Document:

psa-20150402 Exhibit 102

		

			CONFORMED COPY OF AMENDED AND RESTATED CREDIT AGREEMENT (inclusive of modifications effected by the Letter Agreement, dated as of April 12, 2012,  the Second Amendment to Amended and Restated Credit Agreement, dated July 17, 2013, and the Third Amendment to Amended and Restated Credit Agreement, dated March 31, 2015)

		

		

			 

		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			CREDIT AGREEMENT
		

		
			 
		

		
			Dated as of March 21, 2012
		

		
			 
		

		
			by and among
		

		
			 
		

		
			PUBLIC STORAGE,
		

		
			as Borrower,
		

		
			 
		

		
			The financial institutions party hereto
		

		
			and their assignees under Section 13.5.,
		

		
			as Lenders,
		

		
			 
		

		
			WELLS FARGO SECURITIES, LLC
		

		
			 
		

		
			and
		

		
			 
		

		
			MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
		

		
			as Joint Lead Arrangers and Joint Bookrunners,
		

		
			 
		

		
			 
		

		
			WELLS FARGO BANK, NATIONAL ASSOCIATION,
		

		
			as Administrative Agent,
		

		
			 
		

		
			and
		

		
			 
		

		
			BANK OF AMERICA, N.A.
		

		
			as Syndication Agent
		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			 

		

 

		

			 

		

		

			TABLE OF CONTENTS

		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Article I. Definitions

					
1 
				
	
					
						 

					
					
						Section 1.1.  Definitions.

					
1 
				
	
					
						 

					
					
						Section 1.2.  General; References to San Francisco Time.

					
28 
				
	
					
						Article II. Credit Facilities

					
28 
				
	
					
						 

					
					
						Section 2.1.  Revolving Loans.

					
28 
				
	
					
						 

					
					
						Section 2.2.  Bid Rate Loans.

					
29 
				
	
					
						 

					
					
						Section 2.3.  Letters of Credit.

					
33 
				
	
					
						 

					
					
						Section 2.4.  Swingline Loans.

					
37 
				
	
					
						 

					
					
						Section 2.5.  Rates and Payment of Interest on Loans.

					
39 
				
	
					
						 

					
					
						Section 2.6.  Number of Interest Periods.

					
40 
				
	
					
						 

					
					
						Section 2.7.  Repayment of Loans.

					
40 
				
	
					
						 

					
					
						Section 2.8.  Prepayments.

					
40 
				
	
					
						 

					
					
						Section 2.9.  [Intentionally Omitted].

					
41 
				
	
					
						 

					
					
						Section 2.10.  Continuation.

					
41 
				
	
					
						 

					
					
						Section 2.11.  Conversion.

					
42 
				
	
					
						 

					
					
						Section 2.12.  Notes.

					
42 
				
	
					
						 

					
					
						Section 2.13.  Voluntary Reductions of the Commitment.

					
42 
				
	
					
						 

					
					
						Section 2.14.  [Intentionally Omitted].

					
43 
				
	
					
						 

					
					
						Section 2.15.  [Intentionally Omitted].

					
43 
				
	
					
						 

					
					
						Section 2.16.  Expiration or Maturity Date of Letters of Credit Past Termination of Facility.

					
43 
				
	
					
						 

					
					
						Section 2.17.  Increase in Commitments.

					
43 
				
	
					
						 

					
					
						Section 2.18.  Amount Limitations.

					
44 
				
	
					
						Article III. Payments, Fees and Other General Provisions

					
44 
				
	
					
						 

					
					
						Section 3.1.  Payments.

					
44 
				
	
					
						 

					
					
						Section 3.2.  Pro Rata Treatment.

					
44 
				
	
					
						 

					
					
						Section 3.3.  Sharing of Payments, Etc.

					
45 
				
	
					
						 

					
					
						Section 3.4.  Several Obligations.

					
46 
				
	
					
						 

					
					
						Section 3.5.  Minimum Amounts.

					
46 
				
	
					
						 

					
					
						Section 3.6.  Fees.

					
46 
				
	
					
						 

					
					
						Section 3.7.  Computations.

					
47 
				
	
					
						 

					
					
						Section 3.8.  Usury.

					
47 
				
	
					
						 

					
					
						Section 3.9.  Statements of Account.

					
48 
				
	
					
						 

					
					
						Section 3.10.  Defaulting Lenders.

					
48 
				
	
					
						 

					
					
						Section 3.11.  Taxes.

					
52 
				
	
					
						Article IV.  [Intentionally omitted].

					
53 
				
	
					
						Article V. Yield Protection, Etc.

					
53 
				
	
					
						 

					
					
						Section 5.1.  Additional Costs; Capital Adequacy.

					
53 
				
	
					
						 

					
					
						Section 5.2.  Suspension of LIBOR Loans and LIBOR Margin Loans.

					
55 
				
	
					
						 

					
					
						Section 5.3.  Illegality.

					
55 
				
	
					
						 

					
					
						Section 5.4.  Compensation.

					
56 
				

		 

		

			 

		

		

			 

		

		

			-i-

		

		

			 

		

 

			
					
						 

					
					
						Section 5.5.  Treatment of Affected Loans.

					
56 
				
	
					
						 

					
					
						Section 5.6.  Affected Lenders.

					
57 
				
	
					
						 

					
					
						Section 5.7.  Change of Lending Office.

					
57 
				
	
					
						 

					
					
						Section 5.8.  Assumptions Concerning Funding of LIBOR Loans.

					
58 
				
	
					
						Article VI. Conditions Precedent

					
58 
				
	
					
						 

					
					
						Section 6.1.  Initial Conditions Precedent.

					
58 
				
	
					
						 

					
					
						Section 6.2.  Conditions Precedent to All Loans and Letters of Credit.

					
60 
				
	
					
						 

					
					
						Section 6.3.  [Intentionally Omitted].

					
60 
				
	
					
						 

					
					
						Section 6.4.  Conditions as Covenants.

					
60 
				
	
					
						Article VII. Representations and Warranties

					
61 
				
	
					
						 

					
					
						Section 7.1.  Representations and Warranties.

					
61 
				
	
					
						 

					
					
						Section 7.2.  Survival of Representations and Warranties, Etc.

					
66 
				
	
					
						Article VIII. Affirmative Covenants

					
67 
				
	
					
						 

					
					
						Section 8.1.  Preservation of Existence and Similar Matters.

					
67 
				
	
					
						 

					
					
						Section 8.2.  Compliance with Applicable Law.

					
67 
				
	
					
						 

					
					
						Section 8.3.  Maintenance of Property.

					
67 
				
	
					
						 

					
					
						Section 8.4.  Conduct of Business.

					
67 
				
	
					
						 

					
					
						Section 8.5.  Insurance.

					
68 
				
	
					
						 

					
					
						Section 8.6.  Payment of Taxes and Claims.

					
68 
				
	
					
						 

					
					
						Section 8.7.  Books and Records; Inspections.

					
68 
				
	
					
						 

					
					
						Section 8.8.  Use of Proceeds.

					
68 
				
	
					
						 

					
					
						Section 8.9.  Environmental Matters.

					
69 
				
	
					
						 

					
					
						Section 8.10.  Further Assurances.

					
69 
				
	
					
						 

					
					
						Section 8.11.  [Intentionally Omitted].

					
70 
				
	
					
						 

					
					
						Section 8.12.  [Intentionally Omitted].

					
70 
				
	
					
						 

					
					
						Section 8.13.  Exchange Listing.

					
70 
				
	
					
						 

					
					
						Section 8.14.  [Intentionally Omitted]

					
70 
				
	
					
						Article IX. Information

					
70 
				
	
					
						 

					
					
						Section 9.1.  Quarterly Financial Statements.

					
70 
				
	
					
						 

					
					
						Section 9.2.  Year‐End Statements.

					
70 
				
	
					
						 

					
					
						Section 9.3.  Compliance Certificate.

					
71 
				
	
					
						 

					
					
						Section 9.4.  Other Information.

					
71 
				
	
					
						Article X. Negative Covenants

					
73 
				
	
					
						 

					
					
						Section 10.1.  Financial Covenants.

					
73 
				
	
					
						 

					
					
						Section 10.2.  Indebtedness.

					
74 
				
	
					
						 

					
					
						Section 10.3.  [Intentionally Omitted].

					
74 
				
	
					
						 

					
					
						Section 10.4.  [Intentionally Omitted].

					
74 
				
	
					
						 

					
					
						Section 10.5.  Merger, Consolidation, Sales of Assets, Acquisitions and Other Arrangements.

					
74 
				
	
					
						 

					
					
						Section 10.6.  [Intentionally Deleted].

					
75 
				
	
					
						 

					
					
						Section 10.7.  Fiscal Year.

					
75 
				
	
					
						 

					
					
						Section 10.8.  Modifications of Organizational Documents.

					
75 
				

		 

		

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						Section 10.9.  [Intentionally Omitted].

					
76 
				
	
					
						Article XI. Default

					
76 
				
	
					
						 

					
					
						Section 11.1.  Events of Default.

					
76 
				
	
					
						 

					
					
						Section 11.2.  Remedies Upon Event of Default.

					
78 
				
	
					
						 

					
					
						Section 11.3.  Remedies Upon Default.

					
79 
				
	
					
						 

					
					
						Section 11.4.  Marshaling; Payments Set Aside.

					
80 
				
	
					
						 

					
					
						Section 11.5.  Allocation of Proceeds.

					
80 
				
	
					
						 

					
					
						Section 11.6.  Letter of Credit Collateral Account.

					
81 
				
	
					
						 

					
					
						Section 11.7.  Performance by Agent.

					
82 
				
	
					
						 

					
					
						Section 11.8.  Rights Cumulative.

					
82 
				
	
					
						Article XII. The Agent

					
82 
				
	
					
						 

					
					
						Section 12.1.  Authorization and Action.

					
82 
				
	
					
						 

					
					
						Section 12.2.  Agent’s Reliance, Etc.

					
83 
				
	
					
						 

					
					
						Section 12.3.  Notice of Defaults.

					
84 
				
	
					
						 

					
					
						Section 12.4.  Wells Fargo as Lender.

					
84 
				
	
					
						 

					
					
						Section 12.5.  Approvals of Lenders.

					
84 
				
	
					
						 

					
					
						Section 12.6.  Lender Credit Decision, Etc.

					
85 
				
	
					
						 

					
					
						Section 12.7.  Indemnification of Agent.

					
85 
				
	
					
						 

					
					
						Section 12.8.  Successor Agent.

					
86 
				
	
					
						 

					
					
						Section 12.9.  Titled Agents.

					
87 
				
	
					
						 

					
					
						Section 12.10.  Intentionally Omitted.

					
87 
				
	
					
						Article XIII. Miscellaneous

					
87 
				
	
					
						 

					
					
						Section 13.1.  Notices.

					
87 
				
	
					
						 

					
					
						Section 13.2.  Expenses.

					
89 
				
	
					
						 

					
					
						Section 13.3.  Setoff.

					
90 
				
	
					
						 

					
					
						Section 13.4.  Litigation; Jurisdiction; Other Matters; Waivers.

					
90 
				
	
					
						 

					
					
						Section 13.5.  Successors and Assigns.

					
91 
				
	
					
						 

					
					
						Section 13.6.  Amendments.

					
95 
				
	
					
						 

					
					
						Section 13.7.  Nonliability of Agent and Lenders.

					
96 
				
	
					
						 

					
					
						Section 13.8.  Confidentiality.

					
97 
				
	
					
						 

					
					
						Section 13.9.  Indemnification.

					
97 
				
	
					
						 

					
					
						Section 13.10.  Termination; Survival.

					
99 
				
	
					
						 

					
					
						Section 13.11.  Severability of Provisions.

					
99 
				
	
					
						 

					
					
						Section 13.12.  GOVERNING LAW.

					
100 
				
	
					
						 

					
					
						Section 13.13.  Counterparts.

					
100 
				
	
					
						 

					
					
						Section 13.14.  Obligations with Respect to Loan Parties.

					
100 
				
	
					
						 

					
					
						Section 13.15.  Marshaling; Payments Set Aside.

					
100 
				
	
					
						 

					
					
						Section 13.16.  Independence of Covenants.

					
100 
				
	
					
						 

					
					
						Section 13.17.  Limitation of Liability.

					
100 
				
	
					
						 

					
					
						Section 13.18.  Entire Agreement.

					
101 
				
	
					
						 

					
					
						Section 13.19.  Construction.

					
101 
				
	
					
						 

					
					
						Section 13.20.  Electronic Document Delivery.

					
101 
				
	
					
						 

					
					
						Section 13.21.  Patriot Act.

					
103 
				
	
					
						 

					
					
						Section 13.22.  Effect of Existing Credit Agreement.

					
103 
				

		

		

		 

		

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						SCHEDULE 1.1

					
					
						List of Loan Parties

				
	
					
						SCHEDULE 2.3(l)

					
					
						Existing Letters of Credit

				
	
					
						SCHEDULE 7.1(b)

					
					
						Ownership Structure

				
	
					
						SCHEDULE 7.1(g)

					
					
						Existing Indebtedness

				
	
					
						SCHEDULE 10.4

					
					
						Restrictions on Intercompany Transfers

				
	
					
						SCHEDULE 10.9

					
					
						Transactions with Affiliates

				
	
					
						 

					
					
						 

				
	
					
						EXHIBIT A

					
					
						Form of Assignment and Acceptance Agreement

				
	
					
						EXHIBIT B

					
					
						Form of Guaranty

				
	
					
						EXHIBIT C

					
					
						Form of Notice of Borrowing

				
	
					
						EXHIBIT D

					
					
						Form of Notice of Continuation

				
	
					
						EXHIBIT E

					
					
						Form of Notice of Conversion

				
	
					
						EXHIBIT F

					
					
						Form of Notice of Swingline Borrowing

				
	
					
						EXHIBIT G

					
					
						Form of Swingline Note

				
	
					
						EXHIBIT H

					
					
						[Reserved]

				
	
					
						EXHIBIT I

					
					
						Form of Revolving Note

				
	
					
						EXHIBIT J

					
					
						Form of Compliance Certificate

				
	
					
						EXHIBIT K

					
					
						Form of Bid Rate Note

				
	
					
						EHXIBIT L

					
					
						Form of Bid Rate Quote Request

				
	
					
						EXHIBIT M

					
					
						Form of Bid Rate Quote

				
	
					
						EXHIBIT N

					
					
						Form of Bid Rate Quote Acceptance

				

		
			 
		

		
			 
		

		

		

		 

		

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		THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of March 21, 2012, by and among Public Storage, a real estate investment trust formed under the laws of the State of Maryland (the “Borrower”), each of the financial institutions initially a signatory hereto together with their assignees pursuant to Section 13.5.(d), each of WELLS FARGO SECURITIES, LLC and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as the Joint Lead Arrangers (the “Joint Lead Arrangers”) and as the Joint Bookrunners (the “Joint Bookrunners”), Wells Fargo Bank, National Association, as Agent, and Bank of America, N.A., as Syndication Agent (the “Syndication Agent”).
		

		
			 
		

		
			WHEREAS, certain of the Lenders and other financial institutions have made available to the Borrower a revolving credit facility in the initial amount of $300,000,000 on the terms and conditions contained in that certain Credit Agreement dated as of March 27, 2007 (as at any time amended and as in effect immediately prior to the date hereof, the “Existing Credit Agreement”) by and among the Borrower, the Lenders, the other financial institutions party thereto and the Agent;
		

		
			 
		

		
			WHEREAS, the Agent and the Lenders desire to amend and restate the terms of the Existing Credit Agreement and to make available to the Borrower a revolving credit facility in the initial amount of $300,000,000 which may be increased to $600,000,000, and which will include a competitive bid loan subfacility, a $75,000,000 swingline subfacility and a $50,000,000 letter of credit subfacility, all on the terms and conditions contained herein.
		

		
			 
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree that the Existing Credit Agreement is amended and restated as follows:
		

		
			 
		

		
			Article I. Definitions
		

		
			Section 1.1.  Definitions.
		

		
			In addition to terms defined elsewhere herein, the following terms shall have the following meanings for the purposes of this Agreement:
		

		
			 
		

		
			“Absolute Rate” has the meaning given that term in Section 2.2.(c)(ii)(C).
		

		
			 
		

		
			“Absolute Rate Auction” means a solicitation of Bid Rate Quotes setting forth Absolute Rates pursuant to Section 2.2.
		

		
			 
		

		
			“Absolute Rate Loan” means a Bid Rate Loan, the interest rate on which is determined on the basis of an Absolute Rate pursuant to an Absolute Rate Auction.
		

		
			 
		

		
			“Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the Guaranty.
		

		
			 
		

		
			“Additional Costs” has the meaning given that term in Section 5.1.
		

		

		

		 

		

			 

		

		

			 

		

		

			- 1 -

		

		

			 

		

 

		 
		

		
			“Adjusted EBITDA”  means, with respect to the Borrower for any period, EBITDA of the Borrower and its Subsidiaries determined on a consolidated basis less the aggregate of all dividends or distributions paid or accrued by such Persons on any Preferred Stock of such Persons during such period plus, if during such period any of PS Business Parks, Inc., PS Business Parks L.P., any Subsidiary of PS Business Parks, Inc., Shurgard Europe or any Subsidiary of Shurgard Europe is not a Subsidiary of the Borrower, the amount of dividends or other distributions actually paid by each of foregoing Persons that is not a Subsidiary to the Borrower or any of its Subsidiaries during such period.
		

		
			
		

		
			“Administrative Questionnaire” means the Administrative Questionnaire completed by each Lender and delivered to the Agent in the form delivered by the Agent to the Lenders from time to time.
		

		
			 
		

		
			“Affected Lender” has the meaning given that term in Section 5.6.
		

		
			 
		

		
			“Affiliate” means any Person (other than the Agent or any Lender) directly or indirectly controlling, controlled by, or under common control with, the Borrower.  For purposes of this definition, “control” (including with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”) means the possession directly or indirectly of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or otherwise.  The Affiliates of a Person shall include any officer, trustee or director of such Person. In no event shall the Agent or any Lender be deemed to be an Affiliate of the Borrower.
		

		
			 
		

		
			“Agent” means Wells Fargo Bank, National Association, as contractual representative for the Lenders under the terms of this Agreement, and any of its successors.
		

		
			 
		

		
			“Agreement Date” means the date as of which this Agreement is dated.
		

		
			 
		

		
			“Applicable Facility Fee” means the percentage set forth in the table below corresponding to the Level at which the “Applicable Margin” is determined in accordance with the definition thereof:
		

		
			 
		

			
					
						Level

					
					
						Facility Fee

				
	
					
						1

					
					
						0.080%

				
	
					
						2

					
					
						0.100%

				
	
					
						3

					
					
						0.125%

				
	
					
						4

					
					
						0.150%

				
	
					
						5

					
					
						0.200%

				
	
					
						6

					
					
						0.250%

				

		
			 
		

		
			Any change in the applicable Level at which the Applicable Margin is determined shall result in a corresponding and simultaneous change in the Applicable Facility Fee. The provisions of this definition shall be subject to Section 2.5.(c).
		

		
			 
		

		

		

		 

		

			 

		

		

			-  2  -

		

 

		“Applicable Law” means all applicable provisions of constitutions, statutes, rules, regulations and orders of all governmental bodies and all orders and decrees of all courts, tribunals and arbitrators.
		

		
			 
		

		
			“Applicable Margin” means the percentage set forth below corresponding to the ratio of Total Indebtedness to Gross Asset Value as determined in accordance with Section 10.1.(a):
		

		
			 
		

			
					
						 

					
						Level

					
					
						Ratio of Total Indebtedness to Gross Asset Value

					
					
						Applicable Margin for LIBOR Loans

					
					
						Applicable Margin for Base Rate Loans

				
	
					
						1

					
					
						Less than or equal to 0.10 to 1.00

					
					
						0.850%

					
					
						0.000

				
	
					
						2

					
					
						Greater than 0.10 to 1.00 but less than or equal to 0.20 to 1.00

					
					
						0.875%

					
					
						0.000

				
	
					
						3

					
					
						Greater than 0.20 to 1.00 but less than or equal to 0.25 to 1.00

					
					
						0.950%

					
					
						0.000

				
	
					
						4

					
					
						Greater than 0.25 to 1.00 but less than or equal to 0.35 to 1.00

					
					
						1.050%

					
					
						0.0500

				
	
					
						5

					
					
						Greater than 0.35 to 1.00 but less than or equal to 0.45 to 1.00

					
					
						1.250%

					
					
						0.250

				
	
					
						6

					
					
						Greater than 0.45 to 1.00 

					
					
						1.450%

					
					
						0.450

				

		
			 
		

		
			The Applicable Margin for Loans shall be determined by the Agent from time to time, based on the ratio of Total Indebtedness to Gross Asset Value as set forth in the Compliance Certificate most recently delivered by the Borrower pursuant to Section 9.3.  Any adjustment to the Applicable Margin shall be effective as of the first day of the calendar month immediately following the month during which the Borrower delivers to the Agent the applicable Compliance Certificate pursuant to Section 9.1.  If the Borrower fails to deliver a Compliance Certificate pursuant to Section 9.3. and such failure to deliver continues for more than 15 days after it was due to have been delivered, the Applicable Margin shall equal the percentages corresponding to Level 6 until the second Business Day following delivery of the required Compliance Certificate.  Notwithstanding the foregoing, for the period from the Third Amendment Effective Date through but excluding the date on which the Agent first determines the Applicable Margin for Loans as set forth above, the Applicable Margin shall be determined based on Level 1. Thereafter, such Applicable Margin shall be adjusted from time to time as set forth in this definition.  The provisions of this definition shall be subject to Section 2.5.(c).
		

		
			 
		

		
			“Assignee” has the meaning given that term in Section 13.5.(d).
		

		
			 
		

		
			“Assignment and Acceptance Agreement” means an Assignment and Acceptance Agreement among a Lender, an Assignee and the Agent, substantially in the form of Exhibit A.
		

		

		

		 

		

			 

		

		

			-  3  -

		

 

		 
		

		
			“Base Rate” means the LIBOR Market Index Rate; provided, that if for any reason the LIBOR Market Index Rate is unavailable, Base Rate shall mean the per annum rate of interest equal to the Federal Funds Rate plus one percent (1.0%).
		

		
			 
		

		
			“Base Rate Loan” means a Revolving Loan bearing interest at a rate based on the Base Rate.
		

		
			 
		

		
			“Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group.
		

		
			 
		

		
			“Bid Rate Borrowing” has the meaning given that term in Section 2.2.(b).
		

		
			 
		

		
			“Bid Rate Loan” means a loan made by a Lender under Section 2.2.(f).
		

		
			 
		

		
			“Bid Rate Note” means a promissory note of the Borrower substantially in the form of Exhibit K, payable to the order of a Lender as originally in effect and otherwise duly completed.
		

		
			 
		

		
			“Bid Rate Quote” means an offer in accordance with Section 2.2.(c) by a Lender to make a Bid Rate Loan with one single specified interest rate.
		

		
			 
		

		
			“Bid Rate Quote Request” has the meaning given that term in Section 2.2.(b).
		

		
			 
		

		
			“Borrower” has the meaning set forth in the introductory paragraph hereof and shall include the Borrower’s successors and permitted assigns.
		

		
			 
		

		
			“Borrower Information” has the meaning given that term in Section 2.5.(c).
		

		
			 
		

		
			“Business Day” means (a) any day other than a Saturday, Sunday or other day on which banks in San Francisco, California or New York, New York are authorized or required to close, and (b) if such day relates to a LIBOR Loan any such day on which dealings in deposits in Dollars are conducted by and between banks in the London interbank eurodollar market.  Unless specifically referenced in this Agreement as a Business Day, all references to “days” shall be calendar days.
		

		
			 
		

		
			“Capitalization Rate” means 7.00%.
		

		
			 
		

		
			“Capitalized EBITDA” means, with respect to a Person and as of a given date, (a) such Person’s EBITDA for the four fiscal quarters most recently ended divided by (b) the Capitalization Rate.  In determining Capitalized EBITDA, EBITDA attributable to real estate properties either acquired or disposed of by such Person during such four fiscal quarters shall be disregarded; provided,  however, EBITDA attributable to real estate properties acquired by the Borrower or any of its Subsidiaries during the four immediately preceding fiscal quarters may, at the Borrower’s option, be included in determinations of the Capitalized EBITDA of the Borrower. 
		

		

		

		 

		

			 

		

		

			-  4  -

		

 

		 
		

		
			“Capitalized Lease Obligation” means obligations under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.  The amount of a Capitalized Lease Obligation is the capitalized amount of such obligation determined in accordance with GAAP.
		

		
			 
		

		
			“Capitalized Unencumbered NOI” means as of a given date (a) Unencumbered NOI for the four fiscal quarters most recently ended divided by (b) the Capitalization Rate.  In determining Capitalized Unencumbered NOI, Unencumbered NOI attributable to Eligible Properties either acquired or disposed of by such Person during such four fiscal quarters shall be disregarded; provided,  however, Unencumbered NOI attributable to Eligible Properties acquired by the Borrower or any of its Subsidiaries during the four immediately preceding fiscal quarters may, at the Borrower’s option, be included in determinations of the Capitalized Unencumbered NOI.
		

		
			 
		

		
			“Cash Collateralize” means, to pledge and deposit with or deliver to the Agent, for the benefit of the Agent, the Issuing Banks and the Lenders, as collateral for Letter of Credit Liabilities or obligations of Lenders to fund participations in respect of Letter of Credit Liabilities, cash or deposit account balances or, if the Agent and the applicable Issuing Bank shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to the Agent and the applicable Issuing Bank.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.
		

		
			 
		

		
			“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof and backed by the full faith and credit of the United States of America, in each case maturing within one year after the date of acquisition thereof, (b) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, maturing within  90 days after the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from S&P and Moody’s (or, if at any time either of the foregoing shall not be rating such obligations, then from such other nationally recognized rating services acceptable to the Agent) and not listed for possible down-grade in Credit Watch published by S&P; (c) commercial paper, other than commercial paper issued by any Loan Party or any of their respective Affiliates, maturing no more than 90 days after the date of creation thereof and, at the time of acquisition, having a rating of at least A-2 or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, then the highest rating from such other nationally recognized rating services acceptable to the Agent); (d) domestic certificates of deposit, time deposits and bankers’ acceptances which mature within one year after the date of acquisition thereof; and (e)  overnight securities, repurchase agreements, or reverse repurchase agreements secured by any of the foregoing types of Securities or debt instruments issued, in each case, by (i) any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia or Canada having combined capital and surplus of not less than $250,000,000 or (ii) any Lender. 
		

		
			 
		

		

		

		 

		

			 

		

		

			-  5  -

		

 

		“Change of Control” means the occurrence of any of the following events: (a) during any period of 12 consecutive months ending after the Agreement Date, individuals who at the beginning of any such 12‐month period constituted the Board of Trustees of the Borrower (together with any new trustees whose election by such Board or whose nomination for election by the shareholders of the Borrower was approved by a vote of a majority of the trustees then still in office who were either trustees at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Trustees of the Borrower then in office; or (b) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) other than any Excluded Shareholder, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person will be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 30.0% of the total voting power of the then outstanding voting stock of the Borrower.
		

		
			 
		

		
			“Commitment” means, as to each Lender, such Lender’s obligation to make Revolving Loans pursuant to Section 2.1. and to issue (in the case of an Issuing Bank) or participate in (in the case of the other Lenders) Letters of Credit pursuant to Section 2.3.(a) and 2.3.(i) respectively, in an amount up to, but not exceeding (but in the case of an Issuing Bank, excluding the aggregate amount of participations in the Letters of Credit held by other Lenders) the amount set forth for such Lender on Schedule I as such Lender’s “Commitment Amount” or as set forth in the applicable Assignment and Acceptance Agreement or an agreement executed by a Person becoming a Lender in accordance with Section 2.17., as the same may be reduced from time to time pursuant to Section 2.13. and or otherwise pursuant to the terms of this Agreement or as appropriate to reflect any assignments to or by such Lender effected in accordance with Section 13.5. or increased as appropriate to reflect any increase effected in accordance with Section 2.17.
		

		
			 
		

		
			“Commitment Percentage” means, with respect to any Lender, the percentage obtained by dividing (a) the amount of such Lender’s Commitment by (b) the aggregate amount of Commitments of all the Lenders, or, if the Commitments have been terminated (whether pursuant to Section 11.2. or otherwise), the percentage obtained by dividing (i) the aggregate unpaid principal amount of Loans and Letter of Credit Liabilities owing to such Lender by (ii) the aggregate unpaid principal amount of all Loans and Letter of Credit Liabilities.
		

		
			 
		

		
			“Compliance Certificate” has the meaning given that term in Section 9.3. 
		

		
			 
		

		
			“Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan from one Interest Period to another Interest Period pursuant to Section 2.10.
		

		
			 
		

		
			“Convert”, “Conversion” and “Converted” each refers to the conversion of a Revolving Loan of one Type into a Revolving Loan of another Type pursuant to Section 2.11.
		

		
			 
		

		
			“Credit Event” means any of the following: (a) the making (or deemed making) of any Loan, (b) the Conversion of a Revolving Loan, (c) the Continuation of a LIBOR Loan and (d) the issuance of a Letter of Credit.
		

		

		

		 

		

			 

		

		

			-  6  -

		

 

		 
		

		
			“Credit Rating” means the lowest rating or implied rating assigned and published by a Rating Agency to each series of rated senior unsecured long term indebtedness of the Borrower.
		

		
			 
		

		
			“Debtor Relief Laws” means the Bankruptcy Code of 1978, as amended, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar Applicable Laws relating to the relief of debtors in the United States of America or other applicable jurisdictions from time to time in effect.
		

		
			 
		

		
			“Default” means any of the events specified in Section 11.1., whether or not there has been satisfied any requirement for the giving of notice, the lapse of time, or both.
		

		
			 
		

		
			“Defaulting Lender” means, subject to Section 3.10.(f), any Lender that (a) has failed to (i) fund all or any portion of its Loans within 2 Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Agent, the Swingline Lender, any Issuing Bank or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within 2 Business Days of the date when due, (b) has notified the Borrower, the Agent, any Issuing Bank or the Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within 3 Business Days after written request by the Agent or the Borrower, to confirm in writing to the Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States of America or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 3.10.(f)) upon delivery of 
		

		 

		

			 

		

		

			-  7  -

		

 

		written notice of such determination to the Borrower, the Swingline Lender, the Issuing Banks and each Lender.
		

		
			 
		

		
			“Derivatives Contract” means any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement.  Not in limitation of the foregoing, the term “Derivatives Contract” includes any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement.
		

		
			 
		

		
			“Derivatives Termination Value” means, in respect of any one or more Derivatives Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Derivatives Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Derivatives Contracts (which may include the Agent or any Lender).
		

		
			 
		

		
			“Designated Account” means deposit account number 4648059228 of the Borrower maintained with the Agent, or such other deposit account of the Borrower maintained with the Agent and that the Borrower, in a written notice purportedly signed by two of the Borrower’s corporate officers, one of which must be the chief executive officer, the chief financial officer or the controller, may designate to the Agent as the “Designated Account”.
		

		
			 
		

		
			“Development Property” means a Property currently under development on which the improvements have not been completed, or a Property where development has been completed as evidenced by a certificate of occupancy for the entire Property for the 30 month period following the issuance of such certificate of occupancy (provided that Borrower may at its option elect to remove a Property from the category of Development Properties prior to the completion of the 30 month period, but any such Property may not be reclassified as a Development Property).  The term “Development Property” shall include real property of the type described in the immediately preceding sentence to be (but not yet) acquired by the Borrower, any Subsidiary or any Unconsolidated Affiliate upon completion of construction pursuant to a contract in which the seller of such real property is required to develop or renovate prior to, and as a condition precedent to, such acquisition.
		

		

		

		 

		

			 

		

		

			-  8  -

		

 

		 
		

		
			“Dollars” or “$” means the lawful currency of the United States of America.
		

		
			 
		

		
			“EBITDA”  means, with respect to any Person for any period and without duplication: (a) net earnings (loss) of such Person for such period (including equity in net earnings or net loss of Unconsolidated Affiliates) excluding the impact of the following amounts with respect to any Person and the Unconsolidated Affiliates (but only to the extent included in determining net earnings (loss) for such period): (i) depreciation and amortization expense and other non-cash charges of such Person for such period; (ii) interest expense of such Person for such period; (iii) income tax expense of such Person in respect of such period; (iv) extraordinary and nonrecurring gains and losses of such Person for such period, including without limitation, gains and losses from the sale of assets, write-offs and forgiveness of debt; (v) non-controlling interests, and (vi) distributions or other allocations of income to holders of Preferred Stock; minus (b) the Reserve for Replacements, and minus (c) if during such period any of PS Business Parks, Inc., PS Business Parks L.P., any Subsidiary of PS Business Parks, Inc., Shurgard Europe or any Subsidiary of Shurgard Europe is not a Subsidiary of the Borrower, the impact on EBITDA of each of the foregoing Persons that is not a Subsidiary.
		

		
			 
		

		
			“Effective Date” means the later of (a) the Agreement Date and (b) the date on which all of the conditions precedent set forth in Section 6.1.(a) shall have been fulfilled or waived in writing by the Agent.
		

		
			 
		

		
			“Eligible Assignee” means any Person who is: (i) currently a Lender; (ii) a commercial bank, trust company, insurance company, investment bank or pension fund organized under the laws of the United States of America, or any state thereof, or the District of Columbia, and having total assets in excess of $5,000,000,000; or (iii) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development (“OECD”), or a political subdivision of any such country, and having total assets in excess of $10,000,000,000, provided that such bank is acting through a branch or agency located in the United States of America.  If such Person is not currently a Lender, such Person’s senior unsecured long term indebtedness must be rated BBB or higher by S&P, Baa2 or higher by Moody’s, or the equivalent or higher of either such rating by another Rating Agency acceptable to the Agent.  
		

		
			 
		

		
			“Eligible Property” means a Property which satisfies all of the following requirements: (a) such Property is owned in fee simple, or leased under a Ground Lease, by the Borrower or a Wholly Owned Subsidiary; provided, that if a Subsidiary does not meet the definition of “Wholly Owned Subsidiary” solely because such Subsidiary has issued partnership interests that are or will be convertible at the option of the holder of such partnership interest into the Equity Interests or Preferred Stock of the Borrower, such Subsidiary shall be considered a “Wholly Owned Subsidiary” for purposes of this clause (a); (b) regardless of whether such Property  is owned in fee simple or leased under a Ground Lease by the Borrower or a Wholly Owned Subsidiary, the Borrower has the right directly, or indirectly through a Subsidiary, to take the following actions without the need to obtain the consent of any Person: (i) to create Liens on such Property as security for Indebtedness of the Borrower or such Subsidiary, as applicable and (ii) to sell, transfer or otherwise dispose of such Property; (c) neither such Property, nor if such 
		

		 

		

			 

		

		

			-  9  -

		

 

		Property is owned or leased under a Ground Lease by a Subsidiary, any of the Borrower’s direct or indirect ownership interest in such Subsidiary, is subject to (i) any Lien other than Permitted Liens or (ii) any Negative Pledge; and (d) such Property is free of all major structural defects or major architectural deficiencies, title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters which,  collectively, are not material to the profitable operation of the Property.  In addition, any Property that is owned by a Subsidiary of the Borrower is the subject of a bankruptcy proceeding or other proceeding, event or condition of the types referred to in Section 11.1.(e) or 11.1.(f) (and in the case of any case or proceeding described in 11.1.(f), such case or proceeding has continued undismissed or unstayed for a period of 60 consecutive calendar days or an order for relief shall have been entered) shall cease to be an Eligible Property. 
		

		
			
		

		
			“Environmental Laws” means any Applicable Law relating to environmental protection or the manufacture, storage, disposal or clean‐up of Hazardous Materials including, without limitation, the following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; Solid Waste Disposal Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; regulations of the Environmental Protection Agency and any applicable rule of common law and any judicial interpretation thereof relating primarily to the environment or Hazardous Materials.
		

		
			 
		

		
			“Equity Interest” means, with respect to any Person, any share of capital stock of (or other ownership or profit interests in) such Person, any warrant, option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership or profit interests in) such Person, any security convertible into or exchangeable for any share of capital stock of (or other ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such shares (or such other interests), and any other ownership or profit interest in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date of determination.
		

		
			 
		

		
			“Equity Issuance” means any issuance or sale by a Person of any Equity Interest.
		

		
			 
		

		
			“ERISA” means the Employee Retirement Income Security Act of 1974, as in effect from time to time.
		

		
			 
		

		
			“ERISA Group” means the Borrower, any Subsidiary and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower or any Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code.
		

		
			 
		

		
			“Event of Default” means any of the events specified in Section 11.1., provided that any requirement for notice or lapse of time or any other condition has been satisfied.
		

		
			 
		

		

		

		 

		

			 

		

		

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		“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, together with all rules and regulations issued thereunder.
		

		
			 
		

		
			“Excluded Shareholder” means (a) any Hughes Family Member and (b) any Person eligible to file a statement on Schedule 13G pursuant to Rule 13d‐1(b)(1) of the Exchange Act.
		

		
			 
		

		
			“Existing Credit Agreement” has the meaning given that term in the first WHEREAS clause of this Agreement.
		

		
			 
		

		
			“Existing Letters of Credit” has the meaning given that term in Section 2.3.(l).
		

		
			 
		

		
			“Fair Market Value”  means, (a) with respect to a security listed (or an unlisted convertible security that is convertible into a security listed) on The NASDAQ Stock Market’s National Market System or have trading privileges on the New York Stock Exchange, the American Stock Exchange, or another recognized national United States securities exchange, the London Stock Exchange, Euronext or another recognized European securities exchange, the price of such security as reported on such exchange or market by any widely recognized reporting method customarily relied upon by financial institutions and (b) with respect to any other asset, the price which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing buyer, neither of which is under pressure or compulsion to complete the transaction. Except as otherwise provided herein, Fair Market Value under clause (b) shall be determined by the Board of Trustees of the Borrower acting in good faith conclusively evidenced by a board resolution thereof delivered to the Agent or, with respect to any asset valued at up to $5,000,000, such determination may be made by the chief financial officer or treasurer of the Borrower evidenced by an officer’s certificate delivered to the Agent.
		

		
			 
		

		
			“Federal Funds Rate” means, for any day, the rate per annum (rounded upward to the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate quoted to the Agent by federal funds dealers selected by the Agent on such day on such transaction as determined by the Agent.
		

		
			 
		

		
			“Fees” means the fees and commissions provided for or referred to in Section 3.6. and any other fees payable by the Borrower hereunder or under any other Loan Document.
		

		
			 
		

		
			“Fixed Charges” means, with respect to a Person and for a given period, the sum of (a) the Interest Expense of such Person for such period, plus (b) the aggregate of all scheduled principal payments on Indebtedness made by such Person during such period (excluding balloon, bullet or similar payments of principal due upon the stated maturity of Indebtedness).  
		

		
			 
		

		
			“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to each Issuing Bank, such Defaulting Lender’s Commitment Percentage of the outstanding Letter 
		

		 

		

			 

		

		

			-  11  -

		

 

		of Credit Liabilities attributable to such Issuing Bank other than Letter of Credit Liabilities as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swingline Lender, such Defaulting Lender’s Commitment Percentage of outstanding Swingline Loans other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders.
		

		
			 
		

		
			“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination.
		

		
			 
		

		
			“Governmental Approvals” means all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and reports to, all Governmental Authorities.
		

		
			 
		

		
			“Governmental Authority” means any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi‐governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau or entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law.
		

		
			 
		

		
			“Gross Asset Value”  means, at a given time, the sum (without duplication) of (a) Capitalized EBITDA of the Borrower and its Subsidiaries determined on a consolidated basis, excluding Capitalized EBITDA attributable to Properties acquired by the Borrower or such Subsidiary during the immediately preceding four consecutive  fiscal quarters of the Borrower and Development Properties, plus (b) all cash and cash equivalents (excluding tenant deposits and other cash and cash equivalents the disposition of which is restricted) of the Borrower and its Subsidiaries at such time, plus (c) the current book value of Development Properties and all land held for development; provided,  however, any land which is not appropriately entitled or zoned to permit the use of such Property as a self-storage facility shall only be included at 50% of book value, plus (d) with respect to each Unconsolidated Affiliate of the Borrower, the Borrower’s respective Ownership Share of (i) the Capitalized EBITDA of each such Unconsolidated Affiliate and (ii) the current book values of all real property of each such Unconsolidated Affiliate upon which construction is in progress, plus (e) the purchase price paid by the Borrower or any Subsidiary (less any amounts paid to the Borrower or such Subsidiary as a purchase price adjustment, held in escrow, retained as a contingency reserve, or in connection with other similar arrangements, and without regard to allocations of property purchase prices pursuant to Statement of Financial Accounting Standards No. 141 or other provisions of GAAP) for any Property acquired by the Borrower or such Subsidiary during the immediately preceding four consecutive fiscal quarters of the Borrower, plus (f) the contractual purchase price of Properties of the Borrower and its Subsidiaries subject to purchase obligations, repurchase obligations, forward commitments and unfunded obligations to the extent such obligations and commitments are included in determinations of Total Liabilities of the Borrower, plus (g) the value 
		

		 

		

			 

		

		

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		(determined in accordance with GAAP) of all promissory notes payable solely to the Borrower or any of its Subsidiaries (excluding any such note where (i) the obligor is more than 30 days past due with respect to any payment obligation or is the subject of a bankruptcy proceeding or other proceeding, event or condition of the types referred to in Section 11.1.(e) or (f) or (ii) the obligor is an Affiliate of the Borrower (other than PS Business Parks, Inc., PS Business Parks, L.P., Shurgard Europe, or a Subsidiary of Shurgard Europe so long as any such note issued by any of PS Business Parks, Inc., PS Business Parks, L.P., Shurgard Europe or a Subsidiary of Shurgard Europe matures within six months of issuance), plus (h) the Fair Market Value of all Marketable Securities owned by the Borrower and its Subsidiaries, plus (i) all other assets of the Borrower and its Subsidiaries (the value of which is determined in accordance with GAAP but excluding assets classified as intangible under GAAP).  No more than 10.0% of the Gross Asset Value may be attributable to the aggregate of the following (x) the current book value of land held for development and (y) the value attributable to the assets referenced in clauses (g) and (i) above.  For the avoidance of doubt, the value of the Equity Interests of PS Business Parks, Inc., PS Business Parks, L.P., any Subsidiary of PS Business Parks, Inc., Shurgard Europe, or any Subsidiary of Shurgard Europe owned by the Borrower and its Subsidiaries that constitute Marketable Securities shall be determined under clause (a) of the definition of Fair Market Value.  The Borrower shall have the option to include EBITDA under clause (a) above from Properties that are otherwise subject to valuation under clause (e) above; provided, however, that if such election is made, any value attributable to such Properties under clause (e) above shall be excluded from the determination of the amount under clause (e).
		

		
			 
		

		
			“Ground Lease” means a ground lease containing terms and conditions customarily required by mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease, including without limitation, the following: (a) a remaining term (exclusive of any unexercised extension options) of 40 years or more from the Third Amendment Effective Date; (b) the right of the lessee to mortgage and encumber its interest in the leased property, and to amend the terms of any such mortgage or encumbrance, in each case, without the consent of the lessor; (c) the obligation of the lessor to give the holder of any mortgage Lien on such leased property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (d) acceptable transferability of the lessee’s interest under such lease, including ability to sublease; (e) acceptable limitations on the use of the leased property; and (f) clearly determinable rental payment terms which in no event contain profit participation rights.
		

		
			 
		

		
			“Guaranty”, “Guaranteed” or to “Guarantee” as applied to any obligation means and includes:  (a) a guaranty (other than by endorsement of negotiable instruments for collection in the ordinary course of business), directly or indirectly, in any manner, of any part or all of such obligation, or (b) an agreement, direct or indirect, contingent or otherwise, and whether or not constituting a guaranty, the practical effect of which is to assure the payment or performance (or payment of damages in the event of nonperformance) of any part or all of such obligation whether by: (i) the purchase of securities or obligations, (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase or sale of services primarily for the purpose of enabling the obligor with respect to such obligation to make any payment or performance (or payment of damages in the event of nonperformance) of or on account of any part or all of such obligation, 
		

		 

		

			 

		

		

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		or to assure the owner of such obligation against loss, (iii) the supplying of funds to or in any other manner investing in the obligor with respect to such obligation, (iv) repayment of amounts drawn down by beneficiaries of letters of credit (including Letters of Credit), or (v) the supplying of funds to or investing in a Person on account of all or any part of such Person’s obligation under a Guaranty of any obligation or indemnifying or holding harmless, in any way, such Person against any part or all of such obligation.  
		

		
			 
		

		
			“Hazardous Materials” means all or any of the following: (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable Environmental Laws as “hazardous substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation intended to define, list or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity, or “EP toxicity”; (b) oil, petroleum or petroleum derived substances, natural gas, natural gas liquids or synthetic gas and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas or geothermal resources; (c) any flammable substances or explosives or any radioactive materials; (d) asbestos in any form; and (e) electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million.
		

		
			 
		

		
			“Hughes Family Member” means any of the following: (a) B. Wayne Hughes, his spouse, his children (natural or adopted) and the children (natural or adopted) of his children; or (b) any foundation, trust, partnership, corporation or other Person controlled by any of the individuals referred to in clause (a).
		

		
			 
		

		
			“Indebtedness” means, with respect to a Person, at the time of computation thereof, all of the following (without duplication): (a) all obligations of such Person in respect of money borrowed; (b) all obligations of such Person (other than trade debt incurred in the ordinary course of business), whether or not for money borrowed (i) represented by notes payable, or drafts accepted, in each case representing extensions of credit, (ii) evidenced by bonds, debentures, notes or similar instruments, or (iii) constituting purchase money indebtedness, conditional sales contracts, title retention debt instruments or other similar instruments, upon which interest charges are customarily paid or that are issued or assumed as full or partial payment for property; (c) Capitalized Lease Obligations of such Person; (d) all reimbursement obligations of such Person under any letters of credit or acceptances (whether or not the same have been presented for payment); (e) all Off Balance Sheet Liabilities of such Person; (f) net obligations under any Derivative Contract not entered into as a hedge against interest rate risk in respect of existing Indebtedness in an amount equal to the Derivatives Termination Value thereof; and (g) all Indebtedness of other Persons which (i) such Person has Guaranteed or is otherwise recourse to such Person or (ii) is secured by a Lien on any property of such Person.
		

		
			 
		

		
			“Intellectual Property” has the meaning given that term in Section 7.1.(s).
		

		
			 
		

		
			“Interest Expense” means, with respect to a Person and for any period, (a) all paid, accrued or capitalized interest expense (including, without limitation, capitalized interest expense (other than capitalized interest funded from a construction loan interest reserve account held by another lender and not included in the calculation of cash for balance sheet reporting purposes) 
		

		 

		

			 

		

		

			-  14  -

		

 

		and interest expense attributable to Capitalized Lease Obligations) of such Person and in any event shall include all letter of credit fees and all interest expense with respect to any Indebtedness in respect of which such Person is wholly or partially liable whether pursuant to any repayment, interest carry, performance Guarantee or otherwise, plus (b) to the extent not already included in the foregoing clause (a) such Person’s Ownership Share of all paid, accrued or capitalized interest expense for such period of Unconsolidated Affiliates of such Person (other than any such interest expense paid or payable by Unconsolidated Affiliates to such Person).  
		

		
			 
		

		
			“Interest Period” means:
		

		
			 
		

		
			(a)with respect to any LIBOR Loan, each period commencing on the date such LIBOR Loan is made or the last day of the next preceding Interest Period for such Loan, and ending on the numerically corresponding day in the first, second, third or sixth calendar month thereafter, as the Borrower may select in a Notice of Borrowing, Notice of Continuation or Notice of Conversion, as the case may be, except that each Interest Period that commences on the last Business Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the appropriate subsequent calendar month; and
		

		
			 
		

		
			(b)with respect to each Bid Rate Loan, the period commencing on the date such Bid Rate Loan is made and ending on any Business Day not less than 7 nor more than 180 days thereafter, as the Borrower may select as provided in Section 2.2.(b).
		

		
			 
		

		
			Notwithstanding the foregoing: (i) if any Interest Period for a Revolving Loan would otherwise end after the Termination Date, such Interest Period shall end on the Termination Date; and (ii) each Interest Period that would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day (or, if such next succeeding Business Day falls in the next succeeding calendar month, on the next preceding Business Day).
		

		
			 
		

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

		
			 
		

		
			“Investment” means, with respect to any Person, any acquisition or investment (whether or not of a controlling interest) by such Person, whether by means of (a) the purchase or other acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit to, capital contribution to, Guaranty of Indebtedness of, or purchase or other acquisition of any Indebtedness of, another Person, including any partnership or joint venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute the business or a division or operating unit of another Person.  Any commitment or option to make an Investment in any other Person shall constitute an Investment.  Except as expressly provided otherwise, for purposes of determining compliance with any covenant contained in a Loan Document, the amount or value of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.
		

		
			 
		

		
			“Investment Grade Rating” means a Credit Rating of BBB- or higher by S&P, Baa3 or higher by Moody’s, or the equivalent or higher of either such rating by another Rating Agency.
		

		

		

		 

		

			 

		

		

			-  15  -

		

 

		 
		

		
			“Issuing Bank” means each of Wells Fargo and Bank of America, N.A., in its capacity as an issuer of Letters of Credit pursuant to Section 2.3., or any successor issuer of Letters of Credit hereunder.
		

		
			 
		

		
			“L/C Commitment Amount”  has the meaning given to that term in Section 2.3.(a).
		

		
			 
		

		
			“Lender” means each financial institution from time to time party hereto as a “Lender” together with its respective successors and assigns, and, as the context requires, includes the Swingline Lender.
		

		
			 
		

		
			“Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender in such Lender’s Administrative Questionnaire or in the applicable Assignment and Acceptance Agreement, or such other office of such Lender as such Lender may notify the Agent in writing from time to time.
		

		
			 
		

		
			“Letter of Credit” has the meaning given that term in Section 2.3.(a).
		

		
			 
		

		
			“Letter of Credit Collateral Account” means a special interest bearing deposit account maintained by the Agent for the benefit of the Agent, the Issuing Banks and the Lenders and under the sole dominion and control of the Agent.
		

		
			 
		

		
			“Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any application therefor, any certificate or other document presented in connection with a drawing under such Letter of Credit and any other agreement, instrument or other document governing or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit or (b) any collateral security for any of such obligations.
		

		
			 
		

		
			“Letter of Credit Liabilities” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the Stated Amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations of the Borrower at such time due and payable in respect of all drawings made under such Letter of Credit.  For purposes of this Agreement, a Lender (other than a Lender in its capacity as an Issuing Bank of a Letter of Credit) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest under Section 2.3.(i) in the related Letter of Credit, and the Lender that is the Issuing Bank of such Letter of Credit shall be deemed to hold a Letter of Credit Liability in an amount equal to its retained interest in such Letter of Credit after giving effect to the acquisition by the Lenders (other than the Lender that is the Issuing Bank of such Letter of Credit) of their participation interests under such Section.
		

		
			 
		

		
			“LIBOR” means, with respect to any LIBOR Loan for any Interest Period, the rate of interest obtained by dividing (i) the rate of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable Interest Period which appears on Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) two Business Days prior to the first day of the applicable Interest Period by (ii) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if any, 
		

		 

		

			 

		

		

			-  16  -

		

 

		required to be maintained with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United States of America).  If, for any reason, the rate referred to in the preceding clause (i) does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page), then the rate to be used for such clause (i) shall be determined by the Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Agent at approximately 11:00 a.m. (London time) two Business Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period.  Any change in the maximum rate or reserves described in the preceding clause (ii) shall result in a change in LIBOR on the date on which such change in such maximum rate becomes effective.  If LIBOR determined as provided above would be less than zero, LIBOR shall be deemed to be zero.
		

		
			 
		

		
			“LIBOR Auction” means a solicitation of Bid Rate Quotes setting forth LIBOR Margin Loans based on LIBOR pursuant to Section 2.2.
		

		
			 
		

		
			“LIBOR Loan” means a Revolving Loan bearing interest at a rate based on LIBOR.
		

		
			 
		

		
			“LIBOR Margin” has the meaning given that term in Section 2.2.(c)(ii)(D).
		

		
			 
		

		
			“LIBOR Margin Loan” means a Bid Rate Loan the interest rate on which is determined on the basis of LIBOR pursuant to a LIBOR Auction.
		

		
			 
		

		
			“LIBOR Market Index Rate” means, for any day, LIBOR as of that day for one-month deposits in Dollars at approximately 9:00 a.m. Pacific time for such day (or if such day is not a business day, the immediately preceding business day).  The LIBOR Market Index Rate shall be determined on a daily basis.
		

		
			 
		

		
			“Lien” as applied to the property of any Person means:  (a) any security interest, encumbrance, mortgage, deed to secure debt, deed of trust, pledge, lien, charge or lease constituting a Capitalized Lease Obligation, conditional sale or other title retention agreement, or other security title or encumbrance of any kind in respect of any property of such Person, or upon the income or profits therefrom; (b) any arrangement, express or implied, under which any property of such Person is transferred, sequestered or otherwise identified for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority to the payment of the general, unsecured creditors of such Person; (c) the filing of any financing statement under the UCC or its equivalent in any jurisdiction; and (d) any agreement by such Person to grant, give or otherwise convey any of the foregoing.
		

		
			 
		

		
			“Loan” means a Revolving Loan, a Bid Rate Loan or a Swingline Loan.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  17  -

		

 

		“Loan Document” means this Agreement, each Note, each Letter of Credit Document and each other document or instrument now or hereafter executed and delivered by a Loan Party in connection with, pursuant to or relating to this Agreement.
		

		
			 
		

		
			“Loan Party” means each of the Borrower, each other Person who guarantees all or a portion of the Obligations and/or who pledges any collateral to secure all or a portion of the Obligations.  Schedule 1.1. sets forth the Loan Parties in addition to the Borrower as of the Agreement Date.
		

		
			 
		

		
			“Marketable Securities”  means: (a) common or preferred Equity Interests of Persons located in, and formed under the laws of, any State of the United States or America or the District of Columbia, which Equity Interests are subject to price quotations (quoted at least daily) on The NASDAQ Stock Market’s National Market System or have trading privileges on the New York Stock Exchange, the American Stock Exchange or another recognized national United States securities exchange, the London Stock Exchange, Euronext or another recognized European securities exchange; (b) convertible securities which can be converted at any time into common or preferred Equity Interests of the type described in the immediately preceding clause (a); and (c) securities evidencing Indebtedness issued by Persons located in, and formed under the laws of, any State of the United States or America or the District of Columbia, which Persons have a Credit Rating of BBB- or Baa3 or better.
		

		
			 
		

		
			“Material Adverse Effect” means a materially adverse effect on (a) the business, assets, liabilities, financial condition or results of operations of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Borrower or any other Loan Party to perform its obligations under any Loan Document to which it is a party, (c) the validity or enforceability of any of the Loan Documents, (d) the rights and remedies of the Lenders, the Issuing Banks and the Agent under any of the Loan Documents or (e) the timely payment of the principal of or interest on the Loans or other amounts payable in connection therewith.
		

		
			 
		

		
			“Material Contract” means any contract or other arrangement (other than Loan Documents), whether written or oral, to which the Borrower, any Subsidiary or any other Loan Party is a party as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could have a Material Adverse Effect.
		

		
			 
		

		
			“Material Plan” means at any time a Plan or Plans having aggregate Unfunded Liabilities in excess of $2,500,000.
		

		
			 
		

		
			“Material Subsidiary”  means any Subsidiary to which $500,000,000 or more of Gross Asset Value is attributable on an individual basis.
		

		
			 
		

		
			“Moody’s” means Moody’s Investors Service, Inc.
		

		
			 
		

		
			“Mortgage” means a mortgage, deed of trust, deed to secure debt or similar security instrument made by a Person owning an interest in real property granting a Lien on such interest in real property as security for the payment of Indebtedness of such Person.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  18  -

		

 

		“Multiemployer Plan” means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period.
		

		
			 
		

		
			“Negative Pledge” means, with respect to a given asset, any provision of a document, instrument or agreement (other than any Loan Document) which prohibits or purports to prohibit the creation of any Lien on such asset as security for Indebtedness of the Person owning such asset or any other Person.
		

		
			 
		

		
			“Net Operating Income” means, for any Property and for a given period, the sum (without duplication) of (a) rents and other revenues earned in the ordinary course from such Property (excluding pre-paid rents and revenues and security deposits except to the extent applied in satisfaction of tenants’ obligations for rent) minus (b) all expenses paid or accrued related to the ownership, operation or maintenance of such Property, including but not limited to, taxes, assessments and the like, insurance, utilities, payroll costs, maintenance, repair and landscaping expenses, marketing expenses, and general and administrative expenses (including an appropriate allocation for legal, accounting, advertising, marketing and other expenses incurred in connection with such Property, but specifically excluding general overhead expenses of the Borrower and its Subsidiaries and any property management fees) minus (c) the Reserve for Replacements for such Property for such period minus (d) the actual property management fee, if any, paid during such period with respect to such Property.
		

		
			 
		

		
			“Net Proceeds” means with respect to an Equity Issuance by a Person, the aggregate amount of all cash or the Fair Market Value of all other property received by such Person in respect of such Equity Issuance net of investment banking fees, legal fees, accountants fees, underwriting discounts and commissions and other customary fees and expenses actually incurred by such Person in connection with such Equity Issuance.
		

		
			 
		

		
			“Non-Domestic Property” means a Property located outside a state of the United States of America or the District of Columbia.
		

		
			 
		

		
			“Nonrecourse Indebtedness” means, with respect to a Person, Indebtedness for borrowed money in respect of which recourse for payment (except for customary exceptions for fraud, misapplication of funds, environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy and other similar customary exceptions to nonrecourse liability in a form reasonably acceptable to the Agent) is contractually limited to specific assets of such Person encumbered by a Lien securing such Indebtedness.
		

		
			 
		

		
			“Note” means a Revolving Note, a Bid Rate Note or the Swingline Note.
		

		
			 
		

		
			“Notice of Borrowing” means a notice in the form of Exhibit C to be delivered to the Agent pursuant to Section 2.1.(b) evidencing the Borrower’s request for a borrowing of Revolving Loans.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  19  -

		

 

		“Notice of Continuation” means a notice in the form of Exhibit D to be delivered to the Agent pursuant to Section 2.10. evidencing the Borrower’s request for the Continuation of a LIBOR Loan.
		

		
			 
		

		
			“Notice of Conversion” means a notice in the form of Exhibit E to be delivered to the Agent pursuant to Section 2.11. evidencing the Borrower’s request for the Conversion of a Revolving Loan from one Type to another Type.
		

		
			 
		

		
			“Notice of Swingline Borrowing” means a notice substantially in the form of Exhibit F to be delivered to the Swingline Lender pursuant to Section 2.4.(b) evidencing the Borrower’s request for a Swingline Loan.
		

		
			 
		

		
			“Obligations” means, individually and collectively: (a) the aggregate principal balance of, and all accrued and unpaid interest on, all Loans; (b) all Reimbursement Obligations and all other Letter of Credit Liabilities; and (c) all other indebtedness, liabilities, obligations, covenants and duties of the Borrower or any of the other Loan Parties owing to the Agent, any Issuing Bank or any Lender of every kind, nature and description, under or in respect of this Agreement or any of the other Loan Documents, including, without limitation, the Fees and indemnification obligations, whether direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any promissory note. 
		

		
			 
		

		
			“Occupancy Rate” means, with respect to a Property at any time, the ratio, expressed as a percentage, of (a) the net rentable square footage of such Property actually occupied by tenants paying rent pursuant to binding leases as to which no default exists to (b) the aggregate net rentable square footage of such Property.
		

		
			 
		

		
			“Off Balance Sheet Liabilities” means, with respect to any Person, (a) any repurchase obligation or liability, contingent or otherwise, of such Person with respect to any accounts or notes receivable sold, transferred or otherwise disposed of by such Person, (b) any repurchase obligation or liability, contingent or otherwise, of such Person with respect to property or assets leased by such Person as lessee and (c) all obligations, contingent or otherwise, of such Person under any synthetic lease, tax retention operating lease, off balance sheet loan or similar off balance sheet financing if the transaction giving rise to such obligation (i) is considered indebtedness for borrowed money for tax purposes but is classified as an operating lease or (ii) does not (and is not required to pursuant to GAAP) appear as a liability on the balance sheet of such Person.
		

		
			 
		

		
			“Ownership Share” means, with respect to any Subsidiary of a Person (other than a Wholly Owned Subsidiary) or any Unconsolidated Affiliate of a Person, the greater of (a) such Person’s relative nominal direct and indirect ownership interest (expressed as a percentage) in such Subsidiary or Unconsolidated Affiliate or (b) subject to compliance with Section 9.4.(l), such Person’s relative direct and indirect economic interest (calculated as a percentage) in such Subsidiary or Unconsolidated Affiliate determined in accordance with the applicable provisions of the declaration of trust, articles or certificate of incorporation, articles of organization, partnership agreement, joint venture agreement or other applicable organizational document of such Subsidiary or Unconsolidated Affiliate.  
		

		

		

		 

		

			 

		

		

			-  20  -

		

 

		 
		

		
			“Participant” has the meaning given that term in Section 13.5. (c).
		

		
			 
		

		
			“Participant Register” has the meaning given that term in Section 13.5. (c).
		

		
			 
		

		
			“PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.
		

		
			 
		

		
			“Permitted Liens” means, with respect to any asset or property of a Person, (a) Liens securing taxes, assessments and other charges or levies imposed by any Governmental Authority (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental Laws) or the claims of materialmen, mechanics, carriers, warehousemen or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which are not at the time required to be paid or discharged under Section 8.6.; (b) Liens consisting of deposits or pledges made, in the ordinary course of business, in connection with, or to secure payment of, obligations under workmen’s compensation, unemployment insurance or similar Applicable Laws; (c) Liens consisting of encumbrances in the nature of zoning restrictions, easements, and rights or restrictions of record on the use of real property, which do not materially detract from the value of such property or impair the use thereof in the business of such Person; and (d) the rights of tenants under leases or subleases not interfering with the ordinary conduct of business of such Person and (e) Liens in favor of the Agent for the benefit of the Issuing Banks and the Lenders.
		

		
			 
		

		
			“Person” means an individual, corporation, partnership, limited liability company, association, trust or unincorporated organization, or a government or any agency or political subdivision thereof.
		

		
			 
		

		
			“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA Group.
		

		
			 
		

		
			“Post‐Default Rate” means, in respect of any principal of any Loan or any other Obligation, a rate per annum equal to four percent (4.0%) plus the Base Rate as in effect from time to time plus the Applicable Margin.
		

		
			 
		

		
			“Preferred Stock” means, with respect to any Person, shares of capital stock of, or other equity interests in, such Person which are entitled to preference or priority over any other capital stock of, or other equity interest in, such Person in respect of the payment of dividends or distributions, or distribution of assets upon liquidation or both.
		

		
			 
		

		
			“Property” means a parcel (or group of related parcels) of real property developed (or to be developed) for use as storage facility either as a mini-warehouse or combination mini-warehouse and central warehouse for container storage.
		

		

		

		 

		

			 

		

		

			-  21  -

		

 

		 
		

		
			“Rating Agency” means S&P, Moody’s or Fitch, Inc.  Other nationally recognized securities rating agencies selected by the Borrower shall be “Rating Agencies” only upon written approval by the Agent.
		

		
			 
		

		
			“Recourse Indebtedness” means, with respect to a Person, all Indebtedness of such Person that is not Nonrecourse Indebtedness.
		

		
			 
		

		
			“Recurring Capital Expenditures” means capital expenditures made in respect of a Property for maintenance of such Property and replacement of items due to ordinary wear and tear including, but not limited to, expenditures made for maintenance or replacement of carpeting, roofing materials, mechanical systems, electrical systems and other structural systems and expenditures relating to tenant improvements and leasing commissions.  “Recurring Capital Expenditures” shall not include any of the following: (a) improvements to the appearance of such Property or any other major upgrade or renovation of such Property not necessary for proper maintenance or marketability of such Property; (b) capital expenditures for seismic upgrades; or (c) capital expenditures for deferred maintenance for such Property existing at the time such Property was acquired by the Borrower or a Subsidiary.
		

		
			 
		

		
			“Register” has the meaning given that term in Section 13.5.(e).
		

		
			 
		

		
			“Regulatory Change” means, with respect to any Lender, any change effective after the Agreement Date in Applicable Law (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or the adoption or making after such date of any interpretation, directive or request applying to a class of banks, including such Lender, of or under any Applicable Law (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any Governmental Authority or monetary authority charged with the interpretation or administration thereof or compliance by any Lender with any request or directive regarding capital adequacy.  Notwithstanding anything herein to the contrary: (a) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (b) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Regulatory Change”, regardless of the date enacted, adopted or issued.
		

		
			 
		

		
			“Reimbursement Obligation” means the absolute, unconditional and irrevocable obligation of the Borrower to reimburse an Issuing Bank for any drawing honored by such Issuing Bank under a Letter of Credit.
		

		
			 
		

		
			“REIT” means a Person qualifying for treatment as a “real estate investment trust” under the Internal Revenue Code.
		

		
			 
		

		
			“Requisite Lenders” means, as of any date, Lenders (which must include the Lender then acting as Agent) whose combined Commitment Percentages equal or exceed 51%, provided that (a) in determining such percentage at any given time, all then existing Defaulting Lenders 
		

		 

		

			 

		

		

			-  22  -

		

 

		will be disregarded and excluded and (b) at all times when two or more Lenders (excluding Defaulting Lenders) are party to this Agreement, the term “Requisite Lenders” shall in no event mean less than two Lenders.
		

		
			 
		

		
			“Reserve for Replacements” means, for any period and with respect to any Property, an amount equal to (a) the aggregate net rentable square footage of all completed space of such Property times (b) $0.35 times (c) the number of days such Property was operated in such period divided by (d) 365.  If the term Reserve for Replacements is used without reference to any specific Property, then it shall be determined on an aggregate basis with respect to all Properties and the applicable Ownership Shares with respect to all Properties of all Unconsolidated Affiliates. 
		

		
			 
		

		
			“Revolving Credit Exposure” means, as to any Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Loans and such Lender’s participation in Letter of Credit Liabilities and Swingline Loans at such time.
		

		
			 
		

		
			“Revolving Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.1.(a).
		

		
			 
		

		
			“Revolving Note” has the meaning given that term in Section 2.12.
		

		
			 
		

		
			“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
		

		
			 
		

		
			“Secured Indebtedness” means, with respect to any Person, (a) all Indebtedness of such Person that is secured in any manner by any Lien on any property plus (b) such Person’s Ownership Share of the Secured Indebtedness of any of such Person’s Unconsolidated Affiliates.
		

		
			 
		

		
			“Securities Act” means the Securities Act of 1933, as amended from time to time, together with all rules and regulations issued thereunder.
		

		
			 
		

		
			“Shurgard Europe” means Shurgard European Holdings LLC.
		

		
			 
		

		
			“Solvent” means, when used with respect to any Person, that (a) the fair value and the fair salable value of its assets (excluding any Indebtedness due from any affiliate of such Person) are each in excess of the fair valuation of its total liabilities (including all contingent liabilities); (b) such Person is able to pay its debts or other obligations in the ordinary course as they mature; and (c) such Person has capital not unreasonably small to carry on its business and all business in which it proposes to be engaged.
		

		
			 
		

		
			“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, or any successor.
		

		
			 
		

		
			“Stated Amount” means the amount available to be drawn by a beneficiary under a Letter of Credit from time to time, as such amount may be increased or reduced from time to time in accordance with the terms of such Letter of Credit.
		

		

		

		 

		

			 

		

		

			-  23  -

		

 

		 
		

		
			“Subsidiary” means, for any Person, any corporation, partnership, limited liability company or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the Board of Trustees or other persons performing similar functions of such corporation, partnership, limited liability company or other entity (without regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.
		

		
			 
		

		
			“Substantial Amount” means, at the time of determination thereof, an amount in excess of 10.0% of total assets (exclusive of depreciation) at such time of the Borrower and its Subsidiaries determined on a consolidated basis.
		

		
			 
		

		
			“Swingline Commitment” means the Swingline Lender’s obligation to make Swingline Loans pursuant to Section 2.4. in an amount up to, but not exceeding, $75,000,000, as such amount may be reduced from time to time in accordance with the terms hereof.
		

		
			 
		

		
			“Swingline Lender” means Wells Fargo Bank, National Association, together with its respective successors and assigns.
		

		
			 
		

		
			“Swingline Loan” means a loan made by the Swingline Lender to the Borrower pursuant to Section 2.4.(a).
		

		
			 
		

		
			“Swingline Note” means a promissory note of the Borrower substantially in the form of Exhibit G, payable to the order of the Swingline Lender in a principal amount equal to the amount of the Swingline Commitment as originally in effect and otherwise duly completed.
		

		
			 
		

		
			“Swingline Termination Date” means the date which is 7 Business Days prior to the Termination Date.
		

		
			 
		

		
			“Taxes” has the meaning given that term in Section 3.11.
		

		
			 
		

		
			“Termination Date” means March 31, 2020.  
		

		
			
		

		
			“Third Amendment Effective Date” means March 31, 2015.
		

		
			 
		

		
			“Total Budgeted Cost” means, with respect to a Development Property, and at any time, the aggregate amount of all costs budgeted to be paid, incurred or otherwise expended or accrued by the Borrower, a Subsidiary or an Unconsolidated Affiliate with respect to such Property to achieve an Occupancy Rate such that the Property is achieving breakeven or positive operating cash flow, including without limitation, all amounts budgeted with respect to all of the following:  (a) acquisition of land and any related improvements; (b) a reasonable and appropriate reserve for construction interest; (c) a reasonable and appropriate operating deficit reserve; (d) tenant improvements; (e) leasing commissions; and (f) other hard and soft costs associated with the development or redevelopment of such Property.  With respect to any Property to be developed in more than one phase, the Total Budgeted Cost shall exclude budgeted costs (other than costs 
		

		 

		

			 

		

		

			-  24  -

		

 

		relating to acquisition of land and related improvements) to the extent relating to any phase for which (i) construction has not yet commenced and (ii) a binding construction contract has not been entered into by the Borrower, any Subsidiary or any Unconsolidated Affiliate, as the case may be.
		

		
			 
		

		
			“Total Indebtedness” means, without duplication, (a) Total Liabilities of the Borrower and its Subsidiaries on a consolidated basis minus (b) (i) all accounts payable and accrued expenses of the Borrower and its Subsidiaries and (ii) obligations in respect of preferred partnership units or other preferred Equity Interest issued by any Subsidiary (excluding obligations in respect of any such preferred Equity Interests beneficially owned by the Borrower or any Subsidiary).
		

		
			 
		

		
			“Total Liabilities”  means, as to any Person as of a given date, all liabilities which would, in conformity with GAAP, be properly classified as a liability on the balance sheet of such Person as of such date, and in any event shall include (without duplication): (a) all Indebtedness of such Person (whether or not Nonrecourse Indebtedness and whether or not secured by a Lien), including without limitation, Capitalized Lease Obligations; (b) all accounts payable and accrued expenses of such Person; (c) all purchase and repurchase obligations and forward commitments of such Person to the extent such obligations or commitments are evidenced by a binding purchase agreement (forward commitments shall include without limitation (i) forward equity commitments and (ii) commitments to purchase any real property under development, redevelopment or renovation); (d) all unfunded obligations of such Person; (e) all lease obligations of such Person (including ground leases) to the extent required under GAAP to be classified as a liability on the balance sheet of such Person; (f) all contingent obligations of such Person including, without limitation, all Guarantees of Indebtedness by such Person; (g) all liabilities of any Unconsolidated Affiliate of such Person, which liabilities such Person has Guaranteed or is otherwise obligated on a recourse basis; (h) such Person’s Ownership Share of the Indebtedness of any Unconsolidated Affiliate of such Person, including Nonrecourse Indebtedness of such Person (but excluding Indebtedness of such Unconsolidated Affiliate owing to such Person); and (i) in the case of the Borrower, obligations in respect of preferred partnership units or other preferred Equity Interest issued by any Subsidiary (excluding obligations in respect of any such preferred Equity Interests beneficially owned by the Borrower or any Subsidiary).  For purposes of clauses (c) and (d) of this definition, the amount of Total Liabilities of a Person at any given time in respect of (x) a contract to purchase or otherwise acquire unimproved or developed real property shall be equal to the total purchase price payable by such Person under the contract if, at such time, the seller of such real property would be entitled to specifically enforce the contract against such Person, and (y) a contract relating to the acquisition of real property which the seller is required to develop or renovate prior to, and as a condition precedent to, such acquisition, shall equal the maximum amount reasonably estimated to be payable by such Person under the contract assuming performance by the seller of its obligations under the contract, which amount shall include, without limitation, any amounts payable after consummation of such acquisition which may be based on certain performance levels or other related criteria.  
		

		
			 
		

		
			“Type” with respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or a Base Rate Loan.
		

		

		

		 

		

			 

		

		

			-  25  -

		

 

		 
		

		
			“UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction.
		

		
			 
		

		
			“Unconsolidated Affiliate” shall mean, with respect to any Person, any other Person (other than PS Business Parks, Inc., PS Business Parks L.P., Subsidiaries of PS Business Parks, Inc., Shurgard Europe and Subsidiaries of Shurgard Europe) in whom such Person holds an Investment, which Investment is accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with the financial results of such Person on the consolidated financial statements of such Person.
		

		
			 
		

		
			“Unencumbered Asset” means a promissory note or a Marketable Security which satisfies all of the following requirements: (a) such property is wholly owned by the Borrower or a Wholly Owned Subsidiary provided, that if a Subsidiary does not meet the definition of “Wholly Owned Subsidiary” solely because such Subsidiary has issued partnership interests that are or will be convertible at the option of the holder of such partnership interest into the Equity Interests or Preferred Stock of the Borrower, such Subsidiary shall be considered a “Wholly Owned Subsidiary” for purposes of this clause (a); and (b) neither such property, nor if such asset is owned by a Subsidiary, any of the Borrower’s direct or indirect ownership interest in such Subsidiary, is subject to (i) any Lien other than Permitted Liens of the types described in clauses (a), (b), and (e) of the definition thereof or (ii) any Negative Pledge.
		

		
			 
		

		
			“Unencumbered Asset Value”  means, at a given time, the sum (without duplication) of (a) Capitalized Unencumbered NOI, excluding Capitalized Unencumbered NOI attributable to Properties acquired by the Borrower or such Subsidiary during the immediately preceding four consecutive fiscal quarters of the Borrower and Development Properties, plus (b) all cash and cash equivalents (excluding tenant deposits and other cash and cash equivalents the disposition of which is restricted) of the Borrower or any Wholly Owned Subsidiary so long as such cash and cash equivalents are not subject to any Liens (other than Permitted Liens of the types described in clauses (a), (b), and (e) of the definition thereof) or to any Negative Pledge, plus (c) the current book value of Development Properties  and all land held for development that, in each case, constitute Eligible Properties; provided,  however, any land which is not appropriately entitled or zoned to permit the use of such Property as a self-storage facility shall only be included at 50% of book value, plus (d) at the Borrower’s option, the purchase price paid by the Borrower or any Subsidiary (less any amounts paid to the Borrower or such Subsidiary as a purchase price adjustment, held in escrow, retained as a contingency reserve, or in connection with other similar arrangements, and without regard to allocations of property purchase prices pursuant to Statement of Financial Accounting Standards No. 141 or other provisions of GAAP) for any Eligible Property acquired by the Borrower or such Subsidiary during the immediately preceding four consecutive fiscal quarters of the Borrower, plus (e) the contractual purchase price of Eligible Properties of the Borrower and its Subsidiaries subject to purchase obligations, repurchase obligations, forward commitments and unfunded obligations to the extent such obligations and commitments are included in determinations of  Unsecured Indebtedness of the Borrower and its Subsidiaries, plus (f) the value (determined in accordance with GAAP) of all promissory notes that are also Unencumbered Assets and payable solely to the Borrower or any of its Wholly Owned Subsidiaries (excluding any such note where (i) the obligor is more than 30 days past due with respect to any payment obligation or is the subject of a bankruptcy proceeding 
		

		 

		

			 

		

		

			-  26  -

		

 

		or other proceeding, event or condition of the types referred to in Section 11.1.(e) or (f) or (ii) the obligor is an Affiliate of the Borrower (other than PS Business Parks, Inc., PS Business Parks, L.P., Shurgard Europe or a Subsidiary of Shurgard Europe, so long as any such note issued by any of PS Business Parks, Inc., PS Business Parks, L.P., Shurgard Europe or a Subsidiary of Shurgard Europe matures within six months of issuance), plus (g) the Fair Market Value of all Marketable Securities that are also Unencumbered Assets.  To the extent that the amount of Unencumbered Asset Value attributable to Properties leased pursuant to Ground Leases would constitute more than 10.0% of Unencumbered Asset Value, such excess shall be excluded.  To the extent that the amount of Unencumbered Asset Value attributable to Non-Domestic Properties would constitute more than 10.0% of Unencumbered Asset Value, such excess shall be excluded.  To the extent that the amount of Unencumbered Asset Value attributable to (x) the current book value of land held for development and (y) the value attributable to the assets referenced in clause (f) above, would exceed 10.0% of Unencumbered Asset Value, such excess shall be excluded.  For the avoidance of doubt, the value of the Equity Interests of PS Business Parks, Inc., PS Business Parks, L.P., any Subsidiary of PS Business Parks, Inc., Shurgard Europe, or any Subsidiary of Shurgard Europe owned by the Borrower and its Subsidiaries that constitute Marketable Securities shall be determined under clause (a) of the definition of Fair Market Value.  The Borrower shall have the option to include NOI under clause (a) above from Properties that are otherwise subject to valuation under clause (d) above; provided, however, that if such election is made, any value attributable to such Properties under clause (d ) above shall be excluded from the determination of the amount under clause (d). Further, no Property or any of the other assets described in clauses (a) through (g) owned or held (or in the case of any Eligible Property subject to a Ground Lease, leased) by a Subsidiary shall be included in the calculation of Unencumbered Asset Value, if such Subsidiary has incurred, acquired or suffered to exist any Recourse Indebtedness.  
		

		
			 
		

		
			“Unencumbered NOI” means, for any period, the aggregate Net Operating Income for such period of all Eligible Properties.
		

		
			 
		

		
			“Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by which (a) the value of all benefit liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (b) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA.
		

		
			 
		

		
			“Unsecured Indebtedness”  means, with respect to any Person as of a given date, Indebtedness of such Person that is not Secured Indebtedness; provided, however, that any Indebtedness that is secured only by a pledge of Equity Interests shall be deemed to be Unsecured Indebtedness.
		

		
			 
		

		
			“Wells Fargo” means Wells Fargo Bank, National Association, and its successors and permitted assigns.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  27  -

		

 

		“Wholly Owned Subsidiary” means any Subsidiary of a Person which all of the equity securities or other ownership interests (other than, in the case of a corporation, directors’ qualifying shares or, in the case of a trust, trustees’ qualifying shares) are at the time directly or indirectly owned or controlled by such Person or one or more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person. In the case of the Borrower, the term “Wholly Owned Subsidiary” shall also include any Subsidiary of the Borrower (a) of which the Borrower owns or controls, directly, or indirectly through one or more other Subsidiaries, at least 95% of the equity securities or other ownership interests of such Subsidiary and (b) the remaining the equity securities or other ownership interests of such Subsidiary are owned by Hughes Family Members.
		

		
			 
		

		
			Section 1.2.  General; References to San Francisco Time.
		

		
			Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted or determined in accordance with GAAP in effect as of the Agreement Date. References in this Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles, exhibits and schedules herein and hereto unless otherwise indicated.  references in this Agreement to any document, instrument or agreement (a) shall include all exhibits, schedules and other attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, to the extent permitted hereby and (c) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended, supplemented, restated or otherwise modified from time to time to the extent permitted hereby and in effect at any given time.  Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter.  Unless explicitly set forth to the contrary, a reference to “Subsidiary” means a Subsidiary of the Borrower or a Subsidiary of such Subsidiary and a reference to an “Affiliate” means a reference to an Affiliate of the Borrower.  Titles and captions of Articles, Sections, subsections and clauses in this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.  Unless otherwise indicated, all references to time are references to San Francisco, California time.
		

		
			 
		

		
			Article II. Credit Facilities
		

		
			Section 2.1.  Revolving Loans.
		

		
			(a)Generally.  Subject to the terms and conditions hereof, including without limitation, Section 2.18., during the period from the Effective Date to but excluding the Termination Date, each Lender severally and not jointly agrees to make Revolving Loans in Dollars to the Borrower in an aggregate principal amount at any one time outstanding up to, but not to exceed, the amount of such Lender’s Commitment.  Subject to the terms and conditions of this Agreement, during the period from the Effective Date to but excluding the Termination Date, the Borrower may borrow, repay and reborrow Revolving Loans hereunder.  
		

		
			 
		

		
			(b)Requesting Revolving Loans.  The Borrower shall give the Agent notice pursuant to a Notice of Borrowing of each borrowing of Revolving Loans.  Each Notice of Borrowing shall be delivered to the Agent before 10:00 a.m. (i) in the case of LIBOR Loans on the date 
		

		 

		

			 

		

		

			-  28  -

		

 

		three Business Days prior to the proposed date of such borrowing and (ii) in the case of Base Rate Loans, on the date one Business Day prior to the proposed date of such borrowing. The Agent will transmit by telecopy, electronic mail or other form of transmission the Notice of Borrowing (or the information contained in such Notice of Borrowing) to each Lender promptly upon receipt by the Agent.  Each Notice of Borrowing shall be irrevocable once given and binding on the Borrower.  
		

		
			 
		

		
			(c)Disbursements of Revolving Loan Proceeds.  No later than 10:00 a.m. on the date specified in the Notice of Borrowing, each Lender will make available for the account of its applicable Lending Office to the Agent, in immediately available funds, the proceeds of the Revolving Loan to be made by such Lender.  With respect to Revolving Loans to be made after the Effective Date, unless the Agent shall have been notified by any Lender prior to the specified date of borrowing that such Lender does not intend to make available to the Agent the Revolving Loan to be made by such Lender on such date, the Agent may assume that such Lender will make the proceeds of such Revolving Loan available to the Agent on the date of the requested borrowing as set forth in the Notice of Borrowing and the Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the Borrower the amount of such Revolving Loan to be provided by such Lender.  Subject to satisfaction of the applicable conditions set forth in Article VI. for such borrowing, the Agent will make the proceeds of such borrowing available to the Borrower no later than 12:00 noon on the date specified by the Borrower in such Notice of Borrowing by depositing such proceeds in the  applicable Designated Account.
		

		
			 
		

		
			Section 2.2.    Bid Rate Loans.
		

		
			(a)Bid Rate Loans.  At any time during the period from the Effective Date to but excluding the Revolving Termination Date, and so long as the Borrower continues to maintain an Investment Grade Rating, the Borrower may, as set forth in this Section, request the Lenders to make offers to make Bid Rate Loans to the Borrower in Dollars.  The Lenders may, but shall have no obligation to, make such offers and the Borrower may, but shall have no obligation to, accept any such offers in the manner set forth in this Section.
		

		
			 
		

		
			(b)Requests for Bid Rate Loans.  When the Borrower wishes to request from the Lenders offers to make Bid Rate Loans, it shall give the Agent notice (a “Bid Rate Quote Request”) so as to be received no later than 9:00 a.m. Pacific time on (x) the Business Day immediately preceding the date of borrowing proposed therein, in the case of an Absolute Rate Auction and (y) the date four (4) Business Days prior to the proposed date of borrowing, in the case of a LIBOR Auction.  The Agent shall deliver to each Lender a copy of each Bid Rate Quote Request promptly upon receipt thereof by the Agent.  The Borrower may request offers to make Bid Rate Loans for up to 3 different Interest Periods in any one Bid Rate Quote Request; provided that if granted each separate Interest Period shall be deemed to be a separate borrowing (a “Bid Rate Borrowing”).  Each Bid Rate Quote Request shall be substantially in the form of Exhibit M and shall specify as to each Bid Rate Borrowing all of the following:
		

		
			 
		

		
			(i)the proposed date of such Bid Rate Borrowing, which shall be a Business Day;
		

		
			 
		

		

		

		 

		

			 

		

		

			-  29  -

		

 

		(ii)the aggregate amount of such Bid Rate Borrowing which shall be in a minimum amount of $10,000,000 and integral multiples of $1,000,000 in excess thereof which shall not cause any of the limits specified in Section 2.18. to be violated; 
		

		
			 
		

		
			(iii)whether the Bid Rate Quote Request is for LIBOR Margin Loans or Absolute Rate Loans; and
		

		
			 
		

		
			(iv)the duration of the Interest Period applicable thereto, which shall not extend beyond the Revolving Termination Date.
		

		
			 
		

		
			The Borrower shall not deliver any Bid Rate Quote Request within five Business Days of the giving of any other Bid Rate Quote Request and the Borrower shall not deliver more than one Bid Rate Quote Request in any calendar month.
		

		
			 
		

		
			(c)Bid Rate Quotes.
		

		
			 
		

		
			(i)Each Lender may submit one or more Bid Rate Quotes, each containing an offer to make a Bid Rate Loan in response to any Bid Rate Quote Request; provided that, if the Borrower’s request under Section 2.2.(b) specified more than one Interest Period, such Lender may make a single submission containing only one Bid Rate Quote for each such Interest Period.  Each Bid Rate Quote must be submitted to the Agent not later than 8:30 a.m. Pacific time (x) on the proposed date of borrowing, in the case of an Absolute Rate Auction and (y) on the date three (3) Business Days prior to the proposed date of borrowing, in the case of a LIBOR Auction, and in either case the Agent shall disregard any Bid Rate Quote received after such time; provided that the Lender then acting as the Agent may submit a Bid Rate Quote only if it notifies the Borrower of the terms of the offer contained therein not later than 30 minutes prior to the latest time by which the Lenders must submit applicable Bid Rate Quotes.  Any Bid Rate Quote so made shall be irrevocable except with the consent of the Agent given at the request of the Borrower.  Such Bid Rate Loans may be funded by a Lender’s SPC (if any) as provided in Section 13.5.(k); however, such Lender shall not be required to specify in its Bid Rate Quote whether such Bid Rate Loan will be funded by such SPC.
		

		
			 
		

		
			(ii)Each Bid Rate Quote shall be substantially in the form of Exhibit M and shall specify:
		

		
			 
		

		
			(A)the proposed date of borrowing and the Interest Period therefor;
		

		
			 
		

		
			(B)the principal amount of the Bid Rate Loan for which each such offer is being made; provided that the aggregate principal amount of all Bid Rate Loans for which a Lender submits Bid Rate Quotes (x) may be greater or less than the Commitment of such Lender but (y) shall not exceed the principal amount of the Bid Rate Borrowing for a particular Interest Period for which offers were requested; provided further that any Bid Rate Quote shall be in a minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess thereof;
		

		
			 
		

		

		

		 

		

			 

		

		

			-  30  -

		

 

		(C)in the case of an Absolute Rate Auction, the rate of interest per annum (rounded upwards, if necessary, to the nearest 1/1,000th of 1%) offered for each such Absolute Rate Loan (the “Absolute Rate”);
		

		
			 
		

		
			(D)in the case of a LIBOR Auction, the margin above or below applicable LIBOR (the “LIBOR Margin”) offered for each such LIBOR Margin Loan, expressed as a percentage (rounded upwards, if necessary, to the nearest 1/1,000th of 1%) to be added to (or subtracted from) the applicable LIBOR; and
		

		
			 
		

		
			(E)the identity of the quoting Lender.
		

		
			 
		

		
			Unless otherwise agreed by the Agent and the Borrower, no Bid Rate Quote shall contain qualifying, conditional or similar language or propose terms other than or in addition to those set forth in the applicable Bid Rate Quote Request and, in particular, no Bid Rate Quote may be conditioned upon acceptance by the Borrower of all (or some specified minimum) of the principal amount of the Bid Rate Loan for which such Bid Rate Quote is being made.
		

		
			 
		

		
			(d)Notification by Agent.  The Agent shall, as promptly as practicable after the Bid Rate Quotes are submitted (but in any event not later than 9:30 a.m. Pacific time (x) on the proposed date of borrowing, in the case of an Absolute Rate Auction or (y) on the date three (3) Business Days prior to the proposed date of borrowing, in the case of a LIBOR Auction), notify the Borrower of the terms (i) of any Bid Rate Quote submitted by a Lender that is in accordance with Section 2.2.(c) and (ii) of any Bid Rate Quote that amends, modifies or is otherwise inconsistent with a previous Bid Rate Quote submitted by such Lender with respect to the same Bid Rate Quote Request.  Any such subsequent Bid Rate Quote shall be disregarded by the Agent unless such subsequent Bid Rate Quote is submitted solely to correct a manifest error in such former Bid Rate Quote.  The Agent’s notice to the Borrower shall specify (A) the aggregate principal amount of the Bid Rate Borrowing for which offers have been received and (B) the principal amounts and Absolute Rates or LIBOR Margins, as applicable, so offered by each Lender (identifying the Lender that made such Bid Rate Quote).
		

		
			 
		

		
			(e)Acceptance by Borrower.
		

		
			 
		

		
			(i)Not later than 10:30 a.m. Pacific time (x) on the proposed date of borrowing, in the case of an Absolute Rate Auction and (y) on the date three (3) Business Days prior to the proposed date of borrowing, in the case of a LIBOR Auction, the Borrower shall notify the Agent of its acceptance or nonacceptance of the Bid Rate Quotes so notified to it pursuant to Section 2.2.(d). which notice shall be in the form of Exhibit N.  In the case of acceptance, such notice shall specify the aggregate principal amount of Bid Rate Quotes for each Interest Period that are accepted.  The failure of the Borrower to give such notice by such time shall constitute nonacceptance.  The Borrower may accept any Bid Rate Quote in whole or in part; provided that:
		

		
			 
		

		
			(A)the aggregate principal amount of each Bid Rate Borrowing may not exceed the applicable amount set forth in the related Bid Rate Quote Request;
		

		

		

		 

		

			 

		

		

			-  31  -

		

 

		 
		

		
			(B)the aggregate principal amount of each Bid Rate Borrowing shall comply with the provisions of Section 2.2.(b)(ii) and together with all other Bid Rate Loans then outstanding shall not cause the limits specified in Section 2.18. to be violated;
		

		
			 
		

		
			(C)acceptance of Bid Rate Quotes may be made only in ascending order of Absolute Rates or LIBOR Margins, as applicable, in each case beginning with the lowest rate so offered; 
		

		
			 
		

		
			(D)any acceptance in part by the Borrower shall be in a minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess thereof; and
		

		
			 
		

		
			(E)the Borrower may not accept any Bid Rate Quote that fails to comply with Section 2.2.(c) or otherwise fails to comply with the requirements of this Agreement.
		

		
			 
		

		
			(ii)If Bid Rate Quotes are made by two or more Lenders with the same Absolute Rates or LIBOR Margins, as applicable, for a greater aggregate principal amount than the amount in respect of which Bid Rate Quotes are permitted to be accepted for the related Interest Period, the principal amount of Bid Rate Loans in respect of which such Bid Rate Quotes  are accepted shall be allocated by the Agent among such Lenders in proportion to the aggregate principal amount of such Bid Rate Quotes.  Determinations by the Agent of the amounts of Bid Rate Loans shall be conclusive in the absence of manifest error.
		

		
			 
		

		
			(f)Obligation to Make Bid Rate Loans.  The Agent shall promptly (and in any event not later than (x) 11:30 a.m. Pacific time on the proposed date of borrowing of Absolute Rate Loans and (y) on the date three (3) Business Days prior to the proposed date of borrowing of LIBOR Margin Loans) notify each Lender as to whose Bid Rate Quote has been accepted and the amount and rate thereof.  A Lender who is notified that it has been selected to make a Bid Rate Loan may designate its SPC (if any) to fund such Bid Rate Loan on its behalf, as described in Section 13.5.(k).  Any SPC which funds a Bid Rate Loan shall on and after the time of such funding become the obligee in respect of such Bid Rate Loan and be entitled to receive payment thereof when due.  No Lender shall be relieved of its obligation to fund a Bid Rate Loan, and no SPC shall assume such obligation, prior to the time the applicable Bid Rate Loan is funded.  Any Lender whose offer to make any Bid Rate Loan has been accepted shall, not later than 12:30 p.m. Pacific time on the date specified for the making of such Loan, make the amount of such Loan available to the Agent at its Principal Office in immediately available funds, for the account of the Borrower.  The amount so received by the Agent shall, subject to the terms and conditions of this Agreement, be made available to the Borrower not later than 1:30 p.m. Pacific time on such date by depositing the same, in immediately available funds, in an account of the Borrower designated by the Borrower.
		

		
			 
		

		

		

		 

		

			 

		

		

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		(g)No Effect on Commitment.  Except for the purpose and to the extent expressly stated in Section 2.13. and 2.18., the amount of any Bid Rate Loan made by any Lender shall not constitute a utilization of such Lender’s Commitment.
		

		
			 
		

		
			Section 2.3.  Letters of Credit.
		

		
			(a)Letters of Credit.  Subject to the terms and conditions of this Agreement, including without limitation, Section 2.18., the Issuing Banks, on behalf of the Lenders, agree to issue for the account of the Borrower during the period from and including the Effective Date to, but excluding, the date 30 days prior to the Termination Date, one or more letters of credit (each a “Letter of Credit”) up to a maximum aggregate Stated Amount at any one time outstanding not to exceed $50,000,000 as such amount may be reduced from time to time in accordance with the terms hereof (the “L/C Commitment Amount”); provided, that an Issuing Bank shall not be obligated to issue any Letter of Credit if, after giving effect to such issuance, the aggregate Stated Amount of outstanding Letters of Credit issued by such Issuing Bank would exceed the lesser of (i) one-half of the L/C Commitment Amount and (ii) the Commitment of such Issuing Bank in its capacity as a Lender hereunder.
		

		
			 
		

		
			(b)Terms of Letters of Credit.  At the time of issuance, the amount, form, terms and conditions of each Letter of Credit, and of any drafts or acceptances thereunder, shall be subject to approval by the applicable Issuing Bank and the Borrower.  Notwithstanding the foregoing, in no event may (i) the expiration date of any Letter of Credit extend beyond the Termination Date, (ii) any Letter of Credit have an initial duration in excess of one year, or (iii) any Letter of Credit contain an automatic renewal provision (other than renewal provisions which are automatic in the absence of a notice of non-renewal from the applicable Issuing Bank so long as any such renewal provision does not provide for a renewal period that extends beyond the Termination Date).  
		

		
			 
		

		
			(c)Requests for Issuance of Letters of Credit.  The Borrower shall give the applicable Issuing Bank and the Agent written notice at least 5 Business Days prior to the requested date of issuance of a Letter of Credit, such notice to describe in reasonable detail the proposed terms of such Letter of Credit and the nature of the transactions or obligations proposed to be supported by such Letter of Credit, and in any event shall set forth with respect to such Letter of Credit (i) the requested initial Stated Amount, (ii) the proposed beneficiary, (iii) whether such Letter of Credit is to be a standby or commercial letter of credit, and (iv) the requested expiration date.  The Borrower shall also execute and deliver such customary applications and agreements for standby letters of credit, and other forms as requested from time to time by the applicable Issuing Bank.  Provided the Borrower has given the notice prescribed by the first sentence of this subsection and delivered such application and agreements referred to in the preceding sentence, subject to the other terms and conditions of this Agreement, including the satisfaction of any applicable conditions precedent set forth in Article VI., the applicable Issuing Bank shall issue the requested Letter of Credit on the requested date of issuance for the benefit of the stipulated beneficiary but in no event prior to the date 5 Business Days following the date after which the applicable Issuing Bank has received all of the items required to be delivered to it under this subsection.  No Issuing Bank shall at any time be obligated to issue any Letter of Credit if such issuance would conflict with, or cause such Issuing Bank or any Lender to, exceed any limits imposed by any Applicable Law.  References to “issue” and derivations thereof with respect to 
		

		 

		

			 

		

		

			-  33  -

		

 

		Letters of Credit shall also include extensions or modifications of any outstanding Letters of Credit, unless the context otherwise requires.  Upon the written request of the Borrower, the applicable Issuing Bank shall deliver to the Borrower a copy of (i) any Letter of Credit proposed to be issued by such Issuing Bank hereunder prior to the issuance thereof and (ii) each issued Letter of Credit by such Issuing Bank within a reasonable time after the date of issuance thereof.  To the extent any term of a Letter of Credit Document is inconsistent with a term of any Loan Document, the term of such Loan Document shall control.
		

		
			 
		

		
			(d)Reimbursement Obligations.  Upon receipt by an Issuing Bank from the beneficiary of a Letter of Credit issued by such Issuing Bank of any demand for payment under such Letter of Credit and such Issuing Bank’s determination that such demand for payment complies with the requirements of such Letter of Credit, such Issuing Bank shall promptly notify the Borrower and the Agent of the amount to be paid by such Issuing Bank as a result of such demand and the date on which payment is to be made by such Issuing Bank to such beneficiary in respect of such demand.  The Borrower hereby absolutely, unconditionally and irrevocably agrees to pay and reimburse each applicable Issuing Bank for the amount of each demand for payment under such Letter of Credit at or prior to the date on which payment is to be made by such Issuing Bank to the beneficiary thereunder, without presentment, demand, protest or other formalities of any kind.  Upon receipt by an Issuing Bank of any payment in respect of any Reimbursement Obligation in respect of a Letter of Credit issued by such Issuing bank, such Issuing Bank shall promptly pay to each Lender that has acquired a participation therein under the second sentence of Section 2.3.(i) such Lender’s Commitment Percentage of such payment.
		

		
			 
		

		
			(e)Manner of Reimbursement.  Upon its receipt of a notice referred to in the immediately preceding subsection (d), the Borrower shall advise the Agent and the applicable Issuing Bank whether or not the Borrower intends to borrow hereunder to finance its obligation to reimburse the applicable Issuing Bank  for the amount of the related demand for payment and, if it does, the Borrower shall submit a timely request for such borrowing as provided in the applicable provisions of this Agreement.  If the Borrower fails to so advise the Agent and such Issuing Bank, or if the Borrower fails to reimburse the applicable Issuing Bank for a demand for payment under a Letter of Credit issued by such Issuing Bank by the date of such payment (the failure of which the applicable Issuing Bank shall promptly notify the Administrative Agent), then (i) if the applicable conditions contained in Article VI. would permit the making of Revolving Loans, the Borrower shall be deemed to have requested a borrowing of Revolving Loans (which shall be Base Rate Loans) in an amount equal to the unpaid Reimbursement Obligation and the Agent shall give each Lender prompt notice of the amount of the Revolving Loan to be made available to the Agent not later than 11:00 a.m. and (ii) if such conditions would not permit the making of Revolving Loans, the provisions of subsection (j) of this Section shall apply. The amount limitations set forth in the second sentence of Section 3.5.(a) shall not apply to any borrowing of Base Rate Loans under this subsection.
		

		
			 
		

		
			(f)Effect of Letters of Credit on Commitments.  Upon the issuance by an Issuing Bank of any Letter of Credit and until such Letter of Credit shall have expired or been terminated, the Commitment of each Lender shall be deemed to be utilized for all purposes of this Agreement in an amount equal to the product of (i) such Lender’s Commitment Percentage 
		

		 

		

			 

		

		

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		and (ii) the sum of (A) the Stated Amount of such Letter of Credit plus (B) any related Reimbursement Obligations then outstanding.
		

		
			 
		

		
			(g)Issuing Banks’ Duties Regarding Letters of Credit; Unconditional Nature of Reimbursement Obligations.  In examining documents presented in connection with drawings under Letters of Credit and making payments under such Letters of Credit against such documents, each Issuing Bank shall only be required to use the same standard of care as it uses in connection with examining documents presented in connection with drawings under letters of credit in which it has not sold participations and making payments under such letters of credit.  The Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the foregoing, none of the Issuing Banks, the Agent or any of the Lenders shall be responsible for, and Borrower’s obligations in respect of Letters of Credit shall not be affected in any manner by, (i) the form, validity, sufficiency, accuracy, genuineness or legal effects of any document submitted by any party in connection with the application for and issuance of or any drawing honored under any Letter of Credit even if such document should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any Letter of Credit, or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of the beneficiary of any Letter of Credit to comply fully with conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telex, telecopy, electronic mail or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit, or of the proceeds thereof; (vii) the misapplication by the beneficiary of any Letter of Credit, or of the proceeds of any drawing under any Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Banks, the Agent or the Lenders.  None of the above shall affect, impair or prevent the vesting of any of the Issuing Banks’ or the Agent’s rights or powers hereunder.  Any action taken or omitted to be taken by an Issuing Bank under or in connection with any Letter of Credit issued by such Issuing Bank, if taken or omitted in the absence of gross negligence or willful misconduct, shall not create against such Issuing Bank any liability to the Borrower, the Agent, any other Issuing Bank or any Lender.  In this connection, the obligation of the Borrower to reimburse the applicable Issuing Bank for any drawing made under any Letter of Credit issued by such Issuing Bank, and to repay any Revolving Loan made pursuant to the second sentence of the immediately preceding subsection (e), shall be absolute, unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement and any other applicable Letter of Credit Document under all circumstances whatsoever, including without limitation, the following circumstances: (A) any lack of validity or enforceability of any Letter of Credit Document or any term or provisions therein; (B) any amendment or waiver of or any consent to departure from all or any of the Letter of Credit Documents; (C) the existence of any claim, setoff, defense or other right which the Borrower may have at any time against any Issuing Bank, the Agent, any Lender, any beneficiary of a Letter of Credit or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or in the Letter of Credit Documents or any unrelated transaction; (D) any breach of contract or dispute between the Borrower, any Issuing Bank the Agent, any Lender or any other Person; (E) any demand, 
		

		 

		

			 

		

		

			-  35  -

		

 

		statement or any other document presented under a Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein or made in connection therewith being untrue or inaccurate in any respect whatsoever; (F) any non‐application or misapplication by the beneficiary of a Letter of Credit or of the proceeds of any drawing under such Letter of Credit; (G) payment by an Issuing Bank under any Letter of Credit issued by it against presentation of a draft or certificate which does not strictly comply with the terms of such Letter of Credit; and (H) any other act, omission to act, delay or circumstance whatsoever that might, but for the provisions of this Section, constitute a legal or equitable defense to or discharge of the Borrower’s Reimbursement Obligations.
		

		
			 
		

		
			(h)Amendments, Etc.  The issuance by an Issuing Bank of any amendment, supplement or other modification to any Letter of Credit issued by it shall be subject to the same conditions applicable under this Agreement to the issuance of new Letters of Credit (including, without limitation, that the request therefor be made through the applicable Issuing Bank and the Agent), and no such amendment, supplement or other modification shall be issued unless either (i) the respective Letter of Credit affected thereby would have complied with such conditions had it originally been issued hereunder in such amended, supplemented or modified form or (ii) the Requisite Lenders shall have consented thereto.  In connection with any such amendment, supplement or other modification, the Borrower shall pay the fees, if any, payable under the last sentence of Section 3.6.(b).
		

		
			 
		

		
			(i)Lenders’ Participation in Letters of Credit.  Immediately upon the issuance by the applicable Issuing Bank of any Letter of Credit (or in the case of Existing Letters of Credit, upon the Agreement Date) each Lender shall be deemed to have absolutely, irrevocably and unconditionally purchased and received from such Issuing Bank, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage of the liability of such Issuing Bank with respect to such Letter of Credit and each Lender thereby shall absolutely, unconditionally and irrevocably assume, as primary obligor and not as surety, and shall be unconditionally obligated to such Issuing Bank to pay and discharge when due, such Lender’s Commitment Percentage of such Issuing Bank’s liability under such Letter of Credit.  In addition, upon the making of each payment by a Lender to the Agent in respect of any Letter of Credit for the account of an Issuing Bank pursuant to the immediately following subsection (j), such Lender shall, automatically and without any further action on the part of any Issuing Bank, the Agent or such Lender, acquire (i) a participation in an amount equal to such payment in the Reimbursement Obligation owing to such Issuing Bank by the Borrower in respect of such Letter of Credit and (ii) a participation in a percentage equal to such Lender’s Commitment Percentage in any interest or other amounts payable by the Borrower in respect of such Reimbursement Obligation (other than the Fees payable to such Issuing Bank pursuant to the second and last sentences of Section 3.6.(b)).
		

		
			 
		

		
			(j)Payment Obligation of Lenders.  Each Lender severally agrees to pay to the Agent, for the account of the applicable Issuing Bank, on demand in immediately available funds the amount of such Lender’s Commitment Percentage of each drawing paid by such Issuing Bank under each Letter of Credit issued by such Issuing Bank to the extent such amount is not reimbursed by the Borrower pursuant to Section 2.3.(d).  Each Lender’s obligation to make such payments to the Agent under this subsection, and the Agent’s right to receive the same for the 
		

		 

		

			 

		

		

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		account of the applicable Issuing Bank, shall be absolute, irrevocable and unconditional and shall not be affected in any way by any circumstance whatsoever, including without limitation, (i) the failure of any other Lender to make its payment under this subsection, (ii) the financial condition of the Borrower or any other Loan Party, (iii) the existence of any Default or Event of Default, including any Event of Default described in Section 11.1.(e) or 11.1.(f) or (iv) the termination of the Commitments.  Each such payment to the Agent for the account of any Issuing Bank shall be made without any offset, abatement, withholding or deduction whatsoever.  
		

		
			 
		

		
			(k)Information to Lenders.  Promptly following any change in any Letter of Credit outstanding, the applicable Issuing Bank shall deliver to the Agent, who shall promptly deliver the same to each Lender and the Borrower a notice describing the aggregate amount of all Letters of Credit issued by such Issuing Bank and outstanding at such time.  Upon the request of any Lender from time to time, each Issuing Bank shall deliver any other information reasonably requested by such Lender with respect to each Letter of Credit issued by such Issuing Bank and then outstanding.  Other than as set forth in this subsection, the Issuing Banks shall have no duty to notify the Lenders regarding the issuance or other matters regarding Letters of Credit issued hereunder.  The failure of any Issuing Bank to perform its requirements under this subsection shall not relieve any Lender from its obligations under Section 2.3.(j).
		

		
			 
		

		
			(l)Existing Letters of Credit.  The Borrower, the Issuing Banks, the Agent and the Lenders agree that each of the letters of credit described on Schedule 2.3.(l) (the “Existing Letters of Credit”) shall, from and after the Effective Date, be deemed to be a Letter of Credit issued under this Agreement and shall be subject to and governed by the terms and conditions of this Agreement and the other Loan Documents.
		

		
			 
		

		
			Section 2.4.  Swingline Loans.
		

		
			(a)Swingline Loans.  Subject to the terms and conditions hereof, including without limitation, Section 2.18., if necessary to meet the various funding deadlines of the Borrower, the Swingline Lender agrees to make Swingline Loans in Dollars to the Borrower, during the period from the Effective Date to but excluding the Swingline Termination Date, in an aggregate principal amount at any one time outstanding up to, but not exceeding, the amount of the Swingline Commitment.  If at any time the aggregate principal amount of the Swingline Loans outstanding at such time exceeds the Swingline Commitment in effect at such time, the Borrower shall immediately pay the Agent for the account of the Swingline Lender the amount of such excess.  Subject to the terms and conditions of this Agreement, the Borrower may borrow, repay and reborrow Swingline Loans hereunder. 
		

		
			 
		

		
			(b)Procedure for Borrowing Swingline Loans.  The Borrower shall give the Agent and the Swingline Lender notice pursuant to a Notice of Swingline Borrowing delivered to the Swingline Lender no later than 1:00 p.m. on the proposed date of such borrowing.  Any such telephonic notice shall include all information to be specified in a written Notice of Swingline Borrowing.  Not later than 3:00 p.m. on the date of the requested Swingline Loan and subject to satisfaction of the applicable conditions set forth in Article VI. for such borrowing, the Swingline Lender will make the proceeds of such Swingline Loan available to the Borrower in Dollars, in immediately available funds, by depositing them in the applicable Designated Account.
		

		
			 
		

		

		

		 

		

			 

		

		

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		(c)Interest.  Swingline Loans shall bear interest at the Base Rate or such other rates as the Borrower and the Swingline Lender may agree from time to time in writing.  Interest payable on Swingline Loans is solely for the account of the Swingline Lender.  All accrued and unpaid interest on Swingline Loans shall be payable on the dates and in the manner provided in Section 2.5. with respect to interest on Base Rate Loans (except as the Swingline Lender and the Borrower may otherwise agree in writing in connection with any particular Swingline Loan).  
		

		
			 
		

		
			(d)Swingline Loan Amounts, Etc.  Each Swingline Loan shall be in the minimum amount of $500,000, or such other minimum amounts agreed to by the Swingline Lender and the Borrower.  Any voluntary prepayment of a Swingline Loan must be in the minimum amount of $100,000 or, if less, the aggregate principal amount of all outstanding Swingline Loans (or such other minimum amounts upon which the Swingline Lender and the Borrower may agree) and in connection with any such prepayment, the Borrower must give the Swingline Lender prior written notice thereof no later than 10:00 a.m. on the day prior to the date of such prepayment.  The Swingline Loans shall, in addition to this Agreement, be evidenced by the Swingline Notes.
		

		
			 
		

		
			(e)Repayment and Participations of Swingline Loans.  The Borrower agrees to repay each Swingline Loan borrowed by it within one Business Day of demand therefor by the Swingline Lender and in any event, within 5 Business Days after the date such Swingline Loan was made.  Notwithstanding the foregoing, the Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, the Swingline Loans borrowed by it on the Swingline Termination Date (or such earlier date as the Swingline Lender and the Borrower may agree in writing).  In lieu of demanding repayment of any outstanding Swingline Loan from the Borrower, the Swingline Lender may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to act on its behalf), request a borrowing of Revolving Loans (which shall be Base Rate Loans) from the Lenders in an amount equal to the principal balance of such Swingline Loan.  The amount limitations contained in Section 3.5.(a) shall not apply to any borrowing of Base Rate Loans made pursuant to this subsection.  The Swingline Lender shall give notice to the Agent of any such borrowing of Base Rate Loans not later than 10:00 a.m. at least one Business Day prior to the proposed date of such borrowing.  Each Lender will make available to the Agent at the Principal Office for the account of Swingline Lender, in immediately available funds, the proceeds of the Base Rate Loan to be made by such Lender.  The Agent shall pay the proceeds of such Base Rate Loans to the Swingline Lender, which shall apply such proceeds to repay such Swingline Loan.  If the Lenders are prohibited from making Loans required to be made under this subsection for any reason whatsoever, including without limitation, the occurrence of any of the Defaults or Events of Default described in Sections 11.1.(e) or 11.1.(f), each Lender shall purchase from the Swingline Lender, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Commitment Percentage of such Swingline Loan, by directly purchasing a participation in such Swingline Loan in such amount and paying the proceeds thereof to the Agent for the account of the Swingline Lender in Dollars and in immediately available funds.  A Lender’s obligation to purchase such a participation in a Swingline Loan shall be absolute and unconditional and shall not be affected by any circumstance whatsoever, including without limitation, (i) any claim of setoff, counterclaim, recoupment, defense or other right which such Lender or any other Person may have or claim against the Agent, the Swingline Lender or any other Person whatsoever, (ii) the occurrence or continuation of a Default or Event of Default (including without limitation, 
		

		 

		

			 

		

		

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		any of the Defaults or Events of Default described in Sections 11.1.(e) or 11.1.(f)) or the termination of the Commitments of any Lender, (iii) the existence (or alleged existence) of an event of condition which has had or could have a Material Adverse Effect, (iv) any breach of any Loan Document by the Agent, any Lender, the Borrower or any other Loan Party or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.  If such amount is not in fact made available to the Swingline Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof, at the Federal Funds Rate.  If such Lender does not pay such amount forthwith upon the Swingline Lender’s demand therefor, and until such time as such Lender makes the required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of such unpaid participation obligation for all purposes of the Loan Documents (other than those provisions requiring the other Lenders to purchase a participation therein).  Further, such Lender shall be deemed to have assigned any and all payments made of principal and interest on its Loans, and any other amounts due to it hereunder, to the Swingline Lender to fund Swingline Loans in the amount of the participation in Swingline Loans that such Lender failed to purchase pursuant to this Section until such amount has been purchased (as a result of such assignment or otherwise).
		

		
			 
		

		
			Section 2.5.  Rates and Payment of Interest on Loans.
		

		
			(a)Rates.  The Borrower promises to pay to the Agent for the account of each Lender interest on the unpaid principal amount of each Loan made by such Lender for the period from and including the date of the making of such Loan to but excluding the date such Loan shall be paid in full, at the following per annum rates:
		

		
			 
		

		
			(i)during such periods as such Loan is a Base Rate Loan, at the Base Rate (as in effect from time to time), plus the Applicable Margin for Base Rate Loans;
		

		
			 
		

		
			(ii)during such periods as such Loan is a LIBOR Loan, at LIBOR for such Loan for the Interest Period therefor, plus the Applicable Margin for LIBOR Loans;
		

		
			 
		

		
			(iii)if such Loan is an Absolute Rate Loan, at the Absolute Rate for such Loan for the Interest Period therefor quoted by the Lender making such Loan in accordance with Section 2.2.; and
		

		
			 
		

		
			(iv)if such Loan is a LIBOR Margin Loan, at LIBOR for such Loan for the Interest Period therefor plus the LIBOR Margin quoted by the Lender making such Loan in accordance with Section 2.2.
		

		
			 
		

		
			Notwithstanding the foregoing, during the continuance of an Event of Default, the Borrower shall pay to the Agent for the account of each Lender and each Issuing Bank interest at the Post-Default Rate on the outstanding principal amount of any Loan made by such Lender, on all Reimbursement Obligations and on any other amount payable by the Borrower hereunder or under the Notes held by such Lender to or for the account of such Lender (including without limitation, accrued but unpaid interest to the extent permitted under Applicable Law).  
		

		
			 
		

		

		

		 

		

			 

		

		

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		(b)Payment of Interest. All accrued and unpaid interest on the outstanding principal amount of each Loan shall be payable (i) in the case of Base Rate Loans, monthly in arrears on the first day of each month, (ii) in the case of a LIBOR Loan or a Bid Rate Loan, on the last day of each Interest Period therefor and, if such Interest Period is longer than three months, at three-month intervals following the first day of such Interest Period, and (iii) for all Loans, (A) on the Termination Date and (B) on any date on which the principal balance of such Loan is due and payable in full (whether at maturity, due to acceleration or otherwise).  Interest payable at the Post-Default Rate shall be payable from time to time on demand.  All determinations by the Agent of an interest rate hereunder shall be conclusive and binding on the Lenders and the Borrower for all purposes, absent manifest error.
		

		
			 
		

		
			(c)Borrower Information Used to Determine Applicable Interest Rates.  The parties understand that the applicable interest rate for the Obligations and certain fees set forth herein may be determined and/or adjusted from time to time based upon certain financial ratios and/or other information to be provided or certified to the Lenders by the Borrower (the “Borrower Information”).  If it is subsequently determined that any such Borrower Information was incorrect (for whatever reason, including without limitation because of a subsequent restatement of earnings by the Borrower) at the time it was delivered to the Agent, and if the applicable interest rate or fees calculated for any period were lower than they should have been had the correct information been timely provided, then, such interest rate and such fees for such period shall be automatically recalculated using correct Borrower Information.  The Agent shall promptly notify the Borrower in writing of any additional interest and fees due because of such recalculation, and the Borrower shall pay such additional interest or fees due to the Agent, for the account of each Lender, within 5 Business Days of receipt of such written notice.  Any recalculation of interest or fees required by this provision shall survive the termination of this Agreement, and this provision shall not in any way limit any of the Agent’s or any Lender’s other rights under this Agreement.
		

		
			 
		

		
			Section 2.6.  Number of Interest Periods.
		

		
			There may be no more than 8 different Interest Periods with respect to LIBOR Loans outstanding at the same time and no more than 5 different Interest Periods with respect to Bid Rate Loans outstanding at the same time.
		

		
			 
		

		
			Section 2.7.  Repayment of Loans.
		

		
			(a)Revolving Loans.  The Borrower shall repay the aggregate outstanding principal balance of all Revolving Loans in full on the Termination Date.
		

		
			 
		

		
			(b)Bid Rate Loans.  The Borrower shall repay the entire outstanding principal amount of, and all accrued interest on, each Bid Rate Loan on the last day of the Interest Period of such Bid Rate Loan.
		

		
			
		

		
			Section 2.8.  Prepayments.
		

		
			(a)Optional.  Subject to Section 5.4., the Borrower may prepay any Revolving Loan at any time without premium or penalty.  The Borrower shall give the Agent at least one 
		

		 

		

			 

		

		

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		Business Days prior written notice of the prepayment of any Revolving Loan.  A Bid Rate Loan may only be prepaid with the prior written consent of the Lender holding such Bid Rate Loan.
		

		
			 
		

		
			(b)Mandatory.  
		

		
			 
		

		
			(i)Commitment Overadvance.  If at any time the aggregate principal amount of all outstanding Loans, together with the aggregate amount of all Letter of Credit Liabilities, exceeds the aggregate amount of the Commitments, the Borrower shall, within three calendar days after notice of the occurrence of such excess, pay to the Agent for the account of the Issuing Banks and/or the Lenders, as applicable, the amount of such excess.  All payments under this subsection (i) shall be applied to pay all amounts of excess principal outstanding on the applicable Revolving Loans and any applicable Reimbursement Obligations in accordance with Section 3.2., and the remainder, if any, shall be deposited into the Letter of Credit Collateral Account for application to any Reimbursement Obligations as and when due.
		

		
			 
		

		
			(ii)Bid Rate Facility Overadvance.  If at any time the aggregate principal amount of all outstanding Bid Rate Loans exceeds one‐half of the aggregate amount of all Commitments at such time, then the Borrower shall, within three calendar days after notice of the occurrence of such excess, pay to the Agent for the accounts of the applicable Lenders the amount of such excess.  All payments under this subsection (ii) shall be applied in accordance with Section 3.2.(f).
		

		
			 
		

		
			Section 2.9.  [Intentionally Omitted].
		

		
			Section 2.10.  Continuation.
		

		
			So long as no Default or Event of Default exists, the Borrower may on any Business Day, with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR Loan by selecting a new Interest Period for such LIBOR Loan.  Each new Interest Period selected under this Section shall commence on the last day of the immediately preceding Interest Period.  Each selection of a new Interest Period shall be made by the Borrower giving to the Agent a Notice of Continuation not later than 10:00 a.m. on the third Business Day prior to the date of any such Continuation of LIBOR Loans.  Such notice by the Borrower of a Continuation shall be by telecopy, electronic mail or other form of communication in the form of a Notice of Continuation, specifying (a) the proposed date of such Continuation, (b) the LIBOR Loan and portion thereof subject to such Continuation and (c) the duration of the selected Interest Period, all of which shall be specified in such manner as is necessary to comply with all limitations on Loans outstanding hereunder.  Each Notice of Continuation shall be irrevocable by and binding on the Borrower once given.  Promptly after receipt of a Notice of Continuation, the Agent shall notify each Lender by telecopy, electronic mail or other similar form of transmission of the proposed Continuation.  If the Borrower shall fail to select in a timely manner a new Interest Period for any LIBOR Loan in accordance with this Section, such Loan will automatically, on the last day of the current Interest Period therefor, Convert into a Base Rate Loan notwithstanding the failure of the Borrower to comply with Section 2.11.   
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 2.11.  Conversion.
		

		
			So long as no Default or Event of Default exists, the Borrower may on any Business Day, upon the Borrower’s giving of a Notice of Conversion to the Agent, Convert all or a portion of a Revolving Loan of one Type into a Revolving Loan of another Type.  Any Conversion of a LIBOR Loan into a Base Rate Loan shall be made on, and only on, the last day of an Interest Period for such LIBOR Loan and, upon Conversion of a Base Rate Loan into a LIBOR Loan, the Borrower shall pay accrued interest to the date of Conversion on the principal amount so Converted.  Each such Notice of Conversion shall be given not later than 10:00 a.m. (i) one Business Day prior to the date of any proposed Conversion into Base Rate Loans, and (ii) three Business Days prior to the date of any proposed Conversion into LIBOR Loans.  Promptly after receipt of a Notice of Conversion, the Agent shall notify each Lender by telecopy, electronic mail or other similar form of transmission of the proposed Conversion.  Subject to the restrictions specified above, each Notice of Conversion shall be by telecopy in the form of a Notice of Conversion specifying (a) the requested date of such Conversion, (b) the Type of Revolving Loan to be Converted, (c) the portion of such Type of Loan to be Converted, (d) the Type of Revolving Loan such Loan is to be Converted into, and (e) if such Conversion is into a LIBOR Loan, the requested duration of the Interest Period of such Loan.  Each Notice of Conversion shall be irrevocable by and binding on the Borrower once given.  
		

		
			 
		

		
			Section 2.12.  Notes.
		

		
			The Revolving Loans made by each Lender shall, in addition to this Agreement, also be evidenced by a promissory note of the Borrower substantially in the form of Exhibit J (each a “Revolving Note”), payable to the order of such Lender and duly completed.  The Bid Rate Loans made by a Lender to the Borrower shall, in addition to this Agreement, also be evidenced by a Bid Rate Note payable to the order of such Lender.
		

		
			 
		

		
			Section 2.13.  Voluntary Reductions of the Commitment.
		

		
			The Borrower shall have the right to terminate or reduce the aggregate unused amount of the Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate principal amount of all outstanding Swingline Loans and Bid Rate Loans and the aggregate amount of Letter of Credit Liabilities) at any time and from time to time without penalty or premium upon not less than 5 Business Days prior written notice to the Agent of each such termination or reduction, which notice shall specify the effective date thereof and the amount of any such reduction and shall be irrevocable once given and effective only upon receipt by the Agent; provided,  however, that if the Borrower seeks to reduce the aggregate amount of the Commitments below $75,000,000, then, unless the Agent and all Lenders have otherwise previously agreed in writing, the Commitments shall be reduced to zero and, except as otherwise provided herein, the provisions of this Agreement shall terminate.  The Agent will promptly transmit such notice to each Lender.  The Commitments, once terminated or reduced may not be increased or reinstated.  Any reduction in the aggregate amount of the Commitments shall result in a proportionate reduction (rounded to the next lowest integral multiple of $100,000) in each of the L/C Commitment Amount and the Swingline Commitment.  
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 2.14.  [Intentionally Omitted].
		

		
			Section 2.15.  [Intentionally Omitted].
		

		
			Section 2.16.  Expiration or Maturity Date of Letters of Credit Past Termination of Facility.
		

		
			If on the date the Commitments are terminated in full (whether voluntarily, by reason of the occurrence of an Event of Default or otherwise), there are any Letters of Credit outstanding hereunder, the Borrower shall, on such date, pay to the Agent, for the benefit of the Issuing Banks, the Agent, and the Lenders, an amount of money equal to the Stated Amount of such Letter(s) of Credit and in the applicable Designated Currencies of such Letters of Credit for deposit into the Letter of Credit Collateral Account.  If a drawing pursuant to any such Letter of Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower authorizes the Agent to use the monies deposited in the Letter of Credit Collateral Account to make payment to the beneficiary with respect to such drawing or the payee with respect to such presentment.  If no drawing occurs on or prior to the expiration date of such Letter of Credit, the Agent shall pay to the Borrower (or to whomever else may be legally entitled thereto) the monies deposited in the Letter of Credit Collateral Account with respect to such outstanding Letter of Credit on or before the date 30 days after the expiration date of such Letter of Credit.
		

		
			 
		

		
			Section 2.17.  Increase in Commitments.
		

		
			At any time and from time to time beginning on the Effective Date to but excluding the Termination Date, the Borrower shall have the right to request an increase in the aggregate amount of the Commitments by providing written notice to the Agent, which notice shall be irrevocable once given; provided,  however, that after giving effect to such increase the aggregate amount of the Commitments shall not exceed $800,000,000. The Agent shall promptly notify each Lender of any such request.  No Lender shall be obligated in any way whatsoever to increase its Commitment.  If a new Lender becomes a party to this Agreement, or if any existing Lender agrees to increase its Commitment, such Lender shall on the date it becomes a Lender hereunder (or in the case of an existing Lender, increases its Commitment) (and as a condition thereto) purchase from the other Lenders its Commitment Percentage (determined with respect to the Lenders’ relative Commitments and after giving effect to the increase of Commitments) of any outstanding Revolving Loans, by making available to the Agent for the account of such other Lenders, in immediately available funds, an amount equal to the sum of (A) the portion of the outstanding principal amount of such Revolving Loans to be purchased by such Lender plus (B) interest accrued and unpaid to and as of such date on such portion of the outstanding principal amount of such Loans.  The Borrower shall pay to the Lenders amounts payable, if any, to such Lenders under Section 5.4. as a result of the prepayment of any such Loans.  An increase of the aggregate amount of the Commitments may not be effected under this Section if either (x) a Default or Event of Default shall be in existence on the effective date of such increase or (y) any representation or warranty made or deemed made by the Borrower or any other Loan Party in any Loan Document to which such Loan Party is a party is not (or would not be) true or correct on the effective date of such increase except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date) and except for 
		

		 

		

			 

		

		

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		changes in factual circumstances specifically and expressly permitted hereunder.  In connection with an increase in the aggregate amount of the Commitments pursuant to this Section (a) any Lender becoming a party hereto shall execute such documents and agreements as the Agent may reasonably request, and (b) the Borrower shall make appropriate arrangements so that each new Lender, and any existing Lender increasing its Commitment, receives a new or replacement Note, as appropriate, in the amount of such Lender’s Commitment at the time of the effectiveness of the increase in the aggregate amount of Commitments.
		

		
			 
		

		
			Section 2.18.  Amount Limitations.
		

		
			Notwithstanding any other term of this Agreement, no Lender shall be required to make any Loan, no Lender shall make any Bid Rate Loan, and no Issuing Bank shall be required to issue any Letter of Credit if, immediately after the making of such Loan or issuance of such Letter of Credit (a) the aggregate principal amount of all outstanding Loans, together with the aggregate amount of all Letter of Credit Liabilities, would exceed the aggregate amount of the Commitments, or (b) the aggregate principal amount of all outstanding Bid Rate Loans would exceed one-half of the aggregate amount of the Commitments at such time.
		

		
			 
		

		
			Article III. Payments, Fees and Other General Provisions 
		

		
			Section 3.1.  Payments.
		

		
			All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except to the extent otherwise provided herein, all payments of principal, interest and other amounts to be made by the Borrower under this Agreement or any other Loan Document shall be made in Dollars, in immediately available funds.  The Borrower shall make each payment of any amount due under this Agreement not later than 11:00 a.m. on the date on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day).  The Borrower shall, at the time of making each payment under this Agreement or any Note, specify to the Agent the amounts payable by the Borrower hereunder to which such payment is to be applied.  Each payment received by the Agent for the account of a Lender or an Issuing Bank under this Agreement or any Note of such Lender shall be paid to such Lender or Issuing Bank, by wire transfer of immediately available funds in accordance with the wiring instructions provided by such Lender or Issuing Bank to the Agent from time to time, for the account of such Lender or Issuing Bank.  If the Agent fails to pay such amount to a Lender or an Issuing Bank within one Business Day of receipt thereof by the Agent, the Agent shall pay interest on such amount until paid at a rate per annum equal to the Federal Funds Rate from time to time in effect.  If the due date of any payment under this Agreement or any other Loan Document would otherwise fall on a day which is not a Business Day such date shall be extended to the next succeeding Business Day and interest shall be payable for the period of such extension.
		

		
			 
		

		
			Section 3.2.  Pro Rata Treatment.
		

		
			Except to the extent otherwise provided herein: (a) each borrowing from the Lenders under Section 2.1.(a) shall be made from the Lenders, each payment of the Fees under 
		

		 

		

			 

		

		

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		Section 3.6.(a) and the first sentence of Section 3.6.(b) shall be made for the account of the Lenders, and each termination or reduction of the amount of the Commitments under Section 2.13. or otherwise pursuant to this Agreement shall be applied to the respective Commitments of the Lenders, pro rata according to the amounts of their respective Commitments; (b) each payment or prepayment of principal of Revolving Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance with the respective unpaid principal amounts of the Revolving Loans held by them, provided that, subject to Section  3.10.,if immediately prior to giving effect to any such payment in respect of any Revolving Loans the outstanding principal amount of the Revolving Loans shall not be held by the Lenders pro rata in accordance with their respective Commitments in effect at the time such Loans were made, then such payment shall be applied to the Revolving Loans in such manner as shall result, as nearly as is practicable, in the outstanding principal amount of the Revolving Loans being held by the Lenders pro rata in accordance with their respective Commitments; (c) each payment of interest on Revolving Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance with the amounts of interest on such Loans then due and payable to the respective Lenders; (d) the making, Conversion and Continuation of Revolving Loans of a particular Type (other than Conversions provided for by Section 5.5.) shall be made pro rata among the Lenders according to the amounts of their respective Commitments (in the case of making of Loans) or their respective Revolving Loans (in the case of Conversions and Continuations of Revolving Loans) and the then current Interest Period for each Lender’s portion of each Loan of such Type shall be coterminous; (e) the Lenders’ participation in, and payment obligations in respect of, Letters of Credit under Section 2.3. and Swingline Loans under Section 2.4., shall be pro rata in accordance with their respective Commitments.  All payments of principal, interest, fees and other amounts in respect of the Swingline Loans shall be for the account of the Swingline Lender only (except to the extent any Lender shall have acquired a participating interest in any such Swingline Loan pursuant to Section 2.4.(e)); and (f) each prepayment of principal of Bid Rate Loans by the Borrower pursuant to Section 2.8.(b)(ii) shall be made for account of the Lenders then owed Bid Rate Loans pro rata in accordance with the respective unpaid principal amounts of the Bid Rate Loans then owing to each such Lender.
		

		
			 
		

		
			Section 3.3.  Sharing of Payments, Etc.
		

		
			If a Lender shall obtain payment of any principal of, or interest on, any Loan made by it to the Borrower under this Agreement, or shall obtain payment on any other Obligation owing by the Borrower or a Loan Party through the exercise of any right of set‐off, banker’s lien or counterclaim or similar right or otherwise or through voluntary prepayments directly to a Lender or other payments made by the Borrower or any other Loan Party to a Lender not in accordance with the terms of this Agreement and such payment should be distributed to the Lenders pro rata in accordance with Section 3.2. or Section 11.5., as applicable, such Lender shall promptly purchase from the other Lenders participations in (or, if and to the extent specified by such Lender, direct interests in) the Loans made by the other Lenders or other Obligations owed to such other Lenders in such amounts, pay such amounts to the other Lenders and make such other adjustments from time to time as shall be equitable, so that all the Lenders shall share the benefit of such payment (net of any reasonable expenses which may be incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with Section 3.2. or Section 11.5.  To such end, all the Lenders shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if such payment is rescinded or must otherwise be 
		

		 

		

			 

		

		

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		restored.  The Borrower agrees that any Lender so purchasing a participation (or direct interest) in the Loans or other Obligations owed to such other Lenders may exercise all rights of set‐off, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such Lender were a direct holder of Loans in the amount of such participation.  Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of the Borrower.
		

		
			 
		

		
			Section 3.4.  Several Obligations.
		

		
			No Lender shall be responsible for the failure of any other Lender to make a Loan or to perform any other obligation to be made or performed by such other Lender hereunder, and the failure of any Lender to make a Loan or to perform any other obligation to be made or performed by it hereunder shall not relieve the obligation of any other Lender to make any Loan or to perform any other obligation to be made or performed by such other Lender.
		

		
			 
		

		
			Section 3.5.  Minimum Amounts.
		

		
			(a)Borrowings.  Each borrowing of Base Rate Loans shall be in an aggregate minimum amount of $5,000,000.  Each borrowing of and Continuation of, and each Conversion of Base Rate Loans into, LIBOR Loans shall be in an aggregate minimum amount of $5,000,000.  
		

		
			 
		

		
			(b)Prepayments.  Each voluntary prepayment of Revolving Loans shall be in an aggregate minimum amount of $100,000, or if less, the entire outstanding balance of Revolving Loans.  
		

		
			 
		

		
			(c)Reductions of Commitments.  Each reduction of the Commitments under Section 2.13. shall be in an aggregate minimum amount of $5,000,000 and integral multiples of $100,000 in excess thereof.
		

		
			 
		

		
			Section 3.6.  Fees.
		

		
			(a)Facility Fees. During the period from the Effective Date to but excluding the Termination Date, the Borrower agrees to pay to the Agent for the account of the Lenders a facility fee equal to the daily aggregate amount of the Commitments (whether or not utilized) times a rate per annum equal to the Applicable Facility Fee. Such fee shall be payable quarterly in arrears on the last day of each March, June, September and December during the term of this Agreement and on the Termination Date.  
		

		
			 
		

		
			(b)Letter of Credit Fees.  The Borrower agrees to pay to the Agent for the account of each Lender a letter of credit fee at a rate per annum equal to the Applicable Margin times the daily average Stated Amount of each Letter of Credit for the period from and including the date of issuance of such Letter of Credit (x) to and including the date such Letter of Credit expires or is terminated or (y) to but excluding the date such Letter of Credit is drawn in full; provided,  however, in no event shall the aggregate amount of such fee be less than $500.  In addition, the Borrower shall pay to each Issuing Bank, for its own account and not for the account of any Lender, a fronting fee in respect of each Letter of Credit issued by such Issuing Bank at the rate 
		

		 

		

			 

		

		

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		equal to one‐eighth of one percent (0.125%) per annum on the daily average Stated Amount of such Letter of Credit.  The fees provided for in this subsection shall be nonrefundable and payable in the case of the fee provided for in the first sentence  in arrears (i) quarterly on the last day of March, June, September and December, (ii) on the Termination Date, (iii) on the date the Commitments are terminated or reduced to zero and (iv) thereafter from time to time on demand of the Agent, and in the case of the fee provided for in the second sentence, at the time of issuance of such Letter of Credit.  The Borrower shall pay directly to each Issuing Bank from time to time on demand all commissions, charges, costs and expenses in the amounts customarily charged by such Issuing Bank from time to time in like circumstances with respect to the issuance by such Issuing Bank of each Letter of Credit, drawings, amendments and other transactions relating thereto.
		

		
			 
		

		
			(c)Other Fees.  The Borrower agrees to pay such other fees of the Agent, the Issuing Banks and the Lenders as may be agreed to in writing from time to time between the Borrower and the Agent, any Issuing Bank or any Lenders, as the case may be.
		

		
			 
		

		
			Section 3.7.  Computations.
		

		
			Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or other Obligations due hereunder shall be computed on the basis of a year of 360 days and the actual number of days elapsed.
		

		
			 
		

		
			Section 3.8.  Usury.
		

		
			In no event shall the amount of interest due or payable on the Loans or other Obligations exceed the maximum rate of interest allowed by Applicable Law and, if any such payment is paid by the Borrower or received by any Lender, then such excess sum shall be credited as a payment of principal, unless the Borrower shall notify the respective Lender in writing that the Borrower elects to have such excess sum returned to it forthwith.  It is the express intent of the parties hereto that the Borrower not pay and the Lenders not receive, directly or indirectly, in any manner whatsoever, interest in excess of that which may be lawfully paid by the Borrower under Applicable Law.  The parties hereto hereby agree and stipulate that the only charge imposed upon the Borrower for the use of money in connection with this Agreement is and shall be the interest specifically described in subsections (i) through (iv) of Section 2.5.(a) and in Section 2.4.(c).  Notwithstanding the foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees, facility fees, letter of credit fees, underwriting fees, default charges, late charges, funding or “breakage” charges, increased cost charges, attorneys’ fees and reimbursement for costs and expenses paid by the Agent or any Lender to third parties or for damages incurred by the Agent or any Lender, are charges made to compensate the Agent or any such Lender for underwriting or administrative services and costs or losses performed or incurred, and to be performed or incurred, by the Agent and the Lenders in connection with this Agreement and shall under no circumstances be deemed to be charges for the use of money.  All charges other than charges for the use of money shall be fully earned and nonrefundable when due.
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 3.9.  Statements of Account.
		

		
			The Agent will account to the Borrower monthly with a statement of Loans, Letters of Credit, accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan Documents, and such account rendered by the Agent shall be deemed conclusive upon the Borrower absent manifest error.  The Agent will account to the Borrower on changes in Letters of Credit in accordance with Section 2.3.(k).  The failure of the Agent to deliver such a statement of accounts shall not relieve or discharge the Borrower from any of its obligations hereunder.
		

		
			 
		

		
			Section 3.10.  Defaulting Lenders.
		

		
			Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:
		

		
			 
		

		
			(a)Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Requisite Lenders.
		

		
			 
		

		
			(b)Defaulting Lender Waterfall.  Any payment of principal, interest, Fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article XI. or otherwise) shall be applied at such time or times as may be determined by the Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Agent (other than in respect of Letters of Credit) hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to each Issuing Bank (in respect of Letters of Credit) or the Swingline Lender hereunder; third, to Cash Collateralize the Issuing Banks’ Fronting Exposures with respect to such Defaulting Lender in accordance with subsection (e) below; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifth, if so determined by the Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing Banks’ future Fronting Exposures with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with subsection (e) below; sixth, to the payment of any amounts owing to the Lenders, the Issuing Banks, the Agent or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, any Issuing Bank, the Agent or the Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or amounts owing by such Defaulting Lender under Section 2.3.(j) in respect of Letters of Credit (such amounts “L/C Disbursements”), in respect of 
		

		 

		

			 

		

		

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		which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Article VI. were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in Letter of Credit Liabilities and Swingline Loans are held by the Lenders pro rata in accordance with their respective Commitment Percentages (determined without giving effect to the immediately following subsection (d)).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this subsection shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
		

		
			 
		

		
			(c)Certain Fees.
		

		
			 
		

		
			(i)No Defaulting Lender shall be entitled to receive any Fee payable under Section 3.6.(a) for any period during which that Lender is a Defaulting Lender, and the Borrower shall not be required to pay any such fee to a Defaulting Lender that otherwise would have been required to have been paid to that Defaulting Lender.
		

		
			 
		

		
			(ii)Each Defaulting Lender shall be entitled to receive the Fee payable under Section 3.6.(b) for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to the immediately following subsection (e).
		

		
			 
		

		
			(iii)With respect to any Fee not required to be paid to any Defaulting Lender pursuant to the immediately preceding clauses (i) or (ii), the Borrower shall (x) pay to each non‐Defaulting Lender that portion of any such Fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of Credit Liabilities or Swingline Loans that has been reallocated to such non‐Defaulting Lender pursuant to the immediately following subsection (d), (y) pay to each Issuing Bank and the Swingline Lender, as applicable, the amount of any such Fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing Bank’s or Swingline Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such Fee.
		

		
			 
		

		
			(d)Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in Letter of Credit Liabilities and Swingline Loans shall be reallocated among the non-Defaulting Lenders in accordance with their respective Commitment Percentages (determined without regard to such Defaulting Lender’s Commitment) but only to the extent that (x) the conditions set forth in Article VI. are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any non-Defaulting Lender to exceed such non-Defaulting Lender’s Commitment.  
		

		 

		

			 

		

		

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		No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a non-Defaulting Lender as a result of such non-Defaulting Lender’s increased exposure following such reallocation.
		

		
			 
		

		
			(e)Cash Collateral, Repayment of Swingline Loans.
		

		
			 
		

		
			(i)If the reallocation described in the immediately preceding subsection (d) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Lender’s Fronting Exposure and (y) second, Cash Collateralize the Issuing Banks’ Fronting Exposures in accordance with the procedures set forth in this subsection.
		

		
			 
		

		
			(ii)At any time that there shall exist a Defaulting Lender, within 1 Business Day following the written request of the Agent or any Issuing Bank, the Borrower shall Cash Collateralize such Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to the immediately preceding subsection (d) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the aggregate Fronting Exposure of such Issuing Bank with respect to Letters of Credit issued by such Issuing Bank and outstanding at such time.
		

		
			 
		

		
			(iii)The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grant to the Agent, for the benefit of the Issuing Banks, and agree to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in respect of Letter of Credit Liabilities, to be applied pursuant to the immediately following clause (iv).  If at any time the Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Agent and the Issuing Banks as herein provided, or that the total amount of such Cash Collateral is less than the aggregate Fronting Exposure of the Issuing Banks with respect to Letters of Credit issued and outstanding at such time, the Borrower will, promptly upon demand by the Agent, pay or provide to the Agent, for the account of the Issuing Banks, additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).
		

		
			 
		

		
			(iv)Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of Letter of Credit Liabilities (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.
		

		
			 
		

		
			(v)Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Banks’ Fronting Exposures shall no longer be required to be held as Cash Collateral pursuant to this subsection following (x) the elimination of the applicable 
		

		 

		

			 

		

		

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		Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (y) the determination by the Agent and the Issuing Banks that there exists excess Cash Collateral; provided that, subject to the immediately preceding subsection (b), the Person providing Cash Collateral and Issuing Banks may (but shall not be obligated to) agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations and provided further that to the extent that such Cash Collateral was provided by the Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to the Loan Documents.
		

		
			 
		

		
			(f)Defaulting Lender Cure.  If the Borrower, the Agent, the Issuing Banks and the Swingline Lender agree in writing that a Lender is no longer a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with their respective Commitment Percentages (determined without giving effect to the immediately preceding subsection (d)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to Fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided,  further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
		

		
			 
		

		
			(g)New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.
		

		
			 
		

		
			(h)Purchase of Defaulting Lender’s Commitment.  During any period that a Lender is a Defaulting Lender, the Borrower may, by the Borrower giving written notice thereof to the Agent, such Defaulting Lender and the other Lenders, demand that such Defaulting Lender assign its Commitment and Loans to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(b).  No party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  In addition, any Lender who is not a Defaulting Lender may, but shall not be obligated, in its sole discretion, to acquire the face amount of all or a portion of such Defaulting Lender’s Commitment and Loans via an assignment subject to and in accordance with the provisions of Section 13.5.(d).  In connection with any such assignment, such Defaulting Lender shall promptly execute all documents reasonably requested to effect such assignment, including an appropriate Assignment and Acceptance Agreement and, notwithstanding Section 13.5.(b), shall pay to the Agent an assignment fee in the amount of $7,500.  The exercise by the Borrower of its rights under this Section shall be at the Borrower’s sole cost and expense and at no cost or expense to the Agent or any of the Lenders.
		

		

		

		 

		

			 

		

		

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			Section 3.11.  Taxes.
		

		
			(a)Taxes Generally.  All payments by the Borrower of principal of, and interest on, the Loans and all other Obligations shall be made free and clear of and without deduction for any present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes (other than withholding taxes) that would not be imposed but for a connection between the Agent or a Lender and the jurisdiction imposing such taxes (other than a connection arising solely by virtue of the activities of the Agent or such Lender pursuant to or in respect of this Agreement or any other Loan Document), (iii)  any taxes imposed on or measured by any Lender’s assets, net income, receipts or branch profits, (iv) any taxes arising after the Agreement Date solely as a result of or attributable to a Lender changing its designated Lending Office after the date such Lender becomes a party hereto and (v) any taxes imposed by Sections 1471 through 1474 of the Internal Revenue Code (including any official interpretations thereof, collectively “FATCA”) on any “withholdable payment” payable to such recipient as a result of the failure of such recipient to satisfy the applicable requirements as set forth in FATCA after December 31, 2012 (such non‐excluded items being collectively called “Taxes”).  If any withholding or deduction from any payment to be made by the Borrower hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrower will:
		

		
			 
		

		
			(i)pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted;
		

		
			 
		

		
			(ii)promptly forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such Governmental Authority; and
		

		
			 
		

		
			(iii)pay to the Agent for its account or the account of the applicable Lender, as the case may be, such additional amount or amounts as is necessary to ensure that the net amount actually received by the Agent or such Lender will equal the full amount that the Agent or such Lender would have received had no such withholding or deduction been required.
		

		
			 
		

		
			A Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.   If reasonably requested by the Borrower or the Agent, a Lender shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.
		

		
			 
		

		
			(b)Tax Indemnification.  If the Borrower fails to pay any Taxes when due to the appropriate Governmental Authority or fails to remit to the Agent, for its account or the account of the respective Lender, as the case may be, the required receipts or other required documentary 
		

		 

		

			 

		

		

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		evidence, the Borrower shall indemnify the Agent and the Lenders for any incremental Taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any such failure.  For purposes of this Section, a distribution hereunder by the Agent or any Lender to or for the account of any Lender shall be deemed a payment by the Borrower.
		

		
			 
		

		
			(c)Tax Forms.  Prior to the date that any Lender or Participant organized under the laws of a jurisdiction outside the United States of America becomes a party hereto, such Person shall deliver to the Borrower and the Agent such certificates, documents or other evidence, as required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently effective and duly executed by such Lender or Participant establishing that payments to it hereunder and under the Notes are (i) not subject to United States Federal backup withholding tax and (ii) not subject to United States Federal withholding tax under the Code.  Each Lender shall (x) deliver further copies of such forms or other appropriate certifications on or before the date that any such forms expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to the Borrower and (y) obtain such extensions of the time for filing, and renew such forms and certifications thereof as may be reasonably requested by the Borrower or the Agent.  The Borrower shall not be required to pay any amount pursuant to the second sentence of subsection (a) above to any Lender or Participant that is organized under the laws of a jurisdiction outside of the United States of America or the Agent, if it is organized under the laws of a jurisdiction outside of the United States of America, if such Lender, Participant or the Agent, as applicable, fails to comply with the requirements of this subsection.
		

		
			 
		

		
			Article IV.  [Intentionally omitted].
		

		
			Article V. Yield Protection, Etc.
		

		
			Section 5.1.  Additional Costs; Capital Adequacy.
		

		
			(a)Additional Costs.  The Borrower shall promptly pay to the Agent for the account of a Lender from time to time such amounts as such Lender may reasonably determine to be necessary to compensate such Lender for any costs incurred by such Lender that it determines are attributable to its making or maintaining of any LIBOR Loans or LIBOR Margin Loans or its obligation to make any LIBOR Loans or LIBOR Margin Loans hereunder, any reduction in any amount receivable by such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or such obligation or the maintenance by such Lender of capital in respect of its Loans or its Commitments (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), resulting from any Regulatory Change that:  (i) changes the basis of taxation of any amounts payable to such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans or its Commitments (other than taxes imposed on or measured by the overall net income of such Lender or of its Lending Office for any of such Loans by the jurisdiction in which such Lender has its principal office or such Lending Office); or (ii) imposes or modifies any reserve, special deposit or similar requirements (excluding Regulation D of the Board of Governors of the Federal Reserve System or other similar reserve requirement applicable to any other category of liabilities or category of extensions of credit or other assets by reference to which the interest rate on LIBOR Loans or 
		

		 

		

			 

		

		

			-  53  -

		

 

		LIBOR Margin Loans is determined to the extent utilized when determining LIBOR for such Loan) relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, such Lender, or any commitment of such Lender (including, without limitation, the Commitments of such Lender hereunder); or (iii) has or would have the effect of reducing the rate of return on capital of such Lender to a level below that which such Lender could have achieved but for such Regulatory Change (taking into consideration such Lender’s policies with respect to capital adequacy).
		

		
			 
		

		
			(b)Lender’s Suspension of LIBOR Loans and LIBOR Margin Loans.  Without limiting the effect of the provisions of the immediately preceding subsection (a), if by reason of any Regulatory Change, any Lender either (i) incurs Additional Costs based on or measured by the excess above a specified level of the amount of a category of deposits or other liabilities of such Lender that includes deposits by reference to which the interest rate on LIBOR Loans or LIBOR Margin Loans is determined as provided in this Agreement or a category of extensions of credit or other assets of such Lender that includes LIBOR Loans or LIBOR Margin Loans or (ii) becomes subject to restrictions on the amount of such a category of liabilities or assets that it may hold, then, if such Lender so elects by notice to the Borrower (with a copy to the Agent), the obligation of such Lender to make or Continue, or to Convert any other Type of Loans into, LIBOR Loans and/or the obligation of a Lender that has outstanding a Bid Rate Quote hereunder shall be suspended until such Regulatory Change ceases to be in effect (in which case the provisions of Section 5.5. shall apply).
		

		
			 
		

		
			(c)Additional Costs in Respect of Letters of Credit.  Without limiting the obligations of the Borrower under the preceding subsections of this Section (but without duplication), if as a result of any Regulatory Change or any risk-based capital guideline or other requirement heretofore or hereafter issued by any Governmental Authority there shall be imposed, modified or deemed applicable any tax, reserve, special deposit, capital adequacy or similar requirement against or with respect to or measured by reference to Letters of Credit and the result shall be to increase the cost to an Issuing Bank of issuing (or any Lender purchasing participations in) or maintaining its obligation hereunder to issue (or purchase participations in) any Letter of Credit or reduce any amount receivable by an Issuing Bank or any Lender hereunder in respect of any Letter of Credit, then, upon demand by such Issuing Bank or such Lender, the Borrower shall pay promptly, and in any event within three Business Days of demand, to such Issuing Bank, or in the case of a Lender, to the Agent for the account of such Lender, as applicable, from time to time as specified by such Issuing Bank or a Lender, such additional amounts as shall be sufficient to compensate such Issuing Bank or such Lender for such increased costs or reductions in amount.  
		

		
			 
		

		
			(d)Notification and Determination of Additional Costs.  Each of the Agent, each Issuing Bank and each Lender agrees to notify the Borrower of any event occurring after the Agreement Date entitling the Agent, such Issuing Bank or such Lender to compensation under any of the preceding subsections of this Section as promptly as practicable; provided, however, the failure of the Agent, any Issuing Bank or any Lender to give such notice shall not release the Borrower from any of its obligations hereunder; provided, further, that the Borrower shall not be required to compensate a Lender or the Agent pursuant to this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender or Agent, 
		

		 

		

			 

		

		

			-  54  -

		

 

		as the case may be, notifies the Borrower of the event entitling the Agent or Lender to compensation giving rise to such increased costs or reductions, and of such Lender’s or Agent’s intention to claim compensation thereof (except that, if such event giving rise to such increased cots or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof). The Agent, such Issuing Bank or such Lender agrees to furnish to the Borrower a certificate setting forth the basis and amount of each request by such Issuing Bank or such Lender for compensation under this Section.  Absent manifest error, determinations by the Agent, any Issuing Bank or any Lender of the effect of any Regulatory Change shall be conclusive, provided that such determinations are made on a reasonable basis and in good faith.
		

		
			 
		

		
			Section 5.2.  Suspension of LIBOR Loans and LIBOR Margin Loans.
		

		
			Anything herein to the contrary notwithstanding, if, on or prior to the determination of LIBOR for any Interest Period:
		

		
			 
		

		
			(a)the Agent reasonably determines (which determination shall be conclusive) that by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining LIBOR for such Interest Period; or
		

		
			 
		

		
			(b)the Agent reasonably determines (which determination shall be conclusive) that LIBOR will not adequately and fairly reflect the cost to the Lenders of making or maintaining LIBOR Loans for such Interest Period; or
		

		
			 
		

		
			(c)the Agent reasonably determines (which determination shall be conclusive) that deposits are not being offered to banks in the applicable offshore interbank market for such currency of the applicable amount and the Interest Period of such LIBOR Loan; or
		

		
			 
		

		
			(d)any Lender that has outstanding a Bid Rate Quote with respect to a LIBOR Margin Loan reasonably determines (which determination shall be conclusive) that LIBOR will not adequately and fairly reflect the cost to such Lender of making or maintaining such LIBOR Margin Loan; 
		

		
			 
		

		
			then the Agent shall give the Borrower and each Lender prompt notice thereof and, so long as such condition remains in effect, (x) in the case of clauses (a) and (b), the Lenders shall be under no obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrower shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either repay such Loan or Convert such Loan into a Base Rate Loan, and (y) in the case of clause (c) above, no Lender that has outstanding a Bid Rate Quote with respect to a LIBOR Margin Loan shall be under any obligation to make such Loan.
		

		
			 
		

		
			Section 5.3.  Illegality.
		

		
			Notwithstanding any other provision of this Agreement, if it becomes unlawful for any Lender to honor its obligation to make or maintain LIBOR Loans hereunder and/or if any Lender 
		

		 

		

			 

		

		

			-  55  -

		

 

		that has an outstanding Bid Rate Quote shall determine that it is unlawful for such Lender to honor its obligation to make or maintain LIBOR Margin Loans hereunder, then such Lender shall promptly notify the Borrower thereof (with a copy to the Agent) and such Lender’s obligation to make or Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended and/or such Lender’s obligation to make LIBOR Margin Loans shall be suspended, as applicable, until such time as such Lender may again make and maintain LIBOR Loans (in which case the provisions of Section 5.5. shall be applicable).
		

		
			 
		

		
			Section 5.4.  Compensation.
		

		
			The Borrower shall pay to the Agent for the account of a Lender, upon the request of such Lender through the Agent, such amount or amounts as Agent shall reasonably determine in its sole discretion to be sufficient to compensate such Lender for any yield‐maintenance loss, cost or expense that the Agent determines is attributable to:  (a) any payment or prepayment (whether mandatory or optional) of a LIBOR Loan or a Bid Rate Loan, or Conversion of a LIBOR Loan, made by such Lender for any reason (including, without limitation, acceleration) on a date other than the last day of the Interest Period for such Loan; or (b) any failure by the Borrower for any reason (including, without limitation, the failure of any of the applicable conditions precedent specified in Article VI. to be satisfied) to borrow a LIBOR Loan or a Bid Rate Loan from such Lender on the date for such borrowing, or to Convert a Revolving Loan into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such Conversion or Continuation.  Upon the Borrower’s request, the Agent shall provide the Borrower with a statement setting forth in reasonable detail the basis for requesting such compensation and the method for determining the amount thereof.  Any such statement shall be conclusive absent manifest error, provided that such determinations are made on a reasonable basis and in good faith.
		

		
			 
		

		
			Section 5.5.  Treatment of Affected Loans.
		

		
			If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 5.1.(b), 5.2. or 5.3., then such Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion required by Section 5.1.(b) or 5.3., on such earlier date as such Lender may specify to the Borrower with a copy to the Agent) and, unless and until such Lender gives notice as provided below that the circumstances specified in Section 5.1., 5.2. or 5.3. that gave rise to such Conversion no longer exist:
		

		
			 
		

		
			(i)to the extent that such Lender’s LIBOR Loans have been so Converted, all payments and prepayments of principal that would otherwise be applied to such Lender’s LIBOR Loans shall be applied instead to its Base Rate Loans; and
		

		
			 
		

		
			(ii)all Loans that would otherwise be made or Continued by such Lender as LIBOR Loans shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  56  -

		

 

		If such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances specified in Section 5.1. or 5.3. that gave rise to the Conversion of such Lender’s LIBOR Loans pursuant to this Section no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when LIBOR Loans made by other Lenders are outstanding, then such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitments.
		

		
			 
		

		
			Section 5.6.  Affected Lenders.
		

		
			If (a) a Lender requests compensation pursuant to Section 3.11. or 5.1., and the Requisite Lenders are not also doing the same, (b) the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section 5.1.(b) or 5.3. but the obligation of the Requisite Lenders shall not have been suspended under such Sections or (c) a Lender does not vote in favor of any amendment, modification or waiver to this Agreement which, pursuant to Section 13.6. requires the vote of all of the Lenders, and the Requisite Lenders shall have voted in favor of such amendment, modification or waiver, then, so long as there does not then exist any Default or Event of Default, the Borrower may either (i) demand that such Lender (the “Affected Lender”), and upon such demand the Affected Lender shall promptly, assign its Commitments to an Eligible Assignee subject to and in accordance with the provisions of Section 13.5.(d) for a purchase price equal to the aggregate principal balance of Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees owing to the Affected Lender, or (ii) pay to the Affected Lender the aggregate principal balance of Loans then owing to the Affected Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees owing to the Affected Lender or any other amount as may be mutually agreed upon by such Affected Lender and Eligible Assignee, whereupon the Affected Lender shall no longer be a party hereto or have any rights or obligations hereunder or under any of the other Loan Documents.  Each of the Agent and the Affected Lender shall reasonably cooperate in effectuating the replacement of such Affected Lender under this Section, but at no time shall the Agent, such Affected Lender nor any other Lender be obligated in any way whatsoever to initiate any such replacement or to assist in finding an Eligible Assignee.  The exercise by the Borrower of its rights under this Section shall be at the Borrower’s sole cost and expenses and at no cost or expense to the Agent, the Affected Lender or any of the other Lenders; provided, however, the Borrower shall not be obligated to reimburse or otherwise pay an Affected Lender’s administrative or legal costs incurred as a result of the Borrower’s exercise of its rights under this Section.  The terms of this Section shall not in any way limit the Borrower’s obligation to pay to any Affected Lender compensation owing to such Affected Lender pursuant to Section 3.11. or 5.1.
		

		
			 
		

		
			Section 5.7.  Change of Lending Office.
		

		
			Each Lender agrees that it will use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate an alternate Lending Office with respect to any of its Loans affected by the matters or circumstances described in Sections 3.11., 5.1. or 5.3. to reduce the liability of the Borrower or avoid the results provided thereunder, so long as such 
		

		 

		

			 

		

		

			-  57  -

		

 

		designation is not disadvantageous to such Lender as determined by such Lender in its sole discretion, except that such Lender shall have no obligation to designate a Lending Office located in the United States of America.
		

		
			 
		

		
			Section 5.8.  Assumptions Concerning Funding of LIBOR Loans.
		

		
			Calculation of all amounts payable to a Lender under this Article V. shall be made as though such Lender had actually funded LIBOR Loans through the purchase of deposits in the relevant market bearing interest at the rate applicable to such LIBOR Loans in an amount equal to the amount of the LIBOR Loans and having a maturity comparable to the relevant Interest Period; provided, however, that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be used only for calculation of amounts payable under this Article V.
		

		
			 
		

		
			Article VI. Conditions Precedent
		

		
			Section 6.1.  Initial Conditions Precedent.
		

		
			The obligation of the Lenders to effect or permit the occurrence of the first Credit Event hereunder, whether as the making of a Loan or the issuance of a Letter of Credit, is subject to the following conditions precedent:
		

		
			 
		

		
			(a)The Agent shall have received each of the following, in form and substance satisfactory to the Agent:
		

		
			 
		

		
			(i)counterparts of this Agreement executed by each of the parties hereto;
		

		
			 
		

		
			(ii)Revolving Notes payable to each Lender that was not a party to the Existing Credit Agreement and to each Lender that was party to the Existing Credit Agreement that is changing the amount of its Commitment, Bid Rate Notes executed by the Borrower payable to each Lender, and the Swingline Note executed by the Borrower;
		

		
			 
		

		
			(iii)a Guaranty executed by each of the Borrower’s Subsidiaries and Unconsolidated Affiliates initially required to be a party thereto pursuant to Section 8.14.;
		

		
			 
		

		
			(iv)an opinion of Stephanie G. Heim, Vice President, Corporate Counsel and Secretary of the Borrower and the other Loan Parties regarding those matters covered in the opinion delivered in connection with the Existing Credit Agreement, and addressed to the Agent and the Lenders, and an opinion of an outside law firm that is counsel to the Borrower and the other Loan Parties, regarding those matters covered in the opinion delivered in connection with the Existing Credit Agreement but not including any opinion with respect to usury laws, and addressed to the Agent and the Lenders;
		

		
			 
		

		
			(v)the articles of incorporation of the Borrower certified as of a recent date by the Secretary of State of the State of formation of such Person;
		

		
			 
		

		

		

		 

		

			 

		

		

			-  58  -

		

 

		(vi)a certificate of good standing (or certificate of similar meaning) with respect to the Borrower issued as of a recent date by the Secretary of State of the State of formation of the Borrower and of each state in which the Borrower owns Properties and is required to be qualified to transact business and where failure to be so qualified could reasonably be expected to have a Material Adverse Effect; 
		

		
			 
		

		
			(vii)a certificate of incumbency signed by the Secretary or Assistant Secretary (or other individual performing similar functions) of each Loan Party with respect to each of the officers of such Person authorized to execute and deliver the Loan Documents to which such Person is a party, and in the case of the Borrower, authorized to execute and deliver on behalf of the Borrower Notices of Borrowing, Notices of Swingline Borrowing, requests for Letters of Credit, Notices of Conversion, Notices of Continuation, Bid Rate Quote Requests and notices of acceptance of Bid Rate Quotes;
		

		
			 
		

		
			(viii)copies certified by the Secretary or Assistant Secretary of the Borrower (or other individual performing similar functions) of (i) the by-laws of such Person and (ii) all corporate action taken by such Person to authorize the execution, delivery and performance of the Loan Documents to which it is a party;
		

		
			 
		

		
			(ix)a Compliance Certificate calculated on a pro forma basis for the Borrower’s fiscal year ended December 31, 2011;
		

		
			 
		

		
			(x)all tax forms and other documents required to be provided by a Lender under Section 3.11.; and
		

		
			 
		

		
			(xi)such other documents and instruments as the Agent, or any Lender through the Agent, may reasonably request; and
		

		
			 
		

		
			(b)In the good faith judgment of the Agent:
		

		
			 
		

		
			(i)There shall not have occurred or become known to the Agent or the Lenders any event, condition, situation or status since the date of the information contained in the financial and business projections, budgets, pro forma data and forecasts concerning the Borrower and its Subsidiaries delivered to the Agent and the Lenders prior to the Agreement Date that has had or could reasonably be expected to result in a Material Adverse Effect;
		

		
			 
		

		
			(ii)No litigation, action, suit, investigation or other arbitral, administrative or judicial proceeding shall be pending or threatened which could reasonably be expected to (A) result in a Material Adverse Effect or (B) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of any Loan Party to fulfill its obligations under the Loan Documents to which it is a party;
		

		
			 
		

		
			(iii)The Borrower and the other Loan Parties shall have received all approvals, consents and waivers, and shall have made or given all necessary filings and notices as shall be required to consummate the transactions contemplated hereby without the 
		

		 

		

			 

		

		

			-  59  -

		

 

		occurrence of any default under, conflict with or violation of (A) any Applicable Law or (B) any agreement, document or instrument to which any Loan Party is a party or by which any of them or their respective properties is bound, except for such approvals, consents, waivers, filings and notices the receipt, making or giving of which, or the failure to make, give or receive which, would not reasonably be likely to (1) have a Material Adverse Effect, or (2) restrain or enjoin, impose materially burdensome conditions on, or otherwise materially and adversely affect the ability of the Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to which it is a party; and
		

		
			 
		

		
			(iv)There shall not have occurred or exist any other material disruption of financial or capital markets that could reasonably be expected to materially and adversely affect the transactions contemplated by the Loan Documents.
		

		
			 
		

		
			Section 6.2.  Conditions Precedent to All Loans and Letters of Credit.
		

		
			The obligation of the Lenders to make any Loans and of the Issuing Banks to issue Letters of Credit is subject to the further condition precedent that: (a) no Default or Event of Default shall exist as of the date of the making of such Loan or date of issuance of such Letter of Credit or would exist immediately after giving effect thereto, and none of the conditions described in Section 2.18. would exist after giving effect thereto; (b) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of the making of such Loan or date of issuance of such Letter of Credit with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate in all material respects on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted hereunder and (c) except as otherwise provided herein, in the case of the borrowing of Loans (other than Bid Rate Loans), the Borrower shall have delivered a timely Notice of Borrowing or Notice of Swingline Borrowing, as the case may be.  Each Credit Event shall constitute a certification by the Borrower to the effect set forth in the preceding sentence (both as of the date of the giving of notice relating to such Credit Event and, unless the Borrower otherwise notifies the Agent prior to the date of such Credit Event, as of the date of the occurrence of such Credit Event).  In addition, the Borrower shall be deemed to have represented to the Agent, the Issuing Banks and the Lenders at the time such Loan is made or such Letter of Credit is issued that all conditions to the making of such Loan or issuing of such Letter of Credit contained in Article VI. have been satisfied.
		

		
			 
		

		
			Section 6.3. [Intentionally Omitted].    
		

		
			Section 6.4.  Conditions as Covenants.
		

		
			If the Lenders effect or permit the occurrence of the first Credit Event hereunder, whether the making of a Loan or the issuance of a Letter of Credit, prior to the satisfaction of all conditions precedent set forth in Sections 6.1. and 6.2., the Borrower shall nevertheless cause such condition or conditions to be satisfied within 5 Business Days after the date of the making 
		

		 

		

			 

		

		

			-  60  -

		

 

		of such Loans or the issuance of such Letter of Credit.  Unless set forth in writing to the contrary, the making of its initial Loan by a Lender shall constitute a confirmation by such Lender to the Agent, the Issuing Banks and the other Lenders that insofar as such Lender is concerned the Borrower has satisfied the conditions precedent for initial Loans set forth in Sections 6.1. and 6.2.
		

		
			 
		

		
			Article VII. Representations and Warranties
		

		
			Section 7.1.  Representations and Warranties.
		

		
			In order to induce the Agent and each Lender to enter into this Agreement and to make Loans and, in the case of the Issuing Banks, to issue Letters of Credit, and, in the case of the Lenders, to acquire participations in Letters of Credit, the Borrower represents and warrants to the Agent, the Issuing Banks and each Lender as follows:
		

		
			 
		

		
			(a)Organization; Power; Qualification.  Each of the Loan Parties and the other Subsidiaries is a corporation, partnership or other legal entity, duly organized or formed, validly existing and in good standing under the jurisdiction of its incorporation or formation, has the power and authority to own or lease its respective properties and to carry on its respective business as now being and hereafter proposed to be conducted and is duly qualified and is in good standing as a foreign corporation, partnership or other legal entity, and authorized to do business, in each jurisdiction in which the character of its properties or the nature of its business requires such qualification or authorization and where the failure to be so qualified or authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.
		

		
			 
		

		
			(b)Ownership Structure.  Part I of Schedule 7.1.(b) is, as of the Agreement Date, a complete and correct list of all Subsidiaries of the Borrower, setting forth for each such Subsidiary, (i) the type of legal entity which such Subsidiary is and (ii) the jurisdiction of organization of such Subsidiary.  Part II of Schedule 7.1.(b) correctly sets forth, as of the Agreement Date, all Unconsolidated Affiliates of the Borrower, including the correct legal name of such Person, the type of legal entity which each such Person is, and the jurisdiction of organization of such Person.  
		

		
			 
		

		
			(c)Authorization of Agreement, Notes, Loan Documents and Borrowings.  The Borrower has the right and power, and has taken all necessary action to authorize it, to borrow hereunder.  The Borrower and each other Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each of the Loan Documents to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby.  The Loan Documents to which the Borrower or any other Loan Party is a party have been duly executed and delivered by the duly authorized officers of such Person and each is a legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms, except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations contained herein or therein may be limited by equitable principles generally.
		

		
			 
		

		

		

		 

		

			 

		

		

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		(d)Compliance of Agreement, Etc. with Laws.  The execution, delivery and performance of this Agreement and the other Loan Documents to which the Borrower or any other Loan Party is a party in accordance with their respective terms and the borrowings hereunder do not and will not, by the passage of time, the giving of notice, or both:  (i) require any Governmental Approval or violate any Applicable Law (including all Environmental Laws) relating to the Borrower or any other Loan Party; (ii) conflict with, result in a breach of or constitute a default under the Borrower’s articles of incorporation or bylaws (including without limitation, Section 2 of Article IV and Section 2(a) of Article VIII of the Borrower’s bylaws), or any resolution adopted by the Borrower’s Board of Trustees in connection with the designation of any series of Preferred Stock of the Borrower, or the organizational documents of any other Loan Party, or any indenture, agreement or other instrument to which the Borrower or any other Loan Party is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Borrower or any other Loan Party other than in favor of the Agent for the benefit of the Lenders.
		

		
			 
		

		
			(e)Compliance with Law; Governmental Approvals.  The Borrower, each other Loan Party and each other Subsidiary is in compliance with each Governmental Approval and all other Applicable Laws relating to it except for noncompliances which, and Governmental Approvals the failure to possess which, could not, individually or in the aggregate, reasonably be expected to cause a Default or Event of Default or have a Material Adverse Effect.
		

		
			 
		

		
			(f)Title to Properties.  Each of the Borrower and the other Loan Parties and all other Subsidiaries has good, marketable and legal title to, or a valid leasehold interest in, its respective material assets.  
		

		
			 
		

		
			(g)Existing Indebtedness.  Schedule 7.1.(g) is, as of December 31, 2011, a complete and correct listing of any Indebtedness of the Borrower, its Subsidiaries and all of its Unconsolidated Affiliates having an outstanding principal balance of $5,000,000 or more.  
		

		
			 
		

		
			(h)[Intentionally Omitted]. 
		

		
			 
		

		
			(i)Litigation.  Except as disclosed in writing to the Agent and the Lenders or as disclosed in the Borrower’s periodic filings with the SEC, there are no actions, suits or proceedings pending (nor, to the knowledge of the Borrower, are there any actions, suits or proceedings threatened, nor is there any basis therefor) against or in any other way relating adversely to or affecting the Borrower, any other Loan Party, any other Subsidiary or any of their respective property in any court or before any arbitrator of any kind or before or by any other Governmental Authority which, if adversely determined, could reasonably be expected to have a Material Adverse Effect.  There are no strikes, slow downs, work stoppages or walkouts or other labor disputes in progress or threatened relating to the Borrower, any other Loan Party or any other Subsidiary which could reasonably be expected to have a Material Adverse Effect. 
		

		
			 
		

		
			(j)Taxes.  All federal, material state and other material tax returns of the Borrower, each other Loan Party and each other Subsidiary required by Applicable Law to be filed have been duly filed, and all federal, state and other material taxes, assessments and other 
		

		 

		

			 

		

		

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		governmental charges or levies upon the Borrower, each other Loan Party and each other Subsidiary and their respective properties, income, profits and assets which are due and payable have been paid, except any such nonpayment which is at the time permitted under Section 8.6.  As of the Agreement Date, none of the United States income tax returns of the Borrower, any other Loan Party or any other Subsidiary is under audit.  All charges, accruals and reserves on the books of the Borrower and each of its Subsidiaries in respect of any taxes or other governmental charges are in accordance with GAAP in all material respects.
		

		
			 
		

		
			(k)Financial Statements.  The Borrower has furnished to each Lender copies of the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal years ended December 31, 2010 and December 31, 2011 and the related consolidated statements of operations, stockholders’ equity and cash flow for the fiscal years ended on such dates, with the opinion thereon of Ernst & Young LLP.  Such balance sheets and statements (including in each case related schedules and notes) present fairly, in all material respects, the consolidated financial position of the Borrower and its Subsidiaries as at their respective dates and the results of operations and the cash flow for such periods (subject, as to interim statements, to changes resulting from normal year‐end audit adjustments) in conformity with GAAP.  Neither the Borrower nor any of its Subsidiaries has on the Agreement Date any material contingent liabilities, liabilities, liabilities for taxes, unusual or long-term commitments or unrealized or forward anticipated losses from any unfavorable commitments, except as referred to or reflected or provided for in said financial statements.  
		

		
			 
		

		
			(l)No Material Adverse Change.  Since December 31, 2010, there has been no material adverse change in the consolidated financial condition, results of operations, business or prospects of the Borrower and its Subsidiaries taken as a whole.  Each of the Borrower and the other Loan Parties is Solvent.
		

		
			 
		

		
			(m)ERISA.  Each member of the ERISA Group has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan.  No member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.
		

		
			 
		

		
			(n)Absence of Defaults.  None of the Borrower, the other Loan Parties or the other Subsidiaries is in default under its articles of incorporation, bylaws, partnership agreement or other similar organizational documents, and no event has occurred, which has not been remedied, cured or waived:  (i) which constitutes a Default or an Event of Default; or (ii) which constitutes, or which with the passage of time, the giving of notice, or both, would constitute, a default or event of default by the Borrower, any other Loan Party or any other Subsidiary under any agreement (other than this Agreement) or judgment, decree or order to which any such Person is 
		

		 

		

			 

		

		

			-  63  -

		

 

		a party or by which any such Person or any of its respective properties may be bound where such default or event of default could, individually or in the aggregate, have a Material Adverse Effect.
		

		
			 
		

		
			(o)Environmental Laws.  In the ordinary course of business and from time to time each of the Loan Parties and the other Subsidiaries conducts reviews of the effect of Environmental Laws on its respective business, operations and properties, including without limitation, its respective Properties, in the course of which such Loan Party or such Subsidiary identifies and evaluates associated liabilities and costs (including, without limitation, determining whether any capital or operating expenditures are required for clean-up or closure of properties presently or previously owned, determining whether any capital or operating expenditures are required to achieve or maintain compliance in all material respects with Environmental Laws or required as a condition of any Governmental Approval, any contract, or any related constraints on operating activities, determining whether any costs or liabilities exist in connection with off-site disposal of wastes or Hazardous Materials, and determining whether any actual or potential liabilities to third parties, including employees, and any related costs and expenses exist).  Each of the Loan Parties and the other Subsidiaries is in compliance with all applicable Environmental Laws and has obtained all Governmental Approvals which are required under Environmental Laws and is in compliance with all terms and conditions of such Governmental Approvals, where with respect to each of the foregoing the failure to obtain or to comply with could be reasonably expected to have a Material Adverse Effect.  Except for any of the following matters that could not be reasonably expected to have a Material Adverse Effect, the Borrower is not aware of, nor has either received notice of, any past or present events, conditions, circumstances, activities, practices, incidents, actions, or plans which, with respect to any Loan Party or any other Subsidiary, may unreasonably interfere with or prevent compliance or continued compliance with Environmental Laws, or may give rise to any common‐law or legal liability, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling or the emission, discharge, release or threatened release into the environment, of any Hazardous Material.  There is no civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter, notice of violation, investigation, or proceeding pending or, to the Borrower’s knowledge after due inquiry, threatened, against any Loan Party or any other Subsidiary relating in any way to Environmental Laws which, if determined adversely to such Loan Party or Subsidiary, could be reasonably expected to have a Material Adverse Effect.
		

		
			 
		

		
			(p)Investment Company; Etc.  Neither the Borrower, any other Loan Party, nor any other Subsidiary is (i) an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (ii) subject to any other Applicable Law which purports to regulate or restrict its ability to borrow money or to consummate the transactions contemplated by this Agreement or to perform its obligations under any Loan Document to which it is a party.
		

		
			 
		

		
			(q)Margin Stock.  None of the Borrower, any other Loan Party nor any other Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or 
		

		 

		

			 

		

		

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		carrying “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System.
		

		
			 
		

		
			(r)Affiliate Transactions.  Except as permitted by Section 10.9., none of the Borrower, any other Loan Party nor any other Subsidiary is a party to or bound by any agreement or arrangement (whether oral or written) with any Affiliate.
		

		
			 
		

		
			(s)Intellectual Property.  The Borrower and each Subsidiary owns or has the right to use, under valid license agreements or otherwise, all patents, licenses, franchises, trademarks, trademark rights, trade names, trade name rights, trade secrets and copyrights (collectively, “Intellectual Property”) material to the conduct of its businesses, without known conflict with any patent, license, franchise, trademark, trade secret, trade name, copyright, or other proprietary right of any other Person.  All such Intellectual Property is fully protected and/or duly and properly registered, filed or issued in the appropriate office and jurisdictions for such registrations, filing or issuances.  No material claim has been asserted by any Person with respect to the use of any such Intellectual Property, or challenging or questioning the validity or effectiveness of any such Intellectual Property.
		

		
			 
		

		
			(t)Business.  As of the Agreement Date, the principal business activities of the Borrower and its Subsidiaries are the acquisition, development, ownership and operation of storage facilities which offer storage spaces, usually on a month-to-month basis, for personal and business use and related activities.  
		

		
			 
		

		
			(u)Broker’s Fees.  Except for the various fees payable to the Agent and the Lenders in connection with the Loan Documents, no broker’s or finder’s fee, commission or similar compensation will be payable with respect to the transactions contemplated hereby.  No other similar fees or commissions will be payable by any Loan Party for any other services rendered to the Borrower or any of its Subsidiaries ancillary to the transactions contemplated hereby.
		

		
			 
		

		
			(v)Not Plan Assets; No Prohibited Transactions.  None of the assets of any Loan Party or any other Subsidiary constitutes “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder, of any ERISA Plan.  The execution, delivery and performance of the Loan Documents by the Loan Parties, and the borrowing and repayment of amounts thereunder, do not and will not constitute “prohibited transactions” under ERISA or the Internal Revenue Code.
		

		
			 
		

		
			(w)[Intentionally Omitted].  
		

		
			 
		

		
			(x)Accuracy and Completeness of Information.  All written information, reports and other papers and data (excluding financial projections) furnished to the Agent or any Lender by, on behalf of, or at the direction of, the Borrower, any other Loan Party or any other Subsidiary were, at the time the same were so furnished, complete and correct in all material respects or, in the case of financial statements, present fairly, in all material respects, the financial position of the Borrower and its consolidated subsidiaries as at the date thereof and the results of operations for such periods (subject, as to interim statements, to changes resulting from normal year‐end 
		

		 

		

			 

		

		

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		audit adjustments) in conformity with GAAP.  No fact is known to the Borrower which has had, as of the Effective Date, or may in the future have (so far as the Borrower can reasonably foresee), a Material Adverse Effect which has not been set forth in the financial statements referred to in Section 7.1.(k) or in such information, reports or other papers or data or otherwise disclosed in writing to the Agent and the Lenders (excluding financial projections or as otherwise agreed) prior to the Effective Date.  All financial projections have been prepared in good faith based on reasonable assumptions (it being understood that assumptions as to future results are inherently subject to uncertainty and contingencies, many of which are beyond the control of the Borrower, any other Loan Party or any other Subsidiary and that no assurance can be given that any particular projections will be realized).  No document furnished or written statement made to the Agent or any Lender in connection with the negotiation, preparation or execution of this Agreement or any of the other Loan Documents contains or will contain any untrue statement of a fact material to the creditworthiness of the Borrower, any other Loan Party or any other Subsidiary or omits or will omit to state a material fact necessary in order to make the statements contained therein not misleading in light of the circumstances under which they were made.
		

		
			(y)OFAC.  None of the Borrower, any of the other Loan Parties, any of the other Subsidiaries, or any other Affiliate of the Borrower: (i) is a person named on the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) available at http://www.treas.gov/offices/enforcement/ofac/index.shtml, or as otherwise published from time to time; (ii) is (A) an agency of the government of a country, (B) an organization controlled by a country, or (C) a person resident in a country that is subject to a sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/index.shtml, or as otherwise published from time to time, as such program may be applicable to such agency, organization or person; or (iii) derives any of its assets or operating income from investments in or transactions with any such country, agency, organization or person; and none of the proceeds from the Loan will be used to finance any operations, investments or activities in, or make any payments to, any such country, agency, organization, or person.
		

		
			(z)REIT Status.  For the fiscal year ended December 31, 2014, the Borrower qualified as a REIT and intends to continue to qualify as a REIT.
		

		
			 
		

		
			Section 7.2.  Survival of Representations and Warranties, Etc.
		

		
			All statements contained in any certificate, financial statement or other instrument delivered by or on behalf of the Borrower, any other Loan Party or any other Subsidiary to the Agent or any Lender pursuant to or in connection with this Agreement or any of the other Loan Documents (including, but not limited to, any such statement made in or in connection with any amendment thereto or any statement contained in any certificate, financial statement or other instrument delivered by or on behalf of the Borrower prior to the Agreement Date and delivered to the Agent or any Lender in connection with closing the transactions contemplated hereby) shall constitute representations and warranties made by the Borrower under this Agreement.  All representations and warranties made under this Agreement and the other Loan Documents shall be deemed to be made at and as of the Agreement Date, the Effective Date and at and as of the date of the occurrence of any Credit Event, except to the extent that such representations and 
		

		 

		

			 

		

		

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		warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date) and except for changes in factual circumstances specifically permitted hereunder.  All such representations and warranties shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents and the making of the Loans and the issuance of the Letters of Credit.
		

		
			 
		

		
			Article VIII. Affirmative Covenants
		

		
			For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner provided for in Section 13.6., the Borrower shall comply with the following covenants:
		

		
			 
		

		
			Section 8.1.  Preservation of Existence and Similar Matters.
		

		
			Except as otherwise permitted under Section 10.5., the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, (i) preserve and maintain its respective existence in the jurisdiction of its incorporation or formation, (ii) preserve and maintain its respective rights, franchises, licenses and privileges in the jurisdiction of its incorporation or formation, except where the failure to preserve and maintain such rights, franchises, licenses and privileges could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and (iii) qualify and remain qualified and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization, except where the failure to be so authorized and qualified could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
		

		
			 
		

		
			Section 8.2.  Compliance with Applicable Law.
		

		
			The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, comply with all Applicable Law, including the obtaining of all Governmental Approvals, the failure with which to comply could reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			Section 8.3.  Maintenance of Property.
		

		
			In addition to the requirements of any of the other Loan Documents, the Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, (a) protect and preserve all of its material properties, including, but not limited to, all Intellectual Property, and maintain in good repair, working order and condition all material tangible properties, ordinary wear and tear excepted, and (b) from time to time make or cause to be made all needed and appropriate repairs, renewals, replacements and additions to such properties, so that the business carried on in connection therewith may be properly and advantageously conducted at all times in all material respects.
		

		
			 
		

		
			Section 8.4.  Conduct of Business.
		

		
			The Borrower shall, and shall cause the other Loan Parties and each other Subsidiary to, carry on its respective businesses as described in Section 7.1.(t) and not enter into any line of business not otherwise engaged in by any such Person as of the Agreement Date except (a) for 
		

		 

		

			 

		

		

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		lines of business incidental or related thereto and (b) other lines of business so long as the Investment in such lines of business is permitted under Section 10.1.(j).
		

		
			 
		

		
			Section 8.5.  Insurance.
		

		
			The Borrower shall, and shall cause each Subsidiary to, maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by similar businesses or as may be required by Applicable Law. The Borrower shall from time to time deliver to the Agent upon request a detailed list, together with copies of all policies of the insurance then in effect if requested, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby.
		

		
			 
		

		
			Section 8.6.  Payment of Taxes and Claims.
		

		
			The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, pay and discharge when due (a) all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or upon any material properties belonging to it, and (b) all lawful and material claims of materialmen, mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals which, if unpaid, might become a Lien on any material properties of such Person; provided, however, that this Section shall not require the payment or discharge of any such tax, assessment, charge, levy or claim which is being contested in good faith by appropriate proceedings which operate to suspend the collection thereof and for which adequate reserves have been established on the books of such Person in accordance with GAAP.
		

		
			 
		

		
			Section 8.7.  Books and Records; Inspections.
		

		
			The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, keep proper books of record and account in which full, true and correct entries in all material respects shall be made of all dealings and transactions in relation to its respective business and activities.  The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, permit representatives of the Agent or any Lender to visit and inspect any of their respective properties, to examine and make abstracts from any of their respective books and records and to discuss their respective affairs, finances and accounts with their respective officers, employees and independent public accountants (in the Borrower’s presence if an Event of Default does not then exist), all at such reasonable times during business hours and as often as may reasonably be requested and so long as no Event of Default exists, with reasonable prior notice and, at any time while an Event of Default exists, all at the Borrower’s sole cost and expense.
		

		
			 
		

		
			Section 8.8.  Use of Proceeds.
		

		
			The Borrower shall use the proceeds of Loans only (a) for the payment of pre-development and development costs incurred in connection with Properties owned by the Borrower or any Subsidiary; (b) to finance acquisitions otherwise permitted under this Agreement; (c) to finance capital expenditures and the repayment of Indebtedness of the Borrower and its Subsidiaries; and (d) to provide for the general working capital needs of the 
		

		 

		

			 

		

		

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		Borrower and its Subsidiaries and for other general corporate purposes of the Borrower and its Subsidiaries, including redemptions or repurchases of Equity Interests of the Borrower and its Subsidiaries permitted under this Agreement.  The Borrower shall only use Letters of Credit for the same purposes for which it may use the proceeds of Loans.  The Borrower shall not, and shall not permit any Subsidiary to, use any part of such proceeds to purchase or carry, or to reduce or retire or refinance any credit incurred to purchase or carry, any margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or carrying any such margin stock if, in any such case, such use might result in any of the Loans being consider to be “purpose credit” directly or indirectly secured by margin stock within the meaning of Regulation U or Regulation X of the Board of Governors of the Federal Reserve System.
		

		
			 
		

		
			Section 8.9.  Environmental Matters.
		

		
			The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, comply with all Environmental Laws the failure with which to comply could reasonably be expected to have a Material Adverse Effect.  If the Borrower, any other Loan Party or any other Subsidiary shall (a) receive notice that any violation of any Environmental Law may have been committed or is about to be committed by such Person, (b) receive notice that any administrative or judicial complaint or order has been filed or is about to be filed against any such Person alleging violations of any Environmental Law or requiring any such Person to take any action in connection with the release of Hazardous Materials or (c) receive any notice from a Governmental Authority or private party alleging that any such Person may be liable or responsible for costs associated with a response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and the matters covered by such notices, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, the Borrower shall provide the Agent with a copy of such notice within 10 days after the receipt thereof by the Borrower, such other Loan Party or such other Subsidiary.  The Borrower shall, and shall cause each other Loan Party and each other Subsidiary to, promptly take all actions necessary to prevent the imposition of any Liens on any of their respective properties arising out of or related to any Environmental Laws.
		

		
			 
		

		
			Section 8.10.  Further Assurances.
		

		
			At the Borrower’s cost and expense and upon request of the Agent, the Borrower shall duly execute and deliver or cause to be duly executed and delivered, to the Agent such further instruments, documents and certificates, and do and cause to be done such further acts that may be reasonably necessary or advisable in the reasonable opinion of the Agent to carry out more effectively the provisions and purposes of this Agreement and the other Loan Documents.
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 8.11.  [Intentionally Omitted].
		

		
			Section 8.12.  [Intentionally Omitted].
		

		
			Section 8.13.  Exchange Listing.
		

		
			The Borrower shall maintain at least one class of common shares of the Borrower having trading privileges on the New York Stock Exchange or the American Stock Exchange or which is subject to price quotations on The NASDAQ Stock Market’s National Market System. 
		

		
			 
		

		
			Section 8.14.  [Intentionally Omitted] 
		

		
			 
		

		
			Article IX. Information
		

		
			For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Borrower shall furnish to each Lender (or to the Agent if so provided below) at its Lending Office:
		

		
			 
		

		
			Section 9.1.  Quarterly Financial Statements.
		

		
			As soon as available and in any event within 50 days after the close of each of the first, second and third fiscal quarters of the Borrower, the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such period and the related unaudited consolidated statements of income, shareholders’ equity and cash flows of the Borrower and its Subsidiaries for such period, setting forth in each case in comparative form the figures for the corresponding periods of the previous fiscal year, all of which shall be certified by the chief financial officer or other corporate officer of the Borrower, in his or her opinion, to present fairly, in accordance with GAAP, the consolidated financial position of the Borrower and its Subsidiaries as at the date thereof and the results of operations for such period (subject to normal year‐end audit adjustments).
		

		
			 
		

		
			Section 9.2.  Year‐End Statements.
		

		
			As soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, the audited consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the related audited consolidated statements of income, shareholders’ equity and cash flows of the Borrower and its Subsidiaries for such fiscal year, setting forth in comparative form the figures as at the end of and for the previous fiscal year, all of which shall be certified by (a) the chief financial officer or other corporate officer of the Borrower, in his or her opinion, to present fairly, in accordance with GAAP, the financial position of the Borrower and its Subsidiaries as at the date thereof and the result of operations for such period and (b) either (i) Ernst & Young LLP or (ii) any other independent certified public accountants of recognized national standing acceptable to the Requisite Lenders, whose certificate shall be unqualified and in scope and substance satisfactory to the Requisite Lenders 
		

		 

		

			 

		

		

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		and who shall have authorized the Borrower to deliver such financial statements and certification thereof to the Agent and the Lenders pursuant to this Agreement.  
		

		
			 
		

		
			Section 9.3.  Compliance Certificate.
		

		
			At the time the financial statements are furnished pursuant to Sections 9.1. and 9.2., a certificate substantially in the form of Exhibit K (a “Compliance Certificate”) executed on behalf of the Borrower by the chief financial officer or other corporate officer of the Borrower (a) setting forth as of the end of such quarterly accounting period or fiscal year, as the case may be, the calculations required to establish whether the Borrower was in compliance with the covenants contained in Section 10.1.; and (b) stating that no Default or Event of Default exists, or, if such is not the case, specifying such Default or Event of Default and its nature, when it occurred and the steps being taken by the Borrower with respect to such event, condition or failure.
		

		
			 
		

		
			Section 9.4.  Other Information.
		

		
			(a)Credit Rating.  Prompt notice to the Agent of any change in the Borrower’s Credit Rating;
		

		
			 
		

		
			(b)Securities Filings.  Within 5 Business Days of the filing thereof, copies of all reports on Forms 10‐K, 10‐Q and 8‐K (or their equivalents) which the Borrower, any other Loan Party or any other Subsidiary shall file with the SEC or any national securities exchange;
		

		
			 
		

		
			(c)Accountants’ Reports. Promptly upon receipt thereof, copies of all reports, if any, submitted to the Borrower or its Board of Trustees by its independent public accountants including, without limitation, any management report;
		

		
			 
		

		
			(d)Reports to Shareholders.  Promptly upon the mailing thereof to the shareholders of the Borrower generally, copies of all financial statements, reports and proxy statements so mailed;
		

		
			 
		

		
			(e)[Intentionally omitted].
		

		
			 
		

		
			(f)[Intentionally omitted].
		

		
			 
		

		
			(g)ERISA.  If and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal 
		

		 

		

			 

		

		

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		Revenue Code, a copy of such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement which has resulted or could result in the imposition of a Lien or the posting of a bond or other security, a certificate of the controller of the Borrower setting forth details as to such occurrence and action, if any, which the Borrower or applicable member of the ERISA Group is required or proposes to take;
		

		
			 
		

		
			(h)Governmental Actions.  To the extent the Borrower or any Subsidiary is aware of the same, prompt notice of the commencement of any proceeding or investigation by or before any Governmental Authority and any action or proceeding in any court or other tribunal or before any arbitrator against or in any other way relating adversely to, or adversely affecting, the Borrower or any Subsidiary or any of their respective properties, assets or businesses which, if determined or resolved adversely to such Person, could reasonably be expected to have a Material Adverse Effect, and prompt notice of the receipt of notice that any United States income tax returns of the Borrower or any of its Subsidiaries are being audited;
		

		
			 
		

		
			(i)Changes in Financial Condition, Etc.  Prompt notice of any change in the business, assets, liabilities, financial condition, results of operations or business prospects of the Borrower or any Subsidiary which in either event has had or could reasonably be expected to have a Material Adverse Effect;
		

		
			 
		

		
			(j)Defaults.  Prompt notice of the occurrence of any Default or Event of Default or any event which constitutes or which with the passage of time, the giving of notice, or otherwise, would constitute a default or event of default by the Borrower, any other Loan Party or any other Subsidiary under any Material Contract to which any such Person is a party or by which any such Person or any of its respective properties may be bound;
		

		
			 
		

		
			(k)Judgments, Etc.  Prompt notice of any order, judgment or decree in excess of $50,000,000 having been entered against the Borrower, any other Loan Party or any other Subsidiary or any of their respective properties or assets;
		

		
			 
		

		
			(l)Ownership Share Calculation.  Promptly upon the request of the Agent, evidence of the Borrower’s calculation of the Ownership Share with respect to a Subsidiary or an Unconsolidated Affiliate, such evidence to be in form and detail satisfactory to the Agent; 
		

		
			 
		

		
			(m)Other Information.  From time to time and promptly upon each request, such data, certificates, reports, statements, opinions of counsel, documents or further information regarding any Property or the business, assets, liabilities, financial condition, results of operations or business prospects of the Borrower or any of its Subsidiaries as the Agent or any Lender may request and which is reasonably available to the Borrower or any such Subsidiary.
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Article X. Negative Covenants
		

		
			For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required pursuant to Section 13.6., all of the Lenders) shall otherwise consent in the manner set forth in Section 13.6., the Borrower shall comply with the following covenants:
		

		
			 
		

		
			Section 10.1.  Financial Covenants.
		

		
			(a)Ratio of Total Indebtedness to Gross Asset Value.  The Borrower shall not permit the ratio of (i) Total Indebtedness of the Borrower and its Subsidiaries determined on a consolidated basis to (ii) Gross Asset Value, at the end of any fiscal quarter, to exceed 0.60 to 1.00 at any time.
		

		
			 
		

		
			(b)Ratio of Secured Indebtedness to Gross Asset Value.  The Borrower shall not permit the ratio of (i) Secured Indebtedness of the Borrower and its Subsidiaries on a consolidated basis to (ii) Gross Asset Value of the Borrower and its Subsidiaries to exceed 0.40 to 1:00 at any time.
		

		
			 
		

		
			(c)Ratio of Unencumbered Asset Value to Unsecured Indebtedness.  The Borrower shall not permit the ratio of (i) Unencumbered Asset Value to (ii)  Unsecured Indebtedness of the Borrower and its Subsidiaries on a consolidated basis to be less than 1.50 to 1:00 at any time.
		

		
			 
		

		
			(d)Ratio of Adjusted EBITDA to Fixed Charges.  The Borrower shall not permit the ratio of (i) Adjusted EBITDA of the Borrower and its Subsidiaries determined on a consolidated basis for the four fiscal‐quarter period most recently ended to (ii) Fixed Charges of the Borrower and its Subsidiaries determined on a consolidated basis for such four fiscal‐quarter period, to be less than 1.5 to 1.0 at the end of each fiscal quarter.
		

		
			 
		

		
			(e)[Intentionally Omitted]
		

		
			 
		

		
			(f)[Intentionally Omitted].
		

		
			 
		

		
			(g)[Intentionally Omitted].
		

		
			 
		

		
			(h)[Intentionally Omitted].
		

		
			 
		

		
			(i)[Intentionally Omitted]. 
		

		
			 
		

		
			 (j)Limitations on Certain Investments.  
		

		
			 
		

		
			(i)The Borrower shall not, and shall not permit any Subsidiary to, make an Investment in or otherwise own the following items in clauses (A) through (D) which would cause the aggregate value of such holdings of such Persons to exceed 35.0% of Gross Asset Value at any time: 
		

		
			 
		

		
			(A)unimproved real estate, calculated on the basis of the lower of cost or market value (a Property that is a Development 
		

		 

		

			 

		

		

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		Property shall not be considered to be unimproved real estate for purposes of this clause);
		

		
			 
		

		
			(B)(x) Equity Interests in Persons (other than Subsidiaries, Unconsolidated Affiliates and Persons that are REITs), calculated on the basis of the lower of cost or market, and (y) Indebtedness secured by Mortgages in favor of the Borrower or any Subsidiary, based on book value and determined on a consolidated basis; 
		

		
			 
		

		
			(C)other commercial real estate not developed for use as storage facilities; and
		

		
			 
		

		
			(D)Total Budgeted Cost with respect to all Development Properties of the Borrower, its Subsidiaries and all of the Borrower’s Unconsolidated Affiliates.  For purposes of this subsection, the Total Budgeted Cost with respect to any Development Property owned by an Unconsolidated Affiliate of the Borrower shall equal the greater of (i) the product of (x) the Borrower’s Ownership Share in such Unconsolidated Affiliate and (y) the Total Budgeted Cost for such Development Property or (ii) the recourse obligations of the Borrower and its Subsidiaries relating to the Indebtedness of such Unconsolidated Affiliate.
		

		
			 
		

		
			(ii)The Borrower shall not, and shall not permit any Subsidiary to, make Investments in Unconsolidated Affiliates, such that the aggregate value of such Investments exceeds 50.0% of Gross Asset Value, with the “value” of any such Investment in an Unconsolidated Affiliate to be determined in accordance with GAAP.
		

		
			
		

		
			Section 10.2.  Indebtedness.
		

		
			The Borrower will not, and will not permit any other Loan Party or any other Subsidiary to, incur, assume or otherwise become obligated in respect of any Indebtedness after the Agreement Date if immediately after incurring, assuming or otherwise becoming obligated in respect of such Indebtedness, a Default or Event of Default would result therefrom, including without limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 10.1. 
		

		
			 
		

		
			Section 10.3.  [Intentionally Omitted].
		

		
			Section 10.4.  [Intentionally Omitted].
		

		
			Section 10.5.  Merger, Consolidation, Sales of Assets, Acquisitions and Other Arrangements.
		

		
			The Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, (a) enter into any transaction of merger or consolidation; (b) liquidate, wind‐up or dissolve itself (or suffer any liquidation or dissolution); (c) convey, sell, lease, sublease, transfer or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part 
		

		 

		

			 

		

		

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		of its business or assets, or the capital stock of or other Equity Interests in any of its Subsidiaries, whether now owned or hereafter acquired; or (d) acquire (whether by purchase, acquisition of Equity Interests of a Person, or as a result of a merger or consolidation) a Substantial Amount of the assets of, or make an Investment of a Substantial Amount in, any other Person; provided, however, that:
		

		
			 
		

		
			(i) the Borrower and its Subsidiaries may lease and sublease its respective assets, as lessor or sublessor (as the case may be), in the ordinary course of their business;
		

		
			 
		

		
			(ii)any of the actions described in the immediately preceding clauses (a) through (c) may be taken with respect to any Subsidiary or any other Loan Party (other than the Borrower) so long as immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence; notwithstanding the foregoing, any such Loan Party (other than the Borrower) may enter into a transaction of merger pursuant to which such Loan Party is not the survivor of such merger only if the Borrower shall have given the Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification to the effect that immediately after and after giving effect to such action, no Default or Event of Default is or would be in existence; and
		

		
			 
		

		
			(iii)the Borrower, any other Loan Party and any other Subsidiary may, directly or indirectly, (A) acquire (whether by purchase, acquisition of Equity Interests of a Person, or as a result of a merger or consolidation) a Substantial Amount of the assets of, or make an Investment of a Substantial Amount in, any other Person and (B) sell, lease or otherwise transfer, whether by one or a series of transactions, a Substantial Amount of assets (including capital stock or other securities of Subsidiaries) to any other Person, so long as, in each case, (1) immediately prior thereto, and immediately thereafter and after giving effect thereto, no Default or Event of Default is or would be in existence; and (2) in the case of a consolidation or merger involving the Borrower or a Loan Party which owns an Eligible Property, such Person shall be the survivor thereof.
		

		
			 
		

		
			Section 10.6.  [Intentionally Deleted].
		

		
			Section 10.7.  Fiscal Year.
		

		
			The Borrower shall not, and shall not permit any other Loan Party or any other Subsidiary to, change its fiscal year from that in effect as of the Agreement Date.
		

		
			 
		

		
			Section 10.8.  Modifications of Organizational Documents.    
		

		
			The Borrower shall not, and shall not permit any other Loan Party or other Subsidiary to, amend, supplement, restate or otherwise modify its articles of incorporation, by-laws, partnership agreement or other similar organizational document if such amendment, supplement, restatement or other modification could have a Material Adverse Effect.  
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 10.9.  [Intentionally Omitted].    
		

		
			 
		

		
			Article XI. Default
		

		
			Section 11.1.  Events of Default.
		

		
			Each of the following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or pursuant to any judgment or order of any Governmental Authority:
		

		
			 
		

		
			(a)Default in Payment.  The Borrower shall fail to pay when due under this Agreement or any other Loan Document (whether upon demand, at maturity, by reason of acceleration or otherwise) (i) the principal of any Loan or any Reimbursement Obligation or (ii) any interest on any of the Loans, or any of the other payment Obligations owing by the Borrower under this Agreement or any other Loan Document, or any other Loan Party shall fail to pay when due any payment obligation owing by such Loan Party under any Loan Document to which it is a party, and solely in the case of this clause (ii) such failure shall continue for a period of 5 Business Days.
		

		
			 
		

		
			(b)Default in Performance. The Borrower or any other Loan Party shall fail to perform or observe any term, covenant, condition or agreement contained (i) in Section 10.1. or (ii) elsewhere in this Agreement or any other Loan Document to which it is a party and not otherwise mentioned in this Section and solely in the case of this clause (ii) such failure shall continue for a period of 30 calendar days after the earlier of (x) the date upon which the Borrower obtains knowledge of such failure or (y) the date upon which the Borrower has received written notice of such failure from the Agent; provided, however, if such violation is capable of cure but cannot be cured within such 30-day period and such Loan Party in good faith commenced to cure such failure within such 30-day period and continues diligently to prosecute such cure, no Event of Default shall be deemed to have occurred unless such failure has not been cured within 30 calendar days after the last day of the initial 30-day period.
		

		
			 
		

		
			(c)Misrepresentations.  Any written statement, representation or warranty made or deemed made by or on behalf of the Borrower or any other Loan Party under this Agreement or under any other Loan Document, or any amendment hereto or thereto, or in any other writing or statement at any time furnished by, or at the direction of, the Borrower or any other Loan Party to the Agent, any Issuing Bank or any Lender, shall at any time prove to have been incorrect or misleading in any material respect when furnished or made.
		

		
			 
		

		
			(d)Indebtedness Cross‐Default.
		

		
			 
		

		
			(i)The Borrower or any Subsidiary shall fail to pay when due and payable the principal of, or interest on, any Recourse Indebtedness (other than the Loans) having an aggregate outstanding principal amount of $100,000,000 or more (“Material Indebtedness”) and such failure shall continue beyond any applicable cure periods; or
		

		
			 
		

		

		

		 

		

			 

		

		

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		(ii)(x) The maturity of any Material Indebtedness shall have been accelerated in accordance with the provisions of any indenture, contract or instrument evidencing, providing for the creation of or otherwise concerning such Material Indebtedness or (y) any Material Indebtedness shall have been required to be prepaid or repurchased prior to the stated maturity thereof; or
		

		
			 
		

		
			(iii)Any other event shall have occurred and be continuing (including the expiration of any applicable cure periods) which permits any holder or holders of any Recourse Indebtedness (other than the Loans) having an aggregate outstanding principal amount of $100,000,000 or more (“Other Material Indebtedness”), any trustee or agent acting on behalf of such holder or holders or any other Person, to accelerate the maturity of Other Material Indebtedness or require any Other Material Indebtedness to be prepaid or repurchased prior to its stated maturity.
		

		
			 
		

		
			(e)Voluntary Bankruptcy Proceeding.  The Borrower, any other Loan Party or any other Material Subsidiary shall:  (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended or other federal bankruptcy laws (as now or hereafter in effect); (ii) file a petition seeking to take advantage of any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding‐up, or composition or adjustment of debts; (iii) consent to, or fail to contest in a timely and appropriate manner, any petition filed against it in an involuntary case under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action described in the immediately following subsection; (iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or foreign; (v) admit in writing its inability to pay its debts as they become due; (vi) make a general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to creditors under any Applicable Law; or (viii) take any corporate or partnership action for the purpose of effecting any of the foregoing.
		

		
			 
		

		
			(f)Involuntary Bankruptcy Proceeding.  A case or other proceeding shall be commenced against the Borrower, any other Loan Party or any other Material Subsidiary in any court of competent jurisdiction seeking:  (i) relief under the Bankruptcy Code of 1978, as amended or other federal bankruptcy laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding‐up, or composition or adjustment of debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such Person, or of all or any substantial part of the assets, domestic or foreign, of such Person, and in the case of either clause (i) or (ii) such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive calendar days, or an order granting the relief requested in such case or proceeding (including, but not limited to, an order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be entered.
		

		
			 
		

		
			(g)Revocation of Loan Documents.  The Borrower or any other Loan Party shall (or shall attempt to) disavow, revoke or terminate any Loan Document to which it is a party or shall otherwise challenge or contest in any action, suit or proceeding in any court or before any Governmental Authority the validity or enforceability of any Loan Document.
		

		

		

		 

		

			 

		

		

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			(h)Judgment.   A judgment or order for the payment of money shall be entered against the Borrower or any Subsidiary, by any court or other tribunal and (i) such judgment or order shall continue for a period of 30 days without being paid stayed or dismissed through appropriate appellate proceedings and (ii) either (A) the amount for which insurance has not been acknowledged in writing by the applicable insurance carrier (or the amount as to which the insurer has denied liability) exceeds, individually or together with all other such judgments or orders entered against the Borrower and its Subsidiaries, $100,000,000 or (B) such judgment or order could reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			(i)Attachment.  A warrant, writ of attachment, execution or similar process shall be issued against any property of the Borrower or any Subsidiary, which exceeds, individually or together with all other such warrants, writs, executions and processes, $100,000,000 in amount and such warrant, writ, execution or process shall not be paid, discharged, vacated, stayed or bonded for a period of 30 days.
		

		
			 
		

		
			(j)ERISA.  Any member of the ERISA Group shall fail to pay when due an amount or amounts aggregating in excess of $2,500,000 which it shall have become liable to pay under Title IV of ERISA; or notice of intent to terminate a Material Plan shall be filed under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer any Material Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or more members of the ERISA Group to incur a current payment obligation in excess of $2,500,000.
		

		
			 
		

		
			(k)Loan Documents.  An Event of Default (as defined therein) shall occur under any of the other Loan Documents;
		

		
			 
		

		
			(l)Change of Control.  A Change of Control shall occur.
		

		
			 
		

		
			Section 11.2.  Remedies Upon Event of Default.
		

		
			Upon the occurrence of an Event of Default the following provisions shall apply:
		

		
			 
		

		
			(a)Acceleration; Termination of Facilities.
		

		
			 
		

		
			(i)Automatic.  Upon the occurrence of an Event of Default specified in Sections 11.1.(e) or 11.1.(f), (1)(A) the principal of, and all accrued interest on, the Loans and the Notes at the time outstanding, (B) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such Event of Default and (C) all of the other Obligations of the Borrower, including, but not limited to, the other amounts owed to the Lenders, the Issuing Banks and the Agent under this Agreement, the Notes or any of the other Loan Documents shall become immediately and 
		

		 

		

			 

		

		

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		automatically due and payable by the Borrower without presentment, demand, protest, or other notice of any kind, all of which are expressly waived by the Borrower and (2) the Commitments and the Swingline Commitment, the obligation of the Lenders to make Loans hereunder, and the obligation of the Issuing Banks to issue Letters of Credit hereunder, shall all immediately and automatically terminate.
		

		
			 
		

		
			(ii)Optional.  If any other Event of Default shall exist, the Agent may, and at the direction of the Requisite Lenders shall:  (1) declare (A) the principal of, and accrued interest on, the Loans and the Notes at the time outstanding, (B) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such Event of Default and (C) all of the other Obligations, including, but not limited to, the other amounts owed to the Lenders, the Issuing Banks and the Agent under this Agreement, the Notes or any of the other Loan Documents to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower and (2) terminate the Commitments and the obligation of the Lenders to make Loans hereunder and the obligation of the Issuing Banks to issue Letters of Credit hereunder.  If the Agent has exercised any of the rights provided under the preceding sentence, the Swingline Lender shall:  (x) declare the principal of, and accrued interest on, the Swingline Loans and the Swingline Notes at the time outstanding, and all of the other Obligations owing to the Swingline Lender, to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the Borrower and (y) terminate the Swingline Commitment and the obligation of the Swingline Lender to make Swingline Loans.
		

		
			 
		

		
			(b)Loan Documents.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise any and all of its rights under any and all of the other Loan Documents.
		

		
			 
		

		
			(c)Applicable Law.  The Requisite Lenders may direct the Agent to, and the Agent if so directed shall, exercise all other rights and remedies it may have under any Applicable Law.
		

		
			 
		

		
			(d)Appointment of Receiver.  To the extent permitted by Applicable Law, the Agent and the Lenders shall be entitled to the appointment of a receiver for the assets and properties of the Borrower and its Subsidiaries, without notice of any kind whatsoever and without regard to the adequacy of any security for the Obligations or the solvency of any party bound for its payment, to take possession of all or any portion of the of the business operations of the Borrower and its Subsidiaries and to exercise such power as the court shall confer upon such receiver.
		

		
			 
		

		
			Section 11.3.  Remedies Upon Default.
		

		
			Upon the occurrence of a Default specified in Sections 11.1.(e) or 11.1.(f), the Commitments and the obligation of the Issuing Banks to issue Letters of Credit shall immediately and automatically terminate.  
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 11.4.  Marshaling; Payments Set Aside.
		

		
			Neither the Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Loan Party or any other party or against or in payment of any or all of the Obligations.  To the extent that any Loan Party makes a payment or payments to the Agent, any Issuing Bank and/or any Lender, or the Agent, any Issuing Bank and/or any Lender enforce their security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such recovery, the Obligations or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.
		

		
			 
		

		
			Section 11.5.  Allocation of Proceeds.
		

		
			If an Event of Default exists, all payments received by the Agent under any of the Loan Documents, in respect of any principal of or interest on the Obligations or any other amounts payable by the Borrower hereunder or thereunder, shall be applied in the following order and priority:
		

		
			 
		

		
			(a)payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees, payable to the Agent in its capacity as such, each Issuing Bank in its capacity as such and the Swingline Lender in its capacity as such, ratably among the Agent, the Issuing Banks and the Swingline Lender in proportion to the respective amounts described in this clause (a) payable to them;
		

		
			 
		

		
			(b)payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders under the Loan Documents, including attorney fees, ratably among the Lenders, in proportion to the respective amounts described in this clause (b) payable to them;
		

		
			 
		

		
			(c)payment of that portion of the Obligations constituting accrued and unpaid interest on the Swingline Loans; 
		

		
			 
		

		
			(d)payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and Reimbursement Obligations, ratably among the Lenders and the Issuing Banks in proportion to the respective amounts described in this clause (d) payable to them;
		

		
			 
		

		
			(e)payment of principal on Swingline Loans;
		

		
			 
		

		
			(f)payments of principal of all other Loans and of all Reimbursement Obligations, ratably among the Lenders and the Issuing Banks in proportion to the respective amounts described in this clause (f) payable to them; provided, however, to the extent that any amounts available for distribution pursuant to this clause are attributable 
		

		 

		

			 

		

		

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		to the issued but undrawn amount of an outstanding Letter of Credit, such amounts shall be paid to the Agent for deposit into the Letter of Credit Collateral Account; 
		

		
			 
		

		
			(g)payments of all other amounts due under any of the Loan Documents, if any, to be applied for the ratable benefit of the Lenders and Issuing Banks, as applicable; and
		

		
			 
		

		
			(h)any amount remaining after application as provided above, shall be paid to the Borrower or whomever else may be legally entitled thereto.
		

		
			 
		

		
			Section 11.6.  Letter of Credit Collateral Account.
		

		
			(a)As collateral security for the prompt payment in full when due of all Letter of Credit Liabilities, the Borrower hereby pledges and grants to the Agent, for the benefit of the Issuing Banks and the Lenders as provided herein, a security interest in all of its right, title and interest in and to the Letter of Credit Collateral Account and the balances from time to time in the Letter of Credit Collateral Account (including the investments and reinvestments therein provided for below).  The balances from time to time in the Letter of Credit Collateral Account shall not constitute payment of any Letter of Credit Liabilities until applied by the Agent as provided herein.  Anything in this Agreement to the contrary notwithstanding, funds held in the Letter of Credit Collateral Account shall be subject to withdrawal only as provided in this Section and in Section 2.16.
		

		
			 
		

		
			(b)Amounts on deposit in the Letter of Credit Collateral Account shall be invested and reinvested by the Agent in such Cash Equivalents as the Agent shall determine in its sole discretion.  All such investments and reinvestments shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit of the Issuing Banks and the Lenders,  provided, that all earnings on such investments will be credited to and retained in the Letter of Credit Collateral Account.  The Agent shall exercise reasonable care in the custody and preservation of any funds held in the Letter of Credit Collateral Account and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the Agent accords other funds deposited with the Agent, it being understood that the Agent shall not have any responsibility for taking any necessary steps to preserve rights against any parties with respect to any funds held in the Letter of Credit Collateral Account.
		

		
			 
		

		
			(c)If an Event of Default exists, the Agent may (and, if instructed by the Requisite Lenders, shall) in its (or their) discretion at any time and from time to time elect to liquidate any such investments and reinvestments and credit the proceeds thereof to the Letter of Credit Collateral Account and apply or cause to be applied such proceeds and any other balances in the Letter of Credit Collateral Account to reimburse the applicable Issuing Bank for the payment made by such Issuing bank or otherwise to the payment of any of the Letter of Credit Liabilities due and payable.
		

		
			 
		

		
			(d)So long as no Default or Event of Default exists, the Agent shall, from time to time, at the request of the Borrower, deliver to the Borrower, against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Letter of Credit Collateral Account as exceed the aggregate amount of Letter of Credit Liabilities at such time.  
		

		 

		

			 

		

		

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		When all of the Obligations shall have been indefeasibly paid in full and no Letters of Credit remain outstanding, the Agent shall deliver to the Borrower, against receipt but without any recourse, warranty or representation whatsoever, the balances remaining in the Letter of Credit Collateral Account.
		

		
			 
		

		
			(e)The Borrower shall pay to the Agent from time to time such fees as the Agent normally charges for similar services in connection with the Agent’s administration of the Letter of Credit Collateral Account and investments and reinvestments of funds therein.
		

		
			 
		

		
			Section 11.7.  Performance by Agent.
		

		
			If the Borrower shall fail to perform any covenant, duty or agreement contained in any of the Loan Documents, the Agent may perform or attempt to perform such covenant, duty or agreement on behalf of the Borrower after the expiration of any cure or grace periods set forth herein.  In such event, the Borrower shall, at the request of the Agent, promptly pay any amount reasonably expended by the Agent in such performance or attempted performance to the Agent, together with interest thereon at the applicable Post‐Default Rate from the date of such expenditure until paid.  Notwithstanding the foregoing, neither the Agent nor any Lender shall have any liability or responsibility whatsoever for the performance of any obligation of the Borrower under this Agreement or any other Loan Document.
		

		
			 
		

		
			Section 11.8.  Rights Cumulative.
		

		
			The rights and remedies of the Agent, the Issuing Banks and the Lenders under this Agreement and each of the other Loan Documents shall be cumulative and not exclusive of any rights or remedies which any of them may otherwise have under Applicable Law.  In exercising their respective rights and remedies the Agent, the Issuing Banks and the Lenders may be selective and no failure or delay by the Agent, any Issuing Bank or any of the Lenders in exercising any right shall operate as a waiver of it, nor shall any single or partial exercise of any power or right preclude its other or further exercise or the exercise of any other power or right.
		

		
			 
		

		
			Article XII. The Agent
		

		
			Section 12.1.  Authorization and Action.
		

		
			Each Lender and Issuing Bank hereby appoints and authorizes the Agent to take such action as contractual representative on such Lender’s behalf and to exercise such powers under this Agreement and the other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. Not in limitation of the foregoing, each and Issuing Bank  Lender authorizes and directs the Agent to enter into the Loan Documents for the benefit of the Lenders.  Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by the Requisite Lenders in accordance with the provisions of this Agreement or the Loan Documents, and the exercise by the Requisite Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Lenders.  Nothing herein shall be construed to deem the Agent a trustee or fiduciary for any Issuing Bank or any Lender nor to impose on the Agent duties or obligations other than those expressly provided for 
		

		 

		

			 

		

		

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		herein.  At the request of a Lender, the Agent will forward to such Lender copies or, where appropriate, originals of the documents delivered to the Agent pursuant to this Agreement or the other Loan Documents.  The Agent will also furnish to any Lender, upon the request of such Lender, a copy of any certificate or notice furnished to the Agent by the Borrower, any Loan Party or any other Affiliate of the Borrower, pursuant to this Agreement or any other Loan Document not already delivered to such Lender pursuant to the terms of this Agreement or any such other Loan Document.  As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of any of the Obligations), the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders (or all of the Lenders if explicitly required under any other provision of this Agreement), and such instructions shall be binding upon all Lenders and all holders of any of the Obligations; provided, however, that, notwithstanding anything in this Agreement to the contrary, the Agent shall not be required to take any action which exposes the Agent to personal liability or which is contrary to this Agreement or any other Loan Document or Applicable Law.  Not in limitation of the foregoing, the Agent shall not exercise any right or remedy it or the Lenders may have under any Loan Document upon the occurrence of a Default or an Event of Default unless the Requisite Lenders have so directed the Agent to exercise such right or remedy.
		

		
			 
		

		
			Section 12.2.  Agent’s Reliance, Etc.
		

		
			Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither the Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a nonappealable judgment.  Without limiting the generality of the foregoing, the Agent: (a) may treat the payee of any Note as the holder thereof until the Agent receives written notice of the assignment or transfer thereof signed by such payee and in form satisfactory to the Agent; (b) may consult with legal counsel (including its own counsel or counsel for the Borrower or any other Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender or any other Person and shall not be responsible to any Lender or any other Person for any statements, warranties or representations made by any Person in or in connection with this Agreement or any other Loan Document; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any of this Agreement or any other Loan Document or the satisfaction of any conditions precedent under this Agreement or any Loan Document on the part of the Borrower or other Persons or inspect the property, books or records of the Borrower or any other Person; (e) shall not be responsible to any Lender or any Issuing Bank for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document, or any other instrument or document furnished pursuant thereto; and (f) shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telephone or telecopy) believed by it to be genuine and signed, sent or given by the proper party or parties.
		

		
			 
		

		
			
		

		 

		

			 

		

		

			-  83  -

		

 

		Section 12.3.  Notice of Defaults.
		

		
			The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or Event of Default unless the Agent has received notice from a Lender, an Issuing Bank or the Borrower referring to this Agreement, describing with reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default.”  If any Lender (excluding the Lender which is also serving as the Agent) becomes aware of any Default or Event of Default, it shall promptly send to the Agent such a “notice of default.”  Further, if the Agent receives such a “notice of default”, the Agent shall give prompt notice thereof to the Lenders.
		

		
			 
		

		
			Section 12.4.  Wells Fargo as Lender.
		

		
			Wells Fargo, as a “Lender”, shall have the same rights and powers under this Agreement and any other Loan Document as any other Lender and may exercise the same as though it were not the Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Wells Fargo in each case in its individual capacity.  Wells Fargo and its affiliates may each accept deposits from, maintain deposits or credit balances for, invest in, lend money to, act as trustee under indentures of, serve as financial advisor to, and generally engage in any kind of business with the Borrower, any other Loan Party or any other affiliate thereof as if it were any other bank and without any duty to account therefor to the other Lenders.  Further, the Agent and any affiliate may accept fees and other consideration from the Borrower for services in connection with this Agreement and otherwise without having to account for the same to the other Lenders.
		

		
			 
		

		
			Section 12.5.  Approvals of Lenders.
		

		
			All communications from the Agent to any Lender requesting such Lender’s determination, consent, approval or disapproval (a) shall be given in the form of a written notice to such Lender, (b) shall be accompanied by a description of the matter or issue as to which such determination, approval, consent or disapproval is requested, or shall advise such Lender where information, if any, regarding such matter or issue may be inspected, or shall otherwise describe the matter or issue to be resolved, (c) shall include, if reasonably requested by such Lender and to the extent not previously provided to such Lender, written materials and a summary of all oral information provided to the Agent by the Borrower in respect of the matter or issue to be resolved, and (d) shall include the Agent’s recommended course of action or determination in respect thereof.  Each Lender shall reply promptly, but in any event within 10 Business Days (or such lesser or greater period as may be specifically required under the express terms of the Loan Documents) of receipt of such communication.  Except as otherwise expressly provided in this Agreement, unless a Lender shall give written notice to the Agent that it specifically objects to the recommendation or determination of the Agent within the applicable time period for reply, such Lender shall be deemed to have conclusively approved of or consented to such recommendation or determination (other than in respect of any consent required under Section 13.6.(b)).
		

		
			 
		

		
			
		

		 

		

			 

		

		

			-  84  -

		

 

		Section 12.6.  Lender Credit Decision, Etc.
		

		
			Each Lender and Issuing Bank expressly acknowledges and agrees that neither the Agent nor any of its officers, directors, employees, agents, counsel, attorneys‐in‐fact or other affiliates has made any representations or warranties as to the financial condition, operations, creditworthiness, solvency or other information concerning the business or affairs of the Borrower, any other Loan Party, any Subsidiary or any other Person to such Lender or Issuing Bank and that no act by the Agent hereafter taken, including any review of the affairs of the Borrower, shall be deemed to constitute any such representation or warranty by the Agent to any Lender or Issuing Bank.  Each Lender and Issuing Bank acknowledges that it has, independently and without reliance upon the Agent, any other Lender or counsel to the Agent, or any of their respective officers, directors, employees and agents, and based on the financial statements of the Borrower, the Subsidiaries or any other Affiliate thereof, and inquiries of such Persons, its independent due diligence of the business and affairs of the Borrower, the Loan Parties, the Subsidiaries and other Persons, its review of the Loan Documents, the legal opinions required to be delivered to it hereunder, the advice of its own counsel and such other documents and information as it has deemed appropriate, made its own credit and legal analysis and decision to enter into this Agreement and the transaction contemplated hereby.  Each Lender and Issuing Bank also acknowledges that it will, independently and without reliance upon the Agent, any other Lender, any other Issuing Bank or counsel to the Agent or any of their respective officers, directors, employees and agents, and based on such review, advice, documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under the Loan Documents.  Except for notices, reports and other documents and information expressly required to be furnished to the Lenders and/or the Issuing Banks by the Agent under this Agreement or any of the other Loan Documents, the Agent shall have no duty or responsibility to provide any Lender or Issuing Bank with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of the Borrower, any other Loan Party or any other Affiliate thereof which may come into possession of the Agent or any of its officers, directors, employees, agents, attorneys‐in‐fact or other Affiliates.  Each Lender and Issuing Bank acknowledges that the Agent’s legal counsel in connection with the transactions contemplated by this Agreement is only acting as counsel to the Agent and is not acting as counsel to such Lender or Issuing Bank.
		

		
			 
		

		
			Section 12.7.  Indemnification of Agent.
		

		
			Each Lender agrees to indemnify the Agent (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) pro rata in accordance with such Lender’s respective Commitment Percentage, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against the Agent (in its capacity as Agent but not as a “Lender”) in any way relating to or arising out of the Loan Documents, any transaction contemplated hereby or thereby or any action taken or omitted by the Agent under the Loan Documents (collectively, “Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any portion of such Indemnifiable Amounts to the extent resulting from the Agent’s gross negligence or willful misconduct or if the Agent fails to follow the written direction of the Requisite Lenders unless such failure is pursuant to the advice of counsel of which the Lenders have received notice.  
		

		 

		

			 

		

		

			-  85  -

		

 

		Without limiting the generality of the foregoing, each Lender agrees to reimburse the Agent (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) promptly upon demand for its ratable share of any out‐of‐pocket expenses (including counsel fees of the counsel(s) of the Agent’s own choosing) incurred by the Agent in connection with the preparation, negotiation, execution, administration, or enforcement of, or legal advice with respect to the rights or responsibilities of the parties under, the Loan Documents, any suit or action brought by the Agent to enforce the terms of the Loan Documents and/or collect any Obligations, any “lender liability” suit or claim brought against the Agent and/or the Lenders, and any claim or suit brought against the Agent and/or the Lenders arising under any Environmental Laws.  Such out‐of‐pocket expenses (including counsel fees) shall be advanced by the Lenders on the request of the Agent notwithstanding any claim or assertion that the Agent is not entitled to indemnification hereunder upon receipt of an undertaking by the Agent that the Agent will reimburse the Lenders if it is actually and finally determined by a court of competent jurisdiction that the Agent is not so entitled to indemnification.  The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder or under the other Loan Documents and the termination of this Agreement.  If the Borrower shall reimburse the Agent for any Indemnifiable Amount following payment by any Lender to the Agent in respect of such Indemnifiable Amount pursuant to this Section, the Agent shall share such reimbursement on a ratable basis with each Lender making any such payment.
		

		
			 
		

		
			Section 12.8.  Successor Agent.
		

		
			The Agent may resign at any time as Agent under the Loan Documents by giving written notice thereof to the Lenders and the Borrower.  In the event of a material breach of its duties hereunder, the Agent may be removed as Agent under the Loan Documents at any time by all Lenders (other than the Lender then acting as Agent) and the Borrower upon 30‐day’s prior notice.  Upon any such resignation or removal, the Requisite Lenders (which, in the case of the removal of the Agent as provided in the immediately preceding sentence, shall be determined without regard to the Commitment of the Lender then acting as Agent) shall have the right to appoint a successor Agent which appointment shall, provided no Default or Event of Default exists, be subject to the Borrower’s approval, which approval shall not be unreasonably withheld or delayed (except that the Borrower shall, in all events, be deemed to have approved each Lender as a successor Agent).  If no successor Agent shall have been so appointed in accordance with the immediately preceding sentence, and shall have accepted such appointment, within 30 days after the resigning Agent’s giving of notice of resignation or the Lenders’ removal of the resigning Agent, then the resigning or removed Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a Lender, if any Lender shall be willing to serve, and otherwise shall be a commercial bank having total combined assets of at least $10,000,000,000.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Loan Documents.  After any Agent’s resignation or removal hereunder as Agent, the provisions of this Article XII. shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under the Loan Documents.
		

		
			 
		

		
			
		

		 

		

			 

		

		

			-  86  -

		

 

		Section 12.9.  Titled Agents.
		

		
			Each of the Joint Lead Arrangers, Joint Bookrunners, the Syndication Agent and any other Person awarded a similar title (each a “Titled Agent”) in each such respective capacity, assumes no responsibility or obligation hereunder, including, without limitation, for servicing, enforcement or collection of any of the Loans, nor any duties as an agent hereunder for the Lenders.  The titles given to the Titled Agents are solely honorific and imply no fiduciary responsibility on the part of the Titled Agents to the Agent, any Lender, the Borrower or any other Loan Party and the use of such titles does not impose on the Titled Agents any duties or obligations greater than those of any other Lender or entitle the Titled Agents to any rights other than those to which any other Lender is entitled.
		

		
			 
		

		
			Section 12.10.  Intentionally Omitted.
		

		
			Article XIII. Miscellaneous
		

		
			Section 13.1.  Notices.
		

		
			Unless otherwise provided herein, communications provided for hereunder shall be in writing and shall be mailed, telecopied or delivered as follows:
		

		
			 
		

		
			If to the Borrower:
		

		
			 
		

		
			Public Storage
		

		
			701 Western Avenue
		

		
			Glendale, California  91201-2349
		

		
			Attention:  Chief Financial Officer
		

		
			Telecopy Number:(818) 244-9267
		

		
			Telephone Number:(818) 244-8080
		

		
			 
		

		
			with a copy to:  
		

		
			 
		

		
			Public Storage
		

		
			701 Western Avenue
		

		
			Glendale, California  91201-2349
		

		
			Attention:  Chief Legal Officer
		

		
			Telecopy Number:(818) 548-9288
		

		
			Telephone Number:(818) 244-8080
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			-  87  -

		

 

		If to the Agent:
		

		
			 
		

		
			Wells Fargo Bank, National Association
		

		
			401 B Street, Suite 1100
		

		
			San Diego, California  92101
		

		
			Attention: Dale Northup
		

		
			Telecopy Number:(619) 699-3105
		

		
			Telephone Number:(619) 699-3025
		

		
			 
		

		
			If to a Lender:
		

		
			 
		

		
			To such Lender’s address or telecopy number, as applicable, set forth in the applicable Administrative Questionnaire or Assignment and Acceptance Agreement.
		

		
			 
		

		
			If to Wells Fargo, in its capacity as Issuing Bank:
		

		
			 
		

		
			Wells Fargo Bank, National Association
		

		
			401 B Street, Suite 1100
		

		
			San Diego, California  92101
		

		
			Attention: Dale Northup
		

		
			Telecopy Number:(619) 699-3105
		

		
			Telephone Number:(619) 699-3025
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			-  88  -

		

 

		If to Bank of America, N.A., in its capacity as Issuing Bank:
		

		
			 
		

		
			Bank of America, N.A.
		

		
			1 Fleet Way
		

		
			Scranton, Pennsylvania  18507
		

		
			 
		

		
			Letter of Credit Coordinators:
		

		
			 
		

		
			John Yzeik
		

		
			Telecopy Number:  1-800-755-8743
		

		
			Telephone Number: 570-496-9588
		

		
			 
		

		
			Jennifer Whitlock
		

		
			Telecopy Number:  1-800-755-8743
		

		
			Telephone Number: 570-496-9586
		

		
			 
		

		
			Charles Herron (Late Shift Coordinator from 11:30 a.m. – 8:00 p.m. Eastern)
		

		
			Telecopy Number:  1-800-755-8743
		

		
			Telephone Number: 570-496-9564
		

		
			 
		

		
			or, as to each party at such other address as shall be designated by such party in a written notice to the other parties delivered in compliance with this Section.  All such notices and other communications shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when delivered.  Notwithstanding the immediately preceding sentence, all notices or communications to the Agent, any Issuing Bank or any Lender under Article II. shall be effective only when actually received.  None of the Agent, any Issuing Bank or any Lender shall incur any liability to the Borrower (nor shall the Agent incur any liability to the Lenders or the Issuing Banks) for acting upon any telephonic notice referred to in this Agreement which the Agent, such Issuing Bank or such Lender, as the case may be, believes in good faith to have been given by a Person authorized to deliver such notice or for otherwise acting in good faith hereunder.
		

		
			 
		

		
			Section 13.2.  Expenses.
		

		
			The Borrower agrees (a) to pay or reimburse the Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with the preparation, negotiation, execution and delivery of, and any amendment, supplement or modification to, any of the Loan Documents (including reasonable due diligence expense and reasonable travel expenses related to closing), and the arrangement, underwriting, syndication, consummation and administration of the transactions contemplated thereby, including the reasonable fees and disbursements of counsel to the Agent (but excluding any cost of in-house counsel), (b) to pay or reimburse the Agent, the Issuing Banks and the Lenders for all their costs and expenses incurred in connection with the enforcement or preservation of any rights under the Loan Documents, including the reasonable fees and disbursements of their respective counsel (including the reasonable allocated cost of in-house counsel) and any payments in indemnification or otherwise payable by the Lenders to the Agent pursuant to the Loan Documents, (c) to pay, and indemnify and hold harmless the Agent, the Issuing Banks and the Lenders from, any and all recording and filing fees and any and all 
		

		 

		

			 

		

		

			-  89  -

		

 

		liabilities with respect to, or resulting from any failure to pay or delay in paying, documentary, stamp, excise and other similar taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of any of the Loan Documents, or consummation of any amendment, supplement or modification of, or any waiver or consent under or in respect of, any Loan Document and (d) to the extent not already covered by any of the preceding subsections, to pay the reasonable fees and disbursements of counsel to the Agent, any Issuing Bank and any Lender incurred in connection with the representation of the Agent, such Issuing Bank or such Lender in any matter relating to or arising out of any bankruptcy or other proceeding of the type described in Sections 11.1.(e) or 11.1.(f), including, without limitation (i) any motion for relief from any stay or similar order, (ii) the negotiation, preparation, execution and delivery of any document relating to the Obligations and (iii) the negotiation and preparation of any debtor‐in‐possession financing or any plan of reorganization of the Borrower or any other Loan Party, whether proposed by the Borrower, such Loan Party, the Lenders or any other Person, and whether such fees and expenses are incurred prior to, during or after the commencement of such proceeding or the confirmation or conclusion of any such proceeding.
		

		
			 
		

		
			Section 13.3.  Setoff.
		

		
			Subject to Section 3.3. and in addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, the Agent, each Issuing Bank, each Lender and each Participant is hereby authorized by the Borrower, at any time or from time to time while an Event of Default exists, without notice to the Borrower or to any other Person, any such notice being hereby expressly waived, but in the case of an Issuing Bank, a Lender or a Participant subject to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Agent, such Issuing Bank, such Lender or any affiliate of the Agent, such Issuing Bank or such Lender, to or for the credit or the account of the Borrower against and on account of any of the Obligations, irrespective of whether or not any or all of the Loans and all other Obligations have been declared to be, or have otherwise become, due and payable as permitted by Section 11.2., and although such obligations shall be contingent or unmatured.
		

		
			 
		

		
			Section 13.4.  Litigation; Jurisdiction; Other Matters; Waivers.    
		

		
			(a)[Intentionally Omitted].
		

		
			 
		

		
			(b)EACH OF THE BORROWER, THE AGENT, EACH ISSUING BANK AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT COURTS OF THE NORTHERN AND THE SOUTHERN DISTRICTS OF CALIFORNIA AND THE STATE COURTS OF CALIFORNIA SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE BORROWER, THE AGENT, ANY ISSUING BANK OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE LOANS AND LETTERS OF CREDIT, THE NOTES OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH 
		

		 

		

			 

		

		

			-  90  -

		

 

		JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.
		

		
			 
		

		
			(c)THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.
		

		
			 
		

		
			Section 13.5.  Successors and Assigns.
		

		
			(a)The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, and except as otherwise permitted under Section 10.5.(iv), the Borrower may not assign or otherwise transfer any of its rights or obligations under this Agreement or as of the other Loan Documents without the prior written consent of all Lenders (and any such assignment or other transfer to which all of the Lenders have not so consented shall be null and void).
		

		
			 
		

		
			(b)Any Lender may make, carry or transfer Loans at, to or for the account of, any of its branch offices or the office of an affiliate of such Lender except to the extent such transfer would result in increased costs to the Borrower.
		

		
			 
		

		
			(c)Any Lender may at any time grant to one or more banks or other financial institutions (each a “Participant”) participating interests in its Commitment or the Obligations owing to such Lender; provided, however, any such participating interest must be for a constant and not a varying percentage interest.  Except as otherwise provided in Section 13.3., no Participant shall have any rights or benefits under this Agreement or any other Loan Document.  In the event of any such grant by a Lender of a participating interest to a Participant, such Lender shall remain responsible for the performance of its obligations hereunder, and the Borrower, the Issuing Banks and the Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Borrower hereunder including, without limitation, the right to approve any amendment, modification or waiver of any provision of this Agreement; provided, however, such Lender may agree with the Participant that it will not, without the consent of the Participant, agree to (i) increase, or extend the term or extend the time or waive any requirement for the reduction or termination of, such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or interest on the 
		

		 

		

			 

		

		

			-  91  -

		

 

		Loans or portions thereof owing to such Lender, (iii) reduce the amount of any such payment of principal, (iv) reduce the rate at which interest is payable thereon or (v) release any Guarantor from its obligations under the Guaranty.  An assignment or other transfer which is not permitted by subsection (d) or (f) below shall be given effect for purposes of this Agreement only to the extent of a participating interest granted in accordance with this subsection (c).  The selling Lender shall notify the Agent and the Borrower of the sale of any participation hereunder and the terms thereof.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.
		

		
			 
		

		
			(d)Any Lender may with the prior written consent of the Agent (such consent not to be unreasonably withheld or delayed) and, subject to the immediately following clause (i), the Borrower assign to one or more Eligible Assignees (each an “Assignee”) all or a portion of its Commitment and its other rights and obligations under this Agreement and the Notes; provided, however, (i) so long as no Default or Event of Default shall exist, the Borrower shall have consented to such assignment (which consent, in each case, shall not be unreasonably withheld or delayed) (it being agreed that the Borrower’s withholding of consent to an assignment which would result in the Borrower having to pay amounts under Section 3.11. shall be deemed to be reasonable)); (ii) no such consent by the Borrower shall be required in the case of any assignment to another Lender or any affiliate of such Lender or another Lender; (iii) no such consent by the Agent shall be required in the case of any assignment by a Lender to any affiliate of such Lender; (iv) any partial assignment shall be in an amount at least equal to $10,000,000 and after giving effect to such assignment the assigning Lender retains a Commitment, or if the Commitments have been terminated, holds Notes having an aggregate outstanding principal balance, of at least $10,000,000; and (v) each such assignment shall be effected by means of an Assignment and Acceptance Agreement.  Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be deemed to be a Lender party to this Agreement as of the effective date of the Assignment and Acceptance Agreement and shall have all the rights and obligations of a Lender with a Commitment as set forth in such Assignment and Acceptance Agreement, and the transferor Lender shall be released from its obligations hereunder to a corresponding extent, and no further consent or action by any party shall be required.  Upon the consummation of any assignment pursuant to this subsection, the transferor Lender, the Agent and the Borrower shall make appropriate arrangements so that new Notes are issued to the Assignee and such transferor Lender, as appropriate.  In connection 
		

		 

		

			 

		

		

			-  92  -

		

 

		with any such assignment, the transferor Lender shall pay to the Agent an administrative fee for processing such assignment in the amount of $4,500.
		

		
			 
		

		
			(e)The Agent shall maintain a copy of each Assignment and Acceptance Agreement delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of each Lender from time to time (the “Register”).  The Agent shall give each Lender and the Borrower notice of the assignment by any Lender of its rights as contemplated by this Section.  The Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement and the other Loan Documents.  The Register and copies of each Assignment and Acceptance Agreement shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice to the Agent.  Upon its receipt of an Assignment and Acceptance Agreement executed by an assigning Lender, together with each Note subject to such assignment, the Agent shall, if such Assignment and Acceptance Agreement has been completed and if the Agent receives the processing and recording fee described in subsection (d) above, (i) accept such Assignment and Acceptance Agreement, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower.  
		

		
			 
		

		
			(f)[Intentionally Omitted.]
		

		
			 
		

		
			(g)In addition to the assignments and participations permitted under the foregoing provisions of this Section, any Lender may assign and pledge all or any portion of its Loans and its Notes to any Federal Reserve Bank as collateral security.  No such assignment shall release the assigning Lender from its obligations hereunder.
		

		
			 
		

		
			(h)A Lender may furnish any information concerning the Borrower, any other Loan Party or any of their respective Subsidiaries in the possession of such Lender from time to time to Assignees and Participants (including prospective Assignees and Participants) subject to compliance with Section 13.8.
		

		
			 
		

		
			(i)Anything in this Section to the contrary notwithstanding, no Lender may assign or participate any interest in any Loan held by it hereunder to the Borrower, any other Loan Party or any of their respective Affiliates or Subsidiaries.
		

		
			 
		

		
			(j)Each Lender agrees that, without the prior written consent of the Borrower and the Agent, it will not make any assignment hereunder in any manner or under any circumstances that would require registration or qualification of, or filings in respect of, any Loan or Note under the Securities Act or any other securities laws of the United States of America or of any other jurisdiction.
		

		
			 
		

		
			(k)Notwithstanding anything to the contrary contained herein, any Lender (for purposes of this subsection, a “Granting Lender”) may grant to a special purpose funding vehicle organized under the laws of the United States of America or any state thereof and affiliated or sponsored by such Granting Lender or one of its affiliates (for the purposes of this subsection, an “SPC”) the option to make, on behalf of such Granting Lender, all or a portion of the Loans 
		

		 

		

			 

		

		

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		which such Granting Lender is obligated or permitted to make (a “Funding Obligation”) hereunder, such option to be exercisable in the sole discretion of the SPC, provided, however, that
		

		
			(i)such Granting Lender’s obligations under this Agreement and the Loan Documents shall remain unchanged, including without limitation the indemnification obligations of the Granting Lender pursuant to Section 12.7. hereof;
		

		
			(ii)such Granting Lender shall remain solely responsible to the other parties hereto for the performance of all Funding Obligations;
		

		
			(iii)the Borrower, the Lenders and the Agent shall continue to deal solely and directly with such Granting Lender in connection with such Granting Lender’s rights and obligations under this Agreement, and the Agent shall continue to deal solely and directly with the Granting Lender as agent for the SPC with respect to distribution of payment of principal, interest and fees, Notices of Conversion and Continuation and all other matters;
		

		
			(iv)such Granting Lender shall retain the sole right to enforce the obligations of the Borrower relating to its Loans and its Notes and to approve any amendment, modification, or waiver of any provisions of this Agreement;
		

		
			(v)the granting of such option shall not constitute an assignment to or participation of such SPC of or in the Granting Lender’s Commitment and Obligations owing thereto;
		

		
			(vi)such SPC shall not become a Lender nor acquire any rights hereunder as a result of the granting of such option;
		

		
			(vii)such SPC shall not become obligated or committed to make Loans as a result of the granting of such option;
		

		
			(viii)if such SPC elects not to exercise such option or otherwise fails to make all or any part of any Loan, the Granting Lender shall retain its Funding Obligation and be obligated to make the entire Loan or any portion of such Loan not made by such SPC;
		

		
			(ix)Loans made by an SPC hereunder shall be deemed to satisfy the Funding Obligation and utilize the Commitment of the Granting Lender as if, and to the same extent, such Loans were made by such Granting Lender;
		

		
			(x)Each party hereto agrees that no SPC shall be liable for any indemnity or payment under this Agreement for which a Granting Lender would otherwise be liable so long as, and to the extent, such Loans were made by such Granting Lender; and
		

		
			(xi)Each party hereto agrees that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any state thereof.
		

		

		

		 

		

			 

		

		

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			Section 13.6.  Amendments.
		

		
			(a)Generally.  Except as otherwise expressly provided in this Agreement, (i) any consent or approval required or permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, (ii) any term of this Agreement or of any other Loan Document may be amended, (iii) the performance or observance by the Borrower, any other Loan Party or any other Subsidiary of any terms of this Agreement or such other Loan Document may be waived, and (iv) the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Requisite Lenders (or the Agent at the written direction of the Requisite Lenders), and, in the case of an amendment to any Loan Document, the written consent of each Loan Party which is party thereto.
		

		
			    
		

		
			(b)Additional Lender Consents.  In addition to the foregoing requirements, no amendment, waiver or consent shall:
		

		
			 
		

		
			(i)increase (or reinstate) the Commitments of a Lender or subject a Lender to any additional obligations without the written consent of such Lender;
		

		
			 
		

		
			(ii)reduce the principal of, or interest that has accrued or the rates of interest that will be charged on the outstanding principal amount of, any Loans or other Obligations without the written consent of each Lender directly affected thereby; provided, however, only the written consent of the Requisite Lenders shall be required for the waiver of interest payable at the Post-Default Rate, retraction of the imposition of interest at the Post-Default Rate and amendment of the definition of “Post-Default Rate”;
		

		
			 
		

		
			(iii)reduce the amount of any Fees payable to a Lender without the written consent of such Lender;
		

		
			 
		

		
			(iv)modify the definition of “Commitment Percentage” without the written consent of each Lender;
		

		
			 
		

		
			(v)modify the definition of “Termination Date”, otherwise postpone any date fixed for, or forgive, any payment of principal of, or interest on, any Loans or for the payment of Fees or any other Obligations owing to the Issuing Banks or the Lenders, or extend the expiration date of any Letter of Credit beyond the Termination Date, in each case, without the consent of each Issuing Bank and/or Lender directly affected thereby;
		

		
			 
		

		
			(vi)amend this Section or amend the definitions of the terms used in this Agreement or the other Loan Documents insofar as such definitions affect the substance of this Section without the written consent of each Lender;
		

		
			 
		

		
			(vii)modify the definition of the term “Requisite Lenders” or modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof without the written consent of each Lender; or
		

		

		

		 

		

			 

		

		

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			(viii)amend, or waive the Borrower’s compliance with, Section 2.18. without the written consent of each Lender.
		

		
			 
		

		
			(c)Amendment of Agent’s Duties, Etc.  No amendment, waiver or consent unless in writing and signed by the Agent, in addition to the Lenders required hereinabove to take such action, shall affect the rights or duties of the Agent under this Agreement or any of the other Loan Documents.  Any amendment, waiver or consent relating to Section 2.4. or the obligations of the Swingline Lender under this Agreement or any other Loan Document shall, in addition to the Lenders required hereinabove to take such action, require the written consent of the Swingline Lender.  Any amendment, waiver or consent relating to Section 2.3. or the obligations of the Issuing Banks under this Agreement or any other Loan Document shall, in addition to the Lenders required hereinabove to take such action, require the written consent of each Issuing Bank.    Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitments of any Defaulting Lender may not be increased, reinstated or extended without the written consent of such Defaulting Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the written consent of such Defaulting Lender.  No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon and any amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose set forth therein.  No course of dealing or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.  Any Event of Default occurring hereunder shall continue to exist until such time as such Event of Default is waived in writing in accordance with the terms of this Section, notwithstanding any attempted cure or other action by the Borrower, any other Loan Party or any other Person subsequent to the occurrence of such Event of Default.  Except as otherwise explicitly provided for herein or in any other Loan Document, no notice to or demand upon the Borrower shall entitle the Borrower to other or further notice or demand in similar or other circumstances.
		

		
			 
		

		
			(d)Technical Amendments.  Notwithstanding anything to the contrary in this Section 13.6., if the Agent and the Borrower have jointly identified an ambiguity, omission, mistake or defect in any provision of this Agreement or an inconsistency between provisions of this Agreement, the Agent and the Borrower shall be permitted to amend such provision or provisions to cure such ambiguity, omission, mistake, defect or inconsistency so long as to do so would not adversely affect the interests of the Lenders and the Issuing Banks.  Any such amendment shall become effective without any further action or consent of any of other party to this Agreement.
		

		
			 
		

		
			Section 13.7.  Nonliability of Agent and Lenders.
		

		
			The relationship between the Borrower, on the one hand, and the Lenders and the Agent, on the other hand, shall be solely that of borrower and lender.  None of the Agent, the Issuing Banks or any Lender shall have any fiduciary responsibilities to the Borrower and no provision 
		

		 

		

			 

		

		

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		in this Agreement or in any of the other Loan Documents, and no course of dealing between or among any of the parties hereto, shall be deemed to create any fiduciary duty owing by the Agent, any Issuing Bank or any Lender to any Lender, any other Issuing Bank, the Borrower, any Subsidiary or any other Loan Party.  None of the Agent, any Issuing Bank or any Lender undertakes any responsibility to the Borrower to review or inform the Borrower of any matter in connection with any phase of the Borrower’s business or operations.
		

		
			 
		

		
			Section 13.8.  Confidentiality.
		

		
			Except as otherwise provided by Applicable Law, the Agent, each Issuing Bank and each Lender shall utilize all non‐public information obtained pursuant to the requirements of this Agreement which has been identified as confidential or proprietary by the Borrower in accordance with its customary procedure for handling confidential information of this nature and in accordance with safe and sound banking practices but in any event may make disclosure: (a) to any of their respective affiliates, agents or advisors (provided any such affiliate, agent or advisor shall agree to keep such information confidential in accordance with the terms of this Section); (b) as reasonably requested by any bona fide actual or potential Assignee, Participant or other transferee in connection with the contemplated transfer of any Commitment or participations therein as permitted hereunder (provided they shall agree to keep such information confidential in accordance with the terms of this Section); (c) as required or requested by any Governmental Authority or representative thereof or pursuant to legal process or in connection with any legal proceedings; (d) to the Agent’s, such Issuing Bank’s or such Lender’s independent auditors and other professional advisors (provided they shall be notified of the confidential nature of the information); (e) if an Event of Default exists, to any other Person, in connection with the exercise by the Agent, the Issuing Banks or the Lenders of rights hereunder or under any of the other Loan Documents; (f) to the extent such information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower or any Affiliate, and (g) with the consent of the Borrower.
		

		
			 
		

		
			Section 13.9.  Indemnification.
		

		
			(a)The Borrower shall and hereby agrees to indemnify, defend and hold harmless the Agent and each Issuing Bank, any affiliate of the Agent or such Issuing Bank, and each of the Lenders and their respective affiliates, parents, directors, officers, shareholders, agents, employees and counsel (each referred to herein as an “Indemnified Party”) from and against any and all losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses of every kind and nature (including, without limitation, amounts paid in settlement, court costs and the fees and disbursements of counsel incurred in connection with any litigation, investigation, claim or proceeding or any advice rendered in connection therewith, but excluding losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses indemnification in respect of which is specifically covered by Section 3.11. or 5.1. or expressly excluded from the coverage of such Sections) incurred by an Indemnified Party in connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration, investigation or settlement, consent decree or other proceeding (the foregoing referred to herein as an “Indemnity Proceeding”) which is in any way related directly or indirectly to: (i) this Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the making of any Loans or issuance of Letters of Credit 
		

		 

		

			 

		

		

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		hereunder; (iii) any actual or proposed use by the Borrower of the proceeds of the Loans or Letters of Credit; (iv) the Agent’s, any Issuing Bank’s or any Lender’s entering into this Agreement; (v) the fact that the Agent, the Issuing Banks and the Lenders have established the credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the Agent, the Issuing Banks and the Lenders are creditors of the Borrower and have or are alleged to have information regarding the financial condition, strategic plans or business operations of the Borrower and the Subsidiaries; (vii) the fact that the Agent, the Issuing Banks and the Lenders are material creditors of the Borrower and are alleged to influence directly or indirectly the business decisions or affairs of the Borrower and the Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Agent, the Issuing Banks or the Lenders may have under this Agreement or the other Loan Documents; or (ix) any violation or non‐compliance by the Borrower or any Subsidiary of any Applicable Law (including any Environmental Law) including, but not limited to, any Indemnity Proceeding commenced by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental Authority or other Person under any Environmental Law, including any Indemnity Proceeding commenced by a Governmental Authority or other Person seeking remedial or other action to cause the Borrower or its Subsidiaries (or its respective properties) (or the Agent, the Issuing Banks and/or the Lenders as successors to the Borrower) to be in compliance with such Environmental Laws; provided,  however, that the Borrower shall not be obligated to indemnify any Indemnified Party for any acts or omissions of such Indemnified Party in connection with matters described in this clause (a) that constitute gross negligence or willful misconduct of such Indemnified Party.
		

		
			 
		

		
			(b)The Borrower’s indemnification obligations under this Section shall apply to all Indemnity Proceedings arising out of, or related to, the foregoing whether or not an Indemnified Party is a named party in such Indemnity Proceeding.  In this connection, this indemnification shall cover all costs and expenses of any Indemnified Party in connection with any deposition of any Indemnified Party or compliance with any subpoena (including any subpoena requesting the production of documents).  This indemnification shall, among other things, apply to any Indemnity Proceeding commenced by other creditors of the Borrower or any Subsidiary, any shareholder of the Borrower or any Subsidiary (whether such shareholder(s) are prosecuting such Indemnity Proceeding in their individual capacity or derivatively on behalf of the Borrower), any account debtor of the Borrower or any Subsidiary or by any Governmental Authority.
		

		
			 
		

		
			(c)This indemnification shall apply to any Indemnity Proceeding arising during the pendency of any bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary.
		

		
			 
		

		
			(d)All out‐of‐pocket fees and expenses of, and all amounts required to be paid to third‐persons by, an Indemnified Party in connection with this Agreement or any of the other Loan Documents shall be advanced by the Borrower at the request of such Indemnified Party notwithstanding any claim or assertion by the Borrower that such Indemnified Party is not entitled to indemnification hereunder upon receipt of an undertaking by such Indemnified Party that such Indemnified Party will reimburse the Borrower if it is actually and finally determined by a court of competent jurisdiction in a nonappealable judgment that such Indemnified Party is not so entitled to indemnification hereunder.
		

		
			 
		

		

		

		 

		

			 

		

		

			-  98  -

		

 

		(e)An Indemnified Party may conduct its own investigation and defense of, and may formulate its own strategy with respect to, any Indemnity Proceeding covered by this Section and, as provided above, all costs and expenses incurred by such Indemnified Party shall be reimbursed by the Borrower.  No action taken by legal counsel chosen by an Indemnified Party in investigating or defending against any such Indemnity Proceeding shall vitiate or in any way impair the obligations and duties of the Borrower hereunder to indemnify and hold harmless each such Indemnified Party; provided, however, that (i) if the Borrower is required to indemnify an Indemnified Party pursuant hereto and (ii) the Borrower has provided evidence reasonably satisfactory to such Indemnified Party that the Borrower has the financial wherewithal to reimburse such Indemnified Party for any amount paid by such Indemnified Party with respect to such Indemnified Proceeding, such Indemnified Party shall not settle or compromise any such Indemnified Proceeding without the prior written consent of the Borrower (which consent shall not be unreasonably withheld or delayed).
		

		
			 
		

		
			(f)If and to the extent that the obligations of the Borrower hereunder are unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under Applicable Law.
		

		
			 
		

		
			(g)The Borrower’s obligations hereunder shall survive any termination of this Agreement and the other Loan Documents and the payment in full in cash of the Obligations, and are in addition to, and not in substitution of, any other of their obligations set forth in this Agreement or any other Loan Document to which it is a party.
		

		
			 
		

		
			Section 13.10.  Termination; Survival.
		

		
			At such time as (a) all of the Commitments have been terminated, (b) none of the Lenders is obligated any longer under this Agreement to make any Loans and (c) all Obligations (other than obligations which survive as provided in the following sentence) have been paid and satisfied in full, this Agreement shall terminate. The indemnities to which the Agent, the Issuing Banks and the Lenders are entitled under the provisions of Sections 3.12., 5.1., 5.4., 12.7., 13.2. and 13.9. and any other provision of this Agreement and the other Loan Documents, and the provisions of Section 13.4., shall continue in full force and effect and shall protect the Agent, the Issuing Banks and the Lenders (i) notwithstanding any termination of this Agreement, or of the other Loan Documents, against events arising after such termination as well as before and (ii) at all times after any such party ceases to be a party to this Agreement with respect to all matters and events existing on or prior to the date such party ceased to be a party to this Agreement.
		

		
			 
		

		
			Section 13.11.  Severability of Provisions.
		

		
			Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction.
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 13.12.  GOVERNING LAW.
		

		
			THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
		

		
			 
		

		
			Section 13.13.  Counterparts.
		

		
			This Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.
		

		
			 
		

		
			Section 13.14.  Obligations with Respect to Loan Parties.
		

		
			The obligations of the Borrower to direct or prohibit the taking of certain actions by the other Loan Parties as specified herein shall be absolute and not subject to any defense the Borrower may have that the Borrower does not control such Loan Parties.
		

		
			 
		

		
			Section 13.15.  Marshaling; Payments Set Aside.
		

		
			None of the Agent, any Issuing Bank or any Lender shall be under any obligation to marshal any assets in favor of any Loan Party or any other party or against or in payment of any or all of the Obligations.  To the extent that any Loan Party makes a payment or payments to the Agent, any Issuing Bank and/or any Lender, or the Agent, any Issuing Bank and/or any Lender enforce their security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such recovery, the Obligations or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.
		

		
			 
		

		
			Section 13.16.  Independence of Covenants.
		

		
			All covenants hereunder shall be given in any jurisdiction independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or be otherwise within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.
		

		
			 
		

		
			Section 13.17.  Limitation of Liability.
		

		
			None of the Agent, any Issuing Bank or any Lender, nor any affiliate, officer, director, employee, attorney, or agent of the Agent, any Issuing Bank or any Lender shall have any liability with respect to, and the Borrower hereby waives, releases, and agrees not to sue any of 
		

		 

		

			 

		

		

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		them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by the Borrower in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or any of the other Loan Documents.  The Borrower hereby waives, releases, and agrees not to sue the Agent, any Issuing Bank or any Lender or any of the Agent’s, any Issuing Bank’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by this Agreement or financed hereby.
		

		
			 
		

		
			Section 13.18.  Entire Agreement.
		

		
			This Agreement, the Notes, and the other Loan Documents referred to herein embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations, and understandings, whether written or oral, relating to the subject matter hereof and thereof and may not be contradicted or varied by evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto.  There are no oral agreements among the parties hereto.
		

		
			 
		

		
			Section 13.19.  Construction.
		

		
			The Agent, the Borrower, each Issuing Bank and each Lender acknowledge that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review this Agreement and the other Loan Documents with its legal counsel and that this Agreement and the other Loan Documents shall be construed as if jointly drafted by the Agent, the Issuing Banks, the Borrower and each Lender.
		

		
			 
		

		
			Section 13.20.  Electronic Document Delivery.
		

		
			(a)Documents required to be delivered pursuant to the Loan Documents shall be delivered by electronic communication and delivery, including, the Internet, e-mail or intranet websites to which the Agent and each Lender have access (including a commercial, third-party website such as www.sec.gov <http://www.sec.gov> or a website sponsored or hosted by the Agent or the Borrower) provided that (A) the foregoing shall not apply to notices to any Lender, any Issuing Bank or the Agent pursuant to Article II. and (B) the applicable Lender or Issuing Bank has not notified the Agent or Borrower that it cannot or does not want to receive electronic communications.  The Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic delivery pursuant to procedures approved by it for all or particular notices or communications.  Documents or notices delivered electronically shall be deemed to have been delivered twenty-four (24) hours after the date and time on which the Agent or Borrower posts such documents or the documents become available on a commercial website and the Agent or Borrower notifies each Lender of said posting and provides a link thereto provided if such notice or other communication is not sent or posted during the normal business hours of the recipient, said posting date and time shall be deemed to have commenced as of  9:00 a.m. on the opening of business on the next business day for the recipient.  Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the certificate required by Section 9.3. to the Agent and shall 
		

		 

		

			 

		

		

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		deliver paper copies of any documents to the Agent, any Issuing Bank or to any Lender that requests such paper copies until a written request to cease delivering paper copies is given by the Agent, such Issuing Bank or such Lender.  Except for the certificates required by Section 9.3., the Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents delivered electronically, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery.  Each Lender and each Issuing Bank shall be solely responsible for requesting delivery to it of paper copies and maintaining its paper or electronic documents.
		

		
			 
		

		
			(b)The Borrower agrees that the Agent may make any material delivered by the Borrower to the Agent, as well as any amendments, waivers, consents, and other written information, documents, instruments and other materials relating to the Borrower, any of its Subsidiaries, or any other materials or matters relating to this Agreement, the Notes or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Issuing Banks and the Lenders by posting such notices on an electronic delivery system (which may be provided by the Agent, an affiliate of the Agent, or any Person that is not an affiliate of the Agent), such as IntraLinks, or a substantially similar electronic system (the “Platform”).  The Borrower acknowledges that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its affiliates warrants the accuracy, completeness, timeliness, sufficiency, or sequencing of the Communications posted on the Platform.  The Agent and its affiliates expressly disclaim with respect to the Platform any liability for errors in transmission, incorrect or incomplete downloading, delays in posting or delivery, or problems accessing the Communications posted on the Platform and any liability for any losses, costs, expenses or liabilities that may be suffered or incurred in connection with the Platform.  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Agent or any of its affiliates in connection with the Platform.
		

		
			 
		

		
			(c)Each Lender and each Issuing Bank agrees that notice to it (as provided in the next sentence) (a “Notice”) specifying that any Communication has been posted to the Platform shall for purposes of this Agreement constitute effective delivery to such Lender or such Issuing Bank of such information, documents or other materials comprising such Communication.  Each Lender and each Issuing Bank agrees (i) to notify, on or before the date such Lender becomes a party to this Agreement, the Agent in writing of such Lender’s or such Issuing Bank’s e-mail address to which a Notice may be sent (and from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such Lender) and (ii) that any Notice may be sent to such e-mail address.
		

		
			 
		

		
			(d)Notwithstanding anything to the contrary herein, documents and notices required to be delivered by the Loan Parties pursuant to the Loan Documents shall be deemed delivered by, and delivery effective at the time of, the public filing of the same in electronic format with the SEC or by posting the same on the Borrower’s website to which the Agent, each Issuing Bank and each Lender have access.
		

		
			 
		

		
			
		

		 

		

			 

		

		

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		Section 13.21.  Patriot Act.
		

		
			The USA Patriot Act of 2001 (Public Law 107-56) and federal regulations issued with respect thereto require all financial institutions to obtain, verify and record certain information that identifies individuals or business entities which open an “account” with such financial institution. Consequently, each Lender hereunder may from time to time request, and the Borrower shall provide to such Lender, the Borrower’s name, address, tax identification number and/or such other identification information as shall be necessary for such Lender to comply with federal law. An “account” for this purpose may include, without limitation, a deposit account, cash management service, a transaction or asset account, a credit account, a loan or other extension of credit, and/or other financial services product.
		

		
			 
		

		
			Section 13.22.  Effect of Existing Credit Agreement.
		

		
			(a)Existing Credit Agreement.  Upon satisfaction of the conditions precedent set forth in Sections 6.1. and 6.2. of this Agreement, this Agreement shall exclusively control and govern the mutual rights and obligations of the parties hereto with respect to the Existing Credit Agreement, and the Existing Credit Agreement shall be superseded by this Agreement in all respects, in each case, on a prospective basis only.  
		

		
			 
		

		
			(b)NO NOVATION.  THE PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT SOLELY TO AMEND AND RESTATE THE TERMS OF, AND THE OBLIGATIONS OWING UNDER AND IN CONNECTION WITH, THE EXISTING CREDIT AGREEMENT.  THE PARTIES DO NOT INTEND THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER UNDER OR IN CONNECTION WITH THE EXISTING CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE EXISTING CREDIT AGREEMENT). 
		

		
			 
		

		
			[Signatures on Following Pages]
		

		
			 
		

		

		

		 

		

			 

		

		

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		IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Credit Agreement to be executed by their authorized officers all as of the day and year first above written.
		

		
			 
		

		
			Borrower:
		

		
			 
		

		
			PUBLIC STORAGE
		

		
			 
		

		
			 
		

		
			By:___________________________________________________________________________________________
		

		
			     Name:___________________________________________________________________________________
		

		
			     Title:_____________________________________________________________________________________
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signatures Continued on Next Page]
		

		

		

		 

		

			 

		

		

			 

		

 

		Signature Page to Amended and Restated Credit Agreement with Public Storage
		

		
			 
		

		
			 
		

		
			WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Agent, as the Swingline Lender and as a Lender
		

		
			 
		

		
			 
		

		
			By:___________________________________________________________________________________________
		

		
			     Name:___________________________________________________________________________________
		

		
			     Title:_____________________________________________________________________________________
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 [Signatures Continued on Next Page]
		

		

		

		 

		

			 

		

 

		Signature Page to Amended and Restated Credit Agreement with Public Storage
		

		
			 
		

		
			 
		

		
			[LENDER]
		

		
			 
		

		
			 
		

		
			By:___________________________________________________________________________________________
		

		
			     Name:___________________________________________________________________________________
		

		
			     Title:_____________________________________________________________________________________
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		SCHEDULE I
		

		
			 
		

		
			Commitments
		

		
			 
		

			
					
						Lender

					
					
						Commitment Amount

				
	
					
						Wells Fargo Bank, National Association

					
					
						$200,000,000

				
	
					
						Bank of America, N.A.

					
					
						$120,000,000

				
	
					
						Citibank, N.A.

					
					
						$80,000,000

				
	
					
						Morgan Stanley Bank, N.A.

					
					
						$50,000,000

				
	
					
						UBS AG, Stamford Branch

					
					
						$50,000,000

				
	
					
						Total

					
					
						$500,000,000EX-10.1

 Exhibit 10.1 
  

 
 SECOND AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 COLONY CAPITAL OPERATING
COMPANY, LLC 
 (FORMERLY KNOWN AS CFI RE MASTERCO, LLC) 

a Delaware limited liability company 
  

 
 THE SECURITIES EVIDENCED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS THE
TRANSFEROR DELIVERS TO THE COMPANY AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
SECURITIES OR “BLUE SKY” LAWS. 
 dated as of April 2, 2015 

 
  

 TABLE OF CONTENTS 
  

							
	 		Page	 
		
	 ARTICLE 1 DEFINED TERMS
		 	2	  
	 Section 1.1
		 Definitions
		 	2	  
	 Section 1.2
		 Interpretation and Usage
		 	21	  
		
	 ARTICLE 2 ORGANIZATIONAL MATTERS
		 	21	  
	 Section 2.1
		 Formation
		 	21	  
	 Section 2.2
		 Name
		 	21	  
	 Section 2.3
		 Principal Office and Resident Agent
		 	21	  
	 Section 2.4
		 Power of Attorney
		 	22	  
	 Section 2.5
		 Term
		 	23	  
		
	 ARTICLE 3 PURPOSE
		 	23	  
	 Section 3.1
		 Purpose and Business
		 	23	  
	 Section 3.2
		 Powers
		 	23	  
	 Section 3.3
		 Limited Authority and Liability of Members
		 	23	  
	 Section 3.4
		 Representations and Warranties by the Members
		 	24	  
		
	 ARTICLE 4 CAPITAL CONTRIBUTIONS
		 	26	  
	 Section 4.1
		 Capital Contributions of the Members
		 	26	  
	 Section 4.2
		 Issuances of Additional Membership Interests
		 	26	  
	 Section 4.3
		 Additional Funds and Capital Contributions
		 	27	  
	 Section 4.4
		 Stock Option Plans
		 	29	  
	 Section 4.5
		 LTIP Units
		 	30	  
	 Section 4.6
		 Conversion of LTIP Units
		 	33	  
	 Section 4.7
		 Dividend Reinvestment Plan, Stock Incentive Plan or Other Plan
		 	36	  
	 Section 4.8
		 No Interest; No Return
		 	36	  
	 Section 4.9
		 Conversion or Redemption of Preferred Shares; Redemption of REIT Shares
		 	36	  
	 Section 4.10
		 Other Contribution Provisions
		 	37	  
	 Section 4.11
		 Excluded Properties
		 	37	  
	 Section 4.12
		 Contingent Consideration and Indemnification Payment
		 	37	  
		
	 ARTICLE 5 DISTRIBUTIONS
		 	37	  
	 Section 5.1
		 Requirement and Characterization of Distributions
		 	37	  
	 Section 5.2
		 Distributions in Kind
		 	38	  
	 Section 5.3
		 Amounts Withheld
		 	38	  
	 Section 5.4
		 Distributions upon Liquidation
		 	38	  
	 Section 5.5
		 Distributions to Reflect Additional Membership Units
		 	38	  
	 Section 5.6
		 Restricted Distributions
		 	38	  
		
	 ARTICLE 6 ALLOCATIONS
		 	39	  
	 Section 6.1
		 Timing and Amount of Allocations of Net Income and Net Loss
		 	39	  
	 Section 6.2
		 General Allocations
		 	39	  
	 Section 6.3
		 Additional Allocation Provisions
		 	40	  
	 Section 6.4
		 Tax Allocations
		 	43	  

  
 i 

							
		
	 ARTICLE 7 MANAGEMENT AND OPERATIONS OF BUSINESS
		 	44	  
	 Section 7.1
		 Management
		 	44	  
	 Section 7.2
		 Certificate of Formation
		 	45	  
	 Section 7.3
		 Restrictions on the Managing Member’s Authority
		 	45	  
	 Section 7.4
		 Reimbursement of the Managing Member and CLNY
		 	48	  
	 Section 7.5
		 Outside Activities of the Managing Member
		 	49	  
	 Section 7.6
		 Transactions with Affiliates
		 	49	  
	 Section 7.7
		 Indemnification
		 	50	  
	 Section 7.8
		 Liability of the Managing Member
		 	52	  
	 Section 7.9
		 Title to Company Assets
		 	53	  
	 Section 7.10
		 Reliance by Third Parties
		 	53	  
		
	 ARTICLE 8 RIGHTS AND OBLIGATIONS OF MEMBERS
		 	54	  
	 Section 8.1
		 Limitation of Liability
		 	54	  
	 Section 8.2
		 Management of Business
		 	54	  
	 Section 8.3
		 Outside Activities of Non-Managing Members
		 	54	  
	 Section 8.4
		 Return of Capital
		 	55	  
	 Section 8.5
		 Rights of Non-Managing Members Relating to the Company
		 	55	  
	 Section 8.6
		 No Rights as Objecting Member
		 	55	  
	 Section 8.7
		 No Right to Certificate Evidencing Units; Article 8 Securities
		 	55	  
		
	 ARTICLE 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS
		 	56	  
	 Section 9.1
		 Records and Accounting
		 	56	  
	 Section 9.2
		 Fiscal Year
		 	56	  
	 Section 9.3
		 Reports
		 	56	  
		
	 ARTICLE 10 TAX MATTERS
		 	56	  
	 Section 10.1
		 Preparation of Tax Returns
		 	56	  
	 Section 10.2
		 Tax Elections
		 	57	  
	 Section 10.3
		 Tax Matters Member
		 	57	  
	 Section 10.4
		 Withholding
		 	58	  
	 Section 10.5
		 Organizational Expenses
		 	59	  
		
	 ARTICLE 11 MEMBER TRANSFERS AND WITHDRAWALS
		 	59	  
	 Section 11.1
		 Transfer
		 	59	  
	 Section 11.2
		 Transfer of the Managing Member’s Membership Interest
		 	60	  
	 Section 11.3
		 Non-Managing Members’ Rights to Transfer
		 	60	  
	 Section 11.4
		 Substituted Members
		 	62	  
	 Section 11.5
		 Assignees
		 	62	  
	 Section 11.6
		 General Provisions
		 	62	  
	 Section 11.7
		 Restrictions on Termination Transactions
		 	64	  
		
	 ARTICLE 12 ADMISSION OF MEMBERS
		 	65	  
	 Section 12.1
		 Admission of Successor Managing Member
		 	65	  
	 Section 12.2
		 Admission of Additional Members
		 	65	  
	 Section 12.3
		 Amendment of Agreement and Certificate of Formation
		 	66	  
	 Section 12.4
		 Limit on Number of Members
		 	66	  
	 Section 12.5
		 Admission
		 	66	  
		
	 ARTICLE 13 DISSOLUTION, LIQUIDATION AND TERMINATION
		 	66	  
	 Section 13.1
		 Dissolution
		 	66	  

  
 ii 

							
	 Section 13.2
		 Winding Up
		 	67	  
	 Section 13.3
		 Deemed Contribution and Distribution
		 	68	  
	 Section 13.4
		 Rights of Holders
		 	68	  
	 Section 13.5
		 Notice of Dissolution
		 	69	  
	 Section 13.6
		 Cancellation of Certificate of Formation
		 	69	  
	 Section 13.7
		 Reasonable Time for Winding-Up
		 	69	  
		
	 ARTICLE 14 PROCEDURES FOR ACTIONS AND CONSENTS OF MEMBERS; AMENDMENTS; MEETINGS
		 	69	  
	 Section 14.1
		 Actions and Consents of Members
		 	69	  
	 Section 14.2
		 Amendments
		 	69	  
	 Section 14.3
		 Procedures for Meetings and Actions of the Members
		 	70	  
		
	 ARTICLE 15 GENERAL PROVISIONS
		 	71	  
	 Section 15.1
		 Redemption Rights of Qualifying Parties
		 	71	  
	 Section 15.2
		 Addresses and Notice
		 	77	  
	 Section 15.3
		 Titles and Captions
		 	77	  
	 Section 15.4
		 Further Action
		 	77	  
	 Section 15.5
		 Binding Effect
		 	77	  
	 Section 15.6
		 Waiver
		 	77	  
	 Section 15.7
		 Counterparts
		 	77	  
	 Section 15.8
		 Applicable Law; Consent to Jurisdiction; Jury Trial
		 	78	  
	 Section 15.9
		 Entire Agreement
		 	78	  
	 Section 15.10
		 Invalidity of Provisions
		 	78	  
	 Section 15.11
		 Limitation to Preserve REIT Status
		 	79	  
	 Section 15.12
		 No Partition
		 	79	  
	 Section 15.13
		 No Third-Party Rights Created Hereby
		 	79	  
	 Section 15.14
		 No Rights as Stockholders
		 	80	  

							
			
	 Exhibit A
		 EXAMPLES REGARDING ADJUSTMENT FACTOR
		 	A-1	  
			
	 Exhibit B
		 NOTICE OF REDEMPTION
		 	B-1	  
			
	 Exhibit C
		 MEMBER NOTICE OF LTIP CONVERSION ELECTION
		 	C-1	  
			
	 Exhibit D
		 COMPANY NOTICE OF LTIP CONVERSION ELECTION
		 	D-1	  
			
	 Exhibit E
		 SERIES A COMPANY PREFERRED UNIT DESIGNATION
		 	E-1	  
			
	 Exhibit F
		 SERIES B COMPANY PREFERRED UNIT DESIGNATION
		 	F-1	  
			
	 Schedule I
		 MEMBERS AND CAPITAL ACCOUNTS
		 	Sch. I-1	  
			
	 Schedule II
		 SCHEDULE OF GROSS ASSET VALUES
		 	Sch. II-1	  

  
 iii 

 SECOND AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT OF 

COLONY CAPITAL OPERATING COMPANY, LLC 

(FORMERLY KNOWN AS CFI RE MASTERCO, LLC) 

THIS SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF COLONY CAPITAL OPERATING COMPANY, LLC (formerly known as CFI RE
MASTERCO, LLC), a Delaware limited liability company (the “Company”), dated as of April 2, 2015, is entered into by and among (i) Colony Capital, Inc. (formerly known as Colony Financial, Inc.)
(“CLNY”), (ii) Colony Capital, LLC (“CC”), (iii) CCH Management Partners I, LLC (“CCH”), (iv) FHB Holding LLC (“FHB LLC”), (v) Richard B. Saltzman
(“Saltzman”) and (vi) each other Person who at any time after the date hereof becomes a Member of the Company in accordance with the terms of this Agreement and the Act. 

RECITALS 
 WHEREAS, the Company
was formed as a limited liability company under the Delaware Limited Liability Company Act, Title 6, Sections 18-101 et seq. (the “Act”), by the filing of a Certificate of Formation with the Secretary of State of the State of
Delaware on March 25, 2011 (the “Original Certificate”); 
 WHEREAS, on March 25, 2011, CLNY entered into a
limited liability company agreement of the Company (the “Original Agreement”); 
 WHEREAS, on January 7, 2015, the
name of the Company was changed from “CFI RE Masterco, LLC” to “Colony Capital Operating Company, LLC”, by the filing of a Certificate of Amendment to the Original Certificate with the Secretary of State of the State of Delaware
(the “Certificate of Amendment”); 
 WHEREAS, CC, CCH, FHB LLC, Saltzman, CLNY and the Company, concurrently with their
execution of this Agreement, consummated the transactions contemplated by that certain contribution agreement, dated as of December 23, 2014 (the “CC Contribution Agreement”), by and among CC, CCH, FHB LLC, Saltzman, CLNY, the
Company and Colony Capital OP Subsidiary, LLC, pursuant to which (i) each of CC, CCH, FHB LLC and Saltzman has acquired its Membership Interests in the Company; and (ii) CLNY has acquired additional Membership Interests in the Company on
the terms and conditions set forth therein; and 
 WHEREAS, each of CLNY, CC, CCH, Saltzman and FHB LLC now desire to amend and restate the
Original Agreement to read in its entirety as set forth herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

  
 1 

 ARTICLE 1 

DEFINED TERMS 
 Section 1.1
Definitions. The following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement: 

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

“Actions” has the meaning set forth in Section 7.7 hereof. 

“Additional Funds” has the meaning set forth in Section 4.3.A hereof. 

“Additional Member” means a Person who is admitted to the Company as a Member pursuant to the Act and Section 12.2
hereof, who is shown as such on the books and records of the Company, and who has not ceased to be a Member pursuant to the Act and this Agreement. 

“Adjusted Available Cash” means, as of any date of determination, the sum of Available Cash and REIT Available Cash. 

“Adjusted Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member’s
Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: 
 (i) decrease
such deficit by any amounts that such Member is obligated to restore pursuant to this Agreement or by operation of law upon liquidation of such Member’s Membership Interest or that such Member is deemed to be obligated to restore pursuant to
the penultimate sentence of each of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 
 (ii) increase such
deficit by the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 
 The foregoing definition of “Adjusted Capital
Account Deficit” is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

“Adjustment Events” has the meaning set forth in Section 4.5.A(i) hereof. 

“Adjustment Factor” means 1.0; provided, however, that in the event that: 

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

  
 2 

 (ii) CLNY distributes any rights, options or warrants to all holders of its REIT
Shares to subscribe for or to purchase or to otherwise acquire REIT Shares, or other securities or rights convertible into, exchangeable for or exercisable for REIT Shares (other than REIT Shares issuable pursuant to a Qualified DRIP), at a price
per share less than the Value of a REIT Share on the record date for such distribution (each a “Distributed Right”), then the Adjustment Factor shall be adjusted by multiplying the Adjustment Factor then in effect by a fraction
(a) the numerator of which shall be the number of REIT Shares issued and outstanding on the record date plus the maximum number of REIT Shares purchasable under such Distributed Rights and (b) the denominator of which shall be the number
of REIT Shares issued and outstanding on the record date plus a fraction (1) the numerator of which is the maximum number of REIT Shares purchasable under such Distributed Rights, multiplied by the minimum purchase price per REIT Share under
such Distributed Rights and (2) the denominator of which is the Value of a REIT Share as of the record date; provided, however, that, if any such Distributed Rights expire or become no longer exercisable, then the Adjustment
Factor shall be adjusted, effective retroactive to the date of distribution (or, if later, the time the Distributed Rights become exercisable) of the Distributed Rights, to reflect a reduced maximum number of REIT Shares or any change in the minimum
purchase price for the purposes of the above fraction; and 
 (iii) CLNY shall, by dividend or otherwise, distribute to all
holders of its REIT Shares evidences of its indebtedness or its assets (including securities, but excluding cash or any dividend or distribution referred to in subsection (i) or (ii) above, or any Units), which evidences of indebtedness or
assets relate to assets not received by CLNY pursuant to a pro rata distribution by the Company, then the Adjustment Factor shall be adjusted to equal the amount determined by multiplying the Adjustment Factor then in effect by a fraction
(a) the numerator of which shall be such Value of a REIT Share as of the trading day immediately preceding the ex-date for such dividend or distribution and (b) the denominator of which shall be the Value of a REIT Share as of the trading
day immediately preceding the ex-date for such dividend or distribution, less the then fair market value (as determined by the Managing Member, whose determination shall be conclusive) of the portion of the evidences of indebtedness or assets so
distributed applicable to one REIT Share. 
 Any adjustment to the Adjustment Factor shall become effective on the first date on which REIT Shares trade at
a price that reflects such event (the “ex-date”). Notwithstanding the foregoing, if any of the events in clause (i), (ii) or (iii) above occur, no adjustments will be made to the Adjustment Factor for any class or
series of Membership Interests to the extent that the Company concurrently makes or effects a correlative distribution or payment to all of the Members holding Membership Interests of such class or series, or effects a correlative split,
subdivision, reverse split or combination in respect of the Membership Interests of such class or series. If CLNY effects a dividend that allows holders of REIT Shares to elect to receive cash or additional REIT Shares, the Company may effect a
correlative distribution by distributing to all Members holding Membership Interests of such class or series a combination of cash and additional Membership Interests in the same ratio as the ratio of cash and REIT Shares paid by CLNY, without
offering Members an opportunity to elect to receive cash or additional Membership Interests. Any adjustments to the Adjustment Factor shall become effective immediately after such event, retroactive to the record date, if any, for such event. For
illustrative purposes, examples of adjustments to the Adjustment Factor are set forth on Exhibit A attached hereto. 

  
 3 

 “Affiliate” means, with respect to a specified Person, any Person that directly
or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, the specified Person, where “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of a Person, whether through the ownership of voting securities, by contract, as trustee or executor or otherwise. For the avoidance of doubt, (i) CC and its Subsidiaries, on the one hand, and CLNY and its
Subsidiaries, on the other hand, shall not be deemed Affiliates of the other for purposes of this Agreement and (ii) no fund, investment vehicle, or investment product managed by CLNY or its Subsidiaries shall be deemed an Affiliate of CLNY.

 “Affiliated REIT” means CLNY and any Affiliate of CLNY or the Company that has elected to be taxed as a REIT under the
Code and is a Member. 
 “Aggregate Contingent Consideration” has the meaning set forth in Section 4.12 hereof. 

“Agreement” means this Second Amended and Restated Limited Liability Company Agreement of Colony Capital Operating Company,
LLC (formerly known as CFI RE Masterco, LLC), as now or hereafter amended, restated, modified, supplemented or replaced. 

“Applicable Percentage” has the meaning set forth in Section 15.1.B hereof. 

“Assignee” means a Person to whom a Membership Interest has been Transferred but who has not become a Substituted Member, and
who has the rights set forth in Section 11.5 hereof. 
 “Available Cash” means, with respect to any period for which
such calculation is being made, 
 (i) the sum, without duplication, of: 

(1) the Company’s Net Income or Net Loss (as the case may be) for such period, 

(2) Depreciation and all other noncash charges to the extent deducted in determining Net Income or Net Loss for such period,

 (3) the amount of any reduction in reserves of the Company established by the Managing Member (including reductions
resulting because the Managing Member determines such amounts are no longer necessary), 
 (4) the excess, if any, of the
net cash proceeds from the sale, exchange, disposition, financing or refinancing of Company property for such period over the gain (or loss, as the case may be) recognized from such sale, exchange, disposition, financing or refinancing during such
period, and 
 (5) all other cash received (including amounts previously accrued as Net Income and amounts of deferred
income) or any net amounts borrowed by the Company for such period that was not included in determining Net Income or Net Loss for such period; 

  
 4 

 (ii) less the sum, without duplication, of: 

(1) all principal debt payments made during such period by the Company, 

(2) capital expenditures made by the Company during such period, 

(3) investments in any entity (including loans made thereto) to the extent that such investments are not otherwise described
in clause (ii)(1) or clause (ii)(2) above, 
 (4) the excess, if any, of gain (or loss, as the case may be)
recognized from the sale, exchange, disposition, financing or refinancing of Company property for such period over the net cash proceeds from such sale, exchange, disposition, financing or refinancing during such period, 

(5) all other expenditures and payments not deducted in determining Net Income or Net Loss for such period (including amounts
paid in respect of expenses previously accrued), 
 (6) any amount included in determining Net Income or Net Loss for such
period that was not received by the Company during such period, 
 (7) the amount of any increase in reserves (including
working capital reserves) established by the Managing Member during such period, 
 (8) any amount distributed or paid in
redemption of any Member’s Membership Interest or Membership Units, including any Cash Amount paid, and 
 (9) all
payments received by the Company from the CLNY Management Agreement. 
 Notwithstanding the foregoing, Available Cash shall not include (a) any cash
received or reductions in reserves, or take into account any disbursements made, or reserves established, after dissolution and the commencement of the liquidation and winding up of the Company or (b) any Capital Contributions, whenever
received or any payments, expenditures or investments made with such Capital Contributions. 
 “Board of Directors” means
the Board of Directors of CLNY. 
 “Business Day” means any day except a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required by law to close. 
 “Capital Account” means, with respect to any
Member, the Capital Account maintained by the Managing Member for such Member on the Company’s books and records in accordance with the following provisions: 

(a) To each Member’s Capital Account, there shall be added such Member’s Capital Contributions, such Member’s
distributive share of Net Income and any items in the nature of income or gain that are specially allocated pursuant to Section 6.3 hereof, and the amount of any Company liabilities assumed by such Member or that are secured by any property
distributed to such Member. 

  
 5 

 (b) From each Member’s Capital Account, there shall be subtracted the
amount of cash and the Gross Asset Value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of Net Losses and any items in the nature of expenses or losses that are specially
allocated pursuant to Section 6.3 hereof, and the amount of any liabilities of such Member assumed by the Company or that are secured by any property contributed by such Member to the Company (except to the extent already reflected in the
amount of such Member’s Capital Contribution). 
 (c) In the event any interest in the Company is Transferred in
accordance with the terms of this Agreement, the transferee shall succeed to the Member’s Capital Account of the transferor to the extent that it relates to the Transferred interest. 

(d) In determining the amount of any liability for purposes of subsections (a) and (b) hereof, there shall be taken
into account Code Section 752(c) and any other applicable provisions of the Code and Regulations. 
 (e) The provisions
of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations promulgated under Code Section 704, and shall be interpreted and applied in a manner consistent with such Regulations. The Managing Member
may modify the manner in which the Capital Accounts are maintained in order to comply with such Regulations, provided that the Managing Member determines that such modification is not reasonably likely to have a material effect on the amounts
distributable to any Member without such Person’s consent. The Managing Member also may (i) make any adjustments to maintain equality between the Capital Accounts of the Members and the amount of Company capital reflected on the
Company’s balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate modifications in the event that unanticipated events might otherwise cause this
Agreement not to comply with Regulations Section 1.704-1(b) or Section 1.704-2; provided, however, that the Managing Member determines that such changes are not reasonably likely to materially reduce amounts otherwise
distributable to the Member as current cash distributions or as distributions on termination of the Company. 
 “Capital Account
Limitation” has the meaning set forth in Section 4.6.B hereof. 
 “Capital Contribution” means, with respect
to any Member, the amount of money and the initial Gross Asset Value of any Contributed Property that such Member contributes to the Company or is deemed to contribute pursuant to Article 4 hereof. 

“Capital Share” means a share of any class or series of stock of CLNY now or hereafter authorized, other than a REIT Share.

 “Cash Amount” means an amount of cash equal to the product of (i) the Value of a Class A REIT Share and
(ii) the REIT Shares Amount determined as of the applicable Valuation Date. 
 “CC Contribution Agreement” has the
meaning set forth in the Recitals. 

  
 6 

 “Certificate” means the Original Certificate, as amended by the Certificate of
Amendment, and as may be further amended from time to time in accordance with the terms hereof and the Act. 
 “Charity”
means an entity described in Code Section 501(c)(3), or any trust all the beneficiaries of which are such entities. 

“Charter” means the charter of CLNY, within the meaning of Section 1-101(e) of
the Maryland General Corporation Law. 
 “Class A REIT Share” means a share of class A common stock of CLNY, par value
$0.01 per share. Where relevant in this Agreement, “Class A REIT Shares” includes shares of class A common stock of CLNY, par value $0.01 per share, issued upon conversion of Preferred Shares or Class B REIT Shares. 

“Class B REIT Share” means a share of class B common stock of CLNY, par value $0.01 per share. 

“CLNY Equivalent Shares” means, with respect to any class or series of Membership Units, REIT Shares or Capital Shares issued
by CLNY with preferences, conversion and other rights (other than voting rights), restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption that are substantially the same as (or
correspond to) the preferences, conversion and other rights, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption of such Membership Units as appropriate to reflect the relative rights and preferences
of such Membership Units as to the other classes and series of Membership Units, but not as to matters such as voting for members of the Board of Directors that are not applicable to the Company. 

“CLNY Management Agreement” means the Second Amended and Restated Management Agreement, dated as of March 6, 2013, by
and among CLNY, Colony Financial TRS, LLC, a Delaware limited liability company and wholly-owned subsidiary of CLNY and Colony Financial Manager, LLC, a Delaware limited liability company. 

“CLNY Member Loan” has the meaning set forth in Section 4.3.D hereof. 

“Code” means the Internal Revenue Code of 1986. 

“Company” means Colony Capital Operating Company, LLC (formerly known as CFI RE Masterco, LLC), the limited liability company
formed and continued under the Act and pursuant to this Agreement, and any successor thereto. 
 “Company Employee” means
an employee of the Company or an employee of a Subsidiary of the Company, if any. 
 “Company Equivalent Units” means, with
respect to any class or series of Capital Shares, Preferred Shares, New Securities or other interests in CLNY (other than REIT Shares), Membership Units with preferences, conversion and other rights (other than voting rights), restrictions,
limitations as to dividends and other distributions, qualifications and terms and conditions of redemption that are substantially the same as (or correspond to) the preferences, conversion and other rights, restrictions, limitations as to
distributions, qualifications and terms and conditions of redemption of such Capital Shares, Preferred Shares, New Securities or other interests as appropriate to reflect the relative rights and 

  
 7 

 
preferences of such Capital Shares, Preferred Shares, New Securities or other interests as to the REIT Shares and the other classes and series of Capital Shares, Preferred Shares, New Securities
or other interests as such Company Equivalent Units would have as to Membership Common Units and the other classes and series of Membership Units corresponding to the other classes of Capital Shares, Preferred Shares, New Securities or other
interests but not as to matters such as voting for members of the Board of Directors that are not applicable to the Company. For the avoidance of doubt, the voting rights, redemption rights and rights to Transfer Company Equivalent Units need not be
similar to the rights of the corresponding class or series of Capital Shares, Preferred Shares, New Securities or other interests, provided, however, with respect to redemption rights, the terms of Company Equivalent Units must be such
so that the Company complies with Section 4.9.B of this Agreement. 
 “Company Junior Unit” means a fractional share
of the Membership Interests of a particular class or series that the Managing Member has authorized pursuant to Section 4.2 hereof that has distribution rights, or rights upon liquidation, winding up and dissolution, that are inferior or junior
to the Membership Common Units. 
 “Company Minimum Gain” has the meaning set forth in Regulations
Section 1.704-2(b)(2), and the amount of Member Minimum Gain, as well as any net increase or decrease in Member Minimum Gain, for a Fiscal Year shall be determined in accordance with the rules of Regulations Section 1.704-2(d). 

“Company Preferred Unit” means a fractional share of the Membership Interests of a particular class or series that the
Managing Member has authorized pursuant to Section 4.1 or Section 4.2 or Section 4.3 hereof that has distribution rights, or rights upon liquidation, winding up and dissolution, that are superior or prior to the Membership Common
Units, including the Series A Company Preferred Units and the Series B Company Preferred Units. 
 “Company Record Date”
means the record date established by the Managing Member for the purpose of determining the Members entitled to notice of or to vote at any meeting of Members or to consent to any matter, or to receive any distribution or the allotment of any other
rights, or in order to make a determination of Members for any other proper purpose, which, in the case of a record date fixed for the determination of Members entitled to receive any distribution, shall (unless otherwise determined by the Managing
Member) generally be the same as the record date established by CLNY for a distribution to its stockholders of some or all of its portion of such distribution. 

“Consent” means the consent to, approval of, or vote in favor of a proposed action by a Member given in accordance with
Article 14 hereof. 
 “Consent of the Members” means the Consent of a Majority in Interest of the Members, which
Consent shall be obtained before the taking of any action for which it is required by this Agreement and, except as otherwise provided in this Agreement, may be given or withheld by Members in their discretion. 

“Consent of the Non-Managing Members” means the Consent of a Majority in Interest of the Non-Managing Members, which Consent
shall be obtained before the taking of any action for which it is required by this Agreement and, except as otherwise provided in this Agreement, may be given or withheld by Members in their discretion. 

“Constituent Person” has the meaning set forth in Section 4.6.F hereof. 

“Contingent Consideration Members” has the meaning set forth in Section 4.12 hereof. 

  
 8 

 “Contributed Property” means each Property or other asset, in such form as may
be permitted by the Act, but excluding cash, contributed or deemed contributed to the Company (or deemed contributed by the Company to a “new” partnership pursuant to Code Section 708). 

“Controlled Entity” means, as to any Person, (a) any corporation more than fifty percent (50%) of the outstanding
voting stock of which is owned by such Person or such Person’s Family Members or Affiliates, (b) any trust, whether or not revocable, of which such Person or such Person’s Family Members or Affiliates are the sole beneficiaries,
(c) any partnership of which such Person or an Affiliate of such Person is the managing partner and in which such Person or such Person’s Family Members or Affiliates hold partnership interests representing at least twenty-five percent
(25%) of such partnership’s capital and profits and (d) any limited liability company of which such Person or an Affiliate of such Person is the manager or managing member and in which such Person or such Person’s Family Members
or Affiliates hold membership interests representing at least twenty-five percent (25%) of such limited liability company’s capital and profits. For the avoidance of doubt, no fund, investment vehicle, or investment product managed by CLNY
or its Subsidiaries shall be deemed to be a Controlled Entity of CLNY. 
 “Conversion Date” has the meaning set forth in
Section 4.6.B hereof. 
 “Conversion Notice” has the meaning set forth in Section 4.6.B hereof. 

“Conversion Right” has the meaning set forth in Section 4.6.A hereof. 

“Credit Agreement” has the meaning set forth in Section 6.3.D hereof. 

“Cut-Off Date” means the fifth (5th) Business Day after the Managing Member’s receipt of a Notice of Redemption.

 “Debt” means, as to any Person, as of any date of determination, (i) all indebtedness of such Person for borrowed
money or for the deferred purchase price of property or services; (ii) all amounts owed by such Person to banks or other Persons in respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments
guaranteeing payment or other performance of obligations by such Person; (iii) all indebtedness for borrowed money or for the deferred purchase price of property or services secured by any lien on any property owned by such Person, to the
extent attributable to such Person’s interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (iv) lease obligations of such Person that, in accordance with generally accepted
accounting principles, should be capitalized. 
 “Declination” has the meaning set forth in Section 15.1.A hereof.

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

  
 9 

 “Distributed Right” has the meaning set forth in the definition of
“Adjustment Factor.” 
 “Economic Capital Account Balances” has the meaning set forth in Section 6.3.F
hereof. 
 “Equity Plan” means any stock or equity purchase plan, restricted stock or equity plan or other similar equity
compensation plan now or hereafter adopted by the Company or CLNY. 
 “ERISA” means the Employee Retirement Income Security
Act of 1974. 
 “Excess Units” means Tendered Units, the issuance of REIT Shares in exchange for which would result in a
violation of the Ownership Limit. 
 “Exchange Act” means the Securities Exchange Act of 1934, and any successor statute
thereto, and the rules and regulations of the SEC promulgated thereunder. 
 “Excluded Property” means any asset now or
hereafter held directly by CLNY or any direct or indirect wholly owned Subsidiary of CLNY (other than the equity of any direct or indirect wholly owned Subsidiary of CLNY and interests in the Company), in each case, to the extent such asset has not
theretofore been contributed to the Company. 
 “Family Members” means, as to a Person that is an individual, such
Person’s spouse, ancestors, descendants (whether by blood or by adoption), brothers and sisters and inter vivos or testamentary trusts of which only such Person and his spouse, ancestors, descendants (whether by blood or by adoption),
brothers and sisters are beneficiaries. 
 “Fiscal Quarter” means each calendar quarter ending
March 31, June 30, September 30 and December 31, or such other quarterly accounting period as may be established by the Managing Member. 

“Fiscal Year” means the fiscal year of the Company, which shall be the calendar year. 

“Forced Redemption” has the meaning set forth in Section 4.6.C hereof. 

“Forced Redemption Notice” has the meaning set forth in Section 4.6.C hereof. 

“Funding Debt” means any Debt incurred by or on behalf of the Managing Member or CLNY for the purpose of providing funds to
the Company. 
 “Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income
tax purposes, except as follows: 
 (i) The initial Gross Asset Value of any asset contributed by a Member to the Company
shall be (1) in the case of any asset listed on Schedule II, the gross asset value of such asset as listed on Schedule II and (ii) in all other cases, the gross fair market value of such asset as determined by the Managing Member using
such reasonable method of valuation as it may adopt. 
 (ii) The Gross Asset Values of all Company assets immediately prior
to the occurrence of any event described below shall be adjusted to equal their respective gross fair market values, as determined by the Managing Member using such reasonable method of valuation as it may adopt, as of the following times: 

(1) the acquisition of an additional interest in the Company (other than in connection with the execution of this Agreement
but including acquisitions pursuant to Section 4.2 hereof or contributions or deemed contributions by the Managing Member pursuant to Section 4.2 hereof) by a new or existing Member in exchange for more than a de minimis Capital
Contribution, if the Managing Member reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; 

  
 10 

 (2) the distribution by the Company to a Member of more than a de minimis
amount of Company property as consideration for an interest in the Company if the Managing Member reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; 

(3) the liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); 

(4) upon the admission of a successor managing member pursuant to Section 12.1 hereof; and 

(5) at such other times as the Managing Member shall reasonably determine necessary or advisable in order to comply with
Regulations Sections 1.704-1(b) and 1.704-2. 
 (iii) The Gross Asset Value of any Company asset distributed to a Member
shall be the gross fair market value of such asset on the date of distribution as determined by the Managing Member using such reasonable method of valuation as it may adopt. 

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

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

“Holder” means either (a) a Member or (b) an Assignee that owns a Membership Unit. 

“Incapacity” or “Incapacitated” means, (i) as to any Member who is an individual, death, total physical
disability or entry by a court of competent jurisdiction adjudicating such Member incompetent to manage his or her person or his or her estate; (ii) as to any Member that is a corporation or limited liability company, the filing of a
certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; (iii) as to any Member that is a partnership, the dissolution and commencement of winding up of the partnership; (iv) as to any Member
that is an estate, the distribution by the fiduciary of the estate’s entire interest in the Company; (v) as to any trustee of a trust that is a 

  
 11 

 
Member, the termination of the trust (but not the substitution of a new trustee); or (vi) as to any Member, the bankruptcy of such Member. For purposes of this definition, bankruptcy of a
Member shall be deemed to have occurred when (a) the Member commences a voluntary proceeding seeking liquidation, reorganization or other relief of or against such Member under any bankruptcy, insolvency or other similar law now or hereafter in
effect, (b) the Member is adjudged as bankrupt or insolvent, or a final and nonappealable order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Member, (c) the Member
executes and delivers a general assignment for the benefit of the Member’s creditors, (d) the Member files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Member in any
proceeding of the nature described in clause (b) above, (e) the Member seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Member or for all or any substantial part of the Member’s
properties, (f) any proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the
commencement thereof, (g) the appointment without the Member’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or stayed within ninety (90) days of such appointment, or (h) an appointment
referred to in clause (g) above is not vacated within ninety (90) days after the expiration of any such stay. 

“Indemnitee” means (i) any Person made, or threatened to be made, a party to a proceeding by reason of its status as
(A) the Managing Member or CLNY or (B) a manager, member, officer, director or employee of the Managing Member or CLNY or an employee of the Company and (ii) such other Persons (including Affiliates, employees or agents of the
Managing Member, CLNY or the Company) as the Managing Member may designate from time to time (whether before or after the event giving rise to potential liability). 

“IRS” means the United States Internal Revenue Service. 

“Lead Tendering Party” has the meaning set forth in Section 15.1.I hereof. 

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

“Liquidating Gains” has the meaning set forth in Section 6.3.F hereof. 

“Liquidator” has the meaning set forth in Section 13.2.A hereof. 

“LTIP Award” means each or any, as the context requires, LTIP Award issued under any Equity Plan. 

“LTIP Unit” means a Membership Unit which is designated as an LTIP Unit and which has the rights, preferences and other
privileges and restrictions, qualifications, and limitations set forth in Section 4.5 hereof (except as may be varied by the designations applicable to any particular class or series of LTIP Units) and elsewhere in this Agreement (including any
exhibit hereto creating any new class or series of LTIP Units) or in the Equity Plan or the award, vesting, or other agreement pursuant to which an LTIP Unit is granted to the holder thereof. The allocation of LTIP Units among the Members shall be
set forth in the books and records of the Company, as may be amended from time to time. 
 “LTIP Unitholder” means a Member
that holds LTIP Units. 
 “LV Safe Harbor” has the meaning set forth in Section 10.2.B hereof. 

“LV Safe Harbor Election” has the meaning set forth in Section 10.2.B hereof. 

  
 12 

 “LV Safe Harbor Interests” has the meaning set forth in Section 10.2.B
hereof. 
 “Majority in Interest of the Members” means Members (including the Managing Member, CLNY and any Controlled
Entity of either of them) entitled to vote on or consent to any matter holding more than fifty percent (50%) of all outstanding Membership Units held by all Members (including the Managing Member, CLNY and any Controlled Entity of either of
them) entitled to vote on or consent to such matter. 
 “Majority in Interest of the Non-Managing Members” means Members
(excluding the Managing Member, CLNY and any Controlled Entity of either of them) entitled to vote on or consent to any matter holding more than fifty percent (50%) of all outstanding Membership Units held by all Members (excluding the Managing
Member, CLNY and any Controlled Entity of either of them) entitled to vote on or consent to such matter. 
 “Managing
Member” means CLNY, or any of its successors or permitted assigns, or any subsequent successor or permitted assign, in its capacity as the managing member of the Company. 

“Member(s)” means (i) CLNY, (ii) CC, (iii) CCH, (iv) FHB LLC, (v) Saltzman and (vi) each other
Person that is, from time to time, admitted to the Company as a member in accordance with the terms of this Agreement and the Act, and any Substituted Member or Additional Member, each shown as such in the books and records of the Company, in each
case, that has not ceased to be a member of the Company pursuant to the Act and this Agreement, in such Person’s capacity as a member of the Company. 

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

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

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

“Membership Common Unit” means a fractional share of the Membership Interests of all Members issued pursuant to
Sections 4.1 and 4.2 hereof, but does not include any Company Junior Unit, Company Preferred Unit or any other Membership Unit specified in a Membership Unit Designation as being other than a Membership Common Unit. 

“Membership Common Unit Economic Balance” has the meaning set forth in Section 6.3.F hereof. 

“Membership Interest” means an ownership interest in the Company held by either a Non-Managing Member or the Managing Member
and includes any and all benefits to which the holder of such a Membership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. There may be
one or more classes or series of Membership Interests; however, notwithstanding that the Managing Member, CLNY and any other Member may have different rights and privileges as specified in this Agreement (including differences in rights and
privileges with respect to their Membership Interests), the 

  
 13 

 
Membership Interest held by the Managing Member, CLNY or any other Member and designated as being of a particular class or series shall not be deemed to be a separate class or series of
Membership Interest from a Membership Interest having the same designation as to class and series that is held by any other Member solely because such Membership Interest is held by the Managing Member, CLNY or any other Member having different
rights and privileges as specified under this Agreement. A Membership Interest may be expressed as a number of Membership Common Units, Company Preferred Units, Company Junior Unit or other Membership Units. 

“Membership Unit” means a Membership Common Unit, a Company Preferred Unit, a Company Junior Unit or any other fractional
share of the Membership Interests that the Managing Member has authorized pursuant to Section 4.1, Section 4.2 or Section 4.3 hereof. 

“Membership Unit Designation” has the meaning set forth in Section 4.2 hereof. 

“Membership Unit Distribution” has the meaning set forth in Section 4.5.A(ii) hereof. 

“Net Income” or “Net Loss” means, for each Fiscal Year of the Company, an amount equal to the Company’s
taxable income or loss for such year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included
in taxable income or loss), with the following adjustments: 
 (i) any income of the Company that is exempt from federal
income tax and not otherwise taken into account in computing Net Income (or Net Loss) pursuant to this definition of “Net Income” or “Net Loss” shall be added to (or subtracted from, as the case may be) such taxable income (or
loss); 
 (ii) any expenditure of the Company described in Code Section 705(a)(2)(B) or treated as a Code
Section 705(a)(2)(B) expenditure pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Income (or Net Loss) pursuant to this definition of “Net Income” or “Net
Loss,” shall be subtracted from (or added to, as the case may be) such taxable income (or loss); 
 (iii) in the event
the Gross Asset Value of any Company asset is adjusted pursuant to subsection (ii) or subsection (iii) of the definition of “Gross Asset Value,” the amount of such adjustment shall be taken into account as gain or loss from the
disposition of such asset for purposes of computing Net Income or Net Loss; 
 (iv) gain or loss resulting from any
disposition of property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such
property differs from its Gross Asset Value; 
 (v) in lieu of the depreciation, amortization and other cost recovery
deductions that would otherwise be taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year; 

(vi) to the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 734(b) or
Code Section 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts, the amount of such adjustment shall be treated as an item of gain (if the

  
 14 

 
adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) and shall be taken into account for purposes of computing Net Income or Net Loss; and

 (vii) notwithstanding any other provision of this definition of “Net Income” or “Net Loss,” any item
that is specially allocated pursuant to Section 6.3 hereof shall not be taken into account in computing Net Income or Net Loss. The amounts of the items of Company income, gain, loss or deduction available to be specially allocated pursuant to
Section 6.3 hereof shall be determined by applying rules analogous to those set forth in this definition of “Net Income” or “Net Loss.” 

“Net Proceeds” has the meaning set forth in Section 15.1.I hereof. 

“New Securities” means (i) any rights, options, warrants or convertible or exchangeable securities that entitle the
holder thereof to subscribe for or purchase, convert such securities into or exchange such securities for, REIT Shares, Capital Shares or Preferred Shares, excluding Preferred Shares and grants under the Stock Option Plans, or (ii) any Debt
issued by CLNY that provides any of the rights described in clause (i). 
 “Non-Managing Member(s)” means any Member
other than the Managing Member. 
 “Non-Managing Member Ancillary Agreement” means, with respect to any Non-Managing
Member, any other agreement entered into by such Non-Managing Member or any of its Affiliates or transferee thereof with CLNY, the Company or a Subsidiary of the Company relating to such Non-Managing Member’s Membership Units or any REIT Shares
or Capital Shares which such Non-Managing Member holds or has the rights to obtain. 
 “Nonrecourse Deductions” has the
meaning set forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Fiscal Year shall be determined in accordance with the rules of Regulations Section 1.704-2(c). 

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

“Notice of Redemption” means a Notice of Redemption substantially in the form of Exhibit B attached to this
Agreement. 
 “Offered Shares” has the meaning set forth in Section 15.1.I hereof. 

“Offering Units” has the meaning set forth in Section 15.1.I hereof. 

“Optionee” means a Person to whom a stock option is granted under any Stock Option Plan. 

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

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

“Ownership Limit” means the applicable restriction or restrictions on ownership of stock of CLNY imposed under the Charter.

  
 15 

 “Percentage Interest” means, with respect to each Member, as to any class or
series of Membership Interests, the fraction, expressed as a percentage, the numerator of which is the aggregate number of Membership Units of such class or series held by such Member and the denominator of which is the total number of Membership
Units of such class or series held by all Members. If not otherwise specified, “Percentage Interest” shall be deemed to refer to Membership Common Units. 

“Permitted Lender Transferee” has the meaning set forth in the definition of Permitted Transferee. 

“Permitted Transfer” means a Transfer by a Non-Managing Member of all or part of its Membership Interest (i) to any
Family Member, Controlled Entity or controlled Affiliate of such Member, or to any trust, partnership, corporation or limited liability company established and held for the direct or indirect benefit of a Family Member, provided that any such
Transfer shall not involve a disposition for value other than equity interests in any such trust, partnership, corporation or limited liability company; (ii) as required by applicable law or order; (iii) to a nominee or custodian of a
person or entity to whom a disposition or Transfer would be permitted under this Agreement; (iv) that such Non-Managing Member would be expressly authorized to make as a “Permitted Transfer” pursuant to a Non-Managing Member Ancillary
Agreement, disregarding any expiration or termination thereof; or (v) in the case of any Permitted Transferee that is a past or present officer or employee of (x) the Company, CLNY or their respective Subsidiaries or (y) CC, CCH or
Colony Realty Partners, LLC or their respective Subsidiaries, as may be, or may have been permitted pursuant to the applicable Non-Managing Member Ancillary Agreement to which such Membership Interests were subject at the time of the issuance of
such Membership Interests or to which such Permitted Transferee was party (taking into account subsequent amendments thereto), disregarding any expiration or termination of such Non-Managing Member Ancillary Agreement. 

“Permitted Transferee” means (i) any lender or lenders secured by a Pledge, or agents acting on their behalf, to whom
any Membership Interest is transferred pursuant to the exercise of remedies under a Pledge and any special purpose entities owned and used by such lenders or agents for the purpose of holding any such Membership Interest (each a “Permitted
Lender Transferee”), (ii) any Person, including any Third-Party Pledge Transferee designated by any lender or lenders secured by a Pledge, or agents acting on their behalf, to whom a Membership Interest is transferred pursuant to the
exercise of remedies under a Pledge, whether before or after one or more Permitted Lender Transferees take title to such Membership Interest and (iii) any other Person to whom any Membership Interest is transferred pursuant to a Permitted
Transfer. 
 “Person” means an individual or a corporation, partnership, trust, unincorporated organization, association,
limited liability company or other entity. 
 “Pledge” means a pledge by a Non-Managing Member of all or any portion of its
Membership Interest to one or more banks or lending institutions, or agents acting on their behalf, which are not Affiliates of such Non-Managing Member, as collateral or security for a bona fide loan or other extension of credit. 

“Preferred Share” means a share of stock of CLNY now or hereafter authorized, designated or reclassified that has dividend
rights, or rights upon liquidation, winding up and dissolution, that are superior or prior to the REIT Shares, including the Series A Preferred Shares and the Series B Preferred Shares. 

“Pricing Agreements” has the meaning set forth in Section 15.1.I hereof. 

  
 16 

 “Properties” means any assets and property of the Company and
“Property” means any one such asset or property. 
 “Publicly Traded” means having common equity
securities listed or admitted to trading on any U.S. national securities exchange. 
 “Qualified DRIP” means a dividend
reinvestment plan of CLNY that permits participants to acquire REIT Shares using the proceeds of dividends paid by CLNY. 

“Qualified Transferee” means an “accredited investor,” as defined in Rule 501 promulgated under the Securities Act.

 “Qualifying Party” means (a) a Member, (b) an Additional Member, (c) an Assignee who is the transferee of
a Member’s Membership Interest in a Permitted Transfer, or (d) a Person, including a lending institution as the pledgee of a Pledge, who is the transferee of a Member’s Membership Interest in a Permitted Transfer; provided,
however, that a Qualifying Party shall not include the Managing Member or CLNY. 
 “Redemption” has the meaning set
forth in Section 15.1.A hereof. 
 “Register” has the meaning set forth in Section 4.1 hereof. 

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

“Regulatory Allocations” has the meaning set forth in Section 6.3B(viii) hereof. 

“REIT” means a real estate investment trust within the meaning of Code Sections 856 through 860. 

“REIT Available Cash” means, as of any date of determination, all amounts held by CLNY (and not the Company and its
Subsidiaries) which would be available for distribution to the holders of REIT Shares (calculated in a manner substantially similar to the manner in which the Company calculates Available Cash, but excluding any distributions from the Company to be
made, or which have been made, to CLNY hereunder and without regard to any restriction on distribution imposed on CLNY by any third party). 

“REIT Member” means any Member which is (a) CLNY or any Affiliate of CLNY to the extent such Person has in place an
election to qualify as a REIT and (b) a “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)) or disregarded entity (determined for federal income tax purposes) of any such Person, referred to in clause (a).

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

“REIT Requirements” means the requirements for qualifying as a REIT under the Code and Regulations (the “REIT
Requirements”). 
 “REIT Share” means Class A REIT Shares and Class B REIT Shares. 

  
 17 

 “REIT Shares Amount” means a number of Class A REIT Shares equal to the
product of (a) the number of Tendered Units and (b) the Adjustment Factor; provided, however, that, in the event that CLNY issues to all holders of Class A REIT Shares as of a specified record date rights, options,
warrants or convertible or exchangeable securities entitling CLNY’s stockholders to subscribe for or purchase Class A REIT Shares, or any other securities or property (collectively, the “Rights”), with the record date for
such Rights issuance falling within the period starting on the date of the Notice of Redemption and ending on the day immediately preceding the Specified Redemption Date, which Rights will not be distributed before the relevant Specified Redemption
Date, then the REIT Shares Amount shall also include such Rights that a holder of that number of Class A REIT Shares would be entitled to receive, expressed, where relevant hereunder, as a number of Class A REIT Shares determined by the
Managing Member. 
 “Related Party” means, with respect to any Person, any other Person to whom ownership of shares of
CLNY’s stock would be attributed by or from such first Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)). 

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

“SEC” means the Securities and Exchange Commission. 

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

“Series A Company Preferred Unit” means a Company Preferred Unit with the designations, preferences and relative,
participating, optional or other special rights, powers and duties as are set forth in Exhibit E hereto. It is the intention of the Managing Member that each Series A Company Preferred Unit shall be substantially the economic equivalent of
one Series A Preferred Share. 
 “Series B Company Preferred Unit” means a Company Preferred Unit with the designations,
preferences and relative, participating, optional or other special rights, powers and duties as are set forth in Exhibit F hereto. It is the intention of the Managing Member that each Series B Company Preferred Unit shall be substantially the
economic equivalent of one Series B Preferred Share. 
 “Series A Preferred Share” means a share of 8.5% Series A
Cumulative Redeemable Perpetual Preferred Stock of CLNY, par value $0.01 per share. 
 “Series B Preferred Share” means a
share of 7.5% Series B Cumulative Redeemable Perpetual Preferred Stock of CLNY, par value $0.01 per share. 
 “Single Funding
Notice” has the meaning set forth in Section 15.1.I hereof. 
 “Specified Membership Units” means with
respect to each Excluded Property, the amount of Membership Common Units, Company Junior Unit and/or Company Preferred Units (as the case may be) which would have been issued to CLNY, pursuant to Section 4.3.B and Section 4.2 hereof, if
CLNY had contributed such Excluded Property on the date that such asset was acquired by CLNY or a wholly owned Subsidiary of CLNY, in exchange for Membership Units equal in value to the fair market value of such Excluded Property as of such date.

 “Specified Redemption Date” means the soonest practicable date after the receipt by the Managing Member of a Notice of
Redemption, but in any event not later than the tenth (10th) Business Day following the date of receipt; and provided, further, that, if the Managing Member and CLNY elect a Stock Offering Funding pursuant to
Section 15.1.I, such Specified Redemption Date shall be deferred until the next Business Day following the date of the closing of the Stock Offering Funding. 

  
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 “Stock Offering Funding” has the meaning set forth in Section 15.1.I hereof

 “Stock Offering Funding Amount” has the meaning set forth in Section 15.1.I hereof. 

“Stock Option Plans” means any stock option plan now or hereafter adopted by the Company or CLNY. 

“Subsidiary” means, with respect to a specified Person, any other Person in which more than 50% of the securities or other ownership
interests having the power to (a) elect a majority of the other Person’s board of directors or other governing body or (b) otherwise direct the business and policies of the other Person, are owned or controlled, directly or
indirectly, by (x) the specified Person, (y) the specified Person and one or more Subsidiaries of the specified Person, or (z) one or more Subsidiaries of the specified Person. For the avoidance of doubt, no fund, investment vehicle,
or investment product managed by CLNY or its Subsidiaries shall be deemed to be a Subsidiary of CLNY. 
 “Substituted
Member” means a Person who is admitted as a Member to the Company pursuant to Section 11.4 hereof. 
 “Successor
Shares Amount” has the meaning set forth in Section 11.7 hereof. 
 “Surviving Company” has the meaning set
forth in Section 11.7 hereof. 
 “Target Balance” has the meaning set forth in Section 6.3.F hereof. 

“Tax Items” has the meaning set forth in Section 6.4.A hereof. 

“Tax Matters Member” has the meaning set forth in Section 6.4.A hereof. 

“Tendered Units” has the meaning set forth in Section 15.1.A hereof. 

“Tendering Party” has the meaning set forth in Section 15.1.A hereof. 

“Termination Transaction” means any Transfer of all or any portion of CLNY’s Membership Interest or, if the Managing
Member is not CLNY, its interest in the Managing Member in connection with, or the other occurrence of, (a) a merger, consolidation or other combination involving CLNY or the Managing Member, on the one hand, and any other Person, on the other,
(b) a sale, lease, exchange or other transfer of all or substantially all of the assets of CLNY not in the ordinary course of its business, whether in a single transaction or a series of related transactions, (c) a reclassification,
recapitalization or similar change of the outstanding REIT Shares (other than a change in par value, or from par value to no par value, or as a result of a stock split, stock dividend or similar subdivision), (d) the adoption of any plan of
liquidation or dissolution of CLNY or the Managing Member, or (e) a Transfer of all or any portion of CLNY’s Membership Interest or, if the Managing Member is not CLNY, its interest in the Managing Member, other than a Transfer effected in
accordance with Section 11.2.A. 
 “Third-Party Pledge Transferee” means a Qualified Transferee, other than a
Permitted Lender Transferee, that acquires a Membership Interest pursuant to the exercise of remedies by Permitted Lender Transferees under a Pledge and that agrees to be bound by the terms and conditions of this Agreement. 

  
 19 

 “Transaction” has the meaning set forth in Section 4.6.F hereof. 

“Transaction Consideration” has the meaning set forth in Section 11.7 hereof. 

“Transfer” means any sale, assignment, bequest, conveyance, devise, gift (outright or in trust), pledge, encumbrance,
hypothecation, mortgage, exchange, transfer or other disposition or act of alienation, whether voluntary or involuntary or by operation of law; provided, however, that when the term is used in Article 11 and Section 13.7
hereof, unless otherwise indicated therein, “Transfer” does not include (a) any Redemption of Membership Common Units by the Company, or acquisition of Tendered Units by CLNY, pursuant to Section 15.1 hereof, or
(b) any redemption of Membership Units pursuant to any Membership Unit Designation. The terms “Transferred” and “Transferring” have correlative meanings. 

“Unvested LTIP Units” has the meaning set forth in Section 4.5.C(i) hereof. 

“Valuation Date” means the date of receipt by the Managing Member of a Notice of Redemption pursuant to Section 15.1
herein, or such other date as specified herein, or, if such date is not a Business Day, the immediately preceding Business Day. 

“Value” means, on any date with respect to a REIT Share, the average of the daily Market Prices for the ten
(10) consecutive trading days immediately preceding the Valuation Date (except that the Market Price for the trading day immediately preceding the date of exercise of a stock option under any Stock Option Plans shall be substituted for such
average of daily market prices for purposes of Section 4.4 hereof). The term “Market Price” on any date means, with respect to either Class A REIT Shares or Class B REIT Shares, the last sale price for a Class A REIT Share,
regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for a Class A REIT Shares, in either case, as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock Exchange or, if Class A REIT Shares are not listed or admitted to trading on the New York Stock Exchange, as reported on the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which Class A REIT Shares are listed or admitted to trading or, if Class A REIT Shares are not listed or admitted to trading on any national
securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system that may then be in use or, if Class A
REIT Shares are not quoted by any such system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in Class A REIT Shares selected by the Managing Member or, in the event that no trading
price is available for Class A REIT Shares, the fair market value of Class A REIT Shares, as determined in good faith by the Managing Member. In the event that the REIT Shares Amount includes Rights (as defined in the definition of
“REIT Shares Amount”) that a holder of REIT Shares would be entitled to receive, then the Value of such Rights shall be determined by the Managing Member acting in good faith on the basis of such quotations and other information as it
considers, in its reasonable judgment, appropriate. 
 “Vested LTIP Units” has the meaning set forth in
Section 4.5.C(i) hereof. 
 “Vesting Agreement” means each or any, as the context implies, Equity Plan entered into by
an LTIP Unitholder upon acceptance of an award of LTIP Units under an Equity Plan. 
 “Vesting Date” has the meaning set
forth in Section 4.4 hereof. 
 “Withdrawing Members” has the meaning set forth in Section 15.1.I hereof. 

  
 20 

 Section 1.2 Interpretation and Usage. (a) In this Agreement, unless there is a
clear contrary intention: (i) when a reference is made to an article, a section, an exhibit or a schedule, that reference is to an article, a section, an exhibit or a schedule of or to this Agreement; (ii) the singular includes the plural
and vice versa; (iii) reference to any agreement, document or instrument means that agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (iv) reference to any
statute, code, rule, or regulation means that statute, code, rule or regulation as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and
reference to any section or other provision of any statute, code, rule or regulation means that section or provision from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of
that section or provision; (v) “hereunder,” “hereof,” “hereto,” and words of similar import will be deemed references to this Agreement as a whole and not to any particular article, section or other provision of
this Agreement; (vi) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; (vii) references to agreements, documents or instruments
will be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto; and (viii) the terms “writing,” “written” and words of similar import will be deemed to include communications and documents in
e-mail, fax or any other similar electronic or documentary form. 
 ARTICLE 2 

ORGANIZATIONAL MATTERS 

Section 2.1 Formation. The Company is a limited liability company previously formed, and continued pursuant to the provisions of
the Act and upon the terms and subject to the conditions set forth in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Members and the administration and termination of the Company shall be
governed by the Act. The Membership Interest of each Member shall be personal property for all purposes. 
 Section 2.2 Name.
The name of the Company is “Colony Capital Operating Company, LLC”. The Company’s business may be conducted under any other name or names deemed advisable by the Managing Member, including the name of the Managing Member or any
Affiliate thereof. The words “Limited Liability Company,” “L.L.C.,” “LLC” or similar words or letters shall be included in the Company’s name where necessary for the purposes of complying with the laws of any
jurisdiction that so requires. The Managing Member may change the name of the Company at any time and from time to time. 

Section 2.3 Principal Office and Resident Agent. The address of the principal office of the Company in the State of Delaware is
located at 2711 Centerville Road, Suite 400, Wilmington, County of New Castle, Delaware 19808, and the name and address of the resident agent of the Company in the State of Delaware are the Corporation Service Company, 2711 Centerville Road, Suite
400, Wilmington, County of New Castle, Delaware 19808, or such other principal office and resident agent as the Managing Member may from time to time designate. The Company may maintain offices at such other place or places within or outside the
State of Delaware as the Managing Member may approve. 

  
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 Section 2.4 Power of Attorney. 

A. Each Member and Assignee hereby irrevocably constitutes and appoints the Managing Member, any Liquidator, and authorized officers and
attorneys-in-fact of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead to: 

(1) execute, swear to, seal, acknowledge, deliver, file and record in the appropriate public offices (a) all
certificates, documents and other instruments (including this Agreement and the Certificate and all amendments, supplements or restatements thereof) that the Managing Member or the Liquidator deems appropriate or necessary to form, qualify or
continue the existence or qualification of the Company as a limited liability company (or a company in which the members have limited liability to the extent provided by applicable law) in the State of Delaware and in all other jurisdictions in
which the Company may conduct business or own property; (b) all instruments that the Managing Member or any Liquidator deems appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement in accordance
with its terms; (c) all conveyances and other instruments or documents that the Managing Member or the Liquidator deems appropriate or necessary to reflect the dissolution and liquidation of the Company pursuant to the terms of this Agreement,
including a certificate of cancellation; (d) all conveyances and other instruments or documents that the Managing Member or the Liquidator deems appropriate or necessary to reflect the distribution or exchange of assets of the Company pursuant
to the terms of this Agreement; (e) all instruments relating to the admission, acceptance, withdrawal, removal or substitution of any Member pursuant to the terms of this Agreement or the Capital Contribution of any Member; and (f) all
certificates, documents and other instruments relating to the determination of the rights, preferences and privileges relating to Membership Interests; and 

(2) execute, swear to, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments the
Managing Member or any Liquidator determines in its sole and absolute discretion are appropriate, necessary or desirable to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action that is made or given by the
Members hereunder or is consistent with the terms of this Agreement or to effectuate the terms or intent of this Agreement. 
 Nothing contained herein
shall be construed as authorizing the Managing Member or any Liquidator to amend this Agreement except in accordance with Section 14.2 hereof or as may be otherwise expressly provided for in this Agreement. 

B. The foregoing power of attorney is hereby declared to be irrevocable and a special power coupled with an interest, in recognition of the
fact that each of the Members and Assignees will be relying upon the power of the Managing Member or the Liquidator to act as contemplated by this Agreement in any filing or other action by it on behalf of the Company, and it shall survive and not
be affected by the subsequent Incapacity of any Member or Assignee and the Transfer of all or any portion of such Person’s Membership Units or Membership Interest (as the case may be) and shall extend to such Person’s heirs, successors,
assigns and personal representatives. Each such Member and Assignee hereby agrees to be bound by any representation made by the Managing Member or the Liquidator, acting in good faith pursuant to such power of attorney; and each such Member and
Assignee hereby waives any and all defenses that may be available to contest, negate or disaffirm the action of the Managing Member or the Liquidator, taken in good faith under such power of attorney. Each Member and Assignee shall execute and
deliver to the Managing Member or the Liquidator, within fifteen (15) days after receipt of the Managing Member’s or the Liquidator’s request therefor, such further designation, powers of attorney and other instruments as the Managing
Member or the Liquidator (as the case may be) deems necessary to 

  
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effectuate this Agreement and the purposes of the Company. Notwithstanding anything else set forth in this Section 2.4.B, no Member shall incur any personal liability for any action of the
Managing Member or the Liquidator taken under such power of attorney. 
 Section 2.5 Term. The term of the Company commenced on
March 25, 2011, the date that the original Certificate was filed with the office of the Secretary of State of the State of Delaware in accordance with the Act, and shall continue indefinitely unless the Company is dissolved sooner pursuant to
the provisions of Article 13 hereof or as otherwise provided by law. 
 ARTICLE 3 

PURPOSE 
 Section 3.1
Purpose and Business. The purpose and nature of the Company is to conduct any business, enterprise or activity permitted by or under the Act; provided, however, such business and arrangements and interests shall be limited to and conducted in
such a manner as to permit the Managing Member, in its sole and absolute discretion, at all times to be classified as a REIT unless CLNY, in its sole and absolute discretion, has chosen to cease to qualify as a REIT or has chosen not to attempt to
qualify as a REIT for any reason or for reasons whether or not related to the business conducted by the Company. Without limiting CLNY’s right in its sole and absolute discretion to cease qualifying as a REIT, the Members acknowledge that the
status of CLNY as a REIT inures to the benefit of all Members and not solely to CLNY or its Affiliates. In connection with the foregoing, the Company shall have full power and authority to enter into, perform and carry out contracts of any kind, to
borrow and lend money and to issue and guarantee evidence of indebtedness, whether or not secured by mortgage, deed of trust, pledge or other lien and, directly or indirectly, to acquire additional Properties necessary, useful or desirable in
connection with its business. 
 Section 3.2 Powers. 

A. The Company shall have the power to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient
for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the Company; provided, however, the Company shall not take, and shall refrain from taking, any action that, in the judgment of
the Managing Member, in its sole and absolute discretion, (i) could adversely affect the ability of CLNY to continue to qualify as a REIT, (ii) could cause the Company not to be treated as a partnership or disregarded entity for federal
income tax purposes, (iii) could subject CLNY to any additional taxes under Code Section 857 or Code Section 4981 or any other related or successor provision of the Code or (iv) could violate any law or regulation of any
governmental body or agency having jurisdiction over CLNY, its securities or the Company. 
 Section 3.3 Limited Authority and
Liability of Members. The Company is a limited liability company formed pursuant to the Act, and this Agreement shall not be deemed to create a company, venture or partnership between or among the Members or any other Persons with respect to any
activities whatsoever other than the activities specified in Section 3.1 hereof. Except as otherwise provided in this Agreement, no Member shall have any authority to act for, bind, commit or assume any obligation or responsibility on behalf of
the Company, its properties or any other Member. No Member, in its capacity as a Member under this Agreement, shall be responsible or liable for any indebtedness or obligation of another Member, nor shall the Company be responsible or liable for any
indebtedness or obligation of any Member, incurred either before or after the execution and delivery of this Agreement by such Member, except as to those responsibilities, liabilities, indebtedness or obligations incurred pursuant to and as limited
by the terms of this Agreement and the Act. 

  
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 Section 3.4 Representations and Warranties by the Members. 

A. Each Member that is an individual (including each Additional Member or Substituted Member as a condition to becoming an Additional Member
or a Substituted Member) represents and warrants to, and covenants with, the Company, the Managing Member and each other Member that (i) the consummation of the transactions contemplated by this Agreement to be performed by such Member will not
result in a breach or violation of, or a default under, any material agreement by which such Member or any of such Member’s property is bound, or any statute, regulation, order or other law to which such Member is subject, (ii) except as
disclosed in writing to the Managing Member, such Member is neither a “foreign person,” within the meaning of Code Section 1445(f) nor a “foreign partner,” within the meaning of Code Section 1446(e), (iii) to such
Member’s knowledge, such Member does not, and for so long as it is a Member will not, own, directly or indirectly, (a) nine percent (9%) or more of the total combined voting power of all classes of stock entitled to vote, or nine
percent (9%) or more of the total number of shares of all classes of stock, of any corporation that is a direct or indirect tenant of any of (I) CLNY, determined for purposes of Code Section 856(d)(2)(B), (II) the Company,
determined for purposes of Code Section 7704(d)(3), (III) any Affiliated REIT or (IV) any partnership, corporation, or other entity of which CLNY or any “qualified REIT subsidiary” (within the meaning of Code
Section 856(i)(2)), with respect to CLNY, or the Company is a member, determined for purposes of Code Section 856(d)(2)(B) and Code Section 7704(d)(3), or (b) an interest of nine percent (9%) or more in the assets or net
profits of any direct or indirect tenant of any of (I) CLNY, determined for purposes of Code Section 856(d)(2)(B), (II) the Company, determined for purposes of Code Section 7704(d)(3), (III) any Affiliated REIT or (IV) any
partnership, corporation, or other entity of which CLNY or any “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)), with respect to CLNY, or the Company is a member, determined for purposes of Code
Section 856(d)(2)(B) and Code Section 7704(d)(3); provided, however, that each Member may exceed any of the nine percent limits (9%) set forth in this clause (iii) if such Member obtains the written consent of the
Managing Member prior to exceeding any such limits; provided, further, that in no event shall any Member own, directly or indirectly, more than nine point eight percent (9.8%) of the stock described in clause (iii)(a) above
or more than nine point eight percent (9.8%) of the assets or net profits described in clause (iii)(b) above, and (iv) this Agreement is binding upon, and enforceable against, such Member in accordance with its terms. 

B. Each Member that is not an individual (including each Additional Member or Substituted Member as a condition to becoming an Additional
Member or a Substituted Member) represents and warrants to, and covenants with, the Company, the Managing Member and each other Member that (i) all transactions contemplated by this Agreement to be performed by it have been duly authorized by
all necessary action, including that of its managing member(s), general partner(s), committee(s), trustee(s), beneficiaries, directors and/or stockholder(s) (as the case may be) as required, (ii) the consummation of such transactions shall not
result in a breach or violation of, or a default under, its partnership or operating agreement, trust agreement, charter or bylaws (as the case may be), any material agreement by which such Member or any of such Member’s properties or any of
its partners, members, beneficiaries, trustees or stockholders (as the case may be) is or are bound, or any statute, regulation, order or other law to which such Member or any of its partners, members, trustees, beneficiaries or stockholders (as the
case may be) is or are subject, (iii) except as disclosed in writing to the Managing Member, such Member is neither a “foreign person,” within the meaning of Code Section 1445(f), nor a “foreign partner,” within the
meaning of Code Section 1446(e), (iv) such Member does not, and for so long as it is a Member will not, own, directly or indirectly, (a) nine percent (9%) or more of the total combined voting power of all classes of stock
entitled to vote, or nine percent (9%) or more of the total number of shares of all classes of stock, of any corporation that is a direct or indirect tenant of any of (I) CLNY, determined for purposes of Code Section 856(d)(2)(B),
(II) the Company, determined for purposes of Code Section 7704(d)(3), (III) any Affiliated REIT or (IV) any partnership, 

  
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corporation, or other entity of which CLNY or any “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)), with respect to CLNY, or the Company is a member,
determined for purposes of Code Section 856(d)(2)(B) and Code Section 7704(d)(3), or (b) an interest of nine percent (9%) or more in the assets or net profits of any direct or indirect tenant of any of (I) CLNY, determined
for purposes of Code Section 856(d)(2)(B), (II) the Company, determined for purposes of Code Section 7704(d)(3), (III) any Affiliated REIT or (IV) any partnership, corporation, or other entity of which CLNY or any “qualified REIT
subsidiary” (within the meaning of Code Section 856(i)(2)), with respect to CLNY, or the Company is a member, determined for purposes of Code Section 856(d)(2)(B) and Code Section 7704(d)(3); provided, however, that each Member
may exceed any of the nine percent limits (9%) set forth in this clause (iii) if such Member obtains the written consent of the Managing Member prior to exceeding any such limits; provided, further, that in no event shall any Member own,
directly or indirectly, more than nine point eight percent (9.8%) of the stock described in clause (iii)(a) above or more than nine point eight percent (9.8%) of the assets or net profits described in clause (iii)(b) above, and
(iv) this Agreement is binding upon, and enforceable against, such Member in accordance with its terms. 
 C. Each Member (including
each Substituted Member, as a condition to becoming a Substituted Member) represents and warrants that it is an “accredited investor,” as defined in Rule 501 promulgated under the Securities Act, and represents, warrants and agrees that it
has acquired and continues to hold its interest in the Company for its own account for investment purposes only and not for the purpose of, or with a view toward, the resale or distribution of all or any part thereof, and not with a view toward
selling or otherwise distributing such interest or any part thereof at any particular time or under any predetermined circumstances. Each Member further represents and warrants that it is a sophisticated investor, able and accustomed to handling
sophisticated financial matters for itself, particularly real estate investments, and that it has a sufficiently high net worth that it does not anticipate a need for the funds that it has invested in the Company in what it understands to be a
highly speculative and illiquid investment. Notwithstanding the foregoing, the representations and warranties contained in the first sentence of this Section 3.4.C shall not apply to any Permitted Lender Transferee, it being understood that a
Permitted Lender Transferee may be subject to a legal obligation to sell, distribute or otherwise dispose of any Membership Interest acquired pursuant to the exercise of remedies under a Pledge; provided, however, that such Permitted
Lender Transferee must be a Qualified Transferee. 
 D. The representations and warranties contained in Sections 3.4.A, 3.4.B and 3.4.C
hereof shall survive the execution and delivery of this Agreement by each Member (and, in the case of an Additional Member or a Substituted Member, the admission of such Additional Member or Substituted Member as a Member in the Company) and the
dissolution, liquidation and termination of the Company. 
 E. Each Member (including each Substituted Member as a condition to becoming a
Substituted Member) hereby acknowledges that no representations as to potential profit, cash flows, funds from operations or yield, if any, in respect of the Company or the Managing Member have been made by any Member or any employee or
representative or Affiliate of any Member, and that projections and any other information, including financial and descriptive information and documentation, that may have been in any manner submitted to such Member shall not constitute any
representation or warranty of any kind or nature, express or implied. 
 F. Notwithstanding the foregoing, the Managing Member may permit
the modification of any of the representations and warranties contained in Sections 3.4.A, 3.4.B and 3.4.C above as applicable to any Member (including any Additional Member or Substituted Member or any transferee of either) provided
that such representations and warranties, as modified, shall be set forth in either (i) a Membership Unit Designation applicable to the Membership Units held by such Member or (ii) a separate writing addressed to the Company and the
Managing Member. 

  
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 ARTICLE 4 

CAPITAL CONTRIBUTIONS 

Section 4.1 Capital Contributions of the Members. Each Member has previously made Capital Contributions to the Company.
Immediately upon execution of this Agreement, all existing limited liability company interests of the Company issued and outstanding as of immediately prior to the execution of this Agreement automatically shall be converted into (i) Membership
Common Units, (ii) Series A Company Preferred Units, and (iii) Series B Company Preferred Units, in each case as set forth in the Register. Except as provided by law or in Section 4.2, 4.3, or 10.4 hereof, the Members shall have no
obligation or, except with the prior written consent of the Managing Member, right to make any Capital Contributions or loans to the Company. The Managing Member shall cause to be maintained in the principal business office of the Company, or such
other place as may be determined by the Managing Member, the books and records of the Company, which shall include, among other things, a register containing the name, address and number of Membership Units of each Member, and such other information
as the Managing Member may deem necessary or desirable (the “Register”). The Register shall not be deemed part of this Agreement. The Managing Member shall from time to time update the Register as necessary to accurately reflect the
information therein, including as a result of any sales, exchanges or other Transfers, or any redemptions, issuances or similar events involving Membership Units. Any reference in this Agreement to the Register shall be deemed a reference to the
Register as in effect from time to time. Subject to the terms of this Agreement, the Managing Member may take any action authorized hereunder in respect of the Register without any need to obtain the consent of any other Member. No action of any
Non-Managing Member shall be required to amend or update the Register. Except as required by law, no Non-Managing Member shall be entitled to receive a copy of the information set forth in the Register relating to any Member other than itself.
Schedule I hereto sets forth the respective Capital Accounts of the Members as of the date hereof. 
 Section 4.2 Issuances of
Additional Membership Interests. Subject to the rights of any Holder of any Membership Interest set forth in a Membership Unit Designation: 

A. General. Subject to the provisions of this Agreement (including Section 4.2.D hereof), the Managing Member is hereby authorized
to cause the Company to issue additional Membership Interests, in the form of Membership Units, for any Company purpose, at any time or from time to time, to the Members (including the Managing Member and CLNY) or to other Persons, and to admit such
Persons as Additional Members, for such consideration and on such terms and conditions as shall be established by the Managing Member, all without the approval of any Member or any other Person. Without limiting the foregoing, the Managing Member is
expressly authorized to cause the Company to issue Membership Units (i) upon the conversion, redemption or exchange of any Debt, Membership Units or other securities issued by the Company, (ii) for less than fair market value,
(iii) for no consideration, (iv) in connection with any merger of any other Person into the Company, or (v) upon the contribution of property or assets to the Company. Any additional Membership Interests may be issued in one or more
classes, or one or more series of any of such classes, with such designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption (including
rights that may be senior or otherwise entitled to preference over existing Membership Interests) as shall be determined by the Managing Member, in its sole and absolute discretion and without the approval of any Non-Managing Member or any other
Person, and set forth in a written document thereafter attached to and made an exhibit to this Agreement, which exhibit shall be an amendment to this Agreement and shall be incorporated herein by this reference (each, a “Membership Unit
Designation”) without the approval of any Non-Managing Member or any other Person. Without limiting the generality of the foregoing, the Managing Member shall have authority to specify, in its sole and absolute discretion: (a) the
allocations of items of Company income, gain, loss, deduction and credit to each such class or series of Membership Interests; (b) the right 

  
 26 

 
of each such class or series of Membership Interests to share (on a pari passu, junior or preferred basis) in Membership Unit Distributions; (c) the rights of each such class or series of
Membership Interests upon dissolution and liquidation of the Company; (d) the voting rights, if any, of each such class or series of Membership Interests; and (e) the conversion, redemption or exchange rights applicable to each such class
or series of Membership Interests. Except to the extent specifically set forth in any Membership Unit Designation, a Membership Interest of any class or series other than a Membership Common Unit shall not entitle the holder thereof to vote on, or
consent to, any matter. Upon the issuance of any additional Membership Interest, the Managing Member shall amend the Register and the books and records of the Company as appropriate to reflect such issuance. 

B. Issuances to the Managing Member or CLNY. No additional Membership Units shall be issued to CLNY unless (i) the additional
Membership Units are issued to all Members holding Membership Common Units in proportion to their respective Percentage Interests in the Membership Common Units, (ii) (a) the additional Membership Units are (x) Membership Common Units
issued in connection with an issuance of REIT Shares, or (y) Company Equivalent Units (other than Membership Common Units) issued in connection with an issuance of Capital Shares, Preferred Shares, New Securities or other interests in CLNY
(other than REIT Shares), and (b) CLNY contributes to the Company the cash proceeds or other consideration received in connection with the issuance of such REIT Shares, Capital Shares, Preferred Shares, New Securities or other interests in
CLNY, (iii) the additional Membership Units are issued upon the conversion, redemption or exchange of Debt, Membership Units or other securities issued by the Company, or (iv) the additional Membership Units are issued pursuant to
Section 4.3.B, Section 4.3.E, Section 4.4, Section 4.7 or Section 4.11. 
 C. No Preemptive Rights. Except
as expressly provided in this Agreement or in any Membership Unit Designation, no Person, including any Member or Assignee, shall have any preemptive, preferential, participation or similar right or rights to subscribe for or acquire any Membership
Interest. 
 D. Notwithstanding any provision to the contrary contained in this Agreement but subject to the rights of any Holder of any
Membership Interest set forth in a Membership Unit Designation, the Company shall not issue, and the Managing Member shall not authorize the issuance of, (i) any Membership Interests issued to CLNY that do not have CLNY Equivalent Shares that
are concurrently issued by CLNY for the equivalent contribution to CLNY of cash, property or assets, which are subsequently contributed by CLNY to the Company, or (ii) any Membership Interests unless approved by the Board of Directors. 

Section 4.3 Additional Funds and Capital Contributions. 

A. General. The Managing Member may, at any time and from time to time, determine that the Company requires additional funds
(“Additional Funds”) for the acquisition of additional Properties, for the redemption of Membership Units or for such other purposes as the Managing Member may determine. Additional Funds may be obtained by the Company, at the
election of the Managing Member, in any manner provided in, and in accordance with, the terms of this Section 4.3 without the approval of any Member or any other Person. 

B. Additional Capital Contributions. The Managing Member, on behalf of the Company, may obtain any Additional Funds by accepting
Capital Contributions from any Members or other Persons. In connection with any such Capital Contribution (of cash or property), the Managing Member is hereby authorized to cause the Company from time to time to issue additional Membership Units (as
set forth in Section 4.2 above) in consideration therefor, and the Percentage Interests of the Managing Member and the other Members shall be adjusted to reflect the issuance of such additional Membership Units. 

  
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 C. Loans by Third Parties. The Managing Member, on behalf of the Company, may obtain any
Additional Funds by causing the Company to incur Debt to any Person (other than, except as contemplated in Section 4.3.D, the Managing Member or CLNY) upon such terms as the Managing Member determines appropriate, including making such Debt
convertible, redeemable or exchangeable for Membership Units; provided, however, that the Company shall not incur any such Debt if any Member would be personally liable for the repayment of such Debt (unless such Member otherwise
agrees). 
 D. Managing Member and CLNY Member Loans. The Managing Member, in its sole and absolute discretion on behalf of the
Company, may obtain any Additional Funds by causing the Company to incur Debt to the Managing Member and/or CLNY (each, a “CLNY Member Loan”) if (i) such Debt is, to the extent permitted by law, on substantially the same terms
and conditions (including interest rate, repayment schedule, and conversion, redemption, repurchase and exchange rights) as Funding Debt incurred by the Managing Member or CLNY, as applicable, the net proceeds of which are loaned to the Company to
provide such Additional Funds, or (ii) such Debt is on terms and conditions no less favorable to the Company than would be available to the Company from a third party; provided, however, that the Company shall not incur any such
Debt if any Member would be personally liable for the repayment of such Debt (unless such Member otherwise agrees). 
 E. Issuance of
Securities by CLNY. CLNY shall not issue any additional REIT Shares, Preferred Shares or New Securities unless CLNY contributes, substantially concurrently with the receipt thereof, the cash proceeds or other consideration received from the
issuance of such additional REIT Shares, Preferred Shares or New Securities (as the case may be), and from the exercise of the rights contained in any such additional New Securities, to the Company in exchange for (x) in the case of an issuance
of REIT Shares, Membership Common Units, or (y) in the case of an issuance of Preferred Shares or New Securities, Company Equivalent Units; provided, however, that notwithstanding the foregoing, CLNY may issue REIT Shares,
Preferred Shares or New Securities (a) pursuant to Section 4.4 or Section 15.1.B hereof, (b) pursuant to a dividend or distribution (including any stock split) of REIT Shares, Preferred Shares or New Securities to all holders of
REIT Shares, Preferred Shares or New Securities (as the case may be), (c) upon a conversion, redemption or exchange of Preferred Shares, (d) upon a conversion, redemption, exchange or exercise of New Securities, or (e) in connection
with an acquisition of Membership Units or a property or other asset to be owned, directly or indirectly, by CLNY. In the event of any issuance of additional REIT Shares, Preferred Shares or New Securities by CLNY, and the contribution to the
Company, by CLNY, of the cash proceeds or other consideration received from such issuance, the Company shall pay CLNY’s expenses associated with such issuance, including any underwriting discounts or commissions. In the event that CLNY issues
any additional REIT Shares, Capital Shares, Preferred Shares, New Securities or other interests in CLNY (other than REIT Shares) and contributes the cash proceeds or other consideration received from the issuance thereof to the Company, the Company
is authorized to and shall issue a number of Membership Common Units or Company Equivalent Units to CLNY equal to the number of REIT Shares, Capital Shares, Preferred Shares, New Securities or other interests so issued, divided by the
Adjustment Factor then in effect, in accordance with this Section 4.3.E without any further act, approval or vote of any Member or any other Persons. 

  
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 Section 4.4 Stock Option Plans. 

A. Options Granted to Persons other than Company Employees. If at any time or from time to time, in connection with any Stock Option
Plan, an option to purchase REIT Shares granted to a Person other than a Company Employee is duly exercised: 
 (1) CLNY,
shall, as soon as practicable after such exercise, make a Capital Contribution to the Company in an amount equal to the exercise price paid to CLNY by such exercising party in connection with the exercise of such stock option. 

(2) Notwithstanding the amount of the Capital Contribution actually made pursuant to Section 4.4.A(1) hereof, CLNY shall
be deemed to have contributed to the Company as a Capital Contribution an amount equal to the Value of a REIT Share as of the date of exercise, multiplied by the number of REIT Shares then being issued in connection with the exercise
of such stock option. In exchange for such Capital Contribution, the Company shall issue a number of Membership Common Units to CLNY equal to the quotient of (a) the number of REIT Shares issued in connection with the exercise of such stock
option, divided by (b) the Adjustment Factor then in effect. 
 B. Options Granted to Company Employees. If at any
time or from time to time, in connection with any Stock Option Plan, an option to purchase REIT Shares granted to a Company Employee is duly exercised: 

(1) CLNY shall sell to the Company, and the Company shall purchase from CLNY, the number of REIT Shares as to which such stock
option is being exercised. The purchase price per REIT Share for such sale of REIT Shares to the Company shall be the Value of a REIT Share as of the date of exercise of such stock option. 

(2) The Company shall sell to the Optionee (or if the Optionee is an employee of a Company Subsidiary, the Company shall sell
to such Company Subsidiary, which in turn shall sell to the Optionee), for a cash price per share equal to the Value of a REIT Share at the time of the exercise, a number of REIT Shares equal to (a) the exercise price paid to CLNY by the
exercising party in connection with the exercise of such stock option, divided by (b) the Value of a REIT Share at the time of such exercise. 

(3) The Company shall transfer to the Optionee (or if the Optionee is an employee of a Company Subsidiary, the Company shall
transfer to such Company Subsidiary, which in turn shall transfer to the Optionee) at no additional cost, as additional compensation, a number of REIT Shares equal to the number of REIT Shares described in Section 4.4.B(1) hereof, less
the number of REIT Shares described in Section 4.4.B(2) hereof. 
 (4) CLNY shall, as soon as practicable after such
exercise, make a Capital Contribution to the Company of an amount equal to the proceeds received (excluding any payment in respect of payroll taxes or other withholdings) by CLNY pursuant to Section 4.4.B(1) in connection with the exercise of
such stock option. In exchange for such Capital Contribution, the Company shall issue a number of Membership Common Units to CLNY equal to the quotient of (a) the number of REIT Shares issued in connection with the exercise of such stock
option, divided by (b) the Adjustment Factor then in effect. 
 C. Restricted Stock Granted to Company Employees.
If at any time or from time to time, in connection with any Equity Plan (other than a Stock Option Plan), any REIT Shares are issued to a Company Employee (including any REIT Shares that are subject to forfeiture in the event such Company Employee
terminates his employment by the Company or a Company Subsidiary) in consideration for services performed for the Company or a Company Subsidiary: 

(1) CLNY shall issue such number of REIT Shares as are to be issued to the Company Employee in accordance with the Equity
Plan; 

  
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 (2) the following events will be deemed to have occurred: (a) CLNY shall be
deemed to have sold such shares to the Company (or if the Company Employee is an employee or other service provider of a Company Subsidiary, to such Company Subsidiary) for a purchase price equal to the Value of such shares, (b) the Company (or
such Company Subsidiary) shall be deemed to have delivered the shares to the Company Employee, (c) CLNY shall be deemed to have contributed the purchase price to the Company as a Capital Contribution, and (d) if the Company Employee is an
employee of a Company Subsidiary, the Company shall be deemed to have contributed such amount to the capital of the Company Subsidiary; and 

(3) the Company shall issue to CLNY a number of Membership Common Units equal to the number of newly issued REIT Shares,
divided by the Adjustment Factor then in effect, in consideration for the deemed Capital Contribution pursuant to Section 4.4.C.(2)(c). 

D. Restricted Stock Granted to Persons other than Company Employees. If at any time or from time to time, in connection with any Equity
Plan (other than a Stock Option Plan), any REIT shares are issued to a Person other than a Company Employee in consideration for services performed for CLNY, the Company or a Company Subsidiary: 

(1) CLNY shall issue such number of REIT Shares as are to be issued to such Person in accordance with the Equity Plan; and

 (2) CLNY shall be deemed to have contributed the Value of such REIT Shares to the Company as a Capital Contribution, and
the Company shall issue to CLNY a number of newly issued Membership Common Units equal to the number of newly issued REIT Shares, divided by the Adjustment Factor then in effect. 

E. Future Stock Incentive Plans. Nothing in this Agreement shall be construed or applied to preclude or restrain the Managing Member or
CLNY from adopting, modifying or terminating stock incentive plans for the benefit of employees, directors or other business associates of the Managing Member, CLNY, the Company or any of their Affiliates. The Members acknowledge and agree that, in
the event that any such plan is adopted, modified or terminated by the Managing Member or CLNY, amendments to this Section 4.4 may become necessary or advisable and that any approval or Consent to any such amendments requested by the Managing
Member or CLNY shall be deemed granted. 
 F. Issuance of Membership Common Units. The Company is expressly authorized to issue
Membership Common Units in the numbers specified in this Section 4.4 without any further act, approval or vote of any Member or any other Persons. 

Section 4.5 LTIP Units. 

A. Issuance of LTIP Units. The Managing Member may from time to time issue LTIP Units, in one or more classes or series established in
accordance with Section 4.2, to Persons who provide services to the Company, for such consideration as the Managing Member may determine to be appropriate, and admit such Persons as Members. Any provision herein relating to LTIP Units or LTIP
Unitholders may be varied by the provisions applicable to an individual class or series of LTIP Units as set forth in the applicable Membership Unit Designation. Except to the extent a Capital Contribution is

  
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made with respect to an LTIP Unit, each LTIP Unit is intended to qualify as a “profits interest” in the Company within the meaning of the Code, the Regulations, and any published
guidance by the IRS with respect thereto. Subject to the following provisions of this Section 4.5 and the special provisions of Sections 4.6, 5.7 and 6.3.F, LTIP Units shall be treated as Membership Common Units, with all of the rights,
privileges and obligations attendant thereto. For purposes of computing the Members’ Percentage Interests, holders of LTIP Units shall be treated as holders of Membership Common Units and LTIP Units shall be treated as Membership Common Units.
In particular, the Company shall maintain at all times a one-to-one correspondence between LTIP Units and Membership Common Units for conversion, distribution and other purposes, including complying with the following procedures: 

(i) If an Adjustment Event occurs, then except as set forth in the applicable Membership Unit Designation, the Managing Member
shall make a corresponding adjustment to the LTIP Units to maintain the one-to-one correspondence between Membership Common Units and LTIP Units as existed prior to such Adjustment Event. “Adjustment Events” means any of the
following events (A) the Company makes a distribution on all outstanding Membership Common Units in Membership Units to the extent the LTIP Unitholder did not participate in the distribution, (B) the Company subdivides the outstanding
Membership Common Units into a greater number of units or combines the outstanding Membership Common Units into a smaller number of units, or (C) the Company issues any Membership Units in exchange for its outstanding Membership Common Units by
way of a reclassification or recapitalization of its Membership Common Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units need be made only once using a single formula that takes into account each and every Adjustment
Event as if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of Membership Units in a financing, reorganization, acquisition or other similar business
transaction, (y) the issuance of Membership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Membership Units to the Managing Member in respect of a capital
contribution to the Company of proceeds from the sale of securities by the Managing Member. If the Company takes an action affecting the Membership Common Units or LTIP Units other than actions specifically described above as Adjustment Events and
in the opinion of the Managing Member such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence described above, the Managing Member shall have the right to make such adjustment to the LTIP Units, to the
extent permitted by law and by any Equity Plan, in such manner and at such time as the Managing Member, in its sole and absolute discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as
herein provided the Company shall promptly file in the books and records of the Company an officer’s certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall be conclusive
evidence of the correctness of such adjustment absent manifest error. Promptly after the filing of such certificate, the Company shall mail a notice to each LTIP Unitholder setting forth the adjustment to his or her LTIP Units and the effective date
of such adjustment; and 
 (ii) Unless otherwise provided in an LTIP Award or Vesting Agreement or by the Managing Member
with respect to any particular class or series of LTIP Units, the LTIP Unitholders shall, when, as and if authorized and declared by the Managing Member out of assets legally available for that purpose, be entitled to receive distributions in an
amount per LTIP Unit equal to the distributions per Membership Common Unit (the “Membership Unit Distribution”), paid to holders of Membership 

  
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Common Units on such Company Record Date established by the Managing Member with respect to such distribution, provided, however, that until the Economic Capital Account Balance of the LTIP Units
is equal to the Target Balance, the LTIP Units shall be entitled to distributions attributable to the sale or other disposition of an asset of the Company only to the extent of any appreciation in value of such asset subsequent to the Award Date, as
determined by the Company. Subject to the terms of any LTIP Award or Vesting Agreement or by the Managing Member with respect to any particular class or series of LTIP Units, so long as any LTIP Units are outstanding, no distributions (whether in
cash or in kind) shall be authorized, declared or paid on Membership Common Units, unless equal distributions have been or contemporaneously are authorized, declared and paid on the LTIP Units in accordance with the preceding sentence. Subject to
the terms of any LTIP Award or Vesting Agreement, or by the Managing Member with respect to any particular class or series of LTIP Units, an LTIP Unitholder shall be entitled to transfer his or her Vested LTIP Units to the same extent, and subject
to the same restrictions as holders of Membership Common Units are entitled to transfer their Membership Common Units pursuant to Article XI of this Agreement. 

B. Priority. Subject to the provisions of this Section 4.5 and the special provisions of Section 6.3.F, the LTIP Units shall
rank pari passu with the Membership Common Units as to the payment of regular and special periodic or other distributions and, subject to Sections 13.2.A(4) and 13.2.C, distribution of assets upon liquidation, dissolution or winding up. As to the
payment of distributions and as to distribution of assets upon liquidation, dissolution or winding up, any class or series of Membership Units or Membership Interests which by its terms specifies that it shall rank junior to, on a parity with, or
senior to the Membership Common Units shall also rank junior to, or pari passu with, or senior to, as the case may be, the LTIP Units. 

C. Special Provisions. LTIP Units shall be subject to the following special provisions: 

(i) Vesting Agreements. LTIP Units may, in the sole and absolute discretion of the Managing Member, be issued subject to
vesting, forfeiture and additional restrictions on transfer pursuant to the terms of a Vesting Agreement. The terms of any Vesting Agreement may be modified by the Managing Member from time to time in its sole and absolute discretion, subject to any
restrictions on amendment imposed by the relevant Vesting Agreement or by the Equity Plan, if applicable. LTIP Units that have vested under the terms of a Vesting Agreement are referred to as “Vested LTIP Units;” all other LTIP
Units shall be treated as “Unvested LTIP Units.” 
 (ii) Forfeiture. Unless otherwise specified in
the Vesting Agreement, upon the occurrence of any event specified in a Vesting Agreement as resulting in either the right of the Company or the Managing Member to repurchase LTIP Units at a specified purchase price or some other forfeiture of any
LTIP Units, then if the Company or the Managing Member exercises such right to repurchase or forfeiture in accordance with the applicable Vesting Agreement, the relevant LTIP Units shall immediately, and without any further action, be treated as
cancelled and no longer outstanding for any purpose. Unless otherwise specified in the Vesting Agreement, no consideration or other payment shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared
with respect to a Company Record Date prior to the effective date of the forfeiture. In connection with any repurchase or forfeiture of LTIP Units, the balance of the portion of the Capital Account of the LTIP Unitholder that is attributable to all
of its LTIP Units shall be reduced by the amount, if any, by which such balance exceeds the Target Balance contemplated by Section 6.3.F, calculated with respect to the LTIP Unitholder’s remaining LTIP Units, if any. 

  
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 (iii) Allocations. LTIP Unitholders shall be entitled to certain special
allocations of gain under Section 6.3.F. 
 (iv) Redemption. The Redemption right provided to Members under
Section 15.1 shall not apply with respect to LTIP Units unless and until they are converted to Membership Common Units as provided in clause (v) below and Section 4.6. 

(v) Conversion to Membership Common Units. Vested LTIP Units are eligible to be converted into Membership Common Units
under Section 4.6. 
 D. Voting. Unless otherwise provided in an LTIP Award or Vesting Agreement or by the Managing Member with
respect to any particular class or series of LTIP Units, LTIP Unitholders shall (a) have the same voting rights as a holder of Membership Common Units with respect to their Vested LTIP Units, with the LTIP Units voting as a single class with
the Membership Common Units and having one vote per LTIP Unit; and (b) have the additional voting rights that are expressly set forth below. Unless otherwise provided in an LTIP Award or Vesting Agreement or by the Managing Member with respect
to any particular class or series of LTIP Units, so long as any LTIP Units remain outstanding, the Company shall not, without the affirmative vote of the holders of at least a majority of the LTIP Units outstanding at the time that would be
adversely affected by the proposed action, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal, whether by merger, consolidation or otherwise, the provisions of this Agreement
applicable to LTIP Units as such so as to materially and adversely affect any right, privilege or voting power of the LTIP Units or the LTIP Unitholders as such, unless such amendment, alteration, or repeal affects equally, ratably and
proportionately in all material respects the rights, privileges and voting powers of the holders of Membership Common Units; but subject, in any event, to the following provisions: 

(i) With respect to any Transaction, so long as the LTIP Units are treated in accordance with Section 4.6.F hereof, the
consummation of such Transaction shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such; and 

(ii) Any creation or issuance of any Membership Units or of any class or series of Membership Interest, including additional
Membership Common Units, LTIP Units or Preferred Units, whether ranking senior to, junior to, or on a parity with the LTIP Units with respect to distributions and the distribution of assets upon liquidation, dissolution or winding up, shall not be
deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such. 
 The
foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required will be effected, all outstanding LTIP Units shall have been converted into Membership Common Units. 

Section 4.6 Conversion of LTIP Units. 

A. Unless otherwise provided in an LTIP Award or Vesting Agreement or by the Managing Member with respect to any particular class or series of
LTIP Units, an LTIP Unitholder shall have the right (the “Conversion Right”), at its option, at any time to convert all or a portion of its Vested 

  
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LTIP Units into Membership Common Units; provided, however, that a holder may not exercise the Conversion Right for less than 1,000 Vested LTIP Units or, if such holder holds less than 1,000
Vested LTIP Units, all of the Vested LTIP Units held by such holder. LTIP Unitholders shall not have the right to convert Unvested LTIP Units into Membership Common Units until they become Vested LTIP Units; provided, however, that when an LTIP
Unitholder is notified of the expected occurrence of an event that will cause his or her Unvested LTIP Units to become Vested LTIP Units, such LTIP Unitholder may give the Company a Conversion Notice conditioned upon and effective as of the time of
vesting and such Conversion Notice, unless subsequently revoked by the LTIP Unitholder, shall be accepted by the Company subject to such condition. In all cases, the conversion of any LTIP Units into Membership Common Units shall be subject to the
conditions and procedures set forth in this Section 4.6. 
 B. Notwithstanding the foregoing, in no event may a holder of Vested LTIP
Units convert a number of Vested LTIP Units that exceeds (x) the Economic Capital Account Balance of such Member, to the extent attributable to its ownership of LTIP Units, divided by (y) the Membership Common Unit Economic Balance, in
each case as determined as of the effective date of conversion (the “Capital Account Limitation”). In order to exercise his or her Conversion Right, an LTIP Unitholder shall deliver a notice (a “Conversion Notice”)
in the form attached as Exhibit C to the Company (with a copy to the Managing Member) not less than 10 nor more than 60 days prior to a date (the “Conversion Date”) specified in such Conversion Notice; provided, however, that
if the Managing Member has not given to the LTIP Unitholders notice of a proposed or upcoming Transaction (as defined below in Section 4.6.F) at least 30 days prior to the effective date of such Transaction, then LTIP Unitholders shall have the
right to deliver a Conversion Notice until the earlier of (x) the 10th day after such notice from the Managing Member of a Transaction or (y) the third business day immediately preceding the effective date of such Transaction. A Conversion
Notice shall be provided in the manner provided in Section 15.2. Each LTIP Unitholder covenants and agrees with the Company that all Vested LTIP Units to be converted pursuant to this Section 4.6.B shall be free and clear of all liens.
Notwithstanding anything herein to the contrary, a holder of LTIP Units may deliver a Notice of Redemption pursuant to Section 15.1.A of this Agreement relating to those Membership Common Units that will be issued to such holder upon conversion
of such LTIP Units into Membership Common Units in advance of the Conversion Date; provided, however, that the redemption of such Membership Common Units by the Company shall in no event take place until after the Conversion Date. For clarity, it is
noted that the objective of this paragraph is to put an LTIP Unitholder in a position where, if he or she so wishes, the Membership Common Units into which his or her Vested LTIP Units will be converted can be redeemed by the Company simultaneously
with such conversion, with the further consequence that, if the Managing Member elects to assume the Company’s redemption obligation with respect to such Membership Common Units under 15.1.B of this Agreement by delivering to such holder
Class A REIT Shares rather than cash, then such holder can have such Class A REIT Shares issued to him or her simultaneously with the conversion of his or her Vested LTIP Units into Membership Common Units. The Managing Member shall
reasonably cooperate with an LTIP Unitholder to coordinate the timing of the different events described in the foregoing sentence. 
 C. The
Company, at any time at the election of the Managing Member in its sole and absolute discretion, may cause any number of Vested LTIP Units held by an LTIP Unitholder to be converted (a “Forced Redemption”) into an equal number of
Membership Common Units, giving effect to all adjustments (if any) made pursuant to Section 4.5; provided, however, that the Company may not cause a Forced Redemption of any LTIP Units that would not at the time be eligible for conversion at
the option of such LTIP Unitholder pursuant to Section 4.6.B. In order to exercise its right of Forced Redemption, the Company shall deliver a notice (a “Forced Redemption Notice”) in the form attached as Exhibit D to
the applicable LTIP Unitholder not less than 10 nor more than 60 days prior to the Conversion Date specified in such Forced Redemption Notice. A Forced Redemption Notice shall be provided in the manner provided in Section 15.2. 

  
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 D. A conversion of Vested LTIP Units for which the holder thereof has given a Conversion Notice
or the Company has given a Forced Redemption Notice shall occur automatically after the close of business on the applicable Conversion Date without any action on the part of such LTIP Unitholder, as of which time such LTIP Unitholder shall be
credited on the books and records of the Company with the issuance as of the opening of business on the next day of the number of Membership Common Units issuable upon such conversion. After the conversion of LTIP Units as aforesaid, the Company
shall deliver to such LTIP Unitholder, upon his or her written request, a certificate of the Managing Member certifying the number of Membership Common Units and remaining LTIP Units, if any, held by such person immediately after such conversion.
The Assignee of any Member pursuant to Article XI hereof may exercise the rights of such Member pursuant to this Section 4.6 and such Member shall be bound by the exercise of such rights by the Assignee. 

E. For purposes of making future allocations under Section 6.3.F and applying the Capital Account Limitation, the portion of the Economic
Capital Account Balance of the applicable LTIP Unitholder that is treated as attributable to his or her LTIP Units shall be reduced, as of the date of conversion, by the product of the number of LTIP Units converted and the Membership Common Unit
Economic Balance. 
 F. If the Company or the Managing Member shall be a party to any transaction (including a merger, consolidation, unit
exchange, self-tender offer for all or substantially all Membership Common Units or other business combination or reorganization, or sale of all or substantially all of the Company’s assets, but excluding any transaction which constitutes an
Adjustment Event) in each case as a result of which Membership Common Units shall be exchanged for or converted into the right, or the holders of such Membership Common Units shall otherwise be entitled, to receive cash, securities or other property
or any combination thereof (any of the foregoing being referred to herein as a “Transaction”), then the Managing Member shall, immediately prior to the consummation of the Transaction, exercise its right to cause a Forced Redemption
with respect to the maximum number of LTIP Units then eligible for conversion, taking into account any allocations that occur in connection with the Transaction or that would occur in connection with the Transaction if the assets of the Company were
sold at the Transaction price or, if applicable, at a value determined by the Managing Member in good faith using the value attributed to the Membership Common Units in the context of the Transaction (in which case the Conversion Date shall be the
effective date of the Transaction). In anticipation of such Forced Redemption and the consummation of the Transaction, the Company shall use commercially reasonable efforts to cause each LTIP Unitholder to be afforded the right to receive in
connection with such Transaction in consideration for the Membership Common Units into which his or her LTIP Units will be converted the same kind and amount of cash, securities and other property (or any combination thereof) receivable upon the
consummation of such Transaction by a holder of the same number of Membership Common Units, assuming such holder of Membership Common Units is not a Person with which the Company consolidated or into which the Company merged or which merged into the
Company or to which such sale or transfer was made, as the case may be (a “Constituent Person”), or an affiliate of a Constituent Person. In the event that holders of Membership Common Units have the opportunity to elect the form or
type of consideration to be received upon consummation of the Transaction, prior to such Transaction the Managing Member shall give prompt written notice to each LTIP Unitholder of such election, and shall use commercially reasonable efforts to
afford the LTIP Unitholders the right to elect, by written notice to the Managing Member, the form or type of consideration to be received upon conversion of each LTIP Unit held by such holder into Membership Common Units in connection with such
Transaction. If an LTIP Unitholder fails to make such an election, such holder (and any of its transferees) shall receive upon conversion of each LTIP Unit held by him or her (or by any of his or her transferees) the same kind and amount of
consideration that a holder of a Membership Common Unit would receive if such Membership Common Unit holder failed to make such an election. Subject to the rights of the Company and the Managing Member under any Vesting Agreement and any Equity
Plan, the 

  
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Company shall use commercially reasonable efforts to cause the terms of any Transaction to be consistent with the provisions of this Section 4.6.F and to enter into an agreement with the
successor or purchasing entity, as the case may be, for the benefit of any LTIP Unitholders whose LTIP Units will not be converted into Membership Common Units in connection with the Transaction that will (i) contain provisions enabling the
holders of LTIP Units that remain outstanding after such Transaction to convert their LTIP Units into securities as comparable as reasonably possible under the circumstances to the Membership Common Units and (ii) preserve as far as reasonably
possible under the circumstances the distribution, special allocation, conversion, and other rights set forth in this Agreement for the benefit of the LTIP Unitholders. 

Section 4.7 Dividend Reinvestment Plan, Stock Incentive Plan or Other Plan. Except as may otherwise be provided in this
Article 4, all amounts retained or deemed received by CLNY in respect of any dividend reinvestment plan, stock incentive or other stock or subscription plan or agreement, either (a) shall be utilized by CLNY to effect open market purchases
of REIT Shares, or (b) shall be contributed by CLNY to the Company in exchange for additional Membership Common Units, and upon such contribution, the Company will issue to CLNY a number of Membership Common Units equal to the number of newly
issued REIT Shares, divided by the Adjustment Factor then in effect. 
 Section 4.8 No Interest; No Return. No
Member shall be entitled to interest on its Capital Contribution or on such Member’s Capital Account. Except as provided herein or by law, no Member shall have any right to demand or receive the return of its Capital Contribution from the
Company. 
 Section 4.9 Conversion or Redemption of Preferred Shares; Redemption of REIT Shares. 

A. Conversion of Preferred Shares. If, at any time, any Preferred Shares are converted into REIT Shares, in whole or in part, then an
equal number of Company Equivalent Units held by CLNY that correspond to the class or series of Preferred Shares so converted shall automatically be converted into a number of Membership Common Units equal to the quotient of (i) the number of
REIT Shares issued upon such conversion, divided by (ii) the Adjustment Factor then in effect. 
 B. Redemption of
Preferred Shares. If, at any time, any Preferred Shares are redeemed, repurchased or otherwise acquired (whether by exercise of a put or call, automatically or by means of another arrangement) by CLNY for cash, then, immediately prior to such
redemption of Preferred Shares, the Company shall redeem an equal number of Company Equivalent Units held by CLNY that correspond to the class or series of Preferred Shares so redeemed, repurchased or acquired upon the same terms and for the same
price per Company Equivalent Unit, as such Preferred Shares are redeemed, repurchased or acquired. 
 C. Redemption, Repurchase or
Forfeiture of REIT Shares. If, at any time, any REIT Shares are redeemed, repurchased or otherwise acquired (whether by exercise of a put or call, upon forfeiture of any award granted under any Equity Plan, automatically or by means of another
arrangement, including pursuant to any Non-Managing Member Ancillary Agreement) by CLNY, then, immediately prior to such redemption, repurchase or acquisition of REIT Shares, the Company shall redeem a number of Membership Common Units held by CLNY
equal to the quotient of (i) the number of REIT Shares so redeemed, repurchased or acquired, divided by (ii) the Adjustment Factor then in effect, such redemption, repurchase or acquisition to be upon the same terms and
for the same price per Membership Common Unit (after giving effect to application of the Adjustment Factor) as such REIT Shares are redeemed, repurchased or acquired. 

  
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 Section 4.10 Other Contribution Provisions. In the event that any Member is admitted
to the Company and is given a Capital Account in exchange for services rendered to the Company, such transaction shall be treated by the Company and the affected Member as if the Company had compensated such Member in cash and such Member had
contributed the cash to the capital of the Company. In addition, with the consent of the Managing Member, one or more Members (including CLNY) may enter into contribution agreements with the Company which have the effect of providing a guarantee of
certain obligations of the Company. 
 Section 4.11 Excluded Properties. CLNY shall contribute each Excluded Property (or, if
applicable, the net proceeds (after payment of all transfer taxes and other transaction costs) received by CLNY from the sale, transfer or other disposition of an Excluded Property to a Person who is not a direct or indirect wholly owned Subsidiary
of CLNY) to the Company upon the earlier of (i) such time as it is commercially practicable to contribute such property to the Company without adverse tax or other economic consequence to CLNY, and (ii) any sale, transfer or other
disposition of an Excluded Property to a Person who is not a direct or indirect wholly owned Subsidiary of CLNY. Upon any such contribution of an Excluded Property or the proceeds therefrom, CLNY shall receive in exchange for such contribution,
notwithstanding the actual value of such Excluded Property or the amount of such proceeds (as the case may be), the Specified Membership Units applicable to such Excluded Property. The Company is expressly authorized to issue the Specified
Membership Units in the numbers specified in this Section 4.11 without any further act, approval or vote of any Member or any other Persons. 

Section 4.12 Contingent Consideration and Indemnification Payment. In exchange for the contribution of assets to the Company
pursuant to the CC Contribution Agreement, CC, CCH, FHB LLC and Saltzman (the “Contingent Consideration Members”) are collectively entitled to up to $101,144,012 of contingent consideration (based on the reference price of $22.05)
to the extent such contingent consideration is issued as Membership Common Units (the “Aggregate Contingent Consideration”) as provided in Section 3.5 of the CC Contribution Agreement. The initial Gross Asset Value of the
assets contributed by the Contingent Consideration Members to the Company as reflected on Schedule II includes the value of the Aggregate Contingent Consideration and the respective Capital Accounts, as reflected on Schedule I, of the Contingent
Consideration Members includes such value; provided, however, if all or a portion of the Aggregate Contingent Consideration is forfeited as determined by Section 3.5 of the CC Contribution Agreement, the Gross Asset Values of the
assets of the Company shall be decreased by the amount of such forfeiture of the Aggregate Contingent Consideration and the Capital Accounts of the Contingent Consideration Members shall be decreased by such decrease. In addition, if any of the
Contingent Consideration Members are required to forfeit any consideration as a result of an indemnification obligation under Article X of the CC Contribution Agreement, the Gross Asset Values of the assets of the Company shall be decreased by the
amount of such forfeiture and the Capital Accounts of such Contingent Consideration Members shall be decreased by such decrease. The Members acknowledge and agree that the Membership Common Units representing the Aggregate Contingent Consideration
have been issued and are being held by the Company and that such Membership Common Units will be treated in the same manner as any other outstanding Membership Common Units. 

ARTICLE 5 
 DISTRIBUTIONS 

Section 5.1 Requirement and Characterization of Distributions. Subject to the terms of any Membership Unit Designation that
provides for a class or series of Company Preferred Units with a preference with respect to the payment of distributions, the Managing Member shall cause the 

  
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Company to distribute quarterly all, or such portion as the Managing Member may determine, of the Available Cash generated by the Company during such quarter to the Holders of Membership Common
Units in accordance with their respective Percentage Interests of Membership Common Units on such Company Record Date. Distributions payable with respect to any Membership Units that were not outstanding during the entire quarterly period in respect
of which any distribution is made (other than any Membership Units issued to CLNY in connection with the issuance of REIT Shares or Capital Shares by CLNY) shall be prorated based on the portion of the period that such Membership Units were
outstanding. Notwithstanding the foregoing, the Managing Member, in its sole and absolute discretion, may cause the Company to distribute Available Cash to the Holders on a more or less frequent basis than quarterly. The Managing Member shall make
reasonable efforts to cause the Company to distribute sufficient amounts to enable CLNY, for so long as CLNY has determined to qualify as a REIT, to pay stockholder dividends that will (a) satisfy the REIT Requirements, and (b) eliminate
any U.S. federal income or excise tax liability of CLNY. 
 Notwithstanding the foregoing, if any Excluded Property (or the proceeds
therefrom) has not been contributed to the Company pursuant to Section 4.11, the distributions provided for above shall be calculated, to the extent possible, based on Adjusted Available Cash as if each Excluded Property had been contributed to
the Company in exchange for Membership Common Units pursuant to Section 4.11; provided, however, that if any Excluded Property (or the proceeds therefrom) has not been contributed to the Company pursuant to Section 4.11, any
distributions to be made with respect to CLNY’s Membership Units shall in the aggregate be reduced to the extent of any REIT Available Cash derived from such Excluded Property. Notwithstanding the foregoing, all payments received by the Company
from the CLNY Management Agreement (other than any such payments made by any “taxable REIT subsidiary” (within the meaning of Section 856(l) of the Code) of CLNY) shall be distributed to CLNY. 

Section 5.2 Distributions in Kind. No Holder may demand to receive property other than cash as provided in this Agreement. The
Managing Member may cause the Company to make a distribution in kind of Company assets or Membership Interests to the Holders, and such assets or Membership Interests shall be distributed in such a fashion as to ensure that the fair market value is
distributed and allocated in accordance with Articles 5, 6 and 10 hereof. 
 Section 5.3 Amounts Withheld. All amounts
withheld pursuant to the Code or any provisions of any state or local tax law and Section 10.4 hereof with respect to any allocation, payment or distribution to any Holder shall be treated as amounts paid or distributed to such Holder pursuant
to Section 5.1 hereof for all purposes under this Agreement. 
 Section 5.4 Distributions upon Liquidation.
Notwithstanding the other provisions of this Article 5, upon the occurrence of a Liquidating Event, the assets of the Company shall be distributed to the Holders in accordance with Section 13.2 hereof. 

Section 5.5 Distributions to Reflect Additional Membership Units. In the event that the Company issues additional Membership
Units pursuant to the provisions of Article 4 hereof, subject to the rights of any Holder of any Membership Interest set forth in a Membership Unit Designation, the Managing Member is hereby authorized to make such revisions to this
Article 5 and to Article 6 as it determines are necessary or desirable to reflect the issuance of such additional Membership Units, including making preferential distributions to certain classes of Membership Units. 

Section 5.6 Restricted Distributions. Notwithstanding any provision to the contrary contained in this Agreement, neither the
Company nor the Managing Member, on behalf of the Company, shall make a distribution to any Holder if such distribution would violate the Act or other applicable law. 

  
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 Section 5.7 Restriction on Distributions with Respect to LTIP Units. It is the
intention of the Members that distributions in respect of LTIP Units be limited to the extent necessary so that each of the LTIP Units constitutes a “profits interest” for U.S. federal income tax purposes. In furtherance of the foregoing,
and notwithstanding anything to the contrary in this Agreement, the Managing Member shall, if necessary, limit distributions to the holders of LTIP Units so that such distributions do not exceed the available profits in respect of such LTIP Units.
In the event that distributions in respect of LTIP Units are reduced pursuant to the preceding sentence, an amount equal to such excess distributions shall be treated as instead apportioned to the remaining Members pro rata in accordance with their
Membership Common Units for the related Fiscal Year in accordance with the other provisions of this Agreement, and the Managing Member shall make adjustments to future distributions to the holders of LTIP Units as promptly as practicable so that the
holders of LTIP Units receive a distribution equal to the amount they would have received, in each case as if this Section 5.7 had not been in effect; provided, however, that any distributions pursuant to this sentence shall be further subject
to the provisions of this Section 5.7. For purposes of this Agreement, “profits interest” means a right to receive distributions funded solely by profits of the Company generated after the grant in connection with the performance of
services, satisfying the requirements as set forth in IRS Revenue Procedures 93-27 and 2001-43, or any future IRS guidance or other authority that supplements or supersedes the foregoing IRS Revenue Procedures. 

ARTICLE 6 
 ALLOCATIONS 

Section 6.1 Timing and Amount of Allocations of Net Income and Net Loss. Net Income and Net Loss of the Company shall be
determined and allocated with respect to each Fiscal Year as of the end of each such year. Except as otherwise provided in this Article 6, and subject to Section 11.6.C hereof, an allocation to a Holder of a share of Net Income or Net Loss
shall be treated as an allocation of the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Income or Net Loss. 

Section 6.2 General Allocations. 

A. In General. Subject to Section 11.6.C hereof, Net Income and Net Loss shall be allocated to each of the Holders as follows:

 (i) Net Income will be allocated to Holders of Company Preferred Units and Company Equivalent Units in accordance with and
subject to the terms of the Membership Unit Designation applicable to such Company Preferred Units and Company Equivalent Units; 

(ii) remaining Net Income will be allocated to the Holders of Membership Common Units in accordance with their respective
Percentage Interests at the end of each Fiscal Year; 
 (iii) subject to the terms of any Membership Unit Designation, Net
Loss will be allocated to the Holders of Membership Common Units in accordance with their respective Percentage Interests and to the holders of Company Equivalent Units in accordance with and subject to the terms of the Membership Unit Designation
applicable to such Company Equivalent Units at the end of each Fiscal Year; and 
 (iv) for purposes of this
Section 6.2.A, the Percentage Interests of the Holders of Membership Common Units shall be calculated based on a denominator equal to the aggregate Membership Common Units outstanding as of the date of determination. 

  
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 Section 6.3 Additional Allocation Provisions. Notwithstanding the foregoing
provisions of this Article 6: 
 A. Special Allocations Regarding Company Preferred Units. If any Company Preferred Units are
redeemed pursuant to Section 4.9.B hereof (treating a full liquidation of the Managing Member’s Membership Interest or of CLNY’s Membership Interest for purposes of this Section 6.3.A as including a redemption of any then
outstanding Company Preferred Units pursuant to Section 4.9.B hereof), for the Fiscal Year that includes such redemption (and, if necessary, for subsequent Fiscal Years) (a) gross income and gain (in such relative proportions as the
Managing Member shall determine) shall be allocated to the holder(s) of such Company Preferred Units to the extent that the Redemption Amounts paid or payable with respect to the Company Preferred Units so redeemed (or treated as redeemed) exceeds
the aggregate Capital Account Balances (net of liabilities assumed or taken subject to by the Company) per Company Preferred Unit allocable to the Company Preferred Units so redeemed (or treated as redeemed) and (b) deductions and losses (in
such relative proportions as the Managing Member shall determine) shall be allocated to the holder(s) of such Company Preferred Units to the extent that the aggregate Capital Account Balances (net of liabilities assumed or taken subject to by the
Company) per Company Preferred Unit allocable to the Company Preferred Units so redeemed (or treated as redeemed) exceeds the Redemption Amount paid or payable with respect to the Company Preferred Units so redeemed (or treated as redeemed). 

B. Regulatory Allocations. 

(i) Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f), notwithstanding the
provisions of Section 6.2 hereof, or any other provision of this Article 6, if there is a net decrease in Member Minimum Gain during any Fiscal Year, each Holder shall be specially allocated items of Company income and gain for such year
(and, if necessary, subsequent years) in an amount equal to such Holder’s share of the net decrease in Member Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each Holder pursuant thereto. The items to be allocated shall be determined in accordance with Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 6.3.B(i) is
intended to qualify as a “minimum gain chargeback” within the meaning of Regulations Section 1.704-2(f) and shall be interpreted consistently therewith. 

(ii) Member Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(i)(4) or in
Section 6.3.B(i) hereof, if there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Fiscal Year, each Holder who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Holder’s respective share of the
net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Holder pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Sections 1.704-2(i)(4) 

  
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and 1.704-2(j)(2). This Section 6.3.B(ii) is intended to qualify as a “chargeback of partner nonrecourse debt minimum gain,” within the meaning of Regulations
Section 1.704-2(i), and shall be interpreted consistently therewith. 
 (iii) Nonrecourse Deductions and Member
Nonrecourse Deductions. Any Nonrecourse Deductions for any Fiscal Year shall be specially allocated to the Holders in accordance with their respective Percentage Interests. Any Member Nonrecourse Deductions for any Fiscal Year shall be specially
allocated to the Holder(s) who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable, in accordance with Regulations Section 1.704-2(i). 

(iv) Qualified Income Offset. If any Holder unexpectedly receives an adjustment, allocation or distribution described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Company income and gain shall be allocated, in accordance with Regulations Section 1.704-1(b)(2)(ii)(d), to such Holder in an amount and manner sufficient to eliminate,
to the extent required by such Regulations, the Adjusted Capital Account Deficit of such Holder as quickly as possible, provided that an allocation pursuant to this Section 6.3.B(iv) shall be made if and only to the extent that such
Holder would have an Adjusted Capital Account Deficit after all other allocations provided in this Article 6 have been tentatively made as if this Section 6.3.B(iv) were not in the Agreement. It is intended that this Section 6.3.B(iv)
qualify and be construed as a “qualified income offset,” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(d), and shall be interpreted consistently therewith. 

(v) Gross Income Allocation. If any Holder has a deficit Capital Account at the end of any Fiscal Year that is in excess
of the sum of (1) the amount (if any) that such Holder is obligated to restore to the Company upon complete liquidation of such Holder’s Membership Interest (including the Holder’s interest in outstanding Company Preferred Units and
other Membership Units), and (2) the amount that such Holder is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Holder shall be specially allocated
items of Company income and gain in the amount of such excess to eliminate such deficit as quickly as possible, provided that an allocation pursuant to this Section 6.3.B(v) shall be made if and only to the extent that such Holder would
have a deficit Capital Account in excess of such sum after all other allocations provided in this Article 6 have been tentatively made as if this Section 6.3.B(v) and Section 6.3.B(iv) hereof were not in the Agreement. 

(vi) Limitation on Allocation of Net Loss. To the extent that any allocation of Net Loss would cause or increase an
Adjusted Capital Account Deficit as to any Holder, such allocation of Net Loss shall be reallocated (x) first, among the other Holders of Membership Common Units in accordance with their respective Percentage Interests, and (y) thereafter,
among the Holders of other Membership Units, as determined by the Managing Member, subject to the limitations of this Section 6.3.B(vi). 

(vii) Section 754 Adjustment. To the extent that an adjustment to the adjusted tax basis of any Company asset
pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts,
the amount of such adjustment to the Capital Accounts shall be treated as an 

  
 41 

 
item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Holders of Membership
Common Units in accordance with their respective Percentage Interests in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Holder(s) to whom such distribution was made in the event that Regulations
Section 1.704-1(b)(2)(iv)(m)(4) applies (or otherwise as described in Regulations Section 1.704-1(b)(2)(iv)(m)(4)). 

(viii) Curative Allocations. The allocations set forth in Sections 6.3.B(i), (ii), (iii), (iv), (v), (vi) and
(vii) hereof (the “Regulatory Allocations”) are intended to comply with certain regulatory requirements, including the requirements of Regulations Sections 1.704-1(b) and 1.704-2.
Notwithstanding the provisions of Section 6.1 hereof, the Regulatory Allocations shall be taken into account in allocating other items of income, gain, loss and deduction among the Holders of Membership Common Units so that, to the extent
possible without violating the requirements giving rise to the Regulatory Allocations, the net amount of such allocations of other items and the Regulatory Allocations to each Holder of a Membership Common Unit shall be equal to the net amount that
would have been allocated to each such Holder if the Regulatory Allocations had not occurred. 
 C. Special Allocations Upon
Liquidation. Notwithstanding any provision in this Article 6 to the contrary, if the Company disposes of all or substantially all of its assets in a transaction that will lead to a liquidation of the Company pursuant to Article 13
hereof, then any Net Income or Net Loss realized in connection with such transaction and thereafter (and, if necessary, constituent items of income, gain, loss and deduction) shall be specially allocated for such Fiscal Year (and to the extent
permitted by Code Section 761(c), for the immediately preceding Fiscal Year) among the Holders as required so as to cause liquidating distributions pursuant to Section 13.2.A(4) hereof to be made in the same amounts and proportions as
would have resulted had such distributions instead been made pursuant to Article 5 hereof. 
 D. Allocation of Nonrecourse
Liabilities. For purposes of determining a Holder’s proportional share of the “excess nonrecourse liabilities” of the Company within the meaning of Regulations Section 1.752-3(a)(3), each Holder’s respective interest in
Company profits shall be equal to such Holder’s Percentage Interest with respect to Membership Common Units. The Company shall maintain on a continuous basis during the five-year period beginning on the Closing Date (as defined in the CC
Contribution Agreement) an amount of liabilities payable or owed to third parties that are not guaranteed by CLNY or a related party of CLNY (other than the Company, any Subsidiary or Affiliate of the Company, any Contributor (as defined in the CC
Contribution Agreement) or Affiliate thereof or any joint venture or other entity in which the Company owns a direct or indirect interest) and not otherwise recourse to CLNY in an amount that is at least equal to $350,000,000. For purposes of the
prior sentence, liabilities shall include (i) any liabilities owed by any joint venture or other entity in which the Company owns a direct or indirect interest, to the extent of such interest and (ii) liabilities incurred under the Credit
Agreement, dated August 6, 2013, as amended by the First Amendment, as dated January 29, 2014, and the Second Amendment, as dated December 12, 2014, among CLNY, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders
(the “Credit Agreement”), but only to the extent the REIT Guaranty (as defined in the Credit Agreement) has been amended in the manner described in the proviso contained in the definition of “REIT Guaranty”, and in such
case, the REIT Guaranty shall not be treated as a guaranty by CLNY or as causing such liability to be recourse to CLNY. The Company shall elect to allocate excess nonrecourse liabilities to CC to the maximum extent permitted under the
“additional method” described in Regulations Section 1.752-3(a)(3) as regards to the amount of built-in gain allocated to a Member on section 704(c) property. Notwithstanding the above, the requirements of this

  
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Section 6.3D shall be treated as having been satisfied at any given time so long as $50,000,000 of liabilities are allocated to CC and/or directly or indirectly to Thomas J. Barrack, Jr. in
accordance with Section 752 of the Code and the Regulations at such time. 
 E. All gross income and gain of the Company associated
with the CLNY Management Agreement shall, to the extent permitted by law, be specially allocated to CLNY. 
 F. Special Allocations
Regarding LTIP Units. Notwithstanding the provisions of Section 6.2 above, Liquidating Gains shall first be allocated to the LTIP Unitholders until the Economic Capital Account Balances of such Holders, to the extent attributable to their
ownership of LTIP Units, are equal to (i) the Membership Common Unit Economic Balance, multiplied by (ii) the number of their LTIP Units (the “Target Balance”). For this purpose, “Liquidating Gains” means
net capital gains realized in connection with the actual or hypothetical sale of all or substantially all of the assets of the Company, including net capital gain realized in connection with an adjustment to the Gross Asset Value of Company assets
under Code Section 704(b). The “Economic Capital Account Balances” of the LTIP Unitholders will be equal to their Capital Account balances to the extent attributable to their ownership of LTIP Units, plus the amount of their
allocable share of any Member Minimum Gain or Company Minimum Gain attributable to such LTIP Units. Similarly, the “Membership Common Unit Economic Balance” shall mean (i) the Capital Account balance of the Managing Member,
plus the amount of the Managing Member’s share of any Member Minimum Gain or Company Minimum Gain, in either case to the extent attributable to the Managing Member’s ownership of Membership Common Units and computed on a hypothetical basis
after taking into account all allocations through the date on which any allocation is made under this Section 6.3.F (including any expenses of the Company reimbursed to the Managing Member pursuant to Section 7.4.B), divided by
(ii) the number of the Managing Member’s Membership Common Units. Any such allocations shall be made among the LTIP Unitholders in proportion to the amounts required to be allocated to each under this Section 6.3.F. The parties agree
that the intent of this Section 6.3.F is to make the Capital Account balance associated with each LTIP Unit to be economically equivalent to the Capital Account balance associated with the Managing Member’s Membership Common Units (on a
per-Membership Common Unit/LTIP Unit basis). The Managing Member shall be permitted to interpret this Section 6.3.F or to amend this Agreement to the extent necessary and consistent with this intention. 

Section 6.4 Tax Allocations. 

A. In General. Except as otherwise provided in this Section 6.4, for income tax purposes under the Code and the Regulations, each
Company item of income, gain, loss and deduction (collectively, “Tax Items”) shall be allocated among the Holders in the same manner as its correlative item of “book” income, gain, loss or deduction is allocated pursuant
to Sections 6.2 and 6.3 hereof. 
 B. Section 704(c) Allocations. Notwithstanding Section 6.4.A hereof, Tax Items with
respect to Property that is contributed to the Company with a Gross Asset Value that varies from its basis in the hands of the contributing Member immediately preceding the date of contribution shall be allocated among the Holders for income tax
purposes pursuant to Regulations promulgated under Code Section 704(c) so as to take into account such variation. The Company shall account for such variation under any method approved under Code Section 704(c) and the applicable
Regulations as chosen by the Managing Member; provided, however, items of Company taxable income, gain, loss and deduction with respect to any property contributed to the capital of the Company by CC, CCH, Saltzman or FHB LLC shall be
allocated among the Members in accordance with Section 704(c) of the Code so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its initial Gross Asset Value using
the “traditional method without curative allocations” as defined in Regulations Section 1.704-3(b). If the Gross Asset Value of any Company asset is adjusted 

  
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pursuant to subsection (b) of the definition of “Gross Asset Value,” subsequent allocations of Tax Items with respect to such asset shall take account of the variation, if any,
between the adjusted basis of such asset and its Gross Asset Value in the same manner as under Code Section 704(c) and the applicable Regulations and using the method chosen by the Managing Member; provided, however, any such
subsequent allocations of Tax Items that are allocated to CC, CCH, Saltzman and FHB LLC shall take account of the variation, if any, between the adjusted basis of such asset and its Gross Asset Value in the same manner as under Code
Section 704(c) and the applicable Regulations and using the “traditional method without curative allocations” as defined in Regulations Section 1.704-3(b). 

ARTICLE 7 
 MANAGEMENT AND
OPERATIONS OF BUSINESS 
 Section 7.1 Management. 

A. Except as otherwise expressly provided in this Agreement, including any Membership Unit Designation, all management powers over the
business and affairs of the Company are and shall be exclusively vested in the Managing Member, and no Member shall have any right to participate in or exercise control or management power over the business and affairs of the Company. No Managing
Member may be removed by the Members, with or without cause, except with the consent of the Managing Member. In addition to the powers now or hereafter granted a managing member of a limited liability company under applicable law or that are granted
to the Managing Member under any other provision of this Agreement, the Managing Member, subject to the other provisions hereof, including Section 7.3 and the terms of any Membership Unit Designation, shall have full and exclusive power and
authority, without the consent of any Member, to conduct or authorize the conduct of the business of the Company, to exercise or direct the exercise of all powers of the Company and the Managing Member under the Act and this Agreement and to
effectuate the purposes of the Company, including to cause the Company to enter into agreements or engage in transactions with affiliates of the Company or the Managing Member, issue additional Membership Interests, make distributions, sell, pledge,
lease, mortgage or otherwise dispose of its assets, form and conduct all or any portion of its business and affairs through subsidiaries or joint ventures of any form, incur or guarantee debt for any purpose and obtain and maintain casualty,
liability and other insurance on the Properties and liability insurance for the Indemnitees hereunder. 
 B. Except as provided in
Section 7.3 hereof and subject to the rights of any Holder of any Membership Interest set forth in a Membership Unit Designation, the Managing Member is authorized to execute and deliver any affidavit, agreement, certificate, consent,
instrument, notice, power of attorney, waiver or other writing or document in the name and on behalf of the Company and to otherwise exercise any power of the Managing Member under this Agreement and the Act without any further act, approval or vote
of the Members or any other Persons and, in the absence of any specific action on the part of the Managing Member to the contrary, the taking of any action or the execution of any such document or writing by a manager, member, director or officer of
the Managing Member, in the name and on behalf of the Managing Member, in its capacity as the managing member of the Company, shall conclusively evidence (1) the approval thereof by the Managing Member, in its capacity as the managing member of
the Company, (2) the Managing Member’s determination that such action, document or writing is necessary or desirable to conduct the business and affairs of the Company, exercise the powers of the Company under the Act and this Agreement or
effectuate the purposes of the Company, or any other determination by the Managing Member required by this Agreement in connection with the taking of such action or execution of such document or writing, and (3) the authority of such manager,
member, director or officer with respect thereto. 

  
 44 

 C. The determination as to any of the following matters, made by or at the direction of the
Managing Member consistent with the Act and this Agreement, shall be final and conclusive and shall be binding upon the Company and every Member: the amount of assets at any time available for distribution or the redemption of Common Units or
Preferred Units; the amount and timing of any distribution; any determination to redeem Tendered Units; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof
(whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset
owned or held by the Company; any matter relating to the acquisition, holding and disposition of any assets by the Company; or any other matter relating to the business and affairs of the Company or required or permitted by applicable law, this
Agreement or otherwise to be determined by the Managing Member. 
 D. At all times from and after the date hereof, the Managing Member may
cause the Company to establish and maintain working capital and other reserves in such amounts as the Managing Member, in its sole and absolute discretion, deems appropriate and reasonable from time to time. 

E. Notwithstanding any other provision of this Agreement or the Act, any action of the Managing Member on behalf of the Company or any
decision of the Managing Member to refrain from acting on behalf of the Company, undertaken in the belief that such action or omission is necessary or advisable in order (i) to protect the ability of CLNY to continue to qualify as a REIT,
(ii) for CLNY otherwise to satisfy the REIT Requirements, (iii) for CLNY to avoid incurring any taxes under Code Section 857 or Code Section 4981, (iv) to protect the ability of the Company to be treated as a partnership or
disregarded entity for federal income tax purposes, or (v) for any wholly owned Subsidiary of CLNY to continue to qualify as a “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)) or disregarded entity
(determined for federal income tax purposes) thereof, is expressly authorized under this Agreement and is deemed approved by all of the Members. 

Section 7.2 Certificate of Formation. To the extent that such action is determined by the Managing Member to be reasonable and
necessary or appropriate, the Managing Member shall file amendments to and restatements of the Certificate and do all the things to maintain the Company as a limited liability company (or a company in which the members have limited liability) under
the laws of the State of Delaware and each other state, the District of Columbia or any other jurisdiction, in which the Company may elect to do business or own property. Subject to the terms of Section 8.5.A hereof, the Managing Member shall
not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment thereto to any Member. The Managing Member shall use all reasonable efforts to cause to be filed such other certificates or documents as may be
reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited liability company (or a company in which the members have limited liability to the extent provided by applicable law) in the State of
Delaware and any other state, or the District of Columbia or other jurisdiction, in which the Company may elect to do business or own property. 

Section 7.3 Restrictions on the Managing Member’s Authority. 

A. The Managing Member may not take any action in contravention of this Agreement, including, without limitation: 

(1) any action that would make it impossible to carry on the ordinary business of the Company, except as otherwise provided in
this Agreement; 

  
 45 

 (2) admitting a Person as a Member, except as otherwise provided in this
Agreement; 
 (3) performing any act that would subject a Member to liability, except as provided herein or under the Act;

 (4) entering into any contract, mortgage, loan or other agreement that expressly prohibits or restricts (a) the
Managing Member or the Company from performing its specific obligations under Section 15.1 hereof, or (b) a Member from exercising its rights under Section 15.1 hereof to effect a Redemption, except, in either case, with the written
consent of such Member affected by the prohibition or restriction. 
 B. The Managing Member shall not, without the Consent of the Members,
undertake on behalf of the Company, or enter into any transaction that would have the effect of, any of the following actions without the approval of the Board of Directors: 

(1) except as provided in Section 7.3.C hereof, terminate this Agreement; 

(2) except as otherwise permitted by this Agreement, or in connection with a Termination Transaction effected in accordance
with Section 11.7, Transfer any portion of the Membership Interest of the Managing Member or admit into the Company any additional or successor Managing Member; 

(3) except as otherwise permitted by this Agreement, or in connection with a Termination Transaction effected in accordance
with Section 11.7, voluntarily withdraw as a managing member of the Company; 
 (4) make a general assignment for the
benefit of creditors or appoint or acquiesce in the appointment of a custodian, receiver or trustee for all or any part of the assets of the Company; 

(5) institute any proceeding for bankruptcy on behalf of the Company; 

(6) a merger or consolidation of the Company with or into any other Person, or a conversion of the Company into any other
entity, other than in connection with a Termination Transaction effected in accordance with Section 11.7; or 
 (7) a
sale, lease, exchange or other transfer of all or substantially all of the assets of the Company not in the ordinary course of business, whether in a single transaction or a series of related transactions, other than in connection with a Termination
Transaction effected in accordance with Section 11.7. 
 C. Notwithstanding Section 7.3.B hereof but subject to the rights of any
Holder of any Membership Interest set forth in a Membership Unit Designation and Section 7.3.D, the Managing Member shall have the exclusive power, without the Consent of the Members or the consent or approval of any Non-Managing Member, to
amend this Agreement as may be required to facilitate or implement any of the following purposes: 
 (1) to add to the
obligations of the Managing Member or surrender any right or power granted to the Managing Member or any Affiliate of the Managing Member for the benefit of the Members; 

  
 46 

 (2) to reflect the admission, substitution or withdrawal of Members, the
Transfer of any Membership Interest or the termination of the Company in accordance with this Agreement, and to amend the Register in connection with such admission, substitution, withdrawal or Transfer; 

(3) to reflect a change that is of an inconsequential nature or does not adversely affect the Non-Managing Members in any
material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, or make other changes with respect to matters arising under this Agreement that will not be
inconsistent with law or with the provisions of this Agreement; 
 (4) to satisfy any requirements, conditions or guidelines
contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained in federal or state law; 

(5) to reflect such changes as are reasonably necessary for CLNY to maintain its status as a REIT or to satisfy the REIT
Requirements; 
 (6) to modify either or both of the manner in which items of Net Income or Net Loss are allocated pursuant
to Article 6 or the manner in which Capital Accounts are adjusted, computed or maintained (but in each case only to the extent set forth in the definition of “Capital Account” or Section 5.5 or as contemplated by the Code or the
Regulations); 
 (7) to reflect the issuance of additional Membership Interests in accordance with Article 4; 

(8) to set forth or amend the designations, preferences, conversion or other rights, voting powers, restrictions, limitations
as to distributions, qualifications or terms or conditions of redemption of any additional Membership Units issued pursuant to Article 4; 

(9) if the Company is the Surviving Company in any Termination Transaction, to modify Section 15.1 or any related
definitions to provide the holders of interests in such Surviving Company rights that are consistent with Section 11.7C(v); 

(10) to satisfy any requirements, conditions or guidelines contained in any order, directive, opinion, ruling or regulation of
a federal or state agency or contained in federal or state law; and 
 (11) to reflect any other modification to this
Agreement that is reasonably necessary for the business or operations of the Company or CLNY and that does not violate Section 7.3.D. 

D. Notwithstanding Sections 7.3.B, 7.3.C and Article 14 hereof, this Agreement shall not be amended, and no action may be taken by
the Managing Member, without the consent of each 

  
 47 

 
Member, if any, adversely affected thereby, if such amendment or action would (i) convert a Non-Managing Member into a managing member of the Company (except as a result of the Non-Managing
Member becoming a Managing Member pursuant to Section 12.1 or 13.1.A of this Agreement), (ii) modify the limited liability of a Member, (iii) adversely alter the rights of any Member to receive the distributions to which such Member
is entitled pursuant to Article 5 or Section 13.2.A(4) hereof, or alter the allocations specified in Article 6 hereof (except, in any case, as permitted pursuant to Sections 4.2, 5.5 and 7.3.C hereof), (iv) alter or modify
in a manner that adversely affects any Member the Redemption rights, Cash Amount or REIT Shares Amount as set forth in Section 15.1 hereof, or amend or modify any related definitions (except for amendments to this Agreement or other actions
that provide rights consistent with Section 11.7C(v)), or (v) amend this Section 7.3.D; provided, however, that the consent of any individual Member adversely affected shall not be required for any amendment or action
described in this Section 7.3.D that affects all Members holding the same class or series of Membership Units on a uniform or pro rata basis, if approved by a Majority in Interest of the Members of such class or series. Further, no amendment
may alter the restrictions on the Managing Member’s authority set forth elsewhere in this Section 7.3 without the consent specified therein. Any such amendment or action consented to by any Member shall be effective as to that Member,
notwithstanding the absence of such consent by any other Member. 
 Section 7.4 Reimbursement of the Managing Member and CLNY.

 A. The Managing Member shall not be compensated for its services as managing member of the Company except as provided in this Agreement
(including the provisions of Articles 5 and 6 hereof regarding distributions, payments and allocations to which it may be entitled in its capacity as Managing Member). 

B. Subject to Section 7.4.C and Section 15.11, the Company shall be liable for, and shall advance to or reimburse the Managing
Member and CLNY, as applicable, on a monthly basis, or such other basis as the Managing Member may determine, for all sums required or expended in connection with the Company’s business, including (i) expenses relating to the ownership of
interests in and management and operation of, or for the benefit of, the Company, (ii) compensation of officers and employees, including payments under future compensation plans of CLNY, the Managing Member, the Company, or a Subsidiary of
CLNY, the Managing Member, or the Company that may provide for stock units, or phantom stock, pursuant to which employees of CLNY, the Managing Member, the Company, or any such Subsidiary will receive payments based upon dividends on or the value of
REIT Shares, (iii) director fees and expenses, (iv) all costs and expenses of CLNY being a public company, including costs of filings with the SEC, reports and other distributions to its stockholders and (v) without limiting the
foregoing, all amounts necessary for the timely payment of all interest, principal and any other payment obligations pursuant to CLNY’s 5.00% Convertible Senior Notes due on April 15, 2023 (and any refinancing thereof), 3.875% Convertible
Senior Notes due on January 15, 2021 (and any refinancing thereof), and (c) other notes and long-term debt payable or owed during the five-year period beginning on the date hereof; provided, however, that the amount of any
reimbursement shall be reduced by any interest earned by the Managing Member or CLNY with respect to bank accounts or other instruments or accounts held by it on behalf of the Company as permitted pursuant to Section 7.5. Such reimbursements
shall be in addition to any reimbursement of the Managing Member and CLNY as a result of indemnification pursuant to Section 7.7 hereof. 

C. To the extent practicable, Company expenses shall be billed directly to and paid by the Company. If and to the extent any reimbursements to
the Managing Member pursuant to this Section 7.4 constitute gross income to the Managing Member (as opposed to the repayment of advances made on behalf of the Company), such amounts shall (unless otherwise required by the Code and the
Regulations) constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Company and all Members, and shall not be treated as distributions for purposes of computing the
Members’ Capital Accounts. 

  
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 Section 7.5 Outside Activities of the Managing Member. The Managing Member, for so
long as it is the Managing Member of the Company, shall not directly or indirectly enter into or conduct any business, other than in connection with, (a) the ownership, acquisition and disposition of Membership Interests, (b) the
management of the business of the Company, (c) its operation as a reporting company with a class (or classes) of securities registered under the Exchange Act, (d) its operations as a REIT, (e) the offering, sale, syndication, private
placement or public offering of stock, bonds, securities or other interests, (f) financing or refinancing of any type related to the Company or its assets or activities, (g) the holding, operation, acquisition or disposition of Excluded
Properties in accordance with the terms of this Agreement with respect thereto and (h) such activities as are incidental thereto; provided, however, that the Managing Member may from time to time hold or acquire assets in its own
name or otherwise other than through the Company so long as the Managing Member takes commercially reasonable measures to insure that the economic benefits and burdens of such Property are otherwise vested in the Company, through assignment,
mortgage loan or otherwise or, if it is not commercially reasonable to vest such economic interests in the Company, the Members shall negotiate in good faith to amend this Agreement, including the definition of “Adjustment Factor,” to
reflect such activities and the direct ownership of assets by the Managing Member, as applicable. The Managing Member and all “qualified REIT subsidiaries” (within the meaning of Code Section 856(i)(2)) and disregarded entities
(determined for federal income tax purposes) thereof, taken as a group, shall not own any assets or take title to assets (other than temporarily in connection with an acquisition prior to contributing such assets to the Company) other than
(i) Excluded Properties, (ii) interests in “qualified REIT subsidiaries” (within the meaning of Code Section 856(i)(2)) or disregarded entities (determined for federal income tax purposes), (iii) Membership Interests as
the Managing Member or CLNY and (iv) such cash and cash equivalents, bank accounts or similar instruments or accounts as such group deems reasonably necessary, taking into account Section 7.1.D hereof and the requirements necessary for
CLNY to qualify as a REIT and for the Managing Member and CLNY to carry out their respective responsibilities contemplated under this Agreement and the Charter. The Managing Member and any Affiliates of the Managing Member may acquire Membership
Interests and shall be entitled to exercise all rights of a Member relating to such Membership Interests. 
 Section 7.6
Transactions with Affiliates. 
 A. The Company may lend or contribute funds or other assets to CLNY and its Subsidiaries or other
Persons in which CLNY has an equity investment, and such Persons may borrow funds from the Company, on terms and conditions no less favorable to the Company in the aggregate than would be available from unaffiliated third parties, as determined by
the Managing Member. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. It is expressly acknowledged and agreed by each Member that CLNY may (i) borrow funds from the Company in order
to redeem, at any time or from time to time, options or warrants previously or hereafter issued by CLNY, (ii) put to the Company, for cash, any rights, options, warrants or convertible or exchangeable securities that CLNY may desire or be
required to purchase or redeem, or (iii) borrow funds from the Company to acquire assets that become Excluded Properties or will be contributed to the Company for Membership Units. 

B. Except as provided in Section 7.5 hereof and subject to Section 3.1 hereof, the Company may transfer assets to joint ventures,
limited liability companies, partnerships, corporations, business trusts or other business entities in which it is or thereby becomes a participant upon such terms and subject to such conditions consistent with this Agreement and applicable law.

  
 49 

 C. The Managing Member, CLNY and their respective Affiliates may sell, transfer or convey any
property to the Company, directly or indirectly, on terms and conditions no less favorable to the Company, in the aggregate, than would be available from unaffiliated third parties, as determined by the Managing Member. 

D. The Managing Member or CLNY, without the approval of the other Members or any of them or any other Persons, may propose and adopt, on
behalf of the Company, employee benefit plans funded by the Company for the benefit of employees of the Managing Member, the Company, CLNY, Subsidiaries of the Company or any Affiliate of any of them in respect of services performed, directly or
indirectly, for the benefit of the Managing Member, CLNY, the Company or any of the Company’s Subsidiaries. 
 Section 7.7
Indemnification. 
 A. To the fullest extent permitted by applicable law, the Company shall indemnify each Indemnitee from and
against any and all losses, claims, damages, liabilities, joint or several, expenses (including attorney’s fees and other legal fees and expenses), judgments, fines, settlements and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Company (“Actions”), as set forth in this Agreement, in which such Indemnitee may be involved, or is threatened to
be involved, as a party or otherwise; provided, however, that the Company shall not indemnify an Indemnitee (i) for any Action if it is established by a final judgment of a court of competent jurisdiction that the actions or
omissions of the Indemnitee were material to the matter giving rise to the Action and were committed in bad faith, constituted fraud or were the result of active and deliberate dishonesty on the part of the Indemnitee, (ii) for an Action
initiated by the Indemnitee (other than an Action to enforce such Indemnitee’s rights to indemnification or advance of expenses under this Section 7.7), (iii) if the Indemnitee actually received an improper personal benefit in money,
property or services, or (iv) for a criminal proceeding if the Indemnitee had reasonable cause to believe that the Indemnitee’s act or omission was unlawful. Without limitation, the foregoing indemnity shall extend to any liability of any
Indemnitee, pursuant to a loan guaranty or otherwise, for any indebtedness of the Company or any Subsidiary of the Company (including any indebtedness which the Company or any Subsidiary of the Company has assumed or taken subject to), and the
Managing Member is hereby authorized and empowered, on behalf of the Company, to enter into one or more indemnity agreements consistent with the provisions of this Section 7.7 in favor of any Indemnitee having or potentially having liability
for any such indebtedness. It is the intention of this Section 7.7.A that the Company indemnify each Indemnitee to the fullest extent permitted by law. The termination of any proceeding by judgment, order or settlement does not create a
presumption that the Indemnitee did not meet the requisite standard of conduct set forth in this Section 7.7.A. The termination of any proceeding by conviction of an Indemnitee or upon a plea of nolo contendere or its equivalent by an
Indemnitee, or an entry of an order of probation against an Indemnitee prior to judgment, does not create a presumption that such Indemnitee acted in a manner contrary to that specified in this Section 7.7.A with respect to the subject matter
of such proceeding. Any indemnification pursuant to this Section 7.7 shall be made only out of the assets of the Company, and neither the Managing Member nor any other Holder shall have any obligation to contribute to the capital of the Company
or otherwise provide funds to enable the Company to fund its obligations under this Section 7.7. 
 B. To the fullest extent permitted
by law, expenses incurred by an Indemnitee who is a party to a proceeding or otherwise subject to or the focus of or is involved in any Action shall be paid or reimbursed by the Company as incurred by the Indemnitee in advance of the final
disposition of the Action upon receipt by the Company of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company, as authorized in
Section 7.7.A, has been met, and (ii) a written undertaking by or on behalf of the Indemnitee 

  
 50 

 
to repay the amount if it shall ultimately be determined that the standard of conduct has not been met, provided that such undertaking need not be secured and shall be without reference to
the financial ability for repayment. 
 C. The indemnification provided by this Section 7.7 shall be in addition to any other rights to
which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Members, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to the
benefit of the heirs, successors, assigns and administrators of the Indemnitee unless otherwise provided in a written agreement with such Indemnitee or in the writing pursuant to which such Indemnitee is indemnified. 

D. The Company and/or the Managing Member may, but shall not be obligated to, purchase and maintain, at the Company’s expense, insurance
on behalf of any of the Indemnitees and such other Persons as the Managing Member shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Company’s activities,
regardless of whether the Company would have the power to indemnify such Person against such liability under the provisions of this Agreement. 

E. Any liabilities which an Indemnitee incurs as a result of acting on behalf of the Company, or the Managing Member or CLNY (whether as a
fiduciary or otherwise) in connection with the operation, administration or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such liabilities are in the form of excise taxes assessed by the IRS, penalties
assessed by the Department of Labor, restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary of such plan, trust or other funding mechanism, or otherwise) shall be treated as liabilities or judgments or
fines under this Section 7.7, unless such liabilities arise as a result of the matters described in the proviso of the first sentence of Section 7.7.A. 

F. In no event may an Indemnitee subject any of the Holders to personal liability by reason of the indemnification provisions set forth in
this Agreement. 
 G. An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.7 because the
Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

H. The provisions of this Section 7.7 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall not in any way affect the Company’s
liability to any Indemnitee under this Section 7.7 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when such claims may arise or be asserted. 
 I. If and to the extent any payments to the Managing
Member pursuant to this Section 7.7 constitute gross income to the Managing Member (as opposed to the repayment of advances made on behalf of the Company), such amounts shall (unless otherwise required by the Code and the Regulations)
constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Company and all Members, and shall not be treated as distributions for purposes of computing the Members’
Capital Accounts. 

  
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 Section 7.8 Liability of the Managing Member. 

A. To the maximum extent permitted under the Act, the only duties that the Managing Member owes to the Company, any Member or any other Person
(including any creditor of any Member or assignee of any Membership Interest), fiduciary or otherwise, are to perform its contractual obligations as expressly set forth in this Agreement consistently with the implied contractual covenant of good
faith and fair dealing. The Managing Member, in its capacity as such, shall have no other duty, fiduciary or otherwise, to the Company, any Member or any other Person (including any creditor of any Member or any assignee of Membership Interest). The
provisions of this Agreement shall create contractual obligations of the Managing Member only, and no such provisions shall be interpreted to create, expand or modify any fiduciary duties of the Managing Member. 

B. The Non-Managing Members agree that: (i) the Managing Member is acting for the benefit of the Company, the Non-Managing Members and
CLNY’s stockholders, collectively; and (ii) in the event of a conflict between the interests of the Company or any Member, on the one hand, and the separate interests of CLNY or its stockholders, on the other hand, the Managing Member may
give priority to the separate interests of CLNY and its stockholders (including with respect to the tax consequences to Non-Managing Members, Assignees or CLNY’s stockholders) and, in the event of such a conflict, any action or failure to act
on the part of CLNY that gives priority to the separate interests of CLNY or its stockholders that does not result in a violation of the contract rights of the Non-Managing Members under this Agreement and does not violate any duty owed by the
Managing Member to the Company or the Members. 
 C. In exercising its authority under this Agreement, the Managing Member may, but shall be
under no obligation to, take into account the tax consequences to any Member of any action taken (or not taken) by it. Except as otherwise agreed by the Company, the Managing Member and the Company shall not have liability to a Non-Managing Member
under any circumstances as a result of any income tax liability incurred by such Non-Managing Member as a result of an action (or inaction) by the Managing Member or the Company pursuant to the Managing Member’s authority under this Agreement.

 D. Subject to its obligations and duties as managing member of the Company set forth in this Agreement and applicable law, the Managing
Member may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its employees or agents. The Managing Member shall not be responsible to the Company or
any Member for any misconduct or negligence on the part of any such employee or agent appointed by it in good faith. 
 E. In performing its
duties under this Agreement and the Act, the Managing Member shall be entitled to rely on the provisions of this Agreement and on any information, opinion, report or statement, including any financial statement or other financial data or the records
or books of account of the Company or any Subsidiary of the Company, prepared or presented by an officer, employee or agent of the Managing Member or any agent of the Company or any such Subsidiary, or by a lawyer, certified public accountant,
appraiser or other person engaged by the Company as to any matter within such person’s professional or expert competence, and any act taken or omitted to be taken in reliance upon any such information, opinion, report or statement as to matters
that the Managing Member reasonably believes to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion. The Managing Member may
rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it in good faith to be
genuine and to have been signed or presented by the proper party or parties. 

  
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 F. Notwithstanding any other provision of this Agreement or the Act, any action of the Managing
Member on behalf of the Company or any decision of the Managing Member to refrain from acting on behalf of the Company, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the
ability of CLNY to continue to qualify as a REIT, (ii) for CLNY otherwise to satisfy the REIT Requirements, (iii) to avoid CLNY incurring any taxes under Code Section 857 or Code Section 4981, (iv) to protect the ability of
the Company to be treated as a partnership or disregarded entity for federal income tax purposes, or (v) for any wholly owned Subsidiary of CLNY to continue to qualify as a “qualified REIT subsidiary” (within the meaning of Code
Section 856(i)(2)) or disregarded entity (determined for federal income tax purposes) thereof, is expressly authorized under this Agreement, is deemed approved by all of the Non-Managing Members and does not violate any duty of the Managing
Member to the Company or any other Member. 
 G. Notwithstanding anything herein to the contrary, except for the matters described in the
proviso of the first sentence of Section 7.7.A, or pursuant to any express indemnities given to the Company by the Managing Member pursuant to any other written instrument, the Managing Member shall not have any personal liability whatsoever,
to the Company or to the other Members, for any action or omission taken in its capacity as the Managing Member or for the debts or liabilities of the Company or the Company’s obligations hereunder except pursuant to Section 15.1 hereof.
Without limitation of the foregoing, and except for the matters described in the proviso of the first sentence of Section 7.7.A, or pursuant to Section 15.1 hereof or any such express indemnity, no property or assets of the Managing
Member, other than its interest in the Company, shall be subject to levy, execution or other enforcement procedures for the satisfaction of any judgment (or other judicial process) in favor of any other Member(s) and arising out of, or in connection
with, this Agreement. 
 H. No manager, member, officer or agent of the Managing Member, and no director, officer or agent of CLNY shall
have any duties directly to the Company or any Member. No manager, member, officer or agent of the Managing Member or any director, officer, or agent of CLNY shall be directly liable to the Company for money damages by reason of their service as
such. 
 I. Any amendment, modification or repeal of this Section 7.8 or any provision hereof shall be prospective only and shall not
in any way affect the limitations on the liability of the Managing Member, or its managers, members, directors, officers or agents, to the Company and the Members under this Section 7.8, as in effect immediately prior to such amendment,
modification or repeal, with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

Section 7.9 Title to Company Assets. Title to Company assets, whether real, personal or mixed and whether tangible or intangible,
shall be deemed to be owned by the Company as an entity, and no Member, individually or collectively with other Members or Persons, shall have any ownership interest in such Company assets or any portion thereof. Title to any or all of the Company
assets may be held in the name of the Company, the Managing Member or one or more nominees, as the Managing Member may determine, including Affiliates of the Managing Member. The Managing Member hereby declares and warrants that any Company assets
for which legal title is held in the name of the Managing Member or any nominee or Affiliate of the Managing Member shall be held by the Managing Member for the use and benefit of the Company in accordance with the provisions of this Agreement. All
Company assets shall be recorded as the property of the Company in its books and records, irrespective of the name in which legal title to such Company assets is held. 

Section 7.10 Reliance by Third Parties. Notwithstanding anything to the contrary in this Agreement, any Person dealing with the
Company shall be entitled to assume that the Managing Member has full power and authority, without the consent or approval of any other Member, or 

  
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Person, to encumber, sell or otherwise use in any manner any and all assets of the Company and to enter into any contracts on behalf of the Company, and take any and all actions on behalf of the
Company, and such Person shall be entitled to deal with the Managing Member as if it were the Company’s sole party in interest, both legally and beneficially. Each Member hereby waives any and all defenses or other remedies that may be
available against such Person to contest, negate or disaffirm any action of the Managing Member in connection with any such dealing. In no event shall any Person dealing with the Managing Member or its representatives be obligated to ascertain that
the terms of this Agreement have been complied with or to inquire into the necessity or expediency of any act or action of the Managing Member or its representatives. Each and every certificate, document or other instrument executed on behalf of the
Company by the Managing Member or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (i) at the time of the execution and delivery of such certificate, document or
instrument, this Agreement was in full force and effect, (ii) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Company, and (iii) such
certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Company. 

ARTICLE 8 
 RIGHTS AND
OBLIGATIONS OF MEMBERS 
 Section 8.1 Limitation of Liability. No Non-Managing Member, in its capacity as such, shall have any
duties or liability under this Agreement except as expressly provided in this Agreement (including Section 10.4 hereof) or under the Act. To the maximum extent permitted by law, no Member, including CLNY, shall have any personal liability
whatsoever, to the Company or to the other Members, for any action or omission taken in its capacity as a member or for the debts or liabilities of the Company or the Company’s obligations hereunder except pursuant to any express indemnities
given to the Company by such Member pursuant to any other written instrument and except for liabilities of the Managing Member pursuant to Section 7.8 hereof. Without limitation of the foregoing, and except pursuant to any such express
indemnity (and, in the case of the Managing Member, pursuant to Section 7.8 hereof), no property or assets of a Member, other than its interest in the Company, shall be subject to levy, execution or other enforcement procedures for the
satisfaction of any judgment (or other judicial process) in favor of any other Member(s) and arising out of, or in connection with, this Agreement. 

Section 8.2 Management of Business. No Member or Assignee (other than in its separate capacity as the Managing Member, any of its
Affiliates or any officer, director, manager, member, employee, partner, agent, representative or trustee of the Managing Member, the Company or any of their Affiliates, in their capacity as such) shall take part in the operations, management or
control (within the meaning of the Act) of the Company’s business, transact any business in the Company’s name or have the power to sign documents for or otherwise bind the Company. The transaction of any such business by the Managing
Member, any of its Affiliates or any officer, director, manager, member, employee, partner, agent, representative or trustee of the Managing Member, the Company or any of their Affiliates, in their capacity as such, shall not affect, impair or
eliminate the limitations on the liability of the Members or Assignees under this Agreement. 
 Section 8.3 Outside Activities of
Non-Managing Members. Subject to any agreements entered into pursuant to Section 7.6 hereof and any other agreements entered into by a Non-Managing Member or any of its Affiliates with the Managing Member, the Company or a Subsidiary
(including any employment agreement), any Non-Managing Member and any Assignee, officer, director, employee, agent, representative, trustee, Affiliate, manager, member or stockholder of any Non-Managing Member shall be entitled to and may have
business interests and engage in business activities 

  
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in addition to those relating to the Company, including business interests and activities that are in direct or indirect competition with the Company or that are enhanced by the activities of the
Company. Neither the Company nor any Member shall have any rights by virtue of this Agreement in any business ventures of any Non-Managing Member or Assignee. Subject to such agreements, none of the Non-Managing Members nor any other Person shall
have any rights by virtue of this Agreement or the company relationship established hereby in any business ventures of any other Person (other than CLNY, to the extent expressly provided herein), and such Person shall have no obligation pursuant to
this Agreement, subject to Section 7.6 hereof and any other agreements entered into by a Non-Managing Member or its Affiliates with the Managing Member, the Company or a Subsidiary, to offer any interest in any such business ventures to the
Company, any Non-Managing Member, or any such other Person, even if such opportunity is of a character that, if presented to the Company, any Non-Managing Member or such other Person, could be taken by such Person. 

Section 8.4 Return of Capital. Except pursuant to Section 15.1 or any Membership Unit Designation, no Member shall be
entitled to the withdrawal or return of its Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon dissolution of the Company as provided herein. Except to the extent provided in Article 5 or Article 6
hereof or otherwise expressly provided in this Agreement or in any Membership Unit Designation, no Member or Assignee shall have priority over any other Member or Assignee either as to the return of Capital Contributions or as to profits, losses or
distributions. 
 Section 8.5 Rights of Non-Managing Members Relating to the Company. 

A. In addition to other rights provided by this Agreement or by the Act, and subject to Section 8.5C, the Managing Member shall deliver
to each Non-Managing Member a copy of any information mailed to all of the common stockholders of CLNY as soon as practicable after such mailing. 

B. The Company shall notify any Non-Managing Member that is a Qualifying Party, on request, of the then current Adjustment Factor or any
change made to the Adjustment Factor. 
 C. Notwithstanding any other provision of this Section 8.5, the Managing Member may keep
confidential from the Non-Managing Members (or any of them), for such period of time as the Managing Member determines to be reasonable, any information that (i) the Managing Member believes to be in the nature of trade secrets or other
information the disclosure of which the Managing Member in good faith believes is not in the best interests of the Company or CLNY or (ii) the Company or the Managing Member is required by law or by agreement to keep confidential. 

Section 8.6 No Rights as Objecting Member. No Non-Managing Member and no Holder of a Membership Interest shall be entitled to
exercise any appraisal rights in connection with a merger, consolidation or conversion of the Company. 
 Section 8.7 No Right to
Certificate Evidencing Units; Article 8 Securities. Membership Units shall not be certificated. No Non-Managing Member shall be entitled to a certificate evidencing the Membership Units held by such Member. Any certificate evidencing Membership
Units issued prior to the date hereof shall no longer evidence Membership Units. The Company shall not elect to treat any Membership Unit as a “security” governed by (x) Article 8 of the Delaware Uniform Commercial Code or
(y) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction. 

  
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 ARTICLE 9 

BOOKS, RECORDS, ACCOUNTING AND REPORTS 

Section 9.1 Records and Accounting. 

A. The Managing Member shall keep or cause to be kept at the principal business office of the Company those records and documents, if any,
required to be maintained by the Act and other books and records deemed by the Managing Member to be appropriate with respect to the Company’s business, including all books and records necessary to provide to the Members any information, lists
and copies of documents required to be provided pursuant to Section 8.5.A, Section 9.3 or Article 13 hereof. Any records maintained by or on behalf of the Company in the regular course of its business may be kept on any information
storage device, provided that the records so maintained are convertible into clearly legible written form within a reasonable period of time. 

B. The books of the Company shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with generally
accepted accounting principles, or on such other basis as the Managing Member determines to be necessary or appropriate. To the extent permitted by sound accounting practices and principles, the Company and the Managing Member may operate with
integrated or consolidated accounting records, operations and principles. 
 Section 9.2 Fiscal Year. The Fiscal Year of the
Company shall be the calendar year. 
 Section 9.3 Reports. 

A. As soon as practicable, but in no event later than one hundred twenty (120) days after the close of each Fiscal Year, the Managing
Member shall cause to be mailed to each Non-Managing Member of record as of the close of the Fiscal Year, financial statements of the Company, or of CLNY if such statements are prepared solely on a consolidated basis with CLNY, for such Fiscal Year,
presented in accordance with generally accepted accounting principles, such statements to be audited by a nationally recognized firm of independent public accountants selected by the Managing Member. 

B. As soon as practicable, but in no event later than ninety (90) days after the close of each calendar quarter (except the last calendar
quarter of each year), the Managing Member shall cause to be mailed to each Non-Managing Member of record as of the last day of the calendar quarter, a report containing unaudited financial statements of the Company, or of CLNY if such statements
are prepared solely on a consolidated basis with CLNY, for such calendar quarter, and such other information as may be required by applicable law or regulation or as the Managing Member determines to be appropriate. 

C. The Managing Member may satisfy its obligations under Section 9.3.A and Section 9.3.B by posting or making available the reports
specified in such sections on a website maintained by CLNY or by filing reports containing the information specified in Sections 9.1.A and 9.1.B on the EDGAR system (or any successor system) of the SEC. 

ARTICLE 10 
 TAX MATTERS 

Section 10.1 Preparation of Tax Returns. The Managing Member shall arrange for the preparation and timely filing of all returns
with respect to Company income, gains, deductions, losses and other items required of the Company for federal and state income tax purposes and shall use all 

  
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reasonable effort to furnish, within ninety (90) days of the close of each taxable year, the tax information reasonably required by Non-Managing Members and for federal and state income tax
and any other tax reporting purposes. The Non-Managing Members shall promptly provide the Managing Member with such information relating to the CC Contributed Assets or any other assets contributed by the Contributors (including assets contributed
to the Company for income tax purposes pursuant to the CC Contribution Agreement), including tax basis and other relevant information, as may be reasonably requested by the Managing Member from time to time. For purposes of this provision, the terms
CC Contributed Assets and Contributors shall have the meaning ascribed thereto in the CC Contribution Agreement. 
 Section 10.2
Tax Elections. 
 A. Except as otherwise provided herein, the Managing Member shall determine whether to make any available election
pursuant to the Code, including the election under Code Section 754 and the election to use the “recurring item” method of accounting provided under Code Section 461(h) with respect to property taxes imposed on the Company’s
Properties; provided, however, that, if the “recurring item” method of accounting is elected with respect to such property taxes, the Company shall pay the applicable property taxes prior to the date provided in Code
Section 461(h) for purposes of determining economic performance. The Managing Member shall have the right to seek to revoke any such election (including any election under Code Sections 461(h) and 754). 

B. Without limiting the foregoing, the Members, intending to be legally bound, hereby authorize the Managing Member, on behalf of the Company,
to make an election (the “LV Safe Harbor Election”) to have the “liquidation value” safe harbor provided in Proposed Treasury Regulation § 1.83-3(1) and the Proposed Revenue Procedure set forth in Internal Revenue
Service Notice 2005-43, as such safe harbor may be modified when such proposed guidance is issued in final form or as amended by subsequently issued guidance (the “LV Safe Harbor”), apply to LTIP Units and any interest in the
Company transferred to, or for the benefit of, a service provider while the Safe Harbor Election remains effective, to the extent such interest meets the LV Safe Harbor requirements (collectively, such interests are referred to as “LV Safe
Harbor Interests”). The Tax Matters Member is authorized and directed to execute and file the LV Safe Harbor Election on behalf of the Company and the Members. The Company and the Members (including any person to whom an LTIP Unit or other
interest in the Company is transferred in connection with the performance of services) hereby agree to comply with all requirements of the LV Safe Harbor (including forfeiture allocations) with respect to all LV Safe Harbor Interests and to prepare
and file all U.S. federal income tax returns reporting the tax consequences of the issuance and vesting of LV Safe Harbor Interests consistent with such final LV Safe Harbor guidance. The Company is also authorized to take such actions as are
necessary to achieve, under the LV Safe Harbor, the effect that the election and compliance with all requirements of the LV Safe Harbor referred to above would be intended to achieve under Proposed Treasury Regulation Section 1.83-3, including
amending this Agreement. 
 Section 10.3 Tax Matters Member. 

A. The Managing Member is hereby designated as the tax matters partner within the meaning of Section 6231(a)(7) of the Code (“Tax
Matters Member”). The Tax Matters Member shall receive no compensation for its services. All third-party costs and expenses incurred by the Tax Matters Member in performing its duties as such (including legal and accounting fees and
expenses) shall be borne by the Company in addition to any reimbursement pursuant to Section 7.4 hereof. Nothing herein shall be construed to restrict the Company from engaging a law, advisory, or accounting firm to assist the Tax Matters
Member in discharging its duties hereunder. At the request of any Member, the Managing Member agrees to inform such Member regarding the preparation and filing of any returns and with 

  
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respect to any subsequent audit or litigation relating to such returns; provided, however, that the Managing Member shall have the exclusive power to determine whether to file, and
the content of, such returns. 
 B. The Tax Matters Member is authorized, but not required: 

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

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

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

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

(5) to enter into an agreement with the IRS to extend the period for assessing any tax that is attributable to any item
required to be taken into account by a Member for tax purposes, or an item affected by such item; and 
 (6) to take any
other action on behalf of the Members or any of them in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations. 

The taking of any action and the incurring of any expense by the Tax Matters Member in connection with any such proceeding, except to the extent required by
law, is a matter in the sole and absolute discretion of the Tax Matters Member and the provisions relating to indemnification of the Managing Member set forth in Section 7.7 hereof shall be fully applicable to the Tax Matters Member in its
capacity as such. 
 Section 10.4 Withholding. Each Member hereby authorizes the Company to withhold from or pay on behalf of
or with respect to such Member any amount of federal, state, local or foreign taxes that the Managing Member determines that the Company is required to withhold or pay with respect to any amount distributable or allocable to such Member pursuant to
this Agreement, including 

  
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any taxes required to be withheld or paid by the Company pursuant to Code Section 1441, Code Section 1442, Code Section 1445 or Code Section 1446. Any amount paid on behalf of
or with respect to a Member shall constitute an advance by the Company to such Member, which advance shall be repaid by such Member within fifteen (15) days after notice from the Managing Member that such payment must be made except to the
extent that (i) the Company withholds such payment from a distribution that would otherwise be made to the Member or (ii) the Managing Member determines that such payment may be satisfied out of the Available Cash of the Company that
would, but for such payment, be distributed to the Member, and such amount actually is satisfied out of such cash. Each Member hereby unconditionally and irrevocably grants to the Company a security interest in such Member’s Membership Interest
to secure such Member’s obligation to pay to the Company any amounts required to be paid pursuant to this Section 10.4 and subject to the prior sentence. In the event that a Member fails to pay any amounts owed to the Company pursuant to
this Section 10.4 when due, the Managing Member may elect to make the payment to the Company on behalf of such defaulting Member, and in such event shall be deemed to have loaned such amount to such defaulting Member and shall succeed to all
rights and remedies of the Company as against such defaulting Member (including the right to receive distributions). Any amounts payable (or portion thereof that remain unsatisfied) by a Member hereunder shall bear interest at the base rate on
corporate loans at large United States money center commercial banks, as published from time to time in the Wall Street Journal, plus four (4) percentage points (but not higher than the maximum lawful rate) from the date such amount is
due (i.e., fifteen (15) days after demand) until such amount is paid in full. Each Member shall take such actions as the Company or the Managing Member shall request in order to perfect or enforce the security interest created hereunder. 

Section 10.5 Organizational Expenses. The Managing Member may cause the Company to elect to deduct expenses, if any, incurred by
it in organizing the Company ratably over a 180-month period as provided in Code Section 709. 
 ARTICLE 11 

MEMBER TRANSFERS AND WITHDRAWALS 

Section 11.1 Transfer. 

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

B. No Membership Interest shall be Transferred, in whole or in part, except in accordance with the terms and conditions set forth in this
Article 11 and any applicable Non-Managing Member Ancillary Agreement. Any Transfer or purported Transfer of a Membership Interest not made in accordance with this Article 11 and any applicable Non-Managing Member Ancillary Agreement shall
be null and void ab initio. 
 C. No Transfer of any Membership Interest may be made to a lender to the Company or any Person who is
related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender to the Company whose loan constitutes a Nonrecourse Liability, without the consent of the Managing Member; provided that as a condition to such consent,
the Managing Member may require the lender to enter into an arrangement with the Company and the Managing Member to redeem or exchange for the REIT Shares Amount any Membership Units in which a security interest is held by such lender simultaneously
with the time at which such lender would be deemed to be a member in the Company for purposes of allocating liabilities to such lender under Code Section 752. 

  
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 Section 11.2 Transfer of the Managing Member’s Membership Interest. 

A. Subject to compliance with the other provisions of this Article 11, the Managing Member may Transfer all or any portion of its
Membership Interest at any time (i) to any Person that is, at the time of such Transfer, a direct or indirect wholly owned Subsidiary of CLNY, including any “qualified REIT subsidiary” (within the meaning of Code
Section 856(i)(2)) and that immediately following such Transfer owns, directly or indirectly, all the assets of CLNY and its Subsidiaries, without the Consent of any Member, and may designate the transferee to become the new Managing Member
under Section 12.1, or (ii) in connection with a Termination Transaction as permitted under Section 11.7. 
 B. The Managing
Member may not voluntarily withdraw as a managing member of the Company without the Consent of the Non-Managing Members, except in connection with a Transfer of the Managing Member’s entire Membership Interest permitted in this Article 11
(including in accordance with Section 11.7) and the admission of the Transferee as a successor managing member of the Company pursuant to the Act and this Agreement. 

C. It is a condition to any Transfer of the entire Membership Interest of a sole Managing Member otherwise permitted hereunder (including in
accordance with Section 11.7) that (i) coincident or prior to such Transfer, the transferee is admitted as a Managing Member pursuant to the Act and this Agreement; (ii) the transferee assumes by operation of law or express agreement
all of the obligations of the transferor Managing Member under this Agreement with respect to such Transferred Membership Interest; and (iii) the transferee has executed such instruments as may be necessary to effectuate such admission and to
confirm the agreement of such transferee to be bound by all the terms and provisions of this Agreement applicable to the Managing Member and the admission of such transferee as a Managing Member. 

Section 11.3 Non-Managing Members’ Rights to Transfer. 

A. General. Subject to any Non-Managing Member Ancillary Agreement, each Non-Managing Member, and each transferee of such Non-Managing
Member’s Membership Interest or Assignee thereof pursuant to a Permitted Transfer, may not Transfer all or any portion of such Membership Interest to any Person without the consent of the Managing Member, which consent may be withheld in the
Managing Member’s sole and absolute discretion. Notwithstanding the foregoing, but subject to Section 11.1.C and 11.3.C, any Non-Managing Member may, at any time, without the consent of the Managing Member, Transfer all or any portion of
its Membership Interest pursuant to a Permitted Transfer (including, in the case of a Non-Managing Member that is a Permitted Lender Transferee, any Transfer of a Membership Interest to a Third-Party Pledge Transferee). Any Transfer of a Membership
Interest by a Non-Managing Member or an Assignee is subject to Section 11.4 and to satisfaction of the following conditions: 

(1) Qualified Transferee. Any Transfer of a Membership Interest shall be made only to a single Qualified Transferee;
provided, however, that, for such purposes, all Qualified Transferees that are Affiliates, or that comprise investment accounts or funds managed by a single Qualified Transferee and its Affiliates, shall be considered together to be a
single Qualified Transferee. 
 (2) Opinion of Counsel. The Transferor shall deliver or cause to be delivered to the
Managing Member an opinion of counsel reasonably satisfactory to it to the effect that the proposed Transfer may be effected without registration under the Securities Act and will not otherwise violate the registration provisions of the Securities
Act and the regulations promulgated thereunder or violate any state securities laws or 

  
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regulations applicable to the Company or the Membership Interests Transferred; provided, however, that the Managing Member may waive this condition upon the request of the Transferor. If, in the
opinion of such counsel, such Transfer would require the filing of a registration statement under the Securities Act or would otherwise violate any federal or state securities laws or regulations applicable to the Company or the Membership Units,
the Managing Member may prohibit any Transfer otherwise permitted under this Section 11.3 by a Non-Managing Member of Membership Interests. 

(3) Minimum Transfer Restriction. Any Transferring Member must Transfer not less than the lesser of (i) five
hundred (500) Membership Units or (ii) all of the remaining Membership Units owned by such Transferring Member; provided, however, that, for purposes of determining compliance with the foregoing restriction, all Membership Units owned by
Affiliates of a Member shall be considered to be owned by such Member. 
 It is a condition to any Transfer otherwise permitted hereunder that the
transferee assumes by operation of law or express agreement all of the obligations of the transferor Member under this Agreement with respect to such Transferred Membership Interest, and no such Transfer (other than pursuant to a statutory merger or
consolidation wherein all obligations and liabilities of the transferor Member are assumed by a successor corporation by operation of law) shall relieve the transferor Member of its obligations under this Agreement without the approval of the
Managing Member. Notwithstanding the foregoing, any transferee of any Transferred Membership Interest shall be subject to any and all ownership limitations (including the Ownership Limit) contained in the Charter that may limit or restrict such
transferee’s ability to exercise its Redemption rights, including the Ownership Limit. Any transferee, whether or not admitted as a Substituted Member, shall take subject to the obligations of the transferor hereunder. Unless admitted as a
Substituted Member, no transferee, whether by a voluntary Transfer, by operation of law or otherwise, shall have any rights hereunder, other than the rights of an Assignee as provided in Section 11.5 hereof. 

B. Incapacity. If a Non-Managing Member is subject to Incapacity, the executor, administrator, trustee, committee, guardian,
conservator or receiver of such Member’s estate shall have all the rights of a Non-Managing Member, but not more rights than those enjoyed by other Non-Managing Members, for the purpose of settling or managing the estate, and such power as the
Incapacitated Member possessed to Transfer all or any part of its interest in the Company. The Incapacity of a Member, in and of itself, shall not dissolve or terminate the Company. 

C. Adverse Tax Consequences. No Transfer by a Non-Managing Member of its Membership Interests (including any Redemption, any other
acquisition of Membership Units by the Managing Member or any acquisition of Membership Units by the Company and including any Permitted Transfer) may be made to or by any Person if in the opinion of legal counsel for the Company, (i) such
Transfer would create a material risk of the Company being treated as an association taxable as a corporation, (ii) there would be a material risk that such Transfer would be treated as effectuated through an “established securities
market” or a “secondary market (or the substantial equivalent thereof),” within the meaning of Code Section 7704 or otherwise create a material risk of the Company being treated as a “publicly traded partnership” within
the meaning of Code Section 469(k)(2) or Code Section 7704, (iii) such Transfer would create a material risk that the Company to cease to be classified as a partnership for federal income tax purposes (except as a result of the
Redemption (or acquisition by CLNY) of all Membership Units held by all Members (other than CLNY)), or such Transfer would result in a termination of the Company under Code Section 708(b)(1)(B), or (iv) such Transfer would create a
material risk that CLNY would cease to comply with the REIT Requirements or any wholly owned Subsidiary of CLNY to cease to qualify as either a “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)) or disregarded
entity (determined for federal income tax purposes) thereof). 

  
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 Section 11.4 Substituted Members. 

A. A transferee of the interest of a Non-Managing Member shall be admitted as a Substituted Member only with the consent of the Managing
Member, which may be withheld in its sole and absolute discretion; provided, however, that a Permitted Transferee that is a past or present employee of the Company, CLNY or their Subsidiaries, CC, CCH or Colony Realty Partners, LLC
shall be admitted as a Substituted Member pursuant to a Permitted Transfer without the consent of the Managing Member. The failure or refusal by the Managing Member to permit a transferee of any such interests to become a Substituted Member shall
not give rise to any cause of action against the Company or the Managing Member. Subject to the foregoing, an Assignee shall not be admitted as a Substituted Member until and unless it furnishes to the Managing Member (i) evidence of
acceptance, in form and substance satisfactory to CLNY, of all the terms, conditions and applicable obligations of this Agreement, (ii) a counterpart signature page to this Agreement executed by such Assignee and (iii) such other documents
and instruments as the Managing Member may require to effect such Assignee’s admission as a Substituted Member. 
 B. Concurrently
with, and as evidence of, the admission of a Substituted Member, the Managing Member shall amend the Register and the books and records of the Company to reflect the name, address and number of Membership Units of such Substituted Member and to
eliminate or adjust, if necessary, the name, address and number of Membership Units of the predecessor of such Substituted Member. 
 C. A
transferee who has been admitted as a Substituted Member in accordance with this Article 11 shall have all the rights and powers and be subject to all the restrictions and liabilities of a Non-Managing Member under this Agreement. 

Section 11.5 Assignees. If the Managing Member’s consent is required for the admission of any transferee as a Substituted
Member, as described in Section 11.4 hereof, and the Managing Member withholds such consent, such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be entitled to all the rights of an assignee of a
membership interest under the Act, including the right to receive distributions from the Company and the share of Net Income, Net Losses and other items of income, gain, loss, deduction and credit of the Company attributable to the Membership Units
assigned to such transferee and the rights to Transfer the Membership Units provided in this Article 11, but shall not be deemed to be a holder of Membership Units for any other purpose under this Agreement (other than as expressly provided in
Section 15.1 hereof with respect to a Qualifying Party that becomes a Tendering Party), and shall not be entitled to effect a Consent or vote with respect to such Membership Units on any matter presented to the Non-Managing Members for approval
(such right to Consent or vote, to the extent provided in this Agreement or under the Act, fully remaining with the transferor Member). In the event that any such transferee desires to make a further assignment of any such Membership Units, such
transferee shall be subject to all the provisions of this Article 11 to the same extent and in the same manner as any Non-Managing Member desiring to make an assignment of Membership Units. 

Section 11.6 General Provisions. 

A. No Non-Managing Member may withdraw from the Company other than: (i) as a result of a permitted Transfer of all of such Member’s
Membership Interest in accordance with this Article 11 with respect to which the transferee becomes a Substituted Member; (ii) pursuant to a 

  
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redemption (or acquisition by the Managing Member or CLNY) of all of its Membership Interest pursuant to a Redemption under Section 15.1 hereof and/or pursuant to any Membership Unit
Designation; or (iii) as a result of the acquisition by the Managing Member or CLNY of all of such Member’s Membership Interest, whether or not pursuant to Section 15.1.B hereof. 

B. Any Member who shall Transfer all of its Membership Units in a Transfer (i) permitted pursuant to this Article 11 where such
transferee was admitted as a Substituted Member, (ii) pursuant to the exercise of its rights to effect a redemption of all of its Membership Units pursuant to a Redemption under Section 15.1 hereof and/or pursuant to any Membership Unit
Designation, or (iii) to CLNY, whether or not pursuant to Section 15.1.B hereof, shall cease to be a Member. 
 C. If any
Membership Unit is Transferred in compliance with the provisions of this Article 11, or is redeemed by the Company, or acquired by CLNY pursuant to Section 15.1 hereof, on any day other than the first day of a Fiscal Year, then Net Income,
Net Losses, each item thereof and all other items of income, gain, loss, deduction and credit attributable to such Membership Unit for such Fiscal Year shall be allocated to the transferor Member or the Tendering Party (as the case may be) and, in
the case of a Transfer or assignment other than a Redemption, to the transferee Member, by taking into account their varying interests during the Fiscal Year in accordance with Code Section 706(d), using the “interim closing of the
books” method or another permissible method selected by the Managing Member. Solely for purposes of making such allocations, each of such items for the calendar month in which a Transfer occurs shall be allocated to the transferee Member and
none of such items for the calendar month in which a Transfer or a Redemption occurs shall be allocated to the transferor Member, or the Tendering Party (as the case may be) if such Transfer occurs on or before the fifteenth (15th) day of the
month, otherwise such items shall be allocated to the transferor. All distributions of Available Cash attributable to such Membership Unit with respect to which the Company Record Date is before the date of such Transfer, assignment or Redemption
shall be made to the transferor Member or the Tendering Party (as the case may be) and, in the case of a Transfer other than a Redemption, all distributions of Available Cash thereafter attributable to such Membership Unit shall be made to the
transferee Member. 
 D. In addition to any other restrictions on Transfer herein contained or contained in any applicable Non-Managing
Member Ancillary Agreement, in no event may any Transfer or assignment of a Membership Interest by any Member (including any Redemption, any acquisition of Membership Units by CLNY or any other acquisition of Membership Units by the Company) be made
without the consent of the Managing Member, which may be withheld in its sole and absolute discretion: (i) to any person or entity who lacks the legal right, power or capacity to own a Membership Interest; (ii) in violation of applicable
law; (iii) of any component portion of a Membership Interest, such as the Capital Account, or rights to distributions, separate and apart from all other components of a Membership Interest; (iv) in the event that such Transfer would create
a material risk that CLNY would cease to comply with the REIT Requirements or any wholly owned Subsidiary of CLNY to cease to qualify as either a “qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)) or
disregarded entity (determined for federal income tax purposes) thereof); (v) if such Transfer would create a material risk that the Company to cease to be classified as a partnership for federal income tax purposes (except as a result of the
Redemption (or acquisition by CLNY) of all Membership Units held by all Members (other than CLNY)), or such transfer would result in a termination of the Company under Code Section 708(b)(1)(B); (vi) if such Transfer would cause the
Company to become, with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in ERISA Section 3(14)) or with respect to a plan subject to Section 4975 of the Code, a
“disqualified person” (as defined in Code Section 4975(c)); (vii) if such Transfer would, in the opinion of legal counsel to the Company, cause any portion of the assets of the Company to constitute assets of any employee benefit
plan pursuant to Department of Labor Regulations Section 2510.3-101, as modified by Section 3(42) of ERISA; (viii) if such Transfer requires the registration of such Membership Interest pursuant to any applicable federal or

  
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state securities laws; (ix) if such Transfer would create a material risk that the Company would become a “publicly traded partnership,” as such term is defined in Code
Section 469(k)(2) or Code Section 7704(b) or would otherwise create a material risk that the Company would be treated as a corporation for federal income tax purposes; (x) if such Transfer would cause the Company to have more than one
hundred (100) partners for tax purposes (including as partners those persons indirectly owning an interest in the Company through a partnership, limited liability company, subchapter S corporation or grantor trust); (xi) if such Transfer
would cause the Company to become a reporting company under the Exchange Act; (xii) if such Transfer subjects the Company to regulation under the Investment Company Act of 1940, the Investment Advisors Act of 1940 or ERISA, each as amended.

 E. Transfers by a Non-Managing Member pursuant to this Article 11 or pursuant to any applicable Non-Managing Member Ancillary
Agreement but not pursuant to Article 15, other than a Permitted Transfer to a Permitted Transferee pursuant to the exercise of remedies under a Pledge, may only be made on the first day of a fiscal quarter of the Company, unless the Managing Member
otherwise agrees. 
 Section 11.7 Restrictions on Termination Transactions. Neither CLNY nor the Managing Member shall engage
in, or cause or permit, a Termination Transaction, unless the conditions in at least one of the following paragraphs is met: 
 A. the
Consent of the Non-Managing Members is obtained; 
 B. in connection with any such Termination Transaction, each holder of Membership Common
Units (other than CLNY and its wholly owned Subsidiaries) will receive, or will have the right to elect to receive, for each Membership Common Unit, an amount of cash, securities or other property equal to the product of the Adjustment Factor and
the greatest amount of cash, securities or other property paid to a holder of one REIT Share in consideration of one REIT Share pursuant to the terms of such Termination Transaction; provided, that if, in connection with such Termination
Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of a majority of the outstanding REIT Shares, each holder of Membership Common Units (other than CLNY and its wholly owned subsidiaries) will
receive, or will have the right to elect to receive, the greatest amount of cash, securities or other property which such holder of Membership Common Units would have received had it exercised its right to Redemption pursuant to Article 15
hereof and received REIT Shares in exchange for its Membership Common Units immediately prior to the expiration of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange offer and then such Termination
Transaction shall have been consummated (the fair market value, at the time of the Termination Transaction, of the amount specified herein with respect to each Membership Common Unit is referred to as the “Transaction
Consideration”); 
 C. all of the following conditions are met: (i) substantially all of the assets directly or indirectly
owned by the Company prior to the announcement of the Termination Transaction are, immediately after the Termination Transaction, owned directly or indirectly by the Company or another limited liability company or limited partnership which is the
survivor of a merger, consolidation or combination of assets with the Company (in each case, the “Surviving Company”); (ii) the Surviving Company is classified as a partnership for U.S. federal income tax purposes; and
(iii) the rights of such Members with respect to the Surviving Company include: (x) if CLNY or its successor is a REIT with a single class of Publicly Traded common equity securities, the right to redeem their interests in the Surviving
Company on terms substantially comparable to those in Section 15.1 of this Agreement for either: (1) a number of such REIT’s Publicly Traded common equity securities with a fair market value, as of the date of consummation of such
Termination Transaction, equal to the Transaction Consideration, subject to anti-dilution adjustments substantially comparable to those set forth in the definition of 

  
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“Adjustment Factor” herein (the “Successor Shares Amount”); or (2) cash in an amount equal to the fair market value of the Successor Shares Amount at the time of
such redemption, determined in a manner consistent with the determination of the “Cash Amount” herein; or (y) if CLNY or its successor is not a REIT with a single class of Publicly Traded common equity securities, the right to redeem
their interests in the Surviving Company on terms substantially comparable to those in Section 15.1 of this Agreement for cash in an amount equal to the Transaction Consideration; or 

D. in any Termination Transaction that is a merger, consolidation or other combination with or into another Person, immediately following the
consummation of such Termination Transaction, the equity holders of the surviving entity are substantially identical to the shareholders of CLNY prior to such transaction. 

ARTICLE 12 
 ADMISSION OF MEMBERS

 Section 12.1 Admission of Successor Managing Member. A successor to all or a portion of the Managing Member’s
Membership Interest pursuant to Section 11.2.A hereof who the Managing Member has designated to become a successor Managing Member shall be admitted to the Company as the Managing Member, effective immediately upon the Transfer of such
Membership Interest to it. Upon any such Transfer and the admission of any such transferee as a successor Managing Member in accordance with this Section 12.1, the transferor Managing Member shall be relieved of its obligations under this
Agreement and shall cease to be a Managing Member without any separate Consent of the Members or the consent or approval of any Member. Any such successor shall carry on the business of the Company without dissolution. In each case, the admission
shall be subject to the successor Managing Member executing and delivering to the Company an acceptance of all of the terms and conditions of this Agreement and such other documents or instruments as may be required to effect the admission. In the
event that the Managing Member withdraws from the Company, or transfers its entire Membership Interest, in violation of this Agreement, or otherwise dissolves or terminates or ceases to be the Managing Member, a Majority in Interest of the Members
may elect to continue the Company by selecting a successor Managing Member in accordance with Section 13.1.A hereof. 

Section 12.2 Admission of Additional Members. 

A. A Person (other than an existing Member) who makes a Capital Contribution to the Company in exchange for Membership Units in accordance
with this Agreement shall be admitted to the Company as an Additional Member only upon furnishing to the Managing Member (i) evidence of acceptance, in form and substance satisfactory to the Managing Member, of all of the terms and conditions
of this Agreement, including the power of attorney granted in Section 2.4 hereof, (ii) a counterpart signature page to this Agreement executed by such Person, and (iii) such other documents or instruments as may be required by the
Managing Member in order to effect such Person’s admission as an Additional Member. Concurrently with, and as evidence of, the admission of an Additional Member, the Managing Member shall amend the Register and the books and records of the
Company to reflect the name, address, number and type of Membership Units of such Additional Member. 
 B. Notwithstanding anything to the
contrary in this Section 12.2, no Person shall be admitted as an Additional Member without the consent of the Managing Member. The admission of any Person as an Additional Member shall become effective on the date upon which the name of such
Person is recorded on the books and records of the Company, following the consent of the Managing Member to such admission and the satisfaction of all the conditions set forth in Section 12.2.A. 

  
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 C. If any Additional Member is admitted to the Company on any day other than the first day of a
Fiscal Year, then Net Income, Net Losses, each item thereof and all other items of income, gain, loss, deduction and credit allocable among Holders for such Fiscal Year shall be allocated among such Additional Member and all other Holders by taking
into account their varying interests during the Fiscal Year in accordance with Code Section 706(d), using the “interim closing of the books” method or another permissible method selected by the Managing Member. Solely for purposes of
making such allocations, each of such items for the calendar month in which an admission of any Additional Member occurs shall be allocated among all the Holders including such Additional Member, in accordance with the principles described in
Section 11.6.C hereof. All distributions of Available Cash with respect to which the Company Record Date is before the date of such admission shall be made solely to Members and Assignees other than the Additional Member, and all distributions
of Available Cash thereafter shall be made to all the Members and Assignees including such Additional Member. 
 Section 12.3
Amendment of Agreement and Certificate of Formation. For the admission to the Company of any Member, the Managing Member shall take all steps necessary and appropriate under the Act to amend the Register and the books and records of the
Company and, if necessary, to prepare as soon as practical an amendment of this Agreement and, if required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney granted pursuant to
Section 2.4 hereof. 
 Section 12.4 Limit on Number of Members. Unless otherwise permitted by the Managing Member, no
Person shall be admitted to the Company as an Additional Member if the effect of such admission would be to cause the Company to have a number of Members (including as Members for this purpose those Persons indirectly owning an interest in the
Company through another limited liability company, a partnership, a subchapter S corporation or a grantor trust) that would cause the Company to become a reporting company under the Exchange Act. 

Section 12.5 Admission. A Person shall be admitted to the Company as a member of the Company and/or a managing member of the
Company only upon strict compliance, and not upon substantial compliance, with the requirements set forth in this Agreement for admission to the Company as a Non-Managing Member or a Managing Member. 

ARTICLE 13 
 DISSOLUTION,
LIQUIDATION AND TERMINATION 
 Section 13.1 Dissolution. The Company shall not be dissolved by the admission of Substituted
Members or Additional Members, or by the admission of a successor managing member in accordance with the terms of this Agreement. Upon the withdrawal of the Managing Member, any successor managing member shall continue the business of the Company
without dissolution. However, the Company shall dissolve, and its affairs shall be wound up, upon the first to occur of any of the following (each a “Liquidating Event”): 

A. an event of withdrawal, as defined in the Act, with respect to a Managing Member, unless (i) at the time of the occurrence of such
event, there is at least one remaining managing member of the Company who is authorized to and shall carry on the business of the Company, or (ii) within ninety (90) days after the withdrawal, a Majority in Interest of the Members agree in
writing to continue the Company and to the appointment, effective as of the date of withdrawal, of a successor managing member; 

  
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 B. an election to dissolve the Company made by the Managing Member, with or without the Consent
of the other Members; or 
 C. entry of a decree of judicial dissolution of the Company pursuant to the provisions of the Act. 

Section 13.2 Winding Up. 

A. Upon the occurrence of a Liquidating Event, the Company shall continue solely for the purposes of winding up its affairs in an orderly
manner, liquidating its assets and satisfying the claims of its creditors and the Holders. After the occurrence of a Liquidating Event, no Holder shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up
of the Company’s business and affairs. The Managing Member (or, in the event that there is no remaining Managing Member or the Managing Member has dissolved, become bankrupt or ceased to operate, any Person elected by a Majority in Interest of
the Members (the Managing Member or such other Person being referred to herein as the “Liquidator”)) shall be responsible for overseeing the winding up and dissolution of the Company and shall take full account of the Company’s
liabilities and property, and the Company property shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to the extent determined by the Managing Member, include shares of
stock in CLNY) shall be applied and distributed in the following order: 
 (1) First, to the satisfaction of all of the
Company’s debts and liabilities to creditors other than the Holders (whether by payment or the making of reasonable provision for payment thereof); 

(2) Second, to the satisfaction of all of the Company’s debts and liabilities to CLNY (whether by payment or the making
of reasonable provision for payment thereof), including amounts due as reimbursements under Section 7.4 hereof; 
 (3)
Third, to the satisfaction of all of the Company’s debts and liabilities to the other Holders (whether by payment or the making of reasonable provision for payment thereof); and 

(4) Subject to the terms of any Membership Unit Designation, the balance, if any, to the Holders in accordance with and in
proportion to their positive Capital Account balances, after giving effect to all contributions, distributions and allocations for all periods. 
 the
Managing Member shall not receive any additional compensation for any services performed pursuant to this Article 13. 
 B.
Notwithstanding the provisions of Section 13.2.A hereof that require liquidation of the assets of the Company, but subject to the order of priorities set forth therein, if prior to or upon dissolution of the Company, the Liquidator determines
that an immediate sale of part or all of the Company’s assets would be impractical or would cause undue loss to the Holders, the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any assets
except those necessary to satisfy liabilities of the Company (including to those Holders as creditors) and/or distribute to the Holders, in lieu of cash, as tenants in common and in accordance with the provisions of Section 13.2.A hereof,
undivided interests in such Company assets as the Liquidator deems not suitable for liquidation. Any such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are in the best interest
of the Holders, and shall be subject to such 

  
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conditions relating to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such
time. The Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method of valuation as it may adopt. 

C. In the event that the Company is “liquidated,” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), distributions
shall be made pursuant to this Article 13 to the Holders that have positive Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2) to the extent of, and in proportion to, positive Capital Account balances. If any
Holder has a deficit balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which such liquidation occurs), such Holder shall have no obligation to
make any contribution to the capital of the Company with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or to any other Person for any purpose whatsoever. In the sole and absolute discretion of the
Managing Member or the Liquidator, a pro rata portion of the distributions that would otherwise be made to the Holders pursuant to this Article 13 may be: 

(1) distributed to a trust established for the benefit of the Managing Member and the Holders for the purpose of liquidating
Company assets, collecting amounts owed to the Company, and paying any contingent or unforeseen liabilities or obligations of the Company or of the Managing Member arising out of or in connection with the Company and/or Company activities. The
assets of any such trust shall be distributed to the Holders, from time to time, in the reasonable discretion of the Managing Member, in the same proportions and amounts as would otherwise have been distributed to the Holders pursuant to this
Agreement; or 
 (2) withheld or escrowed to provide a reasonable reserve for Company liabilities (contingent or otherwise)
and to reflect the unrealized portion of any installment obligations owed to the Company, provided that such withheld or escrowed amounts shall be distributed to the Holders in the manner and order of priority set forth in Section 13.2.A
hereof as soon as practicable. 
 Section 13.3 Deemed Contribution and Distribution. Notwithstanding any other provision of
this Article 13, in the event that the Company is liquidated within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), but no Liquidating Event has occurred, the Company’s Property shall not be liquidated, the Company’s
liabilities shall not be paid or discharged and the Company’s affairs shall not be wound up. Instead, for federal income tax purposes the Company shall be deemed to have contributed all of its assets and liabilities to a new partnership in
exchange for an interest in the new partnership; and immediately thereafter, distributed Membership Units to the Members in the new partnership in accordance with their respective Capital Accounts in liquidation of the Company, and the new
partnership is deemed to continue the business of the Company. Nothing in this Section 13.3 shall be deemed to have constituted any Assignee as a Substituted Member without compliance with the provisions of Section 11.4 hereof. 

Section 13.4 Rights of Holders. Except as otherwise provided in this Agreement and subject to the rights of any Holder of any
Membership Interest set forth in a Membership Unit Designation, (a) each Holder shall look solely to the assets of the Company for the return of its Capital Contribution, (b) no Holder shall have the right or power to demand or receive
property other than cash from the Company, and (c) no Holder shall have priority over any other Holder as to the return of its Capital Contributions, distributions or allocations. 

  
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 Section 13.5 Notice of Dissolution. In the event that a Liquidating Event occurs or
an event occurs that would, but for an election or objection by one or more Members pursuant to Section 13.1 hereof, result in a dissolution of the Company, CLNY or the Liquidator shall, within thirty (30) days thereafter, provide written
notice thereof to each of the Holders and, in the sole and absolute discretion of CLNY or the Liquidator, or as required by the Act, to all other parties with whom the Company regularly conducts business (as determined in the sole and absolute
discretion of the Managing Member or the Liquidator), and the Managing Member or the Liquidator may, or, if required by the Act, shall, publish notice thereof in a newspaper of general circulation in each place in which the Company regularly
conducts business (as determined in the sole and absolute discretion of the Managing Member or the Liquidator). 
 Section 13.6
Cancellation of Certificate of Formation. Upon the completion of the liquidation of the Company cash and property as provided in Section 13.2 hereof, the Company shall be terminated, a certificate of cancellation shall be filed with the
State of Delaware, all qualifications of the Company as a foreign limited liability company in jurisdictions other than the State of Delaware shall be cancelled, and such other actions as may be necessary to terminate the Company shall be taken.

 Section 13.7 Reasonable Time for Winding-Up. A reasonable time shall be allowed for the orderly winding-up of the business
and affairs of the Company and the liquidation of its assets pursuant to Section 13.2 hereof, in order to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement shall remain in effect between and
among the Members during the period of liquidation. 
 ARTICLE 14 

PROCEDURES FOR ACTIONS AND CONSENTS 

OF MEMBERS; AMENDMENTS; MEETINGS 

Section 14.1 Actions and Consents of Members. The actions requiring Consent of any Member pursuant to this Agreement, including
Section 7.3 hereof, or otherwise pursuant to applicable law, are subject to the procedures set forth in this Article 14. 

Section 14.2 Amendments. Except as otherwise required, permitted or prohibited by this Agreement (including Section 7.3 and
Section 4.4E), amendments to this Agreement must be approved by the Consent of the Managing Member and, if the amendment substantively and adversely affects the rights of the Non-Managing Members disproportionately as compared to the Managing
Member, the Consent of the Members, and may be proposed only by (a) the Managing Member, or (b) Non-Managing Members holding a majority of the Membership Common Units then held by Non-Managing Members (excluding CLNY and any Controlled
Entity of CLNY). Following such proposal, the Managing Member shall submit to the Members any proposed amendment that, pursuant to the terms of this Agreement, requires the Consent of the Members. The Managing Member shall seek the Consent of the
Members entitled to vote thereon on any such proposed amendment in accordance with Section 14.3 hereof. Upon obtaining any such Consent, or any other Consent required by this Agreement, and without further action or execution by any other
Person, including any Member, (i) any amendment to this Agreement may be implemented and reflected in a writing executed solely by the Managing Member, and (ii) the Non-Managing Members shall be deemed a party to and bound by such
amendment of this Agreement. Within thirty days after the effectiveness of any amendment to this Agreement that does not receive the Consent of all Members, the Managing Member shall deliver a copy of such amendment to all Members that did not
Consent to such amendment. For the avoidance of doubt, notwithstanding anything to the contrary in this Agreement, this Agreement may not be amended without the Consent of the Managing Member. 

  
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 Section 14.3 Procedures for Meetings and Actions of the Members. 

A. Meetings of the Members may be called only by the Managing Member. The call shall state the nature of the business to be transacted. Notice
of any such meeting shall be given to all Members entitled to act at the meeting not less than ten (10) days nor more than ninety (90) days prior to the date of such meeting. Members may vote in person or by proxy at such meeting. Unless
approval by a different number or proportion of the Members is required by this Agreement, or any Membership Unit Designation, the affirmative vote of a Majority in Interest of the Members shall be sufficient to approve such proposal at a meeting of
the Members. Whenever the Consent of any Members is permitted or required under this Agreement, such Consent may be given at a meeting of Members or in accordance with the procedure prescribed in Section 14.3.B hereof. 

B. Any action requiring the Consent of any Member or a group of Members pursuant to this Agreement, or that is required or permitted to be
taken at a meeting of the Members may be taken without a meeting if a Consent in writing or by electronic transmission setting forth the action so taken or consented to is given by Members whose affirmative vote would be sufficient to approve such
action or provide such Consent at a meeting of the Members. Such Consent may be in one instrument or in several instruments, and shall have the same force and effect as the affirmative vote of such Members at a meeting of the Members. Such Consent
shall be filed with the Managing Member. An action so taken shall be deemed to have been taken at a meeting held on the effective date so certified. For purposes of obtaining a Consent in writing or by electronic transmission, the Managing Member
may require a response within a reasonable specified time, but not less than fifteen (15) days, and failure to respond in such time period shall constitute a Consent that is consistent with the Managing Member’s recommendation with respect
to the proposal; provided, however, that an action shall become effective at such time as requisite Consents are received even if prior to such specified time. 

C. Each Member entitled to act at a meeting of Members may authorize any Person or Persons to act for it by proxy on all matters in which a
Member is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Each proxy must be signed by the Member or its attorney-in-fact. No proxy shall be valid after the expiration of eleven
(11) months from the date thereof unless otherwise provided in the proxy (or there is receipt of a proxy authorizing a later date). Every proxy shall be revocable at the pleasure of the Member executing it, such revocation to be effective upon
the Company’s receipt of written notice of such revocation from the Member executing such proxy, unless such proxy states that it is irrevocable and is coupled with an interest. 

D. The Managing Member may set, in advance, a record date for the purpose of determining the Members (i) entitled to Consent to any
action, (ii) entitled to receive notice of or vote at any meeting of the Members or (iii) in order to make a determination of Members for any other proper purpose. Such date, in any case, shall not be prior to the close of business on the
day the record date is fixed and shall be not more than ninety (90) days and, in the case of a meeting of the Members, not less than ten (10) days, before the date on which the meeting is to be held. If no record date is fixed, the record
date for the determination of Members entitled to notice of or to vote at a meeting of the Members shall be at the close of business on the day on which the notice of the meeting is sent, and the record date for any other determination of Members
shall be the effective date of such Member action, distribution or other event. When a determination of the Members entitled to vote at any meeting of the Members has been made as provided in this section, such determination shall apply to any
adjournment thereof. 
 E. Each meeting of Members shall be conducted by the Managing Member or such other Person as the Managing Member may
appoint pursuant to such rules for the conduct of the meeting as the Managing Member or such other Person deems appropriate in its sole and absolute discretion. Without limitation, meetings of Members may be conducted in the same manner as meetings
of CLNY’s stockholders and may be held at the same time as, and as part of, the meetings of CLNY’s stockholders. 

  
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 ARTICLE 15 

GENERAL PROVISIONS 

Section 15.1 Redemption Rights of Qualifying Parties. 

A. Subject to any Non-Managing Member Ancillary Agreement, a Qualifying Party shall have the right (subject to the terms and conditions set
forth herein) to require the Company to redeem all or a portion of the Membership Common Units held by such Qualifying Party (Membership Common Units that have in fact been tendered for redemption being hereafter referred to as “Tendered
Units”) in exchange (a “Redemption”) for the Cash Amount payable on the Specified Redemption Date. Any Redemption shall be exercised pursuant to a Notice of Redemption delivered to the Managing Member by the Qualifying
Party when exercising the Redemption right (the “Tendering Party”). The Company’s obligation to effect a Redemption, however, shall not arise or be binding against the Company (i) until and unless CLNY declines or fails to
exercise its purchase rights pursuant to Section 15.1.B hereof following receipt of a Notice of Redemption (a “Declination”) and (ii) unless CLNY agrees otherwise, until the Business Day following the Cut-Off Date. In the
event of a Redemption, the Cash Amount shall be delivered as a certified or bank check payable to the Tendering Party or, in the Managing Member’s sole and absolute discretion, in immediately available funds on or before the Specified
Redemption Date. 
 B. Notwithstanding the provisions of Section 15.1.A hereof, on or before the close of business on the Cut-Off Date,
CLNY may, in its sole and absolute discretion, elect to acquire some or all of the Tendered Units (the percentage of the Tendered Units so elected to be acquired, the “Applicable Percentage”) from the Tendering Party in exchange for
the product of the REIT Shares Amount and the Applicable Percentage. If CLNY so elects, on the Specified Redemption Date the Tendering Party shall sell such number of the Tendered Units to CLNY in exchange for a number of Class A REIT Shares
equal to the product of the REIT Shares Amount and the Applicable Percentage. The Tendering Party shall submit (i) such information, certification or affidavit as the CLNY may reasonably require in connection with the application of the
Ownership Limit to any such acquisition and (ii) such written representations, investment letters, legal opinions or other instruments necessary, in the CLNY’s view, to effect compliance with the Securities Act. In the event of a purchase
of the Tendered Units by CLNY pursuant to this Section 15.1.B, the Tendering Party shall no longer have the right to cause the Company to effect a Redemption of such Tendered Units, and, upon notice to the Tendering Party by CLNY, given on or
before the close of business on the Cut-Off Date, that CLNY has elected to acquire some or all of the Tendered Units pursuant to this Section 15.1.B, the obligation of the Company to effect a Redemption of the Tendered Units as to which
CLNY’s notice relates shall not accrue or arise. A number of Class A REIT Shares equal to the product of the Applicable Percentage and the REIT Shares Amount, if applicable, shall be delivered by CLNY as duly authorized, validly issued,
fully paid and non-assessable Class A REIT Shares and, if applicable, Rights, free of any pledge, lien, encumbrance or restriction, other than the Ownership Limit and other restrictions provided in the Charter, the Securities Act and relevant
state securities or “blue sky” laws. If the amount of Class A REIT Shares to be issued in exchange for the Tendered Units is not a whole number of Class A REIT Shares, the Tendering Party shall be paid (i) that number of
Class A REIT Shares that equals the nearest whole number less than such amount plus (ii) an amount of cash that CLNY determines, in its reasonable discretion, to represent the fair value of the remaining fractional Class A REIT Share
that would otherwise be payable to the Tendering Party. Neither any Tendering Party whose Tendered Units are acquired by CLNY pursuant to this Section 15.1.B, any Member, any Assignee nor any other interested Person shall have any right to
require 

  
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or cause CLNY to register, qualify or list any Class A REIT Shares owned or held by such Person, whether or not such Class A REIT Shares are issued pursuant to this Section 15.1.B,
with the SEC, with any state securities commissioner, department or agency, under the Securities Act or the Exchange Act or with any stock exchange; provided, however, that this limitation shall not be in derogation of any registration
or similar rights granted pursuant to any other written agreement (including any Non-Managing Member Ancillary Agreement) between CLNY and any such Person. Notwithstanding any delay in such delivery, the Tendering Party shall be deemed the owner of
such Class A REIT Shares and Rights for all purposes, including rights to vote or consent, receive dividends, and exercise rights, as of the Specified Redemption Date. Class A REIT Shares issued upon an acquisition of the Tendered Units by
CLNY pursuant to this Section 15.1.B may contain such legends regarding restrictions under the Securities Act and applicable state securities laws as CLNY in good faith determines to be necessary or advisable in order to ensure compliance with
such laws and CLNY’s charter. 
 C. Notwithstanding the provisions of Sections 15.1.A, 15.1.B and 15.1.I hereof, (i) no
Person shall be entitled to effect a Redemption for cash or an exchange for Class A REIT Shares to the extent the ownership or right to acquire Class A REIT Shares pursuant to such exchange on the Specified Redemption Date could cause such
Person (or any other Person) to violate the restrictions on ownership and transfer of Class A REIT Shares set forth in the Charter, after giving effect to any waivers or modifications of such restrictions by the Board of Directors, and
(ii) no Person shall have any rights under this Agreement to acquire Class A REIT Shares which would otherwise be prohibited under the Charter, after giving effect to any waivers or modifications of such restrictions by the Board of
Directors. 
 D. In the event of a Declination: 

(1) CLNY shall give notice of such Declination to the Tendering Party on or before the close of business on the Cut-Off Date.
The failure of CLNY to give notice of such Declination by the close of business on the Cut-Off Date shall be deemed to be an election by CLNY to acquire the Tendered Units in exchange for REIT Shares. 

(2) The Company may elect to raise funds for the payment of the Cash Amount either (a) by requiring that CLNY contribute
to the Company funds from the proceeds of a registered public offering by CLNY of Class A REIT Shares sufficient to purchase the Tendered Units or (b) from any other sources (including the sale of any Property and the incurrence of
additional Debt) available to the Company. 
 (3) If the Cash Amount is not paid on or before the Specified Redemption Date,
interest shall accrue with respect to the Cash Amount from the day after the Specified Redemption Date to and including the date on which the Cash Amount is paid at a rate equal to the Applicable Federal Short-Term Rate as published monthly by the
IRS. 
 E. Notwithstanding the provisions of Section 15.1B hereof or Section 15.1I hereof, if CLNY’s acquisition of Tendered
Units in exchange for the REIT Shares Amount would be prohibited under the Charter, then (i) CLNY shall not elect to acquire such Tendered Units, and (ii) the Company shall not be obligated to effect a Redemption of such Tendered Units.
For the avoidance of doubt, unless CLNY’s acquisition of Tendered Units in exchange for the REIT Shares Amount would be prohibited under the Charter, if Tendered Units are not exchanged for Class A REIT Shares, then the Cash Amount will be
paid to the Tendering Party in accordance with the terms of Section 15.1.A hereof. 

  
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 F. Each Non-Managing Member covenants and agrees that all Membership Common Units delivered for
redemption shall be delivered to the Company or CLNY, as the case may be, free and clear of all liens; and, notwithstanding anything contained herein to the contrary, neither CLNY nor the Company shall be under any obligation to acquire Membership
Common Units which are or may be subject to any liens. Each Non-Managing Member further agrees that, if any stamp, recording, documentary or similar tax is payable with respect to the Membership Common Units as a result of the transfer thereof to
the Company or the CLNY, such Tendering Party shall assume and pay such tax. 
 G. Notwithstanding anything herein to the contrary (but
subject to Section 15.1.C hereof), with respect to any Redemption (or any tender of Membership Common Units for Redemption if the Tendered Units are acquired by CLNY pursuant to Section 15.1.B hereof) pursuant to this Section 15.1:

 (1) Without the consent of the Managing Member, no Tendering Party may effect a Redemption for less than one thousand
sixty-five (1,065) Membership Common Units or for any number of Membership Common Units that is not a multiple of seventy-one (71) or, if such Tendering Party holds less than one thousand sixty-five (1,065) Membership Common Units,
all of the Membership Common Units held by such Tendering Party. 
 (2) If (i) a Tendering Party surrenders Tendered
Units during the period after the Company Record Date with respect to a distribution payable to Holders of Membership Common Units, and before the record date established by CLNY for a dividend to its stockholders of some or all of its portion of
such Company distribution, and (ii) CLNY elects to acquire any of such Tendered Units in exchange for Class A REIT Shares pursuant to Section 15.1.B, then such Tendering Party shall pay to CLNY on the Specified Redemption Date an
amount in cash equal to the Company distribution paid or payable in respect of such Tendered Units. 
 (3) The consummation
of such Redemption (or an acquisition of Tendered Units by CLNY pursuant to Section 15.1.B hereof, as the case may be) shall be subject to the expiration or termination of the applicable waiting period, if any, under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended. 
 (4) The Tendering Party shall continue to own (subject, in the case of an
Assignee, to the provisions of Section 11.5 hereof) all Membership Common Units subject to any Redemption, and be treated as a Member or an Assignee, as applicable, with respect to such Membership Common Units for all purposes of this
Agreement, until the Specified Redemption Date and until such Tendered Units are either paid for by the Company pursuant to Section 15.1.A hereof or transferred to CLNY and paid for, by the issuance of Class A REIT Shares, pursuant to
Section 15.1.B. Until a Specified Redemption Date and an acquisition of the Tendered Units by CLNY pursuant to Section 15.1.B hereof, the Tendering Party shall have no rights as a stockholder of CLNY with respect to the REIT Shares
issuable in connection with such acquisition. 
 H. In connection with the exercise of Redemption rights pursuant to this Section 15.1,
unless waived by CLNY, the Tendering Party shall submit the following to CLNY, in addition to the Notice of Redemption: 

(1) A written affidavit, dated the same date as the Notice of Redemption, (a) disclosing the Beneficial and Constructive
ownership (as defined in 

  
 73 

 
CLNY’s charter), as determined for purposes of Code Sections 856(a)(6) and 856(h), of REIT Shares by (i) such Tendering Party and (ii) to the best of such Tendering Party’s
knowledge, any Related Party, and (b) representing that, after giving effect to an acquisition of the Tendered Units by CLNY pursuant to Section 15.1B hereof, neither the Tendering Party nor, to the best of such Tendering Party’s
knowledge, any Related Party, will Beneficially or Constructively own (as defined in CLNY’s charter) REIT Shares in excess of the Ownership Limit; 

(2) A written representation that neither the Tendering Party nor, to the best of such Tendering Party’s knowledge, any
Related Party, has any intention to acquire Beneficial or Constructive ownership (as defined in CLNY’s charter) of any additional REIT Shares prior to the Specified Redemption Date; and 

(3) An undertaking to certify, at and as a condition to the closing of (i) the Redemption or (ii) the acquisition of
the Tendered Units by CLNY pursuant to Section 15.1B hereof on the Specified Redemption Date, that either (a) the Beneficial and Constructive ownership (as defined in CLNY’s charter) of REIT Shares by the Tendering Party and, to the
best of such Tendering Party’s knowledge, any Related Party, remain unchanged from that disclosed in the affidavit required by Section 15.1H(1), or (b) after giving effect to the Redemption or an acquisition of the Tendered Units by
CLNY pursuant to Section 15.1B hereof, neither the Tendering Party nor, to the best of such Tendering Party’s knowledge, any Related Party, shall Beneficially or Constructively own (as defined in CLNY’s charter) REIT Shares in
violation of the Ownership Limit. 
 (4) In connection with any Special Redemption, CLNY shall have the right to receive an
opinion of counsel reasonably satisfactory to it to the effect that the proposed Special Redemption will not cause the Company, the Managing Member or CLNY to violate any Federal or state securities laws or regulations applicable to the Special
Redemption or the issuance and sale of REIT Shares to the Tendering Party pursuant to Section 15.1B of this Agreement. 
 I. Stock
Offering Funding Option. 
 (1) (a) Notwithstanding Sections 15.1.A or 15.1.B hereof (but subject to
Sections 15.1.C and 15.1.F hereof), if (i) a Non-Managing Member has delivered to the Managing Member a Notice of Redemption that would result in Excess Units (together with any other Tendered Units that such Non-Managing Member agrees to
treat as Excess Units, the “Offering Units”), and (ii) CLNY is eligible to file a registration statement under Form S-3 (or any successor form similar thereto), then CLNY may elect, in its sole and absolute discretion, to cause
the Company to redeem the Offering Units with the net proceeds of an offering, whether registered under the Securities Act or exempt from such registration, underwritten, offered and sold directly to investors or through agents or other
intermediaries, or otherwise distributed (a “Stock Offering Funding”) of a number of Class A REIT Shares (“Offered Shares”) equal to or greater than the REIT Shares Amount with respect to the Offering Units
pursuant to the terms of this Section 15.1.I. CLNY must provide notice of their exercise of the election described in clause (x) above to purchase the Tendered Units through a Stock Offering Funding on or before the Cut-Off Date. 

  
 74 

 (b) If CLNY elects a Stock Offering Funding with respect to a Notice of
Redemption, the Managing Member may give notice (a “Single Funding Notice”) of such election to all Non-Managing Members and require that all Members elect whether or not to effect a Redemption to be funded through such Stock
Offering Funding. If a Non-Managing Member elects to effect such a Redemption, it shall give notice thereof and of the number of Common Units to be made subject thereto in writing to the Managing Member within 10 Business Days after receipt of the
Single Funding Notice, and such Non-Managing Member shall be treated as a Tendering Party for all purposes of this Section 15.1.I. 

(2) If CLNY elects a Stock Offering Funding, on the Specified Redemption Date, the Company shall redeem each Offering Unit
that is still a Tendered Unit on such date for cash in immediately available funds in an amount (the “Stock Offering Funding Amount”) equal to the net proceeds per Offered Share received by CLNY from the Stock Offering Funding,
determined after deduction of underwriting discounts and commissions but no other expenses of CLNY or any other Non-Managing Member related thereto, including legal and accounting fees and expenses, SEC registration fees, state blue sky and
securities laws fees and expenses, printing expenses, FINRA filing fees, exchange listing fees and other out of pocket expenses (the “Net Proceeds”). 

(3) If CLNY elects a Stock Offering Funding, the following additional terms and conditions shall apply: 

(a) As soon as practicable after CLNY elects to effect a Stock Offering Funding, CLNY shall use its reasonable efforts to
effect as promptly as possible a registration, qualification or compliance (including the execution of an undertaking to file post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws and
appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as would permit or facilitate the sale and distribution of the Offered Shares; provided, that, if CLNY
shall deliver a certificate to the Tendering Party stating that CLNY has determined in the good faith judgment of the Board of Directors that such filing, registration or qualification would require disclosure of material non-public information, the
disclosure of which would have a material adverse effect on CLNY, then CLNY may delay making any filing or delay the effectiveness of any registration or qualification for the shorter of (a) the period ending on the date upon which such
information is disclosed to the public or ceases to be material or (b) an aggregate period of ninety (90) days in connection with any Stock Offering Funding. 

(b) CLNY shall advise each Tendering Party, regularly and promptly upon any request, of the status of the Stock Offering
Funding process, including the timing of all filings, the selection of and understandings with underwriters, agents, dealers and brokers, the nature and contents of all communications with the SEC and other governmental bodies, the expenses related
to the Stock Offering Funding as they are being incurred, the nature of marketing activities, and any other matters reasonably related to the timing, price and expenses relating to the Stock Offering Funding and the compliance by CLNY with its
obligations with respect thereto. CLNY will have reasonable procedures whereby the Tendering Party with the largest number of Offered Units (the “Lead Tendering Party”) may represent all the Tendering Parties in connection with the
Stock Offering Funding by allowing it to participate in meetings with the 

  
 75 

 
underwriters of the Stock Offering Funding. In addition, CLNY and each Tendering Party may, but shall be under no obligation to, enter into understandings in writing (“Pricing
Agreements”) whereby the Tendering Party will agree in advance as to the acceptability of a Net Proceeds amount at or below a specified amount. Furthermore, CLNY shall establish pricing notification procedures with each such Tendering
Party, such that the Tendering Member will have the maximum opportunity practicable to determine whether to become a Withdrawing Member pursuant to Section 15.1.I(3)(c) below. 

(c) CLNY, upon notification of the price per Class A REIT Share in the Stock Offering Funding from the managing
underwriter(s), in the case of a registered public offering, or lead placement agent(s), in the event of an unregistered offering, engaged by CLNY in order to sell the Offered Shares, shall immediately use its reasonable efforts to notify each
Tendering Party of the price per REIT Share in the Stock Offering Funding and resulting Net Proceeds. Each Tendering Party shall have one hour from the receipt of such written notice (as such time may be extended by CLNY) to elect to withdraw its
Redemption (a Tendering Party making such an election being a “Withdrawing Member”), and Membership Common Units with a REIT Shares Amount equal to such excluded Offered Shares shall be considered to be withdrawn from the related
Redemption; provided, however, that CLNY shall keep each of the Tendering Parties reasonably informed as to the likely timing of delivery of its notice. If a Tendering Party, within such time period, does not notify CLNY of such
Tendering Party’s election not to become a Withdrawing Member, then such Tendering Party shall, except as otherwise provided in a Pricing Agreement, be deemed not to have withdrawn from the Redemption, without liability to CLNY. To the extent
that CLNY is unable to notify any Tendering Party, such unnotified Tendering Party shall, except as otherwise provided in any Pricing Agreement, be deemed not to have elected to become a Withdrawing Member. Each Tendering Party whose Redemption is
being funded through the Stock Offering Funding who does not become a Withdrawing Member shall have the right, subject to the approval of the managing underwriter(s) or placement agent(s) and restrictions of any applicable securities laws, to submit
for Redemption additional Membership Common Units in a number no greater than the number of Membership Common Units withdrawn. If more than one Tendering Party so elects to redeem additional Membership Common Units, then such Membership Common Units
shall be redeemed on a pro rata basis, based on the number of additional Membership Common Units sought to be so redeemed. 

(d) CLNY shall take all reasonable action in order to effectuate the sale of the Offered Shares including the entering into of
an underwriting or placement agreement in customary form with the managing underwriter(s) or placement agent(s) selected for such underwriting. Notwithstanding any other provision of this Agreement, if the managing underwriter(s) or placement
agent(s) advises CLNY in writing that marketing factors require a limitation of the number of shares to be offered, then CLNY shall so advise all Tendering Parties and the number of Membership Common Units to be sold to CLNY pursuant to the
Redemption shall be allocated among all Tendering Parties in proportion, as nearly as practicable, to the respective number of Membership Common Units as to which each Tendering Party elected to effect a Redemption. Notwithstanding anything to the
contrary in this Agreement, if CLNY is also offering to sell shares for purposes other than to fund the redemption of Offering Units and to pay related expenses, then those other shares may in CLNY’s sole and absolute discretion be given
priority over any shares to be sold in the Stock Offering Funding, and any shares to be sold in the 

  
 76 

 
Stock Offering Funding shall be removed from the offering prior to removing shares the proceeds of which would be used for other purposes of CLNY. No Offered Shares excluded from the underwriting
by reason of the managing underwriter’s or placement agent’s marketing limitation shall be included in such offering. 

Section 15.2 Addresses and Notice. Any notice, demand, request or report required or permitted to be given or made to a Member or
Assignee under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written or electronic communication (including by telecopy, facsimile,
electronic mail or commercial courier service) to the Member, or Assignee at the address for such Member set forth in the Register, or such other address of which the Member shall notify the Managing Member in accordance with this Section 15.2.

 Section 15.3 Titles and Captions. All article or Section titles or captions in this Agreement are for convenience only. They
shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. 

Section 15.4 Further Action. The parties shall execute and deliver all documents, provide all information and take or refrain
from taking action as may be necessary or appropriate to achieve the purposes of this Agreement. 
 Section 15.5 Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 

Section 15.6 Waiver. 

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

B. The restrictions, conditions and other limitations on the rights and benefits of the Members contained in this Agreement, and the duties,
covenants and other requirements of performance or notice by the Members, are for the benefit of the Company and may be waived or relinquished by the Managing Member, in its sole and absolute discretion, on behalf of the Company in one or more
instances from time to time and at any time; provided, however, that any such waiver or relinquishment may not be made if it would have the effect of (i) creating liability for any other Member, (ii) causing the Company to
cease to qualify as a limited liability company, (iii) reducing the amount of cash otherwise distributable to the Members (other than any such reduction that affects all of the Members holding the same class or series of Membership Units on a
uniform or pro rata basis, if approved by a Majority in Interest of the Non-Managing Members holding such class or series of Membership Units), (iv) resulting in the classification of the Company as an association or publicly traded partnership
taxable as a corporation or (v) violating the Securities Act, the Exchange Act or any state “blue sky” or other securities laws; provided, further, that any waiver relating to compliance with the Ownership Limit or other
restrictions in the Charter shall be made and shall be effective only as provided in the Charter. 
 Section 15.7 Counterparts.
This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party
shall become bound by this Agreement immediately upon affixing its signature hereto. 

  
 77 

 Section 15.8 Applicable Law; Consent to Jurisdiction; Jury Trial. 

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

B. Each Member hereby (i) submits to the non-exclusive jurisdiction of the Delaware Court of Chancery or, if such court does not have
subject matter jurisdiction, any federal court sitting in the State of Delaware (collectively, the “Delaware Courts”), with respect to any dispute arising out of this Agreement or any transaction contemplated hereby to the extent
such courts would have subject matter jurisdiction with respect to such dispute, (ii) irrevocably waives, and agrees not to assert by way of motion, defense, or otherwise, in any such action, any claim that it is not subject personally to the
jurisdiction of any of the Delaware Courts, that its property is exempt or immune from attachment or execution, that the action is brought in an inconvenient forum, or that the venue of the action is improper, (iii) agrees that notice or the
service of process in any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall be properly served or delivered if delivered to such Member at such Member’s last known address as
set forth in the Company’s books and records, and (iv) IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 15.9 Entire Agreement. This Agreement contains all of the understandings and agreements between and among the Members
with respect to the subject matter of this Agreement and the rights, interests and obligations of the Members with respect to the Company. Notwithstanding any provision in this Agreement or any Membership Unit Designation to the contrary, including
any provisions relating to amending this Agreement, the Members hereby acknowledge and agree that the Managing Member, without the approval of any other Member, may enter into side letters or similar written agreements with Members that are not
Affiliates of the Managing Member or CLNY, executed contemporaneously with the admission of such Member to the Company, which may have the effect of establishing rights under, or altering or supplementing the terms of, this Agreement or any
Membership Unit Designation, as negotiated with such Member and which the Managing Member in its sole and absolute discretion deems necessary, desirable or appropriate. The parties hereto agree that any terms, conditions or provisions contained in
such side letters or similar written agreements with a Member shall govern with respect to such Member notwithstanding the provisions of this Agreement. 

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

  
 78 

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

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

(ii) an amount equal to the excess, if any, of (a) twenty-four percent (24%) of the REIT Member’s total gross
income (but excluding the amount of any REIT Payments) for the Fiscal Year that is described in subsections (A) through (I) of Code Section 856(c)(3) over (b) the amount of gross income (within the meaning of Code
Section 856(c)(3)) derived by the REIT Member from sources other than those described in subsections (A) through (I) of Code Section 856(c)(3) (but not including the amount of any REIT Payments); 

provided, however, that REIT Payments in excess of the amounts set forth in clauses (i) and (ii) above may be made if the Managing
Member, as a condition precedent, obtains an opinion of tax counsel that the receipt of such excess amounts should not adversely affect the REIT Member’s ability to qualify as a REIT. To the extent that REIT Payments may not be made in a Fiscal
Year as a consequence of the limitations set forth in this Section 15.11, such REIT Payments shall carry over and shall be treated as arising in the following Fiscal Year if such carry over does not adversely affect the REIT Member’s
ability to qualify as a REIT provided, however, that such amounts shall not carry over for more than five Fiscal Years, and if not paid within such five Fiscal Year period, shall expire; and provided further that (i) as REIT Payments are made,
such payments shall be applied first to carry over amounts outstanding, if any, and (ii) with respect to carry over amounts for more than one Fiscal Year, such payments shall be applied to the earliest Fiscal Year first. The purpose of the
limitations contained in this Section 15.11 is to prevent any REIT Member from failing to qualify as a REIT under the Code by reason of such REIT Member’s share of items, including distributions, reimbursements, fees, expenses or
indemnities, receivable directly or indirectly from the Company, and this Section 15.11 shall be interpreted and applied to effectuate such purpose. 

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

Section 15.13 No Third-Party Rights Created Hereby. The provisions of this Agreement are solely for the purpose of defining the
interests of the Holders, inter se; and no other person, firm or entity (i.e., a party who is not a signatory hereto or a permitted successor to such signatory hereto) shall have any right, power, title or interest by way of
subrogation or otherwise, in and to the rights, powers, title and provisions of this Agreement. No creditor or other third party having dealings with the Company (other than as expressly set forth herein with respect to Indemnitees) shall have the
right to enforce the right or obligation of any Member to make Capital Contributions or loans to the Company or to pursue any other right or remedy hereunder or at law or in equity. None of the rights or obligations of the Members herein set forth
to make Capital Contributions or loans to the Company shall be deemed an asset of the Company for any purpose by any creditor or other third party, nor may any such rights or obligations be sold, Transferred or assigned by the Company or pledged or
encumbered by the Company to secure any debt or other obligation of the Company or any of the Members. 

  
 79 

 Section 15.14 No Rights as Stockholders. Nothing contained in this Agreement shall
be construed as conferring upon the Holders of Membership Units any rights whatsoever as stockholders of CLNY, including any right to receive dividends or other distributions made to stockholders of CLNY or to vote or to consent or receive notice as
stockholders in respect of any meeting of stockholders for the election of directors of CLNY or any other matter. 

  
 80 

 IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above. 

 

			
	MEMBERS:
	
	COLONY CAPITAL, INC.
		
	By:		 /s/ Darren J. Tangen

			Name: Darren J. Tangen
			Title: Chief Financial Officer, Chief Operating Officer and Treasurer
	
	COLONY CAPITAL, LLC
		
	By:		 /s/ Mark M. Hedstrom

	Name:		Mark M. Hedstrom
	Title:		Vice President
	
	CCH MANAGEMENT PARTNERS I, LLC
		
	By:		 /s/ Mark M. Hedstrom

	Name:		Mark M. Hedstrom
	Title:		Vice President
	
	FHB HOLDING LLC
		
	By:		 /s/ Henry G. Brauer

	Name:		Henry G. Brauer
	Title:		Manager
	
	RICHARD B. SALTZMAN
	
	 /s/ Richard B. Saltzman

	Name:		Richard B. Saltzman

 EXHIBIT A: EXAMPLES REGARDING ADJUSTMENT FACTOR 

For purposes of the following examples, it is assumed that (a) the Adjustment Factor in effect on December 31, 2015 is 1.0 and (b) on
January 1, 2016 (the “Company Record Date” for purposes of these examples), prior to the events described in the examples, there are 100 REIT Shares issued and outstanding. 

Example 1 
 On the Company Record Date, CLNY declares a
dividend on its outstanding REIT Shares in REIT Shares. The amount of the dividend is one REIT Share paid in respect of each REIT Share owned. Pursuant to Paragraph (i) of the definition of “Adjustment Factor,” the Adjustment Factor
shall be adjusted on the Company Record Date, effective immediately after the stock dividend is declared, as follows: 
 1.0 * 200/100 =
2.0 
 Accordingly, the Adjustment Factor after the stock dividend is declared is 2.0. 

Example 2 
 On the Company Record Date, CLNY distributes
options to purchase REIT Shares to all holders of its REIT Shares. The amount of the distribution is one option to acquire one REIT Share in respect of each REIT Share owned. The strike price is $4.00 a share. The Value of a REIT Share on the
Company Record Date is $5.00 per share. Pursuant to Paragraph (ii) of the definition of “Adjustment Factor,” the Adjustment Factor shall be adjusted on the Company Record Date, effective immediately after the options are distributed,
as follows: 
 1.0 * (100 + 100)/(100 + [100 * $4.00/$5.00]) = 1.1111 

Accordingly, the Adjustment Factor after the options are distributed is 1.1111. If the options expire or become no longer exercisable, then the retroactive
adjustment specified in Paragraph (ii) of the definition of “Adjustment Factor” shall apply. 
 Example 3 

On the Company Record Date, CLNY distributes assets to all holders of its REIT Shares. The amount of the distribution is one asset with a fair market value (as
determined by the Managing Member) of $1.00 in respect of each REIT Share owned. It is also assumed that the assets do not relate to assets received by the Managing Member pursuant to a pro rata distribution by the Company. The Value of a REIT Share
on the Company Record Date is $5.00 a share. Pursuant to Paragraph (iii) of the definition of “Adjustment Factor,” the Adjustment Factor shall be adjusted on the Company Record Date, effective immediately after the assets are
distributed, as follows: 
 1.0 * $5.00/($5.00 - $1.00) = 1.25 

Accordingly, the Adjustment Factor after the assets are distributed is 1.25. 

  
 A-1 

 EXHIBIT B: NOTICE OF REDEMPTION 

Colony Financial, Inc. 
 2450 Broadway, Sixth Floor 

Santa Monica, CA 90404 
 The undersigned Member
or Assignee hereby irrevocably tenders for Redemption Membership Common Units in Colony Capital Operating Company, LLC in accordance with the terms of the Second Amended and Restated Limited Liability Agreement of Colony Capital Operating Company,
LLC, dated as of April 2, 2015, as amended (the “Agreement”), and the Redemption rights referred to therein. All capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the
Agreement. The undersigned Member or Assignee: 
 (a) undertakes (i) to surrender such Membership Common Units at the closing of
the Redemption and (ii) to furnish to CLNY, prior to the Specified Redemption Date, the documentation, instruments and information required under Section 15.1.H of the Agreement; 

(b) directs that the certified check representing the Cash Amount, or the REIT Shares Amount, as applicable, deliverable upon the closing
of such Redemption be delivered to the address specified below; 
 (c) represents, warrants, certifies and agrees that: (i) the
undersigned Member or Assignee is a Qualifying Party; (ii) the undersigned Member or Assignee has, and at the closing of the Redemption will have, good, marketable and unencumbered title to such Membership Common Units, free and clear of the
rights or interests of any other person or entity; (iii) the undersigned Member or Assignee has, and at the closing of the Redemption will have, the full right, power and authority to tender and surrender such Common Units as provided herein;
(iv) the undersigned Member or Assignee, and the tender and surrender of such Common Units for Redemption as provided herein complies with all conditions and requirements for redemption of Membership Common Units set forth in the Agreement; and
(v) the undersigned Member or Assignee has obtained the consent or approval of all persons and entities, if any, having the right to consent to or approve such tender and surrender; and 

(d) acknowledges that the undersigned will continue to own such Membership Common Units unless and until either (1) such Membership
Common Units are acquired by CLNY pursuant to Section 15.1.B of the Agreement or (2) such redemption transaction closes. 
  

			
	Dated:		  

  

	
	  

	Name of Member or Assignee:
	
	  

	Signature of Member or Assignee
	
	  

	Street Address
	
	  

	City, State and Zip Code
	
	  

	Social security or identifying number

  
 B-1 

 
	
	Signature Medallion Guaranteed by:
	
	  

	
	Issue Check Payable to (or shares in the name of):
	
	  

  
 B-2 

 EXHIBIT C: MEMBER NOTICE OF LTIP CONVERSION ELECTION 

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

					
	Name of Holder:		  
		
			(Please Print: Exact Name as Registered with Company)		

					
			
	Number of LTIP Units to be Converted:		  
		

					
			
	Date of this Notice:		  
		

			
		
	  
		
	(Signature of Holder: Sign Exact Name as Registered with Company)		
		
	  
		
	(Street Address)		

			
		
	  
		
	(City) (State) (Zip Code)		

  
 C-1 

 EXHIBIT D: COMPANY NOTICE OF LTIP CONVERSION ELECTION 

Colony Capital Operating Company, LLC (the “Company”) hereby irrevocably elects to cause the number of LTIP Units held by the
holder of LTIP Units set forth below to be converted into Membership Common Units in accordance with the terms of the Second Amended and Restated Limited Liability Agreement of the Company, as amended. 

 

					
	Name of Holder:		  
		
			(Please Print: Exact Name as Registered with Company)		

					
			
	Number of LTIP Units to be Converted:		  
		

					
			
	Date of this Notice:		  
		

  
 D-1 

 EXHIBIT E: SERIES A COMPANY PREFERRED UNIT DESIGNATION 

A. Designation and Number. A series of Company Preferred Units, designated as Series A Company Preferred Units, is hereby established.
The number of Series A Company Preferred Units shall be 10,400,000. 
 B. Rank. The Series A Company Preferred Units will, with
respect to rights to receive distributions and to participate in distributions or payments upon liquidation, dissolution or winding up of the Company, rank (a) senior to the Membership Common Units and any other class of Membership Units of the
Company, now or hereafter issued and outstanding, the terms of which provide that such Membership Units rank, as to distributions and upon liquidation, dissolution or winding up of the Company, junior to such Series A Company Preferred Units
(“Junior Units”), (b) on a parity with the Series B Company Preferred Units (as defined in the Limited Liability Company Agreement of the Company) and any Membership Units the Company may authorize or issue in the future
that, pursuant to the terms thereof, rank on parity with the Series A Company Preferred Units with respect to distributions or payments in the event of the liquidation, dissolution or winding up of the Company (“Parity
Units”); and (c) junior to all Membership Units of the Company the terms of which specifically provide that such Membership Units rank senior to the Series A Company Preferred Units with respect to distributions or payments in the
event of the liquidation, dissolution or winding up of the Company (“Senior Units”). Any authorization or issuance of Senior Units would require the affirmative vote of the holders of at least two-thirds of the outstanding
Series A Company Preferred Units voting together as a single class with all other classes or series of Parity Units upon which like voting rights have been conferred and are exercisable. Any convertible or exchangeable debt securities that the
Company may issue are not considered to be equity securities for these purposes. 
 C. Distributions. 

(i) CLNY, in its capacity as the holder of the then outstanding Series A Company Preferred Units, shall be entitled to receive, when, as and
if authorized by the Company, out of funds legally available for payment of distributions, cumulative cash distributions at the rate of 8.50% per annum of the $25.00 liquidation preference of each Series A Company Preferred Unit (equivalent to
$2.125 per annum per Series A Company Preferred Unit). 
 (ii) Distributions on each outstanding Series A Company Preferred Unit shall be
cumulative from and including January 15, 2015 and shall be payable (i) for the period from January 15, 2015 to April 14, 2015, on April 15, 2015, and (ii) for each quarterly distribution period thereafter, quarterly in
equal amounts in arrears on the 15th day of each January, April, July and October (each such day being hereinafter called a “Series A Distribution Payment Date”) at the then applicable annual rate; provided, however,
that if any Series A Distribution Payment Date falls on any day other than a Business Day (as defined in Annex I to the Restated Charter of CLNY (which contains the terms of articles supplementary establishing and fixing the rights and preferences
of the Series A Preferred Shares) (the “Series A Preferred Share Terms”)), the distribution that would otherwise have been payable on such Series A Distribution Payment Date may be paid on the next succeeding Business Day
with the same force and effect as if paid on such Series A Distribution Payment Date, and no interest or other sums shall accrue on the amount so payable from such Series A Distribution Payment Date to such next succeeding Business Day. Each
distribution is payable to holders of record as they appear on the books and records of the Company at the close of business on the record date, not exceeding 30 days preceding the applicable Series A Distribution Payment Date, as shall be fixed by
the Company. Distributions shall accumulate from January 15, 2015 or the most recent Series A Distribution Payment Date to which distribution have been paid, whether or not in any such distribution period or periods there shall be funds legally
available for the payment of such distributions, whether the Company has earnings or whether 

  
 E-1 

 
such distributions are authorized. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on the Series A Company Preferred Units
that may be in arrears. Holders of the Series A Company Preferred Units shall not be entitled to any distributions, whether payable in cash, property or stock, in excess of full cumulative distributions, as herein provided, on the Series A Company
Preferred Units. Distributions payable on the Series A Company Preferred Units for any period greater or less than a full distribution period will be computed on the basis of a 360-day year consisting of twelve 30-day months. Distributions payable
on the Series A Company Preferred Units for each full distribution period will be computed by dividing the applicable annual distribution rate by four. After full cumulative distributions on the Series A Company Preferred Units have been paid, the
holders of Series A Company Preferred Units will not be entitled to any further distributions with respect to that distribution period. 

(iii) So long as any Series A Company Preferred Units are outstanding, no distributions, except as described in the immediately following
sentence, shall be authorized and declared or paid or set apart for payment on any series or class or classes of Parity Units for any period unless full cumulative distributions have been declared and paid or are contemporaneously declared and paid
or declared and a sum sufficient for the payment thereof set apart for such payment on the Series A Company Preferred Units for all prior distribution periods. When distributions are not paid in full or a sum sufficient for such payment is not set
apart, as aforesaid, all distributions authorized and declared upon the Series A Company Preferred Units and all distributions authorized and declared upon any other series or class or classes of Parity Units shall be authorized and declared ratably
in proportion to the respective amounts of distributions accumulated and unpaid on the Series A Company Preferred Units and such Parity Units. 

(iv) So long as any Series A Company Preferred Units are outstanding, no distributions (other than distributions paid solely in Junior Units
of, or in options, warrants or rights to subscribe for or purchase, Junior Units) shall be authorized and declared or paid or set apart for payment or other distribution authorized and declared or made upon Junior Units, nor shall any Junior Units
be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Membership Units made for purposes of and in compliance with requirements of an employee incentive or benefit plan of CLNY or any subsidiary, or
a conversion into or exchange for Junior Units or redemptions for the purpose of preserving CLNY’s qualification as a REIT (as defined in the Charter), or redemptions of Membership Units pursuant to Article 15 of the Limited Liability Company
Agreement of the Company), for any consideration (or any monies to be paid to or made available for a sinking fund for the redemption of any such units) by the Company, directly or indirectly (except by conversion into or exchange for Junior Units),
unless in each case full cumulative distributions on all outstanding shares of Series A Company Preferred Units and any Parity Units at the time such distributions are payable shall have been paid or set apart for payment for all past distribution
periods with respect to the Series A Company Preferred Units and all past distribution periods with respect to such Parity Units. 
 (v) Any
distribution payment made on the Series A Company Preferred Units shall first be credited against the earliest accrued but unpaid distribution due with respect to such Series A Company Preferred Units which remains payable. 

(vi) Except as provided herein, the Series A Company Preferred Units shall not be entitled to participate in the earnings or assets of the
Company. 
 (vii) As used herein, the term “distribution” does not include distributions payable solely in Junior Units on Junior
Units, or in options, warrants or rights to holders of Junior Units to subscribe for or purchase any Junior Units. 

  
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 D. Liquidation Preference. 

(i) In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, before any payment or
distribution of the assets of the Company shall be made to or set apart for the holders of Junior Units, the holders of the Series A Company Preferred Units shall be entitled to receive $25.00 per Series A Company Preferred Unit (the
“Liquidation Preference”) plus an amount per Series A Company Preferred Unit equal to all accrued and unpaid distributions (whether or not earned or declared) thereon to, but not including, the date of final distribution to
such holders; but such holders of the Series A Company Preferred Units shall not be entitled to any further payment. If, upon any such liquidation, dissolution or winding up of the Company, the assets of the Company, or proceeds thereof,
distributable among the holders of the Series A Company Preferred Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other Parity Units, then such assets, or the proceeds thereof, shall be
distributed among the holders of such Series A Company Preferred Units and any such other Parity Units ratably in accordance with the respective amounts that would be payable on such Series A Company Preferred Units and any such other Parity Units
if all amounts payable thereon were paid in full. For the purposes of this Section D, none of (i) a consolidation or merger of the Company with one or more entities, (ii) a statutory unit exchange by the Company, or (iii) a
sale or transfer of all or substantially all of the Company’s assets shall be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the Company. 

(ii) Until payment shall have been made in full to the holders of the Series A Company Preferred Units, as provided in this Section D,
and to the holders of Parity Units, subject to any terms and provisions applying thereto, no payment will be made to any holder of Junior Units upon the liquidation, dissolution or winding up of the Company. Subject to the rights of the holders of
Parity Units, upon any liquidation, dissolution or winding up of the Company, after payment shall have been made in full to the holders of the Series A Company Preferred Units, as provided in this Section D, any series or class or classes of
Junior Units shall, subject to any respective terms and provisions applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the Series A Company Preferred Units shall not be entitled to
share therein. 
 E. Redemption. In connection with the redemption by CLNY of any Series A Preferred Shares in accordance with the
provisions of the Series A Preferred Share Terms, and at such times as CLNY is required or determines to make, deposit or set aside such payment, the Company shall provide cash to CLNY for such purpose which shall be equal to the redemption price
(as set forth in the Series A Preferred Share Terms), plus any accrued and unpaid dividends on the Series A Preferred Shares (whether or not declared), to, but not including, the redemption date, and one Series A Company Preferred Unit shall be
concurrently redeemed with respect to each Series A Preferred Share so redeemed by CLNY. If a redemption date for Series A Preferred Shares falls after a record date for a Series A Preferred Shares dividend payment and prior to the corresponding
dividend payment date, then the Company shall provide cash to CLNY equal to the dividend payable on such Series A Preferred Shares on such dividend payment date notwithstanding the redemption of such Series A Preferred Shares and corresponding
Series A Company Preferred Units prior to such dividend payment date. From and after the applicable redemption date, the Series A Company Preferred Units so redeemed shall no longer be outstanding and all rights hereunder, to distributions or
otherwise, with respect to such Series A Company Preferred Units shall cease. Any Series A Company Preferred Units so redeemed may be reissued to CLNY at such time as CLNY reissues a corresponding number of Series A Preferred Shares so redeemed or
repurchased, in exchange for the contribution by CLNY to the Company of the proceeds from such reissuance. 
 F. Voting Rights.
Except as required by applicable law or the Limited Liability Company Agreement of the Company, the holder of the Series A Company Preferred Units, as such, shall have no voting rights. 

  
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 G. Conversion. The Series A Company Preferred Units are not convertible into or
exchangeable for any other property or securities of the Company, except as provided herein. 
 (i) In the event of a conversion of any
Series A Preferred Shares into common stock of CLNY, par value $0.01 per share (“Common Stock”), in accordance with the Series A Preferred Share Terms, upon conversion of such Series A Preferred Shares, the Company shall
convert an equal whole number of the Series A Company Preferred Units into Membership Common Units as such Series A Preferred Shares are converted into shares of Common Stock. In the event of a conversion of any Series A Preferred Shares into
consideration other than Common Stock in accordance with the Series A Preferred Share Terms, the Company shall retire a number of Series A Company Preferred Units equal to the number of Series A Preferred Shares converted into such other form of
consideration. In the event of a conversion of the Series A Preferred Shares into Common Stock, to the extent CLNY is required to pay cash in lieu of fractional shares of Common Stock pursuant to the Series A Preferred Share Terms in connection with
such conversion, the Company shall distribute an equal amount of cash to CLNY. 
 (ii) Following any such conversion or retirement by the
Company pursuant to this Section G, the Company shall make such revisions to the Limited Liability Company Agreement of the Company as it determines are necessary to reflect such conversion. 

H. Restriction on Ownership. The Series A Company Preferred Units shall be owned and held solely by CLNY. 

I. Allocations. Allocations of the Company’s items of income, gain, loss and deduction with respect to the Series A Company
Preferred Units shall be allocated to CLNY as the sole holder of Series A Company Preferred Units in accordance with Article 6 of the Limited Liability Company Agreement of the Company. 

  
 E-4 

 EXHIBIT F: SERIES B COMPANY PREFERRED UNIT DESIGNATION 

A. Designation and Number. A series of Company Preferred Units, designated as Series B Company Preferred Units, is hereby established.
The number of Series B Company Preferred Units shall be 3,450,000. 
 B. Rank. The Series B Company Preferred Units will, with
respect to rights to receive distributions and to participate in distributions or payments upon liquidation, dissolution or winding up of the Company, rank (a) senior to the Membership Common Units and any other class of Membership Units of the
Company, now or hereafter issued and outstanding, the terms of which provide that such Membership Units rank, as to distributions and upon liquidation, dissolution or winding up of the Company, junior to such Series B Company Preferred Units
(“Junior Units”), (b) on a parity with the Series A Company Preferred Units (as defined in the Limited Liability Company Agreement of the Company) and any Membership Units the Company may authorize or issue in the future
that, pursuant to the terms thereof, rank on parity with the Series B Company Preferred Units with respect to distributions or payments in the event of the liquidation, dissolution or winding up of the Company (“Parity
Units”); and (c) junior to all Membership Units of the Company the terms of which specifically provide that such Membership Units rank senior to the Series B Company Preferred Units with respect to distributions or payments in the
event of the liquidation, dissolution or winding up of the Company (“Senior Units”). Any authorization or issuance of Senior Units would require the affirmative vote of the holders of at least two-thirds of the outstanding
Series B Company Preferred Units voting together as a single class with all other classes or series of Parity Units upon which like voting rights have been conferred and are exercisable. Any convertible or exchangeable debt securities that the
Company may issue are not considered to be equity securities for these purposes. 
 C. Distributions. 

(i) CLNY, in its capacity as the holder of the then outstanding Series B Company Preferred Units, shall be entitled to receive, when, as and
if authorized by the Company, out of funds legally available for payment of distributions, cumulative cash distributions at the rate of 7.50% per annum of the $25.00 liquidation preference of each Series B Company Preferred Unit (equivalent to
$1.875 per annum per Series B Company Preferred Unit). 
 (ii) Distributions on each outstanding Series B Company Preferred Unit shall be
cumulative from and including January 15, 2015 and shall be payable (i) for the period from January 15, 2015 to April 14, 2015, on April 15, 2015, and (ii) for each quarterly distribution period thereafter, quarterly in
equal amounts in arrears on the 15th day of each January, April, July and October (each such day being hereinafter called a “Series B Distribution Payment Date”) at the then applicable annual rate; provided, however,
that if any Series B Distribution Payment Date falls on any day other than a Business Day (as defined in Annex II to the Restated Charter of CLNY (which contains the terms of articles supplementary establishing and fixing the rights and preferences
of the Series B Preferred Shares) (the “Series B Preferred Share Terms”), the distribution that would otherwise have been payable on such Series B Distribution Payment Date may be paid on the next succeeding Business Day with
the same force and effect as if paid on such Series B Distribution Payment Date, and no interest or other sums shall accrue on the amount so payable from such Series B Distribution Payment Date to such next succeeding Business Day. Each distribution
is payable to holders of record as they appear on the books and records of the Company at the close of business on the record date, not exceeding 30 days preceding the applicable Series B Distribution Payment Date, as shall be fixed by the Company.
Distributions shall accumulate from January 15, 2015 or the most recent Series B Distribution Payment Date to which distribution have been paid, whether or not in any such distribution period or periods there shall be funds legally available
for the payment of such distributions, whether the Company has earnings or whether     

  
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such distributions are authorized. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on the Series B Company Preferred Units
that may be in arrears. Holders of the Series B Company Preferred Units shall not be entitled to any distributions, whether payable in cash, property or stock, in excess of full cumulative distributions, as herein provided, on the Series B Company
Preferred Units. Distributions payable on the Series B Company Preferred Units for any period greater or less than a full distribution period will be computed on the basis of a 360-day year consisting of twelve 30-day months. Distributions payable
on the Series B Company Preferred Units for each full distribution period will be computed by dividing the applicable annual distribution rate by four. After full cumulative distributions on the Series B Company Preferred Units have been paid, the
holders of Series B Company Preferred Units will not be entitled to any further distributions with respect to that distribution period. 

(iii) So long as any Series B Company Preferred Units are outstanding, no distributions, except as described in the immediately following
sentence, shall be authorized and declared or paid or set apart for payment on any series or class or classes of Parity Units for any period unless full cumulative distributions have been declared and paid or are contemporaneously declared and paid
or declared and a sum sufficient for the payment thereof set apart for such payment on the Series B Company Preferred Units for all prior distribution periods. When distributions are not paid in full or a sum sufficient for such payment is not set
apart, as aforesaid, all distributions authorized and declared upon the Series B Company Preferred Units and all distributions authorized and declared upon any other series or class or classes of Parity Units shall be authorized and declared ratably
in proportion to the respective amounts of distributions accumulated and unpaid on the Series B Company Preferred Units and such Parity Units. 

(iv) So long as any Series B Company Preferred Units are outstanding, no distributions (other than distributions paid solely in Junior Units
of, or in options, warrants or rights to subscribe for or purchase, Junior Units) shall be authorized and declared or paid or set apart for payment or other distribution authorized and declared or made upon Junior Units, nor shall any Junior Units
be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Membership Units made for purposes of and in compliance with requirements of an employee incentive or benefit plan of CLNY or any subsidiary, or
a conversion into or exchange for Junior Units or redemptions for the purpose of preserving CLNY’s qualification as a REIT (as defined in the Charter), or redemptions of Membership Units pursuant to Article 15 of the Limited Liability Company
Agreement of the Company), for any consideration (or any monies to be paid to or made available for a sinking fund for the redemption of any such units) by the Company, directly or indirectly (except by conversion into or exchange for Junior Units),
unless in each case full cumulative distributions on all outstanding shares of Series B Company Preferred Units and any Parity Units at the time such distributions are payable shall have been paid or set apart for payment for all past distribution
periods with respect to the Series B Company Preferred Units and all past distribution periods with respect to such Parity Units. 
 (v) Any
distribution payment made on the Series B Company Preferred Units shall first be credited against the earliest accrued but unpaid distribution due with respect to such Series B Company Preferred Units which remains payable. 

(vi) Except as provided herein, the Series B Company Preferred Units shall not be entitled to participate in the earnings or assets of the
Company. 
 (vii) As used herein, the term “distribution” does not include distributions payable solely in Junior Units on Junior
Units, or in options, warrants or rights to holders of Junior Units to subscribe for or purchase any Junior Units. 

  
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 D. Liquidation Preference. 

(i) In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, before any payment or
distribution of the assets of the Company shall be made to or set apart for the holders of Junior Units, the holders of the Series B Company Preferred Units shall be entitled to receive $25.00 per Series B Company Preferred Unit (the
“Liquidation Preference”) plus an amount per Series B Company Preferred Unit equal to all accrued and unpaid distributions (whether or not earned or declared) thereon to, but not including, the date of final distribution to
such holders; but such holders of the Series B Company Preferred Units shall not be entitled to any further payment. If, upon any such liquidation, dissolution or winding up of the Company, the assets of the Company, or proceeds thereof,
distributable among the holders of the Series B Company Preferred Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other Parity Units, then such assets, or the proceeds thereof, shall be
distributed among the holders of such Series B Company Preferred Units and any such other Parity Units ratably in accordance with the respective amounts that would be payable on such Series B Company Preferred Units and any such other Parity Units
if all amounts payable thereon were paid in full. For the purposes of this Section D, none of (i) a consolidation or merger of the Company with one or more entities, (ii) a statutory unit exchange by the Company, or (iii) a
sale or transfer of all or substantially all of the Company’s assets shall be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the Company. 

(ii) Until payment shall have been made in full to the holders of the Series B Company Preferred Units, as provided in this Section D,
and to the holders of Parity Units, subject to any terms and provisions applying thereto, no payment will be made to any holder of Junior Units upon the liquidation, dissolution or winding up of the Company. Subject to the rights of the holders of
Parity Units, upon any liquidation, dissolution or winding up of the Company, after payment shall have been made in full to the holders of the Series B Company Preferred Units, as provided in this Section D, any series or class or classes of
Junior Units shall, subject to any respective terms and provisions applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the Series B Company Preferred Units shall not be entitled to
share therein. 
 E. Redemption. In connection with the redemption by CLNY of any Series B Preferred Shares in accordance with the
provisions of the Series B Preferred Share Terms, and at such times as CLNY is required or determines to make, deposit or set aside such payment, the Company shall provide cash to CLNY for such purpose which shall be equal to the redemption price
(as set forth in the Series B Preferred Share Terms), plus any accrued and unpaid dividends on the Series B Preferred Shares (whether or not declared), to, but not including, the redemption date, and one Series B Company Preferred Unit shall be
concurrently redeemed with respect to each Series B Preferred Share so redeemed by CLNY. If a redemption date for Series B Preferred Shares falls after a record date for a Series B Preferred Shares dividend payment and prior to the corresponding
dividend payment date, then the Company shall provide cash to CLNY equal to the dividend payable on such Series B Preferred Shares on such dividend payment date notwithstanding the redemption of such Series B Preferred Shares and corresponding
Series B Company Preferred Units prior to such dividend payment date. From and after the applicable redemption date, the Series B Company Preferred Units so redeemed shall no longer be outstanding and all rights hereunder, to distributions or
otherwise, with respect to such Series B Company Preferred Units shall cease. Any Series B Company Preferred Units so redeemed may be reissued to CLNY at such time as CLNY reissues a corresponding number of Series B Preferred Shares so redeemed or
repurchased, in exchange for the contribution by CLNY to the Company of the proceeds from such reissuance. 
 F. Voting Rights.
Except as required by applicable law or the Limited Liability Company Agreement of the Company, the holder of the Series B Company Preferred Units, as such, shall have no voting rights. 

  
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 G. Conversion. The Series B Company Preferred Units are not convertible into or
exchangeable for any other property or securities of the Company, except as provided herein. 
 (i) In the event of a conversion of any
Series B Preferred Shares into common stock of CLNY, par value $0.01 per share (“Common Stock”), in accordance with the Series B Preferred Share Terms, upon conversion of such Series B Preferred Shares, the Company shall
convert an equal whole number of the Series B Company Preferred Units into Membership Common Units as such Series B Preferred Shares are converted into shares of Common Stock. In the event of a conversion of any Series B Preferred Shares into
consideration other than Common Stock in accordance with the Series B Preferred Share Terms, the Company shall retire a number of Series B Company Preferred Units equal to the number of Series B Preferred Shares converted into such other form of
consideration. In the event of a conversion of the Series B Preferred Shares into Common Stock, to the extent CLNY is required to pay cash in lieu of fractional shares of Common Stock pursuant to the Series B Preferred Share Terms in connection with
such conversion, the Company shall distribute an equal amount of cash to CLNY. 
 (ii) Following any such conversion or retirement by the
Company pursuant to this Section G, the Company shall make such revisions to the Limited Liability Company Agreement of the Company as it determines are necessary to reflect such conversion. 

H. Restriction on Ownership. The Series B Company Preferred Units shall be owned and held solely by CLNY. 

I. Allocations. Allocations of the Company’s items of income, gain, loss and deduction with respect to the Series B Company
Preferred Units shall be allocated to CLNY as the sole holder of Series B Company Preferred Units in accordance with Article 6 of the Limited Liability Company Agreement of the Company. 

  
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