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article 11.

 

(ii)          Any
Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article 11 shall be null and void.

 

11.2       Transfer
of the General Partner’s General Partner Interest

 

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

 

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

 

(ii)          if
such Transfer is to an entity which is wholly owned by the General Partner and is a Qualified REIT Subsidiary as defined in Section
856(i) of the Code; or

 

(iii)         in
connection with a transaction described in Section 11.2(c) or 11.2(d) (as applicable)

 

(b)          If
the General Partner withdraws as general partner of the Partnership in accordance with Section 11.2(a), the General Partner’s
General Partner Interest shall immediately be converted into a Limited Partner Interest.

 

(c)          Except
as otherwise provided in Section 11.2(d), the General Partner shall not engage in any merger, consolidation or other combination
of the General Partner with or into another Person (other than a merger in which the General Partner is the surviving entity)
or sale

 

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of all or substantially all of its assets, or any reclassification, or any recapitalization of outstanding Common Stock (other
than a change in par value, or from par value to no par value, or as a result of a subdivision or combination of Common Stock)
(a “Transaction”), unless

  

(i)          in
connection with the Transaction all Limited Partners will either receive, or will have the right to elect to receive, for each
Partnership Unit an amount of cash, securities, or other property equal to the product of the Exchange Factor and the amount of
cash, securities or other property or value paid in the Transaction to or received by a holder of one share of Common Stock corresponding
to such Partnership Unit in consideration of one share of Common Stock at any time during the period from and after the date on
which the Transaction is consummated; provided, however, that if, in connection with the Transaction, a purchase, tender
or exchange offer (“Offer”) shall have been made to and accepted by the holders of more than 50% of the outstanding
Common Stock, each holder of Partnership Units shall be given the option to exchange its Partnership Units for the amount of cash,
securities, or other property which a Limited Partner would have received had it

 

(A)        exercised
its Exchange Right and

 

(B)         sold,
tendered or exchanged pursuant to the Offer the Common Stock received upon exercise of the Exchange Right immediately prior to
the expiration of the Offer.

 

The foregoing is not intended
to, and does not, affect the ability of (i) a Stockholder of the General Partner to sell its stock in the General Partner or (ii)
the General Partner to perform its obligations (under agreement or otherwise) to such Stockholders (including the fulfillment of
any obligations with respect to registering the sale of stock under applicable securities laws).

 

(d)          (i)           Notwithstanding Section 11.2(c), the General Partner may merge into or consolidate with another entity if
immediately after such merger or consolidation

 

(A)        substantially
all of the assets of the successor or surviving entity (the “Surviving General Partner”), other than Partnership
Units held by the General Partner, are contributed to the Partnership as a Capital Contribution in exchange for Partnership Units
with a fair market value equal to the value of the assets so contributed as determined by the Surviving General Partner in good
faith and

 

(B)         the
Surviving General Partner expressly agrees to assume all obligations of the General Partner hereunder.

 

(ii)          (A)         Upon such contribution and assumption, the
Surviving General Partner shall have the right and duty to amend this Agreement and the Exchange Rights Agreement as set
forth in this Section 11.2(d).

 

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

 

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Unit after any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably
possible.

 

(2)         Such
calculation shall take into account, among other things, the kind and amount of securities, cash and other property that was receivable
upon such merger or consolidation by a holder of Common Stock or options, warrants or other rights relating thereto, and which
a holder of Partnership Units could have acquired had such Partnership Units been redeemed for Common Stock immediately prior to
such merger or consolidation.

 

(C)         Such
amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as
may be practicable to the adjustments provided for with respect to the Exchange Factor.

 

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

 

11.3       Limited
Partners’ Rights to Transfer

 

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

 

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

 

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

 

(c)          The
General Partner may prohibit any Transfer by a Limited Partner of its Partnership Units if it reasonably believes (based on the
advice of counsel) such Transfer would require filing of a registration statement under the Securities Act of 1933, as amended,
or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the Partnership
Units.

 

(d)          No
Transfer by a Limited Partner of its Partnership Units may be made to any Person if

 

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(i)          it
would adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the General Partner
to any additional taxes under Section 857 or Section 4981 of the Code;

 

(ii)         it
would result in the Partnership being treated as an association taxable as a corporation for federal income tax purposes;

 

(iii)        such
Transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest”
(as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in Section 4975(c) of the Code);

 

(iv)        such
Transfer would, in the opinion of legal counsel for the Partnership, cause any portion of the assets of the Partnership to constitute
assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101;

 

(v)         such
Transfer would subject the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisors Act of 1940
or the Employee Retirement Income Security Act of 1974, each as amended;

 

(vi)        such
Transfer is a sale or exchange, and such sale or exchange would, when aggregated with all other sales and exchanges during the
12-month period ending on the date of the proposed Transfer, result in 50% or more of the interests in Partnership capital and
profits being sold or exchanged during such 12-month period without the consent of the General Partner, which consent may be withheld
in its sole and absolute discretion; or

 

(vii)       such
Transfer is effectuated through an “established securities market” or a “secondary market (or the substantial
equivalent thereof)” within the meaning of Section 7704 of the Code.

 

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

 

(f)          Any
Transfer in contravention of any of the provisions of this Section 11.3 shall be void and ineffectual and shall not be binding
upon, or recognized by, the Partnership.

 

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11.4       Substituted
Limited Partners

 

(a)          (i)           No
Limited Partner shall have the right to substitute a Permitted Transferee for a Limited Partner in its place.

 

(ii)         The
General Partner shall, however, have the right to consent to the admission of a Permitted Transferee of the Partnership Interest
of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld by
the General Partner in its sole and absolute discretion.

 

(iii)        The
General Partner’s failure or refusal to permit such transferee to become a Substituted Limited Partner shall not give rise
to any cause of action against the Partnership or any Partner.

 

(b)          A
transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights
and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement.

 

(c)          (i)           No
Permitted Transferee will be admitted as a Substituted Limited Partner, unless such transferee has furnished to the General Partner
evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and, as
it relates to the Substituted Limited Partners, the Exchange Rights Agreement, including the power of attorney granted in Section
2.4 hereof.

 

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

 

11.5       Assignees

 

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

 

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

 

(c)          If
any such transferee desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all
of the provisions of this Article 11 to the 

 

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same extent and in the same manner as any Limited Partner desiring to make an assignment
of Partnership Units.

 

11.6       General
Provisions

 

(a)          No
Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer of all of such Limited Partner’s
Partnership Units in accordance with this Article 11 or, as it relates to the Limited Partners, pursuant to exchange of all of
its Partnership Units pursuant to the applicable Exchange Rights Agreement.

 

(b)          (i)           Any
Limited Partner which shall Transfer all of its Partnership Units in a Transfer permitted pursuant to this Article 11 shall cease
to be a Limited Partner upon the admission of all Assignees of such Partnership Units as Substituted Limited Partners.

 

(ii)          Similarly,
any Limited Partner which shall Transfer all of its Partnership Units pursuant to an exchange of all of its Partnership Units pursuant
to an Exchange Rights Agreement shall cease to be a Limited Partner.

 

(c)          Other
than pursuant to the Exchange Rights Agreement or with the consent of the General Partner, transfers pursuant to this Article 11
may only be made as of the first day of a fiscal quarter of the Partnership.

 

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

 

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

 

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

 

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

 

(f)          The
General Partner shall monitor the transfers of interests in the Partnership to determine (i) if such interests are being traded
on an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within
the meaning of Section 7704 of the Code; and (ii) whether additional transfers of interests would result in the Partnership being
unable to qualify for at least one of the “safe harbors” set forth in Section 1.7704-1 of the Regulations (or such
other guidance subsequently published by the IRS setting forth safe harbors under which interests will not be treated as “readily
tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the
“PTP Safe Harbors”). The General Partner shall take all steps reasonably necessary or appropriate to prevent
any trading of interests or any recognition by the Partnership of transfers made on such markets and, except as otherwise provided
herein, to insure that at least one of the PTP Safe Harbors is met, including limiting or restricting the right of any holder of
a Partnership Unit to exercise the Exchange Right in accordance with the terms of the applicable Exchange Rights Agreement to the
extent that the General Partner determines in its reasonable discretion (which may include obtaining an opinion of outside tax
counsel) that, in the absence of such limitation 

 

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or restriction, there is a significant risk that the Partnership will be treated
as a “publicly traded partnership” and, by reason thereof, taxable as a corporation.

  

Article
12

ADMISSION OF PARTNERS

 

12.1       Admission
of Successor General Partner

 

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

 

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

 

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

 

(i)           the
Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms
and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required
or appropriate in order to effect the admission of such Person as a General Partner;

 

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

 

(iii)         counsel
for the Partnership shall have rendered an opinion (relying on such opinions from other counsel as may be necessary) that the admission
of the person to be admitted as a substitute or additional General Partner is in conformity with the Act, that none of the actions
taken in connection with the admission of such Person as a substitute or additional General Partner will cause

 

(A)         the
Partnership to be classified other than as a partnership for federal income tax purposes, or

 

(B)         the
loss of any Limited Partner’s limited liability.

 

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

 

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12.2       Admission
of Additional Limited Partners

 

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

 

(i)           evidence
of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement and the applicable
Exchange Rights Agreement, including the power of attorney granted in Section 2.4 hereof, and

 

(ii)          such
other documents or instruments as may be required in the discretion of the General Partner in order to effect such Person’s
admission as an Additional Limited Partner.

 

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

 

(ii)          The
admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person
is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission.

 

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

 

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

 

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

 

12.3       Amendment
of Agreement and Certificate of Limited Partnership

 

For the admission to the Partnership of
any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership
and, if necessary, to prepare as soon as practical an amendment of this Agreement (including an 

 

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amendment of Exhibit A) and, if
required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney
granted pursuant to Section 2.4 hereof.

 

Article
13

DISSOLUTION, LIQUIDATION AND TERMINATION

 

13.1       Dissolution

 

(a)          The
Partnership shall not be dissolved by the admission of Substituted Limited Partners, Additional Limited Partners or by the admission
of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any
successor General Partner shall continue the business of the Partnership.

 

(b)          The
Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following (each, a “Liquidating
Event”):

 

(i)           the
expiration of its term as provided in Section 2.5 hereof;

 

(ii)          an
event of withdrawal of the General Partner, as defined in the Act (other than an event of bankruptcy), unless, within ninety (90)
days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining Partners Consent
in writing to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal, of a successor
General Partner;

 

(iii)         an
election to dissolve the Partnership made by the General Partner, with the Consent of the Limited Partners holding at least a majority
of the Percentage Interest of the Limited Partners (including Limited Partner Interests held by the General Partner);

 

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

 

(v)          a
Capital Transaction;

 

(vi)         a
final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is bankrupt or
insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General
Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect, unless prior to the
entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in writing
to continue the business of the Partnership and to the appointment, effective as of a date prior to the date of such order or judgment,
of a substitute General Partner.

 

As used herein, a “majority in interest”
shall refer to Partners (excluding the General Partner) who hold more than fifty percent (50%) of the outstanding Percentage Interests
not held by the General Partner.

 

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13.2       Winding
Up

 

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

 

(ii)          No
Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the Partnership’s
business and affairs.

 

(iii)         The
General Partner, or, if there is no remaining General Partner, any Person elected by the Limited Partners holding at least a “majority
in interest” (the General Partner or such other Person being referred to herein as the “Liquidator”),
shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership’s
liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair
value thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner, include shares of common
stock or other securities of the General Partner) shall be applied and distributed in the following order:

 

(A)        First,
to the payment and discharge of all of the Partnership’s debts and liabilities to creditors other than the Partners;

 

(B)         Second,
to the payment and discharge of all of the Partnership’s debts and liabilities to the General Partner;

 

(C)         Third,
to the payment and discharge of all of the Partnership’s debts and liabilities to the other Partners; and

 

(D)        the
balance, if any, shall be distributed to all Partners (including the Special Limited Partner) with positive Capital Accounts in
accordance with their respective positive Capital Account balances after giving effect to all allocations in Exhibit B and all
prior distributions under Section 5.1.

 

(iv)         The
General Partner shall not receive any additional compensation for any services performed pursuant to this Article 13.

 

(v)          Any
distributions pursuant to this Section 13.2(a) shall be made by the end of the Partnership’s taxable year in which the liquidation
occurs (or, if later, within 90 days after the date of the liquidation).

 

(b)         (i)            Notwithstanding
the provisions of Section 13.2(a) hereof which require liquidation of the assets of the Partnership, but subject to the order of
priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale
of part or all of the Partnership’s assets would be impractical or would cause undue loss to the Partners (including the
Special Limited Partner), the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation
of any asset except those necessary to satisfy liabilities of the Partnership (including to those Partners, including the Special
Limited Partner, as creditors) or distribute to the Partners (including the Special Limited Partner), in lieu 

 

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of cash, as tenants
in common and in accordance with the provisions of Section 13.2(a) hereof, undivided interests in such Partnership assets as the
Liquidator deems not suitable for liquidation.

  

(ii)          Any
such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are
in the best interests of the Partners (including the Special Limited Partner), and shall be subject to such conditions relating
to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing
the operation of such properties at such time.

 

(iii)         The
Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method of valuation
as it may adopt.

 

(c)          In
the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the General Partner,
the Limited Partners and the Special Limited Partner pursuant to this Article 13 may be:

 

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

 

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

 

13.3       Obligation
to Contribute Deficit

 

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

 

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the capital of the Partnership the amount necessary to restore such deficit balance to
zero, but not to exceed an amount equal to the excess of the cash distributions of Net Sales Proceeds made (if any) to such holder
of Restricted Class B Units over the amount of Net Property Gain (including, to the extent necessary, individual items of income
and gain comprising Net Property Gain) and Liquidating Gain allocated to such holder of Restricted Class B Units in accordance
with subparagraph 1(c)(ii) of Exhibit B, in compliance with Section 1.704-1(b)(2)(ii)(b)(3) of the Regulations, which restoration
and contribution shall be before the later to occur of (x) the end of the taxable year in which the Partnership is liquidated,
or (y) ninety (90) days after the date of the liquidation of the Partnership, which amount shall be paid to creditors of the Partnership
or, if the amount contributed exceeds the amount due to creditors, shall be distributed to the Partners with positive Capital Account
balances.

 

13.4       Rights
of Limited Partners

 

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

 

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

 

13.5       Notice
of Dissolution

 

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

 

13.6       Termination
of Partnership and Cancellation of Certificate of Limited Partnership

 

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

 

13.7       Reasonable
Time for Winding-Up

 

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

 

13.8       Waiver
of Partition

 

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

 

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Article
14

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS

 

14.1       Amendments

 

(a)          The
General Partner shall have the power, without the consent of the Limited Partners or the Special Limited Partner, to amend this
Agreement except as set forth in Section 14.1(b) hereof. The General Partner shall provide notice to the Limited Partners and the
Special Limited Partner when any action under this Section 14.1(a) is taken in the next regular communication to the Limited Partners.

 

(b)          Notwithstanding
Section 14.1(a) hereof, this Agreement shall not be amended with respect to:

 

(i)           any
Partner , including the Special Limited Partner, adversely affected without the Consent of such Partner adversely affected if such
amendment would:

 

(A)       convert
a Limited Partner’s or the Special Limited Partner’s interest in the Partnership into a General Partner Interest;

 

(B)        modify
the limited liability of a Limited Partner or the Special Limited Partner in a manner adverse to such Limited Partner or the Special
Limited Partner; or

 

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

 

(ii)         any
Limited Partner adversely affected without the Consent of Limited Partners holding more than fifty percent (50%) of the outstanding
Percentage Interests of the Limited Partners adversely affected if such amendment would:

 

(A)       alter
or change Exchange Rights;

 

(B)        create
an obligation to make Capital Contributions not contemplated in this Agreement;

 

(C)        alter
or change the terms of this Agreement or the Exchange Rights Agreement regarding the rights of the limited partners with respect
to Business Combinations;

 

(D)        alter
or change the distribution and liquidation rights provided in Section 5 and 13 hereto, except as otherwise permitted under this
Agreement; or

 

(E)         amend
this Section 14.1(b)(ii).

 

(c)          Section
14.1(b)(i) does not require unanimous consent of all Partners adversely affected unless the amendment is to be effective against
all Partners adversely affected.

 

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(d)          Notwithstanding
Section 14.1(a) hereof, no provision of this Agreement shall be amended or modified without the Special Limited Partner’s
prior written consent if such amendment or modification (i) relates to the distributions, allocations or other rights and privileges
of the Special Limited Partner or (ii) would amend this Section 14.1(d).

 

14.2       Meetings
of the Partners

 

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

 

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

 

(iii)         Notice
of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30) days prior to the date
of such meeting.

 

(iv)         Partners
may vote in person or by proxy at such meeting.

 

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

 

(vi)         Except
as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Percentage Interests held by Partners
(including the General Partner) shall control.

 

(b)          (i)            Subject
to Section 14.2(a)(vi), any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting
if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or
such other percentage as is expressly required by this Agreement).

 

(ii)          Such
Consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote of a majority of
the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement).

 

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

 

(iv)         An
action so taken shall be deemed to have been taken at a meeting held on the effective date of the Consent as certified by the General
Partner.

 

(c)          (i)            Each
Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting.

 

(ii)          Every
proxy must be signed by the Partner or an attorney-in-fact and a copy thereof delivered to the Partnership.

 

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(iii)         No
proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy.

 

(iv)         Every
proxy shall be revocable at the pleasure of the Partner executing it, such revocation to be effective upon the General Partner’s
receipt of written notice of such revocation from the Partner executing such proxy.

 

(d)          (i)            Each meeting of the
Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant to such
rules for the conduct of the meeting as the General Partner or such other Person deems appropriate.

 

(ii)          Meetings
of Partners may be conducted in the same manner as meetings of the Stockholders of the General Partner and may be held at the same
time, and as part of, meetings of the Stockholders of the General Partner.

 

Article
15

GENERAL PROVISIONS

 

15.1       Addresses
and Notice

 

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

 

15.2       Titles
and Captions

 

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

 

15.3       Pronouns
and Plurals

 

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

 

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15.4       Further
Action

 

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

 

15.5       Binding
Effect

 

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

 

15.6       Creditors

 

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

 

15.7       Waiver

 

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

 

15.8       Counterparts

 

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

 

15.9       Applicable
Law

 

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

 

15.10     Invalidity
of Provisions

 

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

 

15.11     Entire
Agreement

 

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

 

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15.12     Merger

 

Notwithstanding any provision of this Agreement,
the General Partner, without the consent of the Limited Partners or any other Person, may (i) merge or consolidate the Partnership
with or into any other domestic or foreign partnership, limited partnership, limited liability company, corporation or other Person
or (ii) sell all or substantially all of the assets of the Partnership and may amend this Agreement in any manner or adopt a new
limited partnership agreement for the Partnership in connection with any such transaction consistent with the provisions of this
Section 15.12.

 

15.13     No
Rights as Stockholders

 

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

 

Article
16

CLASS B UNITS

 

16.1       Designation
and Number

 

(a)          A
series of Partnership Units in the Partnership, designated as the “Class B Units,” is hereby established. Except as
set forth in this Article 16, Class B Units shall have the same rights, privileges and preferences as the OP Units. Subject to
the provisions of this Article 16 and the special provisions of subparagraph 1(c)(ii) of Exhibit B, Class B Units shall
be treated as Partnership Units, with all of the rights, privileges and obligations attendant thereto. In connection with services
provided by the Advisor under the Advisory Agreement, the General Partner shall cause the Partnership to issue to the Initial Limited
Partner within thirty (30) days after the end of each Quarter a number of Class B Units equal to the quotient of: (i) the excess
of (A) the product of (y) the Cost of Assets multiplied by (z) 0.1875%, over (B) any amounts payable as an Oversight
Fee for such Quarter divided by (ii) the Value of one share of Common Stock as of the last day of such Quarter; provided,
that if the amounts payable as an Oversight Fee for such Quarter exceed the amount determined under clause (A) for such Quarter
(an “Excess Oversight Fee”), no Class B Units shall be issued for such Quarter and the Excess Oversight Fee
shall be carried forward to the next succeeding Quarter and included with and treated as amounts payable as an Oversight Fee for
such Quarter for purposes of determining the amount of Class B Units issuable for such Quarter; provided further, that the
sum of (I) the amounts determined under clause (i) for a calendar year plus (II) the amounts payable as an Oversight Fee
for such calendar year, shall not be less than 0.75% of the Cost of Assets for such calendar year; provided further,
that each quarterly issuance of Class B Units shall be subject to the approval of the General Partner’s board of directors.

 

(b)          It
is intended that the Partnership shall maintain at all times a one-to-one correspondence between Class B Units and OP Units for
conversion and other purposes. If an Adjustment Event (as defined below) occurs, then the General Partner shall make a

 

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corresponding adjustment to the Class B
Units to maintain a one-for-one conversion and economic equivalence ratio between OP Units and Class B Units. The following shall
be “Adjustment Events:” (A) the Partnership makes a distribution on all outstanding OP Units in Partnership
Units, (B) the Partnership subdivides the outstanding OP Units into a greater number of units or combines the outstanding OP Units
into a smaller number of units, or (C) the Partnership issues any Partnership Units in exchange for its outstanding OP Units by
way of a reclassification or recapitalization of its OP Units. If more than one Adjustment Event occurs, the adjustment to the
Class B Units need be made only once using a single formula that takes into account each and every Adjustment Event as if all
Adjustment Events occurred simultaneously. For the avoidance of doubt, the following events shall not be Adjustment Events: (x)
the issuance of Partnership Units in a financing, reorganization, acquisition or other similar business transaction, (y) the issuance
of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance
of any Partnership Units in respect of a capital contribution to the Partnership, including a contribution by the General Partner
of proceeds from the sale of securities by the General Partner. If the Partnership takes an action affecting the OP Units other
than actions specifically described above as Adjustment Events and, in the opinion of the General Partner such action would require
an adjustment to the Class B Units to maintain the one-to-one correspondence described above, the General Partner shall have the
right to make such adjustment to the Class B Units, to the extent permitted by law, in such manner and at such time as the General
Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the Class
B Units as herein provided, the Partnership shall promptly file in the books and records of the Partnership an officer’s
certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall
be conclusive evidence of the correctness of such adjustment absent manifest error. Promptly after the filing of such certificate,
the Partnership shall mail a notice to each holder of Class B Units setting forth the adjustment to his, her or its Class B Units
and the effective date of such adjustment.

 

16.2       Special
Provisions. Class B Units shall be subject to the following special provisions:

 

(a)          Restrictions
and Forfeiture.

 

(i)          All
Class B Units when issued shall be subject to forfeiture and shall constitute “Restricted Class B Units” and
shall remain subject to forfeiture as provided in this Section 16.2(a) until the requirements of this Section 16.2(a) have been
satisfied.

 

(ii)         One
hundred percent (100%) of the outstanding Restricted Class B Units shall no longer be subject to forfeiture and shall constitute
“Unrestricted Class B Units” at such time as:

 

(A)        the
value of the Partnership’s assets (as determined by the General Partner) plus all distributions made under Sections 5.1(a),
5.1(b)(i) and 5.1(b)(ii) equals the cumulative Net Investment plus the Class B Priority Return on such cumulative Net Investment
(the “Economic Hurdle”); provided, that in the event of an OP Unit Transaction the determination of the
value of the Partnership’s assets shall take into account the offering price or transaction value of the Common Stock, as
appropriate; and

 

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(B)         a
Liquidity Event occurs concurrently with or subsequent to the Economic Hurdle being met.

 

(iii)        If
the Advisory Agreement is terminated for any reason other than pursuant to a Termination Without Cause, any outstanding Restricted
Class B Units shall be forfeited immediately. If the Advisory Agreement is terminated pursuant to a Termination Without Cause prior
to the date on which the Economic Hurdle has been met, any outstanding Restricted Class B Units shall be forfeited immediately.
Upon such forfeiture, such Restricted Class B Units shall immediately, and without any further action, be treated as cancelled
and no longer outstanding for any purpose. No consideration or other payment shall be due with respect to any Class B Units that
have been forfeited. In connection with any forfeiture of Class B Units, the balance of the Capital Account of a holder of Class
B Units, if any, shall be reduced by the amount of the Capital Account attributable to the forfeited Class B Units, and such reduction
shall be reallocated to all holders of OP Units, pro rata in accordance with their respective Percentage Interests with respect
to OP Units.

 

(iv)        The
General Partner may in its sole discretion provide for the acceleration, waiver or change of the forfeiture provisions contained
in this Section 16.2(a), in whole or in part, based on such factors or criteria as the General Partner may determine.

 

(b)          Distributions.
The holders of Class B Units shall be entitled to (i) current distributions of Cash Available for Distribution pursuant to Section
5.1(a), (ii) distributions, if any, of Net Sales Proceeds pursuant to Section 5.1(b)(iii), and (iii) distributions in liquidation
of the Partnership pursuant to Section 13.2.

 

(c)          Allocations.
Holders of Class B Units shall be entitled to certain special allocations of gain under subparagraph 1(c)(ii) of Exhibit B.

 

(d)          Exchange
Right. The right to exchange all or a portion of Partnership Units for cash or, at the option of the Partnership, for shares
of Common Stock provided to Limited Partners under Section 8.6 hereof shall not apply with respect to Class B Units unless
and until the Class B Units are converted to OP Units as provided in clause (e) below and Section 16.4 hereof.

 

(e)          Conversion
to OP Units. Unrestricted Class B Units are eligible to be converted into OP Units in accordance with Section 16.4 hereof.

 

16.3       Voting

 

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

 

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power of the Class B Units
or the holders of Class B Units as such, unless such amendment, alteration, or repeal affects equally, ratably and proportionately
the rights, privileges and voting powers of the Limited Partners; but subject, in any event, to the following provisions:

  

(i)          With
respect to any OP Unit Transaction, so long as the Class B Units are treated in accordance with Section 16.4(c) hereof, the
consummation of such OP Unit Transaction shall not be deemed to materially and adversely affect such rights, preferences, privileges
or voting powers of the Class B Units or the holders of Class B Units as such; and

 

(ii)         Any
creation or issuance of any Partnership Units or of any class or series of Partnership Interest including additional OP Units or
Class B Units whether ranking senior to, junior to, or on a parity with the Class B Units with respect to distributions and the
distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect such
rights, preferences, privileges or voting powers of the Class B Units or the holders of Class B Units as such.

 

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

 

16.4       Conversion
of Class B Units

 

(a)          Conversion.
Restricted Class B Units shall not be convertible into OP Units until they become Unrestricted Class B Units. At such time as the
Economic Capital Account Balance attributable to an Unrestricted Class B Unit is equal to the OP Unit Economic Balance, each such
balance determined on a per unit basis as of the effective date of conversion (the “Conversion Date”), such
Unrestricted Class B Unit shall automatically convert into one fully paid and non-assessable OP Unit, giving effect to all adjustments
(if any) made pursuant to Section 16.1 hereof; provided, that an Unrestricted Class B Unit shall not be convertible
into OP Units if the Economic Capital Account Balance attributable to such Unrestricted Class B Unit is negative. Each holder of
Class B Units covenants and agrees with the Partnership that all Unrestricted Class B Units to be converted pursuant to this Section 16.4
shall be free and clear of all liens. The conversion of Unrestricted Class B Units shall occur automatically after the close of
business on the applicable Conversion Date without any action on the part of such holder of Unrestricted Class B Units, as of which
time such holder of Unrestricted Class B Units shall be credited on the books and records of the Partnership with the issuance
as of the opening of business on the next day of the number of OP Units issuable upon such conversion. For purposes of determining
the Economic Capital Account Balance attributable to an Unrestricted Class B Unit, allocations pursuant to subparagraph 1(c)(ii)
of Exhibit B shall be made in such a manner so as to allow the greatest number of Class B Units to convert pursuant to this
Section 16.4 at any time.

 

(b)          Adjustment
to Gross Asset Value.

 

(i)          The
General Partner shall provide the holders of Class B Units the opportunity but not the obligation to make Capital Contributions
to the Partnership in

 

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exchange for OP Units in order to cause
an adjustment to the Gross Asset Value of the Partnership’s assets within the meaning of paragraph (b)(i) of the definition
of Gross Asset Value up to two (2) times each fiscal year including:

 

(A)         if
the Partnership or the General Partner shall be a party to any OP Unit Transaction; provided, that the General Partner shall
give each holder of Class B Units written notice of such OP Unit Transaction at least thirty (30) days prior to entering into any
definitive agreement pursuant to which the OP Unit Transaction would be consummated;

 

(B)         upon
a Listing; provided, that the General Partner shall give each holder of Class B Units written notice of such Listing at
least thirty (30) days prior to such Listing; or

 

(C)         upon
a Termination Without Cause; provided, that the General Partner shall give each holder of Class B Units written notice of
such Termination Without Cause at least thirty (30) days prior to such Termination Without Cause.

 

(ii)         For
purposes of clause (i) of this Section 16.4(b), the value of each OP Unit issued in order to cause an adjustment to the Gross Asset
Value of the Partnership’s assets shall be an amount equal to the product of (y) the Value of a share of Common Stock as
of the date the holder of Class B Units makes a Capital Contribution to the Partnership multiplied by (z) the Exchange Factor.

 

(iii)        For
the avoidance of doubt, the issuance of Class B Units shall be treated as an event allowing for an adjustment to the Gross Asset
Value of the Partnership’s assets within the meaning of paragraph (b)(iv) of the definition of Gross Asset Value.

 

(c)          Impact
of Conversion for Purposes of Subparagraph 1(c)(ii) of Exhibit B. For purposes of making future allocations under subparagraph
1(c)(ii) of Exhibit B, the portion of the Economic Capital Account Balance of the applicable holder of Unrestricted Class
B Units that is treated as attributable to his, her or its Class B Units shall be reduced, as of the date of conversion, by the
product of the number of Unrestricted Class B Units converted and the OP Unit Economic Balance.

 

(d)          OP
Unit Transactions. Immediately prior to or concurrent with an OP Unit Transaction the maximum number of Class B Units then
eligible for conversion (in accordance with the provisions of Section 16.4(a)) shall automatically be converted into an equal
number of OP Units, giving effect to all adjustments (if any) made pursuant to Section 16.1 hereof, taking into account any allocations
that occur in connection with the OP Unit Transaction or that would occur in connection with the OP Unit Transaction if the assets
of the Partnership were sold at the OP Unit Transaction price or, if applicable, at a value determined by the General Partner
in good faith using the value attributed to the Partnership Units in the context of the OP Unit Transaction (in which case the
Conversion Date shall be the effective date of the OP Unit Transaction). In anticipation of such OP Unit Transaction, the Partnership
shall use commercially reasonable efforts to cause each holder of Class B Units to be afforded the right to receive in connection
with such OP Unit Transaction in consideration for the OP Units into which his, her or its Class

 

    	77

    	 

    

 

B Units will be converted the
same kind and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such
OP Unit Transaction by a holder of the same number of OP Units, assuming such holder of OP Units is not a Person with which the
Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer
was made, as the case may be (a “Constituent Person”), or an affiliate of a Constituent Person. In the event
that holders of OP Units have the opportunity to elect the form or type of consideration to be received upon consummation of the
OP Unit Transaction, prior to such OP Unit Transaction the General Partner shall give prompt written notice to each holder of
Class B Units of such election, and shall use commercially reasonable efforts to afford the holders of Class B Units the right
to elect, by written notice to the General Partner, the form or type of consideration to be received upon conversion of each Class
B Unit held by such holder into OP Units in connection with such OP Unit Transaction. If a holder of Class B Units fails to make
such an election, such holder (and any of its transferees) shall receive upon conversion of each Class B Unit held by him, her
or it (or by any of his, her or its transferees) the same kind and amount of consideration that a holder of an OP Unit would receive
if such OP Unit holder failed to make such an election. The Partnership shall use commercially reasonable effort to cause the
terms of any OP Unit Transaction to be consistent with the provisions of this Section 16.4(d) and to enter into an agreement
with the successor or purchasing entity, as the case may be, for the benefit of any holders of Class B Units whose Class B Units
will not be converted into OP Units in connection with the OP Unit Transaction that will (i) contain provisions enabling
the holders of Class B Units that remain outstanding after such OP Unit Transaction to convert their Class B Units into securities
as comparable as reasonably possible under the circumstances to the OP Units and (ii) preserve as far as reasonably possible
under the circumstances the distribution, special allocation, conversion, and other rights set forth in this Agreement for the
benefit of the holders of Class B Units.

 

16.5       Profits
Interests

 

(a)          Class
B Units are intended to qualify as a “profits interest” in the Partnership issued to a new or existing Partner in a
partner capacity for services performed or to be performed to or for the benefit of the Partnership within the meaning of Rev.
Proc. 93-27, 1993-2 C.B. 343, and Rev. Proc. 2001-43, 2001-2 C.B. 191, the Code, the Regulations, and other future guidance provided
by the IRS with respect thereto, and the allocations under subparagraph 1(c)(ii) of Exhibit B shall be interpreted in a manner
that is consistent therewith.

 

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

 

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(c)          The
Partners agree that if a Safe Harbor Election is made by the General Partner, (A) each Class B Unit issued hereunder with respect
to which the Safe Harbor Election is available is a Safe Harbor Interest, (B) each Class B Unit represents a profits interest received
for services rendered or to be rendered to or for the benefit of the Partnership by such holder of Class B Units in his, her or
its capacity as a Partner or in anticipation of becoming a Partner, and (C) the fair market value of each Class B Unit issued by
the Partnership upon receipt by such holder of Class B Units as of the date of issuance is zero (plus the amount, if any, of any
Capital Contributions made to the Partnership by such holder of Class B Units in connection with the issuance of such Class B Unit),
representing the liquidation value of such interest upon receipt (with such valuation being consented to and hereby approved by
all Partners).

 

(d)          Each
Partner, by signing this Agreement or by accepting such transfer, hereby agrees (A) to comply with all requirements of any Safe
Harbor Election made by the General Partner with respect to each holder of Class B Units’ Safe Harbor Interest, (B) that
each holder of Class B Units shall take into account of all items of income, gain, loss, deduction and credit associated with its
Class B Units as if they were fully vested in computing its federal income tax liability for the entire period during which it
holds the Class B Units, (C) that neither the Partnership nor any Partner shall claim a deduction (as wages, compensation or otherwise)
for the fair market value of such Class B Units issued to a holder of such Class B Units, either at the time of grant of the Class
B Units or at the time the Class B Units becomes substantially vested, and (D) that to the extent that such profits interest is
forfeited after the date hereof, the Partnership shall make special forfeiture allocations of gross items of income, deduction
or loss (including, as may be permitted by or under Regulations (or other rules promulgated) to be adopted, notional items of income,
deduction or loss) in accordance with the Regulations to be adopted under Sections 704(b) and 83 of the Code.

 

(e)          The
General Partner shall file or cause the Partnership to file all returns, reports and other documentation as may be required, as
reasonably determined by the General Partner, to perfect and maintain any Safe Harbor Election made by the General Partner with
respect to granting of each holder of Class B Units’ Safe Harbor Interest.

 

(f)          The
General Partner is hereby authorized and empowered, without further vote or action of the Partners, to amend this Agreement to
the extent necessary or helpful in accordance with the advice of Partnership tax counsel or accountants to sustain the Partnership’s
position that (A) it has complied with the Safe Harbor requirements in order to provide for a Safe Harbor Election and it has ability
to maintain the same, or (B) the issuance of the Class B Units is not a taxable event with respect to the holders of Class B Units,
and the General Partner shall have the authority to execute any such amendment by and on behalf of each Partner pursuant to the
power of attorney granted by this Agreement. Any undertaking by any Partner necessary or desirable to (A) enable or preserve a
Safe Harbor Election or (B) otherwise to prevent the issuance of Class B Units from being a taxable event with respect to the holders
of Class B Units may be reflected in such amendments and, to the extent so reflected, shall be binding on each Partner.

 

(g)          Each
Partner agrees to cooperate with the General Partner to perfect and maintain any Safe Harbor Election, and to timely execute and
deliver any documentation with respect thereto reasonably requested by the General Partner, at the expense of the Partnership.

 

    	79

    	 

    

 

(h)          No
Transfer of any interest in the Partnership by a Partner shall be effective unless prior to such Transfer, the assignee or intended
recipient of such interest shall have agreed in writing to be bound by the provisions of Section 10.2(d) and this Section 16.5,
in a form reasonably satisfactory to the General Partner.

 

(i)          The
provisions of this Section 16.5 shall apply regardless of whether or not a holder of Class B Units files an election pursuant to
Section 83(b) of the Code.

 

(j)          The
General Partner may amend this Section 16.5 as it deems necessary or appropriate to maximize the tax benefit of the issuance of
Class B Units to any holder of Class B Units if there are changes in the law or Regulations concerning the issuance of partnership
interests for services.

 

[SIGNATURE PAGE FOLLOWS]

 

    	80

    	 

    

 

Signature Page to Amended and
Restated Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership, L.P., among the undersigned
and the other parties thereto.

 

	 	GENERAL PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.
	 	 	 
	 	By:	 /s/ Edward M. Weil, Jr.
	 	 	Name:   Edward M. Weil, Jr.
	 	 	Title:     President
	 	 	 
	 	INITIAL LIMITED PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL RETAIL ADVISOR, LLC
	 	 
	 	By:   American Realty Capital Retail Special Limited Partnership, LLC, its Member
	 	 	 
	 	By:	American Realty Capital IV, LLC,
	 	 	its Managing Member
	 	 	 
	 	By: AR Capital, LLC, its Sole Member
	 	 	 
	 	By:	 /s/ Nicholas S. Schorsch
	 	 	Name:   Nicholas S. Schorsch
	 	 	Title:     Manager
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL RETAIL ADVISOR, LLC
	 	 
	 	By:   American Realty Capital Retail Special Limited Partnership, LLC, its Member
	 	 	 
	 	By:	American Realty Capital IV, LLC,
	 	 	its Managing Member
	 	 	 
	 	By:	 /s/ Nicholas S. Schorsch
	 	 	Name:   Nicholas S. Schorsch
	 	 	Title:     Manager

 

    	 

    	 

    

 

Corporate/Limited Liability Company
Additional Limited Partner Signature Page to Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership,
L.P., among the undersigned and the other parties thereto.

 

	Dated:  ____________ __, 20___	[Name of Corporation/LLC]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Individual Additional Limited Partner
Signature Page to Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership, L.P., among the undersigned
and the other parties thereto.

 

	Dated:  ____________ __, 20___	 
	 	 
	 	 

 

    	 

    	 

    

 

Partnership Limited Partner Signature
Page to Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership, L.P., among the undersigned and
the other parties thereto.

 

	Dated:  ____________ __, 20___	[Name of LP]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Exhibit A

 

Partners’ Contributions and Partnership
Interests

 

	Name and Address of Partner	 	Type of Interest	 	Capital
 Contribution	 	 	Number of
 Partnership Units	 	 	Percentage
 Interest	 
	American Realty Capital – Retail 

Centers of America, Inc. 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	405 Park Avenue 

New York, New York 10022	 	General Partner Interest	 	$	200,000	 	 	 	20,000	 	 	 	99	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	American Realty Capital Retail 

Advisor, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	405 Park Avenue 

New York, New York 10022	 	Limited Partner Interest	 	$	2,020	 	 	 	202	 	 	 	1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	American Realty Capital Retail 

Advisor, LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	405 Park Avenue 

New York, New York 10022	 	Special Limited Partner Interest	 	 	None	 	 	 	Not applicable	 	 	 	Not applicable	 

 

    	A-1

    	 

    

 

Exhibit B

 

Allocations

 

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

 

1.           Allocations.

 

(a)          Allocations
of Net Income and Net Loss. Except as otherwise provided in this Agreement, after giving effect to the special allocations
in subparagraph 1(c) and paragraph 2, Net Income, Net Loss and, to the extent necessary, individual items of income, gain, loss
or deduction, of the Partnership for each fiscal year or other applicable period of the Partnership shall be allocated among the
General Partner and Limited Partners in accordance with their respective Percentage Interests.

 

(b)          Allocations
of Net Property Gain and Net Property Loss. Except as otherwise provided in this Agreement, after giving effect to the special
allocations in subparagraphs 1(c) and paragraph 2, Net Property Gain, Net Property Loss and, to the extent necessary, individual
items of income, gain, credit, loss and deduction comprising Net Property Gain and Net Property Loss of the Partnership for each
fiscal year or other applicable period shall be allocated among the Partners in a manner determined in the reasonable discretion
of the General Partner that will, as nearly as possible cause the Capital Account balance of each Partner at the end of such fiscal
year or other applicable period to equal (i) the amount of the distributions that would be made to such Partner pursuant to Section
5.1(b) of the Agreement if the Partnership were dissolved, its affairs wound up and its assets were sold for cash equal to their
Gross Asset Value, taking into account any adjustments thereto for such period, all Partnership liabilities were satisfied in full
in cash according to their terms (limited with respect to each nonrecourse liability to the Gross Asset Value of the assets securing
such liability), and Net Sales Proceeds (after satisfaction of such liabilities) were distributed in full in accordance with Section
5.1(b) to the Partners immediately after making such allocations, minus (ii) the sum of such Partner’s share of Partnership
Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would be
obligated to contribute to the capital of the Partnership, all computed immediately prior to the hypothetical sale of assets.

 

(c)          Special
Allocations.

 

(i)          General
Partner Gross Income Allocation. After giving effect to the special allocations in paragraph 2 but prior to any allocations
under subparagraphs 1(a) or 1(b), 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 in an
amount equal to the excess, if any, of (A) the cumulative distributions made to the General Partner under Section 7.3(b) of
the Agreement, other than distributions which would properly be treated as “guaranteed payments” or which are attributable
to the reimbursement of expenses which would properly be either deductible by the Partnership or added to the tax basis of any
Partnership asset, over (B) the cumulative allocations of Partnership income and gain to the General Partner under this subparagraph
1(c)(i).

 

    	 

    	 

    

 

(ii)         Special
Allocations Regarding Class B Units. After giving effect to the special allocations in subparagraph 1(c)(i) and paragraph 2
but prior to any allocations under subparagraphs 1(a) or 1(b), Net Property Gain and Liquidating Gain and, to the extent necessary,
individual items of income and gain comprising Net Property Gain, and Liquidating Gain of the Partnership shall be allocated to
the holders of Class B Units until their Economic Capital Account Balances are equal to (A) the OP Unit Economic Balance,
multiplied by (B) the number of their Class B Units; provided, that no such Net Property Gain or Liquidating Gain or
individual items of income and gain comprising Net Property Gain or Liquidating Gain will be allocated with respect to any particular
Class B Unit unless and to the extent that the OP Unit Economic Balance exceeds the OP Unit Economic Balance in existence at the
time such Class B Unit was issued. The “Economic Capital Account Balances” of the Class B Unit holders will
be equal to their Capital Account balances to the extent attributable to their ownership of Class B Units. The “OP Unit
Economic Balance” shall mean (Y) the aggregate Capital Account balance attributable to the OP Units outstanding,
plus the amount of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to the ownership
of OP Units and computed on a hypothetical basis after taking into account all allocations through the date on which any allocation
is made under this subparagraph 1(c)(ii), divided by (Z) the number of OP Units outstanding. Any allocations made pursuant
to the first sentence of this subparagraph 1(c)(ii) shall be made among the holders of Class B Units in proportion to the amounts
required to be allocated to each under this subparagraph 1(c)(ii). The parties agree that the intent of this subparagraph 1(c)(ii)
is to make the Capital Account balance associated with each Class B Unit to be economically equivalent to the Capital Account balance
associated with the OP Units outstanding (on a per-Unit basis), but only if and to the extent that the Capital Account balance
associated with the OP Units outstanding, without regard to the allocations under this subparagraph 1(c)(ii), has increased on
a per-Unit basis since the issuance of the relevant Class B Unit. Any remaining Net Property Gain or Liquidating Gain not allocated
pursuant to this subparagraph 1(c)(ii) shall be included in the calculation of Net Income, Net Loss, Net Property Gain and Net
Property Loss and will be allocated pursuant to subparagraphs 1(a) and 1(b).

 

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

 

    	 

    	 

    

 

2.          Regulatory
Allocations. Notwithstanding any provisions of paragraph 1 of this Exhibit B, the following special allocations shall
be made.

 

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

 

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

 

(c)          Qualified
Income Offset. If a Partner unexpectedly receives any adjustments, allocations or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4),
(5) or (6) of the Regulations, and such Partner has an Adjusted Capital Account Deficit, items of Partnership income (including
gross income) and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate the Adjusted
Capital Account Deficit as quickly as possible as required by the Regulations. This subparagraph 2(c) is intended to constitute
a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently
therewith.

 

(d)          Nonrecourse
Deductions. Nonrecourse Deductions for any fiscal year or other applicable period shall be allocated to the Partners in accordance
with their respective Percentage Interests.

 

(e)          Partner
Nonrecourse Deductions. Partner Nonrecourse Deductions for any fiscal year or other applicable period with respect to a Partner
Nonrecourse Debt shall be specially allocated to the Partner that bears the economic risk of loss for such Partner Nonrecourse
Debt (as determined under Sections 1.704-2(b)(4) and 1.704-2(i)(1) of the Regulations).

 

    	 

    	 

    

 

(f)          Section
754 Adjustment. To the extent an adjustment to the adjusted tax basis of any asset of the Partnership pursuant to Section 734(b)
of the Code or Section 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations, to be taken
into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or
loss shall be specially allocated among the Partners in a manner consistent with the manner in which each of their respective Capital
Accounts are required to be adjusted pursuant to such section of the Regulations.

 

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

 

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

 

4.           Tax
Allocations.

 

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

 

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

 

    	 

    	 

    

 

purposes hereof, in
order to determine the proportionate allocations of depreciation and amortization deductions for each fiscal year or other applicable
period, such deductions shall be deemed allocated on the same basis as Net Income, Net Loss, Net Property Gain, Net Property Loss
and Liquidating Gain for such respective period.

 

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

 

(d)          Excess
Nonrecourse Liability Safe Harbor. Pursuant to Section 1.752-3(a)(3) of the Regulations, solely for purposes of determining
each Partner’s proportionate share of the “excess nonrecourse liabilities” of the Partnership (as defined in
Section 1.752-3(a)(3) of the Regulations), the Partners’ respective interests in Partnership profits shall be determined
under any permissible method reasonably determined by the General Partner; provided, however, that each Partner who has contributed
an asset to the Partnership shall be allocated, to the extent possible, a share of “excess nonrecourse liabilities”
of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to
the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the “Liability
Shortfall”). If there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse
liabilities equal to the Liability Shortfall, then an amount of nonrecourse liabilities in proportion to, and to the extent of,
the Liability Shortfall shall be allocated to each Partner.

 

(e)          References
to Regulations. Any reference in this Exhibit B or the Agreement to a provision of proposed and/or temporary Regulations
shall, if such provision is modified or renumbered, be deemed to refer to the successor provision as so modified or renumbered,
but only to the extent such successor provision applies to the Partnership under the effective date rules applicable to such successor
provision.)

 

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

 

    	 

    	 

    

 

Exhibit C

 

Certificate of Limited Partnership

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