Document:

Exhibit 10.2

Exhibit 10.2

CAREY WATERMARK INVESTORS INCORPORATED

UP TO 100,000,000 SHARES OF COMMON STOCK

SELECTED DEALER AGREEMENT

October 7, 2010

 

 

 

SELECTED DEALER AGREEMENT

Ameriprise Financial Services, Inc.

369 Ameriprise Financial Center

Minneapolis, MN 55474

Ladies and Gentlemen:

Each of Carey Watermark Investors Incorporated, a Maryland corporation (the “Company”), Carey
Financial, LLC, a Delaware limited liability company (the “Dealer Manager”) Carey Lodging
Advisors, LLC, a Delaware limited liability company (the “Advisor”), and W. P. Carey & Co. LLC, a
Delaware limited liability company (the “Sponsor”) (collectively, the “Issuer Entities”) and CWA,
LLC, an Illinois limited liability company (the “Sub-Advisor”), hereby confirms its agreement with
Ameriprise Financial Services, Inc., a Delaware corporation (“Ameriprise”), as follows:

1. Introduction. This Selected Dealer Agreement (the “Agreement”) sets forth the
understandings and agreements between the Issuer Entities, the Sub-Advisor and Ameriprise whereby
Ameriprise will offer and sell on a best efforts basis for the account of the Company a maximum of
$1,237,500,000 in shares of common stock (the “Common Stock”), par value $.001 per share (each a
“Share,” and collectively, the “Shares”), (including $1,000,000,000 in Shares to be offered in the
primary offering (the “Primary Offering”) and $237,500,000 in Shares to be offered pursuant to the
Company’s Distribution Reinvestment Plan (“DRIP”)) registered pursuant to the Registration
Statement (as defined below) at the per share price set forth in the Registration Statement from
time to time (subject to certain volume and other discounts described therein) (the “Offering”).
The Shares are more fully described in the Registration Statement defined below.

Ameriprise is hereby invited to act as a selected dealer for the Offering, subject to the
other terms and conditions set forth below.

2. Representations and Warranties of the Issuer Entities. 

The Issuer Entities jointly and severally, represent, warrant and covenant with Ameriprise for
Ameriprise’s benefit that, as of the date hereof and at all times during the term of this
Agreement:

(b) Registration Statement and Prospectus. The Company has filed with the Securities and
Exchange Commission (the “Commission”) an effective registration statement on Form S-11 (File No.
333-149899), for the registration of up to $1,237,500,000 in Shares under the Securities Act of
1933, as amended (the “Securities Act”) and the regulations thereunder (the “Regulations”). The
registration statement, as amended, and the prospectus, as amended or supplemented, on file with
the Commission at the Effective Date (as defined below) of the registration statement (including
financial statements, exhibits and all other documents related thereto filed as a part thereof or
incorporated therein), and any registration statement filed under Rule 462(b) of the Securities
Act, are respectively hereinafter referred to as the “Registration Statement” and the “Prospectus,”
except that if the Registration Statement is amended by a post-effective amendment, the term
“Registration Statement” shall, from and after the declaration of effectiveness of such
post-effective amendment, refer to the Registration Statement as so amended and the term
“Prospectus” shall refer to the Prospectus as so amended or supplemented to date, and if any
Prospectus filed by the Company pursuant to Rule 424(b) or 424(c) of

 

 

 

 the Regulations shall differ from the Prospectus on file at the time the Registration Statement or any post-effective
amendment shall become effective, the term “Prospectus” shall refer to the Prospectus filed
pursuant to either of such Rules from and after the date on which it shall have been filed with the
Commission. Further, if a separate registration statement is filed and becomes effective with
respect solely to the DRIP (a “DRIP Registration Statement”), the term “Registration Statement”
shall refer to such DRIP Registration Statement from and after the declaration of effectiveness of
such DRIP Registration Statement, as such registration statement may be amended or supplemented
from time to time. If a separate prospectus is filed and becomes effective with respect solely to
the DRIP (a “DRIP Prospectus”), the term “Prospectus” shall refer to such DRIP Prospectus from and
after the declaration of effectiveness of such DRIP Prospectus, as such prospectus may be amended
or supplemented from time to time.

(c) Compliance with the Securities Act. The Registration Statement has been prepared and
filed by the Company and has been declared effective by the Commission and is effective in the
states indicated in the Blue Sky Memorandum (defined in Section 5(d) herein), as updated from time
to time pursuant to the terms of Section 5(d). Neither the Commission nor any such state
securities authority has issued any order preventing or suspending the use of any Prospectus filed
with the Registration Statement or any amendments or supplements thereto and no proceedings for
that purpose have been instituted, or to the Company’s knowledge, are threatened or contemplated by
the Commission or by any of the state securities authorities. At the time the Registration
Statement first became effective (the “Effective Date”) and at the time that any post-effective
amendments thereto or any additional registration statement filed under Rule 462(b) of the
Securities Act becomes effective, the Registration Statement or any amendment thereto (1) complied,
or will comply, as to form in all material respects with the requirements of the Securities Act and
the Regulations and (2) did not or will not contain an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein not misleading. When the
Prospectus or any amendment or supplement thereto is filed with the Commission pursuant to Rule
424(b) or 424(c) of the Regulations and at all times subsequent thereto through the date on which
the Offering is terminated (“Termination Date”), the Prospectus will comply in all material
respects with the requirements of the Securities Act and the Regulations, and will not include any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading. Any Prospectus delivered to Ameriprise will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to
the extent permitted by Regulation S-T.

(d) The Company. The Company has been duly incorporated and validly exists as a corporation
in good standing under the laws of the State of Maryland with full power and authority to conduct
the business in which it is engaged as described in the Prospectus, including without limitation to
acquire properties as more fully described in the Prospectus, including land and buildings, as well
as properties upon which properties are to be constructed for the Company or to be owned by the
Company (the “Properties”) or make loans, or other permitted investments as referred to in the
Prospectus. The Companyis duly qualified to do business as a foreign corporation, as applicable,
and is in good standing in each other jurisdiction in which it owns or leases property of a nature,
or transacts business of a type that would make such qualification necessary except where the
failure to be so qualified or in good standing could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. The term “Material Adverse Effect”
means a material adverse effect on, or material adverse change in, the general affairs, business,
prospects, properties, operations, condition (financial or otherwise) or results of operations of
the Company and its subsidiaries, taken as a whole, whether or not arising in the ordinary course
of business.

 

 

 

(e) The Shares. The Shares, when issued, will be duly and validly issued, fully paid and
non-assessable and will conform in all material respects to the description thereof contained in
the Prospectus; no holder thereof will be subject to personal liability for the obligations of the
Company solely by reason
of being such a holder; such Shares are not subject to the preemptive rights of any stockholder of
the Company; and all corporate action required to be taken for the authorization, issuance and sale
of such Shares has been validly and sufficiently taken. All shares of the Company’s issued and
outstanding capital stock have been duly authorized and validly issued and are fully paid and
non-assessable; none of the outstanding shares of capital stock of the Company were issued in
violation of the preemptive or other similar rights of any stockholder of the Company.

(f) Capitalization. The authorized capital stock of the Company conforms in all material
respects to the description thereof contained in the Prospectus under the caption “Description of
Shares.” Except as disclosed in the Prospectus: no shares of Common Stock have been or are to be
reserved for any purpose; there are no outstanding securities convertible into or exchangeable for
any shares of Common Stock; and there are no outstanding options, rights (preemptive or
otherwise) or warrants to purchase or subscribe for shares of Common Stock or any other securities
of the Company.

(g) Violations. No Issuer Entity or any respective subsidiary thereof is (i) in violation of
its charter or bylaws, its partnership agreement, declaration of trust or trust agreement, or
limited liability company agreement (or other similar agreement), as the case may be; (ii) in
default in the performance or observance of any obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or other agreement or instrument to which such Issuer Entity is a party or by which any of
them may be bound or to which any of the respective properties or assets of such Issuer Entity is
subject (collectively, “Agreements and Instruments”); or (iii) in violation of any law, order, rule
or regulation, writ, injunction or decree of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over the Company or any of its property, except in the
case of clauses (ii) and (iii), where such conflict, breach, violation or default would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The
execution, delivery and performance by each Issuer Entity, as applicable, of this Agreement, that
certain Dealer Manager Agreement between the Dealer Manager and the Company (the “Dealer Manager
Agreement”),the Selected Dealer Agreements between the Dealer Manager and, with the exception of
Ameriprise, each of the selected dealers soliciting subscriptions for shares of the Company’s
common stock pursuant to the Offering (collectively, the “Selected Dealer Agreements”) and the
Advisory Agreement between the Company and the Advisor (the “Advisory Agreement”), and the
consummation of the transactions contemplated herein and therein (including the issuance and sale
of the Shares and the use of the proceeds from the sale of the Shares as described in the
Prospectus under the caption “Estimated Use of Proceeds”) and compliance by the Company and the
Advisor with its obligations hereunder and thereunder do not and will not, whether with or without
the giving of notice or passage of time or both, conflict with or constitute a breach of, default
or Repayment Event (as defined below) under any of the Agreements and Instruments, or result in the
creation or imposition of any Lien (as defined below) upon any property or assets of any Issuer
Entity or any respective subsidiary thereof (except for such conflicts, breaches, defaults or
Repayments Events or Liens that, individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect) nor will such action result in any violation of the provisions
of the charter or bylaws (or similar document) of any Issuer Entity or any respective subsidiary
thereof; or any applicable law, rule, regulation, or governmental or court judgment, order, writ or
decree of any government, governmental instrumentality or court, domestic or foreign, having
jurisdiction over the Issuer Entities or any of their properties, except for such violations that
would not reasonably be expected to have a Material Adverse Effect. As used herein, a “Repayment
Event” means any event or condition which gives the holder of any note, debenture or other evidence
of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase,
redemption or repayment of all or a portion of such indebtedness by an Issuer Entity or any
respective subsidiary thereof. “Lien” means any mortgage, deed of trust, lien, pledge,
encumbrance, charge or security interest in or on any asset.

 

 

 

(h) Financial Statements. The consolidated financial statements of the Company and the
financial statements of each entity acquired by the Company (each, an “Acquired Entity”) including
the schedules and notes thereto, which have been filed as part of the Registration Statement and
those included in the Prospectus present fairly in all material respects the financial position of
the Company, its consolidated subsidiaries and each such Acquired Entity, as of the date indicated
and the results of its operations, stockholders’ equity and cash flows of the Company, and its
consolidated subsidiaries and each such Acquired Entity, as applicable, for the periods specified;
said financial statements have been prepared in conformity with U.S. generally accepted accounting
principles applied on a consistent basis or, if such entity is a foreign entity, such other
accounting principles applicable to such foreign entity, (except as may be expressly stated in the
related notes thereto) and comply with the requirements of Regulation S-X promulgated by the
Commission. PricewaterhouseCoopers LLP, whose report is filed with the Commission as a part of the
Registration Statement, is, with respect to the Company and its subsidiaries, an independent
accountant as required by the Securities Act and the Regulations and have been registered with the
Public Company Accounting Oversight Board. The selected financial data and the summary financial
information included in the Prospectus present fairly the information shown therein and have been
compiled on a basis consistent with that of the audited financial statements included in the
Registration Statement. The pro forma financial statements and the related notes thereto included
in the Registration Statement and the Prospectus present fairly the information shown therein, have
been prepared in accordance with the Commission’s rules and guidelines with respect to pro forma
financial statements and have been properly compiled on the bases described therein, and the
assumptions used in the preparation thereof are reasonable and the adjustments used therein are
appropriate to give effect to the transactions and circumstances referred to therein. All
disclosures contained in the Registration Statement or the Prospectus, or incorporated by reference
therein, regarding “non-GAAP financial measures” (as such term is defined by the rules and
regulations of the Commission) comply with Regulation G of the Securities Exchange Act of 1934
(the “Exchange Act”) and Item 10 of Regulation S-K of the Securities Act, to the extent applicable.

(i) Prior Performance Tables. The prior performance tables of the Company’s affiliates and
other entities, including the schedules and notes thereto, filed as part of the Registration
Statement and those included in the Prospectus under the heading “Appendix A — Prior Performance
Tables” (the “Prior Performance Tables”) present fairly in all material respects the financial
information required to be included therein by Item 8 of the Commission’s Industry Guide 5. Except
as disclosed in the Prospectus, the Prior Performance Tables have been prepared in conformity with
U.S. generally accepted accounting principles applied on a consistent basis to the extent required
by the Commission’s Industry Guide 5 and comply with the requirements of Regulation S-X promulgated
by the Commission, to the extent applicable. All disclosures in the Prior Performance Tables
regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of
the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the
Securities Act, to the extent applicable.

(j) No Subsequent Material Events. Since the respective dates as of which information is
given in the Registration Statement and the Prospectus, except as may otherwise be stated in or
contemplated by the Registration Statement and the Prospectus, (a) there has not been any Material
Adverse Effect, (b) there have not been any material transactions entered into by the Company
except in the ordinary course of business, (c) there has not been any material increase in the
long-term indebtedness of the Company and (d) except for regular cash distributions on the Common
Stock, there has been no distribution of any kind declared, paid or made by the Company on any
class of its capital stock.

(k) Investment Company Act. The Company is not, will not become by virtue of the
transactions contemplated by this Agreement and the application of the net proceeds therefrom as
contemplated in the Prospectus, and does not intend to conduct its business so as to be, an
“investment
company” as that term is defined in the Investment Company Act of 1940, as amended and the rules
and regulations thereunder, and it will exercise reasonable diligence to ensure that it does not
become an “investment company” within the meaning of the Investment Company Act of 1940.

 

 

 

(l) Authorization of Agreements. This Agreement, the Dealer Manager Agreement, the Selected
Dealer Agreements and the Advisory Agreement between the Company, the Dealer Manager and the
Advisor, as applicable, have been duly and validly authorized, executed and delivered by the
Company, the Dealer Manager and the Advisor, as applicable, and constitute valid, binding and
enforceable agreements of the Company, the Dealer Manager and the Advisor, as applicable, except to
the extent that (i) enforceability may be limited by (x) the effect of bankruptcy, insolvency or
other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally;
or (y) the effect of general principles or equity; or (ii) the enforceability of the indemnity
and/or contribution provisions contained in the Dealer Manager Agreement, the Selected Dealer
Agreements, the Advisory Agreement and Section 8 of this Agreement, as applicable, may be limited
under applicable securities laws.

(m) The Advisor.

	 	(i)	 	The Advisor has been duly organized and validly exists as a
limited liability company in good standing under the laws of the State of
Delaware with full power and authority to conduct the business in which it is
engaged as described in the Prospectus. The Advisor is duly qualified to do
business as a foreign limited partnership and is in good standing in each other
jurisdiction in which it owns or leases property of a nature, or transacts
business of a type, that would make such qualification necessary, except where
the failure to be so qualified or in good standing could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

	 	(ii)	 	The Advisor is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which it is engaged and which the Advisor
deems adequate; all policies of insurance insuring the Advisor or its business,
assets, employees, officers and trustees, including the Advisor’s employees and
officers errors and omissions insurance policy, are in full force and effect;
the Advisor is in compliance with the terms of such policy in all material
respects; and there are no claims by the Advisor under any such policy as to
which any insurance company is denying liability or defending under a
reservation of rights clause; the Advisor has not been refused any insurance
coverage sought or applied for; and the Advisor has no reason to believe that
it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business at a cost that would not have a material
adverse effect on, or material adverse change in, the general affairs,
business, operations, condition (financial or otherwise) or results of
operations of the Advisor and its subsidiaries, taken as a whole, whether or
not arising in the ordinary course of business, except as set forth in or
contemplated in the Registration Statement and the Prospectus (exclusive of any
supplement thereto). Advisor carries, or is covered by, insurance, including,
at a minimum, errors and omissions insurance, in such amounts and covering such
risks as is adequate for the conduct of its businesses and the value of its
properties and as is customary for companies engaged in similar industries.
All policies of insurance insuring the Advisor or its respective businesses,
assets, employees, partners, officers and directors are in full force and
effect, and the Advisor is in compliance with the terms of such policies in all
material respects. There are no claims by the Advisor under any such policy or
instrument as to which an insurance company is denying liability or
defending under a reservation of rights clause.

 

 

 

	 	(iii)	 	The Advisor has the financial resources available to it
necessary for the performance of its services and obligations as contemplated
in the Registration Statement, the Prospectus and under this Agreement and the
Advisory Agreement.

	 	(iv)	 	The Advisor maintains a system of internal controls sufficient
to provide reasonable assurance that (a) transactions effectuated by it under
the Advisory Agreement are executed in accordance with its management’s general
or specific authorization; and (b) access to the Company’s assets is permitted
only in accordance with its management’s general or specific authorization.

(n) The Dealer Manager. The Dealer Manager has been duly incorporated and validly exists as
a limited liability company in good standing under the laws of the State of Delaware with full
power and authority to conduct the business in which it is engaged as described in the Prospectus.
The Dealer Manager is duly qualified to do business as a foreign entity and is in good standing in
each other jurisdiction in which it owns or leases property of a nature, or transacts business of a
type, that would make such qualification necessary except where the failure to be so qualified or
in good standing could not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

(o) Description of Agreements. The Company is not a party to or bound by any contract or
other instrument of a character required to be described in the Registration Statement or the
Prospectus or to be filed as an exhibit to the Registration Statement that is not described and
filed as required.

(p) Qualification as a Real Estate Investment Trust. The Company intends to satisfy the
requirements of the Internal Revenue Code of 1986 as amended (the “Code”) for qualification and
taxation of the Company as a real estate investment trust. Commencing with its taxable year ending
December 31, 2010, the Company has been organized and has operated in conformity with the
requirements for qualification as a real estate investment trust under the Code and its actual
method of operation has enabled it and its proposed method of operation as described in the
Prospectus will enable it to continue to meet the requirements for qualification and taxation as a
real estate investment trust under the Code.

(q) Gramm-Leach-Bliley Act and USA Patriot Act. The Company complies in all material
respects with applicable privacy provisions of the Gramm-Leach-Bliley Act and applicable provisions
of the USA Patriot Act.

(r) Sales Material. All advertising and supplemental sales literature prepared or approved
by the Company or any of its affiliates (whether designated solely for broker-dealer use or
otherwise) to be used or delivered by the Company or any of its affiliates or Ameriprise in
connection with the Offering of the Shares will not contain an untrue statement of material fact or
omit to state a material fact required to be stated therein in light of the circumstances under
which they were made and when read in conjunction with the Prospectus, not misleading.
Furthermore, all such advertising and supplemental sales literature has, or will have, received all
required regulatory approval, which may include but is not limited to, the approval of the
Commission, the Financial Industry Regulatory Authority, Inc. (“FINRA”) and state securities
agencies, as applicable, prior to use. Any required consent and authorization has been obtained
for the use of any trademark or service mark in any sales literature or advertising delivered by
the Company to Ameriprise or approved by the Company for use by Ameriprise and, to the Company’s
knowledge, its use does not constitute the unlicensed use of intellectual property.

 

 

 

(s) Good Standing of Subsidiaries. Each “significant subsidiary” of the Company (as such
term is defined in Rule 1-02 of Regulation S-X) and each other entity in which the Company holds a
direct or indirect ownership interest that is material to the Company (each a “Subsidiary” and,
collectively, the “Subsidiaries”) has been duly organized or formed and is validly existing as a
corporation, partnership, limited liability company or similar entity in good standing under the
laws of the jurisdiction of its incorporation, has power and authority to own, lease and operate
its properties and to conduct its business as described in the Prospectus and is duly qualified to
transact business and is in good standing in each jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of business,
except where the failure to be so qualified would not reasonably be expected to have a Material
Adverse Effect. Except as otherwise disclosed in the Registration Statement, all of the issued and
outstanding capital stock of each such Subsidiary has been duly authorized and validly issued, is
fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free
and clear of any Lien, claim or equity other than such Liens, claims or equities that, individually
or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. None of
the outstanding shares of capital stock of any Subsidiary was issued in violation of the preemptive
or similar rights of any stockholder of such Subsidiary. The only direct subsidiaries of the
Company as of the date of the Registration Statement or the most recent amendment to the
Registration Statement, as applicable, are the subsidiaries listed on Exhibit 21 to the
Registration Statement or such amendment to the Registration Statement.

(t) No Pending Action. There is no action, suit or proceeding pending, or, to the
knowledge of the Company, threatened or contemplated before or by any arbitrator, court or other
government body, domestic or foreign, against or affecting any Issuer Entity or any respective
subsidiary thereof which is required to be disclosed in the Registration Statement (other than as
disclosed therein), or which would reasonably be expected to result in a Material Adverse Effect,
or which would reasonably be expected to materially and adversely affect the properties or assets
thereof or the consummation of the transactions contemplated by this Agreement. The aggregate of
all pending legal or governmental proceedings to which any Issuer Entity or any respective
subsidiary thereof is a party or of which any of their respective properties or assets is the
subject which are not described in the Registration Statement, including ordinary routine
litigation incidental to the business, would not reasonably be expected to result in a Material
Adverse Effect or materially adversely affect other properties or assets of any Issuer Entity or
any respective subsidiary thereof.

(u) Possession of Intellectual Property. The Company and its subsidiaries own or possess, or
can acquire on reasonable terms, adequate patents, patent rights, licenses, inventions, copyrights,
know-how (including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures), trademarks, service marks, trade names or other
intellectual property (collectively, “Intellectual Property”) necessary to carry on the business
now operated by them, and neither the Company nor any of its subsidiaries has received any notice
or is otherwise aware of any infringement of or conflict with asserted rights of others with
respect to any Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of the Company or any of its
subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable
decision, ruling or finding) or invalidity or inadequacy, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.

(v) Absence of Further Requirements. No filing with, or authorization, approval, consent,
license, order, registration, qualification or decree of, any court or governmental authority or
agency is necessary or required for the performance by the Company of its obligations under this
Agreement, the Dealer Manager Agreement the Selected Dealer Agreements and the Advisory Agreement,
in connection with the offering, issuance or sale of the Shares or the consummation of the other
transactions contemplated by this Agreement, the Dealer Manager Agreement, the Selected Dealer
Agreements and the Advisory Agreement, except such as have been already made or obtained under the
Securities Act, the
Exchange Act, the rules of FINRA, including NASD rules, or the securities laws of the states
indicated in the Blue Sky Memorandum (defined in Section 5(d) of this Agreement).

 

 

 

(w) Possession of Licenses and Permits. The Company and its subsidiaries possess such
permits, licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies or bodies
necessary to conduct the business now operated by them (except such Governmental Licenses, the
failure of which to possess, would not reasonably be expected to have a Material Adverse Effect),
and the Company and its subsidiaries are in compliance in all material respects with the terms and
conditions of all such Governmental Licenses. All of the Governmental Licenses are valid and in
full force and effect; and neither the Company nor any of its subsidiaries has received any notice
of proceedings relating to the revocation or modification of any such Governmental Licenses.

(x) Partnership Agreements. Each of the partnership agreements, declarations of trust or
trust agreements, limited liability company agreements (or other similar agreements) and, if
applicable, joint venture agreements to which the Company or any of its subsidiaries is a party has
been duly authorized, executed and delivered by the Company or the relevant subsidiary, as the case
may be, and constitutes the valid and binding agreement of the Company or such subsidiary, as the
case may be, enforceable in accordance with its terms, except as the enforcement thereof may be
limited by (A) the effect of bankruptcy, insolvency or other similar laws now or hereafter in
effect relating to or affecting creditors’ rights generally or (B) the effect of general principles
of equity, and the execution, delivery and performance of such agreements did not, at the time of
execution and delivery, and does not constitute a breach of or default under the charter or bylaws,
partnership agreement, declaration of trust or trust agreement, or limited liability company
agreement (or other similar agreement), as the case may be, of the Company or any of its
subsidiaries or any of the Agreements and Instruments or any law, administrative regulation or
administrative or court order or decree.

(y) Properties. Except as otherwise disclosed in the Prospectus: (i) the Company and its
subsidiaries have good and insurable or good, valid and insurable title (either in fee simple or
pursuant to a valid leasehold interest) to all properties and assets described in the Prospectus as
being owned or leased, as the case may be, by them and to all properties reflected in the Company’s
most recent consolidated financial statements included in the Prospectus, and neither the Company
nor any of its subsidiaries has received notice of any claim that has been or may be asserted by
anyone adverse to the rights of the Company or any subsidiary with respect to any such properties
or assets (or any such lease) or affecting or questioning the rights of the Company or any such
subsidiary to the continued ownership, lease, possession or occupancy of such property or assets,
except for such claims that could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect; (ii) there are no Liens, claims or restrictions on or affecting the
properties and assets of the Company or any of its subsidiaries which would reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect; (iii) no person or entity,
including, without limitation, any tenant under any of the leases pursuant to which the Company or
any of its subsidiaries leases (as lessor) any of its properties (whether directly or indirectly
through other partnerships, limited liability companies, business trusts, joint ventures or
otherwise) has an option or right of first refusal or any other right to purchase any of such
properties, except for such options, rights of first refusal or other rights to purchase which,
individually or in the aggregate, are not material with respect to the Company and its subsidiaries
taken as a whole; (iv) to the Company’s knowledge, each of the properties of the Company or any of
its subsidiaries has access to public rights of way, either directly or through easements (insured
easements with respect to U.S. properties), except where the failure to have such access would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; (v) to
the Company’s knowledge, each of the properties of the Company or any of its subsidiaries is served
by all public utilities necessary for the current

 

 

 

operations on such property in sufficient
quantities for such operations, except where the failure to have such public utilities could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect; (vi) to the knowledge of the Company, each of the properties of the
Company or any of its subsidiaries complies with all applicable codes and zoning and subdivision
laws and regulations, except for such failures to comply which could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; (vii) all of the leases under
which the Company or any of its subsidiaries holds or uses any real property or improvements or any
equipment relating to such real property or improvements are in full force and effect, except where
the failure to be in full force and effect could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect, and neither the Company nor any of its subsidiaries
is in default in the payment of any amounts due under any such leases or in any other default
thereunder and the Company knows of no event which, with the passage of time or the giving of
notice or both, could constitute a default under any such lease, except such defaults that could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
(viii) to the knowledge of the Company, there is no pending or threatened condemnation, zoning
change, or other proceeding or action that could in any manner affect the size of, use of,
improvements on, construction on or access to the properties of the Company or any of its
subsidiaries, except such proceedings or actions that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect; and (ix) neither the Company nor any of
its subsidiaries nor, to the knowledge of the Company, any lessee of any of the real property or
improvements of the Company or any of its subsidiaries is in default in the payment of any amounts
due or in any other default under any of the leases pursuant to which the Company or any of its
subsidiaries leases (as lessor) any of its real property or improvements (whether directly or
indirectly through partnerships, limited liability companies, joint ventures or otherwise), and the
Company knows of no event which, with the passage of time or the giving of notice or both, would
constitute such a default under any of such leases, except in each case such defaults as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(z) Insurance. The Company and/or its subsidiaries have title insurance on all U.S. real
property and improvements described in the Prospectus as being owned or leased under a ground
lease, as the case may be, by them and to all U.S. real property and improvements reflected in the
Company’s most recent consolidated financial statements included in the Prospectus in an amount at
least equal to the original purchase price paid to the sellers of such property, except as
otherwise disclosed in the Prospectus, and the Company and its subsidiaries are entitled to all
benefits of the insured thereunder. With respect to all non-U.S. real property described in the
Prospectus as being owned or leased by the Company’s subsidiaries, each such subsidiary has
received a title opinion or title certificate or other customary evidence of title assurance, as
appropriate for the respective jurisdiction, showing good and indefeasible title to such properties
in fee simple or valid leasehold estate or its respective equivalent, as the case may be, vested in
the applicable subsidiary. Each property described in the Prospectus is insured by extended
coverage hazard and casualty insurance carried by either the tenant or the Company in amounts and
on such terms as are customarily carried by owners or lessors of properties similar to those owned
by the Company and its subsidiaries (in the markets in which the Company’s and subsidiaries’
respective properties are located), and either the tenant or the Company and its subsidiaries carry
comprehensive general liability insurance and such other insurance as is customarily carried by
owners of properties similar to those owned by the Company and its subsidiaries in amounts and on
such terms as are customarily carried by owners of properties similar to those owned by the
Company and its subsidiaries (in the markets in which the Company’s and its subsidiaries’
respective properties are located) and the Company or one of its subsidiaries is named as an
additional insured or loss payee on all policies (except workers’ compensation) required under the
leases for such properties.

 

 

 

(aa) Environmental Matters. Except as otherwise disclosed in the Prospectus: (i) all real
property and improvements owned or leased by the Company or any of its subsidiaries, including,
without limitation, the Environment (as defined below) associated with such real property and
improvements, is free of any Contaminant (as defined below) in violation of applicable
Environmental Laws (as defined below)except for such violations that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect; (ii) neither the Company,
nor any of its subsidiaries has caused or suffered to exist or occur any Release (as defined below)
of any Contaminant into the Environment in violation of any applicable Environmental Law that would
reasonably be expected to have a Material Adverse Effect or could result in a violation of any
applicable Environmental Laws, except for such violations that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; (iii) neither the Company nor
any of its subsidiaries is aware of any notice from any governmental body claiming any violation of
any Environmental Laws or requiring or calling for any work, repairs, construction, alterations,
removal or remedial action or installation by the Company or any of its subsidiaries on or in
connection with such real property or improvements, whether in connection with the presence of
asbestos-containing materials or mold in such properties or otherwise, except for any violations
that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect, or any such work, repairs, construction, alterations, removal or remedial action or
installation, if required or called for, which would not result in the incurrence of liabilities by
the Company, which, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect, nor is the Company aware of any information which may serve as the basis
for any such notice that would, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; (iv) neither the Company nor any of its subsidiaries has caused or
suffered to exist or occur any environmental condition on any of the properties or improvements of
the Company or any of its subsidiaries that could reasonably be expected to give rise to the
imposition of any Lien under any Environmental Laws except such Liens which, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect; and (v) to the
Company’s knowledge, no real property or improvements owned or leased by the Company or any of its
subsidiaries is being used or has been used for manufacturing or for any other operations that
involve or involved the use, handling, transportation, storage, treatment or disposal of any
Contaminant, where such operations require or required permits or are or were otherwise regulated
pursuant to the Environmental Laws and where such permits have not been or were not obtained or
such regulations are not being or were not complied with, except in all instances where any failure
to obtain a permit or comply with any regulation would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. “Contaminant” means any pollutant,
hazardous substance, toxic substance, hazardous waste, special waste, petroleum or
petroleum-derived substance or waste, asbestos or asbestos-containing materials, PCBs, lead,
pesticides or regulated radioactive materials or any constituent of any such substance or waste, as
identified or regulated under any Environmental Law. “Environmental Laws” means the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. 6901, et seq., the Clean Air Act, 42 U.S.C. 7401, et seq.,
the Clean Water Act, 33 U.S.C. 1251, et seq., the Toxic Substances Control Act, 15 U.S.C. 2601, et
seq., the Occupational Safety and Health Act, 29 U.S.C. 651, et seq., and all other federal, state
and local laws, ordinances, regulations, rules, orders, decisions and permits, which are directed
at the protection of human health or the Environment. “Environment” means any surface water,
drinking water, ground water, land surface, subsurface strata, river sediment, buildings,
structures, and ambient air. “Release” means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, or disposing of any Contaminant into
the Environment, including, without limitation, the abandonment or discard of barrels, containers,
tanks or other receptacles containing or previously containing any Contaminant or any release,
emission or discharge as those terms are defined or used in any applicable Environmental Law.

(bb) Registration Rights. There are no persons, other than the Company, with registration or
other similar rights to have any securities registered pursuant to the Registration Statement or
otherwise registered by the Company under the Securities Act, or included in the Offering
contemplated hereby.

 

 

 

(cc) Finders’ Fees. Neither the Company nor any affiliate thereof has received or is
entitled to receive, directly or indirectly, a finder’s fee or similar fee from any person other
than that as described in the Prospectus in connection with the acquisition, or the commitment for
the acquisition, of the Properties by the Company.

(dd) Taxes. The Company and each of its subsidiaries has filed all federal, state and
foreign income tax returns and all other material tax returns which have been required to be filed
on or before the due date thereof (taking into account all extensions of time to file) and all such
tax returns are correct and complete in all material respects. The Company has paid or provided
for the payment of all taxes reflected on its tax returns and all assessments received by the
Company and each of its subsidiaries to the extent that such taxes or assessments have become due,
except where the Company is contesting such assessments in good faith and except for such taxes and
assessments of immaterial amounts, the failure of which to pay would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. There are no audits,
deficiencies or assessments pending against the Company or its subsidiaries relating to income
taxes, except where the Company is contesting such audit, deficiency or assessments in good faith.

(ee) Internal Controls. The Company maintains a system of internal control over financial
reporting ( as such term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the
requirements of the Exchange Act and that has been designed by the Company’s principal executive
officer and principal financial officer, or under their supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. The
Company’s internal control over financial reporting is effective as of the end of its most recently
completed fiscal year and the Company is not aware of any material weaknesses in its internal
control over financial reporting.Since the date of the latest audited financial statements
included or incorporated by reference in the Registration Statement, there has been no change in
the Company’s internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company’s internal control over financial reporting.

(ff) Disclosure Controls and Procedures. The Company maintains disclosure controls and
procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the
requirements of the Exchange Act; such disclosure controls and procedures have been designed to
ensure that material information relating to the Company and its subsidiaries is made known to the
Company’s principal executive officer and principal financial officer by others within those
entities; and such disclosure controls and procedures are effective as of December 31, 2009.

(gg) Compliance with the Sarbanes-Oxley Act. There is and has been no failure on the part of
the Company or any of the Company’s directors or officers, in their capacities as such, to comply
in all material respects with any applicable provision of the Sarbanes-Oxley Act of 2002 and the
rules and regulations promulgated in connection therewith, including Section 402 related to loans
and Sections 302 and 906 related to certifications.

(hh) No Fiduciary Duty. Each Issuer Entity acknowledges and agrees that Ameriprise is acting
solely in the capacity of an arm’s length contractual counterparty to it with respect to the
Offering of the Shares (including in connection with determining the terms of the Offering) and not
as a financial advisor or a fiduciary to, or an agent of, such Issuer Entity or any other person.
Additionally, Ameriprise is not advising the Issuer Entities or any other person as to any legal,
tax, investment, accounting or regulatory matters in any jurisdiction. The Issuer Entities shall
consult with its own advisors concerning such matters and shall be responsible for making its own
independent investigation and appraisal of the transactions contemplated hereby, and Ameriprise
shall have no responsibility or liability to the Issuer
Entities with respect thereto. Any review by Ameriprise of the Issuer Entities, the transactions
contemplated hereby or other matters relating to such transactions will be performed solely for the
benefit of Ameriprise and shall not be on behalf of the Issuer Entities.

 

 

 

3. Representations and Warranties of the Sub-Advisor

(a) Good Standing and Authority. The Sub-Advisor is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Illinois with full
power and authority to conduct its business as described in the Prospectus. The Sub-Advisor is or
will be duly qualified to do business and is in good standing as a foreign limited liability
company in each other jurisdiction in which it owns or invests, or transacts business of a type
that would make such qualification necessary except where the failure to be so qualified or in good
standing would not, individually or in the aggregate, reasonably be expected to have or result in a
Sub-Advisor Material Adverse Effect. The term “Sub-Advisor Material Adverse Effect” means a
material adverse effect on, or material adverse change in, the general affairs, business,
operations, condition (financial or otherwise) or results of operations of the Sub-Advisor and its
subsidiaries, taken as a whole, whether or not arising in the ordinary course of business.

(b) Violations. The Sub-Advisor is not (i) in violation of its charter or bylaws, its
partnership agreement, declaration of trust or trust agreement, or limited liability company
agreement (or other similar organizational agreement), as the case may be; (ii) in default in the
performance or observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, loan or credit agreement, note, or other agreement or instrument to which the
Sub-Advisor is a party or by which it may be bound or to which any of its assets is subject (the
“Sub-Advisor Agreements and Instruments”); or (iii) in violation of any law, order, rule or
regulation, writ, injunction or decree of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over the Sub-Advisor, except in the case of clauses (ii)
and (iii), where such conflict, breach, violation or default would not reasonably be expected to
have or result in, individually or in the aggregate, a Sub-Advisor Material Adverse Effect. The
execution, delivery and performance by the Sub-Advisor of the Sub-Advisory Agreement and any other
material agreements, and the consummation of the transactions contemplated herein and therein and
compliance by the Sub-Advisor with respect to its obligations hereunder and thereunder do not and
will not, whether with or without the giving of notice or passage of time or both, conflict with or
constitute a breach of, default, or Repayment Event (as defined below) under any of the Agreements
and Instruments, individually or in the aggregate, and would not reasonably be expected to have or
result in a Sub-Advisor Material Adverse Effect, nor will such action result in any violation of
the provisions of the charter or bylaws (or similar organizational document) of the Sub-Advisor, or
of any applicable law, rule, regulation, judgment, order, writ, or decree of any government,
governmental instrumentality, or court, domestic or foreign, having jurisdiction over the
Sub-Advisor, except for such violations that would not reasonably be expected to have or result in
a Sub-Advisor Material Adverse Effect. As used in this Section, a “Repayment Event” means any
event or condition which gives the holder of any note, debenture or other evidence of indebtedness
(or any person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Sub-Advisor.

(c) No Pending Action. Except as disclosed in the Prospectus, there is no action, suit or
proceeding pending, or, to the knowledge of the Sub-Advisor, threatened or contemplated before or
by any arbitrator, court or other government body, domestic or foreign, against or affecting the
Sub-Advisor or any subsidiary thereof which is required to be disclosed in the Registration
Statement (other than as disclosed therein), or which would reasonably be expected to have or
result in a Sub-Advisor Material Adverse Effect, or which would reasonably be expected to
materially and adversely affect the assets thereof or the consummation of the transactions
contemplated by this Agreement. The aggregate of all
pending legal or governmental proceedings to which the Sub-Advisor or any subsidiary thereof
is a party or of which any of their respective assets is the subject that are not described in the
Registration Statement, including ordinary routine litigation incidental to the business, would not
reasonably be expected to have or result in a Sub-Advisor Material Adverse Effect or materially
adversely affect other assets of the Sub-Advisor or any subsidiary thereof, taken as a whole.

 

 

 

(d) Authorization of Agreement. This Agreement and the Sub-Advisory Agreement have been duly
and validly authorized, executed and delivered by the Sub-Advisor. The Sub-Advisor has full
limited liability company power and authority to enter into this Agreement and the Sub-Advisory
Agreement. The Sub-Advisory Agreement constitutes the valid, binding and enforceable agreement of
the Sub-Advisor, except to the extent that (i) enforceability may be limited by (a) the effect of
bankruptcy, insolvency or similar laws now or hereinafter in effect relating to or affecting
creditors’ rights generally or (b) the effect of general principles of equity; or (ii) the
enforceability of the indemnification and/or contribution provisions contained in the Sub-Advisory
Agreement may be limited under applicable securities laws.

(e) Possession of Licenses and Permits. The Sub-Advisor possesses such Governmental Licenses
issued by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary
to conduct the business now operated by it, except such Governmental Licenses, the failure of which
to possess, would not reasonably be expected to have or result in a Material Adverse Effect, and
the Sub-Advisor is in compliance in all material respects with the terms and conditions of all such
Governmental Licenses. All of the Governmental Licenses are valid and in full force and effect,
and the Sub-Advisor has not received any notice of proceedings relating to the revocation or
modification of any such Governmental Licenses.

(f) Foreign Corrupt Practices Act. Neither the Sub-Advisor nor, to the knowledge of the
Sub-Advisor, any director, officer, agent, employee or affiliate of the Sub-Advisor is aware of or
has taken any action, directly or indirectly, that would result in a violation by such persons of
the FCPA, including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce in furtherance of an offer, payment, promise to pay or authorization of the
payment of any money, or other property, gift, promise to give, or authorization of the giving of
anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign
political party or official thereof or any candidate for foreign political office, in contravention
of the FCPA and the Sub-Advisor, and, to the knowledge of the Sub-Advisor, its affiliates have
conducted their businesses in compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.

(g) Insurance. The Sub-Advisor is insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the businesses in
which it is engaged and which the Sub-Advisor deems adequate; all policies of insurance insuring
the Sub-Advisor or its business, assets, employees, officers and trustees, including the
Sub-Advisor’s employees and officers errors and omissions insurance policy, are in full force and
effect; the Sub-Advisor is in compliance with the terms of such policy in all material respects;
and there are no claims by the Sub-Advisor under any such policy as to which any insurance company
is denying liability or defending under a reservation of rights clause; the Sub-Advisor has not
been refused any insurance coverage sought or applied for; and the Sub-Advisor has no reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Sub-Advisor Material Adverse Effect, except as set forth
in or contemplated in the Registration Statement and the Prospectus (exclusive of any supplement
thereto). Sub-Advisor carries, or is covered by, insurance, including, at a minimum, errors and
omissions insurance, in such amounts and covering such risks as is adequate for the
conduct of its businesses and the value of its properties and as is customary for companies
engaged in similar industries. All policies of insurance insuring the Sub-Advisor or its
respective businesses, assets, employees, partners, officers and directors are in full force and
effect, and the Sub-Advisor is in compliance with the terms of such policies in all material
respects. There are no claims by the Sub-Advisor under any such policy or instrument as to which
an insurance company is denying liability or defending under a reservation of rights clause.

 

 

 

(h) Financial Resources. The Sub-Advisor has the financial resources available to it
necessary for the performance of its services and obligations as contemplated in the Registration
Statement, the Prospectus and under this Agreement and the Sub-Advisory Agreement.

(i) Registration Statement, Prospectus, and Amendments. The description of the Sub-Advisor,
its business, its fees, and the statements attributable to the Sub-Advisor, in the Registration
Statement and the Prospectus complied and comply in all material respects with the provisions of
the Securities Act and the Regulations and did not and will not contain an untrue statement of a
material fact necessary to make the statements therein (in the case of a prospectus, in light of
the circumstances under which they were made) not misleading.

(j) No Subsequent Material Events. Since the respective dates as of which information is
given in the Registration Statement and the Prospectus through the date hereof, except as may
otherwise be stated in or contemplated by the Registration Statement and the Prospectus, there has
not been any Sub-Advisor Material Adverse Effect, whether or not arising in the ordinary course of
business.

(k) Internal Controls. The Sub-Advisor maintains a system of internal controls sufficient to
provide reasonable assurance that (i) transactions effectuated by it under the Sub-Advisory
Agreement are executed in accordance with its management’s general or specific authorization; and
(ii) access to the Company’s assets is permitted only in accordance with its management’s general
or specific authorization.

(l) Possession of Intellectual Property. The Sub-Advisor and its subsidiaries own or possess,
or can acquire on reasonable terms, adequate Intellectual Property necessary to carry on the
business now operated by them, and neither the Sub-Advisor nor any of its subsidiaries has received
any notice or is otherwise aware of any infringement of or conflict with asserted rights of others
with respect to any Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of the Sub-Advisor or any of
its subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable
decision, ruling or finding) or invalidity or inadequacy, individually or in the aggregate, could
reasonably be expected to have or result in a Sub-Advisor Material Adverse Effect.

(m) Absence of Further Requirements. No filing with, or authorization, approval, consent,
license, order, registration, qualification or decree of, any court or governmental authority or
agency is necessary or required for the performance by the Sub-Advisor of its obligations under
this Agreement and the Sub-Advisory Agreement in connection with the offering, issuance or sale of
the Common Shares or the consummation of the other transactions contemplated by this Agreement and
the Sub-Advisory Agreement except as specifically set forth in this Agreement or as have been
already made or obtained under the Securities Act, the Exchange Act, FINRA, or as may be required
under the securities laws of all 50 states, the District of Columbia, Guam and Puerto Rico.

(n) Finder’s Fees. Other than as contemplated by this Agreement, the Sub-Advisor has not
incurred any liability for any finder’s or broker’s fee, or agent’s commission in connection with
the execution and delivery of this Agreement or the consummation of the transactions contemplated
hereby.

 

 

 

(o) No Fiduciary Duty. The Sub-Advisor acknowledges and agrees that Ameriprise is acting
solely in the capacity of an arm’s length contractual counterparty to it with respect to the
Offering of the Common Shares (including in connection with determining the terms of the Offering)
and not as a financial advisor or a fiduciary to, or an agent of, the Sub-Advisor or any other
person. Additionally, Ameriprise is not advising the Sub-Advisor or any other person as to any
legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Sub-Advisor
shall consult with its own advisors concerning such matters and shall be responsible for making its
own independent investigation and appraisal of the transactions contemplated hereby, and Ameriprise
shall have no responsibility or liability to the Sub-Advisor with respect thereto. Any review by
Ameriprise of the Sub-Advisor, the transactions contemplated hereby or other matters relating to
such transactions will be performed solely for the benefit of Ameriprise and shall not be on behalf
of the Sub-Advisor.

(p) Taxes. The Sub-Advisor and each of its subsidiaries has filed all material federal, state
and foreign income tax returns and all other material tax returns which have been required to be
filed on or before the due date thereof (taking into account all extensions of time to file) and
all such tax returns are correct and complete in all material respects. The Sub-Advisor has paid
or provided for the payment of all taxes reflected on its tax returns and all assessments received
by the Sub-Advisor and each of its subsidiaries to the extent that such taxes or assessments have
become due, except for such taxes and assessments of immaterial amounts, the failure of which to
pay would not, individually or in the aggregate, reasonably be expected to have or result in a
Sub-Advisor Material Adverse Effect. There are no audits, deficiencies, or assessments pending
against the Sub-Advisor or its subsidiaries relating to income taxes, except for such audits,
deficiencies, or assessments of immaterial amounts, which would not, individually or in the
aggregate, reasonably be expected to have or result in a Sub-Advisor Material Adverse Effect.
There are no transfer taxes or other similar fees or charges under federal law or the laws of any
state, or any political subdivision thereof, required to be paid in connection with the execution
and delivery of this Agreement. All material taxes that the Sub-Advisor is required to withhold or
collect have been duly withheld or collected.

4. Sale of Shares.

(a) Purchase of Shares. On the basis of the representations, warranties and covenants herein
contained, but subject to the terms and conditions herein set forth, the Company hereby appoints
Ameriprise as a Selected Dealer for the Shares during the period from the date hereof to the
Termination Date (the “Effective Term”), including the Shares to be issued pursuant to the DRIP,
each in the manner described in the Registration Statement. Subject to the performance by the
Company of all obligations to be performed by it hereunder and the completeness and accuracy of all
of its representations and warranties, Ameriprise agrees to use its best efforts, during the term
of this Agreement, to offer and sell such number of Shares as contemplated by this Agreement at the
price stated in the Prospectus, as the same may be adjusted from time to time. The purchase of
Shares must be made during the offering period described in the Prospectus, or after such offering
period in the case of purchases made pursuant to the DRIP (each such purchase hereinafter defined
as an “Order”). Persons desiring to purchase Shares are required to (i) deliver to Ameriprise a
check in the amount of $10 per Share purchased (subject to certain volume discounts or other
discounts as described in the Prospectus, or such other per share price as may be applicable
pursuant to the DRIP) payable to Ameriprise, or (ii) authorize a debit of such amount to the
account such purchaser maintains with Ameriprise. An order form as mutually agreed upon by
Ameriprise and the Company substantially similar to the form of subscription agreement attached to
the Prospectus (each an “Order Form”) must be completed and submitted to the Company for all
investors. On a daily basis, Ameriprise shall transfer, via Federal Reserve bank wire, the total
amount debited from investor accounts for the purchase of Shares along with a list including the
name, address and telephone number of, the social security number or taxpayer identification number
of, the brokerage account number of (if applicable), the number of Shares purchased by, any

 

 

 

election to participate in the DRIP by, and the total dollar amount of investment by, each investor on whose behalf checks are submitted or
the wire transfer is made. Ameriprise also will forward all Order Forms received by Ameriprise to
the Company by the third business day following their receipt in good order by Ameriprise.
Ameriprise shall use its best efforts to wire such funds or transmit checks to UMB Bank, N.A. until
subscription proceeds reach $33,333,334.00 and thereafter to Bank of the West (each of UMB Bank,
N.A. and Bank of the West being an “Agent Bank”) not later than noon of the next business day after
receipt by Ameriprise from its customer of each Order Form in good order. Ameriprise will advise
the Agent Bank whether the funds Ameriprise is submitting are attributable to individual retirement
accounts, Keogh plans, or any other employee benefit plan subject to Title I of the Employee
Retirement Income Security Act of 1974 or from some other type of investor. The parties
acknowledge that any receipt by Ameriprise of payments for subscriptions for Shares shall be
effected solely as an administrative convenience, and such receipt of payments shall not be deemed
to constitute acceptance of Orders to purchase Shares or sales of Shares by the Company.

All Orders solicited by Ameriprise will be strictly subject to review and acceptance by the
Company and the Company reserves the right in its absolute discretion to reject any Order or to
accept or reject Orders in the order of their receipt by the Company or otherwise. Within 30 days
of receipt of an Order, the Company must accept or reject such Order. If the Company elects to
reject such Order, within 10 business days after such rejection, it will notify the purchaser and
Ameriprise of such fact and cause the return of such purchaser’s funds and any interest earned
thereon submitted with such application. If Ameriprise receives no notice of rejection within the
foregoing time limits, the Order shall be deemed accepted. Ameriprise agrees to make commercially
reasonable efforts to determine that the purchase of Shares is a suitable and appropriate
investment for each potential purchaser of Shares based on information provided by such purchaser
regarding, among other things, such purchaser’s age, investment experience, financial situation and
investment objectives. Ameriprise agrees to maintain copies of the Orders received from investors
and of the other information obtained from investors for a minimum of 6 years from the date of sale
and will make such information available to the Company upon request by the Company.

(b) Closing Dates and Delivery of Shares. In no event shall a sale of Shares to an investor
be completed until at least five business days after the date the investor receives a copy of the
Prospectus. Orders shall be submitted as contemplated by Section 12 of the Dealer Manager
Agreement and as otherwise set forth in this Agreement. Shares will be issued as described in the
Prospectus. Share issuance dates for purchases made pursuant to the DRIP will be as set forth in
the DRIP.

(c) Dealers. The Shares offered and sold under this Agreement shall be offered and sold only
by Ameriprise, a member in good standing of FINRA. The Issuer Entities and affiliates thereof
agree to participate in Ameriprise’s marketing efforts to the extent that Ameriprise may reasonably
request and, without limiting the generality of the foregoing, agree to visit Ameriprise’s offices
as Ameriprise may reasonably request.

(d) Compensation. In consideration for Ameriprise’s execution of this Agreement, and for the
performance of Ameriprise’s obligations hereunder, the Dealer Manager agrees to pay or cause to be
paid to Ameriprise a selling commission (the “Selling Commission”) of seven percent (7.0%) of the
price of each Share ($0.70 per share) (except for Shares sold pursuant to the DRIP, for which no
Selling Commissions shall be paid) sold by Ameriprise; provided, however, that Ameriprise’s Selling
Commission shall be reduced with respect to volume sales of Shares to qualifying purchasers (as
defined in the Prospectus) and as otherwise set forth in the “Plan of Distribution” section of the
Prospectus. In the case of such volume sales to qualifying purchasers, on orders of $500,001 or
more, Ameriprise’s Selling Commission shall be reduced by the amount of the Share purchase price
discount. In the case of such

 

 

 

volume sales to qualifying purchasers, Ameriprise’s Selling
Commission will be reduced for each incremental share purchase by such qualifying purchasers where Ameriprise serves as the
selected dealer for such purchase, in the total volume ranges set forth in the table below. Such
reduced share price will not affect the amount received by the Company for investment. The
following table sets forth the reduced Share purchase price and Selling Commission payable to
Ameriprise:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Selling Commission Per	 
	 	 	 	 	 	 	Share for Incremental	 
	For a “Single Purchaser”	 	Purchase Price Per Share to Investors	 	 	Share in Volume Discount	 
	$2,000 – 500,000
	 	 	10.00	 	 	 	7.00	 
	$500,001 – 1,000,000
	 	 	9.90	 	 	 	6.00	 
	$1,000,001 – 2,000,000
	 	 	9.80	 	 	 	5.00	 
	$2,000,001 – 3,000,000
	 	 	9.70	 	 	 	4.00	 
	$3,000,001 – 5,000,000
	 	 	9.60	 	 	 	3.00	 
	$5,000,001 and over
	 	Negotiable	 	 	Negotiable	 

For example, a single purchaser would receive 55,050.5051 shares rather than 55,000 shares for
an investment of $550,000 and the selling commission would be $38,030. The discount would be
calculated as follows: On the first $500,000 of the investment there would be no discount and the
purchaser would receive 50,000 shares at $10 per share. On the remaining $50,000, the per share
price would be $9.90 and the purchaser would receive 5,050.5051 shares.

For purposes of determining investors eligible for volume discounts, investments made by
accounts with the same primary account holder, as determined by the account tax identification
number, may be combined. This includes individual accounts and joint accounts that have the same
primary holder as an individual account. Investments made through individual retirement accounts
may also be combined with accounts that have the same tax identification number as the beneficiary
of the individual retirement account. In the event Orders are combined, the commission payable
with respect to the subsequent purchase of Shares will equal the commission per share which would
have been payable in accordance with the table set forth above if all purchases had been made
simultaneously. Any reduction of the seven percent (7.0%) Selling Commission otherwise payable to
Ameriprise will be credited to the purchaser as additional Shares. Unless Ameriprise, on behalf of
purchasers, indicates that Orders are to be combined and provide all other requested information,
the Company will not be held responsible for failing to combine Orders properly.

As set forth in the Prospectus, the Company will not pay any selling commissions in
connection with: (1) the sale of shares to retirement plans of selected dealers, to selected
dealers themselves (and their employees), to IRAs and qualified plans of their registered
representatives or to any one of their registered representatives in their individual capacities
(and to each of their spouses, parents and minor children) and (2) the sale of the shares to
investors whose contracts for investment advisory and related brokerage services include a fixed or
“wrap” fee feature or other asset fee arrangement (other than a registered investment advisor
that is also registered as a broker-dealer, and provides financial planning services, and or agents
of such firm). The Company will also provide discounts in connection with certain other types of
sales, as specified in the Prospectus. The net proceeds to the Company will not be affected by any
such reduction in selling commissions or dealer manager fees.

Purchasers may submit requests in writing to Ameriprise to aggregate subscriptions, as part of
a combined order for purposes of determining the number of Shares purchased and the applicable
volume discount, provided that any such request must be submitted by Ameriprise to the Dealer
Manager simultaneously with the subscription for shares to which the discount is to relate.
Ameriprise may make
the request to the Dealer Manager on behalf of Ameriprise investors; provided, that, approval of
any such volume discounts for combined purchases shall be at the sole discretion of the Dealer
Manager and any such discount shall be prorated among the individual subscriptions that were
combined for the purchase.

 

 

 

The Dealer Manager will also re-allow to Ameriprise out of its three percent (3.0%) dealer
manager fee (the “Dealer Manager Fee”) a marketing fee of up to one and one-half percent (1.5%) of
the gross proceeds of each Share (except for Shares sold pursuant to the DRIP) sold by Ameriprise
(the “Marketing Fee”); provided however, the Company will not pay Ameriprise a Marketing Fee if the
aggregate underwriting compensation to be paid to all parties in connection with the Offering
exceeds the limitations prescribed by FINRA. The Dealer Manager, in its sole discretion, may pay
to Ameriprise out of the Dealer Manager Fee for technology costs; and other costs and expenses
associated with the primary offering, the facilitation of the marketing of our shares and the
ownership of such shares by the selected dealer. The Dealer Manager Fee may be waived in connection
with certain types of sales, as specified in the Prospectus.

No payment of Selling Commissions or the Marketing Fee will be made in respect of Orders (or
portions thereof) which are rejected by the Company. Selling Commissions and the Marketing Fee
will be paid following the week in which the subscriptions generating such commissions are accepted
by the Company. Selling Commissions and the Marketing Fee will be payable only with respect to
transactions lawful in the jurisdictions where they occur. Ameriprise hereby waives any and all
right to receive payment of commissions and any other payment due it until such time as the Dealer
Manager is in receipt of the associated commissions and other payment from the Company.

The Company will pay or cause to be paid to Ameriprise, the amount of any bona fide,
separately invoiced due diligence expense consistent with the language in the Prospectus and
applicable regulations.

Except for the arrangements described in the “Plan of Distribution” section of the Prospectus,
the Company represents that neither it nor any of its affiliates have offered or sold any Shares
pursuant to this Offering, other than directly to the Company’s officers and directors, and agrees
that, through the Termination Date, the Company will not offer or sell any Shares otherwise than
through the Dealer Manager as provided in the Dealer Manager Agreement, Ameriprise as herein
provided, and the selected dealers other than Ameriprise as provided in the Selected Dealer
Agreementsexcept to the Company’s and its affiliates’ officers and directors, employees and family
members as set forth in the Prospectus.

(e) Calculation of Fees. Ameriprise will have sole responsibility, and Ameriprise’s records
will provide the sole basis for calculating fees for which Ameriprise invoices under this
Agreement. However, the Issuer Entities may provide records to assist Ameriprise in its
calculations.

(f) Finders Fee. Neither the Company nor Ameriprise shall, directly or indirectly, pay or
award any finder’s fees, commissions or other compensation to any person engaged by a potential
investor for investment advice as an inducement to such advisor to advise the potential investor to
purchase Shares; provided, however, that normal Selling Commissions payable to a registered
broker-dealer or other properly licensed person for selling Shares shall not be prohibited hereby.

 

 

 

5.  Covenants. Each Issuer Entity, jointly and severally, covenants and agrees with
Ameriprise that it will:

(a) Commission Orders. Use its best efforts to cause any amendments to the Registration
Statement to become effective as promptly as possible and to maintain the effectiveness of the
Registration Statement, and will promptly notify Ameriprise and confirm the notice in writing if
requested, (i) when any post-effective amendment to the Registration Statement becomes effective,
(ii) of the issuance by the Commission or any state securities authority of any jurisdiction of any
stop order or of the initiation, or the threatening (for which it has knowledge), of any
proceedings for that purpose or of the suspension of the qualification of the Shares for offering
or sale in any jurisdiction or of the institution or threatening (for which it has knowledge) of
any proceedings for any of such purposes, (iii) of the receipt of any material comments from the
Commission with respect to the Registration Statement, the Company’s Annual Report on Form 10-K or
Quarterly Report on Form 10-Q, or any other filings, (iv) of any request by the Commission for any
amendment to the Registration Statement as filed or any amendment or supplement to the Prospectus
or for additional information relating thereto and (v) if the Registration Statement becomes
unavailable for use in connection with the Offering of the Shares for any reason. Each of the
Company and the Dealer Manager will use its best efforts to prevent the issuance by the Commission
of a stop order or a suspension order and if the Commission shall enter a stop order or suspension
order at any time, each of the Company and the Dealer Manager will use its best efforts to obtain
the lifting of such order at the earliest possible moment. The Company shall not accept any order
for Shares during the effectiveness of any stop order or if the Registration Statement becomes
unavailable for use in connection with the Offering of the Shares for any reason.

(b) Registration Statement. Deliver to Ameriprise without charge promptly after the
Registration Statement and each amendment or supplement thereto becomes effective, such number of
copies of the Prospectus (as amended or supplemented), the Registration Statement and supplements
and amendments thereto, if any (without exhibits), as Ameriprise may reasonably request. Unless
Ameriprise is otherwise notified in writing by the Company; the Company hereby consents to the use
of the Prospectus or any amendment or supplement thereto by Ameriprise both in connection with the
Offering and for such period of time thereafter as the Prospectus is required to be delivered in
connection therewith.

(c) “Blue Sky” Qualifications. Endeavor in good faith to seek and maintain the approval of
the Offering by FINRA, and to qualify the Shares for offering and sale under the securities laws of
all 50 states and the District of Columbia and to maintain such qualification, except in those
jurisdictions Ameriprise may reasonably designate; provided, however, the Company shall not be
obligated to subject itself to taxation as a party doing business in any such jurisdiction. In
each jurisdiction where such qualification shall be effected, the Company will, unless Ameriprise
agrees that such action is not at the time necessary or advisable, file and make such statements or
reports as are or may reasonably be required by the laws of such jurisdiction.

(d) “Blue Sky” Memorandum. To furnish to Ameriprise, and Ameriprise may be allowed to rely
upon, a “Blue Sky” Memorandum (the “Blue Sky Memorandum”), prepared by counsel reasonably
acceptable to Ameriprise (with the understanding that Kunzman & Bollinger, Inc. shall so qualify),
in customary form naming the jurisdictions in which the Shares have been qualified for sale under
the respective securities laws of such jurisdiction. The Blue Sky Memorandum shall be promptly
updated by counsel and provided to Ameriprise from time to time to reflect changes and updates to
the jurisdictions in which the Shares have been qualified for sale. In each jurisdiction where the
Shares have been qualified, the Company will make and file such statements and reports in each year
as are or may be required by the laws of such jurisdiction.

 

 

 

(e) Amendments and Supplements. If during the time when a Prospectus is required to be
delivered under the Securities Act, any event relating to the Company shall occur as a result of
which it is necessary, in the opinion of the Company’s counsel, to amend the Registration Statement
or to amend or supplement the Prospectus in order to make the Prospectus not misleading in light of
the circumstances existing at the time it is delivered to an investor, or if it shall be necessary,
in the opinion of the Company’s counsel, at any such time to amend the Registration Statement or
amend or supplement the
Prospectus in order to comply with the requirements the Securities Act or the Regulations, the
Company will forthwith notify an Ameriprise representative in the Ameriprise legal department,
further, the Company shall prepare and furnish without expense to Ameriprise, a reasonable number
of copies of an amendment or amendments of the Registration Statement or the Prospectus, or a
supplement or supplements to the Prospectus which will amend or supplement the Registration
Statement or Prospectus so that as amended or supplemented it will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or to make the Registration Statement or the Prospectus comply with such
requirements. During the time when a Prospectus is required to be delivered under the Securities
Act, the Company shall comply in all material respects with all requirements imposed upon it by the
Securities Act, as from time to time in force, including the undertaking contained in the Company’s
Registration Statement pursuant to Item 20.D of the Commission’s Industry Guide 5, so far as
necessary to permit the continuance of sales of the Shares in accordance with the provisions hereof
and the Prospectus.

(f) Delivery of Periodic Filings. The Company shall include with any prospectus or “investor
kit” delivered to Ameriprise for distribution to potential investors in connection with the
Offering a copy of the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form
10-Q or a supplement to the Prospectus containing the material information from such reports.

(g) Periodic Financial Information. On or prior to the date on which there shall be
releasedto the general public interim financial statement information related to the Company with
respect to each of the first three quarters of any fiscal year or preliminary financial statement
information with respect to any fiscal year, the Company shall furnish such information to
Ameripriseconfirmed in writing and shall file such information pursuant to the rules and
regulations promulgated under the Securities Act or the Exchange Act as required thereunder.

(h) Audited Financial Information. On or prior to the date on which there shall be released
to the general public financial information included in or derived from the audited financial
statements of the Company for the preceding fiscal year, the Company shall furnish such information
to Ameripriseconfirmed in writing and shall file such information pursuant to the rules and
regulations promulgated under the Securities Act or the Exchange Act as required thereunder.

(i) Copies of Reports. During the period the Shares remain outstanding, Ameriprise will be
furnished with the following:

(i) as soon as practicable after they have been sent or made available by the Company to its
stockholders or filed with the Commission, two copies of each annual and interim financial or other
report provided to stockholders;

(ii) as soon as practicable, two copies of every press release issued by the Company and every
material news item and article in respect of the Company or its affairs released by the Company;
and

(iii) additional documents and information with respect to the Company and its affairs as
Ameriprise may from time to time reasonably request.

Documents (other than final Prospectuses or supplements or amendments thereto for distribution
to investorsand the documents incorporated by reference therein ) required to be delivered pursuant
to this Agreement (to the extent any such documents are included in materials otherwise filed with
the Securities and Exchange Commission) may be delivered electronically and if so delivered, shall
be deemed to have been delivered on the date (i) on which the Company posts such documents, or
provides a link thereto on the Company’s website on the Internet; or (ii) on which such documents
are posted on the Company’s behalf on the website of the Securities and Exchange Commission or any
other Internet or intranet website, if any, to which Ameriprise has access; provided that the
Company shall notify Ameriprise of the posting of any such documents.

 

 

 

(j) Sales Material. The Company will deliver to Ameriprise from time to time, all advertising and
supplemental sales material (whether designated solely for broker-dealer use or otherwise) proposed
to be used or delivered in connection with the Offering, prior to the use or delivery to third
parties of such material, and will not so use or deliver, in connection with the Offering, any such
material to Ameriprise’s customers or registered representatives without Ameriprise’s prior written
consent, which consent, in the case of material required by law, rule or regulation of any
regulatory body including FINRA to be delivered, shall not be unreasonably withheld or delayed.
The Company shall ensure that all advertising and supplemental sales literature used by Ameriprise
will have received all required regulatory approval, which may include but is not limited to, the
Commission, FINRA and state securities agencies, as applicable, prior to use by Ameriprise. For
the avoidance of doubt, ordinary course communications with the Company’s stockholders, including
without limitation, the delivery of annual and quarterly reports and financial information,
dividend notices, reports of net asset value and information regarding the tax treatment of
distributions and similar matters shall not be considered advertising and supplemental sales
material, unless the context otherwise requires.

(k) Use of Proceeds. Apply the proceeds from the sale of Shares substantially as set forth in the
section of the Prospectus entitled “Estimated Use of Proceeds” and operate the business of the
Company in all material respects accordance with the descriptions of its business set forth in the
Prospectus.

(l) Prospectus Delivery. Within the time during which a prospectus relating to the Shares is
required to be delivered under the Securities Act, the Company will comply with all requirements
imposed upon it by the Securities Act, as now and hereafter amended, and by the Rules and
Regulations, as from time to time in force, so far as necessary to permit the continuance of sales
of or dealings in the Shares as contemplated by the provisions hereof and the Prospectus. The
Dealer Manager confirms that it is familiar with Rule 15c2-8 under the Exchange Act, relating to
the distribution of preliminary and final prospectuses, and confirms that it has complied and will
comply therewith in connection with the Offering of Shares contemplated by this Agreement, to the
extent applicable.

(m) Financial Statements. Make generally available to its stockholders as soon as practicable, but
not later than the Availability Date, an earnings statement of the Company (in form complying with
the provisions of Rule 158 under the Securities Act) covering a period of 12 months beginning after
the Effective Date but not later than the first day of the Company’s fiscal quarter next following
the Effective Date. For purposes of the preceding sentence, “Availability Date” means the
45th day after the end of the fourth fiscal quarter following the fiscal quarter that
includes such Effective Date, except that, if such fourth fiscal quarter is the last quarter of the
Company’s fiscal year, “Availability Date” means the 90th day after the end of such
fourth fiscal quarter (or if either of such dates specified above is a day the Commission is not
open to receive filings, then the next such day that the Commission is open to receive filings).

(n) Compliance with Exchange Act. Comply with the requirements of the Exchange Act relating to the
Company’s obligation to file and, as applicable, deliver to its stockholders periodic reports
including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K.

 

 

 

(o) Title to Property. The Company (or any partnership or joint venture holding title to a
particular Property) will acquire good and marketable title to each Property to be owned by it, as
described in the
Prospectus and future supplements to the Prospectus, it being understood that the Company may incur
debt with respect to Properties and other assets in accordance with the Prospectus; and except as
stated in the Prospectus, the Company (or any such partnership or joint venture) will possess all
licenses, permits, zoning exceptions and approvals, consents and orders of governmental, municipal
or regulatory authorities required for the ownership of the Properties, and prior to the
commencement of construction for the development of any vacant land included therein as
contemplated by the Prospectus, except where the failure to possess any such license, permit,
zoning exception or approval, consent or order could not be reasonably likely to cause a Material
Adverse Effect.

(p) Licensing and Compliance. The Company and the Dealer Manager covenant that any persons
employed or retained by them to provide sales support or wholesaling services in support of
Ameriprise or its clients shall be licensed in accordance with all applicable laws, will comply
with all applicable federal and state securities laws and regulations, and will use only sales
literature approved and authorized by the Company and the Dealer Manager.

(q) Reimbursement Policy. The Company, the Dealer Manager and any agents of either, including any
wholesalers, shall comply with (i) all applicable federal and state laws, regulations and rules and
the rules of any applicable self-regulatory organization, including but not limited to, FINRA rules
and interpretations governing cash and non-cash compensation, (ii) Ameriprise’s policies governing
marketing fees, cash compensation and non-cash compensation as communicated in writing to the
Dealer Manager, and (iii) Ameriprise’s wholesaler reimbursement policy as communicated in writing
to the Dealer Manager, as amended from time to time in Ameriprise’s sole discretion; provided that
such policies comply with the rules and regulations of FINRA and the Dealer Manager is notified of
any changes to such policies.

(r) Trade Names and Trademarks. No Issuer Entity may use any company name, trade name, trademark
or service mark or logo of Ameriprise or any person or entity controlling, controlled by, or under
common control with Ameriprise without Ameriprise’s prior written consent. Such trademarks
include, without limitation, “Ameriprise,” Ameriprise Financial,” “Ameriprise Financial Services,”
and “Riversource.”

(s) Compliance Reporting. The Issuer Entities agree to furnish Ameriprise with such information as
Ameriprise may reasonably request concerning transactions and activity in investor accounts
containing Shares of the Company and will otherwise cooperate with Ameriprise connection with the
transmission of such information to Ameriprise order to assist Ameriprise in its supervisory
responsibilities as required by applicable laws and the rules and regulations of FINRA or other
regulatory agencies.

6. Covenants of Sub-Advisor. The Sub-Advisor covenants and agrees with Ameriprise
that the Sub-Advisor will not use any company name, trade name, trademark or service mark or logo
of Ameriprise or any person or entity controlling, controlled by, or under common control with
Ameriprise without Ameriprise’s prior written consent. Such trademarks include, without
limitation, “Ameriprise,” Ameriprise Financial,” “Ameriprise Financial Services,” and
“Riversource.”

7. Covenants of Ameriprise. Ameriprise covenants and agrees with the Company as
follows:

(a) Prospectus Delivery. Ameriprise confirms that it is familiar with Rule 15c2-8 under the
Exchange Act, relating to the distribution of preliminary and final prospectuses, and confirms that
it has complied and will comply therewith in connection with the Offering of the Shares
contemplated by this Agreement, to the extent applicable.

(b) Accuracy of Information. No information supplied by Ameriprise specifically for use in
the Registration Statement will contain any untrue statements of a material fact or omit to state
any
material fact necessary to make such information not misleading.

 

 

 

(c) No Additional Information. Ameriprise will not give any information or make any
representation in connection with the Offering of the Shares other than that contained in the
Prospectus, the Registration Statement, and any of the Company’s other filings under the Securities
Act or the Exchange Act which are incorporated by reference into the Prospectus or filed as a
supplement to the Prospectus or advertising and supplemental sales material contemplated by this
Agreement and approved by the Company.

(d) Sale of Shares. Ameriprise shall solicit purchasers of the Shares only in the
jurisdictions in which Ameriprise has been advised by the Company (including pursuant to the Blue
Sky Memorandum, and any updates thereto, delivered to Ameriprise pursuant to Section 5(d)) that
such solicitations can be made and in which Ameriprise is qualified to so act.

8. Payment of Expenses.

(a) Expenses. Whether or not the transactions contemplated in this Agreement are consummated
or if this Agreement is terminated, the Company and/or the Dealer Manager, as designated in the
Prospectus, will pay or cause to be paid, in addition to the compensation described in Section 4(d)
(which Ameriprise may retain up to the point of termination unless this agreement is terminated
without any Shares being sold, in which case no such compensation shall be paid), all fees and
expenses incurred in connection with the formation, qualification and registration of the Company
and in marketing, distributing and processing the Shares under applicable Federal and state law,
and any other fees and expenses actually incurred and directly related to the Offering and the
Company’s other obligations under this Agreement, including such fees and expenses as: (i) the
preparing, printing, filing and delivering of the Registration Statement (as originally filed and
all amendments thereto) and of the Prospectus and any amendments thereof or supplements thereto and
the preparing and printing of this Agreement and Order Forms, including the cost of all copies
thereof and any financial statements or exhibits relating to the foregoing supplied to Ameriprise
in quantities reasonably requested by Ameriprise; (ii) the preparing and printing of the
subscription material and related documents and the filing and/or recording of such certified
certificates or other documents necessary to comply with the laws of the State of Maryland for the
formation of a corporation and thereafter for the continued good standing of the Company; (iii) the
issuance and delivery of the Shares, including any transfer or other taxes payable thereon; (iv)
the qualification or registration of the Shares under state securities or “blue sky” laws; (v) the
filing fees payable to the Commission and to FINRA; (vi) the preparation and printing of
advertising material in connection with and relating to the Offering, including the cost of all
sales literature and investor and broker-dealer sales and information meetings; (vii) the cost and
expenses of counsel and accountants of the Company; and (viii) subject to Section 8(c), and as
mutually agreed upon, Ameriprise’s costs of technology associated with the offering, other costs
and expenses related to such technology costs, and the facilitation of the marketing of the Shares
and the ownership of such Shares by Ameriprise’s customers; and (ix) any other expenses of issuance
and distribution of the Shares.

(b) Ad Hoc Requests. From time to time, the Issuer Entities may make requests that can
reasonably be regarded as being related to but separate from the services contemplated by this
Agreement (the “Services”) or that otherwise fall outside the ordinary course of business
relationships such as the one contemplated under this Agreement (“Ad Hoc Requests”). Examples of
Ad Hoc Requests include, but are not limited to, requests that would require Ameriprise to
implement information technology modifications, participate in or respond to audits, inspections or
compliance reviews, or respond to or comply with document requests. To the extent that
Ameriprise’s compliance with an Ad Hoc Request would cause Ameriprise to incur additional material
expenses, the Company and Ameriprise will mutually agree as to the payment of such expenses between
the parties. Ameriprise reserves the right to
refuse to comply with an Ad Hoc Request if the parties are unable to reach an agreement on
payment of reasonable expenses unless payment of such expenses would violate FINRA rules and
provided that consent to an agreement has not been unreasonably withheld. Payment for Ad Hoc
Requests will be separate from and above the payments for the Services.

 

 

 

(c) Limitation. Notwithstanding the foregoing, the total compensation paid to Ameriprise from
the Issuer Entities in connection with the Offering pursuant to Section 4(d) hereof and this
Section 8 shall not exceed the limitations prescribed by FINRA. The Company, the Dealer Manager
and Ameriprise agree to monitor the payment of all fees and expense reimbursements to assure that
FINRA limitations are not exceeded. Accordingly, if at any time during the term of the Offering,
the Company determines in good faith that any payment to Ameriprise pursuant to this Agreement
could result in a violation of the applicable FINRA regulations, the Company shall promptly notify
Ameriprise, and the Company and Ameriprise agree to cooperate with each other to implement such
measures as they determine are necessary to ensure continued compliance with applicable FINRA
regulations. However, nothing in this Agreement shall relieve Ameriprise of its obligations to
comply with FINRA Rule 2310.

9. Conditions of Ameriprise’s Obligations. Ameriprise’s obligations hereunder shall
be subjectto the continued accuracy throughout the Effective Term of the representations,
warranties and agreements of the Company to the performance by the Company of its obligations
hereunder and to the following terms and conditions:

(a) Effectiveness of Registration Statement. The Registration Statement shall have initially
become effective not later than 5:30 P.M., Eastern time, on the date of this Agreement and, at any
time during the term of this Agreement, no stop order shall have been issued or proceedings
therefor initiated or threatened by the Commission; and all requests for additional information on
the part of the Commission and state securities administrators shall have been complied with and no
stop order or similar order shall have been issued or proceedings therefor initiated or threatened
by any state securities authority in any jurisdiction in which the Company intends to offer Shares.

(b) Closings. The Company, the Advisor and the Dealer Manager will deliver or cause to be
delivered to Ameriprise, as a condition of Ameriprise’s obligations hereunder, those documents as
described in this Section 9 as of the date hereof and, as applicable, on or before the fifth
business day following the date that each post-effective amendment to the Registration Statement
filed by the Company shall have been declared effective (each such date, a “Documented Closing
Date”); provided that if a Documented Closing Date has not occurred within ninety (90) days of the
previous Documented Closing Date, the 90th day following the previous Documented Closing
Date shall be deemed to be a Documented Closing Date through the termination of the Primary
Offering.

(c) Opinions of Counsel. Ameriprise shall receive the favorable opinion of:

(i) Clifford Chance US LLP, counsel for the Company, dated as of the date hereof or as of each
Documented Closing Date, as applicable, addressed to Ameriprise substantially in the form attached
hereto as Exhibit A.

(ii) Venable LLP, Maryland counsel for the Company, dated as of the date hereof or as of each
Documented Closing Date, as applicable, addressed to Ameriprise substantially in the form attached
hereto as Exhibit B.

(iii) Reed Smith LLP, real estate counsel for the Company, dated as of the date hereof or as
of each Documented Closing Date, as applicable, addressed to Ameriprise substantially in the form
attached hereto as Exhibit C.

 

 

 

(iv) Davis Polk & Wardwell, special counsel for the Advisor, dated as of the date hereof or as
of each Documented Closing Date, as applicable, addressed to Ameriprise substantially in the form
attached hereto as Exhibit D.

(v) Ungaretti & Harris LLP, counsel for the Sub-Advisor, dated as of the date hereof or as of
each Documented Closing Date, as applicable, addressed to Ameriprise substantially in the form
attached hereto as Exhibit E.

(d) Accountant’s Letter. On the date hereof, Ameriprise shall have received from
PricewaterhouseCoopers LLP a comfort letter, in form and substance reasonably satisfactory to
Ameriprise in all material respects.

(e) Update of Accountant’s Letter. Ameriprise shall receive from Pricewaterhouse Coopers LLP
on each Documented Closing Date, a comfort letter, in form and substance reasonably satisfactory to
Ameriprise in all material respects, provided that (i) the date of such comfort letter shall be a
date not more than five days prior to each such Documented Closing Date, (ii) such comfort letter
shall cover the Registration Statement and Prospectus (including all documents incorporated by
reference therein, as amended and supplemented through the date of the latest post-effective
amendment that triggers such Documented Closing Date (the “Current Filing”), and (iii) if financial
statements or financial information of any other entity are included in the Current Filing, the
comfort letter to be received by Ameriprise shall also cover such financial statements or financial
information.

(f) Stop Orders. On the Effective Date and during the Effective Term no order suspending the
sale of the Shares in any jurisdiction nor any stop order issued by the Commission shall have been
issued, and on the Effective Date and during the Effective Term no proceedings relating to any such
suspension or stop orders shall have been instituted, or to the knowledge of the Company, shall be
contemplated.

(g) “Blue Sky” Memorandum. On or before the date hereof, Ameriprise shall have received the
Blue Sky Memorandum described in Section 5(d) above.

(h) Information Concerning the Advisor. On the date hereofand as of each Documented Closing
Date, Ameriprise shall receive a letter dated the date hereof from the Advisor, confirming that:
(1) the Advisory Agreement has been duly and validly authorized, executed and delivered by the
Advisor and constitutes a valid agreement of the Advisor enforceable in accordance with its terms;
(2) the execution and delivery of the Advisory Agreement, the consummation of the transactions
therein contemplated and compliance with the terms of the Advisory Agreement by the Advisor will
not conflict with or constitute a default under its limited liability company agreement or any
indenture, mortgage, deed of trust, lease or other agreement or instrument to which the Advisor is
a party, or a violation of any law, order, rule or regulation, writ, injunction or decree of any
government, governmental instrumentality or court, domestic or foreign, having jurisdiction over
the Advisor, or any of its property, except for such violations that would not reasonably be
expected to have a Material Adverse Effect; (3) no consent, approval, authorization or order of any
court or other governmental agency or body has been or is required for the performance of the
Advisory Agreement by the Advisor, or for the consummation of the transactions contemplated
thereby, other than those that have been already made or obtained ; and (4) the Advisor is a
limited liability company duly formed, validly existing and in good standing under the laws of the
State of Delaware and is duly qualified to do business as a foreign limited partnership in each
other jurisdiction in which the nature of its business would make such qualification necessary and
the failure to so qualify could reasonably be expected to have a Material Adverse Effect.

 

 

 

(i) Information Concerning the Sub-Advisor. On the date hereof and as of each Documented
Closing Date, Ameriprise shall receive a letter dated as of such date from the Sub-Advisor
confirming that: (1) the Sub-Advisory Agreement has been duly and validly authorized, executed and
delivered by the Sub-Advisor and constitutes a valid agreement of the Sub-Advisor enforceable in
accordance with its terms; (2) the execution and delivery of the Sub-Advisory Agreement, the
consummation of the transactions therein contemplated and compliance with the terms of the
Sub-Advisory Agreement by the Sub-Advisor will not conflict with or constitute a default under its
limited liability company agreement to which the Sub-Advisor is a party, or any law, order, rule or
regulation, writ, injunction or decree of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over the Sub-Advisor, except for such conflicts or
defaults that would not reasonably be expected to have or result in a Sub-Advisor Material Adverse
Effect; (3) no consent, approval, authorization or order of any court or other governmental agency
or body has been or is required for the performance of the Sub-Advisory Agreement by the
Sub-Advisor, or for the consummation of the transactions contemplated thereby, other than those
that have already been made or obtained; and (4) the Sub-Advisor is a limited liability company
duly formed, validly existing and in good standing under the laws of the State of Illinois and is
duly qualified to do business as a foreign limited liability company in each other jurisdiction in
which the nature of its business would make such qualification necessary, except where the failure
to be so qualified or in good standing could not reasonably be expected to have or result in a
Sub-Advisor Material Adverse Effect.

(j) Confirmation. As of the date hereof and at each Documented Closing Date, as the case may
be:

(i) the representations and warranties of each of the Issuer Entities and the Sub-Advisor in
the Agreement shall be true and correct with the same effect as if made on the date hereof or the
Documented Closing Date, as the case may be, and each of the Issuer Entities and the Sub-Advisor
have performed all covenants or conditions on their part to be performed or satisfied at or prior
to the date hereof or respective Documented Closing Date;

(ii) the Registration Statement (and any amendments or supplements thereto and any documents
incorporated by reference therein) does not include any untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Prospectus (and any amendments or supplements thereto and any
documents incorporated by reference therein) does not include any untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading;

(iii) except as set forth in the Prospectus, there shall have been no material adverse change
in the business, properties, prospects or condition (financial or otherwise) of the Company
subsequent to the date of the latest balance sheets provided in the Registration Statement and the
Prospectus; and

(iv) since the date hereof, no event has occurred which should have been set forth in an
amendment or supplement to the Prospectus in order to cause such Prospectus not to contain an
untrue statement of material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading, but which has not been so set forth.

Ameriprise shall receive a certificate dated the date hereof and each Documented Closing
Date, as the case may be, confirming the above.

 

 

 

If any of the conditions specified in this Agreement shall not have been fulfilled when and as
required by this Agreement, all Ameriprise’s obligations hereunder and thereunder may be canceled
by Ameriprise by notifying the Company of such cancellation in writing or by telecopy at any time,
and any such cancellation or termination shall be without liability of any party to any other party
except as otherwise provided in Sections 4(d), 8, , 10, 11 and 12 of this Agreement. All
certificates, letters and other documents referred to in this Agreement will be in compliance with
the provisions hereof only if they are reasonably satisfactory in form and substance to Ameriprise
and Ameriprise’s counsel. The Company will furnish Ameriprise with conformed copies of such
certificates, letters and other documents as Ameriprise shall reasonably request.

10. Indemnification.

(a) Indemnification by the Issuer Entities. Each Issuer Entity jointly and severally, agrees
to indemnify, defend and hold harmless Ameriprise and each person, if any, who controls Ameriprise
within the meaning of Section 15 of the Securities Act, and any of their respective officers,
directors, employees and agents from and against any and all loss, liability, claim, damage and
expense whatsoever (including but not limited to any and all expenses whatsoever reasonably
incurred in investigating, preparing for, defending against or settling any litigation, commenced
or threatened, or any claim whatsoever) arising out of or based upon:

(i) any untrue or alleged untrue statement of a material fact contained: (i) in the
Registration Statement (or any amendment thereto) or in the Prospectus (as from time to time
amended or supplemented) or any related preliminary prospectus; (ii) in any application or other
document (in this Section 10 collectively called “application”) executed by an Issuer Entity or
based upon information furnished by an Issuer Entity and filed in any jurisdiction in order to
qualify the Shares under the securities laws thereof, or in any amendment or supplement thereto; or
(iii) in the Company’s periodic reports such as Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q and current reports on Form 8-K; provided however that no Issuer Entity shall be liable
in any such case to the extent any such statement or omission was made in reliance upon and in
conformity with written information furnished to an Issuer Entity by Ameriprise expressly for use
in the Registration Statement or related preliminary prospectus or Prospectus or any amendment or
supplement thereof or in any of such applications or in any such sales as the case may be;

(ii) the omission or alleged omission from (i) the Registration Statement (or any
amendment thereto) or in the Prospectus (as from time to time amended or supplemented); (ii) any
applications; or (iii) the Company’s periodic reports such as Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and current reports on Form 8-K, of a material fact required to be
stated therein or necessary to make the statements therein in light of the circumstances under
which they were made not misleading; provided however that no Issuer Entity shall be liable in any
such case to the extent any such statement or omission was made in reliance upon and in conformity
with written information furnished to the Company by Ameriprise expressly for use in the
Registration Statement or related preliminary prospectus or Prospectus or any amendment or
supplement thereof or in any of such applications or in any such sales as the case may be;

(iii) any untrue statement of a material fact or alleged untrue statement of a material
fact contained in any supplemental sales material (whether designated for broker-dealer use or
otherwise) approved by the Company for use by Ameriprise or any omission or alleged omission to
state therein a material fact required to be stated or necessary in order to make the statements
therein, in light of the circumstances under which they were made and when read in conjunction with
the Prospectus delivered therewith not misleading;

 

 

 

(iv) any communication regarding the valuation of the Shares provided by or on behalf of
the Company; and

(v) the breach by any Issuer Entity or any employee or agent acting on their behalf, of
any of the representations, warranties, covenants, terms and conditions of this Agreement.

Notwithstanding the foregoing, no indemnification by an Issuer Entity of Ameriprise or each
person, if any, who controls Ameriprise within the meaning of Section 15 of the Securities Act, and
any of their respective officers, directors, employees and agents or its officers, directors or
control persons, pursuant to Section 10(a) shall be permitted under this Agreement for, or arising
out of, an alleged violation of federal or state securities laws, unless one or more of the
following conditions are met: (1) there has been a successful adjudication on the merits of each
count involving alleged securities law violations as to the particular indemnitee; (2) such claims
have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the
particular indemnitee; or (3) a court of competent jurisdiction approves a settlement of the claims
against the indemnitee and finds that indemnification of the settlement and the related costs
should be made, and the court considering the request for indemnification has been advised of the
position of the Commission and of the published position of any state securities regulatory
authority in which the securities were offered or sold as to indemnification for violations of
securities laws.

(b) Indemnification by the Sub-Advisor. The Sub-Advisor agrees to indemnify, defend and hold
harmless Ameriprise and each person, if any, who controls Ameriprise within the meaning of Section
15 of the Securities Act, and any of their respective officers, directors, employees and agents
from and against any and all loss, liability, claim, damage and expense whatsoever (including but
not limited to any and all expenses whatsoever reasonably incurred in investigating, preparing for,
defending against or settling any litigation, commenced or threatened, or any claim whatsoever)
arising out of or based upon:

(i) any untrue or alleged untrue statement of a material fact provided by or attributable to
the Sub-Advisor contained in the Registration Statement (or any amendment thereto) or in the
Prospectus (as from time to time amended or supplemented) or any related preliminary prospectus;
provided however that the Sub-Advisor shall not be liable in any such case to the extent any such
statement or omission was made in reliance upon and in conformity with written information
furnished to the Sub-Advisor by Ameriprise expressly for use in the Registration Statement or
related preliminary prospectus or Prospectus or any amendment or supplement thereof or in any of
such applications or in any such sales as the case may be;

(ii) the omission or alleged omission from the Registration Statement (or any amendment
thereto) or in the Prospectus (as from time to time amended or supplemented) of a material fact
provided by or attributable to the Sub-Advisor required to be stated therein or necessary to make
the statements therein not misleading; provided however that the Sub-Advisor shall not be liable in
any such case to the extent any such statement or omission was made in reliance upon and in
conformity with written information furnished to the Sub-Advisor by Ameriprise expressly for use in
the Registration Statement or related preliminary prospectus or Prospectus or any amendment or
supplement thereof or in any such sales as the case may be; and

(iii) the breach by the Sub-Advisor or any employee or agent acting on its behalf, of any of
the representations, warranties, covenants, terms and conditions of this Agreement.

 

 

 

Notwithstanding the foregoing, no indemnification by the Sub-Advisor of Ameriprise, or each
person, if any, who controls Ameriprise within the meaning of Section 15 of the Securities Act, and
any of their respective officers, directors, employees and agents or its officers, directors or
control persons, pursuant to Section 10(b) shall be permitted under this Agreement for, or arising
out of, an alleged violation of federal or state securities laws, unless one or more of the
following conditions are met: (1) there has been a successful adjudication on the merits of each
count involving alleged securities law violations as to the particular indemnitee; (2) such claims
have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the
particular indemnitee; or (3) a court of competent jurisdiction approves a settlement of the claims
against the indemnitee and finds that indemnification of the settlement and the related costs
should be made, and the court considering the request for indemnification has been advised of the
position of the Commission and of the published position of any state securities regulatory
authority in which the securities were offered or sold as to indemnification for violations of
securities laws.

(c) Indemnification by Ameriprise. Subject to the conditions set forth below, Ameriprise
agrees to indemnify and hold harmless each Issuer Entity, each of their directors and trustees,
those of its officers who have signed the Registration Statement and each other person, if any, who
controls an Issuer Entity within the meaning of Section 15 of the Securities Act to the same extent
as the foregoing indemnity from an Issuer Entity contained in subsections (a)(i) and (a)(ii) of
this Section, as incurred, but only with respect to an untrue statement or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact in the
Registration Statement (as from time to time amended or supplemented) or Prospectus, or any related
preliminary prospectus, or any application made in reliance upon or, in conformity with, written
information furnished by Ameriprise expressly for use in such Registration Statement or Prospectus
or any amendment or supplement thereto, or in any related preliminary prospectus or in any of such
applications.

(d) Procedure for Making Claims. Each indemnified party shall give prompt notice to each
indemnifying party of any claim or action (including any governmental investigation) commenced
against it in respect of which indemnity may be sought hereunder, but failure to so notify any
indemnifying party shall not relieve it from any liability that it may have hereunder, except to
the extent it has been materially prejudiced by such failure, and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity agreement. The
indemnifying party, jointly with any other indemnifying parties receiving such notice, shall assume
the defense of such action with counsel chosen by it and reasonably satisfactory to the indemnified
parties defendant in such action, unless such indemnified parties reasonably object to such
assumption on the ground that there may be legal defenses available to them which are different
from or in addition to those available to such indemnifying party. Any indemnified party shall
have the right to employ a separate counsel in any such action and to participate in the defense
thereof but the fees and expenses of such counsel shall be borne by such party unless such party
has objected in accordance with the preceding sentence, in which event such fees and expenses shall
be borne by the indemnifying parties. Except as set forth in the preceding sentence, if an
indemnifying party assumes the defense of such action, the indemnifying party shall not be liable
for any fees and expenses of separate counsel for the indemnified parties incurred thereafter in
connection with such action. In no event shall the indemnifying parties be liable for the
reasonable fees and expenses of more than one counsel for all indemnified parties in connection
with any one action or separate but similar or related actions in the same jurisdiction arising out
of the same general allegations or circumstances.

The indemnity agreements contained in this Section 10 and the warranties and representations
contained in this Agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party and shall survive any termination of this Agreement.
An indemnifying party shall not be liable to an indemnified party on account of any settlement,
compromise
or consent to the entry of judgment of any claim or action effected without the consent of
such indemnifying party. The Company agrees promptly to notify Ameriprise of the commencement of
any litigation or proceedings against the Company in connection with the issue and sale of the
Shares or in connection with the Registration Statement or Prospectus.

 

 

 

(e) Contribution. Subject to the limitations and exceptions set forth in Section 10(a) hereof
and in order to provide for just and equitable contribution where the indemnification provided for
in this Section 10 is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, liabilities, claims, damages or expenses (or
actions in respect thereof) referred to therein (collectively, “Losses”), except by reason of the
terms thereof, the Issuer Entities on the one hand and Ameriprise on the other shall contribute to
the amount paid or payable by such indemnified party as a result of such Losses (or actions in
respect thereof) in such proportion as is appropriate to reflect the relative benefits received by
each of the Issuer Entities, on the one hand, and Ameriprise on the other from the Offering based
on the public offering price of the Shares sold and the Selling Commissions, Marketing Fees and due
diligence expense reimbursements received by Ameriprise with respect to such Shares sold. If,
however, the allocation provided by the immediately preceding sentence is not permitted by
applicable law, then each applicable indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such indemnified party in such proportion
as is appropriate to reflect not only such relative benefits referred to above but also the
relative fault of the Issuer Entities, on the one hand and Ameriprise on the other in connection
with the statements or omissions which resulted in such Losses (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative benefits received by the Issuer
Entities, on the one hand and Ameriprise on the other shall be deemed to be in the same proportion
as (a) the sum of (i) the aggregate net compensation retained by the Issuer Entities and their
affiliates for the purchase of Shares sold by Ameriprise and (ii) total proceeds from the Offering
(net of Selling Commissions, Marketing Fees and due diligence expense reimbursements paid to
Ameriprise but before deducting expenses) received by the Company from the sale of Shares by
Ameriprise bears to (b) the Selling Commissions, Marketing Fees and due diligence expense
reimbursements retained by Ameriprise. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by an Issuer Entity, on the one
hand or Ameriprise on the other. The Company agrees with Ameriprise that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation,
or by any other method of allocation which does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an indemnified party as a
result of the Losses referred to above in this subsection (d) shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this subsection (d),
Ameriprise shall not be required to contribute any amount in excess of the amount by which the
total price at which the Shares subscribed for through Ameriprise were offered to the subscribers
exceeds the amount of any damages which Ameriprise has otherwise been required to pay by reason of
any such untrue or alleged untrue statement or omission or alleged omission. Further, in no event
shall the amount of Ameriprise’s contribution to the liability exceed the net aggregate Selling
Commissions, Marketing Fees, due diligence expense reimbursements and any other compensation
retained by Ameriprise from the proceeds of the Offering. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act or Section 10(b) of
the Exchange Act, as amended) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. For purposes of this Section, any person that controls
Ameriprise within the meaning of Section 15 of the Securities Act shall have the same right to
contribution as Ameriprise, and each person who controls the Company within the meaning of Section
15 of the Securities Act shall have the same right to contribution as the Company.

 

 

 

11. Representations and Agreements to Survive.

All representations and warranties contained in this Agreement or in certificates and all
agreements contained in Sections 4(d), 8, 10, 11 and 12 of this Agreement shall remain operative
and in full force and effect regardless of any investigation made by any party, and shall survive
the Termination of this Agreement.

12. Effective Date, Term and Termination of this Agreement.

(a) This Agreement shall become effective as of the date it is executed by all parties hereto.
After this Agreement becomes effective, any party may terminate it at any time for any reason by
giving two days’ prior written notice to the other parties. Ameriprise will suspend or terminate
the offer and sale of Shares as soon as practicable after being requested to do so by the Company
or the Dealer Manager at any time.

(b) Additionally, Ameriprise shall have the right to terminate this Agreement at any time
during the Effective Term without liability of any party to any other party except as provided in
Section 12(c) hereof if: (i) any representations or warranties of any Issuer Entity hereunder
shall be found to have been incorrect; or (ii) any Issuer Entity shall fail, refuse or be unable to
perform any condition of its obligations hereunder, or (iii) the Prospectus shall have been amended
or supplemented despite Ameriprise’s objection to such amendment or supplement, or (iv) the United
States shall have become involved in a war or major hostilities or a material escalation of
hostilities or acts of terrorism involving the United States or other national or international
calamity or crisis (other than hostilities including Iraq and Afghanistan); or (v) a banking
moratorium shall have been declared by a state or federal authority or person; or (vi) the Company
shall have sustained a material or substantial loss by fire, flood, accident, hurricane,
earthquake, theft, sabotage or other calamity or malicious act which, whether or not said loss
shall have been insured, will in Ameriprise’s good faith opinion make it inadvisable to proceed
with the offering and sale of the Shares; or (vii) there shall have been, subsequent to the dates
information is given in the Registration Statement and the Prospectus, such change in the business,
properties, affairs, condition (financial or otherwise) or prospects of the Company whether or not
in the ordinary course of business or in the condition of securities markets generally as in
Ameriprise’s good faith judgment would make it inadvisable to proceed with the offering and sale of
the Shares, or which would materially adversely affect the operations of the Company.

(c) In the event this Agreement is terminated by any party pursuant to Sections 12(a) or 12(b)
hereof, the Company shall pay all expenses of the Offering as required by Section 8 hereof and no
party will have any additional liability to any other party except for any liability which may
exist under Sections 3(d) and 10 hereof. Following the termination of the Offering, in no event
will the Company be liable to reimburse Ameriprise for expenses other than as set forth in the
previous sentence and Ameriprise’s actual and reasonable out-of-pocket expenses incurred following
the termination of the Offering, including, without limitation, the cost of data transmissions and
other related client transmissions.

(d) If Ameriprise elects to terminate this Agreement as provided in this Section 12,
Ameriprise shall notify the Company promptly by telephone or facsimile with confirmation by letter.
If the Company elects to terminate this Agreement as provided in this Section 12, the Company
shall notify Ameriprise promptly by telephone or facsimile with confirmation by letter.

 

 

 

13. Notices.

(a) All communications hereunder, except as herein otherwise specifically provided, shall be
in writing and if sent to an Issuer Entity shall be mailed, or personally delivered, to Carey
Watermark Investors Incorporated, 50 Rockefeller Plaza, New York, NY 10020, Attention: General
Counsel, and if sent to Ameriprise shall be mailed, or personally delivered, to 369 Ameriprise
Financial Center, Minneapolis, MN 55474, Attention: General Counsel.

(b) Notice shall be deemed to be given by any respective party to any other respective party
when it is mailed or personally delivered as provided in subsection (a) of this Section 13.

12. Parties. This Agreement shall inure solely to the benefit of, and shall be
binding upon Ameriprise, the Issuer Entities, and the controlling persons, trustees, directors and
officers referred to in Section 10 hereof, and their respective successors, legal representatives
and assigns, and no other person shall have or be construed to have any legal or equitable right,
remedy or claim under or in respect of or by virtue of this Agreement or any provision herein
contained. Notwithstanding the foregoing, this Agreement may not be assigned without the consent
of the parties hereto.

13. Choice of Law and Arbitration. 

(a) Regardless of the place of its physical execution or performance, the provisions of this
Agreement will in all respects be construed according to, and the rights and liabilities of the
parties hereto will in all respects be governed by, the substantive laws of New York without regard
to and exclusive of New York’s conflict of laws rules.

(b) Any dispute between the parties concerning this Agreement not resolved between the parties
will be arbitrated in accordance with the rules and regulations of FINRA. In the event of any
dispute between Ameriprise and any Issuer Entity, Ameriprise and such Issuer Entity will continue
to perform its respective obligations under this Agreement in good faith during the resolution of
such dispute unless and until this Agreement is terminated in accordance with the provisions
hereof.

14. Counterparts. This Agreement may be signed by the parties hereto in two or more
counterparts, each of which shall be deemed to be an original, which together shall constitute one
and the same Agreement among the parties. Facsimile signatures and signatures transmitted via
electronic mail (accompanied by a PDF scanned attachment) shall be as effective as original
signatures.

15. Finders’ Fees. Ameriprise shall have no liability for any finders’ fees owed in
connection with the transactions contemplated by this Agreement.

16. Severability. Any provision of this Agreement, which is invalid or unenforceable
in any jurisdiction, shall be ineffective to the extent of such invalidity or unenforceability
without invalidating or rendering unenforceable the remaining provisions hereof, and any such
invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provisions in any other jurisdiction.

17. Use and Disclosure of Confidential Information. Notwithstanding anything to the
contrary contained in this Agreement, and in addition to and not in lieu of other provisions in
this Agreement:

Ameriprise Confidential Information.

(a) “Ameriprise Confidential Information” includes, but is not limited to, all proprietary and
confidential information of Ameriprise and its subsidiaries, affiliates, and licensees, including
without limitation all information regarding its customers and the customers of its subsidiaries,
affiliates, or licensees (together “Ameriprise Customers”); or the accounts, account numbers,
names, addresses, social security numbers or any other personal identifier of such Ameriprise
Customers; or any information
derived therefrom. Ameriprise Confidential Information will not include information which is
(i) in or becomes part of the public domain, except when such information is in the public domain
due to disclosure by an Issuer Entity, in violation of this Agreement, (ii) demonstrably known to
an Issuer Entity prior to execution of this Agreement, (iii) independently developed by an Issuer
Entity in the ordinary course of business outside of this Agreement, or (iv) rightfully and
lawfully obtained by an Issuer Entity from any third party other than Ameriprise.

 

 

 

(b) No Issuer Entity may use or disclose Ameriprise Confidential Information for any purpose
other than to carry out the purpose for which Ameriprise Confidential Information was provided to
the Issuer Entities as set forth in the Agreement and/or as may otherwise be required or compelled
by applicable law, regulation or court order, and agrees to cause all the Issuer Entities’
employees, agents, representatives, or any other party to whom the Issuer Entities may provide
access to or disclose Ameriprise Confidential Information to limit the use and disclosure of
Ameriprise Confidential Information to that purpose. If any Issuer Entity is required or compelled
by applicable law, regulation or court order to disclose Ameriprise Confidential Information, the
Issuer Entity shall use its reasonable best efforts to notify Ameriprise of such requirement prior
to making the disclosure.

(c) The Issuer Entities agree to implement reasonable measures designed (i) to assure the
security and confidentiality of Ameriprise Confidential Information; (ii) to protect such
information against any anticipated threats or hazards to the security or integrity of such
information; (iii) to protect against unauthorized access to, or use of, Ameriprise Confidential
Information that could result in substantial harm or inconvenience to any Ameriprise Customer; (iv)
to protect against unauthorized disclosure of non-public personal information to unaffiliated third
parties; and (v) to otherwise ensure its compliance with all applicable domestic, foreign and local
laws and regulations (including, but not limited to, the Gramm-Leach-Bliley Act and Massachusetts
201 C.M.R. sections 17.00-17.04 as applicable ) and any other legal, regulatory or SRO
requirements. The Issuer Entities further agree to cause all of their respective agents,
representatives, subcontractors, or any other party to whom the Issuer Entities may provide access
to or disclose Ameriprise Confidential to implement appropriate measures designed to meet the
objectives set forth in this paragraph.

(d) Upon Ameriprise’s request, the Issuer Entities shall promptly return Ameriprise
Confidential Information (and any copies, extracts, and summaries thereof) to Ameriprise, or, with
Ameriprise’s written consent, shall promptly destroy, in a manner satisfactory to Ameriprise, such
materials (and any copies, extracts, and summaries thereof) and shall further provide Ameriprise
with written confirmation of same.

18. Amendments. This Agreement shall only be amended upon written agreement executed
by each of the parties hereto.

19. Additional Offerings. The terms of this Agreement may be extended to cover
additional offerings of shares of the Company by the execution by the parties hereto of an addendum
identifying the shares and registration statement relating to such additional offering. Upon
execution of such addendum, the terms “Shares”, “Offering”, “Registration Statement” and
“Prospectus” set forth herein shall be deemed to be amended as set forth in such addendum.

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date
first set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Carey Watermark Investors Incorporated	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Susan C. Hyde	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Susan C. Hyde	 	 
	 

	 	 	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Carey Financial, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Richard J. Paley	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Richard J. Paley	 	 
	 

	 	 	 	 	 	Title:
	 	General Counsel and	 	 
	 

	 	 	 	 	 	 	 	Chief Compliance Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Carey Lodging Advisors, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Thomas E. Zacharias	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Thomas E. Zacharias	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Operating Officer and	 	 
	 

	 	 	 	 	 	 	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	W. P. Carey & Co. LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Mark DeCesaris	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Mark DeCesaris	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CWA, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Michael G. Medzigian	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Michael G. Medzigian	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 

Accepted as of the date first above written:

AMERIPRISE FINANCIAL SERVICES, INC.

	 	 	 	 	 	 	 
	By:	 	/s/ Jennifer Simon	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Jennifer Simon	 	 
	 

	 	Title:
	 	Vice President, Alternative InvestmentsExhibit 10.3

Exhibit 10.3

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

PLAN DOCUMENT

 

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

     Section 1. Purpose: 

     By execution of the Adoption Agreement, the Employer has adopted the Plan set forth
herein, and in the Adoption Agreement, to provide a means by which certain management Employees or
Independent Contractors of the Employer may elect to defer receipt of current Compensation from the
Employer in order to provide retirement and other benefits on behalf of such Employees or
Independent Contractors of the Employer, as selected in the Adoption Agreement. The Plan is
intended to be a nonqualified deferred compensation plan that complies with the provisions of
Section 409A of the Internal Revenue Code (the “Code”). The Plan is also intended to be an unfunded
plan maintained primarily for the purpose of providing deferred compensation benefits for a select
group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(l)
of the Employee Retirement Income Security Act of 1974 (“ERISA”) and independent contractors.
Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and
administered in a manner consistent with these intentions.

     Section 2. Definitions: 

     As used in the Plan, including this Section 2, references to one gender shall
include the other, unless otherwise indicated by the context:

     2.1 “Active Participant” means, with respect to any day or date, a Participant who
is in Service on such day or date; provided, that a Participant shall cease to be an Active
Participant (i) immediately upon a determination by the Committee that the Participant has ceased
to be an Employee or Independent Contractor, or (ii) at the end

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of the Plan Year that the Committee determines the Participant no longer meets the eligibility
requirements of the Plan.

     2.2 “Adoption Agreement” means the written agreement pursuant to which the Employer
adopts the Plan. The Adoption Agreement is a part of the Plan as applied to the Employer.

     2.3 “Beneficiary” means the person, persons, entity or entities designated or
determined pursuant to the provisions of Section 13 of the Plan.

     2.4 “Board” means the Board of Directors of the Company, if the Company is a
corporation. If the Company is not a corporation, “Board” shall mean the Company.

     2.5 “Change in Control Event” means an event described in Section 409A(a)(2)(A)(v)
of the Code (or any successor provision thereto) and the regulations thereunder.

     2.6 “Committee” means the persons or entity designated in the Adoption Agreement to
administer the Plan. If the Committee designated in the Adoption Agreement is unable to serve, the
Employer shall satisfy the duties of the Committee provided for in Section 9.

     2.7 “Company” means the company designated in the Adoption Agreement as such.

     2.8 “Compensation” shall have the meaning designated in the Adoption Agreement.

     2.9 “Crediting Date” means the date designated in the Adoption Agreement for
crediting the amount of any Participant Deferral Credits or Employer Credits to the Deferred
Compensation Account of a Participant.

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     2.10 “Deferred Compensation Account” means the account maintained with respect to
each Participant under the Plan. The Deferred Compensation Account shall be credited with
Participant Deferral Credits and Employer Credits, credited or debited for deemed investment gains
or losses, and adjusted for payments in accordance with the rules and elections in effect under
Section 8. The Deferred Compensation Account of a Participant shall include any In-Service or
Education Account of the Participant, if applicable.

     2.11 “Disabled” means Disabled within the meaning of Section 409A of the Code and
the regulations thereunder. Generally, this means that the Participant is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering Employees of the Employer.

     2.12 “Education Account” is an In-Service Account which will be used by the
Participant for educational purposes.

     2.13 “Effective Date” shall be the date designated in the Adoption Agreement.

     2.14 “Employee” means an individual in the Service of the Employer if the
relationship between the individual and the Employer is the legal relationship of employer and
employee. An individual shall cease to be an Employee upon the Employee’s Separation from Service.

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     2.15 “Employer” means the Company, as identified in the Adoption Agreement, and any
Participating Employer which adopts this Plan. An Employer may be a corporation, a limited
liability company, a partnership or sole proprietorship.

     2.16 “Employer Credits” means the amounts credited to the Participant’s Deferred
Compensation Account by the Employer pursuant to the provisions of Section 4.2.

     2.17 “Grandfathered Amounts” means, if applicable, the amounts that were deferred under
the Plan and were earned and vested within the meaning of Section 409A of the Code and regulations
thereunder as of December 31, 2004. Grandfathered Amounts shall be subject to the terms designated
in the Adoption Agreement.

     2.18 “Independent Contractor” means an individual in the Service of the Employer if
the relationship between the individual and the Employer is not the legal relationship of employer
and employee. An individual shall cease to be an Independent Contractor upon the termination of
the Independent Contractor’s Service. An Independent Contractor shall include a director of the
Employer who is not an Employee.

     2.19 “In-Service Account” means a separate account to be kept for each Participant
that has elected to take in-service distributions as described in Section 5.4. The
In-Service Account shall be adjusted in the same manner and at the same time as the Deferred
Compensation Account under Section 8 and in accordance with the rules and elections in effect
under Section 8.

     2.20 “Normal Retirement Age” of a Participant means the age designated in the
Adoption Agreement.

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     2.21 “Participant” means with respect to any Plan Year an Employee or Independent
Contractor who has been designated by the Committee as a Participant and who has entered the Plan
or who has a Deferred Compensation Account under the Plan; provided that if the Participant is an
Employee, the individual must be a highly compensated or management employee of the Employer within
the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

     2.22 “Participant Deferral Credits” means the amounts credited to the Participant’s
Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.1.

     2.23 “Participating Employer” means any trade or business (whether or not
incorporated) which adopts this Plan with the consent of the Company identified in the Adoption
Agreement.

     2.24 “Participation Agreement” means a written agreement entered into between a
Participant and the Employer pursuant to the provisions of Section 4.1

     2.25 “Performance-Based Compensation” means compensation where the amount of, or
entitlement to, the compensation is contingent on the satisfaction of preestablished organizational
or individual performance criteria relating to a performance period of at least twelve months.
Organizational or individual performance criteria are considered preestablished if established in
writing within 90 days after the commencement of the period of service to which the criteria
relates, provided that the outcome is substantially uncertain at the time the criteria are
established. Performance-based compensation may include payments based upon subjective performance
criteria as

5

 

provided in regulations and administrative guidance promulgated under Section 409A of the Code.

     2.26 “Plan” means The Executive Nonqualified Excess Plan, as herein set out and as
set out in the Adoption Agreement, or as duly amended. The name of the Plan as applied to the
Employer shall be designated in the Adoption Agreement.

     2.27 “Plan-Approved Domestic Relations Order” shall mean a judgment, decree, or
order (including the approval of a settlement agreement) which is:

     
2.27.1 Issued pursuant to a
State’s domestic relations law;

     2.27.2 Relates to the provision of child support, alimony payments or marital property rights
to a Spouse, former Spouse, child or other dependent of the Participant;

     2.27.3 Creates or recognizes the right of a Spouse, former Spouse, child or other dependent of
the Participant to receive all or a portion of the Participant’s benefits under the Plan;

     2.27.4 Requires payment to such person of their interest in the Participant’s benefits in a
lump sum payment at a specific time; and

     2.27.5 Meets such other requirements established by the Committee.

     2.28 “Plan Year” means the twelve-month period ending on the last day of the month
designated in the Adoption Agreement; provided that the initial Plan Year may have fewer than
twelve months.

     2.29 “Qualifying Distribution Event” means (i) the Separation from Service of the
Participant, (ii) the date the Participant becomes Disabled, (iii) the death of the Participant,
(iv) the time specified by the Participant for an In-Service or Education Distribution, (v) a
Change in Control Event, or (vi) an Unforeseeable Emergency, each to the extent provided in Section
5.

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     2.30 “Seniority Date” shall have the meaning designated in the Adoption Agreement.

     2.31 “Separation from Service” or “Separates from Service” means a
“separation from service” within the meaning of Section 409A of the Code.

     2.32 “Service” means employment by the Employer as an Employee. For purposes of the Plan, the
employment relationship is treated as continuing intact while the Employee is on military leave,
sick leave, or other bona fide leave of absence if the period of such leave does not exceed six
months, or if longer, so long as the Employee’s right to reemployment is provided either by statute
or contract. If the Participant is an Independent Contractor, “Service” shall mean the period
during which the contractual relationship exists between the Employer and the Participant. The
contractual relationship is not terminated if the Participant anticipates a renewal of the contract
or becomes an Employee.

     2.33  “ Service Bonus ” means any bonus paid to a Participant by the Employer which is
not Performance-Based Compensation.

     2.34 “Specified Employee” means an Employee who meets the requirements for key
employee treatment under Section 416(i)(l)(A)(i), (ii) or (iii) of the Code (applied in accordance
with the regulations thereunder and without regard to Section 416(i)(5) of the Code) at
any time during the twelve month period ending on December 31 of each year (the “identification
date”). Unless binding corporate action is taken to establish different rules for determining
Specified Employees for all plans of the Company and its controlled group members that are subject
to Section 409A of the Code, the foregoing rules and the other default rules under the regulations
of Section 409A of the Code shall

7

 

apply. If the person is a key employee as of any identification date, the person is treated as a
Specified Employee for the twelve-month period beginning on the first day of the fourth month
following the identification date.

     2.35
 “Spouse” or “Surviving Spouse” means, except as otherwise provided in the Plan,
a person who is the legally married spouse or surviving spouse of a Participant.

     2.36 “Unforeseeable Emergency” means an “unforeseeable emergency” within the meaning
of Section 409A of the Code.

     2.37 “Years of Service” means each Plan Year of Service completed by the
Participant. For vesting purposes, Years of Service shall be calculated from the date designated in
the Adoption Agreement and Service shall be based on service with the Company and all Participating
Employers.

     Section 3. Participation: 

     The Committee in its discretion shall designate each Employee or Independent Contractor
who is eligible to participate in the Plan. A Participant who Separates from Service with the
Employer and who later returns to Service will not be an Active Participant under the Plan except
upon satisfaction of such terms and conditions as the Committee shall establish upon the
Participant’s return to Service, whether or not the Participant shall have a balance remaining in
the Deferred Compensation Account under the Plan on the date of the return to Service.

     Section 4. Credits to Deferred Compensation Account: 

     4.1 Participant Deferral Credits. To the extent provided in the Adoption
Agreement, each Active Participant may elect, by entering into a Participation Agreement with
the Employer, to defer the receipt of Compensation from the Employer by a dollar

8

 

amount or percentage specified in the Participation Agreement. The amount of Compensation the
Participant elects to defer, the Participant Deferral Credit, shall be credited by the Employer to
the Deferred Compensation Account maintained for the Participant pursuant to Section 8. The
following special provisions shall apply with respect to the Participant Deferral Credits of a
Participant:

     4.1.1 The Employer shall credit to the Participant’s Deferred Compensation Account on each
Crediting Date an amount equal to the total Participant Deferral Credit for the period ending on
such Crediting Date.

     4.1.2 An election pursuant to this Section 4.1 shall be made by the Participant by executing
and delivering a Participation Agreement to the Committee. Except as otherwise provided in this
Section 4.1, the Participation Agreement shall become effective with respect to such Participant as
of the first day of January following the date such Participation Agreement is received by the
Committee. A Participant’s election may be changed at any time prior to the last permissible date
for making the election as permitted in this Section 4.1, and shall thereafter be irrevocable. The
election of a Participant shall continue in effect for subsequent years until modified by the
Participant as permitted in this Section 4.1.

     4.1.3 A Participant may execute and deliver a Participation Agreement to the Committee within
30 days after the date the Participant first becomes eligible to participate in the Plan to be
effective as of the first payroll period next following the date the Participation Agreement is
fully executed by the Participant. Whether a Participant is treated as newly eligible for
participation under this Section shall be determined in accordance with Section 409A of the Code
and the regulations thereunder, including (i) rules that treat all elective deferral account
balance plans as one plan, and (ii) rules that treat a previously eligible Employee as newly
eligible if his benefits had been previously distributed or if he has been ineligible for 24
months. For Compensation that is earned based upon a specified performance period (for example, an
annual bonus), where a deferral election is made under this Section but after the beginning of the
performance period, the election will only apply to the portion of the Compensation equal to the
total amount of the Compensation for the service period multiplied by the ratio of the number of
days remaining in the performance period after the election over the total number of days in the
performance period.

     4.1.4 A Participant may unilaterally modify a Participation Agreement (either to terminate,
increase or decrease the portion of his future Compensation which is subject to deferral within the
percentage limits set forth in Section 4.1 of the Adoption Agreement) by providing a written
modification of the Participation Agreement to the Committee. The modification shall become
effective as of the first day of January following the date such written modification is received
by the Committee.

9

 

     4.1.5 If the Participant performed services continuously from the later of the beginning of
the performance period or the date upon which the performance criteria are established through the
date upon which the Participant makes an initial deferral election, a Participation Agreement
relating to the deferral of Performance-Based Compensation may be executed and delivered to the
Committee no later than the date which is 6 months prior to the end of the performance period,
provided that in no event may an election to defer Performance-Based Compensation be made after
such Compensation has become readily ascertainable.

     4.1.6 If the Employer has a fiscal year other than the calendar year, Compensation relating to
Service in the fiscal year of the Employer (such as a bonus based on the fiscal year of the
Employer), of which no amount is paid or payable during the fiscal year, may be deferred at the
Participant’s election if the election to defer is made not later than the close of the Employer’s
fiscal year next preceding the first fiscal year in which the Participant performs any services for
which such Compensation is payable.

     4. 1.7 Compensation payable after the last day of the Participant’s taxable year solely for
services provided during the final payroll period containing the last day of the Participant’s
taxable year (i.e., December 31) is treated for purposes of this Section 4.1 as Compensation for services
performed in the subsequent taxable year.

     4. 1.8 The Committee may from time to time establish policies or rules consistent with the
requirements of Section 409A of the Code to govern the manner in which Participant Deferral Credits
may be made.

     4.1.9 If a Participant becomes Disabled, or applies for and is eligible for a distribution on
account of an Unforeseeable Emergency during a Plan Year or as required due to a hardship
distribution under Section 1.401(k)-1(d)(3) of the Code, his deferral election for such Plan Year
shall be cancelled.

     4.2 Employer Credits. If designated by the Employer in the Adoption Agreement, the Employer
shall cause the Committee to credit to the Deferred Compensation Account of each Active Participant
an Employer Credit as determined in accordance with the Adoption Agreement. A Participant must make
distribution elections with respect to any Employer Credits credited to his Deferred Compensation
Account by the deadline that would apply under Section 4.1 for distribution elections with respect
to Participant Deferral Credits credited at the same time, on a Participation

10

 

Agreement that is timely executed and delivered to the Committee pursuant to Section
4.1.

     4.3 Deferred Compensation Account. All Participant Deferral Credits and Employer
Credits shall be credited to the Deferred Compensation Account of the Participant as provided in
Section 8.

     Section 5. Qualifying Distribution Events: 

     5.1 Separation from Service. If the Participant Separates from Service with the Employer,
the vested balance in the Deferred Compensation Account shall be paid to the Participant by the
Employer as provided in Section 7. Notwithstanding the foregoing, no distribution shall be made
earlier than six months after the date of Separation from Service (or, if earlier, the date of
death) with respect to a Participant who as of the date of Separation from Service is a Specified
Employee of a corporation the stock in which is traded on an established securities market or
otherwise. Any payments to which such Specified Employee would be entitled during the first six
months following the date of Separation from Service shall be accumulated and paid on the first day
of the seventh month following the date of Separation from Service.

     5.2 Disability. If the Employer designates in the Adoption Agreement that distributions are
permitted under the Plan when a Participant becomes Disabled, and the Participant becomes Disabled
while in Service, the vested balance in the Deferred Compensation Account shall be paid to the
Participant by the Employer as provided in Section 7.

     5.3 Death. If the Participant dies while in Service, the Employer shall pay a
benefit to the Participant’s Beneficiary in the amount designated in the Adoption

11

 

Agreement. Payment of such benefit shall be made by the Employer as provided in Section 7.

     5.4 In-Service or Education Distributions. If the Employer designates in the
Adoption Agreement that in-service or education distributions are permitted under the Plan, a
Participant may designate in the Participation Agreement to have a specified amount credited to the
Participant’s In-Service or Education Account for in-service or education distributions at the
date specified by the Participant. In no event may an in-service or education distribution of an
amount be made before the date that is two years after the first day of the year in which such
amount was credited to the In-Service or Education Account. Notwithstanding the foregoing, if a
Participant incurs a Qualifying Distribution Event prior to the date on which the entire balance in
the In-Service or Education Account has been distributed, then the balance in the In-Service or
Education Account on the date of the Qualifying Distribution Event shall be paid as provided under
Section 7.1 for payments on such Qualifying Distribution Event.

     5.5 Change in Control Event. If the Employer designates in the Adoption Agreement
that distributions are permitted under the Plan upon the occurrence of a Change in Control Event,
the Participant may designate in the Participation Agreement to have the vested balance in the
Deferred Compensation Account paid to the Participant upon a Change in Control Event by the
Employer as provided in Section 7.

     5.6 Unforeseeable Emergency. If the Employer designates in the Adoption Agreement
that distributions are permitted under the Plan upon the occurrence of an Unforeseeable Emergency
event, a distribution from the Deferred Compensation Account

12

 

may be made to a Participant in the event of an Unforeseeable Emergency, subject to the following
provisions:

     5.6.1 A Participant may, at any time prior to his Separation from Service for any reason, make
application to the Committee to receive a distribution in a lump sum of all or a portion of the
vested balance in the Deferred Compensation Account (determined as of the date the distribution, if
any, is made under this Section 5.6) because of an Unforeseeable Emergency. A distribution because
of an Unforeseeable Emergency shall not exceed the amount required to satisfy the Unforeseeable
Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such
distribution, after taking into account the extent to which the Unforeseeable Emergency may be
relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship) or by stopping current deferrals under the Plan pursuant to Section 4.1.9.

     5.6.2 The Participant’s request for a distribution on account of Unforeseeable Emergency must
be made in writing to the Committee. The request must specify the nature of the financial hardship,
the total amount requested to be distributed from the Deferred Compensation Account, and the total
amount of the actual expense incurred or to be incurred on account of the Unforeseeable Emergency.

     5.6.3 If a distribution under this Section 5.6 is approved by the Committee, such distribution
will be made as soon as practicable following the date it is approved. The processing of the
request shall be completed as soon as practicable from the date on which the Committee receives the
properly completed written request for a distribution on account of an Unforeseeable Emergency. If
a Participant’s Separation from Service occurs after a request is approved in accordance with this
Section 5.6.3, but prior to distribution of the full amount approved, the approval of the request
shall be automatically null and void and the benefits which the Participant is entitled to receive
under the Plan shall be distributed in accordance with the applicable distribution provisions of
the Plan.

     5.6.4 The Committee may from time to time adopt additional policies or rules consistent with
the requirements of Section 409A of the Code to govern the manner in which such distributions may
be made so that the Plan may be conveniently administered.

     Section 6. Vesting:

     A Participant shall be fully vested in the portion of his Deferred Compensation Account
attributable to Participant Deferral Credits, and all income, gains and losses attributable
thereto. A Participant shall become fully vested in the portion of his Deferred

13

 

Compensation Account attributable to Employer Credits, and income, gains and losses attributable
thereto, in accordance with the vesting schedule and provisions designated by the Employer in the
Adoption Agreement. If a Participant’s Deferred Compensation Account is not fully vested upon
Separation from Service, the portion of the Deferred Compensation Account that is not fully vested
shall thereupon be forfeited.

     Section 7. Distribution Rules: 

     7.1
Payment Options. The Employer shall designate in the Adoption Agreement the payment
options which may be elected by the Participant (lump sum, annual installments, or a combination of
both). Different payment options may be made available for each Qualifying Distribution Event, and
different payment options may be available for different types of Separations from Service, all as
designated in the Adoption Agreement. The Participant shall elect in the Participation Agreement
the method under which the vested balance in the Deferred Compensation Account will be distributed
from among the designated payment options. The Participant may at such time elect a different
method of payment for each Qualifying Distribution Event as specified in the Adoption Agreement. If
the Participant is permitted by the Employer in the Adoption Agreement to elect different payment
options and does not make a valid election, the vested balance in the Deferred Compensation Account
will be distributed as a lump sum.

     Notwithstanding the foregoing, if certain Qualifying Distribution Events occur prior to the date on
which the vested balance of a Participant’s Deferred Compensation Account is completely paid
pursuant to this Section 7.1 following the occurrence of certain initial Qualifying Distribution
Events, the following rules apply:

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     7.1.1 If the initial Qualifying Distribution Event is a Separation from Service or
Disability, and the Participant subsequently dies, the remaining unpaid vested balance of a
Participant’s Deferred Compensation Account shall be paid as a lump sum.

     7.1.2 If the initial Qualifying Distribution Event is a Change in Control Event, and any subsequent
Qualifying Distribution Event occurs (except an In-Service or Education Distribution described in
Section 2.29(iv)), the remaining unpaid vested balance of a Participant’s Deferred Compensation
Account shall be paid as provided under Section 7.1 for payments on such subsequent Qualifying
Distribution Event.

     7.2 Timing of Payments. Payment shall be made in the manner elected by the Participant and shall
commence as soon as practicable after (but no later than 60 days after) the distribution date
elected for the Qualifying Distribution Event. In the event the Participant fails to make a valid
election of the payment method, the distribution will be made in a single lump sum payment as soon
as practicable after (but no later than 60 days after) the Qualifying Distribution Event. A payment
may be further delayed to the extent permitted in accordance with regulations and guidance under
Section 409A of the Code.

     7.3 Installment Payments. If the Participant elects to receive installment payments upon a
Qualifying Distribution Event, the payment of each annual installment shall be made on the
anniversary of the date of the first installment payment, and the amount of the annual installment
shall be adjusted on such anniversary for credits or debits to the Participant’s account pursuant
to Section 8 of the Plan. Such adjustment shall be made by dividing the balance in the Deferred
Compensation Account on such date by the number of annual installments remaining to be paid
hereunder; provided that the last annual installment due under the Plan shall be the entire amount
credited to the Participant’s account on the date of payment.

     7.4 De Minimis Amounts. Notwithstanding any payment election made by the Participant, if the
Employer designates a pre-determined de minimis amount in the

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Adoption Agreement, the vested balance in the Deferred Compensation Account of the Participant will
be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution
Event the vested balance does not exceed such pre-determined de minimis amount; provided, however,
that such distribution will be made only where the Qualifying Distribution Event is a Separation
from Service, death, Disability (if applicable) or Change in Control Event (if applicable). Such
payment shall be made on or before the later of (i) December 31 of the calendar year in which the
Qualifying Distribution Event occurs, or (ii) the date that is 2-1/2 months after the Qualifying
Distribution Event occurs. In addition, the Employer may distribute a Participant’s vested balance
at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and
results in the termination of the Participant’s entire interest in the Plan as provided under
Section 409A of the Code.

     7.5 Subsequent Elections. With the consent of the Committee, a Participant may delay or
change the method of payment of the Deferred Compensation Account subject to the following
requirements:

     7.5.1 The new election may not take effect until at least 12 months after the date on which the new
election is made.

     7.5.2 If the new election relates to a payment for a Qualifying Distribution Event other than the
death of the Participant, the Participant becoming Disabled, or an Unforeseeable Emergency, the new
election must provide for the deferral of the payment for a period of at least five years from the
date such payment would otherwise have been made.

     7.5.3 If the new election relates to a payment from the In-Service or Education Account, the new
election must be made at least 12 months prior to the date of the first scheduled payment from such
account.

16

 

For purposes of this Section 7.5 and Section 7.6, a payment is each separately identified
amount to which the Participant is entitled under the Plan; provided, that entitlement to a series
of installment payments is treated as the entitlement to a single payment.

     7.6 Acceleration Prohibited. The acceleration of the time or schedule of any payment due
under the Plan is prohibited except as expressly provided in regulations and administrative
guidance promulgated under Section 409A of the Code (such as accelerations for domestic relations
orders and employment taxes). It is not an acceleration of the time or schedule of payment if the
Employer waives or accelerates the vesting requirements applicable to a benefit under the Plan.

     Section 8. Accounts; Deemed Investment; Adjustments to Account: 

     8.1 Accounts. The Committee shall establish a book reserve account, entitled the
“Deferred Compensation Account,” on behalf of each Participant. The Committee shall also establish
an In-Service or Education Account as a part of the Deferred Compensation Account of each
Participant, if applicable. The amount credited to the Deferred Compensation Account shall be
adjusted pursuant to the provisions of Section 8.3.

     8.2 Deemed Investments. The Deferred Compensation Account of a Participant shall be
credited with an investment return determined as if the account were invested in one or more
investment funds made available by the Committee. The Participant shall elect the investment funds
in which his Deferred Compensation Account shall be deemed to be invested. Such election shall be
made in the manner prescribed by the Committee and shall take effect upon the entry of the
Participant into the Plan. The investment election of the Participant shall remain in effect until
a new election is made

17

 

by the Participant. In the event the Participant fails for any reason to make an effective election
of the investment return to be credited to his account, the investment return shall be determined
by the Committee.

     8.3 Adjustments to Deferred Compensation Account. With respect to each Participant who
has a Deferred Compensation Account under the Plan, the amount credited to such account
shall be adjusted by the following debits and credits, at the times and in the order stated:

     8.3.1 The Deferred Compensation Account shall be debited each business day with the total amount of
any payments made from such account since the last preceding business day to him or for his
benefit. Unless otherwise specified by the Employer, each deemed investment fund will be debited
pro-rata based on the value of the investment funds as of the end of the preceding business day.

     8.3.2 The Deferred Compensation Account shall be credited on each Crediting Date with the total
amount of any Participant Deferral Credits and Employer Credits to such account since the last
preceding Crediting Date.

     8.3.3 The Deferred Compensation Account shall be credited or debited on each day securities are
traded on a national stock exchange with the amount of deemed investment gain or loss resulting
from the performance of the investment funds elected by the Participant in accordance with Section
8.2. The amount of such deemed investment gain or loss shall be determined by the Committee and
such determination shall be final and conclusive upon all concerned.

     Section 9.
Administration by Committee: 

     9.1 Membership of Committee. If the Committee consists of individuals appointed by the Board,
they will serve at the pleasure of the Board. Any member of the Committee may resign, and his
successor, if any, shall be appointed by the Board.

     9.2 General Administration. The Committee shall be responsible for the operation and
administration of the Plan and for carrying out its provisions. The Committee shall have the full
authority and discretion to make, amend, interpret, and enforce all appropriate rules and
regulations for the administration of this Plan and decide

18

 

or resolve any and all questions, including interpretations of this Plan, as may arise in
connection with this Plan. Any such action taken by the Committee shall be final and conclusive on
any party. To the extent the Committee has been granted discretionary authority under the Plan, the
Committee’s prior exercise of such authority shall not obligate it to exercise its authority in a
like fashion thereafter. The Committee shall be entitled to rely conclusively upon all tables,
valuations, certificates, opinions and reports furnished by any actuary, accountant, controller,
counsel or other person employed or engaged by the Employer with respect to the Plan. The Committee
may, from time to time, employ agents and delegate to such agents, including Employees of the
Employer, such administrative or other duties as it sees fit.

     9.3 Indemnification. To the extent not covered by insurance, the Employer shall indemnify
the Committee, each Employee, officer, director, and agent of the Employer, and all persons
formerly serving in such capacities, against any and all liabilities or expenses, including all
legal fees relating thereto, arising in connection with the exercise of their duties and
responsibilities with respect to the Plan, provided however that the Employer shall not indemnify
any person for liabilities or expenses due to that person’s own gross negligence or willful
misconduct.

     Section 10. Contractual Liability, Trust: 

     10.1 Contractual Liability. Unless otherwise elected in the Adoption Agreement, the Company
shall be obligated to make all payments hereunder. This obligation shall constitute a contractual
liability of the Company to the Participants, and such payments shall be made from the general
funds of the Company. The Company shall not be required to establish or maintain any special or
separate fund, or otherwise to

19

 

segregate assets to assure that such payments shall be made, and the Participants shall not have
any interest in any particular assets of the Company by reason of its obligations hereunder. To the
extent that any person acquires a right to receive payment from the Company, such right shall be no
greater than the right of an unsecured creditor of the Company.

     10.2 Trust. The Employer may establish a trust to assist it in meeting its obligations
under the Plan. Any such trust shall conform to the requirements of a grantor trust under Revenue
Procedures 92-64 and 92-65 and at all times during the continuance of the trust the
principal and income of the trust shall be subject to claims of general creditors of the Employer
under federal and state law. The establishment of such a trust would not be intended to cause
Participants to realize current income on amounts contributed thereto, and the trust would be so
interpreted and administered.

     Section 11. Allocation of Responsibilities: 

     The persons responsible for the Plan and the duties and responsibilities allocated to each are
as follows:

	 	11.1	 	Board.
	 
	 	(i)	 	To amend the Plan;
	 
	 	(ii)	 	To appoint and remove members of the Committee; and
	 
	 	(iii)	 	To terminate the Plan as permitted in Section 14.
	 
	 	11.2	 	Committee.
	 
	 	(i)	 	To designate Participants;
	 
	 	(ii)	 	To interpret the provisions of the Plan and to determine the rights of the Participants under
the Plan, except to the extent otherwise provided in Section 16 relating to claims procedure;
	 
	 	(iii)	 	To administer the Plan in accordance with its terms, except to the extent powers to
administer the Plan are specifically delegated to another person or persons as provided in the
Plan;

20

 

	 	(iv)	 	To account for the amount credited to the Deferred Compensation Account of a Participant;
	 
	 	(v)	 	To direct the Employer in the payment of benefits;
	 
	 	(vi)	 	To file such reports as may be required with the United States Department of Labor, the
Internal Revenue Service and any other government agency to which reports may be required to be
submitted from time to time; and
	 
	 	(vii)	 	To administer the claims procedure to the extent provided in Section 16.

     Section 12. Benefits Not Assignable; Facility of Payments: 

     12.1
Benefits Not Assignable. No portion of any benefit credited or paid under the Plan with respect to any Participant shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to
anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void,
nor shall any portion of such benefit be in any manner payable to any assignee, receiver or any one
trustee, or be liable for his debts, contracts, liabilities, engagements or torts. Notwithstanding
the foregoing, in the event that all or any portion of the benefit of a Participant is transferred
to the former Spouse of the Participant incident to a divorce, the Committee shall maintain such
amount for the benefit of the former Spouse until distributed in the manner required by an order of
any court having jurisdiction over the divorce, and the former Spouse shall be entitled to the same
rights as the Participant with respect to such benefit.

     12.2 Plan-Approved Domestic Relations Orders. The Committee shall establish procedures
for determining whether an order directed to the Plan is a Plan-Approved Domestic Relations Order.
If the Committee determines that an order is a Plan-Approved Domestic Relations Order, the
Committee shall cause the payment of

21

 

amounts pursuant to or segregate a separate account as provided by (and to prevent any payment or
act which might be inconsistent with) the Plan-Approved Domestic Relations Order.

     12.3 Payments to Minors and Others. If any individual entitled to receive a payment under
the Plan shall be physically, mentally or legally incapable of receiving or acknowledging receipt
of such payment, the Committee, upon the receipt of satisfactory evidence of his incapacity and
satisfactory evidence that another person or institution is maintaining him and that no guardian or
committee has been appointed for him, may cause any payment otherwise payable to him to be made to
such person or institution so maintaining him. Payment to such person or institution shall be in
full satisfaction of all claims by or through the Participant to the extent of the amount thereof.

     Section 13. Beneficiary: 

     The Participant’s beneficiary shall be the person, persons, entity or entities designated by
the Participant on the beneficiary designation form provided by and filed with the Committee or its
designee. If the Participant does not designate a beneficiary, the beneficiary shall be his
Surviving Spouse. If the Participant does not designate a beneficiary and has no Surviving Spouse,
the beneficiary shall be the Participant’s estate. The designation of a beneficiary may be changed
or revoked only by filing a new beneficiary designation form with the Committee or its designee. If
a beneficiary (the “primary beneficiary”) is receiving or is entitled to receive payments under the
Plan and dies before receiving all of the payments due him, the balance to which he is entitled
shall be paid to the contingent beneficiary, if any, named in the Participant’s current beneficiary
designation form. If there is no contingent beneficiary, the balance shall be

22

 

paid to the estate of the primary beneficiary. Any beneficiary may disclaim all or any part of any
benefit to which such beneficiary shall be entitled hereunder by filing a written disclaimer with
the Committee before payment of such benefit is to be made. Such a disclaimer shall be made in a
form satisfactory to the Committee and shall be irrevocable when filed. Any benefit disclaimed
shall be payable from the Plan in the same manner as if the beneficiary who filed the disclaimer
had predeceased the Participant.

     Section 14. Amendment and Termination of Plan: 

     The Company may amend any provision of the Plan or terminate the Plan at any time; provided,
that in no event shall such amendment or termination reduce the balance in any Participant’s
Deferred Compensation Account as of the date of such amendment or termination, nor shall any such
amendment affect the terms of the Plan relating to the payment of such Deferred Compensation
Account. Notwithstanding the foregoing, the following special provisions shall apply:

     14.1 Termination in the Discretion of the Employer. Except as otherwise provided in
Sections 14.2, the Company in its discretion may terminate the Plan and distribute benefits to
Participants subject to the following requirements and any others specified under Section 409A of
the Code:

     14.1.1 All arrangements sponsored by the Employer that would be aggregated with the Plan under
Section 1.409A-l(c) of the Treasury Regulations are terminated.

     14.1.2 No payments other than payments that would be payable under the terms of the Plan if the
termination had not occurred are made within 12 months of the termination date.

     14.1.3 All benefits under the Plan are paid within 24 months of the termination date.

     14.1.4 The Employer does not adopt a new arrangement that would be aggregated with the Plan under
Section 1.409A-1(c) of the Treasury Regulations providing for the

23

 

deferral of compensation at any time within 3 years following the date of termination of the Plan.

     14.1.5 The termination does not occur proximate to a downturn in the financial health of the
Employer.

     14.2 Termination Upon Change in Control Event. If the Company terminates the Plan within
thirty days preceding or twelve months following a Change in Control Event, the Deferred
Compensation Account of each Participant shall become fully vested and payable to the Participant
in a lump sum within twelve months following the date of termination, subject to the requirements
of Section 409A of the Code.

     Section 15. Communication to Participants: 

     The Employer shall make a copy of the Plan available for inspection by Participants
and their beneficiaries during reasonable hours at the principal office of the Employer.

     Section 16. Claims Procedure: 

     The following claims procedure shall apply with respect to the Plan:

     16.1 Filing of a Claim for Benefits. If a Participant or Beneficiary (the claimant)
believes that he is entitled to benefits under the Plan which are not being paid to him or which
are not being accrued for his benefit, he shall file a written claim therefore with the Committee.

     16.2 Notification to Claimant of Decision. Within 90 days after receipt of a claim by the
Committee (or within 180 days if special circumstances require an extension of time), the Committee
shall notify the claimant of the decision with regard to the claim. In the event of such special
circumstances requiring an extension of time, there shall be furnished to the claimant prior to
expiration of the initial 90-day period written notice of

24

 

the extension, which notice shall set forth the special circumstances and the date by which the
decision shall be furnished. If such claim shall be wholly or partially denied, notice thereof
shall be in writing and worded in a manner calculated to be understood by the claimant, and shall
set forth: (i) the specific reason or reasons for the denial; (ii) specific reference to pertinent
provisions of the Plan on which the denial is based; (iii) a description of any additional material
or information necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and (iv) an explanation of the procedure for review
of the denial and the time limits applicable to such procedures, including a statement of the
claimant’s right to bring a civil action under ERISA following an adverse benefit determination on
review. Notwithstanding the foregoing, if the claim relates to a disability determination, the
Committee shall notify the claimant of the decision within 45 days (which may be extended
for an additional 30 days if required by special circumstances).

     16.3 Procedure for Review. Within 60 days following receipt by the claimant of notice
denying his claim, in whole or in part, or, if such notice shall not be given, within 60 days
following the latest date on which such notice could have been timely given, the claimant may
appeal denial of the claim by filing a written application for review with the Committee. Following
such request for review, the Committee shall fully and fairly review the decision denying the
claim. Prior to the decision of the Committee, the claimant shall be given an opportunity to review
pertinent documents and to submit issues and comments in writing.

     16.4 Decision on Review. The decision on review of a claim denied in whole or in part by
the Committee shall be made in the following manner:

25

 

     16.4.1 Within 60 days following receipt by the Committee of the request for review (or within 120
days if special circumstances require an extension of time), the Committee shall notify the
claimant in writing of its decision with regard to the claim. In the event of such special
circumstances requiring an extension of time, written notice of the extension shall be furnished to
the claimant prior to the commencement of the extension. Notwithstanding the foregoing, if the
claim relates to a disability determination, the Committee shall notify the claimant of the
decision within 45 days (which may be extended for an additional 45 days if required by special
circumstances).

     16.4.2 With respect to a claim that is denied in whole or in part, the decision on review shall set
forth specific reasons for the decision, shall be written in a manner calculated to be understood
by the claimant, and shall set forth:

	 	(i)	 	the specific reason or reasons for the adverse determination;
	 
	 	(ii)	 	specific reference to pertinent Plan provisions on which the adverse determination is based;
	 
	 	(iii)	 	a statement that the claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to the
claimant’s claim for benefits; and
	 
	 	(iv)	 	a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s
right to obtain the information about such procedures, as well as a statement of the claimant’s
right to bring an action under ERISA section 502(a).

     16.4.3 The decision of the Committee shall be final and conclusive.

     16.5 Action by Authorized Representative of Claimant. All actions set forth in this
Section 16 to be taken by the claimant may likewise be taken by a representative of the
claimant duly authorized by him to act in his behalf on such matters. The Committee may require
such evidence as either may reasonably deem necessary or advisable of the authority to act of any
such representative.

     Section 17. Miscellaneous Provisions: 

     17.1 Set off. Notwithstanding any other provision of this Plan, the Employer may reduce the
amount of any payment otherwise payable to or on behalf of a Participant

26

 

hereunder (net of any required withholdings) at the time payment is due by the amount of any loan,
cash advance, extension of credit or other obligation of the Participant to the Employer that is
then due and payable, and the Participant shall be deemed to have consented to such reduction. In
addition, the Employer may at any time offset a Participant’s Deferral Compensation Account by an
amount up to $5,000 to collect any such amount in accordance with the requirements of Section 409A
of the Code.

     17.2 Notices. Each Participant who is not in Service and each Beneficiary shall be responsible for
furnishing the Committee or its designee with his current address for the mailing of notices and
benefit payments. Any notice required or permitted to be given to such Participant or Beneficiary
shall be deemed given if directed to such address and mailed by regular United States mail, first
class, postage prepaid. If any check mailed to such address is returned as undeliverable to the
addressee, mailing of checks will be suspended until the Participant or Beneficiary furnishes the
proper address. This provision shall not be construed as requiring the mailing of any notice or
notification otherwise permitted to be given by posting or by other publication.

     17.3 Lost Distributees. A benefit shall be deemed forfeited if the Committee is unable to locate
the Participant or Beneficiary to whom payment is due by the fifth anniversary of the date payment
is to be made or commence; provided, that the deemed investment rate of return pursuant to Section
8.2 shall cease to be applied to the Participant’s account following the first anniversary of such
date; provided further, however, that such benefit shall be reinstated if a valid claim is made by
or on behalf of the Participant or Beneficiary for all or part of the forfeited benefit.

27

 

     17.4 Reliance on Data. The Employer and the Committee shall have the right to rely on any
data provided by the Participant or by any Beneficiary. Representations of such data shall be
binding upon any party seeking to claim a benefit through a Participant, and the Employer and the
Committee shall have no obligation to inquire into the accuracy of any representation made at any
time by a Participant or Beneficiary.

     17.5 Receipt and Release for Payments. Subject to the provisions of Section
17.1, any payment made from the Plan to or with respect to any Participant or Beneficiary, or
pursuant to a disclaimer by a Beneficiary, shall, to the extent thereof, be in full satisfaction of
all claims hereunder against the Plan and the Employer with respect to the Plan. The recipient of
any payment from the Plan may be required by the Committee, as a condition precedent to such
payment, to execute a receipt and release with respect thereto in such form as shall be acceptable
to the Committee.

     17.6 Headings. The headings and subheadings of the Plan have been inserted for
convenience of reference and are to be ignored in any construction of the provisions hereof.

     17.7 Continuation of Employment. The establishment of the Plan shall not be construed as
conferring any legal or other rights upon any Employee or any persons for continuation of
employment, nor shall it interfere with the right of the Employer to discharge any Employee or to
deal with him without regard to the effect thereof under the Plan.

     17.8 Merger or Consolidation; Assumption of Plan. No Employer shall consolidate or merge
into or with another corporation or entity, or transfer all or substantially all of its assets to
another corporation, partnership, trust or other entity (a

28

 

“Successor Entity”) unless such Successor Entity shall assume the rights, obligations and
liabilities of the Employer under the Plan and upon such assumption, the Successor Entity shall
become obligated to perform the terms and conditions of the Plan. Nothing herein shall prohibit the
assumption of the obligations and liabilities of the Employer under the Plan by any Successor
Entity.

     17.9 Construction. The Employer shall designate in the Adoption Agreement the state according to
whose laws the provisions of the Plan shall be construed and enforced, except to the extent that
such laws are superseded by ERISA and the applicable requirements of the Code.

     17.10 Taxes. The Employer or other payor may withhold a benefit payment under the Plan or a
Participant’s wages, or the Employer may reduce a Participant’s Account balance, in order to meet
any federal, state, or local or employment tax withholding obligations with respect to Plan
benefits, as permitted under Section 409A of the Code. The Employer or other payor shall report
Plan payments and other Plan-related information to the appropriate governmental agencies as
required under applicable laws.

     Section 18. Transition Rules: 

This Section 18 does not apply to plans newly established on or after January 1, 2009.

     18.1 2005 Election Termination. Notwithstanding Section 4.1.4, at any time during 2005, a
Participant may terminate a Participation Agreement, or modify a Participation Agreement to reduce
the amount of Compensation subject to the deferral election, so long as the Compensation subject
to the terminated or modified Participation Agreement is includible in the income of the
Participant in 2005 or, if later, in the taxable year in which the amounts are earned and vested.

29

 

     18.2 2005 Deferral Election. The requirements of Section 4.1.2 relating to the timing of the
Participation Agreement shall not apply to any deferral elections made on or before March 15, 2005,
provided that (a) the amounts to which the deferral election relate have not been paid or become
payable at the time of the election, (b) the Plan was in existence on or before December 31,
2004, (c) the election to defer compensation is made in accordance with the terms of the
Plan as in effect on December 31, 2005 (other than a requirement to make a deferral election after
March 15, 2005), and (d) the Plan is otherwise operated in accordance with the
requirements of Section 409A of the Code.

     18.3 2005 Termination of Participation; Distribution. Notwithstanding anything in this Plan to the
contrary, at any time during 2005, a Participant may terminate his or her participation in the Plan
and receive a distribution of his Deferred Compensation Account balance on account of that
termination, so long as the full amount of such distribution is includible in the Participant’s
income in 2005 or, if later, in the taxable year of the Participant in which the amount is earned
and vested.

     18.4 Payment Elections. Notwithstanding the provisions of Sections 7.1 or 7.5 of the
Plan, a Participant may elect on or before December 31, 2008, the time or form of payment of
amounts subject to Section 409A of the Code provided that such election applies only to amounts
that would not otherwise be payable in the year of the election and does not cause an amount to
paid in the year of the election that would not otherwise be payable in such year.

30

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