Document:

Form of Second Amendment  and Restated Agreement

 EXHIBIT 10.2 
 FORM OF SECOND AMENDED AND RESTATED 
 AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 PALADIN REALTY INCOME
PROPERTIES, L.P. 
 THIS SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF PALADIN REALTY INCOME PROPERTIES, L.P. (this
“Agreement”), dated as of                 , 200    , is entered into by and among PALADIN REALTY INCOME PROPERTIES,
INC., a Maryland corporation, as general partner (the “General Partner”), and those Persons who have executed this Agreement or a counterpart hereof, or who become parties hereto pursuant to the terms of this Agreement. 

W I T N E S S E T H 
 WHEREAS, the General Partner and the Initial Limited Partner formed Paladin Realty Income Properties, L.P. (the “Partnership”) as a limited partnership pursuant to the Act by filing a certificate of limited partnership with
the Secretary of State of the State of Delaware on October 31, 2003; 
 WHEREAS, the General Partner and the Initial Limited Partner
entered into that certain Agreement of Limited Partnership of Paladin Realty Income Properties, L.P., dated as of October 31, 2003, providing for the organization of the Partnership upon the terms and conditions set forth therein; 

WHEREAS, the General Partner and the Initial Limited Partner entered into that certain Amended and Restated Agreement of Limited Partnership of
Paladin Realty Income Properties, L.P., dated as of February 28, 2005 (the “Amended and Restated Partnership Agreement”), providing for the organization of the Partnership upon the terms and conditions set forth therein;

 WHEREAS, the parties thereto desire to further amend and restate the Amended and Restated Partnership Agreement in its entirety pursuant
to the terms hereof; and 
 WHEREAS, this Agreement shall constitute the “partnership agreement” (within the meaning of the Act) of
the Partnership, and shall be binding upon all Persons now or at any time hereafter who are Partners; 
 NOW, THEREFORE, in consideration of
the mutual covenants and obligations set forth in this Agreement, and of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows:

 ARTICLE 1 
 DEFINED TERMS 
 Capitalized terms used in this Agreement (including exhibits, schedules and
amendments) shall have the meanings set forth below or in the Section of this Agreement referred to below, except as otherwise expressly indicated or limited by the context in which they appear in this Agreement. All terms defined in this Agreement
in the singular have the same meanings when used in the plural and vice versa. Accounting terms used but not otherwise defined shall have the meanings given to them under GAAP. 
 1.1 “Act” means the Delaware Revised Uniform Limited Partnership Act, as amended from time to time, and any successor to such statute. 
 1.2 “Additional Limited Partner” means a Person that has executed and delivered an additional limited partner signature page in the form attached
hereto and has been admitted to the Partnership as a Limited Partner pursuant to Section 12.2. 
 1.3 “Adjusted Capital Account
Deficit” means with respect to any Partner, the negative balance, if any, in such Partner’s Capital Account as of the end of any relevant Fiscal Year, determined after giving effect to the following adjustments: 
 (a) credit to such Capital Account any portion of such negative balance which such Partner (i) is treated as obligated to restore to the
Partnership pursuant to the provisions of Section 1.704-1(b)(2)(ii)(c) of the Treasury Regulations, or (ii) is deemed to be obligated to restore to the Partnership pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Treasury Regulations; and 
 (b) debit to such Capital Account the items described in Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Treasury Regulations. 
 This definition of Adjusted Capital Account Deficit is intended to comply with
the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 1.4 “Advisor” means Paladin Realty Advisors, LLC, the advisor to the Partnership and the General Partner pursuant to the Advisory Agreement. 
 1.5 “Advisory Agreement” means that certain Advisory Agreement by and among the Advisor, the Partnership and the General Partner dated as of
                , 200    , as it may be amended from time to time, modified, supplemented or restated. 
 1.6 “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. For this purpose, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  

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 1.7 “Agreed Value” means (a) in the case of any Contributed Property, the fair market value of
such Contributed Property at the time such property is contributed as determined by the General Partner and agreed to by the contributing party, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such
property is subject when contributed, and (b) in the case of any property distributed to a Partner by the Partnership, the Partnership’s Carrying Value of such property at the time such property is distributed, reduced by any indebtedness
either assumed by such Partner upon such distribution or to which such property is subject at the time of distribution. 
 1.8 “Agreement” means this Second Amended and Restated Agreement of Limited Partnership of Paladin Realty Income Properties, L.P., as originally executed and as amended, modified, supplemented or restated from time to
time, as the context requires. 
 1.9 “Appraised Value” means the value of the Partnership Assets as determined by an appraisal made by
an Independent Appraiser. 
 1.10 “Articles of Incorporation” means the General Partner’s Articles of Incorporation, filed with
the Maryland State Department of Assessments and Taxation, or other organizational document governing the General Partner, as amended, modified, supplemented or restated from time to time. 
 1.11 “Assignee” means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but who has
not become a Substituted Limited Partner, and who has the rights set forth in Section 11.5. 
 1.12 “Available Operating Cash”
means the cash flows derived by the Partnership from the operation of the Partnership’s business (other than any Net Capital Event Proceeds or Capital Contributions) before any deduction for depreciation or amortization and after deduction of:

 (a) all operating costs and expenses including taxes; 
 (b) all payments of principal, interest and other charges in respect of any Partnership indebtedness; 
 (c) all expenditures for capital improvements to the Partnership assets or property; and 
 (d) all reserves, whether for
working capital, debt repayment, new portfolio investments or otherwise (including for the redemption of Partnership Units) that are established by the General Partner in the exercise of its sole and absolute discretion. 
 1.13 “Book Gain” or “Book Loss” means the gain or loss recognized by the Partnership for purposes of Section 704(b) of the
Code in any Fiscal Year by reason of any sale or disposition with respect to any of the property or assets of the Partnership. Such Book Gain or Book Loss shall be computed by reference to the Carrying Value of such property or assets as of the date
of such sale or disposition, rather than by reference to the tax basis of such property or assets as of such date, and each and every reference herein to “gain” or “loss” shall be deemed to refer to Book Gain or Book Loss, rather
than to tax gain or tax loss, unless the context manifestly otherwise requires. 
  

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 1.14 “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in Los Angeles, California are authorized or required by law to close. 
 1.15 “Capital Account” has the meaning set forth in
Section 4.8. 
 1.16 “Capital Contribution” means, with respect to any Partner, any cash, cash equivalents or the Agreed Value of
Contributed Property that such Partner contributes or is deemed to contribute to the Partnership pursuant to Article 4 hereof. 
 1.17 “Capital
Transaction” means (a) any sale, exchange, taking by eminent domain, damage, destruction or other disposition of all or any part of the assets of the Partnership, any Subsidiary or any other Person in which the Partnership holds a
direct or indirect interest, other than tangible personal property disposed of in the ordinary course of business; or (b) any financing or refinancing of any indebtedness of the Partnership, any Subsidiary or any other Person in which the
Partnership holds a direct or indirect interest; provided, that the receipt by the Partnership of Capital Contributions shall not constitute a Capital Transaction. 
 1.18 “Carrying Value” means, except as otherwise provided herein, (a) with respect to a Contributed Property, the fair market value of such Contributed Property at the time such property is contributed, as
determined by the General Partner and agreed to by the contributing partner, without reduction for any liabilities either assumed by the Partnership upon such contribution or to which such property was subject when contributed, reduced (but not
below zero) by all Depreciation with respect to such property charged to the Partners’ Capital Accounts, and (b) with respect to any other Partnership Asset, the adjusted basis of such Partnership Asset for Federal income tax purposes, all
as of the time of determination. The Carrying Value of any property shall be adjusted in accordance with Section 4.8(b) from time to time to reflect changes, additions or other adjustments to the Carrying Value, as deemed appropriate by the
General Partner. 
 1.19 “Cash Amount” means an amount of cash equal to the Value of the REIT Stock Amount on the Valuation Date.

 1.20 “Certificate” means the Certificate of Limited Partnership of the Partnership, filed on October 31, 2003, as amended,
restated, supplemented or otherwise modified from time to time as herein provided in accordance with the Act. 
 1.21 “Code” means the
Internal Revenue Code of 1986, as amended from time to time, and any subsequent Federal law of similar import, and, to the extent applicable, any Treasury Regulations promulgated thereunder. 
 1.22 “Common Stock” means a share of the common stock of the General Partner, par value $.01 per share. Common Stock may be issued in one or more
classes or series in accordance with the terms of the Articles of Incorporation. If there is more than one class or series of Common Stock, the term “Common Stock” shall, as the context requires, be deemed to refer to the class or series
of Common Stock that correspond to the class or series of Partnership Units for which the reference to Common Stock is made. 
  

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 1.23 “Consent” means the consent or approval of a proposed action by a Partner given in accordance
with Section 14.2 hereof. 
 1.24 “Consent of the Outside Limited Partners” means the Consent of the Outside Limited Partners
holding a number of Partnership Units greater than fifty percent (50%) of the aggregate Partnership Units held by all Outside Limited Partners. 
 1.25 “Contributed Property” means each property or other asset (but excluding cash and cash equivalents), in such form as may be contributed by a Partner to the Partnership as permitted by the Act. 
 1.26 “Depreciation” means, for each Fiscal Year, an amount equal to the depreciation, amortization or other cost recovery deduction allowable with
respect to an asset for such year or other period for Federal income tax purposes; provided, that if the Carrying Value of an asset differs from its adjusted basis for Federal income tax purposes at the beginning of any such year or other period,
Depreciation shall be determined in the manner described in Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3) or 1.704-3(d)(2), whichever is applicable, and if such asset has a zero adjusted tax basis, Depreciation shall be an amount
determined under any reasonable method selected by the General Partner. 
 1.27 “Effective Date” means the date of first closing of the
offering of Common Stock pursuant to the Registration Statement. 
 1.28 “8% Return” means, with respect to the General Partner, an
amount calculated like simple interest at the rate of eight percent (8%) per annum calculated on the varying daily balances of Invested Capital of the General Partner during the period to which the 8% Return relates, and determined on the basis
of a 360-day year/30-day month, cumulative for the period for which such 8% Return is being determined. 
 1.29 “8% Return Account”
means, with respect to the General Partner, as of any relevant date, an amount equal to the excess of (i) the 8% Return that has accrued with respect to the Invested Capital of the General Partner through such date, over (ii) the sum of
(A) the cumulative distributions of Available Cash and Net Capital Event Proceeds made to the General Partner prior to such relevant date pursuant to Section 5.1 hereof, and (B) the cumulative amounts paid to the General Partner in
redemption of its Partnership Units pursuant to Section 8.6(g) as of such date, other than such distributions and payments that are applied to reduce the Unrecovered Contribution Account of the General Partner. All amounts distributed and paid
to the General Partner pursuant to Sections 5.1 and 8.6(g) shall first be applied to reduce the Unrecovered Contribution Account of the General Partner until the balance of such Unrecovered Contribution Account equals zero ($0), and then shall be
applied to reduce the 8% Return Account of the General Partner. 
  

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 1.30 “Entity” means any general partnership, limited liability company, proprietorship,
corporation, joint venture, joint-stock company, limited partnership, limited liability partnership, business trust, firm, trust, estate, governmental entity, cooperative, association or other foreign or domestic enterprise. 
 1.31 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time (or any corresponding provisions of succeeding
laws). 
 1.32 “Fiscal Year” means the fiscal year of the Partnership and shall be the same as its taxable year, which shall be the
calendar year unless otherwise determined by the General Partner in accordance with the Code. 
 1.33 “GAAP” means United States
generally accepted accounting principles, as in effect from time to time. 
 1.34 “General Partner” means Paladin Realty Income
Properties, Inc., a Maryland corporation, and any successor as general partner of the Partnership. 
 1.35 “General Partner Interest”
means a Partnership Interest held by the General Partner, in its capacity as general partner. A General Partner Interest may be expressed as a number of Partnership Units. 
 1.36 “Incapacity” or “Incapacitated” means: 
 (a) as to any
individual Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating him incompetent to manage his person or his estate; 
 (b) as to any corporation that is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; 
 (c) as to any partnership that is a Partner, the dissolution and commencement of winding up of the partnership; 
 (d) as to any estate that is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership; 
 (e) as to any trustee of a trust that is a Partner, the termination of the trust (but not the substitution of a new trustee); or 
 (f) as to any Partner, the bankruptcy of such Partner, which shall be deemed to have occurred when: 
 (i) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency
or other similar law now or hereafter in effect; 
  

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 (ii) the Partner is adjudged as bankrupt or insolvent, or a final and nonappealable
order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Partner; 
 (iii) the Partner executes and delivers a general assignment for the benefit of the Partner’s creditors; 
 (iv) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Partner in any proceeding of the nature described in clause (ii) above; 
 (v) the Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all
or any substantial part of the Partner’s assets; 
 (vi) any proceeding seeking liquidation, reorganization or other
relief of or against such Partner 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; 
 (vii) the appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator has not been vacated or
stayed within ninety (90) days of such appointment; or 
 (viii) an appointment referred to in clause
(vii) which has been stayed is not vacated within ninety (90) days after the expiration of any such stay. 
 1.37 “Indemnitee”
means 
 (a) any Person made a party to a proceeding by reason of its status as: 
 (i) the General Partner, 
 (ii) a Limited Partner, 
 (iii) the Advisor, 
 (iv) a director, trustee, manager, member or officer of the Partnership, the General Partner or the Advisor, or 
 (v) a director, trustee, manager, member or officer of any other Entity, serving in such capacity at the request of the Partnership,
the General Partner or the Advisor, acting on behalf of the Partnership or the General Partner, or 
  

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 (b) such other Persons (including Affiliates of the General Partner) as the General Partner may
designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion. 
 1.38 “Independent Appraiser” means an appraiser of real estate with no material current or prior business or personal relationship with the Advisor, the Partnership, the General Partner or the directors of the General
Partner, that, in the determination of the General Partner, is qualified to appraise real estate by virtue of being engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the
Partnership. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence of such qualification. 
 1.39 “Initial Limited Partner” means Paladin Realty Advisors, LLC. 
 1.40 “Invested Capital” means, with respect to the General Partner, as of any relevant date, an amount equal to the excess of (i) the aggregate amount of cash contributed or deemed
contributed by the General Partner to the Partnership from the gross proceeds of the issuance by the General Partner of REIT Stock or other equity Securities pursuant to Article IV hereof, over (ii) the sum of (A) the cumulative
distributions of Net Sales Proceeds made to the General Partner pursuant to Section 5.1(c) as of such date, and (B) the cumulative amounts paid to the General Partner in redemption of its Partnership Units pursuant to Section 8.6(g)
as of such date. 
 1.41 “Investments” means and Real Property Investment or any Real Estate Related Investment. 
 1.42 “IRS” shall mean the Internal Revenue Service of the United States. 
 1.43 “Lien” means any lien, security interest, mortgage, deed of trust, charge, claim, encumbrance, pledge, option, right of first offer or first refusal and any other right or interest of others
of any kind or nature, actual or contingent, or other similar encumbrance of any nature whatsoever. 
 1.44 “Limited Partner” means,
prior to the admission of the first Additional Limited Partner to the Partnership, the Initial Limited Partner, and thereafter any Person named as a limited partner of the Partnership in Exhibit A, as such Exhibit may be amended from time to
time, upon the execution and delivery by such Person of an additional limited partner signature page, including any Additional Limited Partner or Substituted Limited Partner in each case, in such Person’s capacity as a limited partner of the
Partnership. 
 1.45 “Limited Partner Interest” means a Partnership Interest of a Limited Partner in the Partnership. A Limited Partner
Interest may be expressed as a number of Partnership Units. 
 1.46 “Liquidating Event” has the meaning set forth in Section 13.1
hereof. 
 1.47 “Liquidator” has the meaning set forth in Section 13.2 hereof. 
  

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 1.48 “Listing Event” means the listing of the REIT Stock on a national securities exchange.

 1.49 “Listing Date” means the date on which a Listing Event occurs. 
 1.50 “Market Value” means the market value of the REIT Stock as of the date of a Listing
Event, which shall be equal to the product of (a) the number of shares of REIT Stock issued and outstanding at the time of the Listing Event, multiplied by (b) the average Listed Market Price (as defined below) of a share of REIT Stock for
the 30 trading days beginning on the 180th day after the Listing Date. The “Listed Market Price” of a share of REIT Stock for each such trading day shall be the last reported sale price on such day or, if no sale takes place on
such day, the average of the closing bid and asked prices on such day, as reported on the national securities exchange on which the REIT Stock is listed for trading. 
 1.51 “NASAA Guidelines” means the North American Securities Administrators Association, Inc. Statement of Policy Regarding Real Estate Investment Trusts. 
 1.52 “Net Capital Event Proceeds” means, with respect to any Partnership Asset (or portion thereof), the proceeds, if any, with respect to a
Capital Transaction related to such Partnership Asset, net of (a) any costs and expenses incurred in connection with such Capital Transaction, (b) any of such proceeds which are used to repay indebtedness, (c) any insurance proceeds
applied to restoration, repair or rebuilding, and (d) any proceeds of business interruption insurance, and after setting aside appropriate reserves, as determined by the General Partner in its sole and absolute discretion. 
 1.53 “Net Sales Proceeds” means any Net Capital Event Proceeds other than proceeds from any transaction or event described under clause (b) of
the definition herein of Capital Transaction; provided, that the receipt by the Partnership of Capital Contributions shall not constitute Net Sales Proceeds; and provided further that the proceeds of a Terminating Capital Transaction shall not
constitute Net Sales Proceeds. 
 1.54 “Nonrecourse Deductions” has the meaning set forth in Sections 1.704-2(b)(1) and 1.704-2(c) of
the Treasury Regulations. 
 1.55 “Nonrecourse Liabilities” has the meaning set forth in Section 1.704-2(b)(3) of the Treasury
Regulations. 
 1.56 “Notice of Redemption Request” means a notice of redemption request substantially in the form of Exhibit B
attached hereto. 
 1.57 “Outside Limited Partners” means the Limited Partners, excluding the Initial Limited Partner and any Limited
Partner that is an Affiliate of the General Partner or the Initial Limited Partner. 
 1.58 “Partner” means a General Partner or a
Limited Partner, and “Partners” means the General Partner and the Limited Partners, collectively. 
  

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 1.59 “Partner Minimum Gain” means an amount, with respect to each Partner’s Partner
Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i)(3). 
 1.60 “Partner Nonrecourse Debt” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(4). 
 1.61 “Partner Nonrecourse Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(i)(2), and the amount of Partner
Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Treasury Regulations Section 1.704-2(i)(2). 
 1.62 “Partnership” means Paladin Realty Income Properties, L.P., and any successor thereto. 
 1.63 “Partnership Asset” means the interest of the Partnership in any Entity or security (whether in corporate securities, equity, debt or hybrid
securities, partnership or joint venture interests, other contractual rights or otherwise), or any other Investments or other assets owned, directly or indirectly, by the Partnership, as determined by the General Partner. 
 1.64 “Partnership Interest” means the entire ownership interest of a Partner in the Partnership at any particular time which represents a Capital
Contribution by such Partner and which includes the right of such Partner to any and all benefits to which such Partner may be entitled as provided in this Agreement, together with the obligations of such Partner to comply with all terms and
provisions of this Agreement. A Partnership Interest may be expressed as a number of Partnership Units. 
 1.65 “Partnership Minimum
Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year shall be determined
in accordance with the rules of Treasury Regulations Section 1.704-2(d). 
 1.66 “Partnership Record Date” means the record date
established by the General Partner for the distribution by the Partnership of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets pursuant to Section 5.1 hereof, which record date shall be the same as the record
date established by the General Partner for a distribution to its stockholders of some or all of its portion of such distribution by the Partnership. 
 1.67 “Partnership Unit” means a unit of Partnership Interest with the rights, powers and duties set forth herein, designated as such on Exhibit A and expressed in the number set forth on Exhibit A, as
such exhibit may be amended from time to time. 
 1.68 “Percentage Interest” means, as to each Partner, the percentage determined by
dividing the total number of Partnership Units owned by such Partner by the aggregate number of Partnership Units then issued and outstanding, as set forth on Exhibit A, as such exhibit may be amended from time to time. 
  

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 1.69 “Permitted Transferee” means with respect to a Person, (a) any Affiliate of such Person,
(b) the spouse of such Person or any ancestor, descendent or sibling of such Person or of the spouse of such Person, or (c) any trust for the benefit of such Person or any other person described in clause (b) of this
Section 1.69. 
 1.70 “Person” means any individual or Entity, and the heirs, executors, administrators, legal representatives,
successors and assigns of such individual or Entity where the context so permits. 
 1.71 “Profits” and “Losses”
means, for each Fiscal Year or other period for which allocations to Partners are made, an amount equal to the Partnership’s taxable income or loss for such period determined in accordance with Federal income tax principles, with the following
adjustments: 
 (a) any income of the Partnership that is exempt from Federal income tax and not otherwise taken into account in
computing Profits or Losses pursuant to this provision shall be added to such taxable income or loss; 
 (b) any expenditure of the
Partnership described in Section 705(a)(2)(B) of the Code or treated as Code Section 705(a)(2)(B) expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the Treasury Regulations, and not otherwise taken into account in computing
Profits or Losses pursuant to this provision, shall be subtracted from such taxable income or loss; 
 (c) in the event the Carrying
Value of any Partnership asset is adjusted pursuant to this Agreement, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses, and shall be allocated
in accordance with the provisions of Article 6; 
 (d) Book Gain or Book Loss from a Capital Transaction shall be taken into account in
lieu of any tax gain or tax loss recognized by the Partnership by reason of such Capital Transaction; 
 (e) in lieu of the
depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year or other period, computed as provided in this Agreement;

 (f) to the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or
Section 743(b) of the Code is required pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s interest in the
Partnership, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the Partnership asset) or loss (if the adjustment decreases the basis of the Partnership asset) from the disposition of the
Partnership asset and shall be taken into account for purposes of computing Profits or Losses; and 
  

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 (g) any items which are specially allocated pursuant to Section 6.2 shall not be taken into
account in computing Profits or Losses. 
 If the Partnership’s taxable income or loss for such Fiscal Year or other period, as adjusted in the manner
provided above, is a positive amount, such amount shall be the Partnership’s Profits for such Fiscal Year or other period; and if a negative amount, such amount shall be the Partnership’s Losses for such Fiscal Year or other period.

 1.72 “Prohibited Transferee” means any Person who is a: 
 (a) person or entity who is a “designated national,” “specially designated national,” “specially designated
terrorist,” “specially designated global terrorist,” “foreign terrorist organization,” or “blocked person” within the definitions set forth in the Foreign Assets Control Regulations of the United States Treasury
Department, 31 C.F.R., Subtitle B, Chapter V, as amended; 
 (b) person acting on behalf of, or an entity owned or controlled by, any
government against whom the United States maintains economic sanctions or embargoes under the Regulations of the United States Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, including, but not limited to, the “Government of
Sudan,” the “Government of Iran,” the “Government of Libya,” and the “Government of Iraq;” or 
 (c) person or entity subject to additional restrictions imposed by the following statutes or Regulations and Executive Orders issued thereunder: the Trading with the Enemy Act, 50 U.S.C. app. §§1 et. seq., the Iraq Sanctions
Act, Pub. L. 101-513, Title V, §§ 586 to 586J, 104 Stat. 2047, the National Emergencies Act, 50 U.S.C. §§ 1601 et. seq., the Antiterrorism and Effective Death Penalty Act of 1996, Pub. L. 104-132, 110 Stat. 1214-1319, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the United Nations Participation Act, 22 U.S.C. § 287c, the International Security and Development Cooperation Act, 22 U.S.C. § 2349aa-9, the Nuclear
Proliferation Prevention Act of 1994, Pub. L. 103-236, 108 Stat. 507, the Foreign Narcotics Kingpin Designation Act, 21 U.S.C. §§ 1901 et. seq., the Iran and Libya Sanctions Act of 1996, Pub. L. 104-172, 110 Stat. 1541, the Cuban Democracy
Act, 22 U.S.C. §§ 6001 et seq., the Cuban Liberty and Democratic Solidarity Act, 22 U.S.C. §§ 6021-91, and the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1997, Pub. L. 104-208, 110 Stat.
3009-172, or any other law of similar import as to any non-U.S. country, as each such Act or law has been or may be amended, adjusted, modified, or reviewed from time to time. 
 1.72 “Real Estate Related Investment” means any of the following: (1) loans on real property such as mortgages and mezzanine loans; (2) equity securities of public or private real estate
companies such as common stock, preferred stock and convertible securities; and (3) investments in debt securities such as commercial mortgage backed securities, or CMBS, commercial mortgages and other debt securities. 
  

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 1.73 “Real Property Investment” means any investment in unimproved and improved real property,
(including, without limitation, fee or leasehold interests, options and leases), either directly or through a joint venture. 
 1.74 “Redeeming
Partner” has the meaning set forth in Section 8.6. 
 1.75 “Redemption Amount” means either the Cash Amount or the REIT
Stock Amount, as determined by the General Partner in its sole and absolute discretion. 
 1.76 “Redemption Right” has the meaning set
forth in Section 8.6. 
 1.77 “Registration Statement” means the Registration Statement on Form S-11 to be filed by the General
Partner with the Securities and Exchange Commission, and any amendments thereto made at any time. 
 1.78 “REIT” means a “real
estate investment trust” as defined under Section 856 of the Code. 
 1.79 “REIT Notice” has the meaning set forth in
Section 8.6(g). 
 1.80 “REIT Stock” means the Common Stock and all other shares of capital stock of the General Partner.

 1.81 “REIT Stock Amount” means a number of shares of REIT Stock equal to the number of Partnership Units offered by redemption by a
Redeeming Partner; provided that in the event that the General Partner issues to all holders of REIT Stock rights, options, warrants, or convertible or exchangeable securities entitling stockholders of the General Partner to acquire REIT Stock, or
any other securities or property (collectively, the “rights”), then the REIT Stock Amount shall also include such rights that a holder of that number of shares of REIT Stock would be entitled to receive. 
 1.82 “Securities Act” means the Securities Act of 1933, as amended. 
 1.83 “Specified Redemption Date” means the tenth (10th) Business Day after
receipt by the General Partner of a Notice of Redemption Request (or, in the case of the General Partner exercising the Redemption Right, after the date of the General Partner’s receipt of a REIT Notice). 
 1.84 “Stock Option Plans” means, collectively, any and all plans adopted from time to time by the General Partner pursuant to which REIT Stock is
issued, or options to acquire REIT Stock are granted, to employees or directors of the General Partner, employees of the Partnership or employees of their respective Affiliates in consideration for services or future services. 
 1.85 “Subsidiary” means, with respect to any Person, any Entity of which a majority of the voting power or the voting equity securities, and/or the
outstanding equity interests (whether or not voting), is owned, directly or indirectly, by such Person. 
  

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 1.86 “Substituted Limited Partner” means a Person who is admitted as a Limited Partner to the
Partnership pursuant to Section 11.4 hereof. 
 1.87 “Terminating Capital Transaction” means any sale or other disposition (other
than a deemed disposition pursuant to Code Section 708(b)(1)(B) and the Treasury Regulations thereunder) of all or substantially all of the assets of the Partnership or a related series of transactions that, taken together, result in the sale
or other disposition of all or substantially all of the assets of the Partnership. 
 1.88 “Termination Event” means any termination of
the Advisor as advisor to the Partnership and the General Partner under the terms of the Advisory Agreement, other than any termination for “Cause” (as defined in the Advisory Agreement) and other than any termination of the Advisory
Agreement due to the occurrence of a Listing Event. 
 1.89 “Transfer” means to give, sell, assign, pledge, hypothecate, devise,
bequeath, or otherwise dispose of, transfer, or permit to be transferred, during life or at death. The word “Transfer,” when used as a noun, shall mean any Transfer transaction. 
 1.90 “Treasury Regulations” means the Federal income tax regulations, including any temporary or proposed regulations, promulgated under the Code,
as such Treasury Regulations may be amended from time to time (it being understood that all references herein to specific sections of the Treasury Regulations shall be deemed also to refer to any corresponding provisions of succeeding Treasury
Regulations). 
 1.91 “Unrecovered Contribution Account” means, with respect to the General Partner, as of any relevant date, the
excess of (i) the aggregate amount of cash contributed or deemed contributed by the General Partner to the Partnership pursuant to the provisions of Article IV as of such date, over (ii) the sum of (A) the cumulative distributions of
Available Cash and Net Capital Event Proceeds made to the General Partner prior to such relevant date pursuant to Section 5.1 hereof, and (B) the cumulative amounts paid to the General Partner in redemption of its Partnership Units
pursuant to Section 8.6(g) as of such date. All amounts distributed and paid to the General Partner pursuant to Sections 5.1 and 8.6(g) shall first be applied to reduce the Unrecovered Contribution Account of the General Partner until the
balance of such Unrecovered Contribution Account equals zero ($0), and then shall be applied to reduce the 8% Return Account of the General Partner. 
 1.92 “Valuation Date” means the date of receipt by the General Partner of a Notice of Redemption Request (or, in the case of the General Partner exercising the Redemption Right, the date of the General Partner’s
receipt of a REIT Notice) or, if such date is not a Business Day, the first Business Day thereafter. 
 1.93 “Value” means, with
respect to a share of REIT Stock, (a) if REIT Stock is traded on a national securities exchange or otherwise traded over-the-counter, the average of the daily Market Price (as defined below) for shares of REIT Stock for the ten
(10) consecutive trading days immediately preceding the Valuation Date, or (b) if REIT Stock is not traded in a manner described in clause (a), the value of a share of REIT Stock as determined by the General Partner acting in good faith on
the basis of such 

  

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quotations and other information as it considers, in its reasonable judgment, appropriate. The “Market Price” for each such trading day shall be
(i) the last reported sale price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation source designated by the General Partner; or (ii) if no
such last reported sale price or closing bid and asked prices are available, the average of the reported high bid and low asked prices on such day, as reported by a reliable quotation source designated by the General Partner, or (iii) if there
shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than ten (10) days prior to the date in question) for which prices have been so reported. In the
event the REIT Stock Amount includes rights that a holder of REIT Stock would be entitled to receive, then the Value of such rights shall be determined by the General Partner acting in good faith on the basis of such quotations and other information
as it considers, in its reasonable judgment, appropriate. 
 ARTICLE 2 
 ORGANIZATIONAL MATTERS 
  

	2.1	Formation 

 The Partnership is a limited partnership
organized pursuant to the provision of the Act and upon the terms and conditions set forth in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of
the Partnership shall be governed by the Act. 
  

	2.2	Name 

 The name of the Partnership is Paladin Realty
Income Properties, L.P. The Partnership’s business may be conducted under such name or under any other name or names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words
“Limited Partnership,” “L.P.,” “Ltd.” or similar words or letters shall be included in the Partnership’s name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The
General Partner, acting in its sole and absolute discretion without the Consent of any Limited Partner, may change the name of the Partnership. The General Partner shall notify the Limited Partners of any such name change in the next regular
communication to the Limited Partners. Upon termination of the Partnership or the termination, resignation or withdrawal of the Initial Limited Partner as the Advisor, all of the Partnership’s right, title and interest in and to the use of the
name “Paladin Realty Income Properties, L.P.” and any variation thereof, shall become the property of the Initial Limited Partner, and if requested to do so by the Initial Limited Partner, the Partnership shall change the name of the
Partnership to exclude the term “Paladin.” Neither the Partnership nor any Limited Partner shall have any right or interest in and to the use of any such name or mark. 
  

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	2.3	Registered Office and Agent 

 The address of the
registered office of the Partnership in the State of Delaware shall be c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808, or such other place as may be designated from time to time by the General Partner. The
name of the registered agent for service of process on the Partnership in the State of Delaware at such address shall be Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808, or such other Person as may be designated
from time to time by the General Partner. 
  

	2.4	Principal Place of Business 

 The Partnership may
maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable. The principal office of the Partnership shall be 10880 Wilshire Blvd., Los Angeles, California 90024, Suite 1400 or such
other place as the General Partner may from time to time designate by notice to the Limited Partners. 
  

	2.5	Term and Termination 

 The term of the Partnership
shall commence on the date hereof and shall continue until February 23, 2104, unless the Partnership is dissolved sooner pursuant to the provisions of Article 13 or as otherwise provided by law. 
  

	2.6	Power of Attorney 

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

(i) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices: 
 (A) all certificates, documents and other instruments (including, without limitation, this Agreement and the Certificate and all
amendments or restatements thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the
Limited Partners have limited liability) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property, including, without limitation, any documents necessary or advisable to convey
any Contributed Property to the Partnership; 
 (B) all instruments that the General Partner or any Liquidator deems
appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement in accordance with its terms; 
 (C) all conveyances and other instruments or documents that the General Partner or any Liquidator deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms
of this Agreement, including, without limitation, a certificate of cancellation; 
  

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 (D) all instruments relating to the admission, withdrawal, removal or substitution
of any Partner pursuant to, or other events described in, Article 11, 12 or 13 hereof or any Capital Contribution of any Partner; 
 (E) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; 
 (F) all amendments to this Agreement as provided in Article 14 hereof; and 
 (G) all other instruments that may be required by law to be filed on behalf of or relating to the Partnership and that are not
inconsistent with this Agreement; and 
 (ii) execute, swear to, seal, acknowledge and file all ballots, consents,
approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other
action which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, to effectuate the terms or intent of this
Agreement. 
 Nothing contained herein shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except
in accordance with Article 14 hereof or as may be otherwise expressly provided for in this Agreement. 
 (b) The foregoing power of
attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact that each of the Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated by this
Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the subsequent Incapacity of any Limited Partner or Assignee and/or the Transfer of all or any portion of such Limited
Partner’s or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns and personal representatives. 
 (c) Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator, acting in
good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator, taken in good
faith under such power of attorney. 
 (d) Each Limited Partner or Assignee shall execute and deliver to the General Partner or the
Liquidator, within fifteen (15) days after receipt of the General Partner’s or Liquidator’s request therefor, such further designation, powers of attorney and other instruments as the General Partner or the Liquidator, as the case may
be, deems necessary to effectuate this Agreement and the purposes of the Partnership. 
  

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 (e) Any Person dealing with the Partnership may conclusively presume and rely upon the fact that any
instrument referred to in this Section 2.6, executed by the General Partner or the Liquidator acting as attorney-in-fact, is authorized by and binding on the Partnership, without further inquiry. 
  

	2.7	Effectiveness of this Agreement 

 This Agreement
shall govern the operations of the Partnership and the rights and restrictions applicable to the Partners, to the extent permitted by law. Pursuant to Section 17-101(12) of the Act, all Persons who become holders of Partnership Interests shall
be bound by the provisions of this Agreement. The execution by a Person of this Agreement and acceptance thereof by the General Partner in accordance with the terms of this Agreement or the receipt of Partnership Interests by a Person as a successor
or assign of an existing Partner and the consent of the General Partner to the admission of such Person as a Substituted Limited Partner in accordance with the terms of this Agreement shall be deemed to constitute a request that the records of the
Partnership reflect such admission, and shall be deemed to be a sufficient act to comply with the requirements of Section 17-101(12) of the Act and to so cause that Person to become a Partner as of the date of acceptance of its Capital
Contribution by the Partnership and to bind that Person to the terms and conditions of this Agreement (and to entitle that Person to the rights of a Partner hereunder). 
 ARTICLE 3 
 PURPOSE AND POWERS 
  

	3.1	Purpose and Business 

 The purpose and nature of the
business to be conducted by the Partnership is to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Act including, without limitation, to engage in the following activities: 
 (a) to acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease, transfer, encumber, convey, exchange and otherwise dispose
of or deal with Investments; 
 (b) acquire own, hold for investment and ultimately dispose of general and limited partner interests,
and stock, warrants, options or other equity and debt interests in Entities, and exercise all rights and powers granted to the owner of any such interests; 
 (c) make any type of investment and engage in any other lawful act or activity for which limited partnerships may be formed under the Act, and by such statement all lawful acts and activities shall be within the
purposes of the Partnership; 
 (d) to undertake such other activities as may be necessary, advisable, desirable or convenient to the
business of the Partnership; and 
  

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 (e) to engage in such other ancillary activities as shall be necessary or desirable to effectuate
the foregoing purposes; 
 provided, however, that such business shall be limited to and conducted in such a manner as to permit the General Partner at all
times to be classified as a REIT, unless the General Partner determines not to qualify as a REIT or ceases to qualify as a REIT for reasons other than the conduct of the business of the Partnership. 
  

	3.2	Powers 

 (a) The Partnership is empowered to do
any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described in Section 3.1 and for the protection and benefit of the
Partnership including, without limitation, full power and authority to enter into, perform, and carry out contracts of any kind, to borrow money and to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other
Lien, and, directly or indirectly, to acquire, hold, own, develop, construct, improve, maintain and operate Investments, and to sell, lease, transfer, encumber, convey, exchange and otherwise dispose of Investments. 
 (b) The General Partner also is empowered to do any and all acts and things necessary, appropriate or advisable to ensure that the Partnership will
not be classified as a “publicly traded partnership” within the meaning of Section 7704 of the Code, including, but not limited to, imposing restrictions on Transfers of Partnership Units. 
 ARTICLE 4 
 CAPITAL CONTRIBUTIONS;
PARTNERSHIP UNITS; 
 ADDITIONAL FUNDS 
  

	4.1	Capital Contributions of the Partners 

 (a) Initial Capital Contributions. The General Partner and the Initial Limited Partner have made the Capital Contributions as set forth on Exhibit A to this Agreement in exchange for the number of Partnership Units set
forth opposite their names on Exhibit A. At such time as Additional Limited Partners are admitted to the Partnership, each such Additional Limited Partner shall make Capital Contributions in the amount set forth opposite such Limited
Partner’s name on Exhibit A, as it shall be amended at the time of such contribution. 
 (b) Deemed Capital
Contributions. To the extent the Partnership acquires any property by the merger of any other Person into the Partnership or the contribution of assets by any other Person to the Partnership, Persons who receive Partnership Interests in exchange
for their interests in the Person merging into or contributing assets to the Partnership shall become Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement or contribution agreement and as set
forth in Exhibit A, as it shall be amended to reflect such deemed Capital Contributions. 
  

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 (c) Partnership Units. Each Partner shall own Partnership Units in the amounts set forth for
such Partner in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to time by the General Partner to the extent
necessary to reflect accurately redemptions, additional Capital Contributions, the issuance of additional Partnership Units or similar events having an effect on the number of Partnership Units held by, and the Percentage Interest of, any Partner.
Each Partnership Unit shall entitle the holder thereof to one vote on all matters on which the Partners (or any portion of the Partners) are entitled to vote under this Agreement. 
 (d) No Additional Capital Contributions. Except as provided in Sections 4.3(a) and 10.5, the Partners shall have no obligation to make any
additional Capital Contributions or provide any additional funding to the Partnership (whether in the form of loans or otherwise) and no Partner shall have any obligation to restore any deficit that may exist in its Capital Account, either upon a
liquidation of the Partnership or otherwise. 
  

	4.2	Issuance of Additional Partnership Interests 

 (a) The General Partner is authorized to cause the Partnership to issue additional Partnership Interests (or options or warrants to acquire Partnership Interests) in the form of Partnership Units or other Partnership Interests in one
or more series or classes to any Persons at any time or from time to time, on such terms and conditions as the General Partner shall establish in each case in its sole and absolute discretion subject to Delaware law, including, without limitation,
(i) the allocations of items of Partnership income, gain, loss, deduction and credit to each class or series of Partnership Interests, (ii) the right of each class or series of Partnership Interests to share in Partnership distributions,
and (iii) the rights of each class or series of Partnership Interest upon dissolution and liquidation of the Partnership; provided, that, no such Partnership Interests shall be issued to the General Partner unless either (A) the
Partnership Interests are issued pursuant to Section 4.3, or (B) the additional Partnership Interests are issued to all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such
class. 
 (b) Subject to the limitations set forth in Sections 4.2(a) and 4.3(a), the General Partner may take such steps as it, in its
sole and absolute discretion, deems necessary or appropriate to admit any Person as a Limited Partner of the Partnership in accordance with Section 12.2 or to issue any Partnership Interests, including, without limitation, amending the
Certificate, Exhibit A or any other provision of this Agreement. 
 (c) Without limiting the foregoing, the General Partner is
expressly authorized to cause the Partnership to issue Partnership Interests (or options to acquire Partnership Interests) for less than fair market value, so long as the General Partner concludes in good faith that such issuance is in the interest
of the Partnership and the Partners (for example, and not by way of limitation, the issuance of Partnership Units in connection with a Stock Option Plan providing for employee purchases of REIT Stock and corresponding Partnership Units at a discount
from fair market value or employee options that have an exercise price that is less than the fair market value of the REIT Stock and corresponding Partnership Units covered by the option, either at the time of issuance or at the time of exercise).

  

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	4.3	Issuance of Securities by the General Partner 

 (a) General. The General Partner shall not issue any debt securities, preferred stock, Common Stock, any other class of REIT Stock or rights, options, warrants or other securities convertible into or exchangeable for preferred
stock, Common Stock or any other class of REIT Stock (collectively, “Securities”), other than (1) as payment of the REIT Stock Amount in connection with a redemption of Partnership Units pursuant to Section 8.6,
(2) upon the conversion, exchange or exercise of other outstanding securities of the General Partner in accordance with the terms of such securities, or (3) to all holders of REIT Stock on a pro rata basis, unless the General
Partner shall: 
 (i) in the case of REIT Stock or other equity Securities other than Securities described in clause
(ii) below, (A) contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received upon the issuance of such Securities, and (B) receive from the Partnership in consideration for
such contributions Partnership Interests with the same terms and conditions, including dividend, dividend priority and liquidation preference, as are applicable to such Securities (including, for purposes of clarification, Partnership Units in the
case of any issuance of Common Stock by the General Partner); 
 (ii) in the case of options, warrants or other rights to
purchase REIT Stock, or other equity securities convertible into or exchangeable for REIT Stock, (A) contribute to the Partnership the proceeds of or consideration (including any property or other non-cash assets) received upon the issuance of
such equity Securities, and (B) receive from the Partnership in consideration for such contributions a number of options, warrants or other rights to purchase Partnership Interests equal to the number of such Securities issued by the General
Partner, with equivalent rights, preferences and limitations to the terms of such equity Securities; and 
 (iii) in the
case of debt securities, lend to the Partnership the proceeds of or consideration received for such Securities on the same terms and conditions, including interest rate and repayment schedule, as shall be applicable with respect to or incurred in
connection with the issuance of such Securities and the proceeds of, or consideration received from, any subsequent exercise, exchange or conversion thereof (if applicable). 
 (b) Splits. The Partnership shall (i) make a distribution in Partnership Units, (ii) subdivide its outstanding Partnership Units,
or (iii) combine its outstanding Partnership Units into a smaller number of Partnership Units, in the event the General Partner takes an analogous action with respect to the Common Stock. The intent of the previous sentence is that one
Partnership Unit remains the economic equivalent of one share of Common Stock without dilution. If the General Partner determines that it is necessary or desirable to make any filings under the Act or otherwise in order to reference the existence of
such action, the General Partner may cause such filings to be made, which filings might take the form of amendments to the Certificate; provided, however, that, unless specifically required by this Agreement or the Act after giving effect to the
terms of this Agreement, no approval or consent of any Partners shall be required in connection with the making of any such filing. 
  

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 (c) Treatment of Proceeds. If the proceeds actually received by the General Partner in
connection with an issuance of Securities by the General Partner are less than the gross proceeds of such offering, grant, award or issuance as a result of any underwriter’s discounts, commissions or other fees or expenses paid or incurred in
connection with such offering, grant, award or issuance, then the General Partner shall be deemed to have made a Capital Contribution to the Partnership in the amount of the gross proceeds of such offering, grant, award or issuance and the
Partnership shall be deemed simultaneously to have paid pursuant to Section 7.3(c) for the amount of such expenses. 
  

	4.4	Additional Funds 

 (a) The sums of money
required to finance the business and affairs of the Partnership shall be derived from the initial Capital Contributions made to the Partnership by the Partners as set forth in Section 4.1 and from funds generated from the operation and business
of the Partnership. 
 (b) In the event additional financing is needed from sources other than as set forth in Section 4.4(a) for
any reason, the General Partner may, in its sole and absolute discretion, in such amounts and at such times as it solely shall determine to be necessary or appropriate: 
 (i) cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in
accordance with Section 4.2; 
 (ii) make additional Capital Contributions to the Partnership (subject to the
provisions of Section 4.3(a)); 
 (iii) cause the Partnership to borrow money, enter into loan arrangements, issue
debt securities, obtain letters of credit or otherwise borrow money on a secured or unsecured basis; 
 (iv) make a loan
or loans to the Partnership (subject to Section 4.3(a)); or 
 (v) cause the Partnership to sell any assets or
properties directly or indirectly owned by the Partnership. 
  

	4.5	No Third-Party Beneficiary 

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

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	4.6	No Interest 

 No Partner shall be entitled to
interest on any Capital Contribution or on such Partner’s Capital Account. 
  

	4.7	No Preemptive Rights 

 Subject to any preemptive
rights that may be granted in connection with the issuance of Partnership Interests under Section 4.3(a), no Person shall have any preemptive or other similar right with respect to any: 
 (a) additional Capital Contributions or loans to the Partnership; or 
 (b) issuance or sale of any Partnership Units or other Partnership Interests. 
  

	4.8	Capital Accounts; Adjustments to Carrying Values 

 (a) Capital Accounts. The Partnership shall establish and maintain throughout the life of the Partnership for each Partner a separate “Capital Account” in accordance with Treasury Regulations Section 1.704-1(b).
Such Capital Account shall be increased by (i) the amount of all Capital Contributions made by such Partner to the Partnership pursuant to this Agreement and (ii) all Profits and other items of income and gain allocated to such Partner
pursuant to Section 6.2, and decreased by (1) the amount of cash or Agreed Value of all actual and deemed distributions of cash or property made to such Partner pursuant to this Agreement and (2) all Losses and other items of loss and
deduction allocated to such Partner pursuant to Section 6.2 of this Agreement. Any other Partnership item which is required or authorized under Treasury Regulation Section 1.704-1(b) to be reflected in Capital Accounts shall be so
reflected. 
 (b) Adjustments to Carrying Values. Consistent with the provisions of Treasury Regulations
Section 1.704-1(b)(2)(iv)(f), and as provided in this Section 4.8(b), the Carrying Values of all Partnership Assets shall be adjusted upward or downward to reflect any Book Gains or Book Losses attributable to such Partnership Asset, as of
the times of the adjustments provided in this Section 4.8(b), as if such Book Gain or Book Loss had been recognized on an actual sale of each such Partnership Asset and allocated pursuant to Section 6.1. Such adjustments shall be made as
of the following times: (i) as of the end of the calendar quarter immediately prior to the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital
Contribution; (ii) as of the end of the calendar quarter immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership;
(iii) upon the occurrence of a Listing Event or a Termination Event if the Advisor is entitled to a distribution under Section 5.1(d) or 5.1(e) as a result of such event, and (iv) at such other times as the General Partner may
determine so long as such adjustment is made under generally accepted industry accounting practices within the meaning of Treasury Regulations Section 1.704-1(b)(2)(iv)(f)(5). In accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv)(e), the Carrying Values of Partnership assets distributed in kind shall be adjusted upward or downward to reflect any Book Gain or Book Loss attributable to such Partnership Asset, as of the time any such asset is
distributed. If the Carrying Values of the Partnership Assets are adjusted as a result of a Listing Event, the total Carrying Value of all Partnership 

  

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Assets shall be deemed to equal the Market Value plus the total amount of liabilities of the Partnership as of the date of the Listing Event. If the Carrying
Values of the Partnership Assets are adjusted as a result of a Termination Event, the total Carrying Value of all Partnership Assets shall be deemed to equal the Appraised Value as of the Termination Date. 
 ARTICLE 5 
 DISTRIBUTIONS

  

	5.1	Distributions 

 (a) General. Subject to
the provisions of Sections 5.3, 5.4, 8.6(b), 11.6(d) and 13.2, the General Partner shall cause the Partnership to distribute to the Partners as of the applicable Partnership Record Date, at such times as the General Partner shall determine, amounts
of Available Operating Cash, Net Sales Proceeds and Net Capital Event Proceeds in the manner set forth in this Section 5.1. 
 (b) Available Operating Cash. Available Operating Cash shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of
the applicable Partnership Record Date. 
 (c) Net Sales Proceeds and Net Capital Event Proceeds. Subject to Section 13.2,
Net Sales Proceeds shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of the applicable Partnership Record Date until the
Unrecovered Contribution Account and 8% Return Account of the General Partner has been reduced to zero ($0). Thereafter, 10% of any Net Sales Proceeds shall be distributed to the Advisor (such distributions, the “Advisor Participation in Sales
Proceeds”), and 90% of such Net Sales Proceeds shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage Interests as of the applicable
Partnership Record Date. Any Net Capital Event Proceeds in excess Net Sales Proceeds of shall be distributed to the Partners as determined by the General Partner in its sole and absolute discretion in accordance with their respective Percentage
Interests as of the applicable Partnership Record Date. 
 (d) Distribution to Advisor Upon Listing. Upon a Listing Event, the
Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c). If the Advisor has not been terminated under the Advisory Agreement as of the Listing Date, the Advisor shall receive
a distribution, which shall be paid within five (5) Business Days of the determination of the Market Value, in an amount equal to 10% of the amount, if any, by which the Market Value exceeds the Unrecovered Contribution Account and the 8%
Return Account of the General Partner on the Listing Date. 
 (e) Distribution to Advisor Upon Termination. Upon a Termination
Event, the Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c). If a Listing Event has not occurred as of the date of a Termination Event, and the Advisor was not
terminated for Cause (as defined in the Advisory Agreement), then the Advisor shall 

  

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receive a distribution, which shall be paid within five (5) Business Days of the date of such Termination Event, in an amount equal to 10% of the
amount, if any, by which (i) the Appraised Value of all of the Partnership Assets as of the date of the Termination Event, less any indebtedness of the Partnership exceeds the Unrecovered Contribution Account and the 8% Return Account of the
General Partner as of the Date of the Termination Event. 
  

	5.2	REIT Status 

 The General Partner shall take such
action as it deems necessary or advisable to cause the Partnership to distribute sufficient amounts under this Article 5 to enable the General Partner to pay stockholder dividends that will enable the General Partner to (a) continue to satisfy
its obligations as a REIT under the Code and the Treasury Regulations and (b) avoid any Federal income or excise tax liability; provided, however, the General Partner shall not be bound to comply with this covenant to the extent such
distributions would violate applicable Delaware law. 
  

	5.3	Withholding 

 With respect to any withholding tax or
other similar tax liability or obligation to which the Partnership may be subject as a result of any act by or status of any Partner or to which the Partnership becomes subject with respect to any Partnership Interest, the Partnership shall have the
right to withhold amounts of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets distributable to such Partner or with respect to such Partnership Interests, to the extent of the amount of such withholding tax or other
similar tax liability or obligation pursuant to the provisions contained in Section 10.5. 
  

	5.4	Additional Partnership Interests 

 If the
Partnership issues Partnership Interests in accordance with Section 4.2 or 4.3, the distribution priorities set forth in Section 5.1 shall be amended, as necessary, to reflect any distribution priority of such Partnership Interests and
corresponding amendments shall be made to the provisions of Article 6. If a new or existing Partner acquires an additional Partnership Interest in exchange for a Capital Contribution on any date other than a Partnership Record Date, such Partner
shall not be entitled to any distributions with respect to such additional Partnership Interest until the first Partnership Record Date following the date of such issuance. 
 ARTICLE 6 
 ALLOCATIONS 
  

	6.1	Allocation of Profits and Net Losses 

 (a) General. Except as otherwise provided in this Article 6 and in Section 11.6(c), and after making any special allocations under Section 6.2, Profits and Losses for each Fiscal Year shall be allocated among the
Partners in accordance with their respective Percentage Interests as of the end of such Fiscal Year, subject to any rights of holders of Partnership Interests other than Partnership Units. 
  

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 (b) Adjustment. If the amount of Losses for any Fiscal Year that otherwise would be allocated
to a Partner under Section 6.1(a) or this Section 6.1(b) would cause or increase an Adjusted Capital Account Deficit of such Partner as of the last day of such Fiscal Year (after all other allocations have been made pursuant to this
Article 6), then such Partner shall be allocated that amount of Losses which does not cause or increase such Adjusted Capital Account Deficit, and the remainder of such Losses that would have been allocated to such Partner shall be allocated to the
other Partners in proportion to their Percentage Interests. 
  

	6.2	Special Allocations 

 Notwithstanding any provisions
of Section 6.1, the following special allocations shall be made in the following order of priority: 
 (a) Minimum Gain
Chargeback (Nonrecourse Liabilities). Except as otherwise provided in Section 1.704-2(f) of the Treasury Regulations, if there is a net decrease in Partnership Minimum Gain for any Fiscal Year, each Partner shall be specially allocated
items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain to the extent required by Treasury Regulations
Section 1.704-2(f). The items to be so allocated shall be determined in accordance with Sections 1.704-2(f) and (j)(2) of the Treasury Regulations. This subparagraph is intended to comply with the minimum gain chargeback requirement in said
section of the Treasury Regulations and shall be interpreted consistently therewith. Allocations pursuant to this subparagraph shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant hereto.

 (b) Partner Minimum Gain Chargeback. Except as otherwise provided in Section 1.704-2(i)(4) of the Treasury Regulations,
if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Fiscal Year, each Partner who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance
with Section 1.704-2(i)(5) of the Treasury Regulations, shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to that Partner’s share of the net decrease in
the Partner Minimum Gain attributable to such Partner Nonrecourse Debt to the extent and in the manner required by Section 1.704-2(i) of the Treasury Regulations. The items to be so allocated shall be determined in accordance with Sections
1.704-2(i)(4) and (j)(2) of the Treasury Regulations. This subparagraph is intended to comply with the minimum gain chargeback requirement with respect to Partner Nonrecourse Debt contained in said section of the Treasury Regulations and shall be
interpreted consistently therewith. Allocations pursuant to this subparagraph shall be made in proportion to the respective amounts to be allocated to each Partner pursuant hereto. 
 (c) Qualified Income Offset. In the event a Partner unexpectedly receives any adjustment, allocation or distribution described in Treasury
Regulation Sections 1.704 1(b)(2)(ii)(d)(4), (5) and (6) that causes or increases an Adjusted Capital Account Deficit, gross items of income and gain shall be specially allocated to such Partner so as to eliminate such Adjusted Capital
Account Deficit as quickly as possible. This subparagraph is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and shall be interpreted consistently therewith.

  

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 (d) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be allocated to
the Partners in accordance with their respective Percentage Interests. 
 (e) Partner Nonrecourse Deductions. Partner Nonrecourse
Deductions for any Fiscal Year with respect to a Partner Nonrecourse Debt shall be specially allocated to the Partners that bear the economic risk of loss for such Partner Nonrecourse Debt (as determined under Sections 1.704-2(b)(4) and
1.704-2(i)(1) of the Treasury Regulations). 
 (f) Allocations of Book Gain to Advisor. 
 (i) If the Partnership distributes Net Capital Event Proceeds to the Advisor pursuant to Section 5.1(c) during any Fiscal year,
then any Book Gain realized by the Partnership for such Fiscal Year and, if necessary, for subsequent Fiscal Years, shall be allocated to the Advisor until the cumulative Book Gain allocated to the Advisor under this Section 6.2(f)(i) is equal
to the cumulative Net Capital Event Proceeds distributed to the Advisor pursuant to Section 5.1(c). 
 (ii) If a
Listing Event or Termination Event occurs and the Advisor is entitled to a distribution under Section 5.1(d) or 5.1(e), then any Book Gain attributable to the adjustment to Carrying Values required under Section 4.8(b) shall be allocated
to the Advisor until the cumulative Book Gain allocated to the Advisor under this Section 6.2(f)(ii) is equal to the amount to which the Advisor is entitled under Section 5.1(d) or 5.1(e), as the case may be. If there is insufficient Book
Gain attributable to such adjustment to Carrying Values to allocate the full amount to be allocated to the Advisor under the immediately preceding sentence, then any subsequent Book Gain realized by the Partnership shall be allocated to the Advisor
in an amount equal to such shortfall. 
 (g) Curative Allocations. The allocations set forth in Section 6.1(b) and Sections
6.2(a) through (e) hereof (the “Regulatory Allocations”) are intended to comply with certain requirements of the Treasury Regulations. It is the intent of the Partners that, to the extent possible all Regulatory Allocations
that are made be offset either with other Regulatory Allocations or with special allocations pursuant to this Section 6.2(g). Therefore, notwithstanding any other provision of this Article 6 (other than the Regulatory Allocations), the General
Partner shall make such offsetting special allocations in whatever manner it determines appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Partner would have had if the Regulatory Allocations were not part of the Agreement and all Partnership items were allocated pursuant to Sections 6.1(a) and 6.2(f). In exercising its discretion under this Section 6.2(g),
the General Partner shall take into account future Regulatory Allocations under Sections 6.2(a) and 6.2(b) that, although not yet made, are likely to offset other Regulatory Allocations previously made under Sections 6.2(d) and 6.2(e). 

 

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 (h) Changes in Interest. If during any Fiscal Year there is a change in any Partner’s
Percentage Interest, then for purposes of determining the Profits, Losses, or any other items allocable to such Partner for such Fiscal Year, Profits, Losses, and any such other items shall be determined on a daily, monthly, or other basis, as
determined by the General Partner using any permissible method under Code Section 706 and the Treasury Regulations thereunder. 
  

	6.3	Tax Allocations 

 (a) Except as otherwise
provided in this Section 6.3, items of Partnership income, gain, loss and deduction shall be determined in accordance with Code Section 703, and the Partners’ distributive shares of such items for purposes of Code Section 702
shall be determined according to their respective shares of Profits or Losses to which such items relate. 
 (b) Items of Partnership
taxable income, gain, loss and deduction with respect to any Contributed Property contributed by a Partner shall be allocated among the Partners in accordance with Code Section 704(c) so as to take account of any variation between the adjusted
basis of such property to the Partnership for Federal income tax purposes and its Carrying Value. Such allocations shall be made using any method chosen by the General Partner that is permitted by applicable Treasury Regulations. 
 (c) If the Carrying Value of any asset of the Partnership is adjusted pursuant to Section 4.8(b), subsequent allocations of items of income,
gain, loss and deduction with respect to such property shall take account of any variation between the adjusted basis of such asset for Federal income tax purposes and its Carrying Value. Such allocations shall be made using any method chosen by the
General Partner that is permitted by applicable Treasury Regulations, as determined by the General Partner. 
 (d) Allocations pursuant
to this Section 6.3 are solely for purposes of Federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Profits, Losses, distributions or other
Partnership items pursuant to any provision of this Agreement. 
  

	6.4	Revisions to Allocations to Reflect Issuance of Partnership Interests 

 If the Partnership issues Partnership Interests to the General Partner or any additional Limited Partner pursuant to Article 4, the General Partner shall make any such revisions to this Article 6 as it deems necessary
to reflect the terms of the issuance of such Partnership Interests, including making preferential allocations to classes of Partnership Interests that are entitled thereto. Such revisions shall not require the consent or approval of any other
Partner. 
  

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 ARTICLE 7 
 MANAGEMENT AND OPERATIONS OF BUSINESS 
  

	7.1	Management 

 (a) Management By the General
Partner. Except as otherwise expressly provided in this Agreement, full, complete and exclusive discretion to manage and control the business and affairs of the Partnership are and shall be vested in the General Partner, and no Limited Partner
other than the Advisor shall have any right to participate in or exercise control or management power over the business and affairs of the Partnership. The General Partner may not be removed by the Limited Partners with or without cause. 

(b) Power and Authority of the General Partner. In addition to the powers now or hereafter granted a general partner of a limited
partnership under applicable law or which are granted to the General Partner under any other provision of this Agreement, the General Partner shall have full power and authority to do all things deemed necessary or desirable by it to conduct the
business of the Partnership, to exercise all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including, without limitation: 
 (i) (A) the making of any expenditures, the lending or borrowing of money (including, without limitation, making prepayments on loans
and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as will permit the General Partner (so long as the General Partner qualifies as a REIT) to (1) avoid the payment of any Federal income or excise
tax (including any excise tax pursuant to Section 4981 of the Code) and (2) make distributions to its stockholders in amounts sufficient to permit the General Partner to maintain REIT status), (B) the assumption or guarantee of, or
other contracting for, indebtedness and other liabilities, (C) the issuance of any evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other lien or encumbrance on the Partnership’s assets), and
(D) the incurring of any obligations it deems necessary for the conduct of the activities of the Partnership, including the payment of all expenses associated with the General Partner; 
 (ii) the making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies
having jurisdiction over the business or assets of the Partnership or the General Partner; 
 (iii) the acquisition,
disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any assets, including Investments, of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available in
connection with any assets at any time held by the Partnership) or the merger or other combination of the Partnership with or into another entity on such terms as the General Partner deems proper; 
 (iv) the use of the assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with the terms
of this Agreement and on any terms the General Partner sees fit, including, without limitation, 
 (A) the financing of
the conduct of the operations of the General Partner, the Partnership or any of the Partnership’s Subsidiaries, 
  

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 (B) the lending of funds to other Persons (including, without limitation, the
Subsidiaries of the Partnership and/or the General Partner) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and 
 (C) the making of capital contributions to the Partnership’s Subsidiaries; 
 (v) the development, expansion, construction, management, operation, leasing, repair, alteration, demolition or improvement of any
real property in which the Partnership or any Subsidiary of the Partnership owns a direct or indirect interest; 
 (vi) the negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the
General Partner’s powers under this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other professional advisors and other agents and the payment of their expenses and compensation out of
the Partnership’s assets; 
 (vii) the distribution of Partnership cash or other Partnership assets in accordance
with this Agreement; 
 (viii) the holding, management, investment and reinvestment of cash and other assets of the
Partnership; 
 (ix) the collection and receipt of revenues and income of the Partnership; 
 (x) the establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership
(including, without limitation, employees having titles such as “president,” “vice president,” “secretary” and “treasurer” of the Partnership), and agents, outside attorneys, accountants, consultants and
contractors of the Partnership, and the determination of their compensation and other terms of employment or engagement; 
 (xi) the formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership or third parties) in, and the contribution of property to, any other Entities that the General
Partner deems desirable (including, without limitation, the acquisition of interests in, and the contributions of funds or property to, or making of loans to, Subsidiaries of the Partnership and any other Person from time to time), or the incurrence
of indebtedness on behalf of such Persons or the guarantee of the obligations of such Persons; provided that, as long as the General Partner has determined to elect to qualify as a REIT or to continue to qualify as a REIT, the Partnership may not
engage in any such formation, acquisition or contribution that would cause the General Partner to fail to qualify as a REIT; 
  

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 (xii) the control of any matters affecting the rights and obligations of the
Partnership, including: 
 (A) the settlement, compromise, submission to arbitration or any other form of dispute
resolution, or abandonment of, any claim, cause of action, liability, debt or damages, due or owing to or from the Partnership, 
 (B) the commencement or defense of suits, legal proceedings, administrative proceedings, arbitration or other forms of dispute resolution, and 
 (C) the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other forms
of dispute resolution, the incurring of legal expenses, and the indemnification of any Person against liabilities and contingencies to the extent permitted by law; 
 (xiii) the undertaking of any action in connection with the Partnership’s direct or indirect investment in its Subsidiaries or
any other Person (including, without limitation, the contribution or loan of funds by the Partnership to such Persons); 
 (xiv) the determination of the fair market value of any Partnership Assets distributed in kind using such reasonable method of valuation as the General Partner, in its sole discretion, may adopt; 
 (xv) the exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any
right, including the right to vote, appurtenant to any asset or investment held by the Partnership; 
 (xvi) the exercise
of any of the powers of the General Partner enumerated in this Agreement or the undertaking of any action on behalf of or in connection with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect
interest, or jointly with any such Subsidiary or other Person; 
 (xvii) the making, execution and delivery of any and
all deeds, leases, notes, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary or appropriate, in the judgment of the
General Partner, for the accomplishment of any of the foregoing; 
 (xviii) the issuance of additional Partnership
Interests in connection with Capital Contributions by Additional Limited Partners and additional Capital Contributions by Partners pursuant to Article 4 hereof; 
 (xix) the opening of bank accounts on behalf of, and in the name of, the Partnership and its Subsidiaries; and 
 (xx) the amendment and restatement of Exhibit A to reflect accurately at all times the Capital Contributions of, Partnership
Units held by and Percentage Interests of the Partners as the same are adjusted from time to time to the extent necessary to reflect any Capital Contributions, redemptions, issuance of Partnership Units, admission of any Additional Limited Partner
or any Substituted Limited Partner or otherwise, which amendment and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment of this Agreement, as long as the matter or event being reflected in
Exhibit A otherwise is authorized by this Agreement. 
  

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 (c) Advisor. The General Partner has engaged the Advisor to serve as the advisor to the
Partnership and the General Partner pursuant to the terms and conditions of the Advisory Agreement. In consideration for the services to be provided to the Partnership and the General Partner, the Advisor will receive the fees described in the
Advisory Agreement. In addition, the Advisor is entitled to receive distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c) hereof, and distributions upon a Listing Event under Section 5.1(d) hereof or upon a
Termination Event under Section 5.1(e) hereof. 
 (d) Insurance. At all times from and after the date hereof, the General
Partner may cause the Partnership to obtain and maintain: 
 (i) casualty, liability and other insurance on the
Investments of the Partnership; 
 (ii) liability insurance for the Indemnitees hereunder; and 
 (iii) such other insurance as the General Partner, in its sole and absolute discretion, determines to be appropriate and reasonable.

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

  

	7.2	Certificate of Limited Partnership 

 The General
Partner has previously filed the Certificate with the Secretary of State of Delaware as required by the Act. The General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents as may be reasonable and
necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and any other state, or the District of
Columbia, in which the Partnership may elect to do business or own property. To the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and
restatements of the Certificate and do all of the things to maintain the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) under the laws of the State of Delaware and each other state, or
the District of Columbia, in which the Partnership may elect to do business or own property. Subject to the terms of Section 8.5(a)(iv) hereof, the General Partner shall not be required, before or after filing, to deliver or mail a copy of the
Certificate or any amendment thereto to any Limited Partner. 
  

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	7.3	Reimbursement of the General Partner 

 (a) No Compensation. Except as provided in this Section 7.3 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may be entitled), the
General Partner shall not be compensated for its services as general partner of the Partnership. 
 (b) Responsibility for
Partnership Expenses. The Partnership shall be responsible for and shall pay all expenses relating to the Partnership’s organization and the ownership and operation of the Partnership Assets. The General Partner shall be reimbursed on a
monthly basis, or such other basis as it may determine in its sole and absolute discretion, for all expenses that it incurs on behalf of the Partnership relating to the ownership and operation of the Partnership Assets, or for the benefit of the
Partnership; provided, that the amount of any such reimbursement shall be reduced by any interest earned by the General Partner with respect to bank accounts or other instruments or accounts held by it on behalf of the Partnership. Such
reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to Section 7.6 hereof. 
 (c) Responsibility for General Partner Expenses. The General Partner shall also be reimbursed for (i) all expenses related to the operations of the General Partner and to the management and administration of any
Subsidiaries of the General Partner or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees and any and all salaries, compensation and expenses of officers and employees of the General Partner, and
(ii) all expenses the General Partner incurs relating to the organization and/or reorganization of the Partnership and the General Partner, the public offering of REIT Stock by the General Partner, and any other offering, grant, award or
issuance of REIT Stock or additional Partnership Interests pursuant to Section 4.2 or 4.3, including all expenses associated with compliance by the General Partner and the Initial Limited Partner with laws, rules and regulations promulgated by
any regulatory body. 
 (d) Business of the General Partner. The Limited Partners acknowledge that the sole business of the
General Partner is the ownership of direct or indirect interests in, and the direct or indirect operation of, the Partnership, and that all of the expenses of the General Partner are incurred for the benefit of the Partnership. 
 (e) Characterization of Reimbursements. All payments and reimbursements hereunder shall be characterized for Federal income tax purposes as
expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner. 
  

	7.4	Acquisition of Limited Partner Interests by the General Partner 

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

  

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	7.5	Transactions with Affiliates 

 (a) Transactions with Subsidiaries. The Partnership may lend or contribute funds or other assets to its Subsidiaries or other Persons in which it has an equity investment and such Subsidiaries and Persons may borrow funds from
the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. 
 (b) Certain Transactions with the Advisor and its Affiliates. Notwithstanding anything to the contrary in this Agreement, the General Partner
shall not cause the Partnership, directly or indirectly, to Transfer any property to, purchase any property from, loan any money to, borrow any money from or enter into any other transaction with the Advisor or any of its Affiliates, or any director
of the General Partner, except in accordance with the procedures set forth in Articles X and XI of the Articles of Incorporation for transactions between the General Partner and the Advisor or its Affiliates. 
 (c) Benefit Plans Sponsored by the Partnership. The General Partner, in its sole and absolute discretion and without the approval of the
Limited Partners, may propose and adopt, on behalf of the Partnership, employee benefit plans, option or other equity incentive plans, and similar plans funded by the Partnership for the benefit of employees of the Partnership, the General Partner,
any Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed, directly or indirectly, for the benefit of the Partnership, the General Partner, any Subsidiaries of the Partnership or any of their respective
Affiliates. 
  

	7.6	Indemnification 

 (a) General. Subject
to the limitations of Section 7.6(b), to the maximum extent permitted under the Act in effect from time to time and subject to the limitations of Section II.G. of the NASAA Guidelines, the Partnership shall indemnify each Indemnitee from and
against any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, reasonable attorneys’ fees and other legal fees and expenses), judgments, fines, settlements, and other amounts arising from
any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”), that relate to the operations of the Partnership, the General Partner or any of the
Partnership’s Subsidiaries in which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise; provided, however, that in no event shall this Section 7.6(a) enlarge the indemnification permitted below under
Section 7.6(b). 
 (b) Limitation. Notwithstanding any provision hereof to the contrary: 
 (i) the Partnership will not indemnify any Indemnitee unless: 
 (A) the Indemnitee has determined in good faith that the course of conduct which caused the loss, liability or expenses was in the
best interests of the Partnership; 
 (B) the Indemnitee was acting on behalf of the Partnership or performing services
for the Partnership; 
  

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 (C) Such Claim was not the result of: 
 (1) with respect to the General Partner, the negligence or misconduct of the General Partner; 
 (2) with respect to any Limited Partner, the negligence or misconduct of the Limited Partner; 
 (3) with respect to (A) the directors, officers and employees of the General Partner, (B) the Advisor and (C) the
members, managers and employees of the Advisor, the negligence or misconduct of such Person; or 
 (4) with respect to
the Independent Directors (as defined in the Articles of Incorporation), the gross negligence or willful misconduct of such Independent Director; and 
 (D) any indemnification or agreement to hold harmless may be paid only out of the Net Assets of the Partnership, and neither the General Partner nor any Limited Partner shall have any obligation to contribute to
the capital of the Partnership, or otherwise provide funds, to enable the Partnership to fund its obligations under this Section 7.6; 
 (ii) notwithstanding anything to the contrary in Section 7.6(b)(ii), the Partnership will not indemnify any Indemnitee for losses, liabilities or expenses arising from or out of an alleged violation of
federal or state securities laws unless: 
 (A) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to the particular Indemnitee; 
 (B) such claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the particular Indemnitee; or 
 (C) a court of
competent jurisdiction approves a settlement of the claims against the particular Indemnitee and finds that indemnification of the settlement and related costs should be made, and the court considering the matter has been advised of the position of
the Securities Exchange Commission and the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws. 
 (c) Contractual Obligations. Without limitation, the indemnity set forth in this Section 7.6 shall extend to any liability of any
Indemnitee pursuant to a loan guaranty (except a guaranty by a Limited Partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan guaranty), contractual obligation for any indebtedness or other obligation or
otherwise for any indebtedness of the Partnership or any Subsidiary of the Partnership (including, without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General
Partner is hereby authorized and empowered, on behalf of the Partnership, to enter into one or more indemnification agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially having liability
for any such indebtedness. 
  

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 (d) Advancement of Expenses. Reasonable expenses incurred by an Indemnitee who is a party to
a proceeding shall be paid or reimbursed by the Partnership in advance of the final disposition of any and all Claims made or threatened against an Indemnitee only if all of the following conditions are satisfied: (a) the Claim relates to acts
or omissions with respect to the performance of duties or services on behalf of the Partnership (b) either the Claim was initiated by a third party who is not a stockholder of the General Partner, or (ii) if the Proceeding was initiated by
a Stockholder, the initiating Stockholder was acting in his or her capacity as such and the advancement was approved by a court of competent jurisdiction, and (c) the Indemnitee provides the Partnership with a written undertaking to repay the
amount paid or reimbursed by the Partnership, together with the applicable legal rate of interest thereon, if it is ultimately determined that the Indemnitee did not comply with the requisite standard of conduct and is not entitled to
indemnification. 
 (e) No Exclusivity. The indemnification provided by this Section 7.6 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity unless
otherwise provided in a written agreement pursuant to which such Indemnities are indemnified. 
 (f) Insurance. The Partnership
may purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with
the Partnership’s activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement. 
 (g) Benefit Plan Fiduciary. For purposes of this Section 7.6, the Partnership shall be deemed to have requested an Indemnitee to serve
as fiduciary of an employee benefit plan whenever the performance by such Indemnitee of its duties to the Partnership also imposes duties on, or otherwise involves services by, such Indemnitee to the plan or participants or beneficiaries of the
plan. Excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 7.6 and actions taken or omitted by the Indemnitee with respect to an
employee benefit plan in the performance of its duties for a purpose reasonably believed by such Indemnitee to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best
interests of the Partnership. 
 (h) No Personal Liability for Partners. In no event may an Indemnitee subject any of the
Partners to personal liability by reason of the indemnification provisions set forth in this Agreement. 
 (i) Interested
Transactions. An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.6 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was
otherwise permitted by the terms of this Agreement. 
  

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 (j) Benefit. The provisions of this Section 7.6 are for the benefit of the Indemnitees,
their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. 
 (k) Amendment of this Section 7.6. Any amendment, modification or repeal of this Section 7.6 or any provision hereof shall be prospective only and shall not in any way affect the Partnership’s liability to any
Indemnitee under this Section 7.6, as in effect immediately prior to such amendment, modification, or repeal with respect to Claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such Claims may arise or be asserted. 
 (l) Indemnification Payments Not Distributions. If and to the
extent any payments to the General Partner or the Initial Limited Partner in its capacity as the Advisor pursuant to this Section 7.6 constitute gross income to the General Partner or the Initial Limited Partner (as opposed to the repayment of
advances made on behalf of the Partnership), such amounts shall constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership and all Partners, and shall not be
treated as distributions for purposes of computing the Partners’ Capital Accounts. 
 (m) Exception to Indemnification.
Notwithstanding anything to the contrary in this Agreement, the General Partner shall not be entitled to indemnification hereunder for any Claim for which the General Partner is obligated to indemnify the Partnership under any other agreement
between the General Partner and the Partnership. 
  

	7.7	Liability of the General Partner 

 (a) General. To the maximum extent permitted under the Act and the subject to the limitations of Section II.G. of the NASAA Guidelines in effect from time to time, neither the General Partner nor any director, officer,
shareholder, partner, member or employee, trustee, representative or agent of the General Partner (including the Advisor and its Affiliates) shall be liable to the Partnership or to any Partner for (i) any act or omission performed or failed to
be performed by it, or for any losses, claims, costs, damages, or liabilities arising from any such act or omission, except to the extent such loss, claim, cost damage or liability results from such Person’s negligence or misconduct
(ii) any tax liability imposed on the Partnership or (iii) any losses due to the misconduct, negligence, dishonesty or bad faith of any agents of the Partnership. Notwithstanding anything to the contrary in this Section 7.7(a), this
limitation on liability applies only to the extent that the particular officer or director has satisfied the requirements of Sections 7.6(b)(i) and (ii). 
 (b) No Obligation to Consider Separate Interests of Limited Partners. The Limited Partners expressly acknowledge that (i) the General Partner (and the Advisor, in advising the General Partner) is
acting on behalf of the Partnership and the stockholders of the General Partner, collectively, (ii) the General Partner (and the Advisor, in advising the General Partner), subject to the provisions of 

  

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Section 7.1(f) hereof, is under no obligation to consider the separate interest of the Limited Partners (including, without limitation, the tax
consequences to Limited Partners or Assignees) in deciding whether to cause the Partnership to take (or decline to take) any actions, and (iii) neither the General Partner nor the Advisor shall be liable for monetary damages for losses
sustained, liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, unless the General Partner or the Advisor, as the case may be, acted in bad faith and the act or omission was material to the matter
giving rise to the loss, liability or benefit not derived. 
 (c) Conflict. The Limited Partners expressly acknowledge that in
the event of any conflict in the fiduciary duties owed by the General Partner to its stockholders and by the General Partner, in its capacity as a general partner of the Partnership, to the Limited Partners, the General Partner may act in the best
interests of the General Partner’s stockholders without violating its fiduciary duties to the Limited Partners, and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not
derived by the Limited Partners in connection with any such violation. 
 (d) Amendment of this Section 7.7. Any amendment,
modification or repeal of this Section 7.7 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s and its officers’ and directors’ liability to the Partnership
and the Limited Partners under this Section 7.7 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when such claims may arise or be asserted. 
  

	7.8	Other Matters Concerning the General Partner 

 (a) Reliance on Documents. The General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
bond, debenture, or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties. 
 (b) Reliance on Advisors. The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, architects, engineers, environmental consultants and other
consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the opinion of such Persons as to matters which such General Partner reasonably believes to be within such Person’s professional or expert
competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion. 
 (c) Action Through Agents. The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers, agents, including the Advisor, and duly appointed
attorneys-in-fact. Each such officer, agent or attorney-in-fact shall, to the extent granted by the General Partner in writing, have full power and authority to do and perform each and every act and duty which is permitted or required to be done by
the General Partner hereunder. 
  

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

	7.9	Title to Partnership Assets 

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

	7.10	Reliance by Third Parties 

 (a) Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General Partner has full power and authority, without the consent or approval of any other Partner or Person, to encumber, sell
or otherwise use in any manner any and all Partnership Assets and to enter into any contracts on behalf of the Partnership, and take any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner
as if the General Partner were the Partnership’s sole party in interest, both legally and beneficially. 
 (b) Each Limited Partner
hereby waives any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. 
 (c) In no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that the terms of this Agreement
have been complied with or to inquire into the necessity or expediency of any act or action of the General Partner or its representatives. 
 (d) Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming
thereunder that: 
 (i) at the time of the execution and delivery of such certificate, document or instrument, this
Agreement was in full force and effect; 
  

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 (ii) the Person executing and delivering such certificate, document or instrument
was duly authorized and empowered to do so for and on behalf of the Partnership; and 
 (iii) such certificate, document
or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 
 ARTICLE 8 
 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS 
  

	8.1	Limitation of Liability 

 The Limited Partners shall
have no liability under this Agreement, except as expressly provided in this Agreement, including Section 10.5 hereof, or under the Act. 
  

	8.2	No Right to Participate in the Management of Business 

 No Limited Partner shall take part in the management or control of the Partnership’s investment or other activities, transact any business in the Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership. Except as expressly provided herein, no Limited Partner shall have the right to vote for the election, removal or replacement of the General Partner. The exercise by any Limited Partner of any right conferred herein shall not be
construed to constitute participation by such Limited Partner in the control of the business of the Partnership so as to make such Limited Partner liable as a general partner for the debts and obligations of the Partnership for purposes of the Act,
laws of non-U.S. jurisdictions or otherwise. 
  

	8.3	Outside Activities of Limited Partners 

 Subject to
any agreements entered into by a Limited Partner or its Affiliates, or any Assignee, with the Partnership or any of its Subsidiaries, any Limited Partner or Assignee and any officer, director, employee, agent, trustee, Affiliate or shareholder or
other equity owner of any Limited Partner or Assignee shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities that are in
direct competition with the Partnership or that are enhanced by the activities of the Partnership. Neither the Partnership nor any of the other Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited
Partner or Assignee. None of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship established hereby in any business ventures of any other Person and such Person shall have no
obligation pursuant to this Agreement to offer any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character which, if presented to the Partnership, any
Limited Partner or such other Person, could be taken by such Person. 
  

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	8.4	Return of Capital 

 No Limited Partner shall be
entitled to the withdrawal or return of its Capital Contribution, except (a) to the extent of such Limited Partner’s right of redemption set forth in Section 8.6, and (b) to the that extent the General Partner (or the Liquidation
Trustee) determines to make distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. Except as otherwise expressly provided in this Agreement, no Limited Partner or Assignee shall have priority over
any other Limited Partner or Assignee, either as to the return of Capital Contributions or as to distributions or allocations of Profits or Losses. 
  

	8.5	Rights of Limited Partners Relating to the Partnership 

 (a) General. In addition to the other rights provided by this Agreement and any rights granted to limited partners of a limited partnership under the Act that such limited partners are not permitted to waive under the Act, and
except as limited by Section 8.5(b) hereof, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a limited partner in the Partnership, upon written demand with a statement of the
purpose of such demand and at such Limited Partner’s own expense (including such reasonable copying and administrative charges as the General Partner may establish from time to time): 
 (i) to obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by the General
Partner pursuant to the Securities Exchange Act of 1934; 
 (ii) to obtain a copy of the Partnership’s Federal,
state and local income tax returns for each Fiscal Year; 
 (iii) to obtain a current list of the name and last known
business, residence or mailing address of each Partner; and 
 (iv) to obtain a copy of this Agreement and the
Certificate and all amendments thereto, together with executed copies of all powers of attorney pursuant to which this Agreement, the Certificate and all amendments thereto have been executed. 
 Each Limited Partner hereby waives any and all rights that such Limited Partner may have under the Act that the Act permits limited partners to waive, except any such
right that is granted expressly to such Limited Partner under this Agreement. 
 (b) Confidentiality. Notwithstanding any other
provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information that:

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

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

	8.6	Redemption Right 

 (a) Redemption Right.
Subject to the provisions of this Section 8.6, at any time on or after the first anniversary date of the issuance of a Partnership Unit to a Partner, such Partner shall have the right (the “Redemption Right”) to require the
Partnership to redeem on a Specified Redemption Date all or a portion of the Partnership Units held by such Partner, at a redemption price equal to and in the form of the Redemption Amount. The Redemption Right shall be exercised pursuant to a
Notice of Redemption Request delivered to the General Partner by the Partner who is exercising the Redemption Right (the “Redeeming Partner”). 
 (b) Distributions and Allocations. 
 (i) Subject to Section 8.6(c), the
Redeeming Partner shall have no right to receive any distributions that are paid after the Specified Redemption Date with respect to any Partnership Units redeemed pursuant to this Section 8.6. 
 (ii) If any Partnership Interest is redeemed (other than pursuant to Section 8.6(c)) on any day other than the first day of a
Fiscal Year, then Profit, Losses, each item thereof and all other items attributable to such Partnership Interest for such Fiscal Year shall be divided and allocated to the Redeeming Partner by taking into account the Redeeming Partner’s
ownership of such Partnership Interest during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a
daily, weekly or monthly proration period, in which event Profits, Losses, each item thereof and all other items attributable to such redeemed Partnership Interest for such Fiscal Year shall be prorated based upon the applicable method selected by
the General Partner). 
 (c) General Partner Assumption of Obligation. Notwithstanding the provisions of Section 8.6(a), the
General Partner may, in its sole and absolute discretion (subject to the limitations on ownership and transfer of shares of REIT Stock in the Articles of Incorporation), assume directly the obligation to satisfy a Redemption Right and satisfy such
Redemption Right by paying to the Redeeming Partner the Redemption Amount on the Specified Redemption Date, whereupon the General Partner shall acquire the Partnership Units offered for redemption by the Redeeming Partner and shall be treated for
all purposes of this Agreement as the owner of such Partnership Units. In the event that the General Partner shall exercise this right to satisfy the Redemption Right in the manner described in the preceding sentence and shall fully perform its
obligation to pay the Redemption Amount on the Specified Redemption Date, the Partnership shall have no obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner’s exercise of the Redemption Right, and each of
the Redeeming Partner, the Partnership and the General 

  

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Partner shall treat the transaction between the General Partner and the Redeeming Partner as a sale of the Redeeming Partner’s Partnership Units to the
General Partner for Federal income tax purposes. Distributions and allocations with respect to Partnership Units acquired by the General Partner pursuant to this Section 8.6(c) shall be made in accordance with Sections 11.6(c) and 11.6(d).

 (d) Fractional Shares. If the General Partner elects, either on its own behalf or on behalf of the Partnership, to satisfy the
Redemption Right by paying the REIT Stock Amount, and the REIT Stock Amount is not equal to a whole number of shares of REIT Stock, the Redeeming Partner shall be paid (i) that number of shares of REIT Stock which equals the nearest whole
number less than the REIT Stock Amount, plus (ii) (A) an amount of cash equal to the Value of one share of REIT Stock on the applicable Valuation Date, multiplied by (B) the REIT Stock Amount minus the whole number of shares of REIT
Stock pursuant to clause (i) of this Section 8.6(d). 
 (e) Execution of Documents. Each Redeeming Partner agrees to
execute such documents as the General Partner may reasonably require in connection with (i) the exercise and satisfaction of the Redemption Right, (ii) any assumption by the General Partner pursuant to Section 8.6(c), and
(iii) any issuance of REIT Stock in connection with the Partnership or the General Partner paying the Redemption Amount to the Redeeming Partner. 
 (f) Exceptions to Redemption Right. Notwithstanding the provisions of Section 8.6(a), unless the General Partner elects for payment of the Redemption Amount by the Partnership to be the Cash Amount, a
Partner shall not be entitled to exercise the Redemption Right if the delivery of REIT Stock to such Partner on the Specified Redemption Date would (i) be prohibited under the Articles of Incorporation or the bylaws of the General Partner,
(ii) adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, (iii) constitute or be likely
to constitute a violation of any applicable federal or state securities laws or regulations, or (iv) be prohibited under Section 11.6(f) of this Agreement (in each case regardless of whether the General Partner would in fact assume and
satisfy the Redemption Right). 
 (g) Exercise of the Redemption Right by the General Partner. The receipt of a notice of
redemption with respect to shares of REIT Stock held by stockholders of the General Partner (a “REIT Notice”) shall be deemed to be a Notice of Redemption Request given by the General Partner to the Partnership and an exercise of
the Redemption Right with respect to a number of Partnership Units equal to the number of shares of REIT Stock identified in the REIT Notice. With respect to any Redemption Right exercised by the General Partner pursuant to this Section 8.6(g),
the General Partner will elect for payment of the Redemption Amount by the Partnership to the General Partner to be the Cash Amount. 
 (h) Assignees. The Assignee of any Limited Partner may exercise the rights of such Limited Partner pursuant to this Section 8.6 with respect to any Partnership Units Transferred by such Limited Partner to such Assignee, and
such Limited Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such Assignee. In connection with any exercise of such rights by such Assignee on behalf of such Limited Partner,
the Redemption Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner. 
  

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 (i) No Liens on Partnership Units Delivered for Redemption. Each Partner covenants and agrees
that all Partnership Units delivered for redemption pursuant to this Section 8.6 shall be delivered to the Partnership or the General Partner, as the case may be, free and clear of all Liens. Notwithstanding anything contained herein to the
contrary, neither the General Partner nor the Partnership shall be under any obligation to acquire Partnership Units which are or may be subject to any Liens. Each Partner further agrees that, if any state or local property transfer tax is payable
as a result of the Transfer of its Partnership Units to the Partnership or the General Partner pursuant to this Section 8.6, such Partner shall assume and pay such transfer tax. 
 (j) Cancellation of Units; Amendments to Exhibit A. Upon the redemption of Partnership Units pursuant to this Section 8.6, (i) all
such redeemed Partnership Units (other than Partnership Units redeemed pursuant to Section 8.6(c)) shall be cancelled, and (ii) the General Partner shall amend Exhibit A to reflect the new Percentage Interests of the Partners and to
(A) either adjust the number of Partnership Units and the Percentage Interest of the Redeeming Partner or eliminate the Redeeming Partner from Exhibit A, as applicable, and (B) in the event that the General Partner assumes the
obligation to satisfy a Redemption Right pursuant to Section 8.6(c), adjust the number of Partnership Units and the Percentage Interest of the General Partner to reflect the Transfer of such Partnership Units to the General Partner. 

(k) Additional Partnership Interests. If the Partnership issues Partnership Interests to any Additional Limited Partner pursuant to
Article 4, the General Partner shall make such revisions to this Section 8.6 as the General Partner determines are necessary to reflect the issuance of such Partnership Interests (including setting forth any restrictions on the exercise of the
Redemption Right with respect to such Partnership Interests). 
 (l) Redemptions by the Advisor. For so long as the Advisor
remains the advisor to the Partnership and General Partner under the Advisory Agreement, neither the Advisor nor any Affiliate of the Advisor (other than the General Partner) may redeem any portion of the Partnership Units held by such Person;
provided that, upon the occurrence of a Listing Event, immediately following the distribution to the Advisor of all amounts required to be distributed to the Advisor pursuant to Section 5.1(d), the Partnership shall redeem all of the
Partnership Units held by the Advisor and its Affiliates (other than the General Partner), at a redemption price equal to and in the form of the Redemption Amount. In addition, upon the occurrence of a Termination Event, immediately following the
distribution to the Advisor of all amounts required to be distributed to the Advisor pursuant to Section 5.1(e), the Partnership shall redeem all of the Partnership Units held by the Advisor and its Affiliates (other than the General Partner),
at a redemption price equal to and in the form of the Redemption Amount. With respect to any automatic redemption of Partnership Units held by the Advisor or its Affiliates (other than the General Partner) pursuant to this Section 8.6(l), the
General Partner will elect for payment of the Redemption Amount by the Partnership to the Advisor and/or any such Affiliate to be the Cash Amount. 
  

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 ARTICLE 9 
 BOOKS, RECORDS, ACCOUNTING AND REPORTS 
  

	9.1	Records and Accounting 

 (a) Books and
Records. The General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents required to be maintained by the Act and other books and records deemed by the General Partner to be appropriate
with respect to the Partnership’s business, including, without limitation, all books and records necessary for the General Partner to comply with applicable requirements for qualification as a REIT under the Code and Treasury Regulations and to
provide to the Limited Partners any information, lists and copies of documents required to be provided pursuant to Sections 8.5(a) and 9.2 hereof. 
 (b) Accounting Method. The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with GAAP. 
  

	9.2	Reports 

 (a) Annual Reports. As soon as
practicable after the end of each Fiscal Year, but in no event later than the date on which the General Partner mails its annual report to its stockholders, the General Partner shall cause to be mailed to each Limited Partner as of the close of the
Fiscal Year, an annual report containing financial statements of the Partnership, or of the General Partner, if such statements are prepared on a consolidated basis with the Partnership, for such Fiscal Year, presented in accordance with GAAP, such
statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner in its sole discretion. 
 (b) Quarterly Reports. If and to the extent that the General Partner mails quarterly reports to its stockholders, then as soon as practicable after the end of each fiscal quarter of the Partnership, but in no event later than
the date such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner a report containing unaudited financial statements as of the last day of the calendar quarter of the Partnership, or of the General Partner, if
such statements are prepared on a consolidated basis with the Partnership, and such other information as may be required by applicable law or regulation, or as the General Partner determines to be appropriate. 
 (c) Delivery. Notwithstanding the foregoing, the General Partner may deliver to the Limited Partners each of the reports described above, as
well as any other communications that it may provide hereunder, by e-mail or by any other electronic means. 
 ARTICLE 10 

TAX MATTERS 
  

	10.1	Preparation of Tax Returns 

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

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	10.2	Tax Elections 

 Except as otherwise provided herein,
the General Partner shall, in its sole and absolute discretion, determine whether to make any available election pursuant to the Code; provided, however, that the General Partner shall make the election under Section 754 of the Code in
accordance with applicable regulations thereunder. The General Partner shall have the right to seek to revoke any such election it makes, including, without limitation, the election under Section 754 of the Code, upon the General Partner’s
determination, in its sole and absolute discretion, that such revocation is in the best interests of the Partners. 
  

	10.3	Tax Matters Partner 

 (a) General. The
General Partner shall be the “tax matters partner” of the Partnership for federal income tax purposes. Pursuant to Section 6223(c)(3) of the Code, upon receipt of notice from the Internal Revenue Service of the beginning of an
administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the Internal Revenue Service with the name, address, taxpayer identification number, and profit interest of each of the Limited Partners and the
Assignees; provided, that such information is provided to the Partnership by the Limited Partners and the Assignees. 
 (b) Powers. The tax matters partner is authorized, but not required: 
 (i) to enter into any
settlement with the Internal Revenue Service with respect to any administrative or judicial proceedings for the adjustment of Partnership items required to be taken into account by a Partner for income tax purposes (such administrative proceedings
being referred to as a “tax audit” and such judicial proceedings being referred to as “judicial review”), and in the settlement agreement the tax matters partner may expressly state that such agreement shall bind all Partners,
except that such settlement agreement shall not bind any Partner: 
 (A) who (within the time prescribed pursuant to the
Code and the Treasury Regulations) files a statement with the Internal Revenue Service providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner; or 
 (B) who is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member of a “notice group”
(as defined in Section 6223(b)(2) of the Code); 
 (ii) in the event that a notice of a final administrative
adjustment at the Partnership level of any item required to be taken into account by a Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial review of such final adjustment, including the
filing of a petition for readjustment with the Tax Court or the filing of a complaint for refund with the United States Claims Court or the District Court of the United States for the district in which the Partnership’s principal place of
business is located; 
  

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 (iii) to intervene in any action brought by any other Partner for judicial review of
a final adjustment; 
 (iv) to file a request for an administrative adjustment with the Internal Revenue Service and, if
any part of such request is not allowed by the Internal Revenue Service, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request; 
 (v) to enter into an agreement with the Internal Revenue Service to extend the period for assessing any tax which is attributable to
any item required to be taken account of by a Partner for tax purposes, or an item affected by such item; and 
 (vi) to
take any other action on behalf of the Partners or the Partnership in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations. 
 The taking of any action and the incurring of any expense by the tax matters partner in connection with any such proceeding, except to the extent required
by law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner set forth in Section 7.6 of this Agreement shall be fully applicable to the tax matters
partner in its capacity as such. 
 (c) Reimbursements. The tax matters partner shall receive no compensation for its services.
All third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be construed to restrict the
Partnership from engaging an accounting firm to assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable. 
  

	10.4	Organizational Expenses 

 The Partnership shall
elect to deduct expenses, if any, incurred by it in organizing the Partnership ratably over a sixty (60) month period as provided in Section 709 of the Code. 
  

	10.5	Withholding 

 (a) General. Each Limited
Partner hereby authorizes the Partnership to withhold from, or pay on behalf of or with respect to, such Limited Partner any amount of federal, state, local, or foreign taxes that the General Partner determines that the Partnership is required to
withhold or pay with respect to any amount distributable or allocable to such Limited Partner pursuant to this Agreement, including, without limitation, any taxes required to be withheld or paid by the Partnership pursuant to Sections 1441, 1442,
1445 or 1446 of the Code. 
  

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 (b) Treatment of Amounts Withheld. Any amount paid on behalf of or with respect to a Limited
Partner shall constitute a loan by the Partnership to such Limited Partner, which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment must be made unless: 
 (i) the Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner; or 

(ii) the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available
funds of the Partnership which would, but for such payment, be distributed to the Limited Partner. 
 Any amounts withheld from amounts otherwise
distributable to a Limited Partner as described in clause (i) or (ii) of this Section 10.5(b) shall be treated as having been distributed to such Limited Partner. 
 (c) Security Interest. Each Limited Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such
Limited Partner’s Partnership Interest to secure such Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this Section 10.5. Each Limited Partner shall take such actions as the
Partnership or the General Partner shall request in order to perfect or enforce the security interest created hereunder. 
 (d) Default. In the event that a Limited Partner fails to pay when due any amounts owed to the Partnership pursuant to this Section 10.5, the General Partner may, in its sole and absolute discretion, elect to make the
payment to the Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner and shall succeed to all rights and remedies of the Partnership as against such
defaulting Limited Partner. Without limitation, in such event, the General Partner shall have the right to receive distributions that would otherwise be distributable to such defaulting Limited Partner until such time as such loan, together with all
interest thereon, has been paid in full, and any such distributions so received by the General Partner shall be treated as having been distributed to the defaulting Limited Partner and immediately paid by the defaulting Limited Partner to the
General Partner in repayment of such loan. 
 (e) Interest. Any amount payable by a Limited Partner under this Section 10.5
shall bear interest at the lesser of (i) the base rate on corporate loans at large United States money center commercial banks, as published from time to time in The Wall Street Journal, plus four (4) percentage points, and
(ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full. 
  

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 ARTICLE 11 
 TRANSFERS AND WITHDRAWALS 
  

	11.1	Transfer 

 (a) Definition. The term
“Transfer,” when used in this Article 11 with respect to a Partnership Interest or a Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partner
Interest to another Person or a Limited Partner purports to assign all or any part of its Limited Partner Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other
disposition by law or otherwise. The term “Transfer” when used in this Article 11 does not include any redemption of Partnership Units or other Partnership Interests for cash or REIT Stock pursuant to Section 8.6. 
 (b) Restriction on Transfer. No Partnership Interest shall be Transferred, in whole or in part, except in accordance with the terms and
conditions set forth in this Article 11. Any Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article 11 shall be null and void. 
  

	11.2	Transfer of the General Partner’s General Partner Interest 

 (a) The General Partner may not Transfer any of its General Partner Interest or withdraw as General Partner, except: 
 (i) with the Consent of the Outside Limited Partners; or 
 (ii) if such Transfer is
to an entity which is wholly-owned, directly or indirectly, by the General Partner; 
 (b) In the event the General Partner withdraws as
general partner of the Partnership in accordance with Section 11.2(a), the General Partner’s General Partner Interest shall immediately be converted into a Limited Partner Interest. 
  

	11.3	Limited Partners’ Rights to Transfer 

 (a) General. Subject to the provisions of Section 11.3(b), no Limited Partner shall have the right to Transfer all or a portion of such Limited Partner’s Partnership Interest, or any of such Limited Partner’s
rights as a Limited Partner, without the consent of the General Partner, which may be given or withheld by the General Partner in its sole and absolute discretion. 
 (b) Transfers to Permitted Transferees. Notwithstanding the provisions of Section 11.3(a), but subject to the provisions of Sections 11.3(c), 11.3(d), and 11.3(e) and other applicable restrictions on
Transfers contained in this Article 11, a Limited Partner may Transfer, with or without the consent of the General Partner, all or a portion of his Partnership Units to a Permitted Transferee; provided that, such Permitted Transferee qualifies as
“accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act; and provided further that, no Transfer pursuant to this Section 11.3(b) shall be effective until the General Partner
receives notice of such Transfer. 
  

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 (c) No Transfers Violating Securities Laws. The General Partner may prohibit any Transfer by
a Limited Partner of its Partnership Units if, in the opinion of legal counsel to the Partnership, 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 Partnership or the Partnership Units. 
 (d) No Transfers to Certain Lenders. No
Transfer of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within the meaning of Treasury Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse
liability (within the meaning of Treasury Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute discretion. 
 (e) Additional Prohibited Transfers. No Transfer by a Limited Partner of its Partnership Units may be made to any Person if: 
 (i) in the opinion the General Partner based on the advice of legal counsel, if appropriate, it would adversely affect the ability of
the General Partner to continue to qualify as a REIT or would subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code; 
 (ii) in the opinion of the General Partner based on the advice of legal counsel, if appropriate, it would result in the Partnership
being treated as an association taxable as a corporation for federal income tax purposes; 
 (iii) such Transfer would
subject the Partnership to regulation under the Investment Company Act of 1940, the Investment Advisers Act of 1940, as amended or ERISA; 
 (iv) such Transfer is effectuated through an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the
Code; or 
 (v) such Transfer is to a Prohibited Transferee. 
 (f) Incapacitated Limited Partners. If a Limited Partner is Incapacitated, the executor, administrator, trustee, committee, guardian,
conservator or receiver of such Limited Partner’s estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners, for the purpose of settling or managing the estate and such power as
the Incapacitated Limited Partner possessed to Transfer all or any part of his or its interest in the Partnership. The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership. 
 (g) Transfers by the Advisor. For so long as the Advisor remains the advisor to the Partnership and General Partner under the Advisory
Agreement, neither the Advisor nor any Affiliate of the Advisor (other than the General Partner) may Transfer any portion of the Partnership Units held by the Advisor to any Person, other than (i) Transfers to any Affiliate of the Advisor, and
(ii) deemed Transfers to the General Partner pursuant to Section 8.6(c). 
  

 - 50 - 

	11.4	Substituted Limited Partners 

 (a) Consent
of the General Partner. No Limited Partner shall have the right to substitute a Permitted Transferee in such Limited Partner’s place. The General Partner shall, however, have the right to consent to the admission of a Permitted Transferee
of the Partnership Interest of a Limited Partner pursuant to this Section 11.4 as a Substitute Limited Partner, which consent may be given or withheld by the General Partner in its sole and absolute discretion. The General Partner’s
failure or refusal to permit such transferee to become a Substituted Limited Partner shall not give rise to any cause of action against the Partnership or any Partner. 
 (b) Rights of a Substituted Limited Partner. A transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights and powers and be subject to
all the restrictions and liabilities of a Limited Partner under this Agreement. The admission of any transferee as a Substituted Limited Partner shall be conditioned upon the transferee executing and delivering to the Partnership an acceptance of
all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section 2.6, and such other documents or instruments as may be required in the reasonable discretion of the General Partner in
order to effect such Person’s admission as a Substituted Limited Partner. 
 (c) Amendments to Exhibit A. Upon the admission
of a Substituted Limited Partner, the General Partner shall amend Exhibit A to reflect the name, address, number of Partnership Units, and Percentage Interest of such Substituted Limited Partner and to eliminate or adjust, if necessary, the
name, address and interest of the predecessor of such Substituted Limited Partner. 
  

	11.5	Assignees 

 If the General Partner, in its sole and
absolute discretion, does not consent to the admission of any transferee as a Substituted Limited Partner, as described in Section 11.4(a), such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be
deemed to have had assigned to it, and shall be entitled to receive distributions from the Partnership and the share of Profit, Losses and any other items of gain, loss, deduction or credit of the Partnership attributable to the Partnership Units
assigned to such transferee, but shall not be deemed to be a holder of Partnership Units for any other purpose under this Agreement except as otherwise provided in this Agreement, and shall not be entitled to vote such Partnership Units in any
matter presented to the Limited Partners for a vote (such Partnership Units being deemed to have been voted on such matter in the same proportion as all other Partnership Units held by Limited Partners are voted). In the event any such transferee
desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all of the provisions of this Article 11 to the same extent and in the same manner as any Limited Partner desiring to make an assignment of
Partnership Units. 
  

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	11.6	General Provisions 

 (a) Withdrawal of a
Limited Partner. No Limited Partner may withdraw from the Partnership other than as a result of a Transfer of all of such Limited Partner’s Partnership Units pursuant to which the transferee is admitted as a Substituted Limited Partner or a
redemption of all of the Partnership Units held by such Limited Partner pursuant to Section 8.6. 
 (b) Termination of Status as
a Limited Partner. Any Limited Partner that (i) Transfers all of such Limited Partner’s Partnership Units (or other Partnership Interests) in a Transfer pursuant to which the transferee is admitted as a Substituted Limited Partner, or
(ii) redeems all of such the Partnership Units held by such Limited Partner pursuant to Section 8.6 shall cease to be a Limited Partner. 
 (c) Allocations. If any Partnership Interest is Transferred during the Partnership’s Fiscal Year in compliance with the provisions of this Article 11 (including Transfers to the General Partner pursuant to
Section 8.6(c)) on any day other than the first day of a Fiscal Year, then Profit, Losses, each item thereof and all other items attributable to such Partnership Interest for such Fiscal Year shall be divided and allocated between the
transferor Partner and the transferee Partner by taking into account their varying interests during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its
sole and absolute discretion, elects to adopt a daily, weekly or monthly proration period, in which event Profits, Losses, each item thereof and all other items attributable to such transferred Partnership Interest for such Fiscal Year shall be
prorated based upon the applicable method selected by the General Partner). 
 (d) Distributions. All distributions of Available
Operating Cash, Net Capital Event Proceeds or other Partnership Assets attributable to Partnership Units, with respect to which the Partnership Record Date is before the date of a Transfer of such Partnership Units (including any Transfer to the
General Partner pursuant to Section 8.6(c)), shall be made to the transferor Partner, and all distributions of Available Operating Cash, Net Capital Event Proceeds or other Partnership Assets thereafter attributable to such Partnership Units
shall be made to the transferee Partner. 
 (e) Capital Accounts. The original Capital Account established for each transferee
shall be in the same amount as the Capital Account or portion thereof of the Partner to which such transferee succeeds, at the time such transferee is admitted to the Partnership. The Capital Account of any Partner whose Percentage Interest shall be
increased by means of the Transfer to it of all or part of the Partnership Interest of another Partner shall be appropriately adjusted to reflect such Transfer. Any reference in this Agreement to a Capital Contribution of, or distribution to, a
then-Partner shall include a Capital Contribution or distribution previously made by or to any prior Partner on account of the Partnership Interest of such then-Partner. 
 (f) Additional Restrictions. In addition to any other restrictions on transfer contained in this Agreement, in no event may any Transfer of a Partnership Interest by any Partner or any redemption pursuant
to Section 8.6 be made without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks the legal right, power or capacity to own a Partnership Interest; (ii) in violation
of applicable law; (iii) of any component portion of a Partnership Interest, such as the Capital 

  

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Account, or rights to distributions, separate and apart from all other components of a Partnership Interest; (iv) if in the opinion of the General
Partner based on the advice of legal counsel, if appropriate, such Transfer would cause a termination of the Partnership for Federal or state income tax purposes (except as a result of a redemption of all Partnership Units held by all Limited
Partners); (v) if in the opinion of the General Partner based on the advice of legal counsel, if appropriate, such Transfer would cause the Partnership to cease to be classified as a partnership for Federal income tax purposes (except as a
result of a redemption of all Partnership Units held by all Limited Partners); (vi) if such Transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such Transfer
would cause the Partnership to become a “publicly traded partnership,” as such term is defined in Section 7704(b) of the Code (provided that this clause (vii) shall not be the basis for limiting or restricting in any manner the
exercise of the Redemption Right under Section 8.6 unless, and only to the extent that, outside tax counsel advises the General Partner that, in the absence of such limitation or restriction, there is a significant risk that the Partnership
will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation); (viii) if such Transfer would cause the General Partner to own 10% or more of the ownership interests of any tenant of a property
held by the Partnership within the meaning of Section 856(d)(2)(B) of the Code; (ix) if such Transfer would result in the General Partner being “closely held” within the meaning of Section 856(h) of the Code; or (x) if
in the opinion the General Partner based on the advice of legal counsel, if appropriate, such Transfer would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes
under Section 857 or Section 4981 of the Code. 
 ARTICLE 12 
 ADMISSION OF PARTNERS 
  

	12.1	Admission of Successor General Partner 

 A successor
to all of the General Partner Interest pursuant to Article 11 hereof who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership as the General Partner, effective immediately following the successor General
Partner’s execution and delivery to the Partnership of an acceptance of all of the terms and conditions of this Agreement and such other documents or instruments as may be required or appropriate to effect such Person’s admission as
General Partner. In the case of such admission on any day other than the first day of a Fiscal Year, all items attributable to the General Partner Interest for such Fiscal Year shall be allocated between the transferring General Partner and such
successor as provided in Section 11.6(c) hereof. Any such successor General Partner shall carry on the business of the Partnership without dissolution. 
  

	12.2	Admission of Additional Limited Partners 

 (a) General. A Person other than the General Partner and the Initial Limited Partner who makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted to the Partnership as an Additional
Limited Partner only upon executing and delivering to the General Partner: 
 (i) evidence of acceptance in form
satisfactory to the General Partner of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section 2.6 hereof; and 
  

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 (ii) such other documents or instruments as may be required in the discretion of the
General Partner in order to effect such Person’s admission as an Additional Limited Partner. 
 (b) General Partner’s
Consent Required. Notwithstanding anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent may be given or withheld in the General
Partner’s sole and absolute discretion. The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership, following the
consent of the General Partner to such admission and the satisfaction of the conditions set forth in Section 12.2(a). 
 (c) Allocations to Additional Limited Partners. If any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Fiscal Year, then Profit, Losses, each item thereof and all other items
allocable among Partners and Assignees for such Fiscal Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees by taking into account their varying interests during the Fiscal Year in accordance with
Section 706(d) of the Code, using the interim closing of the books method. Solely for purposes of making such allocations, each of such items for the calendar month in which an admission of any Additional Limited Partner occurs shall be
allocated among all of the Partners and Assignees, including such Additional Limited Partner. 
  

	12.3	Amendment of Agreement and Certificate of Limited Partnership 

 For the admission to the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership and, if necessary, to prepare as soon as
practical an amendment of this Agreement (including an amendment of Exhibit A) and, if required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney granted pursuant to
Section 2.6 hereof. 
 ARTICLE 13 
 DISSOLUTION, LIQUIDATION AND TERMINATION 
  

	13.1	Dissolution 

 The Partnership shall not be dissolved
by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Subject to Section 13.1(b), upon the withdrawal of the General
Partner, any successor General Partner shall continue the business of the Partnership. The Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following (“Liquidating Events”):

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

 - 54 - 

 (b) an event of withdrawal of the General Partner, as defined in the Act (other than an event of
bankruptcy), unless, within ninety (90) days after such event of withdrawal, a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment,
effective as of the date of withdrawal, of a successor General Partner; 
 (c) an election to dissolve the Partnership made by the
General Partner, in its sole and absolute discretion; 
 (d) entry of a decree of judicial dissolution of the Partnership pursuant to
the provisions of the Act; 
 (e) the occurrence of a Terminating Capital Transaction; or 
 (f) a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner or the Partnership is
bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General Partner or the Partnership, in each case under any federal or state bankruptcy or insolvency laws as now or
hereafter in effect, unless prior to the entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners Consent in writing to continue the business of the Partnership and to the appointment, effective
as of a date prior to the date of such order or judgment, of a substitute General Partner, if applicable. 
 As used in this Article 13, a “majority in
interest” shall refer to Partners (excluding the General Partner) who hold Partnership Units that constitute more than fifty percent (50%) of the aggregate number of outstanding Partnership Units not held by the General Partner.

  

	13.2	Winding Up; Liquidation 

 (a) Upon dissolution
of the Partnership, the business and affairs of the Partnership shall be wound up as provided in this Section 13.2. The General Partner shall act as the “Liquidator” (or, in the event there is no remaining General Partner, any
Person elected by Limited Partners holding more than 50% of the total number of Partnership Units then issued and outstanding). The Liquidator shall wind up the affairs of the Partnership, shall dispose of such Partnership Assets as it deems
necessary or appropriate and shall pay and distribute the assets of the Partnership, including the proceeds of any such disposition, as follows: 
 (i) first, to creditors, including Partners who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the Partnership (whether by payment or by establishment or reserves as
determined by the Liquidator in its sole discretion), other than distributions to Partners pursuant to Article 5, and 
  

 - 55 - 

 (ii) second, to the Partners in accordance with their positive Capital Account
balances. 
 It is intended that such distributions will result in the Partners receiving aggregate distributions in the order of and equal
to the amount of distributions that would have been received if the liquidating distributions were made in accordance with Section 5.1. However, if the balances in the Capital Accounts do not result in such intention being satisfied, items of
Profits and Losses will be reallocated among the Partners for the Fiscal Year of the liquidation (and, at the election of the General Partner, if necessary and permissible, prior Fiscal Years) so as to cause the balances in the Capital Accounts to
be in the amounts necessary to assure that such result is achieved. Notwithstanding anything herein to the contrary, in the event the Partnership is liquidated within the meaning of Treasury Regulation §§ 1.704-1(b)(2)(ii)(g), liquidation
distributions shall be made by the end of the taxable year in which the Partnership liquidates or, if later, within ninety (90) days of the date of such liquidation. 
 (b) In the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the Partners pursuant to this Article 13 may be: 
 (i) distributed to a trust established for the benefit of the General Partner and Limited Partners for the purposes of liquidating
Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership; the assets of any such
trust shall be distributed to the General Partner and Limited Partners from time to time, in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust by the Partnership would otherwise have been
distributed to the General Partner and Limited Partners pursuant to this Agreement; or 
 (ii) withheld or escrowed to
provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed amounts shall be distributed to
the General Partner and Limited Partners in the manner and order of priority set forth in Section 13.2(a) as soon as practicable. 
 (c) The Liquidator shall, in its sole discretion, determine whether to sell any Partnership Assets, including, without limitation, Investments, and if so, whether at a public or private sale, for what price and on what terms. If the
Liquidator determines to sell or otherwise dispose of any Partnership Asset or any interest therein, the Liquidator shall do so expeditiously and for its fair market value under the circumstances, giving due regard to the activity and condition of
the relevant market and general financial and economic conditions. If the Liquidator determines not to sell or otherwise dispose of any Partnership Asset or any interest therein, the Liquidator shall not be required to distribute the same to the
Partners promptly but shall have full right and discretion to determine the time and manner of such distribution and distributions giving due regard to the interests of the Partners. 
  

 - 56 - 

	13.3	No Obligation to Contribute Deficit 

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

	13.4	Notice of Dissolution 

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

	13.5	Termination of Partnership and Cancellation of Certificate of Limited Partnership 

 Upon the completion of the liquidation of the Partnership’s assets, as provided in Section 13.2 hereof, the Partnership shall be terminated, a certificate of cancellation shall be filed, and all
qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the state of Delaware shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken. 
  

	13.6	Reasonable Time for Winding-Up 

 A reasonable time
shall be allowed for the orderly winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to Section 13.2 hereof in order to minimize any losses otherwise attendant upon such winding-up, and the
provisions of this Agreement shall remain in effect among the Partners during the period of liquidation. 
  

	13.7	Waiver of Partition 

 Each Partner hereby waives any
right to partition of the Partnership property. 
 ARTICLE 14 
 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS 
  

	14.1	Amendments 

 (a) By the General Partner.
The General Partner shall have the power, without the consent of the Limited Partners, to amend this Agreement except as set forth in Section 14.1(b) hereof. The General Partner shall provide notice to the Limited Partners when any action under
this Section 14.1(a) is taken in the next regular communication to the Limited Partners. The Limited Partners shall not have the power to amend this Agreement. 
  

 - 57 - 

 (b) Restrictions on General Partner’s Ability to Amend this Agreement. Notwithstanding
Section 14.1(a) hereof, this Agreement shall not be amended with respect to any Partner adversely affected without the Consent of such Partner adversely affected if such amendment would: 
 (i) convert a Limited Partner’s interest in the Partnership into a General Partner Interest; 
 (ii) impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership; 
 (iii) modify the limited liability of a Limited Partner in a manner adverse to such Limited Partner; or 
 (iv) amend this Section 14.1(b). 
  

	14.2	Meetings of the Partners 

 (a) General.
Meetings of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written request by Limited Partners holding 25 percent or more of the Partnership Interests. The request shall state the
nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30) days prior to the date of such meeting. Partners may vote in person or by proxy at
such meeting. 
 (b) Vote Required. Whenever the vote or Consent of the Partners is permitted or required under this Agreement,
such vote or Consent may be given at a meeting of the Partners or may be given in accordance with the procedure prescribed in Section 14.2(c) hereof. Except as otherwise expressly provided in this Agreement, the Consent of holders of
Partnership Units that constitute more than fifty percent (50%) of the aggregate number of outstanding Partnership Units held by the Partners (including the General Partner) shall constitute the consent of the Partners. 
 (c) Action Without a Meeting. Any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting if a
written consent setting forth the action so taken is signed by holders of Partnership Units that constitute more than fifty percent (50%) (or such other percentage as is expressly required by this Agreement) of the aggregate number of
outstanding Partnership Units held by the Partners (including the General Partner). Such consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote the holders of Partnership Units that constitute
more than fifty percent (50%) (or such other percentage as is expressly required by this Agreement) of the aggregate number of outstanding Partnership Units held by the Partners (including the General Partner). Such consent shall be filed with
the General Partner. An action so taken shall be deemed to have been taken at a meeting held on the effective date of the consent as certified by the General Partner. 
 (d) Proxy. Each Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Partner is entitled to participate, including waiving notice of any meeting, or voting or
participating at a meeting. Every proxy must be signed by the Partner or his attorney-in-fact and a copy thereof delivered to the Partnership. No proxy shall be valid after the expiration of 

  

 - 58 - 

 
eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Partner
executing it, such revocation to be effective upon the General Partner’s receipt of written notice of such revocation from the Partner executing such proxy. 
 (e) Conduct of Meeting. Each meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant to such rules for the conduct of the meeting
as the General Partner or such other Person deems appropriate. Meetings of Partners may be conducted in the same manner as meetings of the stockholders of the General Partner and may be held at the same time, and as part of, meetings of the
stockholders of the General Partner. 
 ARTICLE 15 
 GENERAL PROVISIONS 
  

	15.1	Addresses and Notice 

 Any notice, demand, request
or report required or permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and shall be deemed given or made when delivered if delivered in person, sent by first class United States mail, by overnight
delivery or via facsimile to the Partner or Assignee at the address set forth in Exhibit A or such other address of which the Partner shall notify the General Partner in writing. Notwithstanding the foregoing, the General Partner may elect to
deliver any such notice, demand, request or report by E-mail or by any other electronic means, in which case such communication shall be deemed given or made one day after being sent. 
  

	15.2	Titles and Captions 

 All article or section titles
or captions in this Agreement are for convenience of reference only, shall not be deemed part of this Agreement and shall in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided
otherwise, references to “Articles” and “Sections” are to Articles and Sections of this Agreement. 
  

	15.3	Pronouns and Plurals 

 Whenever the context may
require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa. 
  

	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. 
  

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	15.5	Binding Effect 

 This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 
  

	15.6	Creditors 

 Other than as expressly set forth herein
with respect to the Indemnitees, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership. 
  

	15.7	Waiver 

 No failure by any party to insist upon the
strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition.

  

	15.8	Counterparts 

 This Agreement may be executed in
counterparts, all of which together shall constitute one agreement binding on all of the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto. 
  

	15.9	Applicable Law 

 This Agreement shall be construed
and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of laws thereof. 
  

	15.10 	Invalidity of Provisions 

 If any provision of this
Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. 
  

	15.11 	Merger 

 Subject to Section 11.2, the
Partnership may merge with, or consolidate into, any Person or Entity in accordance with Section 17-211 of the Act. 
  

	15.12 	No Rights as Stockholders 

 Nothing contained in
this Agreement shall be construed as conferring upon the holders of the Partnership Units any rights whatsoever as stockholders of the General Partner, including, without limitation, any right to receive dividends or other distributions made to such
stockholders or to vote or to consent or receive notice as stockholders in respect to any meeting or stockholders for the election of directors of the General Partner or any other matter. 
  

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	15.13 	Entire Agreement 

 This Agreement contains the
entire understanding and agreement among the Partners with respect to the subject matter hereof and supersedes any other prior written or oral understandings or agreements among them with respect thereto. 
 [SIGNATURE PAGE FOLLOWS] 
  

 - 61 - 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Second Amended and
Restated Agreement of Limited Partnership as of the day and year first-above written. 
  

			
	GENERAL PARTNER:
	
	PALADIN REALTY INCOME
	PROPERTIES, INC.
		
	By:	 	 
		 	Name: James R. Worms
		 	Title: President and Chief Executive Officer
	
	LIMITED PARTNER:
	
	PALADIN REALTY ADVISORS, LLC
		
	By:	 	 
		 	Name: James R. Worms
		 	Title: President and Manager

  

 - 62 - 

 Exhibit A 
 Partners’ Contributions and Partnership Interests 
 As of December 31, 2007 
  

											
	 Name and Address of Partner
	  	 Type of Interest
	  	Capital
Contribution	  	Number of
Partnership
Units	  	Percentage
Interest	 
	 Paladin Realty Income Properties, Inc.
	  	General Partnership Interest	  	$	25,958,562	  	2,595,856	  	99.2	%
	 Paladin Realty Advisors, LLC
	  	Limited Partnership Interest	  	$	200,000	  	20,000	  	0.8	%
	 TOTAL
	  		  	$	26,158,562	  	2,615,856	  	100.00	%

  

 - 63 - 

 Exhibit B 
 NOTICE OF REDEMPTION REQUEST 
 The undersigned Limited Partner hereby irrevocably
(i) requests that Paladin Realty Income Properties, L.P. (the “Partnership”) redeem [            ] Partnership Units in the Partnership held by such Limited Partner in
accordance with the terms of the Second Amended and Restated Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) and the Redemption Right referred to therein; (ii) agrees to surrender such Partnership
Units and all right, title, and interest therein promptly upon payment of the Redemption Amount; (iii) directs that the Redemption Amount deliverable upon exercise of the Redemption Right be delivered to such Limited Partner at the address as
specified in the Partnership Agreement; and (iv) directs that, if the General Partner determines that the Redemption Amount shall be the REIT Stock Amount, the REIT Stock be registered or placed in the name of such Limited Partner and at such
address specified in the Partnership Agreement. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has not transferred or encumbered title to such Partnership Units; (b) has the full right, power and
authority to redeem and surrender such Partnership Units as provided herein; and (c) has obtained the consent or approval of all Persons, if any, having the right to consent or approve such redemption and surrender. 
 Dated:                             
  

			
	[Name of Limited Partner]
		
	By:	 	 
		 	Name:
		 	Title:

  

 - 64 -exhibit_10-1.htm

    
      
        

      

      
        EXHIBIT
          10.1

         

         

        

        
          	 
                  
                   

                   

                   

                   

                  ACOMA
                    BUSINESS CENTER

                  

                  INDUSTRIAL
                    LEASE

                  

                  

                  

                  by
                    and between

                  

                  

                  

                  ACOMA,
                    LLC

                  a
                    Virginia limited liability company

                  

                  "Landlord"

                  

                  

                  and

                  

                  

                  
                    STUDIO
                      ONE MEDIA, INC.

                    a
                      Delaware corporation

                    

                    "Tenant"

                    

                    

                    

                    October
                      29,2007

                    

                    

                    

                    

                    

                    Acoma
                      Business Center

                    c/o
                      Camidor Property Services, Inc.

                    1702
                      East Highland Avenue, #210

                    Phoenix,
                      Arizona   85016

                     

                     

                     

                     

                    

                  

                

        

        

        
 

      

      

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      

      

      TABLE
        OF
        CONTENTS

      

       

       

      
        	 1.	 BASIC
                PROVISIONS 	 3
	 2.	 LEASED
                PREMISES; ADJUSTMENTS     	 4
	 3.	 LEASE
                TERM; COMMENCEMENT DATE   	 4
	 4.	 SECURITY
                DEPOSIT	 4
	 5.	 RENT;
                RENT TAX; ADDITIONAL RENT	 5
	 6.	 OPERATING
                COSTS      	 5
	 7.	 CONDITION,
                REPAIRS AND ALTERATIONS  	 7
	 8.	 SERVICES    	 9
	 9.	 LIABILITY
                AND PROPERTY INSURANCE  	 9
	 10.	 RECONSTRUCTION  	 10
	 11.	 WAIVER
                OF SUBROGATION 	 12
	 12.	 LANDLORD'S
                RIGHT TO PERFORM TENANT OBLIGATIONS	 12
	 13.	 DEFAULT
                AND REMEDIES	 12
	 14.	 LATE
                PAYMENTS	 15
	 15.	 ABANDONMENT
                AND SURRENDER    	 15
	 16.	 INDEMNIFICATION
                AND EXCULPATION	 16
	 17.	 ENTRY
                BY LANDLORD	 16
	 18.	 SUBSTITUTE
                PREMISES 	 17
	 19.	 ASSIGNMENT
                AND SUBLETTING	 17
	 20.	 USE
                OF LEASED PREMISES AND RUBBISH REMOVAL	 18
	 21.	 SUBORDINATION
                AND ATTORNMENT  	 19
	 22.	 ESTOPPEL
                CERTIFICATE 	 20
	 23.	 SIGNS	 20
	 24.	 PARKING 	 21
	 25.	 LIENS 	 21
	 26.	 HOLDING
                OVER 	 21
	 27.	 ATTORNEYS'
                FEES	 21
	 28.	 RESERVED
                RIGHTS OF LANDLORD	 22
	 29.	 EMINENT
                DOMAIN	 23
	 30.	 NOTICES	 23
	 31.	 RULES
                AND REGULATIONS 	 23
	 32.	 ACCORD
                AND SATISFACTION 	 24
	 33.	 BANKRUPTCY
                OF TENANT	 24
	 34.	
                 HAZARDOUS
                  MATERIALS 

              	 26
	 35.	 RESTRICTIONS 	 28
	 36.	 MISCELLANEOUS 	 28

      

      
  

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      

       

      INDUSTRIAL
        LEASE

      

      1.    BASIC
        PROVISIONS

       

      
        
          	
                  1.1

                	
                  Date:

                	
                  October
                    29, 2007

                

        

        

        
          	
                  1.2

                	
                  Landlord:

                	
                  ACOMA,
                    LLC, a Virginia limited liability
                    company

                

        

        

        
          	
                  1.3

                	
                  Landlord's
                    Address:

                	
                  ACOMA,
                    LLC

                  c/o
                    Camidor Property Services, Inc.

                  1702
                    East Highland Avenue, Suite 210

                  Phoenix,
                    Arizona   85016

                

        

         

        
          	
                  1.4

                	
                  Tenant:  

                	
                  STUDIO
                    ONE MEDIA, INC.,

                  a Delaware
                    corporation

                

        

         

        
          	
                  1.5

                	
                  Tenant's
                    Address:

                	
                  7812
                    East Acoma Drive, #8

                  
                    Scottsdale,
                      AZ  85260

                  

                

        

         

        
          	
                  1.6

                	Property:
                   

                	
                  The
                    parcel of real estate located in Scottsdale, Maricopa County,
                    Arizona,
                    depicted on the Site Plan attached hereto as Exhibit "A" and
                    legally
                    described on Exhibit "B" attached hereto and incorporated herein
                    by this
                    reference, together with the buildings now or hereafter situated
                    thereon,
                    the landscaping, parking facilities and all other improvements
                    and
                    appurtenances thereto.

                

        

        

        
          	
                  1.7

                	Building:
                   

                	
                  That
                    certain industrial/office building known as Acoma Business Center
                    located
                    at 7812 East Acoma, Scottsdale, Maricopa County, Arizona 85260,
                    and
                    situated on the Property.

                

        

         

      

      
        	
                1.8

              	Leased
                Premises:
                 

              	
                Approximately
                  9,147 rentable square feet of space in the Building and commonly
                  known as
                  Suite 8, as outlined on the Floor Plan attached hereto as Exhibit
                  "C".

              

      

      

      
        	1.9	
                Permitted
                  Use:

              	
                Sales
                  and administrative offices with
                  storage

              

      

      

      
        	
                1.10

              	Lease
                Term:    	
                Five
                  (5) years and three (3) months

              

      

      

      
        	
                1.11

              	
                Scheduled
                  Commencement Date

                and Expiration
                  Date:       

              	
                November
                  1, 2007  and

                January 31,
                  2013

              

      

                                                           

      
        	
                1.12

              	Monthly
                Basic Rent:	
                See
                  RIDER attached

              

      

      

      
        	
                1.13

              	
                Security
                  Deposit: 

              	
                $
                  13,229.69

              

      

      

      
        	
                1.14

              	Building
                Hours:	
                24
                  hour access seven days per week

              

      

      

      
        	
                1.15

              	
                Parking
                  Spaces:

              	
                Landlord
                  to provide not less than 25 spaces

              

      

      

      
        	
                1.16

              	
                Parking
                  Charge:

              	
                None

              

      

      

      
        	
                1.17

              	Broker:        	
                Camidor
                  Property Services, LLC

                Airport
                  Property Specialists, LLC

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

       

      
        	
                1.18

              	
                Exhibits:    

              	
                A
                  =
                  Site Plan

                B
                  =
                  Legal Description of the Property

                C
                  =
                  Floor Plan

                D
                  =
                  Not Applicable

                E
                  =
                  Building Rules and Regulations

                F
                  =
                  Work Letter with ANNEX I

              

      

       

      
        	
                1.19

              	Riders: 	
                Rider
                  1Rider 2

              

      

       

      

      

      2.    LEASED
        PREMISES; ADJUSTMENTS

      

      2.1           Leased
        Premises.  Landlord hereby leases to Tenant, and Tenant hereby
        leases and accepts from Landlord, the Leased Premises, upon the terms and
        conditions set forth in this Lease and any modifications, supplements or
        addenda
        hereto (the "Lease"), including the Basic Provisions of ArticleI
        which are incorporated herein by this reference, together with the nonexclusive
        right to use, in common with Landlord and others, the Building Common Areas
        (defined below).  For the purposes of this Lease, the term
"Building Common Areas" means common hallways, corridors, walkways and
        footpaths, foyers and lobbies, parking lots, driveways, landscaped areas,
        and
        such other areas within or adjacent to the Building which are subject to
        or are
        designed or intended solely for the common enjoyment, use and/or benefits
        of the
        tenants of the Property.

      

      2.2           Adjustments.  The
        Monthly Basic Rent at the Commencement Date (as hereinafter defined) is based
        on
        the Leased Premises containing the rentable square footage set forth in
Article 1.8 above.

      

      3.    LEASE
        TERM, COMMENCEMENT DATE

      

      3.1           Lease
        Term.  The Lease Term shall begin on the Commencement Date and
        shall be for the period set forth in Article 1. 10 above, plus any period
        of less than one (1) month between the Commencement Date and the first day
        of
        the next succeeding calendar month, unless sooner terminated in accordance
        with
        the further provisions of this Lease.

      

      4.    SECURITY
        DEPOSIT

       

      Tenant
        shall pay to Landlord, upon the execution of this Lease, the Security Deposit
        set forth in Article 1. 13 above as security for the performance by
        Tenant of its obligations under this Lease, which amount shall be returned
        to
        Tenant after the expiration or earlier termination of this Lease, provided
        that
        Tenant shall have fully performed all of its obligations contained in this
        Lease.  The Security Deposit, at the election of Landlord, may be
        retained by Landlord as and for its full damages or may be applied in reduction
        of any loss and/or damage sustained by Landlord by reason of the occurrence
        of
        any breach, nonperformance or default by Tenant under this Lease without
        the
        waiver of any other right or remedy available to Landlord at law, in equity
        or
        under the terms of this Lease.  If any portion of the Security Deposit
        is so used or applied, Tenant shall, within five (5) days after written notice
        from Landlord, deposit with Landlord immediately available funds in an amount
        sufficient to restore the Security Deposit to its original amount, and Tenant's
        failure to do so shall be a breach of this Lease.  Tenant acknowledges
        and agrees that in the event Tenant shall file a voluntary petition pursuant
        to
        the Bankruptcy Code or any successor thereto, or if an involuntary petition
        is
        filed against Tenant pursuant to the Bankruptcy Code or any successor thereto,
        then Landlord may apply the Security Deposit towards those obligations of
        Tenant
        to Landlord which accrued prior to the filing of such
        petition.  Tenant acknowledges further that the Security Deposit may
        be commingled with Landlord's other funds and that Landlord shall be entitled
        to
        retain any interest earnings thereon.  In the event of termination of
        Landlord's interest in this Lease, Landlord shall transfer the Security Deposit
        to Landlord's successor in interest, whereupon Landlord shall be released
        from
        liability by Tenant for the return of such deposit or the accounting
        therefore.

       

      
 

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      

      5.    RENT;
        RENT
        TAX;  ADDITIONAL RENT

      

      5.1           Payment
        of Rent.  Tenant shall pay to Landlord the Monthly Basic Rent set
        forth in Article 1.12 above, subject to adjustment as provided
        herein.  The Monthly Basic Rent shall be paid, on or before the first
        day of each and every calendar month during the Lease Term, in advance, without
        notice or demand and without abatement, deduction or set-off.  If the
        Commencement Date is other than the first day of a calendar month, the payment
        for the partial month following the Commencement Date shall be prorated and
        shall be payable on the first day of the first full calendar month of the
        Lease
        Term.  The Monthly Basic Rent for the first full month of the Lease
        Term shall be paid on February 1, 2008.  All payments
        requiring proration shall be prorated on the basis of a thirty (30) day
        month.  In addition, all payments to be made under this Lease shall be
        paid in lawful money of the United States of America to Landlord or its agent
        at
        the address set forth in Article 1.3 above, or to such other person or at
        such other place as Landlord may from time to time designate in
        writing.

      

      5.2           Rent
        Tax.  In addition to the Monthly Basic Rent and Additional Rent,
        Tenant shall pay to Landlord, together with the installments of Monthly Basic
        Rent and payments of Additional Rent, an amount equal to any governmental
        taxes,
        including, without limitation, any sales, rental, occupancy, excise, use
        or
        transactional privilege taxes assessed or levied upon Landlord with respect
        to
        any and all amounts paid by Tenant to Landlord hereunder, as well as all
        taxes
        assessed or imposed upon Landlord's gross receipts or gross income from leasing
        the Leased Premises to Tenant, including, without limitation, transaction
        privilege taxes, education excise taxes, any tax now or hereafter imposed
        by the
        City of Scottsdale, the State of Arizona, any other governmental body, and
        any
        taxes assessed or imposed in lieu of or in substitution of any of the foregoing
        taxes.  Such taxes shall not, however, include any franchise, gift,
        estate, inheritance, conveyance, transfer or net income tax assessed against
        Landlord.

      

      5.3           Additional
        Rent.  In addition to Monthly Basic Rent, all other amounts to be
        paid by Tenant to Landlord pursuant to this Lease (including amounts to be
        paid
        by Tenant pursuant to Article6 below shall be deemed to be
        Additional Rent, whether or not designated as such, and shall be due and
        payable
        within five (5) days after receipt by Tenant of Landlord's statement or together
        with the next succeeding installment of Monthly Basic Rent, whichever shall
        first occur.  Landlord shall have the same remedies for the failure to
        pay Additional Rent as for the nonpayment of Monthly Basic Rent.

      

      6.    OPERATING
        COSTS

      

      6.1           Tenant's
        Obligation for Costs.  The Monthly Basic Rent does not include
        amounts attributable to Tenant's share of Taxes (defined below) or the cost
        of
        the use, management, repair, service, insurance, condition, operation and
        maintenance of the Building and the Property.  Tenant shall pay to
        Landlord, in addition to the Monthly Basic Rent, in accordance with the further
        provisions of this Article 6, an amount per rentable square foot of the
        Leased Premises equal to the total  Operating Costs (as hereinafter
        defined) multiplied by Tenant's Pro Rata Share.

      

      6.2           Landlord's
        Estimate.  Landlord shall furnish Tenant an estimate of Tenant's
        Pro Rata Share of the Operating Costs for each calendar year commencing with
        the
        Commencement Date.  In addition, Landlord may, from time to time,
        furnish Tenant a revised estimate of Operating Costs should Landlord anticipate
        any increase in Operating Costs from that set forth in a prior
        estimate.  Commencing with the first month to which an estimate
        applies, Tenant shall pay, in addition to the installments of Monthly Basic
        Rent, an amount equal to one-twelfth (1/12th) of Landlord's estimate of Tenant's
        Pro Rata Share of the Property's annual Operating Costs.  Within one
        hundred twenty (120) days after the expiration of each calendar year or such
        longer period of time as may be necessary to compile such statement, Landlord
        shall deliver to Tenant a statement of the actual Operating Costs for such
        calendar year.  If the actual Operating Costs for such calendar year
        are more or less than the estimated Operating Costs, a proper adjustment
        shall
        be made.   Any excess amounts paid by Tenant shall be refunded to
        Tenant with such statement or, at Landlord's option, may be applied to any
        amounts then payable by Tenant to Landlord or to the next
        maturing  installment of Monthly Basic Rent or Additional
        Rent.  Any deficiency between the estimated and actual Pro Rata Share
        of Operating Costs shall be paid by Tenant to Landlord concurrently with
        the
        installment of Monthly Basic Rent next due.  Any amount owing for a
        fractional calendar year in the first or final year of the Lease
        Term shall be prorated.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

       

      6.3           Operating
        Costs - Defined.  For the purposes of this Lease, "Operating
        Costs" shall mean all costs and expenses accrued, paid or incurred by
        Landlord, or on Landlord's behalf, in respect of the use, management, repair,
        service, insurance, condition, operation and maintenance of the Building
        and the
        Property, including but not limited to the following:

      

      (a)           Salaries,
        wages and benefits of all persons who perform duties in connection with
        landscaping, parking, janitorial and general cleaning services, security
        services and any and all other employees engaged by or on behalf of
        Landlord;

      

      (b)           
        Payroll taxes, workmen's compensation, uniforms and related expenses for
        such
        employees;

      

      (c)           The
        cost of all charges for oil, gas, steam, electricity, any alternate source
        of
        energy, heat, ventilation, air-conditioning, refrigeration, water, sewer
        service, trash collection, pest control and all other utilities, together
        with
        any taxes on such utilities;

      

      (d)           The
        cost of painting non-tenant space, including the Building Common
        Areas;

      

      (e)           The
        cost of all charges for rent, casualty, liability, fidelity and other insurance
        maintained by Landlord, including any deductible amounts incurred with respect
        to an insured loss;

      

      (f)           The
        cost of all supplies (including cleaning supplies), tools, materials, equipment
        and personal property, the rental thereof and sales, transaction privilege,
        excise and other taxes thereon;

      

      (g)           The
        cost of all charges for window and other cleaning, janitorial, security,
        refuse,
        lot sweeping and pest control services;

      

      (h)           The
        cost of charges for independent contractors that work on the Building,
excluding work performed with respect to a particular tenant’s lease
        space;

      

      (i)           The
        cost of repairs and replacements made by Landlord at its expense and the
        fees
        and other charges for maintenance and service agreements, excluding
        structural repairs and replacement of heating, air conditioning and mechanical
        equipment directly related to the premises of a tenant in the Building other
        than Tenant;

      

      
        	
                 

              	
                (j)

              	
                The
                  cost of exterior landscaping;

              

      

      

      (k)           Costs
        relating to the operation and maintenance of all real property and improvements
        appurtenant to the Property, including, without limitation, all parking areas,
        service areas, walkways and landscaping;

      

      (l)           The
        cost
        of alterations and improvements made by reason of the laws and requirements
        of any public authorities or the requirements of insurance bodies;

      

      (m)           All
        management fees and other charges for management services and overhead costs
        (including travel and related expenses), whether provided by an independent
        management company, Landlord or an affiliate of Landlord, not to exceed,
        however, the then prevailing range of rates charged in comparable buildings
        in
        the Phoenix, Arizona metropolitan area;

      

      (n)           The
        cost of any capital improvements or additions which improve the comfort or
        amenities available to tenants of the Building, provided, however, that any
        such
        costs shall be amortized with interest over the useful life of the improvement
        or addition;

      

      (o)           The
        cost of any capital improvements or additions which are intended to enhance
        the
        safety of the Property or reduce (or avoid increases in) Operating Costs,
        provided, however, that any such costs shall be amortized with interest over
        the
        useful life of the improvement or
        addition;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

       

       

      (p)           The
        cost of licenses and permits, inspection fees and reasonable legal, accounting
        and other professional fees and expenses, excluding such fees and
        expenses that are directly related to a tenant in the Building other than
        Tenant;

      

      (q)           Taxes
        (as hereinafter defined);

      

      (r)           Costs
        relating to the use, management, repair, service, insurance, condition,
        operation and maintenance of the Building Common Areas;

      

      (s)           All
        other charges properly allocable to the use, management, repair, service,
        insurance, condition, operation and maintenance of the Property in accordance
        with generally accepted accounting principles.

      

      6.4           Operating
        Costs - Exclusions.  Excluded from Operating Costs shall be the
        following:  (a)  depreciation; (b) interest on and
        amortization of debts, except to the extent expressly included pursuant to
        Article 6.3 above; (c) leasehold improvements, including redecorating made
        for
        tenants of the Building; (d) brokerage commissions and advertising expenses
        for
        procuring tenants for the Building or the Property; (e) refinancing costs;
        (f)
        the cost of any repair, replacement or addition which would be required to
        be
        capitalized under general accepted accounting principles, except to the extent
        expressly included pursuant to Article 6.3 above; and (g) the cost of any
        item included in Operating Costs under Article 6.3 above to the extent
        that such cost is reimbursed or paid directly by an insurance company,
        condemnor, a tenant of the Building or any other party.

      

      6.5           Taxes
        - Defined.  For the purposes of this Lease, "Taxes" shall mean and
        include all real property taxes, general and special assessments, assessments
        under any covenants, conditions and restrictions encumbering the Property,
        foreseen as well as unforeseen, which are levied or assessed upon or with
        respect to the Property, any improvements, fixtures, equipment and other
        property of Landlord, real or personal, located on the Property and used
        in
        connection with the operation of all or any portion of the Property, as well
        as
        any tax, surcharge or assessment which shall be levied or assessed in addition
        to or in lieu of such real or personal property taxes and
        assessments.  Taxes shall also include any expenses incurred by
        Landlord in contesting the amount or validity of any real or personal property
        taxes and assessments.  Taxes shall not, however, include any
        franchise, gift, estate, inheritance, conveyance, transfer or income tax
        assessed against Landlord.

      

      6.6           No
        Waiver.  The failure by Landlord to furnish Tenant with a
        statement of Operating Costs shall not constitute a waiver by Landlord of
        its
        right to require Tenant to pay excess Operating Costs per rentable square
        foot.

      

      6.7           Tenant's
        “Pro Rata Share” Defined.   Tenant's “Pro Rata Share” shall
        mean the ratio that the gross leasable floor area of the Premises bears to
        the
        total gross leasable floor area of all completed buildings on the
        Property.  The total gross leasable floor area is currently
        73,320 square feet.

      

      7.    CONDITION,
        REPAIRS AND ALTERATIONS

      

      7.1           Alterations
        and Improvements.  Tenant may place partitions and fixtures and
        may make improvements and other alterations to the interior of the Leased
        Premises at Tenant's expense, provided, however, that prior to commencing
        any
        such work, Tenant shall first obtain the written consent of Landlord to the
        proposed work, including the plans, specifications, the proposed architect
        and/or contractor(s) for such alterations and/or improvements and the materials
        used in connection with such alterations, including, without limitation,
        paint,
        carpeting, wall or window coverings and the use of carpet glues and other
        chemicals for installation of such materials.  At least ten (10) days
        prior to the com­mencement of any construction in the Leased Premises,
        Tenant shall deliver to Landlord copies of the plans and specifications for
        the
        contemplated work and shall identify the contractor(s) selected by Tenant
        to
        perform such work.  Landlord may require that the work be done by
        Landlord's own employees, its construction contractors, or under Landlord's
        direction, but at the expense of Tenant, and Landlord may, as a condition
        to
        consenting to such work, require that Tenant provide
        security adequate in Landlord's judgment so that the improvements or other
        alterations to the Leased Premises will be completed in a good, workmanlike
        and
        lien free manner.  Landlord may also require that any work done to the
        interior of the Leased Premises be subject to the supervision of Landlord
        or its
        designee.  All such improvements or alterations must conform to and be
        in substantial accordance in quality and appearance with the quality and
        appearance of improvements in a first-class institutional grade
        building.  All such improvements shall be the property of
        Landlord.  In the event Landlord consents to the use by Tenant of its
        own architect and/or contractor for the installation of any such alterations
        or
        improvements, prior to the commencement of such work, Tenant shall provide
        Landlord with evidence that Tenant's contractor has procured worker's
        compensation, lia­bility and property damage insurance (naming Landlord as
        an additional insured) in a form and in an amount approved by Landlord, and
        evidence that Tenant's architect and/or contractor has procured the necessary
        permits, certificates and approvals from the appropriate governmental
        authorities.  Tenant acknowledges and agrees that any review by
        Landlord of Tenant's plans and specifications and/or right of approval exercised
        by Landlord with respect to Tenant's architect and/or contractor is for
        Landlord's benefit only and Landlord shall not, by virtue of such review
        or
        right of approval, be deemed to make any representation, warranty or
        acknowledgment to Tenant or to any other person or entity as to the adequacy
        of
        Tenant's plans and specifications or as to the ability, capability or reputation
        of Tenant's architect and/or contractor.  Landlord approves
        Pinnacle Design as Tenant’s architect.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      

      7.2           Tenant's
        Obligations.  Tenant shall, at Tenant's sole cost and expense,
        maintain the Leased Premises in a clean, neat and sanitary condition and
        shall
        keep the Leased Premises and every part thereof in good condition and repair
        except where the same is required to be done by Landlord.  Tenant
        shall be responsible for maintaining, repairing, and replacing (as necessary)
        the HVAC for the Premises.  At the beginning of this initial
        lease term Landlord shall service all existing HVAC, mechanical and plumbing
        systems to make sure they are in good working order.  Tenant
        shall be responsible for maintaining the electrical, plumbing, lighting,
        and
        other mechanical systems within the Premises.  Tenant shall be
        responsible for its own separately metered water, electricity, phone and
        other
        utilities, and Tenant's trash collection, janitorial service and
        lighting.  Tenant hereby waives all rights to make repairs at the
        expense of Landlord as provided by any law, statute or ordinance now or
        hereafter in effect.  All of Tenant's alterations and/or improvements
        are the property of the Landlord, and Tenant shall, upon the expiration or
        earlier termination of the Lease Term, surrender the Leased Premises, including
        Tenant's alterations and/or improvements, to Landlord, janitorial clean and
        in
        the same condition as when received, ordinary wear and tear
        excepted.  Except as set forth in Article 7.4 below, Landlord
        has no obligation to construct, remodel, improve, repair, decorate or paint
        the
        Leased Premises or any improvement thereon or part thereof.  Tenant
        shall pay for the cost of all repairs to the Leased Premises not required
        to be
        made by Landlord and shall be responsible for any redecorating, remodeling,
        alteration and painting during the Lease Term as Tenant deems
        necessary.  Tenant shall pay for any repairs to the Leased Premises,
        the Building and the Property made necessary by any negligence or carelessness
        of Tenant, its employees or invitees.

      

      7.3           Landlord's
        Obligations.  Landlord shall (a) make all necessary repairs to the
        exterior walls, exterior doors, roofs, and windows of the Building, and (b)
        keep
        the Building and the Building Common Areas in a clean, neat and attractive
        condition, but Landlord shall not be liable or responsible for breakdowns
        or
        interruptions in service when reasonable efforts are made to restore such
        service.  The cost of all such maintenance and repair shall be
        Operating Costs for which Tenant will be liable for its Pro Rata
        Share.

      

      7.4           Removal
        of Alterations.  Upon the expiration or earlier termination of
        this Lease, Tenant shall remove from the Leased Premises all movable trade
        fixtures and other movable personal property, and shall promptly repair any
        damage to the Leased Premises, the Building and/or the Property caused by
        such
        removal.  All such removal and repair shall be entirely at Tenant's
        sole cost and expense.  At any time within fifteen (15) days prior to
        the scheduled expiration of the Lease Term or immediately upon any termination
        of this Lease, Landlord may require that Tenant remove from the Leased Premises
        any  trade fixtures, equipment, shelving, cabinet units or movable
        furniture (and other personal property) designated by Landlord to be
        removed.  In such event, Tenant shall, in accordance with the
        provisions of Article 7.2 above, complete such removal (including the
        repair of any damage caused thereby) entirely at its own expense and within
        fifteen (15) days after notice from Landlord.  All repairs required of
        Tenant pursuant to the provisions of this Article 7.5 shall be
performed
        in a manner satisfactory to Landlord, and shall include, but not be limited
        to,
        repairing plumbing, electrical wiring and holes in walls, restoring damaged
        floor and/or ceiling tiles, repairing any other cosmetic damage, and cleaning
        the Leased Premises.

       

       

       

       

      
        
          
          

        

        
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          EXHIBIT
            10.1 - continued

        

      

      
 

      7.5           No
        Abatement.  Except as provided herein, Landlord shall have no
        liability to Tenant, nor shall Tenant's covenants and obligations under this
        Lease, including without limitation, Tenant's obligation to pay Monthly Basic
        Rent and Additional Rent, be reduced or abated in any manner whatsoever by
        reason of any inconvenience, annoyance, interruption or injury to business
        arising from Landlord's making any repairs or changes which Landlord is required
        or permitted to make pursuant to the terms of this Lease or by any other
        tenant's Lease or are required by law to be made in and to any portion of
        the
        Leased Premises, the Building or the Property.  Landlord shall,
        nevertheless, use reasonable efforts to minimize any interference with Tenant's
        business in the Leased Premises.

      

      8.    SERVICES

      

      Landlord
        does not warrant that any services which Landlord may supply will be free
        from
        interruption.  Tenant acknowledges that any one or more of such
        services may be suspended by reason of accident, repairs, inspections,
        alterations or improvements necessary to be made, or by strikes or lockouts,
        or
        by reason of operation of law, or by causes beyond the reasonable control
        of
        Landlord.  Landlord shall not be liable for and Tenant shall not be
        entitled to any abatement or reduction of Monthly Basic Rent or Additional
        Rent
        by reason of any disruption of the services to be provided by Landlord pursuant
        to this Lease.

      

      9.    LIABILITY
        AND PROPERTY INSURANCE

      

      9.1           Liability
        Insurance.  Tenant shall, during the Lease Term, keep in full
        force and effect, a policy or policies of commercial general liability insurance
        for personal injury (including wrongful death) and damage to property covering
        (a) any occurrence in the Leased Premises, (b) any act or omission by Tenant,
        by
        any subtenant of Tenant, or by any of their respective invitees, agents,
        servants or employees anywhere in the Leased Premises and the Property, (c)
        the
        business operated by Tenant and by any subtenant of Tenant in the Leased
        Premises, and (d) the contractual liability of Tenant to Landlord pursuant
        to
        the indemnification provisions of Article 16.1 below, which coverage
        shall not be less than Two Million and No/100 Dollars ($2,000,000.00) per
        occurrence and Two Million and No/100 Dollars ($2,000,000.00) combined single
        limit.  If Landlord shall so request, Tenant shall increase the amount
        of such liability insurance to the amount then customary for premises and
        uses
        similar to the Leased Premises and Tenant's use thereof.  The
        liability policy or policies shall contain an endorsement naming Landlord,
        its
        partners, members or shareholders (as applicable), Landlord's lender and
        management agent and any persons, firms or corporations designated by Landlord
        as additional insureds, and shall provide that the insurance carrier shall
        have
        the duty to defend and/or settle any legal proceeding filed against Landlord
        seeking damages based upon bodily injury or property damage liability even
        if
        any of the allegations of such legal proceedings are groundless, false or
        fraudulent.

      

      9.2           Property
        Insurance.  Tenant shall, during the Lease Term, keep in full
        force and effect, a policy or policies of insurance with "Special Form
        Coverage," including coverage for vandalism or malicious mischief, insuring
        the
        Tenant Improvements as defined on Exhibit H hereto and Tenant's
        alterations and/or improvements made pursuant to Article 7.2 above and
        Tenant's stock in trade, furniture, personal property, fixtures, equipment
        and
        other items in the Leased Premises, with coverage in an amount equal to the
        full
        replacement cost thereof.

      

      9.3           Worker's
        Compensation Insurance.  Tenant shall, during the Lease Term, keep
        in full force and effect, a policy or policies of worker's compensation
        insurance with an insurance carrier and in amounts approved by the Industrial
        Commission of the State of Arizona.

      

      9.4           Business
        Interruption Insurance.  Tenant shall, during the Lease Term, keep
        in full force and effect, a policy or policies of business interruption
        insurance in an amount equal to twelve (12) installments of Monthly Basic
        Rent
        and Additional Rent payable to Landlord, together with the taxes thereon,
        insuring Tenant against losses sustained by Tenant as a result of any cessation
        or interruption
        of Tenant's business in the Leased Premises for any reason.

       

       

      
        
          
          

        

        
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          EXHIBIT
            10.1 - continued

        

      

      

      9.5           Insurance
        Requirements.  Each insurance policy and certificate thereof
        obtained by Tenant pursuant to this Lease shall contain a clause that the
        insurer will provide Landlord, its members, partners and any persons, firms
        or
        corporations designated by Landlord with at least thirty (30) days prior
        written
        notice of any material change, non-renewal or cancellation of the
        policy.  Each such insurance policy shall be with an insurance company
        authorized to do business in the State of Arizona and rated not less than
        A VIII
        in the then most current edition of "Best's Key Rating
        Guide".  Certified copies of all insurance policies evidencing the
        coverage under each such policy, as well as a certified copy of the required
        additional insured endorsement(s) shall be delivered to Landlord prior to
        commencement of the Lease Term.  Each such policy shall provide that
        any loss payable thereunder shall be payable notwithstanding (a) any act,
        omission or neglect by Tenant or by any subtenant of Tenant, or (b) any
        occupation or use of the Leased Premises or any portion thereof by Tenant
        or by
        any subtenant of Tenant for purposes more hazardous than permitted by the
        terms
        of such policy or policies, or (c) any foreclosure or other action or proceeding
        taken by any mortgagee or trustee pursuant to any provision of any mortgage
        or
        deed of trust covering the Leased Premises, the Building or the Property,
        or (d)
        any change in title or ownership of the Property.  All insurance
        policies required pursuant to this Article 9 shall be written as primary
        policies, not contributing with or in excess of any coverage which Landlord
        may
        carry.  Tenant shall procure and maintain all policies entirely at its
        own expense and shall, at least twenty (20) days prior to the expiration
        of such
        policies, furnish Landlord with certified copies of replacement policies
        or
        renewal certificates for existing policies in conformance with Accord Form
        No.
        27 (March 1993).  Tenant shall not do or permit to be done anything
        which shall invalidate the insurance policies maintained by Landlord or the
        insurance policies required pursuant to this Article 9 or the coverage
        thereunder.  If Tenant or any subtenant of Tenant does or permits to
        be done anything which shall increase the cost of any insurance policies
        maintained by Landlord, then Tenant shall reimburse Landlord for any additional
        premiums attributable to any act or omission or operation of Tenant or any
        subtenant of Tenant causing such increase in the cost of
        insurance.  Any such amount shall be payable as Additional Rent within
        five (5) days after receipt by Tenant of a bill from Landlord.  All
        policies of insurance (other than the policy of property insurance described
        in
        Article 9.2) shall name both Landlord and Tenant (and/or such other party
        or parties as Landlord may require) as insureds and shall be endorsed to
        indicate that the coverage provided shall not be invalid due to any act or
        omission on the part of Landlord.  In addition, the policy of property
        insurance described in Article 9.2 shall name Landlord (and Landlord's Lender,
        if Landlord shall so require) as a co-loss payee.

      

      9.6           Co-Insurance.  If
        on account of the failure of Tenant to comply with the provisions of this
        Article 9, Landlord is deemed a co-insurer by its insurance carrier, then
        any
        loss or damage which Landlord shall sustain by reason thereof shall be borne
        by
        Tenant, and shall be paid by Tenant within five (5) days after receipt of
        a bill
        therefor.

      

      9.7           Adequacy
        of Insurance.  Landlord makes no representation or warranty to
        Tenant that the amount of insurance to be carried by Tenant under the terms
        of
        this Lease is adequate to fully protect Tenant's interests.  If Tenant
        believes that the amount of any such insurance is insufficient, Tenant is
        encouraged to obtain, at its sole cost and expense, such additional insurance
        as
        Tenant may deem desirable or adequate.  Tenant acknowledges that
        Landlord shall not, by the fact of approving, disapproving, waiving, accepting,
        or obtaining any insurance, incur any liability for or with respect to the
        amount of insurance carried, the form or legal sufficiency of such insurance,
        the solvency of any insurance companies or the payment or defense of any
        lawsuit
        in connection with such insurance coverage, and Tenant hereby expressly assumes
        full responsibility therefor and all liability, if any, with respect
        thereto.

      

      10.    RECONSTRUCTION

      

      10.1           Insured
        Damage.  In the event the Leased Premises are damaged during the
        Lease Term by fire or other perils covered by Landlord's insurance, Landlord
        shall:

      

      (a)           Subject
        to Force Majeure, within a period of ninety (90) days after receipt by Landlord
        of insurance proceeds and the adjustment of the loss with the Superior Mortgagee
        and/or the Superior Lessor, as the case may be, and its insurer, and provided
        there is not then in existence of an
        Event
        of Default, commence repair, reconstruction and restoration of the Leased
        Premises and prosecute the same diligently to completion, in which event
        this
        Lease shall continue in full force and effect.

       

       

      
        
          
          

        

        
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          EXHIBIT
            10.1 - continued

        

      

      

      (b)           In
        the event of a partial or total destruction of either the Leased Premises,
        the
        Building, or the Property during the last two (2) years of the Lease Term,
        Landlord shall have the option to terminate this Lease upon giving written
        notice to Tenant within sixty (60) days after such destruction.  For
        purposes of this Article 10, "partial destruction" shall be deemed
        destruction to an extent of at least thirty-three and one-third percent (33.33
        %) of the then full replacement cost of the Leased Premises, the Building,
        or
        the Property as of the date of destruction.

      

      (c)           In
        the event that Superior Mortgagee shall require that insurance proceeds be
        applied
        against the principal balance due on the Superior Mortgage (defined below),
        then
        Landlord may, at Landlord's option and upon sixty (60) days written notice
        to
        Tenant, elect to terminate this Lease.

      

      10.2           Uninsured
        Damage.  In the event the Leased Premises, the Building or the
        Property shall be damaged as a result of any casualty not covered by Landlord's
        insurance, to any extent whatsoever, Landlord may, subject to Force Majeure,
        within one hundred eighty (180) days following the date of the casualty,
        commence repair, reconstruction or restoration of the Leased Premises, in
        which
        event this Lease shall continue in full force and effect, or within such
        one
        hundred eighty (180) day period elect not to so repair, reconstruct or restore
        the Leased Premises, the Building or the Property, as the case may be, in
        which
        event this Lease shall cease and terminate.  In either event, Landlord
        shall give Tenant written notice of Landlord's intention within such one
        hundred
        eighty (180) day period.

      

      10.3           Reconstruction.  In
        the event of any reconstruction of the Leased Premises, the Building or the
        Property pursuant to this Article 10, such reconstruction shall be in
        conformity with all city, county, state and federal ordinances, rules and
        regulations then in existence, as the same may be interpreted and
        enforced.  Notwithstanding that all reconstruction work shall be
        performed by Landlord's contractor unless Landlord shall otherwise agree
        in
        writing, Landlord's obligation to reconstruct the Leased Premises shall be
        only
        to the comparable condition of the Leased Premises immediately prior to the
        Commencement Date.  Landlord's obligation to repair and reconstruct
        the Leased Premises shall be limited to the amount of net proceeds of insurance
        received by Landlord, subject to reduction pursuant to Article 10.1(c)
        above.  Any extra expenses incurred by Landlord in the reconstruction
        of the Leased Premises, the Building or any other portion of the Property
        as a
        result of the violation by Tenant of the terms and conditions set forth in
        Article 34 below shall be borne by Tenant.  Tenant, at Tenant's sole
        cost and expense, shall be responsible for the repair and restoration of
        all
        items of the Tenant Improvements or Tenant's improvements and/or alterations
        installed pursuant to Article 7.2 and the replacement of Tenant's stock
        in trade, trade fixtures, furniture, furnishings and
        equipment.  Tenant shall commence the installation of fixtures,
        equipment and merchandise promptly upon delivery to Tenant of possession
        of the
        Leased Premises and shall diligently prosecute such installation to
        completion.

      

      10.4           Termination.  Upon
        any termination of this Lease under any of the provisions of this Article
        10, Landlord and Tenant each shall be released without further obligations
        to the other coincident with the surrender of possession of the Leased Premises
        to Landlord, except for items which have previously accrued and remain
        unpaid.  In the event of termination, all proceeds from Tenant's
        property insurance coverage and covering the Tenant Improvements or Tenant's
        improvements and/or alterations installed pursuant to Article 7.2, but
        excluding proceeds for trade fixtures, merchandise, signs and other removable
        personal property, shall be disbursed and paid to Landlord, less the
        unamortized portion of the Tenant Improvements initially installed by
        Tenant.

      

      10.5           Abatement.  In
        the event of repair, reconstruction and restoration of the Leased Premises,
        the
        Minimum Monthly Rental and Additional Rent shall be abated proportionately
        with
        the degree to which Tenant's use of the Leased Premises is impaired commencing
        from the date of destruction and continuing during the period of such repair,
        reconstruction or restoration.  Tenant shall continue the operation of
        Tenant's business at the Leased Premises during any such period to the
extent
        reasonably practicable from the standpoint of prudent business
        management.  Tenant shall not be entitled to any compensation or
        damages from Landlord for loss of the use of the whole or any part of the
        Leased
        Premises, or the building of which the Leased Premises are a part, Tenant's
        personal property or for any inconvenience or annoyance occasioned by such
        damage, repair, reconstruction or restoration.

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      
 

      10.6           Waiver.  Tenant
        hereby waives any statutory and common law rights of termination which may
        arise
        by reason of any partial or total destruction of the Leased Premises which
        Landlord is obligated to restore or may restore under any of the provisions
        of
        this Lease, including the provisions of A.R.S. § 33-343.

      

      11.    WAIVER
        OF
        SUBROGATION

      

      Tenant
        hereby waives its rights and the subrogation rights of its insurer against
        Landlord and any other tenants of space in the Building or the Property,
        as well
        as their respective members, officers, employees, agents, authorized
        representatives and invitees, with respect to any claims including, but not
        limited to, claims for injury to any persons, and/or damage to the Leased
        Premises and/or any fixtures, equipment, personal property, furniture,
        improvements and/or alterations in or to the Leased Premises, which are caused
        by or result from (a) risks or damages required to be insured against under
        this
        Lease, or (b) risks and damages which are insured against by insurance policies
        maintained by Tenant from time to time.  Tenant shall obtain for
        Landlord from its insurers under each policy required by this Lease a waiver
        of
        all rights of subrogation which such insurers of Tenant might otherwise have
        against Landlord.

      

      12.    LANDLORD'S
        RIGHT TO PERFORM TENANT OBLIGATIONS

      

      All
        covenants and agreements to be performed by Tenant under any of the terms
        of
        this Lease shall be performed by Tenant at Tenant's sole cost and expense
        and
        without any abatement of Monthly Basic Rent or Additional Rent.  If
        Tenant shall fail to pay any sum of money, other than Monthly Basic Rent,
        required to be paid by it hereunder, or shall fail to perform any other act
        on
        its part to be performed hereunder, and such failure shall continue for five
        (5)
        days after notice thereof by Landlord (or such shorter period of time as
        may be
        reasonable following oral notice to Tenant's personnel in the Leased Premises),
        Landlord may (but shall not be obligated to do so) without waiving or releasing
        Tenant from any of Tenant's obligations, make any such payment or perform
        any
        such other act on behalf of Tenant.  All sums so paid by Landlord and
        all necessary incidental costs, together with interest thereon at the greater
        of
        (a) eighteen percent (18%) per annum or (b) the rate of interest per annum
        publicly announced, quoted or published, from time to time, by Bank of America,
        at its Phoenix, Arizona office as its "reference rate" plus four (4) percentage
        points, from the date of such payment by Landlord until reimbursement in
        full by
        Tenant (the "Default Rate"), shall be payable to Landlord as Additional
        Rent with the next monthly installment of Annual Basic Rent; provided, however,
        in no event shall the Default Rate exceed the maximum rate (if any) permitted
        by
        applicable law.

      

      13.    DEFAULT
        AND REMEDIES

      

      13.1           Event
        of Default.  The occurrence of any one or more of the following
        events will constitute an "Event of Default" on the part of Tenant:

      

      (a)           Failure
        to pay any installment of Monthly Basic Rent, any Additional Rent or any
        other
        sum required to be paid by Tenant under this Lease, and such failure shall
        continue for five (5) days;

      

      (b)           Failure
        to perform any of the other covenants or conditions which Tenant is required
        to
        observe and perform (except failure in the payment of Monthly Basic Rent,
        Additional Rent or any other monetary obligation contained in this Lease)
        and
        such failure shall continue for fifteen (15) days (or such shorter period
        of
        time as may be specified by Landlord in the event of an emergency) after
        written
        notice thereof by Landlord to Tenant, provided that if such default is other
        than the payment of money and cannot be cured within such fifteen (15) day
        period, then an Event of Default
        shall not have occurred if Tenant, within such fifteen (15) day period,
        commences to cure such failure and diligently in good faith prosecutes the
        same
        to completion and furnishes evidence thereof to Landlord within thirty (30)
        days
        thereafter;

      
 

      
        
          
          

        

        
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          EXHIBIT
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      (c)           If
        any warranty, representation or statement made by Tenant to Landlord in
        connection with this Lease is or was materially false or misleading when
        made or
        furnished;

      

      (d)           The
        occurrence of an Event of Default under any other agreement between Landlord
        and
        Tenant;

      

      (e)           Failure
        to conduct business operations within the Leased Premises for five (5)
        consecutive days;

      

      (f)           If
        Tenant makes a bulk sale of its goods or moves or commences, attempts or
        threatens to move its goods, equipment and personal property out of the Leased
        Premises;

      

      (g)           The
        levy of a writ of attachment or execution or other judicial seizure of
        substantially all of Tenant's assets or its interest in this Lease, such
        attachment, execution or other seizure remaining undismissed or discharged
        for a
        period of thirty (30) days after the levy thereof;

      

      (h)           The
        filing of any petition by or against Tenant or any Guarantor to declare Tenant
        or any Guarantor a bankrupt or to delay, reduce or modify Tenant's or any
        Guarantor's debts or obligations, which petition is not discharged within
        forty
        five (45) days after the date of filing;

      

      (i)           The
        filing of any petition or other action taken to reorganize or modify Tenant's
        or
        any Guarantor's capital structure, which petition is not discharged within
        forty
        five (45) days after the date of filing;

      

      (j)           If
        Tenant or any Guarantor shall be declared insolvent according to
        law;

      

      
        	
                 

              	
                (k)

              	
                A
                  general assignment by Tenant or any Guarantor for the benefit of
                  creditors;

              

      

      

      (1)           The
        appointment of a receiver or trustee for Tenant or any Guarantor or all or
        any
        of their respective property, which appointment is not discharged within
        forty
        five (45) days after he date of filing;

      

      (m)           The
        filing by Tenant or any Guarantor of a voluntary petition pursuant to the
        Bankruptcy Code or any successor thereto or the filing of an involuntary
        petition against Tenant or any Guarantor pursuant to the Bankruptcy Code
        or any
        successor legislation, which petition is not discharged within forty five
        (45)
        days after the date of filing; or

      

      (n)           The
        occurrence of an Event of Default or other breach by Tenant under the other
        provisions of this Lease.

      

      13.2           Remedies.  Upon
        the occurrence of an Event of Default under this Lease by Tenant, Landlord
        may,
        without prejudice to any other rights and remedies available to a landlord
        at
        law, in equity or by statute, Landlord may exercise one or more of the following
        remedies, all of which shall be construed and held to be cumulative and
        non-exclusive: (a) Terminate this Lease and re-enter and take possession
        of the
        Leased Premises, in which event, Landlord is authorized to make such repairs,
        redecorating, refurbishments or improvements to the Leased Premises as may
        be
        necessary in the reasonable opinion of Landlord acting in good faith for
        the
        purposes of reletting the Leased Premises and the costs and expenses incurred
        in
        respect of such repairs, redecorating and refurbishments and the expenses
        of
        such reletting (including brokerage commissions) shall be paid by Tenant
        to
        Landlord within five (5) days after receipt of Landlord's statement; or (b)
        Without terminating this Lease, re-enter and take possession of the Leased
        Premises; or (c) Without such re-entry, recover possession of the Leased
        Premises in the manner prescribed by any statute relating to summary process,
        and any demand for Monthly Basic Rent, re-entry for condition broken, and
        any
        and all notices to quit, or other formalities of any nature to which Tenant
        may
        be entitled, are hereby specifically waived to the extent permitted by law;
        or
        (d) Without terminating this Lease, Landlord may relet the Leased Premises
        as Landlord may see fit without thereby avoiding or terminating this Lease,
        and
        for the purposes of such reletting, Landlord is authorized to make such repairs,
        redecorating, refurbishments or improvements to the Leased Premises as may
        be
        necessary in the reasonable opinion of Landlord acting in good faith for
        the
        purpose of such reletting, and if a sufficient sum is not realized from such
        reletting (after payment of all costs and expenses of such repairs, redecorating
        and refurbishments and expenses of such reletting (including brokerage
        commissions) and the collection of rent accruing therefrom) each month to
        equal
        the Monthly Basic Rent and Additional Rent payable hereunder, then Tenant
        shall
        pay such deficiency each month within five (5) days after receipt of Landlord's
        statement; or (e) Landlord may declare immediately due and payable all the
        remaining installments of Monthly Basic Rent and Additional Rent, and such
        amount, less the amount Tenant proves, if any, could reasonably expect to
        be
        recovered by Landlord through the releasing of the Leased Premises for the
        remainder of the Lease Term, shall be paid by Tenant within five (5) days
        after
        receipt of Landlord's statement.  Landlord shall not by re-entry or
        any other act, be deemed to have terminated this Lease, or the liability
        of
        Tenant for the total Monthly Basic Rent and Additional Rent reserved hereunder
        or for any installment thereof then due or thereafter accruing, or for damages,
        unless Landlord notifies Tenant in writing that Landlord has so elected to
        terminate this Lease.  After the occurrence of an Event of Default,
        the acceptance of Monthly Basic Rent or Additional Rent, or the failure to
        re-enter by Landlord shall not be deemed to be a waiver of Landlord's right
        to
        thereafter terminate this Lease and exercise any other rights and remedies
        available to it, and Landlord may re-enter and take possession of the Leased
        Premises as if no Monthly Basic Rent or Additional Rent had been accepted
        after
        the occurrence of an Event of Default.  Upon an Event of Default,
        Tenant shall also pay to Landlord all costs and expenses incurred by Landlord,
        including court costs and attorneys' fees, in retaking or otherwise obtaining
        possession of the Leased Premises, removing and storing all equipment, fixtures
        and personal property on the Leased Premises and otherwise enforcing any
        of
        Landlord's rights, remedies or recourses arising as  a result of an
        Event of Default.

       

       

      
        
          
          

        

        
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          EXHIBIT
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      13.3           Additional
        Remedies.  All of the remedies given to Landlord in this Lease in
        the event Tenant commits an Event of Default are in addition to all other
        rights
        or remedies available to a landlord at law, in equity or by statute, including,
        without limitation, the right to seize and sell all goods, equipment and
        personal property of Tenant located in the Leased Premises and apply the
        proceeds thereof to all due and unpaid Monthly Basic Rent, Additional Rent
        and
        other amounts owing under the Lease.  All rights, options and remedies
        available to Landlord shall be construed and held to be cumulative, and no
        one
        of them shall be exclusive of the other.  Upon the occurrence of an
        Event of Default, all rights, privileges and contingencies which may be
        exercised by Tenant under the Lease, including, without limitation, options
        to
        renew, extend and expand, as well as relocation rights, contraction rights
        and
        any other rights which may be exercised by Tenant during the Lease Term,
        shall
        be void and of no further force and effect.

      

      13.4           Interest
        on Past Due Amounts.  In addition to the late charge described
in Article 14 below, if any installment of Monthly Basic Rent or
        Additional Rent is not paid promptly when due, it shall bear interest at
        the
        Default Rate; provided, however, this provision shall not relieve Tenant
        from
        any default in the making of any payment at the time and in the manner required
        by this Lease; and provided, further, in no event shall the Default Rate
        exceed
        the maximum rate (if any) permitted by applicable law.

      

      13.5           Landlord
        Default.  In the event Landlord should neglect or fail to perform
        or observe any of the covenants, provisions or conditions contained in this
        Lease on its part to be performed or observed, and such failure continues
        for
        thirty (30) days after written notice of default (or if more than thirty
        (30)
        days shall be required because of the nature of the default, if Landlord
        shall
        fail to commence the curing of such default within such thirty (30) day period
        and proceed diligently thereafter), then Landlord shall be responsible to
        Tenant
        for any actual damages sustained by Tenant as a result of Landlord's breach,
        but
        not special or consequential damages.  Should Tenant give written
        notice to Landlord to correct any default, Tenant shall give similar notice
        to
        the holder of any mortgages or deeds of trust against the Building or the
        lessor
        of any ground lease, and prior to any cancellation of this Lease, the holder
        of
        such mortgage or deed of trust and/or the lessor under such ground lease
        shall
        be given a reasonable period of time to correct or remedy such
        default.  If and when such holder of such mortgage or deed of trust
        and/or the lessor under any such ground lease has made performance on behalf
        of
        Landlord, the default of Landlord shall be deemed cured.

       

      Notwithstanding
        any other provisions in this Lease, any claim which Tenant may have against
        Landlord for failure to perform or observe any of the covenants, provisions
        or
        conditions contained in this Lease shall be deemed waived unless such claim
        is
        asserted by written notice thereof to Landlord within ten (10) days of
        commencement of the alleged default or occurrence of the cause of action
        and
        unless suit be brought thereon within six (6) months subsequent to the
        occurrence of such cause of action.  Tenant shall have no right to
        terminate this Lease, except as expressly provided elsewhere in this
        Lease.

       

       

       

       

       

      
 

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

       

       

      14.    LATE
        PAYMENTS

      

      Tenant
        hereby acknowledges that the late payment by Tenant to Landlord of any
        installment of Monthly Basic Rent, any Additional Rent or any other sums
        due
        hereunder will cause Landlord to incur costs not contemplated by this Lease,
        the
        exact amount of which will be extremely difficult and impracticable to
        ascertain.  Such costs include but are not limited to processing,
        administrative and accounting costs.  Accordingly, if any installment
        of Monthly Basic Rent, any Additional Rent or any other sum due from Tenant
        shall not be received by Landlord within five business (5) days
        after the date when due, Tenant shall pay to ]Landlord a late charge equal
        to
        five percent (5%) of such overdue amount or Two Hundred and No/100 Dollars
        ($200.00), whichever is greater.  Tenant acknowledges that such late
        charge represents a fair and reasonable estimate of the costs Landlord will
        incur by reason of late payments by Tenant.  Neither assessment nor
        acceptance of a late charge by Landlord shall constitute a waiver of Tenant's
        default with respect to such overdue amount, nor prevent Landlord from
        exercising any of the other rights and remedies available to
        Landlord.  Nothing contained in this Article 14 shall be deemed
        to condone, authorize, sanction or grant to Tenant an option for the late
        payment of Monthly Basic Rent, Additional Rent or any other sum due
        hereunder.

      

      15.    ABANDONMENT
        AND SURRENDER

      

      15.1           Abandonment.  Tenant
        shall not vacate or abandon the Leased Premises at any time during the Lease
        Term.  No act or thing done by Landlord or by any agent or employee of
        Landlord during the Lease Term shall be deemed an acceptance of a surrender
        of
        the Leased Premises unless such acceptance is expressed in writing and duly
        executed by Landlord.  Unless Landlord so agrees in writing, the
        delivery of the key to the Leased Premises to any employee or agent of Landlord
        shall not operate as a termination of this Lease or as a surrender of the
        Leased
        Premises.

      

      15.2           Surrender.  Tenant
        shall, upon the expiration or earlier termination of this Lease, peaceably
        surrender the Leased Premises, including any Tenant Improvements and Tenant's
        improvements and/or alterations installed pursuant to Article 7.2, in a
        janitorial clean condition and otherwise in as good condition as when Tenant
        took possession, except for (i) reasonable wear and tear subsequent to the
        last
        repair, replacement, restoration, alteration or renewal; (ii) loss by fire
        or
        other casualty, and (iii) loss by condemnation.  If Tenant shall
        abandon, vacate or surrender the Leased Premises, or be dispossessed by process
        of law or otherwise, any personal property and fixtures belonging to Tenant
        and
        left in the Leased Premises shall be deemed abandoned and, at Landlord's
        option,
        title shall pass to Landlord under this Lease as by a bill of
        sale.  Landlord may, however, if it so elects, remove all or any part
        of such personal property from the Leased Premises and the costs incurred
        by
        Landlord in connection with such removal, including storage costs and the
        cost
        of repairing any damage to the Leased Premises, the Building and/or the Property
        caused by such removal shall be paid by Tenant within five (5) days after
        receipt of Landlord's statement.  Upon the expiration or earlier
        termination of this Lease, Tenant shall surrender to Landlord all keys to
        the
        Leased Premises and shall inform Landlord of the combination of any vaults,
        locks and safes left on the Leased Premises.  The obligations of
        Tenant under this article 15.2 shall survive the expiration or earlier
        termination of this Lease.  Tenant shall indemnify Landlord against
        any loss or liability resulting from delay by Tenant in so surrendering the
        Premises, including, without limitation, any claims made by any succeeding
        Tenant founded on such delay.  Tenant shall give written notice to
        Landlord at least thirty (30) days prior to vacating the Leased Premises
        for the
        express purpose of arranging a meeting with Landlord for a joint inspection
        of
        the Leased Premises.  In the event of Tenant's failure to give such
        notice or to participate in such joint inspection, Landlord's inspection
        at or
        after Tenant's vacation of the Leased Premises shall be conclusively deemed
        correct for purposes of determining Tenant's liability for repairs and
        restoration hereunder.

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

      

      16.    INDEMNIFICATION
        AND EXCULPATION

      

      16.1           Indemnification.  Tenant
        shall indemnify, protect, defend and hold Landlord harmless from and against,
        and shall be responsible for, all claims, damages, losses, costs, liens,
        encumbrances, liabilities and expenses, including reasonable attorneys',
        accountants' and investigators' fees and court costs (collectively, the
        "Claims"), however caused, arising in whole or in part from Tenant's use
        of all
        or any part of the Leased Premises, the Building and/or the Property or the
        conduct of Tenant's business or from any activity, work or thing done, permitted
        or suffered by Tenant or by any invitee, servant, agent, employee or subtenant
        of Tenant in the Leased Premises, the Building and/or the Property, and shall
        further indemnify, protect, defend and hold Landlord harmless from and against,
        and shall be responsible for, all Claims arising in whole or in part from
        any
        breach or default in the performance of any obligation on Tenant's part to
        be
        performed under the terms of this Lease or arising in whole or in part from
        any
        act, neglect, fault or omission by Tenant or by any invitee, servant, agent,
        employee or subtenant of Tenant anywhere in the Leased Premises, the Building
        and/or the Property.  In case any action or proceeding is brought
        against Landlord to which this indemnification shall be applicable, Tenant
        shall
        pay all Claims resulting therefrom and shall defend such action or proceeding,
        if Landlord shall so request, at Tenant's sole cost and expense, by counsel
        reasonably satisfactory to Landlord.  The obligations of Tenant under
        this Article 16.1 shall survive the expiration or earlier termination of
        this
        Lease.

      

      16.2           Exculpation.  Tenant,
        as a material part of the consideration to Landlord, hereby assumes all risk
        of
        damage to property, injury and death to persons and all claims of any other
        nature resulting from Tenant's use of all or any part of the Leased Premises,
        the Building and/or the Property, and Tenant hereby waives all claims in
        respect
        thereof against Landlord.  Neither Landlord nor its agents or
        employees shall be liable for any damaged property of Tenant entrusted to
        any
        employee or agent of Landlord or for loss of or damage to any property of
        Tenant
        by theft or otherwise.  Landlord shall not be liable for any injury or
        damage to persons or property resulting from any cause, including, but not
        limited to, fire, explosion, falling plaster, steam, gas, electricity, sewage,
        odor, noise, water or rain which may leak from any part of the Building or
        from
        the pipes, appliances or plumbing works therein, or from the roof of any
        structure on the Property, or from any streets or subsurfaces on or adjacent
        to
        the Building or the Property, or from any other place or resulting from dampness
        or any other causes whatsoever, unless caused solely by the gross negligence
        or
        wilful misconduct of Landlord.  Neither Landlord nor its employees or
        agents shall be liable for any defects in the Leased Premises, the Building
        and/or the Property, nor shall Landlord be liable for the negligence or
        misconduct, including, but not limited to, criminal acts, by maintenance
        or
        other personnel or contractors serving the Leased Premises, the Building
        and/or
        the Property, other tenants or third parties, unless Landlord is grossly
        negligent or guilty of willful misconduct.  All property of Tenant
        kept or stored on the Property shall be so kept or stored at the risk of
        Tenant
        only, and Tenant shall indemnify, defend and hold Landlord harmless from
        and
        against, and shall be responsible for, any Claims arising out of damage to
        the
        same, including subrogation claims by Tenant's insurance carriers, unless
        such
        damage shall be caused by the willful act or gross neglect of Landlord and
        through no fault of Tenant.  None of the events or conditions set
        forth in this Article 16 shall be deemed a constructive or actual eviction
        or
        result in a termination of this Lease, nor shall Tenant be entitled to any
        abatement or reduction of Annual Basic Rent or Additional Rent by reason
        thereof.  Tenant shall give prompt notice to Landlord with respect to
        any defects, fires or accidents which Tenant observes in the Leased Premises,
        the Building and/or the Property.

      

      17.    ENTRY
        BY
        LANDLORD

      

      Landlord
        reserves and shall at any and all times have the right to enter the Leased
        Premises, to inspect the same, to supply janitorial service and other services
        to be provided by Landlord to Tenant hereunder, to submit the Leased Premises
        to
        prospective purchasers or tenants, to post notices of non-res­ponsibility,
        and to alter, improve or repair the Leased Premises and any portion of the
        Building of which the Leased Premises are a part, without abatement of Monthly
        Basic Rent or Additional Rent, and may for that purpose erect scaffolding
        and
        other necessary structures where reasonably required by the character of
        the
        work to be performed, always providing that access into the Leased Premises
        shall not be blocked thereby, and further providing that the business of
        Tenant
        shall not be interfered with unreasonably.  Tenant hereby waives any
        claim for damages for any injury or inconvenience to or interference with
        Tenant's business, any loss of occupancy or quiet enjoyment of the Leased
        Premises or any loss occasioned thereby.  For each of the aforesaid
        purposes, Landlord shall at all times have and retain a key with which to
        unlock
        all the doors in, upon or about the Leased Premises, excluding Tenant's vaults
        and safes, and Landlord shall have the right to use any and all means which
        Landlord may deem proper to open such doors in an emergency in order to obtain
        entry to the Leased Premises, and any entry to the Leased Premises obtained
        by
        Landlord by any such means or otherwise shall not under any cir­cumstances
        be construed or deemed to be a forcible or unlawful entry into, or a detainer
        of, the Leased Premises or an eviction of Tenant from all or any portion
        of the
        Leased Premises.  Nothing in this Article 17 shall be construed
        as obligating Landlord to perform any repairs, alterations or maintenance
        except
        as otherwise expressly required elsewhere in this Lease.

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

      

      18.    SUBSTITUTE
        PREMISES

       

      Intentionally
        omitted.

      

      19.    ASSIGNMENT
        AND SUBLETTING

      

      19.1           Consent
        of Landlord Required.  Tenant shall not transfer or assign this
        Lease or any right or interest hereunder, or sublet the Leased Premises or
        any
        part thereof, without first obtaining Land­lord's prior written consent,
        which consent shall not be unreasonably withheld.  No
        transfer or assignment (whether voluntary or involuntary) or subletting shall
        be
        valid or effective without such prior written consent.  Should Tenant
        attempt to make or allow to be made any such transfer, assignment or subletting,
        except as aforesaid, and in any of the foregoing events Landlord may, at
        its
        option, treat such act as an Event of Default by Tenant.  Should
        Landlord consent to a transfer, assignment or subletting, such consent shall
        not
        constitute a waiver of any of the restrictions or prohibitions of this Article
        19, and such restrictions or prohibitions shall apply to each successive
        transfer, assignment or subletting hereunder, if any.

      

      19.2           Deemed
        Not To Be A Transfer. For the purposes of this
        Article 19, it is understood and agreed by Landlord that the
        Tenant is a public company and that the acquisition of all or a part of the
        stock of Tenant by another person or entity, public or private, or the merger
        of
        Tenant into another company, public or private, shall not be considered to
        be an
        unpermitted transfer and shall not require the prior written consent of
        Landlord, In any such event, Tenant will provide Landlord notice of such
        merger
        or acquisition.

      

      19.3           Delivery
        of Information.  If Tenant wishes at any time to assign this Lease
        or sublet the Leased Premises or any portion thereof, it shall first notify
        Landlord of its desire to do so and shall sub­mit in writing to Landlord (a)
        the name of the proposed subtenant or assignee, (b) the nature of the proposed
        subtenant's or assignee's business to be carried on in the Leased Premises;
        (c)
        the terms and the provisions of the proposed sublease or assignment; and
        (d)
        such financial information as Landlord may reasonably request concerning
        the
        proposed subtenant or assignee.  Tenant's failure to comply with the
        provisions of this Article 19.3 shall entitle Landlord to withhold its
        consent to the proposed assignment or subletting.

      

      19.4           Recapture.  If
        Tenant shall, without Landlord’s consent, assign its interst in
        this Lease or sublet all or any part of the Leased Premises, Landlord may,
        at
        its option, upon written notice to Tenant within thirty (30) days after
        Landlord's receipt of the information specified in Article 19.3 above, elect
        to
        recapture all of the Leased Premises, and within sixty (60) days after notice
        of
        such election has been given to Tenant, this Lease shall terminate.
        If  the Leased Premises are recaptured by Landlord pursuant to this
Article 19.4, Tenant shall promptly execute and deliver to Landlord a
        termination agreement setting forth the termination date with respect to
        the
        Leased Premises or the recaptured portion thereof, and prorating the Monthly
        Basic Rent, Additional Rent and other charges payable hereunder to such
        date, in such event the Landlord shall reimburse the unamortized portion
        of the initial Tenant Improvements.  If Landlord does not
        elect to recapture as set forth above, Tenant may thereafter enter into a
        valid
        assignment or sublease with respect to the Leased Premises, provided that
        Landlord consents thereto pursuant to this Article 19, and provided further,
        that (a) such assignment or sublease is executed within ninety (90) days
        after
        Landlord has given its consent, (b) Tenant pays all amounts then owed to
        Landlord under this Lease, (c) there is not in existence an Event of Default
        as
        of the effective date of the assignment or sublease, (d) there have been
        no
        material changes with respect to the financial condition of the proposed
        subtenant or assignee or the business such party intends to conduct in the
        Leased Premises, and (e) a fully executed original of such assignment or
        sublease providing for an express assumption by the assignee or subtenant
        of all
        of the terms, covenants and conditions of this Lease is promptly delivered
        to
        Landlord.

      

      
        
          
            
            

          

          
            17

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

       

       

      19.5           Adjustment
        to Rental.  In the event Tenant assigns its interest in this Lease
        or Sublets the Leased Premises, the Monthly Basic Rent set
        forth in Article 1. 12 above, as adjusted, shall be increased effective
        as of the date of such assignment or subletting to the rent and other
        consideration payable by any such assignee or sublessee pursuant to such
        assignment or sublease if such assignee or sublessee is paying rent in excess
        of
        the Monthly Basic Rent as adjusted.  Notwithstanding the foregoing, in
        no event shall the Monthly Basic Rent after any such assignment or subletting
        be
        less than the Monthly Basic Rent specified in Article 1. 12 above, as
        adjusted.

      

      19.6           No
        Release from Liability.  Landlord may collect Monthly Basic Rent
        and Additional Rent from the assignee, subtenant, occupant or other transferee,
        and apply the amount so collected, first to the installments of Monthly Basic
        Rent, then to any Additional Rent and other sums due and payable to Landlord,
        and the balance, if any, to Landlord, but no such assignment, subletting,
        occupancy, transfer or collection shall be deemed a waiver of Landlord's
        rights
        under this Article 19, or the acceptance of the proposed assignee,
        subtenant, occupant or transferee.  Notwithstanding any assignment,
        sublease or other transfer (with or without the consent of Landlord), Tenant
        shall remain primarily liable under this Lease and shall not be released
        from
        performance of any of the terms, covenants and conditions of this
        Lease.

      

      19.7           Landlord's
        Expenses.  If Landlord consents to an assignment, sublease or
        other transfer by Tenant of all or any portion of Tenant's interest under
        this
        Lease, Tenant shall pay or cause to be paid to Landlord, a transfer fee in
        an
        amount not less than Five Hundred and No/100 Dollars ($500.00) to reimburse
        Landlord for administrative expenses and for legal, accounting and other
        out of
        pocket expenses incurred by Landlord.

      

      19.8           Assumption
        Agreement.  If Landlord consents to an assignment, sublease or
        other transfer by Tenant of all or any portion of Tenant's interest under
        this
        Lease, Tenant shall execute and deliver to Landlord, and cause the transferee
        to
        execute and deliver to Landlord, an instrument in the form and substance
        acceptable to Landlord in which (a) the transferee adopts this Lease and
        assumes
        and agrees to perform, jointly and severally with Tenant, all of the obligations
        of Tenant hereunder, (b) Tenant acknowledges that it remains primarily liable
        for the payment of Monthly Basic Rent, Additional Rent and other obligations
        under this Lease, (c) Tenant subordinates to Landlord's statutory lien, contract
        lien and security interest, any liens, security interests or other rights
        which
        Tenant may claim with respect to any property of transferee and (d) the
        transferee agrees to use and occupy the Leased Premises solely for the purpose
        specified in Article 20 and otherwise in strict accordance with this
        Lease.

      

      20.    USE
        OF
        LEASED PREMISES AND RUBBISH REMOVAL

      

      20.1           Use.  The
        Leased Premises are leased to Tenant solely for the Permitted Use set forth
        in
        Article 1.9 above and for no other purpose whatsoever.  Tenant shall
        not use or occupy or permit the Leased Premises to be used or occupied, nor
        shall Tenant do or permit anything to be done in or about the Leased Premises
        nor bring or keep anything therein which will in any way increase the existing
        rate of or affect any casualty or other insurance on the Building or the
        Property, or any of their respective contents, or make void or voidable or
        cause
        a cancellation of any insurance policy covering the Building or the Property,
        or
        any part thereof or any of their respective contents.  Tenant shall
        not do or permit anything to be done in or about the Leased Premises, the
        Building and/or the Property which will in any way obstruct or interfere
        with
        the rights of other tenants or occupants of the Building or the Property
        or
        injure or annoy them.  Tenant shall not use or allow the Leased
        Premises to be used for any improper, immoral, unlawful or objectionable
        purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or
        about
        the Leased Premises, the Building and/or the Property.  In addition,
        Tenant shall not commit or suffer to be committed any waste in or upon the
        Leased Premises, the Building and/or the Property.  Tenant shall not
        use the Leased Premises, the Building and/or the Property or permit anything
        to
        be done in or about the Leased Premises, the Building and/or the Property
        which
        will in any way conflict with any matters of record, or any law, statute,
        ordinance or governmental rule or regulation now in force or which may hereafter
        be enacted or promulgated, and shall, at its sole cost and expense, promptly
        comply with all matters of record and all laws, statutes, ordinances and
        governmental rules, regulations and requirements now in force or which may
        hereafter be in force and with the requirements of any Board of Fire
        Underwriters or other similar body now or hereafter constituted, foreseen
        or
        unforeseen, ordinary as well as extraordinary, relating to or affecting the
        condition, use or occupancy of the Property, excluding structural changes
        not
        relating to or affected by Tenant's improvements or acts.  The
        judgment of any court of competent jurisdiction or the admission by Tenant
        in
        any action against Tenant, whether Landlord be a party thereto or not, that
        Tenant has violated any matters of record, or any law, statute, ordinance
        or
        governmental rule, regulation or requirement, shall be conclusive of that
        fact
        between Landlord and Tenant.  In addition, Tenant shall not place a
        load upon any floor of the Leased Premises which exceeds the load per square
        foot which the floor was designed to carry, nor shall Tenant install business
        machines or other mechanical equipment in the Leased Premises which cause
        noise
        or vibration that may be transmitted to the structure of the
        Building.

      

      
        
          
            
            

          

          
            18

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

       

      

      20.2           Rubbish
        Removal.  Tenant shall keep the Leased Premises clean, both inside
        and outside, subject, however, to Landlord's obligation as set forth in
Article 7.3 above.  Tenant shall not burn any materials or
        rubbish of any description upon the Leased Premises.  Tenant shall
        keep all accumulated rubbish in covered containers.  In the event
        Tenant fails to keep the Leased Premises in the proper condition, Landlord
        may
        cause the same to be done for Tenant and Tenant shall pay the expenses incurred
        by Landlord on demand, together with interest at the Default Rate, as Additional
        Rent.  Tenant shall, at its sole cost and expense, comply with all
        present and future laws, orders and regulations of all state, county, federal,
        municipal governments, departments, commissions and boards regarding the
        collection, sorting, separation, and recycling of waste products, garbage,
        refuse and trash.  Tenant shall sort and separate such waste products,
        garbage, refuse and trash into such categories as provided by
        law.  Each separately sorted category of waste products, garbage,
        refuse and trash shall be placed in separate receptacles reasonably approved
        by
        Landlord.  Such separate receptacles may, at Landlord's option, be
        removed from the Leased Premises in accordance with a collection schedule
        prescribed by law.  Landlord reserves the right to refuse to collect
        or accept from Tenant any waste products, garbage, refuse or trash that is
        not
        separated and sorted as required by law, and to require Tenant to arrange
        for
        such collection at Tenant's sole cost and expense using a contractor
        satisfactory to Landlord.  Tenant shall pay all costs, expenses,
        fines, penalties or damages that may be imposed on Landlord or Tenant by
        reason
        of Tenant's failure to comply with the provisions of this Article 20.2,
        and, at Tenant's sole cost and expense, Tenant shall indemnify, defend and
        hold
        Landlord and Landlord's agents and employees harmless (including legal fees
        and
        expenses) from and against, and shall be responsible for, all actions, claims,
        liabilities and suits arising from such noncompliance, utilizing counsel
        reasonably satisfactory to Landlord.

      

      21.    SUBORDINATION
        AND ATTORNMENT

      

      21.1           Subordination.  This
        Lease and all rights of Tenant hereunder shall be, at the option of Landlord,
        subordinate to (a) all matters of record, (b) all ground leases, overriding
        leases and underlying leases (collectively referred to as the "leases") of
        the
        Building or the Property now or hereafter existing, (c) all mortgages and
        deeds
        of trust (collectively referred to as the "mortgages") which may now or
        hereafter encumber or affect the Building or the Property, and (d) all renewals,
        modifications, amendments, replacements and extensions of leases and mortgages
        and to spreaders and consolidations of the mortgages, whether or not leases
        or
        mortgages shall also cover other lands, buildings or leases.  The
        provisions of this Article 21.1 shall be self-operative and no further
        instruments of subordination shall be required.  In confirmation of
        such subordination, Tenant shall promptly execute, acknowledge and deliver
        any
        instrument that Landlord, the lessor under any lease or the holder of any
        mortgage or any of their respective assigns or successors in interest may
        reasonably request to evidence such subordination.  Any lease to which
        this Lease is subject and subordinate is called a "Superior Lease" and
        the lessor under a Superior Lease or its assigns or successors in interest
        is
        called a "Superior Lessor".  Any mortgage to which this Lease
        is subject and subordinate is called a "Superior Mortgage" and the holder
        of a Superior Mortgage is called a "Superior Mortgagee".  If
        Landlord, a Superior Lessor or a Superior Mortgagee requires that such
        instruments be executed by Tenant, Tenant's failure to do so within ten (10)
        days after request therefor shall be deemed an Event of Default under this
        Lease.  Tenant waives any right to terminate this Lease because of any
        foreclosure proceedings.  Tenant hereby irrevocably constitutes and
        appoints Landlord (and any successor Landlord) as Tenant's attorney-in-fact,
        with full power of substitution coupled with an interest, to execute and
        deliver
        to any Superior Lessor or Superior Mortgagee any documents required to be
        executed by Tenant for and on behalf of Tenant if Tenant shall have failed
        to do
        so within ten (10) days after request therefore.

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

      

      21.2           Attornment.  If
        any Superior Lessor or Superior Mortgagee (or any purchaser at a foreclosure
        sale) succeeds to the rights of Landlord under this Lease, whether through
        possession or foreclosure action, or the delivery of a new lease or deed
        (a
"Successor Landlord"), Tenant shall attorn to and recognize such
        Successor Landlord as Tenant's landlord under this Lease and shall promptly
        execute and deliver any instrument that such Successor Landlord may reasonably
        request to evidence such attornment.

      

      22.    ESTOPPEL
        CERTIFICATE

       

      Tenant
        shall, whenever requested by Landlord, within ten (10) days after written
        request by Landlord, execute, acknowledge and deliver to Landlord a statement
        in
        writing certifying: (a) that this Lease is unmodified and in full force and
        effect, (or, if modified, stating the nature of such modification and certifying
        that this Lease, as so modified, is in full force and effect); (b) the dates
        to
        which Monthly Basic Rent, Additional Rent and other charges are paid in advance,
        if any; (c) that there are not, to Tenant's knowledge, any uncured defaults
        on
        the part of Landlord hereunder or specifying such defaults if any are claimed;
        (d) that Tenant has paid Landlord the Security Deposit, (e) the Commencement
        Date and the scheduled expiration date of the Lease Term, (f) the rights
        (if
        any) of Tenant to extend or renew this Lease or to expand the Leased Premises
        and (g) the amount of Monthly Basic Rent, Additional Rent and other charges
        currently payable under this Lease.  In addition, such statement shall
        provide such other information and facts Landlord may reasonably
        require.  Any such statement may be relied upon by any prospective or
        existing purchaser, ground lessee or mortgagee of all or any portion of the
        Property, as well as by any other assignee of Landlord's interest in this
        Lease.  Tenant's failure to deliver such statement within such time
        shall be conclusive upon Tenant (i) that this Lease is in full force and
        effect,
        without modification except as may be represented by Landlord; (ii) that
        there
        are no uncured defaults in Landlord's performance hereunder; (iii) that Tenant
        has paid to Landlord the Security Deposit; (iv) that not more than one month's
        installment of Monthly Basic Rent or Additional Rent has been paid in advance;
        (v) that the Commencement Date and the scheduled expiration date of the Lease
        Term are as stated therein, (vi) that Tenant has no rights to extend or renew
        this Lease or to expand the Leased Premises, (vii) that the Monthly Basic
        Rent,
        Additional Rent and other charges are as set forth therein and (viii) that
        the
        other information and facts set forth therein are true and correct.

      

      23.    SIGNS

      

      Landlord
        shall retain absolute control over the exterior appearance of the Building
        and
        the exterior appearance of the Leased Premises.  Tenant shall not
        install, or permit to be installed, any drapes, shutters, signs, lettering,
        advertising, or any items that will in any way, in the sole opinion of Landlord,
        adversely alter the exterior appearance of the Building or the exterior
        appearance of the Leased Premises as viewed from the exterior of the
        Building.  In no event may Tenant utilize trucks, automobiles or other
        vehicles on the Property for signage purposes.  Notwithstanding the
        foregoing, Landlord shall install, at Tenant's sole cost and expense, letters
        or
        numerals at or near the entryway to the Leased Premises provided Tenant obtains
        Landlord's prior written consent as to size, color, design and
        location.  All such letters or numerals shall be in accordance with
        the criteria established by Landlord for the Building.  In addition,
        Landlord shall, at its cost, install Tenant's name and suite number on the
        Building directory, if any; provided, however, any additions, deletions or
        other
        modifications to the Building directory shall be at Tenant's sole cost and
        expense.  See Rider 1 for Tenant’s right to install exterior
        signage on the building.

      

      

        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

        24.    PARKING

        

        24.1           Parking
          Facility.  Landlord shall provide, operate and maintain parking
accommodations
          (the "Parking Accommodations"), together with necessary access, having a
          capacity adequate in Landlord's opinion to accommodate the requirements
          of the
          Building and the Property.  No storage of vehicles or parking for more
          than twenty-four (24) hours shall be allowed without Landlord's prior written
          consent.  Tenant acknowledges and agrees that Landlord shall not be
          liable for damage, loss or theft of property or injury to persons in, upon
          or
          about the Parking Accommodations from any cause whatsoever.  Landlord
          shall have the right to establish, and from time to time change, alter
          and
          amend, and to enforce against all users of the Parking Accommodations,
          such
          reasonable requirements and restrictions as Landlord deems necessary and
          advisable for the proper operation and maintenance of the Parking
          Accommodations, including, without limitation, designation of particular
          areas
          for reserved, visitor and/or employee parking, and establishment of a reasonable
          rental charge for the use of the Parking Accommodations by tenants  of
          the Building and/or the general public, as a part of the Rules and Regulations
          of the Building referenced in Article 31 hereof.

      

      

      24.2           Parking.  Tenant
        is hereby allocated the number of parking spaces designated in Article
        1.16 hereof, entitling Tenant to park in the Parking Accommodations as
        designated by Landlord from time to time for use by Tenant, its employees
        and
        licensees.

      

      25.    LIENS

      

      Tenant
        shall keep the Leased Premises free and clear of all mechanic's and
        materialmen's liens.  If, because of any act or omission (or alleged
        act or omission) of Tenant, any mechanics', materialmen's or other lien,
        charge
        or order for the payment of money shall be filed or recorded against the
        Leased
        Premises, the Property or the Building, or against any other property of
        Landlord (whether or not such lien, charge or order is valid or enforceable
        as
        such), Tenant shall, at its own expense, cause the same to be canceled or
        discharged of record within thirty (30) days after Tenant shall have received
        written notice of the filing thereof, or Tenant may, within such thirty (30)
        day
        period, furnish to Landlord, a bond pursuant to A.R.S. §33-1004 (or any
        successor statute) and satisfactory to Landlord and all Superior Lessors
        and
        Superior Mortgagees against the lien, charge or order, in which case Tenant
        shall have the right to contest, in good faith, the validity or amount
        thereof.

      

      26.    HOLDING
        OVER

      

      It
        is
        agreed that the date of termination of this Lease and the right of Landlord
        to
        recover immediate possession of the Leased Premises thereupon is an important
        and material matter affecting the parties hereto and the rights of third
        parties, all of which have been specifically considered by Landlord and
        Tenant.  In the event of any continued occupancy or holding over of
        the Leased Premises without the express written consent of Landlord beyond
        the
        expiration or earlier termination of this Lease or of Tenants right to occupy
        the Leased Premises, whether in whole or in part, or by leaving property
        on the
        Leased Premises or otherwise, this Lease shall be deemed a monthly tenancy
        and
        Tenant shall pay two (2) times the greater of (a) Monthly Basic Rent then
        in
        effect, or (b) the then prevailing monthly rental rate within the Building,
        in
        advance at the beginning of the hold-over month(s), plus any Additional Rent
        or
        other charges or payments contemplated in this Lease, and any other costs,
        expenses, damages, liabilities and attorneys' fees incurred by Landlord on
        account of Tenant's holding over.

      

      27.    ATTORNEYS'
        FEES

      

      Tenant
        shall pay to Landlord all amounts for costs (including reasonable attorneys'
        fees) incurred by Landlord in connection with any breach or default by Tenant
        under this Lease or incurred in order to enforce or interpret the terms or
        provisions of this Lease.  Such amounts shall be payable within five
        (5) days after receipt by Tenant of Landlord's statement.  In
        addition, if any action shall be instituted by either of the parties hereto
        for
        the enforcement or interpretation of any of their respective rights or remedies
        in or under this Lease, the prevailing party shall be entitled to recover
        from
        the losing party all costs incurred by the prevailing party in such action
        and
        any appeal therefrom, including reasonable attorneys' fees to be fixed by
        the
        court.  Further, should Landlord be made a party to any litigation
        between Tenant and any third party, then Tenant shall pay all costs and
        attorneys' fees incurred by or imposed upon Landlord in connection with such
        litigation.

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

      

      28.    RESERVED
        RIGHTS OF LANDLORD

      

      Landlord
        reserves the following rights, exercisable without liability to Tenant for
        damage or injury to property, persons or business and without effecting an
        eviction, constructive or actual, or disturbance of Tenant's use or possession
        or giving rise to any claim:

      

      (a)           To
        name the Building and the Property and to change the name or street address
        of
        the Building or the Property;

      

      (b)           To
        install and maintain all signs on the exterior and interior of the Building
        and
        the Property;

      

      (c)           To
        designate all sources furnishing sign painting and lettering;

      

      (d)           During
        the last ninety (90) days of the Lease Term, if Tenant has vacated the Leased
        Premises, to decorate, remodel, repair, alter or otherwise prepare the Leased
        Premises for re-occupancy, without affecting Tenant's obligation to pay Monthly
        Basic Rent;

      

      (e)           To
        have pass keys to the Leased Premises and all doors therein, excluding Tenant's
        vaults and safes;

      

      (f)           On
        reasonable prior notice to Tenant, to exhibit the Leased Premises to any
        prospective purchaser, mortgagee, or assignee of any mortgage on the Building
        or
        the Property and to others having interest therein at any time during the
        Lease
        Term, and to prospective Tenants during the last six (6) months of the Lease
        Term.  Tenant reserves the right to require any visitors to
        its Leased Premises to sign a confidentiality agreement regarding its
        operations;

      

      (g)           To
        take any and all measures, including entering the Leased Premises for the
        purposes of making inspections, repairs, alterations, additions and improvements
        to the Leased Premises or to the Building (including, for the purposes of
        checking, calibrating, adjusting and balancing controls and other parts of
        the
        Building systems) as may be necessary or desirable for the operation,
        improvement, safety, protection or preservation of the Leased Premises or
        the
        Building, or in order to comply with all laws, orders and requirements of
        governmental or other authorities, or as may otherwise be permitted or required
        by this Lease; provided, however, that Landlord shall endeavor (except in
        an
        emergency) to minimize interference with Tenant's business in the Leased
        Premises;

      

      (h)           To
        relocate various facilities within the Building and on the Property if Landlord
        shall determine such relocation to be in the best interest of the development
        of
        the Building and the Property, provided, that such relocation shall not
        materially restrict access to the Leased Premises;

      

      (i)           To
        change the nature, extent, arrangement, use and location of the Building
        Common
        Areas;

      

      (j)           To
        make alterations or additions to and to build additional stories on the Building
        and to build additional buildings or improvements on the Property;
        and

      

      (k)           To
        install vending machines of all kinds in the Leased Premises and the Building,
        and to receive all of the revenue derived therefrom, provided, however, that
        no
        vending machines shall be installed by Landlord in the Leased Premises unless
        Tenant so requests.

      

      Landlord
        further reserves the exclusive right to the roof of the Building.  No
        easement for light, air, or view is included in the leasing of the Leased
        Premises to Tenant.  Accordingly, any diminution or shutting off of
        light, air or view by any structure which may be erected on the Property
        or
        other properties in the vicinity of the Building shall in no way affect this
        Lease or impose any liability upon Landlord.

       

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

      29.    EMINENT
        DOMAIN

      

      29.1           Taking.  If
        the whole of the Building is lawfully and permanently taken by condemnation
        or
        any other manner for any public or quasi-public purpose, or by deed in lieu
        thereof, this Lease shall terminate as of the date of vesting of title in
        such
        condemning authority and the Monthly Basic Rent and Additional Rent shall
        be pro
        rated to such date.  If any part of the Building or Property is so
        taken, or if the whole of the Building is taken, but not permanently, then
        this
        Lease shall be unaffected thereby, except that (a) Landlord may terminate
        this
        Lease by notice to Tenant within ninety (90) days after the date of vesting
        of
        title in the condemning authority, and (b) if twenty percent (20%) or more
        of
        the Leased Premises shall be permanently taken and the remaining portion
        of the
        Leased Premises shall not be reasonably sufficient for Tenant to continue
        operation of its business, Tenant may terminate this Lease by notice to Landlord
        within ninety (90) days after the date of vesting of title in such condemning
        authority.  This Lease shall terminate on the thirtieth (30th) day
        after receipt by Landlord of such notice, by which date Tenant shall vacate
        and
        surrender the Leased Premises to Landlord.  The Monthly Basic Rent and
        Additional Rent shall be pro rated to the earlier of the termination of this
        Lease or such date as Tenant is required to vacate the Leased Premises by
        reason
        of the taking.  If this Lease is not terminated as a result of a
        partial taking of the Leased Premises, the Monthly Basic Rent and Additional
        Rent shall be equitably adjusted according to the rentable area of the Leased
        Premises and Building remaining.

      

      29.2           Award.  In
        the event of a taking of all or any part of the Building or the Property,
        all of
        the proceeds or the award, judgment, settlement or damages payable by the
        condemning authority, except an amount equal to not less than the
        unamortized portion of tenant improvements initially installed by
        Tenant, shall be and remain the sole and exclusive property of
        Landlord, and Tenant hereby assigns all of its right, title and interest
        in and
        to any such award, judgment, settlement or damages to Landlord;
        provided, Landlord shall, immediately upon receipt of such payment, remit
        to
        Tenant a sum equal to the unamortized portion of Tenant’s
        improvements.  Tenant shall, however, have the right, to the
        extent that the same shall not reduce or prejudice amounts available to
        Landlord, to claim from the condemning authority, but not from Landlord,
        such
        compensation as may be recoverable by Tenant in its own right for relocation
        benefits, moving expenses, and damage to Tenant's personal property and trade
        fixtures.

      

      30.    NOTICES

      

      Any
        notice or communication given under the terms of this Lease shall be in writing
        and shall be delivered in person, sent by any public or private express delivery
        service or deposited with the United States Postal Service or a successor
        agency, certified or registered mail, return receipt requested, postage
        pre-paid, addressed as set forth in the Basic Provisions, or at such other
        address as a party may from time to time designate by notice
        hereunder.  Notice shall be effective upon delivery.  The
        inability to deliver a notice because of a changed address of which no notice
        was given or a rejection or other refusal to accept any notice shall be deemed
        to be the receipt of the notice as of the date of such inability to deliver
        or
        rejection or refusal to accept.  Any notice to be given by Landlord
        may be given by the legal counsel and/or the authorized agent of
        Landlord.

      

      31.    RULES
        AND
        REGULATIONS

      

      Tenant
        shall abide by all rules and regulations (the "Rules and Regulations") of
        the Building and the Property imposed by Landlord, as attached hereto as
        Exhibit
        "E" or as may hereafter be issued by Landlord.  Such Rules and
        Regulations are imposed to enhance the cleanliness, appearance, maintenance,
        order and use of the Leased Premises, the Building and the Property, and
        the
        proper enjoyment of the Building and the Property by all tenants and their
        clients, customers and employees.  The Rules and Regulations may be
        changed from time to time upon ten (10) days notice to Tenant.  Breach
        of the Rules and Regulations, by Tenant shall constitute an Event of Default
        if
        such breach is not fully cured within ten (10) days after written notice
        to
        Tenant by Landlord.  Landlord shall not be responsible to Tenant for
        nonperformance by any other tenant, occupant or invitee of the Building or
        the
        Property of any Rules or Regulations.

      

       

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

      32.    ACCORD
        AND
        SATISFACTION

       

      No
        payment by Tenant or receipt by Landlord of a lesser amount than the monthly
        installment of Monthly Basic Rent and Additional Rent (jointly called "Rent"
        in
        this Article 32), shall be deemed to be other than on account of the
        earliest stipulated Rent due and not yet paid, nor shall any endorsement
        or
        statement on any check or any letter accompanying any check or payment as
        Rent
        be deemed an accord and satisfaction.  Landlord may accept such check
        or payment without prejudice to Landlord's right to recover the balance of
        such
        Rent or to pursue any other remedy in this Lease.  No receipt of money
        by Landlord from Tenant after the termination of this Lease, after the service
        of any notice relating to the termination of this Lease, after the commencement
        of any suit, or after final judgment for possession of the Leased Premises,
        shall reinstate, continue or extend the Lease Term or affect any such notice,
        demand, suit or judgment.

      

      33.    BANKRUPTCY
        OF TENANT

      

      33.1           Chapter
        7.  If a petition is filed by, or an order for relief is entered
        against Tenant under Chapter 7 of the Bankruptcy Code and the trustee of
        Tenant
        elects to assume this Lease for the purpose of assigning it, the election
        or
        assignment, or both, may be made only if all of the terms and conditions
        of
Articles 33.2 and 33.4 below are satisfied.  If the trustee
        fails to elect to assume this Lease for the purpose of assigning it within
        sixty
        (60) days after appointment, this Lease will be deemed to have been
        rejected.  To be effective, an election to assume this Lease must be
        in writing and addressed to Landlord and, in Landlord's business judgment,
        all
        of the conditions hereinafter stated, which Landlord and Tenant acknowledge
        to
        be commercially reasonable, must have been satisfied.  Landlord shall
        then immediately be entitled to possession of the Premises without further
        obligation to Tenant or the trustee, and this Lease will be
        terminated.  Landlord's right to be compensated for damages in the
        bankruptcy proceeding, however, shall survive.

      

      33.2           Chapters
        11 and 13.  If Tenant files a petition for reorganization under
        Chapters 11 or 13 of the Bankruptcy Code or a proceeding that is filed by
        or
        against Tenant under any other chapter of the Bankruptcy Code is converted
        to a
        Chapter 11 or 13 proceeding and Tenant's trustee or Tenant as a
        debtor-in-possession fails to assume this Lease within sixty (60) days from
        the
        date of the filing of the petition or the conversion, the trustee or the
        debtor-in-possession will be deemed to have rejected this Lease.  To
        be effective, an election to assume this Lease must be in writing and addressed
        to Landlord and, in Landlord's business judgment, all of the following
        conditions, which Landlord and Tenant acknowledge to be commercially reasonable,
        must have been satisfied:

      

      (a)           The
        trustee or the debtor-in-possession has cured or has provided to Landlord
        adequate assurance, as defined in this Article 33.2, that;

      

      (1)           The
        trustee will cure all monetary defaults under this Lease within ten (I 0)
        days
        from the date of the assumption; and

      

      (2)           The
        trustee will cure all non-monetary defaults under this Lease within thirty
        (30)
        days from the date of the assumption.

      

      (b)           The
        trustee or the debtor-in-possession has compensated Landlord, or has provided
        to
        Landlord adequate assurance, as defined in this Article 33.2, that within
        ten (10) days from the date of the assumption Landlord will be compensated
        for
        any pecuniary loss it incurred arising from the default of Tenant, the trustee,
        or the debtor-in-possession as recited in Landlord's written statement of
        pecuniary loss sent to the trustee or the debtor-in-possession.  For
        purposes of this Lease, pecuniary loss shall include all attorneys' fees
        and
        court costs incurred by Landlord in connection with any bankruptcy proceeding
        filed by or against Tenant.

      

      (c)           The
        trustee or the debtor-in-possession has provided Landlord with adequate
        assurance of the future performance of each of Tenant's obligations under
        the
        Lease; provided, however, that:

      

      (1)           The
        trustee or debtor-in-possession will also deposit with Landlord as security
        for
        the timely payment of Monthly Basic Rent and Additional Rent, an amount equal
        to
        three months Monthly Basic Rent and Additional Rent accruing under this
        Lease.

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

          EXHIBIT
            10.1 - continued

        

      

       

       

      (2)           If
        not otherwise required by the terms of this Lease, the trustee or the
        debtor-in-possession will also pay in advance, on each day that the Monthly
        Basic Rent is payable, one twelfth of Tenant's estimated annual obligations
        under the Lease for the Additional Rent.

      

      (3)           From
        and after the date of the assumption of this Lease, the trustee or the
        debtor-in-possession will pay the Monthly Basic Rent and Additional
        Rent.

      

      (4)           The
        obligations imposed upon the trustee or the debtor-in-possession will continue
        for Tenant after the completion of bankruptcy proceedings.

      

      (d)           Landlord
        has determined that the assumption of the Lease will not:

      

      (1)           Breach
        any provisions in any other lease, mortgage, financing agreement, or other
        agreement by which Landlord is bound relating to the Property; or

      

      (2)           Disrupt,
        in Landlord's judgment, the tenant mix of the Building or any other attempt
        by
        Landlord to provide a specific variety of Tenants in the Building that, in
        Landlord's judgment, would be most beneficial to all of the tenants of the
        Building and would enhance the image, reputation, and profitability of the
        Building.

      

      (e)           For
        purposes of this Article 33.2 "adequate assurance" means
        that:

      

      (1)           Landlord
        will determine that the trustee or the debtor-in-possession has, and will
        continue to have, sufficient unencumbered assets after the payment of all
        secured obligations and administrative expenses to assure Landlord that the
        trustee or the debtor-in-possession will have sufficient funds to fulfill
        Tenant's obligations under this Lease and to keep the Leased Premises properly
        staffed with sufficient employees to conduct a fully operational, actively
        promoted business on the Leased Premises; and

      

      (2)           An
        order will have been entered segregating sufficient cash payable to Landlord
        and/or a valid and perfected first lien and security interest will have been
        granted in property of Tenant, trustee, or debtor-in-possession that is
        acceptable for value and kind to Landlord, to secure to Landlord the obligation
        of the trustee or debtor-in-possession to cure the monetary or non-monetary
        defaults under this Lease within the time periods set forth above.

      

      33.3           Landlord's
        Right to Terminate.  In the event that this Lease is assumed by a
        trustee appointed for Tenant or by Tenant as debtor-in-possession under the
        provisions of Article 33.2 above and, thereafter, Tenant is either adjudicated
        a
        bankrupt or files a subsequent petition for arrangement under chapter I 1
        of the
        Bankruptcy Code, then Landlord may terminate, at its option, this Lease and
        all
        Tenant's rights under it, by giving written notice of Landlord's election
        to
        terminate.

      

      33.4           Assignment
        by Trustee.  If the trustee or the debtor-in-possession has
        assumed the Lease, under the terms of Article 33.1 or 33.2 above, and
        elects to assign Tenant's interest under this Lease or the estate created
        by
        that interest to any other person, that interest or estate may be assigned
        only
        if Landlord acknowledges in writing that the intended assignee has provided
        adequate assurance, as defined in this Article 33.4, of future
        performance of all of the terms, covenants, and conditions of this Lease
        to be
        performed by Tenant.

      

      33.5           Adequate
        Assurance.  For the purposes of this Article 33 "adequate
        assurance of future performance" means that Landlord has ascertained that
        each of the following conditions has been satisfied:

      

      (1)           The
        assignee has submitted a current financial statement, audited by a certified
        public accountant, that shows a net worth and working capital in amounts
        determined by Landlord to be sufficient to assure the future performance
        by the
        assignee of Tenant's obligations under this Lease,

      

      (2)           If
        requested by Landlord, the assignee will obtain guarantees, in form and
        substance satisfactory to Landlord from one or more persons who satisfy
        Landlord's standards of creditworthiness;

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

      

      

      (3)           Landlord
        has obtained all consents or waivers from any third party required under
        any
        lease, mortgage, financing arrangement or other agreement by which Landlord
        is
        bound, to enable Landlord to permit the assignment;

      

      (4)           When,
        pursuant to the Bankruptcy Code, the trustee or the debtor-in-possession
        is
        obligated to pay reasonable use and occupancy charges for the use of all
        or part
        of the Leased Premises, the charges will not be less than the Monthly Basic
        Rent
        and Additional Rent.

      

      33.6           Consent
        of Landlord.  Neither Tenant's interest in the Lease nor any
        estate of Tenant created in the Lease will pass to any trustee, receiver,
        assignee for the benefit of creditors, or any other person or entity, or
        otherwise by operation of law under the laws of any state having jurisdiction
        of
        the person or property of Tenant unless Landlord consents in writing to the
        transfer.  Landlord's acceptance of Monthly Basic Rent or Additional
        Rent or any other payments from any trustee, receiver, assignee, person,
        or
        other entity will not be deemed to have waived, or waive, the need to obtain
        Landlord's consent or Landlord's right to terminate this Lease for any transfer
        of Tenant's interest under this Lease without that consent.

      

      34.    HAZARDOUS
        MATERIALS

      

      34.1           Hazardous
        Materials Laws."Hazardous Materials Laws" means any and all federal,
        state or local laws, ordinances, rules, decrees, orders, regulations or court
        decisions (including the so-called "common-law") relating to hazardous
        substances, hazardous materials, hazardous waste, toxic substances,
        environmental conditions on, under or about the Premises, or soil and ground
        water conditions, including, but not limited to, the Comprehensive Environmental
        Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended,
        42 U.S.C. §9601, et seq., the Resource Conversation and Recovery Act
("RCRA"), 42 U.S.C. §6901, et seq., the Hazardous Materials
        Transportation Act, 49 U.S.C. §1801, et seq., any amendments to the foregoing,
        and any similar federal, state or local laws, ordinances, rules, decrees,
        orders
        or regulations.

      

      34.2           Hazardous
        Materials."Hazardous Materials" means any chemical, compound,
        material, substance or other matter that: (i) is a flammable explosive,
        asbestos, radioactive material, nuclear medicine material, drug, vaccine,
        bacteria, virus, hazardous waste, toxic substance, petroleum product, or
        related
        injurious or potentially injurious material, whether injurious or potentially
        injurious by itself or in combination with other materials; (ii) is controlled,
        designated in or governed by any Hazardous Materials Law; (iii) gives rise
        to
        any reporting, notice or publication requirements under any Hazardous Materials
        Law; or (iv) gives rise to any liability, responsibility or duty on the part
        of
        Tenant or Landlord with respect to any third person under any Hazardous
        Materials Law.

      

      34.3           Use.  Tenant
        shall not allow any Hazardous Material to be used, generated, released, stored
        or disposed of on, under or about, or transported from, the Leased Premises,
        the
        Building or the Property, unless: (i) such use is specifically disclosed
        to and
        approved by Landlord in writing prior to such use; and (ii) such use is
        conducted in compliance with the provisions of this Article
        34.  Landlord may approve such use subject to reasonable conditions to
        protect the Leased Premises, the Building or the Property, and Landlord's
        interests.  Landlord may withhold approval if Landlord determines that
        such proposed use involves a material risk of a release or discharge of
        Hazardous Materials or a violation of any Hazardous Materials Laws or that
        Tenant has not provided reasonable assurances of its ability to remedy such
        a
        violation and fulfill its obligations under this Article 34.

      

      34.4           Compliance
        With Laws.  Tenant shall strictly comply with, and shall maintain
        the Leased Premises in compliance with, all Hazardous Materials
        Laws.  Tenant shall obtain and maintain in full force and effect all
        permits, licenses and other governmental approvals required for Tenant's
        operations on the Leased Premises under any Hazardous Materials Laws and
        shall
        comply with all terms and conditions thereof.  At Landlord's request,
        Tenant shall deliver copies of, or allow Landlord to inspect, all such permits,
        licenses and approvals.  Tenant shall perform any monitoring,
        investigation, clean-up, removal and other remedial work (collectively,
"Remedial Work") required as a result of any release or discharge of
        Hazardous Materials affecting the Leased Premises, the Building or the Property,
        or any violation of Hazardous Materials Laws by Tenant or any assignee or
        sublessee of Tenant or their respective agents, contractors, employees,
        licensees, or invitees.

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

       

      Landlord
        shall have the right to intervene in any governmental action or proceeding
        involving any Remedial Work, and to approve performance of the work, in order
        to
        protect Landlord's interests.

      

      34.5           Compliance
        With Insurance Requirements.  Tenant shall comply with the
        requirements of Landlord's and Tenant's respective insurers regarding Hazardous
        Materials and with such insurers' recommendations based upon prudent industry
        practices regarding management of Hazardous Materials.

      

      34.6           Notice:
        Reporting.  Tenant shall notify Landlord, in writing, as soon as
        reasonably possible, but in no event later than two (2) days after any of
        the
        following: (a) a release or discharge of any Hazardous Material, whether
        or not
        the release or discharge is in quantities that would otherwise be reportable
        to
        a public agency; (b) Tenant's receipt of any order of a governmental agency
        requiring any Remedial Work pursuant to any Hazardous Materials Laws; (c)
        Tenant's receipt of any warning, notice of inspection, notice of violation
        or
        alleged violation, or Tenant's receipt of notice or knowledge of any proceeding,
        investigation of enforcement action, pursuant to any Hazardous Materials
        Laws;
        or (d) Tenant's receipt of notice or knowledge of any claims made or threatened
        by any third party against Tenant or the Leased Premises, the Building or
        the
        Property, relating to any loss or injury resulting from Hazardous
        Materials.  Tenant shall deliver to Landlord copies of all test
        results, reports and business or management plans required to be filed with
        any
        governmental agency pursuant to any Hazardous Materials Laws.

      

      34.7           Termination;
        Expiration.  Upon the termination or expiration of this Lease,
        Tenant shall remove any equipment, improvements or storage facilities utilized
        in connection with any Hazardous Materials and shall, clean up, detoxify,
        repair
        and otherwise restore the Leased Premises to a condition free of Hazardous
        Materials.

      

      34.8           Indemnity.  Tenant
        shall protect, indemnify, defend and hold Landlord harmless from and against,
        and shall be responsible for, any and all claims, costs, expenses, suits,
        judgments, actions, investigations, proceedings and liabilities arising out
        of
        or in connection with any breach of any provisions of this Article 34 or
        directly or indirectly arising out of the use, generation, storage, release,
        disposal or transportation of Hazardous Materials by Tenant or any sublessee
        or
        assignee of Tenant, or their respective agents, contractors, employees,
        licensees, or invitees, on, under or about the Leased Premises, the Building
        or
        the Property during the Lease Term or Tenant's occupancy of the Leased Premises,
        including, but not limited to, all foreseeable and unforeseeable consequential
        damages and the cost of any Remedial Work.  Neither the consent by
        Landlord to the use, generation, storage, release, disposal or transportation
        of
        Hazardous Materials nor the strict compliance with all Hazardous Material
        Laws
        shall excuse Tenant from Tenant's indemnification obligations pursuant to
        this Article 34.  The foregoing indemnity shall be in addition
        to and not a limitation of the indemnification provisions of Article 16
        of this Lease.  Tenant's obligations pursuant to this Article
        34 shall survive the termination or expiration of this Lease.

      

      34.9           Assignment;
        Subletting.  If Landlord's consent is required for an assignment
        of this Lease or a subletting of the Leased Premises, Landlord shall have
        the
        right to refuse such consent if the possibility of a release of Hazardous
        Materials is materially increased as a result of the assignment or sublease
        or
        if Landlord does not receive reasonable assurances that the new tenant has
        the
        experience and the financial ability to remedy a violation of the Hazardous
        Materials Laws and fulfill its obligations under this Article
        34.

       

      34.10          Entry
        and Inspection; Cure.  Landlord and its agents, employees and
        contractors, shall have the right, but not the obligation, to enter the Leased
        Premises at all reasonable times to inspect the Leased Premises and Tenant's
        compliance with the terms and conditions of this Article 34, or to
        conduct investigations and tests.  No prior notice to Tenant shall be
        required in the event of an emergency, or if Landlord has reasonable cause
        to
        believe that violations of this Article 34 have occurred, or if Tenant
        consents at the time of entry.  In all other cases, Landlord shall
        give at least twenty-four (24) hours prior notice to Tenant.  Landlord
        shall have the right, but not the obligation, to remedy any violation by
        Tenant
        of the provisions of this Article 34 or to perform any Remedial Work
        which is necessary or appropriate as a result of any governmental order,
        investigation or proceeding.  Tenant shall pay, upon demand, as
        Additional Rent, all costs incurred by Landlord in remedying such violations
        or
        performing all Remedial Work, plus interest thereon at the Default Rate from
        the
        date of demand until the date received by Landlord.

      

      
        
          
            
            

          

          
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            EXHIBIT
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      34.11          Event
        of Default.  The release or discharge of any Hazardous Material or
        the violation of any Hazardous Materials Law shall constitute an Event of
        Default by Tenant under this Lease.  In addition to and not in lieu of
        the remedies available under this Lease as a result of such Event of Default,
        Landlord shall have the right, without terminating this Lease, to require
        Tenant
        to suspend its operations and activities on the Leased Premises until Landlord
        is satisfied that appropriate Remedial Work has been or is being adequately
        performed and Landlord's election of this remedy shall not constitute a waiver
        of Landlord's right thereafter to pursue the other remedies set forth in
        this
        Lease.

      

      35.    RESTRICTIONS

      

      Tenant
        and all persons in possession or holding under Tenant shall conform to and
        shall
        not violate the terms of any matters of record.  No use or operation
        will be made, conducted or permitted by Tenant on or with respect to all
        or any
        part of the Property which is obnoxious to or out of harmony with the
        development or operation of similar properties, including, without limitation,
        the following: (a) any public or private nuisance; (b) any noise or sound
        that
        is objectionable due to intermittency, beat, frequency, shrillness or loudness;
        (c) any obnoxious odor; (d) any noxious, toxic, caustic or corrosive fuel
        or
        gas; (e) any dust, dirt or fly ash in excessive quantities; (f) any unusual
        fire, explosion or other damaging or dangerous hazard; (g) any activity outside
        the ordinary course of business which physically and substantially interferes
        with the business of any other tenant or any other individual or entity using
        any portion of the Property; (h) the violation of any law, ordinance, or
        rule or
        regulation of any governmental authority having jurisdiction over the Property;
        or (i) for any other unreasonable use of the Property not compatible with
        the
        operation of a first-class industrial office development, including, without
        limitation, advertising media which can be heard or experienced in an annoying
        manner from the exterior of the Building, the Premises or the Property, or
        other
        improvement from which it emanates, such a searchlights, loud speakers,
        phonographs, radios or television.

      

      36.    MISCELLANEOUS

      

      36.1           Entire
        Agreement, Amendments.  This Lease and any Exhibits and Riders
        attached hereto and forming a part hereof, set forth all of the covenants,
        promises, agreements, conditions and under­standings between Landlord and
        Tenant concerning the Leased Premises and there are no covenants, promises,
        agreements, representations, warranties, conditions or understandings either
        oral or written between them other than as contained in this
        Lease.  Except as otherwise provided in this Lease, no subsequent
        alteration, amendment, change or addition to this Lease shall be binding
        unless
        it is in writing and signed by both Landlord and Tenant.

      

      36.2           Time
        of the Essence.  Time is of the essence of each and every term,
        covenant and condition of this Lease.

      

      36.3           Binding
        Effect.  The covenants and conditions of this Lease shall, subject
        to the restrictions on assignment and subletting, apply to and bind the heirs,
        executors, administrators, personal representatives, successors and assigns
        of
        the parties hereto.

      

      36.4           Recordation.  Neither
        this Lease nor any memorandum hereof shall be recorded by Tenant.  At
        the sole option of Landlord, Tenant and Landlord shall execute, and Landlord
        may
        record, a short form memorandum of this Lease in form and substance satisfactory
        to Landlord.

      

      36.5           Governing
        Law.  This Lease and all the terms and conditions thereof shall be
        governed by and construed in accordance with the laws of the State of
        Arizona.

      

      36.6           Defined
        Terms and Paragraph Headings.  The words "Landlord" and
"Tenant" as used in this Lease shall include the plural as well
        as the
        singular.  Words used in masculine gender include the feminine and
        neuter.  If there is more than one Tenant, the obligations in this
        Lease imposed upon Tenant shall be joint and several.  The paragraph
        headings and titles to the paragraphs of this Lease are not a part of this
        Lease
        and shall have no effect upon the construction or interpretation of any part
        hereof.

      

      
        
          
            
            

          

          
            28

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

       

      

      36.7           Representations
        and Warranties of Tenant.  Tenant represents and warrants to
        Landlord as follows:

      

      (a)           Tenant
        has been duly organized, is validly existing, and is in good standing under
        the
        laws of its state of Delaware and is
        qualified to transact business in Arizona.  All
        necessary action on the part of Tenant has been taken to authorize the
        execution, delivery and performance of this Lease and of the other documents,
        instruments and agreements, if any, provided for herein.  The persons
        who have executed this Lease on behalf of Tenant are duly authorized to do
        so;

      

      (b)           This
        Lease constitutes the legal, valid and binding obligation of Tenant, enforceable
        against Tenant in accordance with its terms, subject, however, to bankruptcy,
        insolvency, reorganization, arrangement, moratorium or other similar laws
        relating to or affecting the rights of creditors generally, general principles
        of equity, whether enforceability is considered in a proceeding in equity
        or at
        law, and to the qualification that certain waivers, procedures, remedies
        and
        other provisions of this Lease may be unenforceable under or limited by
        applicable law, however, none of the foregoing shall prevent the practical
        realization to Landlord of the benefits intended by this Lease;

      

      (c)           To
        the best of its knowledge, there are no suits, actions, proceedings or
        investigations pending, or to the best of its knowledge, threatened against
        or
        involving Tenant before any court, arbitrator or administrative or governmental
        body which might reasonably result in any material adverse change in the
        contemplated business, condition or operations of Tenant;

      

      (d)           To
        the best of its knowledge, Tenant is not, and the execution, delivery and
        performance of this Lease and the documents, instruments and agreements,
        if any,
        provided for herein will not result in any breach of or default under any
        other
        document, instrument or agreement to which Tenant is a party or by which
        Tenant
        is subject or bound;

      

      (e)           To
        the best of its knowledge, Tenant has obtained all required licenses and
        permits, both governmental and private, to use and operate the Leased Premises
        in the manner intended by this Lease; and

      

      (f)           All
        financial statements, tax returns and other financial information delivered
        by
        Tenant to Landlord prior to the execution of this Lease is true, correct
        and
        complete in all material respects and all financial statements, tax returns
        or
        other financial information to be delivered by Tenant to Landlord subsequent
        to
        the execution of this Lease shall be true, correct and complete in all material
        respects.

      

      36.8           No
        Waiver.  The failure of either party to insist in any one or more
        instances upon the strict performance of any one or more of the obligations
        of
        this Lease, or to exercise any election herein contained, shall not be construed
        as a waiver or relinquishment for the future of the performance of such one
        or
        more obligations of this Lease or the right to exercise such election, but
        the
        same shall continue and remain in full force and effect with respect to any
        subsequent breach, act or omission.

      

      36.9           Severability.  If
        any clause or provision of this Lease is or becomes illegal or unenforceable
        because of any present or future law or regulation of any governmental body
        or
        entity effective during the Lease Term, the intention of the parties is that
        the
        remaining provisions of this Lease shall not be affected thereby.

      

      36.10          Exhibits.  If
        any provision contained in an Exhibit, Rider or Addenda to this Lease is
        inconsistent with any other provision of this Lease, the provision contained
        in
        this Lease shall supersede the provisions contained in such Exhibit, Rider
        or
        Addenda, unless otherwise provided.

      

      36.11          Fair
        Meaning.  The language of this Lease shall be construed to its
        normal and usual meaning and not strictly for or against either Landlord
        or
        Tenant.  Landlord and Tenant acknowledge and agree that each party has
        reviewed and revised this Lease and that any rule of construction to the
        effect
        that ambiguities are to be resolved against the drafting party shall not
        apply
        to the interpretation of this Lease, or any Exhibits, Riders or amendments
        hereto.

      

      
        
          
            
            

          

          
            29

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

       

      

      36.12          No
        Merger.  The voluntary or other surrender of this Lease by Tenant
        or a mutual cancellation of this Lease shall not work as a merger and shall,
        at
        Landlord's option, either terminate any or all existing subleases or
        subtenancies, or operate as an assignment to Landlord of any or all of such
        subleases or subtenancies.

      

      36.13          Force
        Majeure.  Any prevention, delay or stoppage due to strikes,
        lockouts, labor disputes, acts of God, inability to obtain labor or materials
        for reasonable substitutes therefor, governmental restrictions, regulations
        or
        controls, judicial orders, enemy or hostile government actions, civil commotion,
        fire or other casualty and other causes beyond the reasonable control of
        Landlord shall excuse the Landlord's performance hereunder for the period
        of any
        such prevention, delay, or stoppage.

      

      36.14          Government
        Energy or Utility Controls.  In the event of the imposition of
        federal, state or local governmental controls, rules, regulations or
        restrictions on the use or consumption of energy or other utilities during
        the
        Lease Term, both Landlord and Tenant shall be bound thereby.  In the
        event of a difference in interpretation of any governmental control, rule,
        regulation or restriction between Landlord and Tenant, the interpretation
        of
        Landlord shall prevail, and Landlord shall have the right to enforce compliance,
        including the right of entry into the Leased Premises to effect
        compliance.

      

      36.15          Shoring.  If
        any excavation or construction is made adjacent to, upon or within the Building,
        or any part thereof, Tenant shall afford to any and all persons causing or
        authorized to cause such excavation or construction license to enter onto
        the
        Leased Premises for the purpose of doing such work as such persons shall
        deem
        necessary to preserve the Building or any portion thereof from injury or
        damage
        and to support the same by proper foundations, braces and supports without
        any
        claim for damages, indemnity or abatement of Monthly Basic Rent or Additional
        Rent or for a constructive or actual eviction of Tenant.

      

      36.16          Transfer
        of Landlord's Interest.  The term "Landlord" as used in
        this Lease, insofar as the covenants or agreements on the part of the Landlord
        are concerned, shall be limited to mean and include only the owner or owners
        of
        Landlord's interest in this Lease at the time in question.  Upon any
        transfer or transfers of such interest, the Landlord herein named (and in
        the
        case of any subsequent transfer, the then transferor) shall thereafter be
        relieved of all liability for the performance of any covenants or agreements
        on
        the part of the Landlord contained in this Lease.

      

      36.17          Limitation
        on Landlord's Liability.  If Landlord becomes obligated to pay
        Tenant any judgment arising out of any failure by the Landlord to perform
        or
        observe any of the terms, covenants, conditions or provisions to be performed
        or
        observed by Landlord under this Lease, Tenant shall be limited in the
        satisfaction of such judgment solely to Landlord's interest in the Building
        and
        the Property or any proceeds arising from the sale thereof and no other property
        or assets of Landlord or the individual partners, directors, officers or
        shareholders of Landlord or its constituent partners shall be subject to
        levy,
        execution or other enforcement procedure whatsoever for the satisfaction
        of any
        such money judgment.

      

      36.18          Brokerage
        Fees.  Tenant warrants and represents that it has not dealt with
        any Realtor, broker or agent in connection with this Lease except the Broker
        identified in Article 1.19 above.  Tenant shall indemnify,
        defend and hold Landlord harmless from and against, and shall be responsible
        for, any cost, expense or liability (including the cost of suit and reasonable
        attorneys' fees) for any compensation, commission or charges claimed by any
        other Realtor, broker or agent in connection with this Lease or by reason
        of any
        act of Tenant.

      

      36.19          Continuing
        Obligations.  All obligations of Lessee hereunder not fully
        performed as of the expiration or earlier termination of this Lease shall
        survive the expiration or earlier termination of this Lease, including, without
        limitation, all payment obligations with respect to Monthly Basic Rent,
        Additional Rent and all obligations concerning the condition of the
        Premises.

      

      36.20          Financial
        Statements.  If Landlord shall so request, Tenant shall, within
        thirty (30) days after receipt of such request, deliver to Landlord its most
        current financial statements including a balance sheet, a statement of income
        and expenses, and a statement of cash flows, all in reasonable detail and
        prepared according to generally accepted accounting principles, consistently
        applied.  Year-end statements shall be reviewed by an independent
        certified public accountant and interim statements shall be certified by
        Tenant,
        if Tenant is an individual, by the chief financial officer of Tenant, if
        Tenant
        is a corporation, by the manager or a member of Tenant if Tenant is a limited
        liability company or by a general partner of Tenant, if Tenant is a
        partnership.  Tenant shall supply Landlord with audited financial
        statements if Tenant prepares audited financial statements in the ordinary
        course of its business.

      

      
        
          
            
            

          

          
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            EXHIBIT
              10.1 - continued

          

        

      

       

      

      IN
        WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the date
        and
        year first above written.

       

       

      
        	 	LANDLORD:
                ACOMA,
                  LLC, a Virginia limited liability company 

              
	 	 	 
	 	By: 	 /s/  Martin
                Dehaan
	 	 	      
                Martin H. DeHaan, Member
	 	 	 
	 	
                TENANT:

                STUDIO
                  ONE MEDIA, INC., a Delaware corporation 

              
	 	 	 
	 	 By: 	 /s/  Kenneth
                Pinckard 
	 	 Name:	      
                Kenneth Pinckard   
	 	 Its: 	      
                Vice President   
	 	 	 

      

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

          EXHIBIT
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      If
        Tenant
        is a CORPORATION, the authorized officers must sign on behalf of the
        corporation and indicate the capacity in which they are signing.  The
        Lease must be executed by the president or vice-president and the
        secretary or assistant secretary, unless the bylaws or a resolution of
        the board of directors shall otherwise provide, in which event, the bylaws
        or a
        certified copy of the resolution, as the case may be, must be attached to
        this
        Lease.

       

       

       

       

       

      

      

      
        
          
            
            

          

          
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            EXHIBIT
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      EXHIBIT
        "A"

       

      SITE
        PLAN

      

      

      

       

      

      

      
        
          
            
            

          

          
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            EXHIBIT
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      EXHIBIT
        "B"

       

      DESCRIPTION
        OF THE PROPERTY

      

      

      Legal
        Description:  Unit 8 of Acoma Business Center, a condominium as
        created by that certain Declaration recorded August 26, 1997 in 97-586525,
        and
        as shown on the plat of said condominium recorded in Book 448 of Maps, Page
        20,
        and amended in Book 450 of Maps, Page 17, in the office of the County Recorder
        of Maricopa County, Arizona.

      

      

      

       

      

      

      
        
          
            
            

          

          
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            EXHIBIT
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      EXHIBIT
        "C"

       

      FLOOR
        PLAN

      

      

      (To
        be
        inserted when completed and approved)

       

       

      

      

      

      

      
        
          
            
            

          

          
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            EXHIBIT
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      EXHIBIT
        "E"

      

      RULES
        AND REGULATIONS

      

      1.           Unless
        otherwise specifically defined herein, all capitalized terms in these Rules
        and
        Regulations shall have the meaning set forth in the Lease to which these
        Rules
        and Regulations are attached.

      

      2.           The
        sidewalks, driveways, entrances, passages, courts, elevators, vestibules,
        stairways, corridors or halls of the Building and the Property shall not
        be
        obstructed or encumbered or used for any purpose other than ingress and egress
        to and from the premises demised to any tenant or occupant.  The
        halls, passages, exits, entrances, elevators, stairways, balconies and roof
        are
        not for the use of the general public, and the Landlord shall in all cases
        retain the right to control and prevent access thereto by all persons whose
        presence in the judgment of Landlord shall be prejudicial to the safety,
        character, reputation and interests of the Building and its
        tenants.

      

      3.           No
        awnings or other projection shall be attached to the outside walls or windows
        of
        the Building.  No curtains, blinds, shades, or screens shall be
        attached to or hung in, or used in connection with, any window or door of
        the
        premises demised to any tenant or occupant, without the prior written consent
        of
        Landlord.  All electrical fixtures hung in any premises demised to any
        tenant or occupant must be of a type, quality, design, color, size and general
        appearance approved by Landlord.

      

      4.           No
        tenant shall place objects against glass partitions, doors or windows which
        would be in sight from the Building corridors or from the exterior of the
        Building and such tenant will promptly remove any such objects when requested
        to
        do so by Landlord.

      

      5.           The
        windows and doors that reflect or admit light and air into the halls,
        passageways or other public places in the Building shall not be covered or
        obstructed, nor shall any bottles, parcels, or other articles be placed on
        any
        window sills.

      

      6.           No
        show cases or other articles shall be put in front of or affixed to any part
        of
        the exterior of the Building or the other buildings in the Property, nor
        placed
        in the halls, corridors, walkways, landscaped areas, vestibules or other
        public
        parts of the Building or the Property.

      

      7.           The
        restrooms, water and wash closets and other plumbing fixtures shall not be
        used
        for any purposes other than those for which they were constructed, and no
        sweepings, rubbish, rags or other substances shall be thrown
        therein.  The reasonable costs incurred by Landlord (a) for extra
        cleaning in any restroom, water or wash closet required because of any misuse
        of
        such restroom, water or wash closet, and/or (b) to repair any damage resulting
        from any misuse of the fixtures will be borne by the tenant who, or whose
        employees, agents, visitors or licensees, caused the same.  No tenant
        shall bring or keep, or permit to be brought or kept, any flammable,
        combustible, explosive or hazardous fluid, material, chemical or substance
        in or
        about the premises demised to such tenant or the Property.

      

      8.           No
        tenant or occupant shall mark, paint, drill into, or in any way deface any
        part
        of the Property, the Building or the premises demised to such tenant or
        occupant.  No boring, cutting or strings of wires shall be permitted,
        except with the prior consent of Landlord, and as Landlord may
        direct.  No tenant or occupant shall install any resilient tile or
        similar floor covering in the premises demised to such tenant or occupant
        except
        in a manner approved by Landlord,

      

      9.           Any
        carpeting cemented down by a tenant shall be installed with a releasable
        adhesive.  In the event of a violation of the foregoing by a tenant,
        Landlord may charge the expense incurred in such removal to such
        tenant.

      

      10.           No
        bicycles, vehicles or animals of any kind (except seeing eye dogs) shall
        be
        brought into or kept in or about the premises demised to any
        tenant.   No tenant shall cause or permit any unusual or
        objectionable odors to emanate from the premises demised to such
        tenant.

      

      
        
          
            
            

          

          
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            EXHIBIT
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      11.           No
        space in the Building or the Property shall be used for manufacturing, for
        the
        storage of merchandise, or for the sale of merchandise, goods or property
        of any
        kind at auction.

      

      12.           No
        tenant and no employee, visitor, agent, or licensee of any Tenant shall make,
        or
permit
        to
        be made, any unseemly or disturbing noises or vibrations or disturb or interfere
        with other tenants or occupants of the Building or neighboring buildings
        or
        premises whether by the use of any musical
        instrument, radio, television set, broadcasting equipment or other audio
        device,
        noise, whistling, singing, yelling or screaming, or in any other
        way.  Nothing shall be thrown out of any doors.  No tenant
        and no employee, visitor, agent, or licensee of any Tenant shall conduct
        itself
        in any manner that is inconsistent with the character of the Building as
        a first
        quality building or that will impair the comfort, convenience or safety of
        other
        tenants in the Building.

      

      13.           No
        additional locks or bolts of any kind shall be placed upon any of the doors,
        nor
        shall any changes be made in locks or the mechanism thereof.  Each
        tenant must, upon the termination of its tenancy, return to Landlord all
        keys of
        stores, offices and toilet rooms, either furnished to, or otherwise procured
        by,
        such Tenant.

      

      14.           All
        removals from the Building, or the carrying in or out of the Building or
        from
        the premises demised to any tenant, of any safes, freight, furniture or bulky
        matter of any description must take place at such time and in such manner
        as
        Landlord or its agents may determine, from time to time.  Landlord
        reserves the right to inspect all freight to be brought into the Building
        and to
        exclude from the Building all freight which violates any of the Rules and
        Regulations or the provisions of such tenant's lease.

      

      15.           No
        tenant or occupant shall engage or pay any employees in the Building or the
        Property, except those actually working for such tenant or occupant in the
        Building or the Property, nor advertise for day laborers giving an address
        at
        the Building or the Property.

      

      16.           Deleted.

      

      17.           Landlord
        shall have the right to prohibit any advertising by any tenant or occupant
        which, in Landlord's opinion, tends to impair the reputation of the Building
        or
        the Property or its desirability as a building for offices, and upon notice
        from
        Landlord, such tenant or occupant shall refrain from or discontinue such
        advertising.

      

      18.           Each
        tenant, before closing and leaving the premises demised to such tenant at
        any
        time, shall see that all entrance doors are locked and all electrical equipment
        and lighting fixtures are turned off.  Corridor doors, when not in
        use, shall be kept closed.

      

      19.           Each
        tenant shall, at its expense, provide artificial light in the premises demised
        to such tenant for Landlord's agents, contractors and employees while performing
        janitorial or other cleaning services and making repairs or alterations in
        said
        premises.

      

      20.           No
        premises shall be used, or permitted to be used for lodging or sleeping,
        or for
        any immoral or illegal purposes or in any matter that, in Landlord's reasonable
        business judgment, threatens the safety of the Building or the tenants of
        the
        Building and their employees and invitees.  In addition, each tenant
        shall maintain its furniture, fixtures and equipment within its premises
        in a
        manner that presents a pleasant appearance both in daylight and nighttime
        from
        the surrounding streets and roadways.

      

      21.           The
        requirements of tenants will be attended to only upon application at the
        management office of Landlord.  Building employees shall not be
        required to perform, and shall not be requested by any tenant or occupant
        to
        perform, and work outside of their regular duties, unless under specific
        instructions from the office of Landlord.

      

      22.           Canvassing,
        soliciting and peddling in the Building or the Property are prohibited and
        each
        tenant and occupant shall cooperate in seeking their prevention.

      

      23.           There
        shall not be used in the Building, either by any tenant or occupant or by
        their
        agents or contractors, in the delivery or receipt of merchandise, freight
        or
        other matter, any hand trucks or other means of conveyance except those equipped
        with rubber tires, rubber side guards and such other safeguards as Landlord
        may
        require.

      

      
        
          
            
            

          

          
            37

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

       

      

      24.           If
        the premises demised to any tenant become infested with vermin, such tenant,
        at
        its sole cost and expense, shall cause its premises to be exterminated, from
        time to time, to the satisfaction of Landlord, and shall employ such
        exterminators therefor as shall be approved in writing by Landlord.

      

      25.           No
        premises shall be used, or permitted to be used, at any time, as a store
        for the
        sale or display of goods, wares or merchandise of any kind, or as a restaurant,
        shop, booth, bootblack or other stand, or for the conduct of any business
        or
        occupation which predominantly involves direct patronage of the general public
        in the premises demised to such tenant, or for manufacturing or for other
        similar purposes.

      

      
        	
                 

              	
                26.

              	
                No
                  tenant shall clean any window of the Building from the
                  outside.

              

      

      

      27.           No
        tenant shall move, or permit to be moved, into or out of the Building or
        the
        premises demised to such tenant, any heavy or bulky matter, without the specific
        approval of Landlord.  If any such matter requires special handling,
        only a qualified person shall be employed to perform such special
        handling.  No tenant shall place or permit to be placed, on any part
        of the floor or floors of the premises demised to such tenant, a load exceeding
        the floor load per square foot which such floor was designed to carry and
        which
        is allowed by law.  Landlord reserves the right to prescribe the
        weight and position of safes and other heavy objects, which must be placed
        so as
        to distribute the weight.

      

      28.           With
        respect to work being performed by a tenant in its premises with the approval
        of
        Landlord, the tenant shall refer all contractors, contractors' representatives
        and installation technicians to Landlord for its supervision, approval and
        control prior to the performance of any work or services.  This
        provision shall apply to all work performed in the Building and the Property
        including installation of telephones, telegraph equipment, electrical devices
        and attachments, and installations of every nature affecting floors, walls,
        woodwork, trim, ceilings, equipment and any other physical portion of the
        Building and the Property.

      

      29.           Landlord
        shall not be responsible for lost or stolen personal property, equipment,
        money,
        or jewelry from the premises of tenants or public rooms whether or not such
        loss
        occurs when the Building or the premises are locked against entry.

      

      30.           Landlord
        may permit entrance to the premises of tenants by use of pass keys controlled
        by
        Landlord employees, contractors, or service personnel directly supervised
        by
        Landlord and employees of the United States Postal Service.

      

      31.           Each
        tenant and all of tenant's representatives, shall observe and comply with
        the
        directional and parking signs on the property surrounding the Building, and
        Landlord shall not be responsible for any damage to any vehicle towed because
        of
        non-compliance with parking regulations.

      

      32.           No
        tenant shall install any radio, telephone, television, microwave or satellite
        antenna, loudspeaker, music system or other device on the roof or exterior
        walls
        of the Building or on common walls with adjacent tenants or in the Common
        Areas without first obtaining written permission by Landlord, which
        permission shall not be unreasonably withheld.

      

      

      
        
          
            
            

          

          
            38

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      33.           Each
        tenant shall collect all trash and garbage within its
        premises.  No material shall be placed in the trash boxes or
        receptacles in the Building or the Property unless such material may be disposed
        of in the ordinary and customary manner of removing and disposing of trash
        and
        garbage and will not result in a violation of any law or ordinance governing
        such disposal.  All garbage and refuse disposal shall be
placed in the dumpster located at the rear of the Leased
        Premises.

      

      34.           Deleted

      

      35.           Each
        tenant shall give prompt notice to landlord of any accidents to or defects
        in
        plumbing, electrical or heating apparatus so that same may be attended to
        properly.

      

      36.           No
        tenant shall bring onto the Property or into the Building any pollutants,
        contaminants, inflammable, gasolines, kerosene or hazardous substances (as
        now
        or later defined under State or Federal law).

      

      37.           All
        tenants and tenants' servants, employees, agents, visitors, invitees and
        licensees shall observe faithfully and comply strictly with the foregoing
        Rules
        and Regulations and such other and further appropriate Rules and Regulations
        as
        Landlord or Landlord's agent from time to time adopt.  Each tenant
        shall at all times keep the premises leased to such tenant, its employees,
        agents and invitees under its control so as to prevent the performance of
        any
        act that would damage the Building or its reputation or the premises leased
        to
        such tenant or could injure, annoy, or threaten the security of the other
        tenants in the Building or their respective employees, agents or invitees
        or the
        public.

      

      39.           Landlord
        may deny entrance to the Building and may remove from the Building any person
        or
        persons who appear to be or are intoxicated, or who appear to be or are under
        the influence of liquor or drugs, or who are in any manner violating any
        of the
        Building Rules and Regulations, or who present a hazard or nuisance to any
        other
        person.  The reasonable costs incurred by Landlord for security
        services or other costs reasonably incurred by Landlord to remove any such
        persons shall be borne by the tenant whose employees, agents and/or invitees
        are
        so removed.

      

      40.           Landlord
        shall furnish each tenant, at Landlord's expense, with two (2) keys to unlock
        the entry level doors and two (2) keys to unlock each corridor door entry
        to
        each tenant's premises and, at such tenant's expense, with such additional
        keys
        as such tenant may request.  Tenant may  make as
        many of its own keys to its Leased Premises as it desires. Any lost key
        shall be subject to a replacement charge as established by Landlord from
        time to
        time.  Upon the expiration of the Lease Term, each tenant shall
        surrender all such keys to Landlord and shall deliver to Landlord the
        combination to all looks on all safes, cabinets and vaults which will remain
        in
        the premises demised to that tenant.  Landlord shall be entitled to
        install, operate and maintain security systems in or about the Property which
        monitor, by computer, close circuit television or otherwise, persons entering
        or
        leaving the Property, the Building and/or the premises demised to any
        tenant.  For the purposes of this rule the term "keys" shall mean
        traditional metallic keys, plastic or other key cards and other lock opening
        devices.

      

      41.           Each
        person using the Parking Accommodations or other areas designated by Landlord
        where parking will be permitted shall comply with all Rules and Regulations
        adopted by Landlord with respect to the Parking Accommodations or other areas,
        including any employee or visitor parking restrictions, and any sticker or
        other
        identification system established by Landlord.  Landlord may refuse to
        permit any person who violates any parking rule or regulation to park in
        the
        Parking Accommodations or other areas, and may remove any vehicle which is
        parked in the Parking Accommodations or other areas in violation of the parking
        Rules and Regulations.  The Rules and Regulations applicable to the
        Parking Accommodations and the outside parking areas are as
        follows:

      

      
        	
                 

              	
                (a)

              	
                The
                  maximum speed limit within the Parking Accommodations shall be
                  5 miles per
                  hour, the maximum speed limit in other parking areas shall be 15
                  miles per
                  hour.

              

      

      

      
        	
                 

              	
                (b)

              	
                All
                  directional signs and arrows must be strictly
                  observed.

              

      

       

      
        
          
            
            

          

          
            39

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      
        	
              	
                (c)

              	
                All
                  vehicles must be parked entirely within painted stall
                  lines.

              

      

      

      
        	
                 

              	
                (d)

              	
                No
                  intermediate or full-size car may be parked in any parking space
                  reserved
                  for a compact car; no bicycle, motorcycle or other two or three
                  wheeled
                  vehicle, and no truck, van or other oversized vehicle, may be parked
                  in
                  any area not specifically designated for use
                  thereby.

              

      

      

      
        	
                 

              	
                (e)

              	
                No
                  vehicle may be parked (i) in an area not striped for parking, (ii)
                  in a
                  space which has been reserved for visitors or for another person
                  or firm,
                  (iii) in an aisle or on a ramp, (iv) where a "no parking" sign
                  is posted
                  or which has otherwise designated as a no parking area, (v) in
                  a cross
                  hatched area, (vi) in an area bearing a "handicapped parking only"
                  or
                  similar designation unless the vehicle bears an appropriate handicapped
                  designation, (vii) in an area bearing a "loading zone" or similar
                  designation unless the vehicle is then engaged in a loading or
                  unloading
                  function and (viii) in an area with a posted height limitation
                  if the
                  vehicle exceeds the limitation.

              

      

      

      
        	
                 

              	
                (f)

              	
                Each
                  operator shall use the Parking Facilities at his or her own risk
                  and shall
                  bear full responsibility for all damage to or loss of his or her
                  vehicle,
                  and for all injury to persons and damage to property caused by
                  his or her
                  operation of the vehicle.

              

      

      

      
        	
                 

              	
                (g)

              	
                Landlord
                  reserves the right to tow away, at the expense of the owner, any
                  vehicle
                  which is inappropriately parked or parked in violation of these
                  Rules and
                  Regulations.

              

      

      

      42.           Landlord
        reserves the right at any time and from time to time to rescind, alter or
        waive,
        in whole or in part, any of the Building Rules and Regulations when it is
        deemed
        necessary, desirable or proper, in Landlord's judgment for its best interest
        or
        of the best interests of the tenants of the Property.

      

      43.           Bicycles,
        motorcycles and other two or three-wheeled vehicles may only be stored or
        parked
        in areas designated, from time to time, by Landlord.

      

      Tenant
        hereby acknowledges receipt of the Building Rules and Regulations.

       

      
         

        
          	 	
                  TENANT:

                  STUDIO
                    ONE MEDIA, INC.

                
	 	 	 
	 	 By: 	 /s/  Kenneth
                  Pinckard 
	 	 Name:	      
                  Kenneth Pinckard   
	 	 Its: 	      
                  Vice President   
	 	 	 

        

         

      

       

      

      

      

      

      
        
          
            
            

          

          
            40

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      EXHIBIT
        "F"

       

      WORK
        LETTER

      

      In
        order
        to induce Landlord to enter into the Lease (which is incorporated herein
        by
        reference to the extent that the provisions of this Work Letter may apply
        thereto) and in consideration of the mutual covenants
        hereinafter contained, Landlord and Tenant agree as follows:

      

      1.           Completion
        Schedule. Attached to this Work Letter is a schedule (the "Work
        Schedule") setting forth the time table for the planning and completion of
        the installation of the tenant improvements to be constructed in the Leased
        Premises (the "Tenant Improvements").  The Work Schedule sets
        forth each of the various items of work to be done in connection with the
        completion of the Tenant Improvements and shall become the basis for completing
        the Tenant Improvements.  Landlord and Tenant acknowledge and agree
        that time is of the essence with respect to their respective obligations
        as set
        forth in this Work Letter.  Tenant’s failure to perform the completion
        of the installation of the tenant improvements within the time table shall
        constitute an immediate event of default under the Lease.

      

      2.           Tenant
        Improvements.  The Tenant Improvements shall include the
        work described on Annex I to this Exhibit "F", which work shall be
        done in the Leased Premises pursuant to the Tenant Improvements Plans described
        in Paragraph 3 below.

      

      3.           Tenant
        Improvement Plans.  Tenant shall meet with the chosen
        architect and/or space planner for the purposes of preparing a space plan
        for
        the layout of the Premises.  Based upon such space plan, the architect
        shall prepare final working drawings and specifications for the Tenant
        Improvements.  Such final working drawings and specifications are
        referred to in this Work Letter as the "Tenant Improvement
        Plans."  The architect shall be chosen by mutual agreement between
        Landlord and Tenant to achieve the best work in the minimum amount of time
        and
        cost.

      

      4.           Preparation
        of Tenant Improvement Plans and Final Pricing.  After the
        preparation of the space plan and after Tenant's approval thereof in accordance
        with the Work Schedule, Tenant shall cause the architect to prepare and submit
        to Landlord the Tenant Improvement Plans.  Promptly after the approval
        of the Tenant Improvement Plans by Landlord and Tenant in accordance with
        the
        Work Schedule, the Tenant Improvement Plans shall be submitted to the
        appropriate governmental body for plan checking and building
        permits.  Tenant, with Landlord's cooperation, shall cause to be made
        such changes in the Tenant Improvement Plans necessary to obtain required
        permits.

      

      5.           Construction
        of Tenant Improvements.  While the Tenant Improvement
        Plans are being prepared and approved, and building permits for the Tenant
        Improvements are being obtained, Tenant shall enter into a construction contract
        with a contractor for the installation of the Tenant Improvements in accordance
        with the Tenant Improvement Plans.  The Tenant Improvements shall be
        constructed in a good, workmanlike and lien free manner, and in conformance
        with
        applicable building codes.  Tenant shall supervise the completion of
        the Tenant Improvements and shall endeavor in good faith to secure the
        completion of the Tenant Improvements in accordance with the Work
        Schedule.  All costs of the Tenant Improvements, including
        architectural, engineering, and City permits shall be paid by
        Tenant.

      

      6.         Payment
        of Tenant Improvements by Tenant.  To insure prompt and
        full payments to the chosen contractor for the tenant improvements, Tenant
        shall
        set up a cash escrow with the Landlord in the full amount of the estimated
        construction costs at the time the contract with the contractor has been
        signed.  Tenant shall provide Landlord with an executed copy of the
        construction contract along with the cash escrow.

      

      

      

      

      
        
          
            
            

          

          
            41

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      

      ANNEX
        I

      

      

      Work
        Schedule (to be inserted when determined)

      

      Time
        frame for construction project is November 1, 2007 through January 31,
        2008

      

      Architectural
        Plans by Pinnacle Design dated ____(to be completed by November 20,
        2007)

      

      Construction
        Contract (to be attached when completed)

      

      

      
 

      

      

      

      
        
          
            
            

          

          
            42

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      RIDER
        “1” TO LEASE

      

      

      
        	
                This
                  Rider “1” to Lease dated October 29, 2007 is attached to and made a part
                  of the Lease by and between ACOMA, LLC., a Virginia limited liability
                  company  ("Landlord"), and  STUDIO ONE MEDIA,
                  INC. a Delaware corporation
                  ("Tenant").

              

      

       

      

      

      1.  Rental
        Schedule.

      

      02/01/08
        – 01/31/09 – 12 months - $  9,147.00 per month plus
        applicable sales tax

      02/01/09
        – 01/31/10 – 12 months - $  9,421.41 per month plus
        applicable sales tax

      02/01/10
        – 01/31/11 – 12 months - $  9,704.05 per month plus
        applicable sales tax

      02/01/11
        – 01/31/12 – 12 months - $  9,995.17 per month plus
        applicable sales tax

      02/01/12
        – 01/31/13 – 12 months - $10,295.03 per month plus applicable
        sales tax

      

      2.    Signage.  Landlord
        grants the right to Tenant to place its name on the building wall above the
        entry door.  The cost of this signage will be at Tenant’s expense and
        will be constructed after receiving approval from the Landlord and in accordance
        with the City of Scottsdale sign code.  Landlord, at its expense, will
        place Tenant’s name in vinyl letters on the Suite entry door.

      

      3.  Operating
        Costs.  Tenant shall commence to pay the Operating Costs on
        February 1, 2008.

      

      4.  Definitions.  Capitalized
        terms used in this Rider without definition shall have the definition assigned
        to such terms in the Lease to which this Rider is attached, unless the context
        requires otherwise.

       

      5.   Full
        Force and Effect.  Except as specifically modified by this Rider,
        the Lease to which this Rider is attached remains in full force and
        effect.

       

      

      

      
        	 	 	 
	 Landlord's
                Initials 	 	
                 Tenant's
                  Initials

              

      

      

      

      

       

      

      

      

      

      
        
          
            
            

          

          
            43

            
              

            

          

          
            
            

            EXHIBIT
              10.1 - continued

          

        

      

      

      RIDER
        “2” TO LEASE

       

      
        

        
          	
                  
                    This
                      Rider “2” to Lease dated October 29, 2007 is attached to and made a part
                      of the Lease by and between ACOMA, LLC, a Virginia limited
                      liability
                      company ("Landlord"), and STUDIO ONE MEDIA, INC., a Delaware
                      corporation
                      ("Tenant").

                  

                

        

         

         

      

      

      1.           Option
        to Extend.  Provided that Tenant is not in breach or default of
        any of the terms, conditions, covenants, obligations or provisions of the
        Lease
        to which this Rider is attached, then Tenant shall have, and is hereby granted,
        the option to extend the term of this Lease for one period of five (5)
        years.  If Tenant desires to exercise its option to extend the Initial
        Term, Tenant must give Landlord notice in writing of its intent to do so
        at
        least nine (9) months prior to the expiration of the Initial
        term. The Annual Basic Rental payable by Tenant to Landlord during the
first year of the Renewal Term shall be the rental during the last
        year
        of the initial term increased by 7%, and thereafter with annual bumps to
        be
        mutually agreed to at the time of the renewal.

       

      (a)           The
        determination of the Annual Basic Rental does not reduce the Tenant’s obligation
        to pay or reimburse Landlord for operating expenses and other reimbursable
        items
        as set forth in the Lease, and Tenant shall reimburse and pay Landlord as
        set
        forth in the Lease with respect to such operating expenses and other items
        with
        respect to the Premises during the Renewal Term.

      

      (b)           Except
        for this Option to Extend and the Annual Basic Rental as determined above,
        Tenant’s occupancy of the Premises during the extended term shall be on the same
        terms and conditions as are in effect immediately prior to the expiration
        of the
        initial Lease Term.

       

      (c)           If
        the Lease is extended for an additional lease term, then Landlord shall prepare
        and Tenant shall execute an amendment to the Lease confirming the extension
        to
        the Lease Term and the other provisions applicable thereto (the
“Amendment”).

      

      (d)           If
        Tenant exercises its right to extend the term of the Lease for the extended
        term
        pursuant to this exhibit, the term “Lease Term” as used in the Lease, shall be
        construed to include, when practicable, the extended term except as provided
        in
        (e) above.

      

      2.           Definitions.  Capitalized
        terms used in this Rider without definition shall have the definition assigned
        to such terms in the Lease to which this Rider is attached, unless the context
        requires otherwise.

       

      3.           Full
        Force and Effect.  Except as specifically modified by this Rider,
        the Lease to which this Rider is attached remains in full force and
        effect.

       

       

      
        

        
          	 	 	 
	 Landlord's
                  Initials 	 	
                   Tenant's
                    Initials

                

        

        
 

        44

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