Document:

EX-10.1

 

EXHIBIT 10.1

 

FORM OF FOURTH AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

NY CREDIT OPERATING PARTNERSHIP LP

a Delaware limited partnership

 

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),

OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,

TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH

REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO THE PARTNERSHIP

AN OPINION OF COUNSEL SATISFACTORY TO THE PARTNERSHIP, IN FORM

AND SUBSTANCE SATISFACTORY TO THE PARTNERSHIP, TO THE EFFECT

THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE

EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND UNDER

APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

AMENDED AND RESTATED AS OF [  ], 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I	 	DEFINED TERMS
	 	 	2	 
	ARTICLE II	 	ORGANIZATIONAL MATTERS
	 	 	15	 
	     Section 2.1.	 	Organization
	 	 	15	 
	     Section 2.2.	 	Name
	 	 	15	 
	     Section 2.3.	 	Registered Office and Agent; Principal Office
	 	 	16	 
	     Section 2.4.	 	Appointment of the General Partner
	 	 	16	 
	     Section 2.5.	 	Power of Attorney
	 	 	16	 
	     Section 2.6.	 	Term
	 	 	17	 
	ARTICLE III	 	PURPOSE
	 	 	17	 
	     Section 3.1.	 	Purpose and Business
	 	 	17	 
	     Section 3.2.	 	Powers
	 	 	18	 
	     Section 3.3.	 	Partnership Only for Partnership Purposes Specified
	 	 	18	 
	     Section 3.4.	 	Representations and Warranties by the Parties
	 	 	18	 
	ARTICLE IV	 	CAPITAL CONTRIBUTIONS
	 	 	19	 
	     Section 4.1.	 	Capital Contributions of the Partners
	 	 	19	 
	     Section 4.2.	 	Classes of Partnership Units
	 	 	19	 
	     Section 4.3.	 	Issuances of Additional Partnership Interests
	 	 	20	 
	     Section 4.4.	 	Additional Funds and Capital Contributions
	 	 	21	 
	     Section 4.5.	 	Equity Incentive Plan
	 	 	22	 
	     Section 4.6.	 	LTIP Units
	 	 	23	 
	     Section 4.7.	 	Conversion of LTIP Units
	 	 	25	 
	     Section 4.8.	 	No Interest; No Return
	 	 	28	 
	     Section 4.9.	 	Other Contribution Provisions
	 	 	28	 
	     Section 4.10.	 	Not Publicly Traded
	 	 	28	 
	ARTICLE V	 	DISTRIBUTIONS
	 	 	28	 
	     Section 5.1.	 	Requirement and Characterization of Distributions
	 	 	28	 
	     Section 5.2.	 	Distributions In-Kind
	 	 	29	 
	     Section 5.3.	 	Amounts Withheld
	 	 	29	 
	     Section 5.4.	 	Distributions Upon Liquidation
	 	 	29	 
	     Section 5.5.	 	Distributions to Reflect Issuance of Additional Partnership Units
	 	 	29	 
	     Section 5.6.	 	Restricted Distributions
	 	 	29	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VI	 	ALLOCATIONS
	 	 	29	 
	     Section 6.1.	 	Timing and Amount of Allocations of Net Income and Net Loss
	 	 	29	 
	     Section 6.2.	 	General Allocations
	 	 	29	 
	     Section 6.3.	 	Additional Allocation Provisions
	 	 	31	 
	     Section 6.4.	 	Tax Allocations
	 	 	33	 
	ARTICLE VII	 	MANAGEMENT AND OPERATIONS OF BUSINESS
	 	 	33	 
	     Section 7.1.	 	Management
	 	 	33	 
	     Section 7.2.	 	Certificate of Limited Partnership
	 	 	37	 
	     Section 7.3.	 	Restrictions on General Partner’s Authority
	 	 	37	 
	     Section 7.4.	 	Reimbursement of the General Partner and Parent
	 	 	39	 
	     Section 7.5.	 	Outside Activities of the General Partner
	 	 	40	 
	     Section 7.6.	 	Contracts with Affiliates
	 	 	40	 
	     Section 7.7.	 	Indemnification
	 	 	41	 
	     Section 7.8.	 	Liability of the General Partner
	 	 	42	 
	     Section 7.9.	 	Other Matters Concerning the General Partner and the Parent
	 	 	43	 
	     Section 7.10.	 	Title to Partnership Assets
	 	 	44	 
	     Section 7.11.	 	Reliance by Third Parties
	 	 	44	 
	ARTICLE VIII	 	RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS
	 	 	45	 
	     Section 8.1.	 	Limitation of Liability
	 	 	45	 
	     Section 8.2.	 	Management of Business
	 	 	45	 
	     Section 8.3.	 	Outside Activities of Limited Partners
	 	 	45	 
	     Section 8.4.	 	Return of Capital
	 	 	45	 
	     Section 8.5.	 	Adjustment Factor
	 	 	46	 
	     Section 8.6.	 	Redemption
	 	 	46	 
	ARTICLE IX	 	BOOKS, RECORDS, ACCOUNTING AND REPORTS
	 	 	48	 
	     Section 9.1.	 	Records and Accounting
	 	 	48	 
	     Section 9.2.	 	Reports
	 	 	49	 
	ARTICLE X	 	TAX MATTERS
	 	 	49	 
	     Section 10.1.	 	Preparation of Tax Returns
	 	 	49	 
	     Section 10.2.	 	Tax Elections
	 	 	49	 
	     Section 10.3.	 	Tax Matters Partner
	 	 	50	 
	     Section 10.4.	 	Withholding
	 	 	50	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	     Section 10.5.	 	Organizational Expenses
	 	 	51	 
	ARTICLE XI	 	TRANSFERS AND WITHDRAWALS
	 	 	51	 
	     Section 11.1.	 	Transfer
	 	 	51	 
	     Section 11.2.	 	Transfer of General Partner’s Partnership Interest
	 	 	52	 
	     Section 11.3.	 	Transfer of Limited Partners’ Partnership Interests
	 	 	52	 
	     Section 11.4.	 	Substituted Limited Partners
	 	 	54	 
	     Section 11.5.	 	Assignees
	 	 	54	 
	     Section 11.6.	 	General Provisions
	 	 	55	 
	ARTICLE XII	 	ADMISSION OF PARTNERS
	 	 	56	 
	     Section 12.1.	 	Admission of Successor General Partner
	 	 	56	 
	     Section 12.2.	 	Admission of Additional Limited Partners
	 	 	56	 
	     Section 12.3.	 	Amendment of Agreement and Certificate of Limited Partnership
	 	 	57	 
	     Section 12.4.	 	Limit on Number of Partners
	 	 	57	 
	ARTICLE XIII	 	DISSOLUTION, LIQUIDATION AND TERMINATION
	 	 	57	 
	     Section 13.1.	 	Dissolution
	 	 	57	 
	     Section 13.2.	 	Winding Up
	 	 	58	 
	     Section 13.3.	 	Deemed Distribution and Recontribution
	 	 	60	 
	     Section 13.4.	 	Rights of Limited Partners
	 	 	60	 
	     Section 13.5.	 	Notice of Dissolution
	 	 	60	 
	     Section 13.6.	 	Cancellation of Certificate of Limited Partnership
	 	 	60	 
	     Section 13.7.	 	Reasonable Time for Winding-Up
	 	 	60	 
	ARTICLE XIV	 	PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS
	 	 	61	 
	     Section 14.1.	 	Procedures for Actions and Consents of Partners
	 	 	61	 
	     Section 14.2.	 	Amendments
	 	 	61	 
	     Section 14.3.	 	Meetings of the Partners
	 	 	61	 
	ARTICLE XV	 	GENERAL PROVISIONS
	 	 	62	 
	     Section 15.1.	 	Addresses and Notice
	 	 	62	 
	     Section 15.2.	 	Titles and Captions
	 	 	62	 
	     Section 15.3.	 	Pronouns and Plurals
	 	 	62	 
	     Section 15.4.	 	Further Action
	 	 	62	 
	     Section 15.5.	 	Binding Effect
	 	 	62	 
	     Section 15.6.	 	Waiver
	 	 	62	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	     Section 15.7.	 	Counterparts
	 	 	63	 
	     Section 15.8.	 	Applicable Law
	 	 	63	 
	     Section 15.9.	 	Entire Agreement
	 	 	63	 
	     Section 15.10.	 	Invalidity of Provisions
	 	 	63	 
	     Section 15.11.	 	Limitation to Preserve REIT Status
	 	 	63	 
	     Section 15.12.	 	No Partition
	 	 	64	 
	     Section 15.13.	 	No Third-Party Rights Created Hereby
	 	 	64	 
	     Section 15.14.	 	No Rights as Members of General Partner or Stockholders of Parent
	 	 	64	 
	     Section 15.15.	 	Creditors
	 	 	64	 

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FORM OF FOURTH AMENDED AND RESTATED AGREEMENT OF LIMITED

PARTNERSHIP OF NY CREDIT OPERATING PARTNERSHIP LP

          THIS FOURTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF NY CREDIT OPERATING
PARTNERSHIP LP, dated as of [     ], 2007, is entered into by and among:

	 	(a)	 	NYCC GP LLC, a Maryland limited liability company (the “General Partner”); and
	 
	 	(b)	 	the LIMITED PARTNERS listed on Exhibit A hereto (each, a “Limited
Partner”).

RECITALS:

	A.	 	NY Credit Real Estate Fund I, L.P., a Delaware limited partnership (together with its
successors and assigns, the “Partnership”), was formed pursuant to a Certificate of
Limited Partnership dated as of March 9, 2005, which was executed by NY Credit Real Estate GP,
LLC, a Delaware limited liability company (the “Original General Partner”) and filed
in the office of the Secretary of State of Delaware on that date.
	 
	B.	 	Pursuant to that certain Amended and Restated Agreement of Limited Partnership dated as of
March 16, 2005 (the “Original Agreement”), among the Original General Partner, New
York Life Insurance Company, a New York mutual life insurance company (“NYLIC”), and
ROKI LLC, a Delaware limited liability company (“ROKI”), the parties thereto set forth
their agreements with respect to the business and affairs of the Partnership.
	 
	C.	 	The Original Agreement was further amended pursuant to that certain Second Amended and
Restated Agreement of Limited Partnership dated as of March 16, 2005, which was amended
pursuant to that certain Amendment to the Second Amended and Restated Agreement of Limited
Partnership dated as of October 20, 2006 (together, the “October 2006 Agreement”)
among the Original General Partner, NYLIC and ROKI.
	 
	D.	 	On November 10, 2006, the Original General Partner, NYLIC and ROKI agreed to (i) change the
name of the Partnership to “NY Credit Operating Partnership LP”; (ii) admit NYCT Business
Trust I, a Maryland business trust, as the general partner of the Partnership; (iii) have
their respective interests in the Partnership (including, without limitation, their respective
Percentage Interests (as defined in the October 2006 Agreement)) and the interests of any
other Persons from time to time admitted as Partners expressed as a number of Partnership
Units; (iv) admit certain Persons as Limited Partners; (v) allow the Original General Partner
to withdraw as general partner; and (vi) amend and restate the October 2006 Agreement in its
entirety as set forth in the Third Amended and Restated Agreement of Limited Partnership dated
as of November 10, 2006 (the “November Agreement”).
	 
	E.	 	On November 10, 2006, (i) the Original General Partner resigned as a general partner of the
Partnership, and the Partners and the Partnership accepted such resignation; and (ii) an
amendment to the Certificate was submitted for filing in the office of the Secretary of State
of Delaware that, among other things, provided for the appointment of NYCT Business Trust I as
the general partner of the Partnership, the resignation of the Original General Partner as the
general partner of the Partnership and the change in the name of the Partnership.
	 
	F.	 	The Original General Partner agreed to exchange all of its interest in the Partnership for OP
Units and the Partnership agreed to effect such exchange. In connection therewith, the
Original General Partner

 

 

	 	 	instructed the Partnership to distribute such OP Units among the Original General Partner’s
members and the Partnership agreed to make such distribution and admit such Persons as Limited
Partners.
	 
	G.	 	Pursuant to that certain Purchase Agreement, dated as of April 19, 2007, entered into by and
among ROKI and the Partnership, the Partnership redeemed ROKI’s entire Partnership Interest.
	 
	H.	 	NY Credit Operating Company LLC (the “Operating Company”) acquired a Partnership
Interest in the Partnership, which Partnership Interest represents a $35,000,000 OP Unit
Capital Commitment and a $15,000,000 Class B Capital Commitment, with $24,448,351 of the OP
Unit Capital Commitment and $0 of the Class B Capital Commitment being deemed to be funded as
of April 19, 2007.
	 
	I.	 	ROKI withdrew as a Limited Partner of the Partnership and the Operating Company was admitted
as a Limited Partner of the Partnership on April 19, 2007.
	 
	J.	 	The name of the General Partner changed from “NYCT
Business Trust I” to “NYCC GP LLC” and
changed from a Maryland business trust to a Maryland corporation on April 19, 2007.
	 
	K.	 	The parties hereto desire to enter into this Agreement to incorporate the amendments
previously agreed to in the First Amendment to the November Agreement, dated April 19, 2007
(as amended, the “Existing Agreement”).

NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants contained in
this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree (a) that from and after the date hereof the terms
and conditions of the Existing Agreement are hereby superceded by the following terms and
conditions and (b) as follows:

ARTICLE I

DEFINED TERMS

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

          “Act” means the Delaware Revised Uniform Limited Partnership Act (6 Del. C. § 17-101
et seq.), as it may be amended from time to time, and any successor to such statute.

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

          “Additional Funds” has the meaning set forth in Section 4.4.A hereof.

          “Additional Limited Partner” means a Person who is admitted to the Partnership as a
Limited Partner pursuant to Section 4.3 and Section 12.2 hereof and who is shown as
such on the books and records of the Partnership.

          “Adjusted Capital Account” means the Capital Account maintained for each Partner as of
the end of each Fiscal Year (i) increased by any amounts which such Partner is obligated to restore
pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the
penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) and (ii) decreased by
the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and
1.704-

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1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital Account is intended to comply
with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
consistently therewith.

          “Adjusted Capital Account Deficit” means, with respect to any Partner, the deficit
balance, if any, in such Partner’s Adjusted Capital Account as of the end of the relevant
Partnership Year.

          “Adjustment Event” has the meaning set forth in Section 4.6.A hereof.

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

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

     (ii) the Parent distributes any rights, options or warrants to all holders of its REIT
Shares to subscribe for or to purchase or to otherwise acquire REIT Shares (or other
securities or rights convertible into, exchangeable for or exercisable for REIT Shares) at a
price per share less than the Value of a REIT Share on the record date for such distribution
(each a “Distributed Right”), then the Adjustment Factor shall be adjusted by
multiplying the Adjustment Factor previously in effect by a fraction (a) the numerator of
which shall be the number of REIT Shares issued and outstanding on the record date plus the
maximum number of REIT Shares purchasable under such Distributed Rights and (b) the
denominator of which shall be the number of REIT Shares issued and outstanding on the record
date plus a fraction (1) the numerator of which is the maximum number of REIT Shares
purchasable under such Distributed Rights times the minimum purchase price per REIT Share
under such Distributed Rights and (2) the denominator of which is the Value of a REIT Share
as of the record date; provided, however, that, if any such Distributed
Rights expire or become no longer exercisable, then the Adjustment Factor shall be adjusted,
effective retroactive to the date of distribution of the Distributed Rights, to reflect a
reduced maximum number of REIT Shares or any change in the minimum purchase price for the
purposes of the above fraction; or

     (iii) the Parent shall, by dividend or otherwise, distribute to all holders of its REIT
Shares evidences of its indebtedness or assets (including securities, but excluding any
dividend or distribution referred to in subsection (i) above), which evidences of
indebtedness or assets relate to assets not received by the Parent or its Subsidiaries
pursuant to a pro rata distribution by the Partnership, then the Adjustment Factor shall be
adjusted to equal the amount determined by multiplying the Adjustment Factor in effect
immediately prior to the close of business on the date fixed for determination of
stockholders entitled to receive such distribution by a fraction (i) the numerator of which
shall be such Value of a REIT Share on the date fixed for such determination and (ii) the
denominator of which shall be the Value of a REIT Share on the dates fixed for such
determination less the then fair market value (as determined by the Parent, whose
determination shall be conclusive) of the portion of the evidences of indebtedness or assets
so distributed applicable to one REIT Share.

- 3 -

 

          Any adjustments to the Adjustment Factor shall become effective immediately after the
effective date of such event, retroactive to the record date, if any, for such event.

          “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling or controlled by or under common control with such Person. For the purposes of this
definition, “control” when used with respect to any Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

          “Agreement” means this Fourth Amended and Restated Agreement of Limited Partnership of
NY Credit Operating Partnership LP, as it may be amended, supplemented or restated from time to
time.

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

          “Available Cash” means, with respect to any period for which such calculation is being
made, the amount of cash available for distribution by the Partnership as determined by the General
Partner.

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

          “Bylaws” means the Bylaws of the Parent, as amended, supplemented or restated from
time to time.

          “Capital Account” means, with respect to any Partner, the Capital Account maintained
by the General Partner for such Partner on the Partnership’s books and records in accordance with
the following provisions:

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

     B. From each Partner’s Capital Account, there shall be subtracted the amount of cash
and the Gross Asset Value of any property distributed to such Partner pursuant to any
provision of this Agreement, such Partner’s distributive share of Net Losses and any items
in the nature of expenses or losses that are specially allocated pursuant to Section
6.3 hereof, and the principal amount of any liabilities of such Partner assumed by the
Partnership or that are secured by any property contributed by such Partner to the
Partnership.

     C. In the event any interest in the Partnership is Transferred in accordance with the
terms of this Agreement, the transferee shall succeed to the Capital Account of the
transferor to the extent that it relates to the Transferred interest.

     D. In determining the principal amount of any liability for purposes of subsections (a)
and (b) hereof, there shall be taken into account Code Section 752(c) and any other
applicable provisions of the Code and Regulations.

- 4 -

 

     E. The provisions of this Agreement relating to the maintenance of Capital Accounts are
intended to comply with Regulations Sections 1.704-1(b) and 1.704-2, and shall be
interpreted and applied in a manner consistent with such Regulations. If the General
Partner shall determine that it is prudent to modify the manner in which the Capital
Accounts are maintained in order to comply with such Regulations, the General Partner may
make such modification provided that such modification will not have a material
effect on the amounts distributable to any Partner without such Partner’s Consent. The
General Partner also shall (i) make any adjustments that are necessary or appropriate to
maintain equality between the Capital Accounts of the Partners and the amount of Partnership
capital reflected on the Partnership’s balance sheet, as computed for book purposes, in
accordance with Regulations Section 1.704-1(b)(2)(iv)(q) and (ii) make any appropriate
modifications in the event that unanticipated events might otherwise cause this Agreement
not to comply with Regulations Section 1.704-1(b) or Section 1.704-2.

     “Capital Account Deficit” has the meaning set forth in Section 13.2.C hereof.

     “Capital Account Limitation” has the meaning set forth in Section 4.7.B
hereof.

     “Capital Contribution” means, with respect to any Partner, the amount of money and the
initial Gross Asset Value of any Contributed Property that such Partner contributes to the
Partnership or is deemed to contribute pursuant to Section 4.4 hereof.

     “Cash Amount” means, with respect to a Tendering Party, an amount of cash equal to the
product of (A) the Value of a REIT Share and (B) such Tendering Party’s REIT Shares Amount
determined as of the date of receipt by the General Partner of such Tendering Party’s Notice of
Redemption or, if such date is not a Business Day, the immediately preceding Business Day.

     “Certificate” means the Certificate of Limited Partnership of the Partnership filed in
the office of the Secretary of State of the State of Delaware on March 9, 2005, as amended from
time to time in accordance with the terms hereof and the Act.

     “Charter” means the Articles of Incorporation of the Parent as filed with the State
Department of Assessments and Taxation of Maryland, as amended, supplemented or restated from time
to time.

     “Closing Price” has the meaning set forth in the definition of “Value.”

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

     “Company Employee” means any employee of the Partnership, the Parent and any of their
respective Subsidiaries.

     “Consent” means the consent to, approval of, or vote in favor of a proposed action by
a Partner given in accordance with Article XIV hereof.

     “Constituent Person” has the meaning set forth in Section 4.7.F.

     “Conversion Date” has the meaning set forth in Section 4.7.B.

     “Conversion Notice” has the meaning set forth in Section 4.7.B.

- 5 -

 

     “Conversion Right” has the meaning set forth in Section 4.7.A.

     “Contributed Property” means each item of Property or other asset, in such form as may
be permitted by the Act, but excluding cash, contributed or deemed contributed to the Partnership
(or deemed contributed by the Partnership to a “new” partnership pursuant to Code Section 708) net
of any liabilities assumed by the Partnership relating to such Contributed Property and any
liability to which such Contributed Property is subject.

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

     “Debt Assets” means investment opportunities in first mortgage, mezzanine and
subordinated interests, both senior and high yield debt instruments or other similar instruments,
direct or indirect, in single or multiple real estate properties or assets (including, for all
purposes hereunder, land, buildings and other improvements, development projects and related
personal or intangible property), pools or portfolios of real estate properties or assets, partial
interests or rights in real estate properties or assets, options, rights of refusal, rights of
offer and similar rights in respect of real estate assets or properties or portions thereof, real
estate operating or service companies, real estate investment trusts, or similar assets or
interests.

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

     “Distributed Right” has the meaning set forth in the definition of “Adjustment
Factor.”

     “Economic Capital Account Balances” has the meaning set forth in Section 6.3.C
hereof.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Equity Incentive Plan” means any equity incentive plan hereafter adopted by the
Partnership or the Parent.

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

- 6 -

 

     “Forced Conversion” has the meaning set forth in Section 4.7.C.

     “Forced Conversion Notice” has the meaning set forth in Section 4.7.C.

     “Funding Debt” means the incurrence of any Debt for the purpose of providing funds to
the Partnership by or on behalf of the Parent or any wholly owned subsidiary of the Parent.

     “General Partner” means NYCC GP LLC, a Maryland limited liability company, and its
successors and assigns, as the general partner of the Partnership.

     “General Partner Interest” means the Partnership Interest held by the General Partner,
which Partnership Interest is an interest as a general partner under the Act. A General Partner
Interest may be expressed as a number of OP Units, Preferred Units, Junior Units or any other
Partnership Units.

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

     (a) The initial Gross Asset Value of any asset contributed by a Partner to the
Partnership shall be the gross fair market value of such asset as determined by the General
Partner.

     (b) The Gross Asset Values of all Partnership assets immediately prior to the
occurrence of any event described in clause (i), clause (ii), clause (iii), clause (iv) or
clause (v) hereof shall be adjusted to equal their respective gross fair market values, as
determined by the General Partner using such reasonable method of valuation as it may adopt,
as of the following times:

     (i) the acquisition of an additional interest in the Partnership (other than in
connection with the execution of this Agreement but including, without limitation,
acquisitions pursuant to Section 4.2 hereof or contributions or deemed
contributions by the General Partner pursuant to Section 4.2 hereof) by a
new or existing Partner in exchange for more than a de minimis Capital Contribution,
if the General Partner reasonably determines that such adjustment is necessary or
appropriate to reflect the relative economic interests of the Partners in the
Partnership; provided that the issuance of any LTIP Unit shall be deemed to require
a recalculation pursuant to this subsection;

     (ii) 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, if the
General Partner reasonably determines that such adjustment is necessary or
appropriate to reflect the relative economic interests of the Partners in the
Partnership;

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

     (iv) upon the admission of a successor General Partner pursuant to Section
12.1 hereof; and

     (v) at such other times as the General Partner shall reasonably determine
necessary or advisable in order to comply with Regulations Sections 1.704-1(b) and
1.704-2.

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     (c) The Gross Asset Value of any Partnership asset distributed to a Partner shall be
the gross fair market value of such asset on the date of distribution as determined by the
distributee and the General Partner provided that, if the distributee is the General
Partner or if the distributee and the General Partner cannot agree on such a determination,
such gross fair market value shall be determined by an independent third party experienced
in the valuation of similar assets, selected by the General Partner or the Parent in good
faith.

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

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

     “Holder” means either (a) a Partner or (b) an Assignee, owning a Partnership Unit,
that is treated as a member of the Partnership for federal income tax purposes.

     “Incapacity” or “Incapacitated” means, (i) as to any Partner who is an
individual, death, total physical disability or entry by a court of competent jurisdiction
adjudicating such Partner incompetent to manage his or her person or his or her estate; (ii) as to
any Partner that is a corporation or limited liability company, the filing of a certificate of
dissolution, or its equivalent, or the revocation of the corporation’s charter; (iii) as to any
Partner that is a partnership, the dissolution and commencement of winding up of the partnership;
(iv) as to any Partner that is an estate, the distribution by the fiduciary of the estate’s entire
interest in the Partnership; (v) as to any Partner that is a trust, the termination of the trust
(but not the substitution of a new trustee); or (vi) as to any Partner, the bankruptcy of such
Partner. For purposes of this definition, bankruptcy of a Partner shall be deemed to have occurred
when (a) the Partner commences a voluntary 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, (b) 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, (c) the Partner executes and delivers a general
assignment for the benefit of the Partner’s creditors, (d) 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 (b) above, (e) the Partner seeks,
consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner
or for all or any substantial part of the Partner’s properties, (f) any proceeding seeking
liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law
now or hereafter in effect has not been dismissed within 120 days after the commencement thereof,
(g) the appointment without the Partner’s consent or acquiescence of a trustee, receiver or
liquidator has not been vacated or stayed within 90 days of such appointment, or (h) an appointment
referred to in clause (g) above is not vacated within 90 days after the expiration of any such
stay.

     “Indemnitee” means (i) any Person made a party to a proceeding by reason of its status
as (A) the General Partner or the Parent or any successor thereto or (B) a manager or member of the
General Partner, a director of the Parent, a member of the Investment Committee of the Parent or
the Partnership,

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or an officer or employee of the Partnership, the General Partner or the Parent and (ii) such
other Persons (including Affiliates of the General Partner, the Partnership or the Parent) 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.

     “Investment Committee” has the meaning set forth in Section 7.9.D hereof.

     “IRS” means the Internal Revenue Service, which administers the internal revenue laws
of the United States.

     “Junior Stock” means a share of stock of the Parent now or hereafter authorized or
reclassified that has dividend rights, or rights upon liquidation, winding up and dissolution, that
are junior in rank to the REIT Shares.

     “Junior Unit” means a fractional share of the Partnership Interests that the General
Partner has authorized pursuant to Section 4.1, 4.3 or 4.4 hereof that has
distribution rights, or rights upon liquidation, winding up and dissolution, that are junior in
rank to the OP Units.

     “Limited Partner” means any Person named as a Limited Partner in Exhibit A
attached hereto, as such Exhibit A may be amended from time to time, or any Substituted
Limited Partner or Additional Limited Partner, in such Person’s capacity as a Limited Partner of
the Partnership.

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

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

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

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

     “LTIP Unit” means a Partnership Unit which is designated as an LTIP Unit and which has
the rights, preferences and other privileges designated in Section 4.6 hereof and elsewhere
in this Agreement in respect of Holders of LTIP Units. The allocation of LTIP Units among the
Partners shall be set forth on Exhibit A, as may be amended from time to time.

     “LTIP Unitholder” means a Partner that holds LTIP Units.

     “Majority in Interest of the Outside Limited Partners” means Outside Limited Partners
holding more than 50% of the outstanding OP Units held by all Outside Limited Partners.

     “Market Price” has the meaning set forth in the definition of “Value.”

     “Net Income” or “Net Loss” means, for each Partnership Year of the
Partnership, an amount equal to the Partnership’s taxable income or loss for such year, determined
in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or
deduction required to be stated

- 9 -

 

separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
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 Net Income (or Net Loss) pursuant to this
definition of “Net Income” or “Net Loss” shall be added to (or subtracted
from, as the case may be) such taxable income (or loss);

     (b) Any expenditure of the Partnership described in Code Section 705(a)(2)(B) or
treated as a Code Section 705(a)(2)(B) expenditure pursuant to Regulations Section
1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Income (or Net
Loss) pursuant to this definition of “Net Income” or “Net Loss,” shall be
subtracted from (or added to, as the case may be) such taxable income (or loss);

     (c) In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to
subsection (b) or subsection (c) of the definition of “Gross Asset Value,” the
amount of such adjustment shall be taken into account as gain or loss from the disposition
of such asset for purposes of computing Net Income or Net Loss;

     (d) Gain or loss resulting from any disposition of property with respect to which gain
or loss is recognized for federal income tax purposes shall be computed by reference to the
Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis
of such property differs from its Gross Asset Value;

     (e) In lieu of the depreciation, amortization and other cost recovery deductions that
would otherwise be taken into account in computing such taxable income or loss, there shall
be taken into account Depreciation for such Partnership Year;

     (f) To the extent that an adjustment to the adjusted tax basis of any Partnership asset
pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to Regulations
Section 1.704-1(b)(2)(iv)(m)(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 asset) or loss (if the adjustment decreases the basis
of the asset) from the disposition of the asset and shall be taken into account for purposes
of computing Net Income or Net Loss; and

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

     “New Securities” means (i) any rights, options, warrants or convertible or
exchangeable securities having the right to subscribe for or purchase REIT Shares, Preferred Stock
or Junior Stock, except that “New Securities” shall not mean any Preferred Stock, Junior
Stock or grants under any Equity Incentive Plan or (ii) any Debt issued by the REIT that provides
any of the rights described in clause (i).

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     “Nonrecourse Deductions” has the meaning set forth in Regulations Section
1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Partnership Year shall be determined
in accordance with the rules of Regulations Section 1.704-2(c).

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

     “Notice of Redemption” means the Notice of Redemption substantially in the form of
Exhibit B attached to this Agreement.

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

     “Onex” means Onex Corporation, an Ontario corporation.

     “OP Unit” means a fractional share of the Partnership Interests of all Partners issued
pursuant to Sections 4.1 and 4.2 hereof, but does not include any LTIP Unit,
Preferred Unit, Junior Unit or any other Partnership Unit specified in a Partnership Unit
Designation as being other than an OP Unit; provided, however, that the General
Partner Interest and the Limited Partner Interests shall have the differences in rights and
privileges as specified in this Agreement.

     “OP Unit Economic Balance” has the meaning set forth in Section 6.3.C hereof.

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

     “Original General Partner” has the meaning set forth in the Recitals.

     “Outside Director” shall mean a director of the Parent who is not also a Company
Employee.

     “Outside Limited Partners” means Limited Partners, excluding for this purpose (i) any
Limited Partnership Interests held by the Parent or its Subsidiaries, (ii) any Person of which the
Parent or its Subsidiaries directly or indirectly owns or controls more than 50% of the voting
interests and (iii) any Person directly or indirectly owning or controlling more than 50% of the
outstanding interests of the General Partner; provided, however, that when the Parent or its
Subsidiaries hold Limited Partnership Interests which are directed by a third-party who would
otherwise qualify under this definition (including Onex who controls decisions with respect to the
Parent’s indirectly held Limited Partnership Interests prior to an initial public offering), then
the Parent or such Subsidiary is deemed to be an Outside Limited Partner for purposes of such
Limited Partnership Interests.

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

     “Parent” means NY Credit Corp., a Maryland corporation.

     “Partner” means the General Partner or a Limited Partner, and “Partners” means
the General Partner and the Limited Partners.

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

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

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

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

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

     “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 Partnership Minimum Gain, for a Partnership Year shall be determined in accordance with the
rules of Regulations Section 1.704-2(d).

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

     “Partnership Unit” shall mean an OP Unit, an LTIP Unit, a Preferred Unit, a Junior
Unit or any other fractional share of the Partnership Interests that the General Partner has
authorized pursuant to Section 4.1, 4.2, 4.3 or 4.4 hereof.

     “Partnership Unit Designation” has the meaning set forth in Section 4.4
hereof.

     “Partnership Unit Distribution” has the meaning set forth in Section 4.6.A
hereof.

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

     “Percentage Interest” means, as to a Partner holding a class or series of Partnership
Interests, its interest in such class or series as determined by dividing the Partnership Units of
such class or series owned by such Partner by the total number of Partnership Units of such class
then outstanding as specified in Exhibit A attached hereto, as such Exhibit may be
amended from time to time. If the Partnership issues additional classes or series of Partnership
Interests other than as contemplated herein, the interest in the Partnership among the classes or
series of Partnership Interests shall be determined as set forth in the amendment to the
Partnership Agreement setting forth the rights and privileges of such additional classes or series
of Partnership Interest, if any, as contemplated by Section 4.3.

     “Person” means an individual or a corporation, partnership, trust, unincorporated
organization, association, limited liability company or other entity.

     “Preferred Stock” means a share of stock of the Parent now or hereafter authorized or
reclassified that has dividend rights, or rights upon liquidation, winding up and dissolution, that
are superior or prior to the REIT Shares.

     “Preferred Unit” means a fractional share of the Partnership Interests that the
General Partner has authorized pursuant to Section 4.1, 4.3 or 4.4 hereof
that has distribution rights, or rights upon liquidation, winding up and dissolution, that are
superior or prior to the OP Units.

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     “Properties” means any assets and property of the Partnership such as, but not limited
to, Debt Assets, interests in real property and personal property, including, without limitation,
fee interests, interests in ground leases, interests in limited liability companies, joint ventures
or partnerships, interests in mortgages, mezzanine loans, “B-notes,” participation interests in
mortgages, mezzanine loans and “B-notes” and Debt instruments as the Partnership may hold from time
to time and “Property” shall mean any one such asset or property.

     “Publicly Traded” means listed or admitted to trading on the New York Stock Exchange,
the American Stock Exchange or another national securities exchange or designated for quotation on
The NASDAQ Global Market, or any successor to the foregoing.

     “Qualified REIT Subsidiary” means a qualified REIT subsidiary of the Parent within the
meaning of Code Section 856(i)(2).

     “Qualified Transferee” means an “Accredited Investor” as defined in Rule 501
promulgated under the Securities Act.

     “Qualifying Party” means (a) a Limited Partner set forth in Schedule A hereto,
(b) an Additional Limited Partner or (c) a Substituted Limited Partner succeeding to all or part of
the Limited Partner Interest of (i) a Limited Partner set forth in Schedule A hereto or
(ii) an Additional Limited Partner.

     “Redemption” has the meaning set forth in Section 8.6.A hereof.

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

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

     “REIT” means a real estate investment trust qualifying under Code Section 856.

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

     “REIT Requirements” has the meaning set forth in Section 5.1 hereof.

     “REIT Share” means a share of common stock of the Parent, par value $0.01 per share.
Where relevant in this Agreement, “REIT Share” includes shares of common stock of the
Parent, par value $0.01 per share, issued upon conversion of Preferred Stock or Junior Stock.

     “REIT Shares Amount” means a number of REIT Shares equal to the product of (a) the
number of Tendered Units and (b) the Adjustment Factor in effect on the Specified Redemption Date
with respect to such Tendered Units; provided, however, that, in the event that the
Parent issues to all holders of REIT Shares as of a certain record date rights, options, warrants
or convertible or exchangeable securities entitling the Parent’s stockholders to subscribe for or
purchase REIT Shares, or any other securities or property (collectively, the “Rights”),
with the record date for such Rights issuance falling within the period starting on the date of the
Notice of Redemption and ending on the day immediately preceding the Specified Redemption Date,
which Rights will not be distributed before the relevant Specified Redemption Date, then the REIT
Shares Amount shall also include such Rights that a holder of that number of REIT Shares would be
entitled to receive, expressed, where relevant hereunder, in a number of REIT Shares determined by
the Parent in good faith.

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

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

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

     “Services Agreement” means any management, development or advisory agreement with a
property and/or asset manager for the provision of property management, asset management, leasing,
development and/or similar services with respect to the Properties and any agreement for the
provision of services of accountants, legal counsel, appraisers, insurers, brokers, transfer
agents, registrars, developers, financial advisors and other professional services.

     “Specified Redemption Date” means the 10th Business Day following receipt
by the General Partner of a Notice of Redemption; provided that, if the REIT Shares are not
Publicly Traded, the Specified Redemption Date means the 30th Business Day following
receipt by the General Partner of a Notice of Redemption.

     “Subsidiary” means, with respect to any Person, any other Person (which is not an
individual) of which a majority of (i) the voting power of the voting equity securities or (ii) the
outstanding equity interests is owned, directly or indirectly, by such Person.

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

     “Supermajority in Interest of the Outside Limited Partners” means Outside Limited
Partners holding more than 80% of the outstanding OP Units held by all Outside Limited Partners.

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

     “Tendered Units” has the meaning set forth in Section 8.6.A hereof.

     “Tendering Partner” has the meaning set forth in Section 8.6.A hereof.

     “Tendering Party” has the meaning set forth in Section 8.6.A hereof.

     “Terminating Capital Transaction” means any sale or other disposition 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.

     “Transaction” has the meaning set forth in Section 4.7.F.

     “Transfer,” when used with respect to a Partnership Unit, or all or any portion of a
Partnership Interest, means any sale, assignment, bequest, conveyance, devise, gift (outright or in
trust), pledge, encumbrance, hypothecation, mortgage, exchange, transfer or other disposition or
act of alienation, whether voluntary or involuntary or by operation of law; provided,
however, that when the term is used in Article XI hereof, “Transfer” does
not include (a) any Redemption of Partnership Units by the Partnership or the Parent, or
acquisition of Tendered Units by the General Partner or the Parent, pursuant to Section 8.6
hereof or (b) any redemption of Partnership Units pursuant to any Partnership Unit Designation.
The terms “Transferred” and “Transferring” have correlative meanings.

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     “Unvested Incentive Units” has the meaning set forth in Section 4.6.C.

     “Value” means, on any date of determination with respect to a REIT Share, the average
of the daily Market Prices for ten consecutive trading days immediately preceding the date of
determination except that, as provided in Section 4.5.B hereof, the Market Price for the
trading day immediately preceding the date of exercise of a share option under any Equity Incentive
Plan shall be substituted for such average of daily market prices for purposes of Section
4.5 hereof; provided, however, that for purposes of Section 8.6, the
“date of determination” shall be the date of receipt by the Parent of a Notice of Redemption or, if
such date is not a Business Day, the immediately preceding Business Day. The term “Market
Price” on any date shall mean, with respect to any class or series of outstanding REIT Shares,
the Closing Price for such REIT Shares on such date. The “Closing Price” on any date shall
mean the last sale price for such REIT Shares, regular way, or, in case no such sale takes place on
such day, the average of the closing bid and asked prices, regular way, for such REIT Shares, in
either case as reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the New York Stock Exchange or, if such REIT Shares are
not listed or admitted to trading on the New York Stock Exchange, as reported on the principal
consolidated transaction reporting system with respect to securities listed on the principal
national securities exchange on which such REIT Shares are listed or admitted to trading or, if
such REIT Shares are not listed or admitted to trading on any national securities exchange, the
last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the National Association of Securities Dealers, Inc.
Automated Quotation System or, if such system is no longer in use, the principal other automated
quotation system that may then be in use or, if such REIT Shares are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market
maker making a market in such REIT Shares selected by the Board of Directors of the Parent or, in
the event that no trading price is available for such REIT Shares, the fair market value of the
REIT Shares, as determined in good faith by the Board of Directors of the Parent.

     In the event that the REIT Shares Amount includes Rights (as defined in the definition of
“REIT Shares Amount”) that a holder of REIT Shares would be entitled to receive, then the
Value of such Rights shall be determined by the Parent acting in good faith on the basis of such
quotations and other information as it considers, in its reasonable judgment, appropriate.

     “Vested LTIP Units” has the meaning set forth in Section 4.6.C.

     “Vesting Agreement” means each or any, as the context implies, agreement entered into
by an LTIP Unitholder upon acceptance of an award of LTIP Units under an Equity Incentive Plan.

ARTICLE II

ORGANIZATIONAL MATTERS

     Section 2.1. Organization. The Partnership is a limited partnership organized
pursuant to the provisions of the Act and upon the terms and subject to the conditions set forth in
this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of
the Partners and the administration and termination of the Partnership shall be governed by the
Act. The Partnership Interest of each Partner shall be personal property for all purposes.

     Section 2.2. Name. The name of the Partnership is “NY Credit Operating Partnership
LP.” The Partnership’s business may be conducted under any other name or names deemed advisable by
the

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General Partner, including the name of the General Partner or any Affiliate thereof. The
words “Limited Partnership,” “LP,” “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 in its sole and absolute discretion may change
the name of the Partnership at any time and from time to time and shall notify the Partners of such
change in the next regular communication to the Partners.

     Section 2.3. Registered Office and Agent; Principal Office. The address of the
registered office of the Partnership in the State of Delaware is located at Corporation Service
Company, 1013 Centre Road, Wilmington, Delaware 19805, and the registered agent for service of
process on the Partnership in the State of Delaware at such registered office is Corporation
Service Company. The principal office of the Partnership is located at c/o NY Credit Corp., 230
Park Avenue, Suite 1160, New York, New York 10169 or such other place as the General Partner may
from time to time designate by notice to the Limited Partners. The Partnership may maintain
offices at such other place or places within or outside the State of Delaware as the General
Partner deems advisable.

     Section 2.4. Appointment of the General Partner. NYCC GP LLC shall be the general
partner of the Partnership.

     Section 2.5. Power of Attorney.

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

          (i) execute, swear to, seal, 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, supplements or
restatements thereto) 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
to the extent provided by applicable law) in the State of Delaware and in all other
jurisdictions in which the Partnership may conduct business or own property; (b) all
instruments that the General Partner or the 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 the 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; (d) all conveyances and other instruments or
documents that the General Partner or the Liquidator deems appropriate or necessary to
reflect the distribution or exchange of assets of the Partnership pursuant to the terms of
this Agreement; (e) all instruments relating to the admission, withdrawal, removal or
substitution of any Partner pursuant to, or other events described in, Article XI,
Article XII or Article XIII hereof or the Capital Contribution of any
Partner; and (f) all certificates, documents and other instruments relating to the
determination of the rights, preferences and privileges relating to Partnership Interests;
and

          (ii) execute, swear to, 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 the Liquidator, to make, evidence, give, confirm or
ratify any vote, consent, approval, agreement or other action that is made or given by the
Partners hereunder

- 16 -

 

or is consistent with the terms of this Agreement or appropriate or necessary, in the
sole and absolute discretion of the General Partner or the Liquidator, to effectuate the
terms or intent of this Agreement.

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

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

     Section 2.6. Term. Pursuant to Section 17-217(d) of the Act, the term of the
Partnership commenced on March 9, 2005 and shall continue perpetually unless it is dissolved
pursuant to the provisions of Article XIII hereof or as otherwise provided by law.

ARTICLE III

PURPOSE

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

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     Section 3.2. Powers.

          A. The Partnership shall be 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 herein and for the protection and benefit of the
Partnership.

          B. The Partnership may contribute from time to time Partnership capital to one or more newly
formed entities solely in exchange for equity interests therein (or in a wholly owned subsidiary
entity thereof).

          C. Notwithstanding any other provision in this Agreement, the General Partner may cause the
Partnership not to take, or to refrain from taking, any action that, in the judgment of the General
Partner, in its sole and absolute discretion, (i) could adversely affect the ability of the Parent
to continue to qualify as a REIT, (ii) could subject the Parent to any additional taxes under Code
Section 857 or Code Section 4981 or any other related or successor provision of the Code or (iii)
could violate any law or regulation of any governmental body or agency having jurisdiction over the
General Partner, the Parent, their securities or the Partnership.

     Section 3.3. Partnership Only for Partnership Purposes Specified. This Agreement
shall not be deemed to create a company, venture or partnership between or among the Partners with
respect to any activities whatsoever other than the activities within the purposes of the
Partnership as specified in Section 3.1 hereof. Except as otherwise provided in this
Agreement, no Partner shall have any authority to act for, bind, commit or assume any obligation or
responsibility on behalf of the Partnership, its properties or any other Partner. No Partner, in
its capacity as a Partner under this Agreement, shall be responsible or liable for any indebtedness
or obligation of another Partner, and the Partnership shall not be responsible or liable for any
indebtedness or obligation of any Partner, incurred either before or after the execution and
delivery of this Agreement by such Partner, except as to those responsibilities, liabilities,
indebtedness or obligations incurred pursuant to and as limited by the terms of this Agreement and
the Act.

     Section 3.4. Representations and Warranties by the Parties.

          A. Each Partner (including, without limitation, each Additional Limited Partner or Substituted
Limited Partner as a condition to becoming an Additional Limited Partner or a Substituted Limited
Partner, respectively) represents and warrants to each other Partner that (i) the consummation of
the transactions contemplated by this Agreement to be performed by such Partner will not result in
a breach or violation of, or a default under, any material agreement by which such Partner or any
of such Partner’s property is bound, or any statute, regulation, order or other law to which such
Partner is subject, (ii) subject to the last sentence of this Section 3.4.A, such Partner
is neither a “foreign person” within the meaning of Code Section 1445(f) nor a “foreign partner”
within the meaning of Code Section 1446(e), (iii) such Partner does not own, directly or
indirectly, (a) 9.8% or more of the total combined voting power of all classes of shares entitled
to vote, or 9.8% or more of the total number of shares of all classes, of any corporation that is a
tenant of (I) the Parent or any Qualified REIT Subsidiary, (II) the Partnership or (III) any
partnership, venture or limited liability company of which the Parent, any Qualified REIT
Subsidiary or the Partnership is a partner or member or (b) an interest of 9.9% or more in the
assets or net profits of any tenant of (I) the Parent or any Qualified REIT Subsidiary, (II) the
Partnership or (III) any partnership, venture, or limited liability company of which the Parent,
any Qualified REIT Subsidiary or the Partnership is a partner or member and (iv) this Agreement is
binding upon, and enforceable against, such Partner in accordance with its terms. Notwithstanding
anything contained herein to the contrary, in the event that the representation contained in the
foregoing clause (ii) would be inaccurate if given by a Partner, such Partner (w) shall not be
required to make and shall not be deemed to have made such

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representation, if it delivers to the General Partner in connection with or prior to its
execution of this Agreement written notice that it may not truthfully make such representation, (x)
hereby agrees that it is subject to, and hereby authorizes the General Partner to withhold, all
withholdings to which such a “foreign person” or “foreign partner,” as applicable, is subject under
the Code and (y) hereby agrees to cooperate fully with the General Partner with respect to such
withholdings, including by effecting the timely completion and delivery to the General Partner of
all governmental forms required in connection therewith.

          B. Each Partner (including, without limitation, each Substituted Limited Partner as a
condition to becoming a Substituted Limited Partner) represents, warrants and agrees that it has
acquired and continues to hold its interest in the Partnership for its own account for investment
purposes only and not for the purpose of, or with a view toward, the resale or distribution of all
or any part thereof, and not with a view toward selling or otherwise distributing such interest or
any part thereof at any particular time or under any predetermined circumstances. Each Partner
further represents and warrants that it is a sophisticated investor, able and accustomed to
handling sophisticated financial and tax matters for itself, particularly real estate investments,
and that it has a sufficiently high net worth that it does not anticipate a need for the funds that
it has invested in the Partnership in what it understands to be a highly speculative and illiquid
investment.

          C. The representations and warranties contained in Sections 3.4.A and 3.4.B
hereof shall survive the execution and delivery of this Agreement by each Partner (and, in the case
of an Additional Limited Partner or a Substituted Limited Partner, the admission of such Additional
Limited Partner or Substituted Limited Partner as a Limited Partner in the Partnership) and the
dissolution, liquidation and termination of the Partnership.

          D. Each Partner (including, without limitation, each Substituted Limited Partner as a
condition to becoming a Substituted Limited Partner) hereby acknowledges that no representations as
to potential profit, cash flows, funds from operations or yield, if any, in respect of the
Partnership or the General Partner have been made by the Parent, any Partner or any employee or
representative or Affiliate of the Parent or any Partner, and that projections and any other
information, including, without limitation, financial and descriptive information and
documentation, that may have been in any manner submitted to such Partner shall not constitute any
representation or warranty of any kind or nature, express or implied.

ARTICLE IV

CAPITAL CONTRIBUTIONS

     Section 4.1. Capital Contributions of the Partners. Each Partner’s Capital
Contribution to the Partnership and amount and designation of ownership of Partnership Units is on
Exhibit A, as the same may be amended from time to time by the General Partner to the
extent necessary to reflect accurately sales, exchanges, conversions or other Transfers,
redemptions, Capital Contributions, the issuance of additional Partnership Units, or similar events
having an effect on a Partner’s ownership of Partnership Units. Except as provided by law or in
Section 4.4, 10.4 or 13.2.D hereof, the Partners shall have no obligation
or right to make any additional Capital Contributions or loans to the Partnership.

     Section 4.2. Classes of Partnership Units. Subject to Section 4.3.A below,
the Partnership shall have two classes of Partnership Units, entitled “OP Units” and
“LTIP Units.” Subject to Section 4.9, either OP Units or LTIP Units, at the
election of the General Partner, in its sole and absolute discretion, may be issued to newly
admitted Partners or existing Partners in exchange for any Capital Contributions by such Partners
and/or the provision of services by such Partners; provided that any Partnership Unit that

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is not specifically designated by the General Partner as being of a particular class shall be
deemed to be an OP Unit.

     Section 4.3. Issuances of Additional Partnership Interests.

          A. General. Notwithstanding Section 7.3.B hereof, the General Partner is
hereby authorized to cause the Partnership to issue additional Partnership Interests, in the form
of Partnership Units, for any Partnership purpose, at any time or from time to time, to the
Partners (including the General Partner or Parent, as a Limited Partner) or to other Persons, and
to admit such Persons as Additional Limited Partners, for such consideration and on such terms and
conditions as shall be established by the General Partner in its sole and absolute discretion, all
without the approval of any Limited Partners. Without limiting the foregoing, the General Partner
is expressly authorized to cause the Partnership to issue Partnership Units (i) upon the
conversion, redemption or exchange of any Debt, Partnership Units or other securities issued by the
Partnership, (ii) for less than fair market value, so long as the General Partner concludes in good
faith that such issuance is in the best interests of the Parent and the Partnership and (iii) in
connection with any merger of any other Person into the Partnership or any Subsidiary of the
Partnership if the applicable merger agreement provides that Persons are to receive Partnership
Units in exchange for their interests in the Person merging into the Partnership or any Subsidiary
of the Partnership. Subject to Delaware law, any additional Partnership Interests may be issued in
one or more classes, or one or more series of any of such classes, with such designations,
preferences and relative, participating, optional or other special rights, powers and duties as
shall be determined by the General Partner, in its sole and absolute discretion without the
approval of any Limited Partner, and set forth in a written document thereafter attached to and
made an exhibit to this Agreement (each, a “Partnership Unit Designation”). Without
limiting the generality of the foregoing, the General Partner shall have authority to specify (a)
the allocations of items of Partnership income, gain, loss, deduction and credit to each such class
or series of Partnership Interests; (b) the right of each such class or series of Partnership
Interests to share in Partnership distributions; (c) the rights of each such class or series of
Partnership Interests upon dissolution and liquidation of the Partnership; (d) the voting rights,
if any, of each such class or series of Partnership Interests; and (e) the conversion, redemption
or exchange rights applicable to each such class or series of Partnership Interests. Upon the
issuance of any additional Partnership Interest, the General Partner shall amend Exhibit A
as appropriate to reflect such issuance.

          B. Issuances to the General Partner and Parent. No additional Partnership Units shall
be issued to the General Partner or Parent unless (i) the additional Partnership Units are issued
to all Partners in proportion to their respective Percentage Interests with respect to the class of
Partnership Units so issued, (ii) (a) the additional Partnership Units are (x) OP Units issued in
connection with an issuance of REIT Shares or (y) Partnership Units (other than OP Units) issued in
connection with an issuance of Preferred Stock, Junior Stock, New Securities or other interests in
the Parent (other than REIT Shares), which Preferred Stock, Junior Stock, New Securities or other
interests have designations, preferences and other rights, terms and provisions that are
substantially the same as the designations, preferences and other rights, terms and provisions of
the additional Partnership Units issued to the General Partner and (b) the Parent directly or
indirectly contributes or otherwise causes to be transferred to the Partnership the cash proceeds
or other consideration, if any, received in connection with the issuance of such REIT Shares,
Preferred Stock, Junior Stock, New Securities or other interests in the Parent or (iii) the
additional Partnership Units are issued upon the conversion, redemption or exchange of Debt,
Partnership Units or other securities issued by the Partnership. Of the total number of additional
Partnership Units issued to the General Partner and the Parent, a number of additional Partnership
Units equal to 1% (or such other amount designated by the General Partner) of the aggregate number
of Partnership Units issued and outstanding shall be deemed the General Partner Partnership Units,
and the remainder shall be deemed the Parent Partnership Units. In the event that the Partnership
issues additional Partnership Units pursuant to this Section 4.3.B, the General Partner
shall make such revisions to this Agreement (including but not

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limited to the revisions described in Sections 6.2.B and 8.6) as it determines
are necessary to reflect the issuance of such additional Partnership Interests.

          C. No Preemptive Rights. No Person, including, without limitation, any Partner or
Assignee, shall have any preemptive, preferential, participation or similar right or rights to
subscribe for or acquire any Partnership Interest.

          D. Requirements for All Issuances. In no event may any additional Partnership
Interest be issued pursuant to this Article IV or otherwise (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) in the event that such issuance would cause the Parent to cease to comply
with the REIT Requirements; (iv) if such issuance would, in the opinion of legal counsel to the
Partnership, cause the Partnership to cease to be classified as a partnership for federal income
tax purposes; (v) if such issuance would cause the Partnership to become, with respect to any
employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in ERISA
Section 3(14)) or a “disqualified person” (as defined in Code Section 4975(c)); (vi) without the
consent of the General Partner, to any benefit plan investor within the meaning of Department of
Labor Regulations Section 2510.3-101(f); (vii) if such issuance would, in the opinion of legal
counsel to the Partnership or the General Partner, cause any portion of the assets of the
Partnership to constitute assets of any employee benefit plan pursuant to Department of Labor
Regulations Section 2510.3-101; (viii) if such issuance requires the registration of such
Partnership Interest pursuant to any applicable federal or state securities laws; (ix) if such
issuance would, in the opinion of legal counsel to the Partnership or the General Partner,
adversely affect the ability of the Parent to continue to qualify as a REIT or would subject the
Parent to any additional taxes under Code Section 857 or Code Section 4981; (x) if such issuance
causes the Partnership (as opposed to the Parent) to become a reporting company under the Exchange
Act; or (xi) if such issuance subjects the Partnership to regulation under the Investment Company
Act of 1940, the Investment Advisors Act of 1940 or ERISA, each as amended.

     Section 4.4. Additional Funds and Capital Contributions.

          A. General. The General Partner may, at any time and from time to time, determine
that the Partnership requires additional funds (“Additional Funds”) for the acquisition or
development of additional Properties, for the redemption of Partnership Units or for such other
purposes as the General Partner may determine in its sole and absolute discretion. Additional
Funds may be obtained by the Partnership, at the election of the General Partner, in any manner
provided in, and in accordance with, the terms of this Section 4.4 without the approval of
any Limited Partners.

          B. Additional Capital Contributions. The General Partner, on behalf of the
Partnership, may obtain any Additional Funds by accepting Capital Contributions from any Partners
or other Persons. In connection with any such Capital Contribution (of cash or property), the
General Partner is hereby authorized to cause the Partnership from time to time to issue additional
Partnership Units (as set forth in Section 4.3 above) in consideration therefor and the
Percentage Interests of the General Partner and the Limited Partners shall be adjusted to reflect
the issuance of such additional Partnership Units.

          C. Loans by Third Parties. The General Partner, on behalf of the Partnership, may
obtain any Additional Funds by causing the Partnership to incur Debt to any Person upon such terms
as the General Partner determines appropriate, including making such Debt convertible, redeemable
or exchangeable for Partnership Units; provided, however, that the Partnership
shall not incur any such Debt if (i) a breach, violation or default of such Debt would be deemed to
occur by virtue of the Transfer by any Limited Partner of any Partnership Interest or (ii) such
Debt is recourse to any Partner (unless the Partner otherwise agrees).

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          D. General Partner/Parent Loans. The General Partner and/or the Parent, as the case
may be, on behalf of the Partnership, may obtain any Additional Funds by causing the Partnership to
incur Debt with the General Partner and/or the Parent, as the case may be, if (i) such Debt is, to
the extent permitted by law, on substantially the same terms and conditions (including interest
rate, repayment schedule, and conversion, redemption, repurchase and exchange rights) as Funding
Debt incurred by the General Partner and/or the Parent, as the case may be, the net proceeds of
which are loaned to the Partnership to provide such Additional Funds or (ii) such Debt is on terms
and conditions no less favorable to the Partnership than would be available to the Partnership from
any third party; provided, however, that the Partnership shall not incur any such
Debt if (a) a breach, violation or default of such Debt would be deemed to occur by virtue of the
Transfer by any Limited Partner of any Partnership Interest or (b) such Debt is recourse to any
Partner and/or the Parent, as the case may be (unless the Partner and/or the Parent, as the case
may be, otherwise agrees).

          E. Issuance of Securities by the Parent. The Parent shall not issue any additional
REIT Shares, Preferred Stock, Junior Stock or New Securities unless the Parent contributes directly
or indirectly the cash proceeds or other consideration, if any, received from the issuance of such
additional REIT Shares, Preferred Stock, Junior Stock or New Securities, as the case may be, and
from the exercise of the rights contained in any such additional New Securities, to the Partnership
in exchange for (x) in the case of an issuance of REIT Shares, OP Units or (y) in the case of an
issuance of Preferred Stock, Junior Stock or New Securities, Partnership Units with designations,
preferences and other rights, terms and provisions that are substantially the same as the
designations, preferences and other rights, terms and provisions of such Preferred Stock, Junior
Stock or New Securities; provided, however, that notwithstanding the foregoing, the
Parent may issue REIT Shares, Preferred Stock, Junior Stock or New Securities (a) pursuant to
Section 4.5 or 8.6.B hereof, (b) pursuant to a dividend or distribution (including
any share split) of REIT Shares, Preferred Stock, Junior Stock or New Securities to all of the
holders of REIT Shares, Preferred Stock, Junior Stock or New Securities, as the case may be, (c)
upon a conversion, redemption or exchange of Preferred Stock, (d) upon a conversion of Junior Stock
into REIT Shares, (e) upon a conversion, redemption, exchange or exercise of New Securities or, (f)
pursuant to share grants or awards made pursuant to any Equity Incentive Plan of the Parent. In
the event of any issuance of additional REIT Shares, Preferred Stock, Junior Stock or New
Securities by the Parent, and the direct or indirect contribution to the Partnership, by the
Parent, of the cash proceeds or other consideration received from such issuance, the Partnership
shall pay the Parent’s expenses associated with such issuance, including any underwriting discounts
or commissions (it being understood that if the proceeds actually received by the Parent are less
than the gross proceeds of such issuance as a result of any underwriter’s discount or other
expenses paid or incurred by the Parent and the General Partner in connection with such issuance,
then the Parent shall be deemed to have made, through the General Partner and Parent, a Capital
Contribution to the Partnership in the amount of the gross proceeds of such issuance and the
Partnership shall be deemed simultaneously to have reimbursed the Parent or General Partner, as
applicable, pursuant to Section 7.4.B for the amount of such underwriter’s discount or
other expenses).

     Section 4.5. Equity Incentive Plan.

          A. Options Granted to Company Employees and Outside Directors. If at any time or from
time to time, in connection with an Equity Incentive Plan, a share option granted to a Company
Employee or Outside Director is duly exercised:

          (i) the Parent shall, as soon as practicable after such exercise, make or cause to be
made directly or indirectly a Capital Contribution to the Partnership in an amount equal to
the exercise price paid to the Parent by such exercising party in connection with the
exercise of such share option.

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          (ii) Notwithstanding the amount of the Capital Contribution actually made pursuant to
Section 4.5.A(i) hereof, the Parent shall be deemed to have contributed directly or
indirectly to the Partnership, as a Capital Contribution, in consideration of an additional
Limited Partner Interest (expressed in and as additional Partnership Units), an amount equal
to the Value of a REIT Share as of the date of exercise
multiplied by the number of REIT
Shares then being issued in connection with the exercise of such share option.

          (iii) An equitable Percentage Interest adjustment shall be made in which the General
Partner and Parent shall be treated as having made a cash contribution equal to the amount
described in Section 4.5.A(ii) hereof.

          B. Special Valuation Rule. For purposes of this Section 4.5, in determining
the Value of a REIT Share, only the trading date immediately preceding the exercise of the relevant
share option under the Equity Incentive Plan shall be considered.

          C. Future Equity Incentive Plans. Nothing in this Agreement shall be construed or
applied to preclude or restrain the Parent from adopting, modifying or terminating any Equity
Incentive Plan, for the benefit of employees, directors or other business associates of the Parent,
the Partnership or any of their Affiliates. The Limited Partners acknowledge and agree that, in
the event that any such plan is adopted, modified or terminated by the Parent, amendments to this
Section 4.5 may become necessary or advisable and that any approval or consent of the
Limited Partners required pursuant to the terms of this Agreement in order to effect any such
amendments requested by the General Partner shall not be unreasonably withheld or delayed.

     Section 4.6. LTIP Units.

          A. Issuance of LTIP Units. The General Partner may from time to time issue LTIP Units
to Persons who provide services to the Partnership, for such consideration as the General Partner
may determine to be appropriate, and admit such Persons as Limited Partners. Subject to the
following provisions of this Section 4.6 and the special provisions of Sections
6.3.C and 4.7, LTIP Units shall be treated as OP Units, with all of the rights,
privileges and obligations attendant thereto. For purposes of computing the Partners’ Percentage
Interests, holders of LTIP Units shall be treated as OP Unitholders and LTIP Units shall be treated
as OP Units. In particular, the Partnership shall maintain at all times a one-to-one
correspondence between LTIP Units and OP Units for conversion, distribution and other purposes,
including without limitation complying with the following procedures:

          (i) If an Adjustment Event (as defined below) occurs, then the General Partner shall
make a corresponding adjustment to the LTIP Units to maintain a one-for-one conversion and
economic equivalence ratio between OP Units and LTIP Units. The following shall be
Adjustment Events: (A) the Partnership makes a distribution on all outstanding OP Units in
Partnership Units, (B) the Partnership subdivides the outstanding OP Units into a greater
number of units or combines the outstanding OP Units into a smaller number of units, or (C)
the Partnership issues any Partnership Units in exchange for its outstanding OP Units by way
of a reclassification or recapitalization of its OP Units. If more than one Adjustment
Event occurs, the adjustment to the LTIP Units need be made only once using a single formula
that takes into account each and every Adjustment Event as if all Adjustment Events occurred
simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events:
(x) the issuance of Partnership Units in a financing, reorganization, acquisition or other
similar business transaction, (y) the issuance of Partnership Units pursuant to any employee
benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any
Partnership Units to the General Partner and/or Parent in respect of a Capital Contribution
of proceeds from the sale of securities by the

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Parent. If the Partnership takes an action affecting the OP Units other than actions
specifically described above as “Adjustment Events” and in the opinion of the General
Partner such action would require an adjustment to the LTIP Units to maintain the one-to-one
correspondence described above, the General Partner shall have the right to make such
adjustment to the LTIP Units, to the extent permitted by law and by any Equity Incentive
Plan, in such manner and at such time as the General Partner, in its sole discretion, may
determine to be appropriate under the circumstances. If an adjustment is made to the LTIP
Units as herein provided, the Partnership shall promptly file in the books and records of
the Partnership an officer’s certificate setting forth such adjustment and a brief statement
of the facts requiring such adjustment, which certificate shall be conclusive evidence of
the correctness of such adjustment absent manifest error. Promptly after filing such
certificate, the Partnership shall mail a notice to each LTIP Unitholder setting forth the
adjustment to his or her LTIP Units and the effective date of such adjustment; and

          (ii) The LTIP Unitholders shall, when, as and if authorized and declared by the General
Partner out of assets legally available for that purpose, be entitled to receive
distributions in an amount per LTIP Unit equal to the distributions per OP Unit (the
“Partnership Unit Distribution”), paid to holders of OP Units on such Partnership Record
Date established by the General Partner with respect to such distribution. So long as any
LTIP Units are outstanding, no distributions (whether in cash or in kind) shall be
authorized, declared or paid on OP Units, unless equal distributions have been or
contemporaneously are authorized, declared and paid on the LTIP Units.

          B. Priority. Subject to the provisions of this Section 4.6 and the special
provisions of Sections 6.3.C and 4.9, the LTIP Units shall rank pari passu with the
OP Units as to the payment of regular and special periodic or other distributions and distribution
of assets upon liquidation, dissolution or winding up. As to the payment of distributions and as
to distribution of assets upon liquidation, dissolution or winding up, any class or series of
Partnership Units or Partnership Interests which by its terms specifies that it shall rank junior
to, on a parity with, or senior to the OP Units shall also rank junior to, or pari passu with, or
senior to, as the case may be, the LTIP Units. Subject to the terms of any Vesting Agreement, an
LTIP Unitholder shall be entitled to transfer his or her LTIP Units to the same extent, and subject
to the same restrictions as holders of OP Units are entitled to transfer their OP Units pursuant to
Article XI.

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

          (i) Vesting Agreements. LTIP Units may, in the sole discretion of the General
Partner, be issued subject to vesting, forfeiture and additional restrictions on transfer
pursuant to the terms of a Vesting Agreement. The terms of any Vesting Agreement may be
modified by the General Partner from time to time in its sole discretion, subject to any
restrictions on amendment imposed by the relevant Vesting Agreement or by the Equity
Incentive Plan, if applicable. LTIP Units that have vested under the terms of a Vesting
Agreement are referred to as “Vested LTIP Units”; all other LTIP Units shall be
treated as “Unvested Incentive Units.”

          (ii) Forfeiture. Unless otherwise specified in the Vesting Agreement, upon the
occurrence of any event specified in a Vesting Agreement as resulting in either the right of
the Partnership or the General Partner to repurchase LTIP Units at a specified purchase
price or some other forfeiture of any LTIP Units, then if the Partnership or the General
Partner exercises such right to repurchase or forfeiture in accordance with the applicable
Vesting Agreement, the relevant LTIP Units shall immediately, and without any further
action, be treated as cancelled and no longer outstanding for any purpose. Unless otherwise
specified in the Vesting Agreement, no

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consideration or other payment shall be due with respect to any LTIP Units that have
been forfeited, other than any distributions declared with respect to a Partnership Record
Date prior to the effective date of the forfeiture. In connection with any repurchase or
forfeiture of LTIP Units, the balance of the portion of the Capital Account of the LTIP
Unitholder that is attributable to all of his or her LTIP Units shall be reduced by the
amount, if any, by which it exceeds the target balance contemplated by Section
6.3.C, calculated with respect to the LTIP Unitholder’s remaining LTIP Units, if any.

          (iii) Allocations. LTIP Unitholders shall be entitled to certain special
allocations of gain under Section 6.3.C.

          (iv) Redemption. The Redemption provided to Limited Partners under Section
8.6 shall not apply with respect to LTIP Units unless and until they are converted to OP
Units as provided in clause (v) below and Section 4.7.

          (v) Conversion To OP Units. Vested LTIP Units are eligible to be converted
into OP Units under Section 4.7.

          D. Voting. LTIP Unitholders shall (a) have the same voting rights as a holder of OP
Units, with the LTIP Units voting as a single class with the OP Units and having one vote per LTIP
Unit; and (b) have the additional voting rights that are expressly set forth below. So long as any
LTIP Units remain outstanding, the Partnership shall not, without the affirmative vote of the
holders of at least a majority of the LTIP Units outstanding at the time, given in person or by
proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal,
whether by merger, consolidation or otherwise, the provisions of this Agreement applicable to LTIP
Units so as to materially and adversely affect any right, privilege or voting power of the LTIP
Units or the LTIP Unitholders as such, unless such amendment, alteration, or repeal affects
equally, ratably and proportionately the rights, privileges and voting powers of the holders of OP
Units; but subject, in any event, to the following provisions:

          (i) With respect to any Transaction, so long as the LTIP Units are treated in
accordance with Section 4.7.F hereof, the consummation of such Transaction shall not
be deemed to materially and adversely affect such rights, preferences, privileges or voting
powers of the LTIP Units or the LTIP Unitholders as such; and

          (ii) Any creation or issuance of any Partnership Units or of any class or series of
Partnership Interest, including without limitation additional OP Units, LTIP Units or
Preferred Units, whether ranking senior to, junior to, or on a parity with the LTIP Units
with respect to distributions and the distribution of assets upon liquidation, dissolution
or winding up, shall not be deemed to materially and adversely affect such rights,
preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such.

     The foregoing voting provisions will not apply if, at or prior to the time when the act
with respect to which such vote would otherwise be required will be effected, all
outstanding LTIP Units shall have been converted into OP Units.

     Section 4.7. Conversion of LTIP Units.

          A. An LTIP Unitholder shall have the right (the “Conversion Right”), at his or her
option, at any time to convert all or a portion of his or her Vested LTIP Units into OP Units;
provided, however, that a holder may not exercise the Conversion Right for less than 300 Vested
LTIP Units or, if such holder holds less than one thousand Vested LTIP Units, all of the Vested
LTIP Units held by such

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holder. LTIP Unitholders shall not have the right to convert Unvested Incentive Units into OP
Units until they become Vested LTIP Units; provided, however, that when an LTIP Unitholder is
notified of the expected occurrence of an event that will cause his or her Unvested Incentive Units
to become Vested LTIP Units, such LTIP Unitholder may give the Partnership a Conversion Notice
conditioned upon and effective as of the time of vesting and such Conversion Notice, unless
subsequently revoked by the LTIP Unitholder, shall be accepted by the Partnership subject to such
condition. The Partnership, at any time at the election of the General Partner, shall have the
right at any time to cause a conversion of Vested LTIP Units into OP Units. In all cases, the
conversion of any LTIP Units into OP Units shall be subject to the conditions and procedures set
forth in this Section 4.7.

          B. A holder of Vested LTIP Units may convert such units into an equal number of fully paid and
non-assessable OP Units, giving effect to all adjustments (if any) made pursuant to Section
4.6. Notwithstanding the foregoing, in no event may a holder of Vested LTIP Units convert a
number of Vested LTIP Units that exceeds (x) the Economic Capital Account Balance of such Limited
Partner, to the extent attributable to its ownership of LTIP Units, divided by (y) the OP Unit
Economic Balance, in each case as determined as of the effective date of conversion (the
“Capital Account Limitation”).

     In order to exercise his or her Conversion Right, an LTIP Unitholder shall deliver a notice to
the Partnership (a “Conversion Notice”) in the form attached as Exhibit C to this
Agreement (with a copy to the General Partner) not less than 10 nor more than 60 days prior to a
date specified in such Conversion Notice (the “Conversion Date”); provided, however, that
(i) if the effective date of a Transaction (as defined below in Section 4.7.F) is to occur
prior to such date, then the Conversion Date shall be the Business Day immediately prior to such
effective date; and (ii) if the General Partner has not given to the LTIP Unitholders notice of a
proposed or upcoming Transaction at least 30 days prior to effective date of such Transaction, then
LTIP Unitholders shall have the right to deliver a Conversion Notice until the earlier of (x) the
10th day after such notice from the General Partner of a Transaction or (y) the third business day
immediately preceding the effective date of such Transaction. A Conversion Notice shall be
provided in the manner provided in Section 15.1. Each LTIP Unitholder covenants and agrees
with the Partnership that all Vested LTIP Units to be converted pursuant to this Section
4.7.B shall be free and clear of all liens. Notwithstanding anything herein to the contrary, a
holder of LTIP Units may deliver a Notice of Redemption pursuant to Section 8.6.A relating
to those OP Units that will be issued to such holder upon conversion of such LTIP Units into OP
Units in advance of the Conversion Date; provided, however, that the redemption of such OP Units by
the Partnership shall in no event take place until after the Conversion Date. For clarity, it is
noted that the objective of this paragraph is to put an LTIP Unitholder in a position where, if he
or she so wishes, the OP Units into which his or her Vested LTIP Units will be converted can be
redeemed by the Partnership simultaneously with such conversion, with the further consequence that,
if the Parent elects to assume the Partnership’s redemption obligation with respect to such OP
Units under Section 8.6.B by delivering to such holder REIT Shares rather than cash, then
such holder can have such REIT Shares issued to him or her simultaneously with the conversion of
his or her Vested LTIP Units into OP Units. The General Partner shall reasonably cooperate with an
LTIP Unitholder to coordinate the timing of the different events described in the foregoing
sentence.

          C. The Partnership, at any time at the election of the General Partner, may cause any number
of Vested LTIP Units held by an LTIP Unitholder to be converted (a “Forced Conversion”)
into an equal number of OP Units, giving effect to all adjustments (if any) made pursuant to
Section 4.6; provided, however, that the Partnership may not cause a Forced Conversion of
any LTIP Units that would not at the time be eligible for conversion at the option of such LTIP
Unitholder pursuant to Section 4.7.B. In order to exercise its right of Forced Conversion,
the Partnership shall deliver a notice (a “Forced Conversion Notice”) to the applicable
LTIP Unitholder in the form attached as Exhibit D to this Agreement not less than 10 nor
more than 60 days prior to the Conversion Date specified in such Forced

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Conversion Notice. A Forced Conversion Notice shall be provided in the manner provided in
Section 15.1.

          D. A conversion of Vested LTIP Units for which the holder thereof has given a Conversion
Notice or the Partnership has given a Forced Conversion Notice shall occur automatically after the
close of business on the applicable Conversion Date without any action on the part of such LTIP
Unitholder, as of which time such LTIP Unitholder shall be credited on the books and records of the
Partnership with the issuance as of the opening of business on the next day of the number of OP
Units issuable upon such conversion. After the conversion of LTIP Units as aforesaid, the
Partnership shall deliver to such LTIP Unitholder, upon his or her written request, a certificate
of the General Partner certifying the number of OP Units and remaining LTIP Units, if any, held by
such person immediately after such conversion. The Assignee of any Limited Partner pursuant to
Article XI hereof may exercise the rights of such Limited Partner pursuant to this
Section 4.7 and such Limited Partner shall be bound by the exercise of such rights by the
Assignee.

          E. For purposes of making future allocations under Section 6.3.C and applying the
Capital Account Limitation, the portion of the Economic Capital Account balance of the applicable
LTIP Unitholder that is treated as attributable to his or her LTIP Units shall be reduced, as of
the date of conversion, by the product of the number of LTIP Units converted and the OP Unit
Economic Balance.

          F. If the Partnership, the General Partner or the Parent shall be a party to any transaction
(including without limitation a merger, consolidation, unit exchange, self tender offer for all or
substantially all OP Units or other business combination or reorganization, or sale of all or
substantially all of the Partnership’s assets, but excluding any transaction which constitutes an
Adjustment Event) in each case as a result of which OP Units shall be exchanged for or converted
into the right, or the holders of such Units shall otherwise be entitled, to receive cash,
securities or other property or any combination thereof (any of the foregoing being referred to
herein as a “Transaction”), then the General Partner shall, immediately prior to the
Transaction, exercise its right to cause a Forced Conversion with respect to the maximum number of
LTIP Units then eligible for conversion, taking into account any allocations that occur in
connection with the Transaction or that would occur in connection with the Transaction if the
assets of the Partnership were sold at the Transaction price or, if applicable, at a value
determined by the General Partner in good faith using the value attributed to the Partnership Units
in the context of the Transaction (in which case the Conversion Date shall be the effective date of
the Transaction).

     In anticipation of such Forced Conversion and the consummation of the Transaction, the
Partnership shall use commercially reasonable efforts to cause each LTIP Unitholder to be afforded
the right to receive in connection with such Transaction in consideration for the OP Units into
which his or her LTIP Units will be converted the same kind and amount of cash, securities and
other property (or any combination thereof) receivable upon the consummation of such Transaction by
a holder of the same number of OP Units, assuming such holder of OP Units is not a Person with
which the Partnership consolidated or into which the Partnership merged or which merged into the
Partnership or to which such sale or transfer was made, as the case may be (a “Constituent
Person”), or an affiliate of a Constituent Person. In the event that holders of OP Units have
the opportunity to elect the form or type of consideration to be received upon consummation of the
Transaction, prior to such Transaction the General Partner shall give prompt written notice to each
LTIP Unitholder of such election, and shall use commercially reasonable efforts to afford the LTIP
Unitholders the right to elect, by written notice to the General Partner, the form or type of
consideration to be received upon conversion of each LTIP Unit held by such holder into OP Units in
connection with such Transaction. If an LTIP Unitholder fails to make such an election, such
holder (and any of its transferees) shall receive upon conversion of each LTIP Unit held by him or
her (or by any of his or her transferees) the same kind and amount of consideration that a holder
of a OP Unit would receive if such OP Unit holder failed to make such an election.

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

     Section 4.8. No Interest; No Return. No Partner shall be entitled to interest on its
Capital Contribution or on such Partner’s Capital Account. Except as provided herein or by law, no
Partner shall have any right to demand or receive the return of its Capital Contribution from the
Partnership.

     Section 4.9. Other Contribution Provisions. In the event that any Partner is admitted
to the Partnership and is given a Capital Account in exchange for services rendered to the
Partnership, unless otherwise determined by the General Partner in its sole and absolute
discretion, such transaction shall be treated by the Partnership and the affected Partner as if the
Partnership had compensated such Partner in cash and such Partner had contributed the cash to the
capital of the Partnership. In addition, with the consent of the General Partner, one or more
Limited Partners may enter into contribution agreements with the Partnership which have the effect
of providing a guarantee of certain obligations of the Partnership.

     Section 4.10. Not Publicly Traded. The General Partner, on behalf of the Partnership,
shall use its best efforts not to take any action which would result in the Partnership being a
“publicly traded partnership” under and as such term is defined in Code Section 7704(b).

ARTICLE V

DISTRIBUTIONS

     Section 5.1. Requirement and Characterization of Distributions. Subject to the terms
of any Partnership Unit Designation, the General Partner shall cause the Partnership to distribute
at least quarterly all Available Cash generated by the Partnership during such quarter to the
Holders of Partnership Units on such Partnership Record Date with respect to such quarter: (1)
first, with respect to any Partnership Interests that are entitled to any preference in
distribution, in accordance with the rights of such class(es) of Partnership Interests (and, within
such class(es), pro rata in proportion to the respective Percentage Interests on such Partnership
Record Date) and (2) second, with respect to any Partnership Interests that are not entitled to any
preference in distribution, in accordance with the rights of such class of Partnership Interests
(and, within such class, pro rata in proportion to the respective Percentage Interests on such
Partnership Record Date). Distributions payable with respect to any Partnership Units that were
not outstanding during the entire quarterly period in respect of which any distribution is made
shall be prorated based on the portion of the period that such units were outstanding. The General
Partner in its sole and absolute discretion may distribute to the Holders Available Cash on a more
frequent basis and provide for an appropriate Partnership Record Date. Notwithstanding anything
herein to the contrary, the General Partner shall make such reasonable efforts, as determined by it
in its sole and absolute discretion and consistent with the Parent’s qualification as a REIT, to
cause the Partnership to distribute sufficient amounts to enable the Parent to pay stockholder
dividends that will (a) satisfy the requirements for its qualification as a REIT under the Code and
Regulations (the “REIT Requirements”) and (b) except to the extent otherwise determined by
the Parent, in its sole and absolute discretion, avoid any federal income or excise tax liability
of the Parent.

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     Section 5.2. Distributions In-Kind. No right is given to any Partner to demand and
receive property other than cash as provided in this Agreement. The General Partner may determine,
in its sole and absolute discretion, to make a distribution in-kind of Partnership assets to the
Holders, and such assets shall be distributed in such a fashion as to ensure that the fair market
value is distributed and allocated in accordance with Articles V, VI and X
hereof.

     Section 5.3. Amounts Withheld. All amounts withheld pursuant to the Code or any
provisions of any state or local tax law and Section 10.4 hereof with respect to any
allocation, payment or distribution to any Holder shall be treated as amounts paid or distributed
to such Holder pursuant to Section 5.1 hereof for all purposes under this Agreement.

     Section 5.4. Distributions Upon Liquidation. Notwithstanding the other provisions of
this Article V, net proceeds from a Terminating Capital Transaction, and any other cash
received or reductions in reserves made after commencement of the liquidation of the Partnership,
shall be distributed to the Holders in accordance with Section 13.2 hereof.

     Section 5.5. Distributions to Reflect Issuance of Additional Partnership Units.
Notwithstanding Section 7.3.B hereof, in the event that the Partnership issues additional
Partnership Units pursuant to the provisions of Article IV hereof, subject to Section
7.3.D, the General Partner is hereby authorized to make such revisions to this Article
V as it determines are necessary or desirable to reflect the issuance of such additional
Partnership Units, including, without limitation, making preferential distributions to certain
classes of Partnership Units.

     Section 5.6. Restricted Distributions. Notwithstanding any provision to the contrary
contained in this Agreement, neither the Partnership nor the General Partner, on behalf of the
Partnership, shall make a distribution to any Holder on account of its Partnership Interest or
interest in Partnership Units if such distribution would violate Section 17-607 of the Act or other
applicable law.

ARTICLE VI

ALLOCATIONS

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

     Section 6.2. General Allocations.

          A. Allocations of Net Income and Net Loss.

                    (a) Net Income. Except as otherwise provided herein, Net
Income for any Partnership
Year or other applicable period shall be allocated in the following order and priority:

          (i) First, to the General Partner to the extent the cumulative Net Loss allocated to
the General Partner pursuant to subparagraph (b)(iv) below exceeds the cumulative Net Income
allocated to the General Partner pursuant to this subparagraph (a)(i);

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          (ii) Second, to the holders of any Partnership Interests that are entitled to any
preference in distribution upon liquidation in the order of the priorities of each such
class (and within each such class pro rata in proportion to the amount of Net Losses
allocated pursuant to subparagraph (b)(iii) below to the Partners in such class that have
not previously been reversed by allocations of Net Income pursuant to this subparagraph
(a)(ii)) until the cumulative Net Income allocated under this subparagraph (a)(ii) equals
the cumulative Net Loss allocated to such Partners under subparagraph (b)(iii);

          (iii) Third, to the holders of any Partnership Units that are entitled to any
preference in distribution in accordance with the rights of any other class of Partnership
Units until each such Partnership Unit has been allocated, on a cumulative basis pursuant to
this subparagraph (a)(iii), Net Income equal to the amount of distributions received which
are attributable to the preference of such class of Partnership Unit (and, within such
class, pro rata in proportion to the respective Percentage Interests as of the last day of
the period for which such allocation is made); and

          (iv) Thereafter, with respect to Partnership Units that are not entitled to any
preference in distribution or with respect to which distributions are not limited to any
preference in distribution, pro rata to each such class in accordance with the terms of such
class (and, within such class, pro rata in proportion to the respective Percentage Interests
as of the last day of the period for which such allocation is being made).

                    (b) Net Loss. Except as otherwise provided herein, Net
Loss for any Partnership Year
or other applicable period shall be allocated in the following order and priority:

          (i) First, to each holder of Partnership Units in proportion to and to the extent of
the amount by which the cumulative Net Income allocated to such Partner pursuant to
subparagraph (a)(iv) above exceeds, on a cumulative basis, the sum of (a) distributions with
respect to such Partnership Units pursuant to clause (1) of Section 5.1 and (b) Net
Loss allocated to such Partner pursuant to this subparagraph (b)(i);

          (ii) Second, with respect to classes of Partnership Units that are not entitled to any
preference in distribution or with respect to which distributions are not limited to any
preference in distribution, pro rata to each such class in accordance with the terms of such
class (and within such class, pro rata in proportion to the respective Percentage Interests
as of the last day of the period for which such allocation is being made); provided
that Net Loss shall not be allocated to any Partner pursuant to this subparagraph (b)(ii) to
the extent that such allocation would cause such Partner to have an Adjusted Capital Account
Deficit (or increase any existing Adjusted Capital Account Deficit) (determined in each case
with respect to a Partner who also holds classes of Partnership Units that are entitled to
any preferences in distribution upon liquidation, by subtracting from such Partners’
Adjusted Capital Account the amount of such preferred distribution to be made upon
liquidation), at the end of such Partnership Year or other applicable period;

          (iii) Third, with respect to classes of Partnership Units that are entitled to any
preference in distribution upon liquidation, in reverse order of the priorities of each such
class (and within each such class, pro rata in proportion to their respective Percentage
Interests as of the last day of the period for which such allocation is being made;
provided that Net Loss shall not be allocated to any Partner pursuant to this
subparagraph (b)(iii) to the extent that such allocation would cause such Partner to have an
Adjusted Capital Account Deficit (or increase any

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existing Adjusted Capital Account Deficit) at the end of such Partnership Year or other
applicable period; and

          (iv) Thereafter, to the General Partner.

          B. Allocations to Reflect Issuance of Additional Partnership Units. Notwithstanding
Section 7.3.B hereof, in the event that the Partnership issues additional Partnership Units
pursuant to the provisions of Article IV hereof, the General Partner is hereby authorized
to make such revisions to this Section 6.2 as it determines are necessary or desirable to
reflect the terms of the issuance of such additional Partnership Units.

     Section 6.3. Additional Allocation Provisions. Notwithstanding the foregoing
provisions of this Article VI:

          A. Regulatory Allocations.

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

          (ii) Partner Minimum Gain Chargeback. Except as otherwise provided in
Regulations Section 1.704-2(i)(4) or in Section 6.3.A(i) hereof, if there is a net
decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any
Partnership Year, each Holder who has a share of the Partner Minimum Gain attributable to
such Partner Nonrecourse Debt, determined in accordance with Regulations Section
1.704-2(i)(5), shall be specially allocated items of Partnership income and gain for such
year (and, if necessary, subsequent years) in an amount equal to such Holder’s share of the
net decrease in Partner Minimum Gain attributable to such Partner Nonrecourse Debt,
determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to
the previous sentence shall be made in proportion to the respective amounts required to be
allocated to each General Partner, Limited Partner and other Holder pursuant thereto. The
items to be so allocated shall be determined in accordance with Regulations Sections
1.704-2(i)(4) and 1.704-2(j)(2). This Section 6.3.A(ii) is intended to qualify as a
“chargeback of partner nonrecourse debt minimum gain” within the meaning of Regulations
Section 1.704-2(i) and shall be interpreted consistently therewith.

          (iii) Nonrecourse Deductions and Partner Nonrecourse Deductions. Any
Nonrecourse Deductions for any Partnership Year shall be specially allocated to the Holders
of Partnership Units in accordance with their Partnership Units. Any Partner Nonrecourse
Deductions for any Partnership Year shall be specially allocated to the Holder(s) who bears
the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner
Nonrecourse Deductions are attributable, in accordance with Regulations Section 1.704-2(i).

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          (iv) Qualified Income Offset. If any Holder unexpectedly receives an
adjustment, allocation or distribution described in Regulations Section
1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of Partnership income and gain shall be
allocated, in accordance with Regulations Section 1.704-1(b)(2)(ii)(d), to such Holder in an
amount and manner sufficient to eliminate, to the extent required by such Regulations, the
Adjusted Capital Account Deficit of such Holder as quickly as possible. It is intended that
this Section 6.3.A(iv) qualify and be construed as a “qualified income offset”
within the meaning of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
consistently therewith.

          (v) Gross Income Allocation. In the event that any Holder has an Adjusted
Capital Account Deficit at the end of any Partnership Year, each such Holder shall be
specially allocated items of Partnership income and gain in the amount of such excess to
eliminate such deficit as quickly as possible.

          (vi) Section 754 Adjustment. To the extent that an adjustment to the adjusted
tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is
required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section
1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the
result of a distribution to a Holder in complete liquidation of its interest in the
Partnership, the amount of such adjustment to the Capital Accounts shall be treated as an
item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis), and such gain or loss shall be specially allocated to the Holders in
accordance with their Partnership Units in the event that Regulations Section
1.704-1(b)(2)(iv)(m)(2) applies, or to the Holders to whom such distribution was made in the
event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

          (vii) Curative Allocations. The allocations set forth in Sections
6.3.A(i), (ii), (iii), (iv), (v), and (vi)
hereof (the “Regulatory Allocations”) are intended to comply with certain regulatory
requirements, including the requirements of Regulations Sections 1.704-1(b) and 1.704-2.
Notwithstanding the provisions of Section 6.1 hereof, the Regulatory Allocations
shall be taken into account in allocating other items of income, gain, loss and deduction
among the Holders of Partnership Units so that to the extent possible without violating the
requirements giving rise to the Regulatory Allocations, the net amount of such allocations
of other items and the Regulatory Allocations to each Holder of a Partnership Unit shall be
equal to the net amount that would have been allocated to each such Holder if the Regulatory
Allocations had not occurred.

          B. Allocation of Excess Nonrecourse Liabilities. The Partnership shall allocate
“nonrecourse liabilities” (within the meaning of Regulations Section 1.752-1(a)(2)) of the
Partnership that are secured by multiple Properties under any reasonable method chosen by the
General Partner in accordance with Regulations Section 1.752-3(a)(2) and (b). The Partnership
shall allocate “excess nonrecourse liabilities” of the Partnership under any method approved under
Regulations Section 1.752-3(a)(3) as chosen by the General Partner.

          C. Special Allocations Regarding LTIP Units. Notwithstanding the provisions of
Section 6.2 above, Liquidating Gains shall first be allocated to the LTIP Units holders
until the Economic Capital Account Balances of such Holders, to the extent attributable to their
ownership of LTIP Units, are equal to (i) the OP Unit Economic Balance, multiplied by (ii) the
number of their LTIP Units; provided that no such Liquidating Gains will be allocated with respect
to any particular LTIP Unit unless and to the extent that the OP Unit Economic Balance equals or
exceeds the OP Unit Economic Balance in existence at the time such LTIP Unit was issued. For this
purpose, “Liquidating Gains” means net capital gains realized in connection with the actual or
hypothetical sale of all or substantially all of the assets of the

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Partnership, including but not limited to net capital gain realized in connection with an
adjustment to the Gross Asset Value of Partnership assets under Section 704(b) of the Code. The
“Economic Capital Account Balances” of the LTIP Unit holders will be equal to their Capital Account
balances to the extent attributable to their ownership of LTIP Units, plus the amount of their
allocable share of any Partner Minimum Gain or Partnership Minimum Gain attributable to such LTIP
Units. Similarly, the “OP Unit Economic Balance” shall mean (i) the Capital Account balance of the
General Partner, plus the amount of the General Partner’s share of any Partner Minimum Gain or
Partnership Minimum Gain, in either case to the extent attributable to the General Partner’s
ownership of OP Units and computed on a hypothetical basis after taking into account all
allocations through the date on which any allocation is made under this Section 6.3.C
(including, without limitation, any expenses of the Partnership reimbursed to the General Partner
pursuant to Section 7.4.B), divided by (ii) the number of the General Partner’s OP Units.
Any such allocations shall be made among the LTIP Unitholders in proportion to the amounts required
to be allocated to each under this Section 6.3.C. The parties agree that the intent of
this Section 6.3.C is to make the Capital Account balance associated with each LTIP Unit to
be economically equivalent to the Capital Account balance associated with the General Partner’s OP
Units (on a per-Unit basis), but only if and to the extent that the Capital Account balance
associated with the General Partner’s OP Units has remained the same or increased on a per-Unit
basis since the issuance of the relevant LTIP Unit.

     Section 6.4. Tax Allocations.

          A. In General. Except as otherwise provided in this Section 6.4, for income
tax purposes under the Code and the Regulations each Partnership item of income, gain, loss and
deduction (collectively, “Tax Items”) shall be allocated among the Holders of Partnership
Units in the same manner as its correlative item of “book” income, gain, loss or deduction is
allocated pursuant to Sections 6.2 and 6.3 hereof.

          B. Allocations Respecting Section 704(c) Revaluations. Notwithstanding Section
6.4.A hereof, Tax Items with respect to Property that is contributed to the Partnership with a
Gross Asset Value that varies from its adjusted tax basis in the hands of the contributing Partner
immediately preceding the date of contribution shall be allocated among the Holders of Partnership
Units for income tax purposes pursuant to Regulations promulgated under Code Section 704(c) so as
to take into account such variation. The Partnership shall account for such variation under any
method approved under Code Section 704(c) and the applicable Regulations as chosen by the General
Partner, including, without limitation, the “remedial allocation method” as described in
Regulations Section 1.704-3(d). In the event that the Gross Asset Value of any partnership asset
is adjusted pursuant to subsection (b) of the definition of “Gross Asset Value” (provided
in Article I hereof), subsequent allocations of Tax Items with respect to such asset shall
take account of the variation, if any, between the adjusted basis of such asset and its Gross Asset
Value in the same manner as under Code Section 704(c) and the applicable Regulations.

ARTICLE VII

MANAGEMENT AND OPERATIONS OF BUSINESS

     Section 7.1. Management.

          A. Except as otherwise expressly provided in this Agreement, all management powers over the
business and affairs of the Partnership are and shall be exclusively vested in the General Partner,
and no Limited Partner shall have any right to participate in or exercise control or management
power over the business and affairs of the Partnership. The General Partner may not be removed by
the Partners with or without cause, except with the consent of the General Partner. In addition to
the powers now or hereafter granted to a general partner of a limited partnership under applicable
law or that are granted to

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the General Partner under any other provision of this Agreement, the General Partner, subject
to the other provisions hereof including Section 7.3, 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) to engage in investment activities as the General Partner may determine, including
to purchase, sell, exchange, write, receive, invest and reinvest in, and otherwise trade,
directly or indirectly, in and with (x) Debt Assets, (y) capital stock, pre-organization
certificates and subscriptions, warrants, trust receipts, bonds, notes, convertible debt,
bank loans and any other Debt (in each case, whether senior or subordinated or secured or
unsecured), and other restricted or marketable, equity, debt or equity or debt-related
securities, obligations, or interests including any combination of the foregoing and
including direct or indirect interests or participations therein or other similar
securities, obligations or interests, including shares of beneficial interest, warrants,
rights or options (including puts and calls) to purchase equity, debt, or equity- or
debt-related securities, obligations or interests, limited and general partnership
interests, trade credits or obligations, or debt-related securities, obligations or
interests issued, in each case, in connection with, related to or arising from Debt Assets,
and (z) other Property and funds (which shall include borrowing money, encumbering assets
and otherwise incurring indebtedness (including the issuance of guarantees of the payment or
performance obligations of any Person) in connection with or in furtherance of the
acquisition of all or a significant portion of or the financing of a Debt Asset or
Property);

          (ii) the making of any expenditures, the lending or borrowing of money (including,
without limitation, making prepayments on loans and borrowing money or selling assets to
permit the Partnership to make distributions to its Partners in such amounts as will permit
the Parent (so long as the Parent desires to maintain or restore its status as a REIT) to
avoid the payment of any federal income tax (including, for this purpose, any excise tax
pursuant to Code Section 4981) and to make distributions to its stockholders sufficient to
permit the Parent to maintain or restore REIT status or otherwise to satisfy the REIT
Requirements), the assumption or guarantee of, or other contracting for, indebtedness and
other liabilities, the issuance of evidences of indebtedness (including the securing of same
by deed to secure debt, mortgage, deed of trust or other lien or encumbrance on the
Partnership’s assets) and the incurring of any obligations that it deems necessary for the
conduct of the activities of the Partnership;

          (iii) 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, the registration of any class of securities of the Partnership
under the Exchange Act and the listing of any debt securities of the Partnership on any
exchange;

          (iv) the acquisition, sale, lease, transfer, exchange or other disposition of any, all
or substantially all of the assets of the Partnership (including, but not limited to, the
exercise or grant of any conversion, option, privilege or subscription right or any other
right available in connection with any assets at any time held by the Partnership) or the
merger, consolidation, reorganization or other combination of the Partnership with or into
another entity;

          (v) the mortgage, pledge, encumbrance or hypothecation of any assets of the
Partnership, 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 that
it sees fit, including, without limitation, the financing of the operations and activities
of the General Partner,

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the Partnership or any of the Partnership’s Subsidiaries, the lending of funds to other
Persons (including, without limitation, the Partnership’s Subsidiaries) and the repayment of
obligations of the Partnership, its Subsidiaries and any other Person in which the
Partnership has an equity investment, and the making of capital contributions to and equity
investments in the Partnership’s Subsidiaries;

          (vi) the management, operation, leasing, landscaping, repair, alteration, demolition,
replacement or improvement of any Property, including, without limitation, any Contributed
Property, or other asset of the Partnership or any Subsidiary, whether pursuant to a
Services Agreement or otherwise;

          (vii) the negotiation, execution and performance of any contracts, leases, 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;

          (viii) the distribution of Partnership cash or other Partnership assets in accordance
with this Agreement, the holding, management, investment and reinvestment of cash and other
assets of the Partnership and the collection and receipt of revenues, rents and income of
the Partnership;

          (ix) the maintenance of such insurance for the benefit of the Partnership and the
Partners as it deems necessary or appropriate, including, without limitation, (i) casualty,
liability and other insurance on the Properties and (ii) liability insurance for the
Indemnitees hereunder;

          (x) the formation of, or acquisition of an interest in, and the contribution of
property to, any further limited or general partnerships, limited liability companies, joint
ventures or other relationships that it deems desirable (including, without limitation, the
acquisition of interests in, and the contributions of property to, any Subsidiary and any
other Person in which it has an equity investment from time to time); provided,
however, that, as long as the Parent has determined to continue to qualify as a
REIT, the General Partner may not engage in any such formation, acquisition or contribution
that would cause the Parent to fail to qualify as a REIT within the meaning of Code Section
856(a);

          (xi) the control of any matters affecting the rights and obligations of the
Partnership, including 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, the commencement or defense of suits,
legal proceedings, administrative proceedings, arbitrations or other forms of dispute
resolution, and the representation of the Partnership in all suits or legal proceedings,
administrative proceedings, arbitrations or other forms of dispute resolution, the incurring
of legal expense, and the indemnification of any Person against liabilities and
contingencies to the extent permitted by law;

          (xii) the undertaking of any action in connection with the Partnership’s direct or
indirect investment in any Subsidiary or any other Person (including, without limitation,
the contribution or loan of funds by the Partnership to such Persons);

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          (xiii) except as otherwise specifically set forth in this Agreement, the determination
of the fair market value of any Partnership property distributed in-kind using such
reasonable method of valuation as it may adopt; provided that such methods are
otherwise consistent with the requirements of this Agreement;

          (xiv) the enforcement of any rights against any Partner pursuant to representations,
warranties, covenants and indemnities relating to such Partner’s contribution of property or
assets to the Partnership;

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

          (xviii) the making, execution and delivery of any and all deeds, leases, notes, deeds
to secure debt, 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 powers of the General Partner enumerated in this Agreement;

          (xix) the issuance of additional Partnership Units, as appropriate and in the General
Partner’s sole and absolute discretion, in connection with Capital Contributions by
Additional Limited Partners and additional Capital Contributions by Partners pursuant to
Article IV hereof;

          (xx) the selection and dismissal of Company Employees (including, without limitation,
employees having titles or offices such as president, vice president, secretary and
treasurer), and agents, outside attorneys, accountants, consultants and contractors of the
Partnership or the General Partner, the determination of their compensation and other terms
of employment or hiring and the delegation to any such Company Employee the authority to
conduct the business of the Partnership in accordance with the terms of this Agreement;

          (xxi) the distribution of cash to acquire Partnership Units held by a Limited Partner
in connection with a Limited Partner’s exercise of its Redemption under Section 8.6
hereof;

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

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as long as the matter or event being reflected in Exhibit A hereto otherwise is
authorized by this Agreement;

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

          (xxiv) an election to dissolve the Partnership pursuant to Section 13.1.D
hereof; and

          (xxv) the taking of any action necessary or appropriate to enable the Parent to qualify
as a REIT.

          B. Each of the Limited Partners agrees that, except as provided in Section 7.3 hereof,
the General Partner is authorized to execute, deliver and perform the above-mentioned agreements
and transactions on behalf of the Partnership without any further act, approval or vote of the
Partners, notwithstanding any other provision of this Agreement, the Act or any applicable law,
rule or regulation.

          C. At all times from and after the date hereof, the General Partner may cause the Partnership
to establish and maintain working capital and other reserves in such amounts as the General
Partner, in its sole and absolute discretion, deems appropriate and reasonable from time to time.

          D. In exercising its authority under this Agreement, the General Partner may, but shall be
under no obligation to, take into account the tax consequences to any Partner (including the
General Partner) of any action taken (or not taken) by it. Except as may be provided in a separate
written agreement between the Partnership and the Limited Partners, the General Partner and the
Partnership shall have no liability to a Limited Partner under any circumstances as a result of an
income tax liability incurred by such Limited Partner as a result of an action (or inaction) by the
General Partner pursuant to its authority under this Agreement, provided that the General Partner
has acted in good faith and pursuant to its authority under this Agreement.

     Section 7.2. Certificate of Limited Partnership. 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 the things to
maintain the Partnership as a limited partnership (or a partnership in which the limited partners
thereof have limited liability) under the laws of the State of Delaware and each other state, the
District of Columbia or any other jurisdiction, in which the Partnership may elect to do business
or own property. Except as otherwise required under the Act, 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. 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 thereof have limited liability to the extent provided by applicable
law) in the State of Delaware and any other state, or the District of Columbia or other
jurisdiction, in which the Partnership may elect to do business or own property.

     Section 7.3. Restrictions on General Partner’s Authority.

          A. The General Partner may not take any action in contravention of an express prohibition or
limitation of this Agreement without the written consent of a Majority in Interest of the Outside
Limited Partners and may not (1) perform any act that would subject a Limited Partner to liability
as a general partner in any jurisdiction or any other liability except as provided herein or under
the Act; or (2) enter into any contract, mortgage, loan or other agreement that prohibits or
restricts, or has the effect

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of prohibiting or restricting, the ability of a Limited Partner to exercise its rights to a
Redemption in full, except in each case with the written consent of such Limited Partner.

          B. The General Partner shall not, without the written consent of a Majority in Interest
of the Outside Limited Partners, except as provided in Sections 4.3.A, 5.5,
6.2.B and 7.3.C hereof, amend, modify or terminate this Agreement.

          C. Notwithstanding Sections 7.3.B and 14.2, the General Partner shall have the
exclusive power, without the prior consent of the Limited Partners, to amend this Agreement as may
be required to facilitate or implement any of the following purposes:

          (i) to add to the obligations of the General Partner or surrender any right or power
granted to the General Partner or any Affiliate of the General Partner for the benefit of
the Limited Partners;

          (ii) to reflect the admission, substitution or withdrawal of Partners or the
termination of the Partnership in accordance with this Agreement, and to amend Exhibit
A in connection with such admission, substitution or withdrawal;

          (iii) to reflect a change that is of an inconsequential nature and does not adversely
affect the Limited Partners in any material respect, or to cure any ambiguity, correct or
supplement any provision in this Agreement not inconsistent with law or with other
provisions, or make other changes with respect to matters arising under this Agreement that
will not be inconsistent with law or with the provisions of this Agreement;

          (iv) to satisfy any requirements, conditions or guidelines contained in any order,
directive, opinion, ruling or regulation of a federal or state agency or contained in
federal or state law;

          (v) (a) to reflect such changes as are reasonably necessary for the Parent to maintain
or restore its status as a REIT or to satisfy the REIT Requirements; or (b) to reflect the
Transfer of all or any part of a Partnership Interest among the General Partner, the Parent
and any Qualified REIT Subsidiary;

          (vi) to modify the manner in which Capital Accounts are computed (but only to the
extent set forth in the definition of “Capital Account” or contemplated by the Code
or the Regulations); and

          (vii) to issue additional Partnership Interests in accordance with Section 4.3.

     The General Partner will provide notice to the Limited Partners whenever any action under this
Section 7.3.C is taken.

          D. Notwithstanding Sections 7.3.B and 7.3.C hereof, this Agreement shall not
be amended, and no action may be taken by the General Partner, without the consent of each Partner
adversely affected thereby, if such amendment or action would (i) convert a Limited Partner
Interest in the Partnership into a General Partner Interest (except as a result of the General
Partner acquiring such Partnership Interest), (ii) modify the limited liability of a Limited
Partner or (iii) amend this Section 7.3.D. Further, no amendment may alter the
restrictions on the General Partner’s authority set forth elsewhere in this Section 7.3 or
in Section 11.2.B without the consent specified therein. Any such

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amendment or action consented to by any Partner shall be effective as to that Partner,
notwithstanding the absence of such consent by any other Partner.

     Section 7.4. Reimbursement of the General Partner and Parent.

          A. Except as provided in this Section 7.4 and elsewhere in this Agreement (including
the provisions of Articles V and VI regarding distributions, payments and
allocations to which it may be entitled), the General Partner shall not be compensated for its
services as general partner of the Partnership.

          B. The Partnership shall be responsible for and shall pay all expenses relating to the
Partnership’s, the General Partner’s and the Parent’s organization, the ownership of their assets
and their operations. The General Partner and/or the Parent are hereby authorized to pay
compensation for accounting, administrative, legal, technical, management and other services
rendered to the Partnership. Except to the extent provided in this Agreement, the General Partner,
the Parent and their Affiliates shall be reimbursed on a monthly basis, or such other basis as the
General Partner may determine in its sole and absolute discretion, for all expenses that the
General Partner, the Parent and their Affiliates incur relating to the ownership and operation of,
or for the benefit of, the Partnership (including, without limitation, administrative expenses);
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. The Partners acknowledge that all such expenses of the General Partner
and/or the Parent are deemed to be for the benefit of the Partnership. Such reimbursement shall be
in addition to any reimbursement made as a result of indemnification pursuant to Section
7.7 hereof. In the event that certain expenses are incurred for the benefit of the Partnership
and other entities (including the General Partner and/or the Parent), such expenses will be
allocated to the Partnership and such other entities in such a manner as the General Partner in its
sole and absolute discretion deems fair and reasonable. All payments and reimbursements hereunder
shall be characterized for federal income tax purposes as expenses of the Partnership incurred on
its behalf, and not as expenses of the General Partner and/or the Parent.

          C. If the Parent shall elect to purchase from its stockholders REIT Shares for the purpose of
delivering such REIT Shares to satisfy an obligation under any dividend reinvestment program
adopted by the Parent, any employee share purchase plan adopted by the Parent or any similar
obligation or arrangement undertaken by the Parent in the future or for the purpose of retiring
such REIT Shares, the purchase price paid by the Parent for such REIT Shares and any other expenses
incurred by the Parent in connection with such purchase shall be considered expenses of the
Partnership and shall be advanced to the Parent or reimbursed to the Parent, subject to the
condition that: (1) if such REIT Shares subsequently are sold by the Parent in an arms-length
transaction, the Parent shall pay or cause to be paid to the Partnership any proceeds received by
the Parent for such REIT Shares (which sales proceeds shall include the amount of dividends
reinvested under any dividend reinvestment or similar program; provided, that a transfer of REIT
Shares for Partnership Units pursuant to Section 8.6 would not be considered a sale for
such purposes); and (2) if such REIT Shares are not sold by the Parent in an arms-length
transaction within 30 days after the purchase thereof, or the Parent otherwise determines not to
sell such REIT Shares, the Parent shall cause the Partnership to redeem a number of Partnership
Units held by the General Partner and/or the Parent equal to the number of such REIT Shares, as
adjusted for share dividends and distributions, share splits and subdivisions, reverse share splits
and combinations, distributions of rights, warrants or options, and distributions of evidences of
indebtedness or assets relating to assets not received by the General Partner pursuant to a pro
rata distribution by the Partnership (in which case such advancement or reimbursement of expenses
shall be treated as having been made as a distribution in redemption of such number of Partnership
Units held by the General Partner).

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          D. As set forth in Section 4.3, the General Partner shall be treated as having made a
Capital Contribution in the amount of all expenses that the Parent incurs relating to the Parent’s
offering of REIT Shares, Preferred Stock, Junior Stock or New Securities.

          E. If and to the extent any reimbursements to the General Partner pursuant to this Section
7.4 constitute gross income of the General Partner (as opposed to the repayment of advances
made by the General Partner on behalf of the Partnership), such amounts shall constitute guaranteed
payments with respect to capital within the meaning of Code Section 707(c), 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.

     Section 7.5. Outside Activities of the General Partner. The General Partner shall not
directly or indirectly enter into or conduct any business, other than in connection with (a) the
ownership, acquisition and disposition of Partnership Interests as General Partner, (b) the
management of the business of the Partnership, (c) if the General Partner becomes a reporting
company with a class (or classes) of securities registered under the Exchange Act, the operation of
the General Partner as such, (d) financing or refinancing of any type related to the Partnership or
its assets or activities, (e) any of the foregoing activities as they relate to a Subsidiary of the
Partnership, and (f) such activities as are incidental thereto. Nothing contained herein shall be
deemed to prohibit the General Partner from executing guarantees of Partnership debt for which it
would otherwise be liable in its capacity as General Partner. In addition, the General Partner
may, to the extent necessary to comply with regulatory requirements of certain Limited Partners or
otherwise provide for tax efficiency, elect to hold directly certain equity interests of
Partnership Subsidiaries. In such case, the General Partner shall (i) amend Section 5.1 of
this Agreement so as to provide that while such equity interests are held directly by the General
Partner, each Partner other than the General Partner will receive the same distributions that it
would have received had such equity interest been held by the Partnership rather than directly by
the General Partner (and a corresponding adjustment shall be made to the distributions to be made
to the General Partner); and (ii) make such further amendments to this Agreement (including,
without limitation, to the Net Income and Net Loss allocation provisions of Section 6.1
hereof) as may be necessary or appropriate to effect the intention of the Partners that the
Partners be placed, as nearly as possible, in the same position they would have been placed had
such equity interests been held by the Partnership rather than directly by the General Partner;
provided, however, that the General Partner shall in no event be required to make
contributions to the Partnership to fund distributions to the other Partners.

     Section 7.6. Contracts with Affiliates.

          A. 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 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. The Partnership may transfer assets to joint ventures, limited liability companies,
partnerships, corporations, business trusts or other business entities in which it is or thereby
becomes a participant upon such terms and subject to such conditions consistent with this Agreement
and applicable law as the General Partner, in its sole and absolute discretion, believes to be
advisable.

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

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          D. The General Partner and/or the Parent, 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 funded by the Partnership for the benefit of employees of the Parent, the General
Partner, the Partnership, 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 or any of
the Partnership’s Subsidiaries.

          E. The General Partner is expressly authorized to enter into, in the name and on behalf of the
Partnership, any Services Agreement with Affiliates of any of the Partnership or the General
Partner, on such terms as the General Partner, in its sole and absolute discretion, believes are
advisable.

     Section 7.7. Indemnification.

          A. To the fullest extent permitted by applicable law, the Partnership shall indemnify each
Indemnitee from and against any and all losses, claims, damages, liabilities (whether joint or
several), expenses (including, without limitation, attorney’s fees and other legal fees and
expenses), judgments, fines, settlements and other amounts arising from any and all claims,
demands, actions, suits or proceedings, civil, criminal, administrative or investigative, that
relate to the operations of the Partnership (“Actions”) as set forth in this Agreement in
which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise;
provided, however, that the Partnership shall not indemnify an Indemnitee (1) for
grossly negligent acts, willful misconduct or a knowing violation of the law, (2) for any
transaction for which such Indemnitee received an improper personal benefit in violation or breach
of any provision of this Agreement, or (3) in the case of any criminal proceeding, the Indemnitee
had reasonable cause to believe that the act or omission was unlawful. Without limitation, the
foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty or
otherwise, for any indebtedness of the 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 indemnity agreements consistent with the provisions
of this Section 7.7 in favor of any Indemnitee having or potentially having liability for
any such indebtedness. The termination of any proceeding by judgment, order or settlement does not
create a presumption that the Indemnitee did not meet the requisite standard of conduct set forth
in this Section 7.7.A. Any indemnification pursuant to this Section 7.7 shall be
made only out of the assets of the Partnership and any insurance proceeds from the liability policy
covering the General Partner and any Indemnitees, 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 7.7.

          B. To the fullest extent permitted by law, expenses incurred by an Indemnitee who is a party
to a proceeding or otherwise subject to or the focus of or is involved in any Action may be paid or
reimbursed by the Partnership as incurred by the Indemnitee in advance of the final disposition of
the Action upon receipt by the Partnership of (1) a written affirmation by the Indemnitee of the
Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the
Partnership as authorized in Section 7.7.A has been met and (2) a written undertaking by or
on behalf of the Indemnitee to repay the amount if it shall ultimately be determined that the
standard of conduct has not been met.

          C. The indemnification provided by this Section 7.7 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to
any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee
who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors,
assigns and

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administrators of the Indemnitee unless otherwise provided in a written agreement with such
Indemnitee or in the writing pursuant to which such Indemnitee is indemnified.

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

          E. Any liabilities which an Indemnitee incurs as a result of acting on behalf of the
Partnership, the General Partner or the Parent (whether as a fiduciary or otherwise) in connection
with the operation, administration or maintenance of an employee benefit plan or any related trust
or funding mechanism (whether such liabilities are in the form of excise taxes assessed by the IRS,
penalties assessed by the Department of Labor, restitutions to such a plan or trust or other
funding mechanism or to a participant or beneficiary of such plan, trust or other funding
mechanism, or otherwise) shall be treated as liabilities or judgments or fines under this
Section 7.7, unless such liabilities arise as a result of (1) such Indemnitee’s intentional
misconduct or knowing violation of the law, (2) any transaction in which such Indemnitee received a
personal benefit in violation or breach of any provision of this Agreement or applicable law, or
(3) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the
act or omission was unlawful.

          F. 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.

          G. An Indemnitee shall not be denied indemnification in whole or in part under this
Section 7.7 because the Indemnitee had an interest in the transaction with respect to which
the indemnification applies if the transaction was otherwise permitted by the terms of this
Agreement.

          H. The provisions of this Section 7.7 are for the benefit of the Indemnitees, their
heirs, successors, assigns and administrators and shall not be deemed to create any rights for the
benefit of any other Persons. Any amendment, modification or repeal of this Section 7.7 or
any provision hereof shall be prospective only and shall not in any way affect the obligations of
the Partnership or the limitations on the Partnership’s liability to any Indemnitee under this
Section 7.7 as in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may arise or be asserted.

          I. If and to the extent any payments to the General Partner pursuant to this Section
7.7 constitute gross income to the General Partner (as opposed to the repayment of advances
made on behalf of the Partnership) such amounts shall be treated as “guaranteed payments” for the
use of capital within the meaning of Code Section 707(c), 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.

     Section 7.8. Liability of the General Partner.

          A. Notwithstanding anything to the contrary set forth in this Agreement, neither the General
Partner or any of its managers or officers nor the Parent or any of its directors or officers shall
be liable or accountable in damages or otherwise to the Partnership, any Partners or any Assignees
for losses sustained, liabilities incurred or benefits not derived as a result of errors in
judgment or mistakes of fact or law or of any act or omission if the General Partner or such
manager or officer acted in good faith.

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          B. The Limited Partners expressly acknowledge that the General Partner is acting for the
benefit of the Partnership, the Limited Partners and the Parent’s stockholders collectively and
that the General Partner is under no obligation to give priority to the separate interests of the
Limited Partners or the Parent’s stockholders (including, without limitation, the tax consequences
to Limited Partners, Assignees or the Parent’s stockholders) in deciding whether to cause the
Partnership to take (or decline to take) any actions. If there is a conflict between the interests
of the stockholders of the Parent on one hand and the Limited Partners on the other, the General
Partner shall endeavor in good faith to resolve the conflict in a manner not adverse to either the
stockholders of the Parent or the Limited Partners. The General Partner shall not be liable under
this Agreement to the Partnership or to any Partner for monetary damages for losses sustained,
liabilities incurred, or benefits not derived by Limited Partners in connection with such
decisions; provided, that the General Partner has acted in good faith.

          C. Subject to its obligations and duties as General Partner set forth in Section 7.1.A
hereof, the General Partner may exercise any of the powers granted to it by this Agreement and
perform any of the duties imposed upon it hereunder either directly or by or through its employees
or agents (subject to the supervision and control of the General Partner). The General Partner
shall not be responsible for any misconduct or negligence on the part of any such agent appointed
by it in good faith.

          D. To the extent that, at law or in equity, the General Partner has duties (including
fiduciary duties) and liabilities relating thereto to the Partnership or the Limited Partners, the
General Partner shall not be liable to the Partnership or to any other Partner for its good faith
reliance on the provisions of this Agreement.

          E. Notwithstanding anything herein to the contrary, except for fraud, willful misconduct or
gross negligence, or pursuant to any express indemnities given to the Partnership by any Partner
pursuant to any other written instrument, no Partner shall have any personal liability whatsoever,
to the Partnership or to the other Partner(s), for the debts or liabilities of the Partnership or
the Partnership’s obligations hereunder, and the full recourse of the other Partner(s) shall be
limited to the interest of that Partner in the Partnership. To the fullest extent permitted by
law, no officer, manager or member of the General Partner shall be liable to the Partnership for
money damages except for (1) active and deliberate dishonesty established by a non-appealable final
judgment or (2) actual receipt of an improper benefit or profit in money, property or services.
Without limitation of the foregoing, and except for fraud, willful misconduct or gross negligence,
or pursuant to any such express indemnity, no property or assets of any Partner, other than its
interest in the Partnership, shall be subject to levy, execution or other enforcement procedures
for the satisfaction of any judgment (or other judicial process) in favor of any other Partner(s)
and arising out of, or in connection with, this Agreement. This Agreement is executed by the
manager or member of the General Partner solely as manager or member of the same and not in their
own individual capacities.

          F. Any amendment, modification or repeal of this Section 7.8 or any provision hereof
shall be prospective only and shall not in any way affect the limitations on the General Partner’s,
and its officers’, managers’ and members’, liability to the Partnership and the Limited Partners
under this Section 7.8 as in effect immediately prior to such amendment, modification or
repeal with respect to claims arising from or relating to matters occurring, in whole or in part,
prior to such amendment, modification or repeal, regardless of when such claims may arise or be
asserted.

     Section 7.9. Other Matters Concerning the General Partner and the Parent.

          A. The General Partner and the Parent may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion, report, notice,

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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. The General Partner and the Parent 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 that the General Partner and the Parent reasonably
believe 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. The General Partner shall have the right, in respect of any of its powers or obligations
hereunder, to act through any of its duly authorized officers and a duly appointed attorney or
attorneys-in-fact. Each such attorney shall, to the extent provided by the General Partner in the
power of attorney, have full power and authority to do and perform all and every act and duty that
is permitted or required to be done by the General Partner hereunder.

          D. In the event the Parent desires to establish an investment committee (an “Investment
Committee”), the General Partner shall cause such Investment Committee to be established at the
Partnership, and the Investment Committee shall operate under the direction and guidelines of the
board of directors of the Parent, which guidelines may be amended by the board of directors of the
Parent at any time and from time to time.

          E. Notwithstanding any other provision of this Agreement or the Act, any action of the General
Partner or the Parent on behalf of the Partnership or any decision of the General Partner or the
Parent 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 (1) to protect the ability of the
Parent to continue to qualify as a REIT, (2) for the Parent otherwise to satisfy the REIT
Requirements, or (3) to avoid the Parent incurring any taxes under Code Section 857 or Code Section
4981, is expressly authorized under this Agreement and is deemed approved by all of the Limited
Partners.

     Section 7.10. Title to Partnership Assets. Title to Partnership assets, whether real,
personal or mixed and whether tangible or intangible, shall be deemed to be owned by the
Partnership as an entity, and no Partner, individually or collectively with other Partners or
Persons, shall have any ownership interest in such Partnership assets or any portion thereof.
Title to any or all of the Partnership assets may be held in the name of the Partnership, the
General Partner or one or more nominees, as the General Partner may determine, including Affiliates
of the General Partner. The General Partner hereby declares and warrants that any Partnership
assets for which legal title is held in the name of the General Partner or any nominee or Affiliate
of the General Partner shall be held by the General Partner for the use and benefit of the
Partnership in accordance with the provisions of this Agreement. 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.

     Section 7.11. Reliance by Third Parties. 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 assets of the Partnership
and to enter into any contracts on behalf of the Partnership, and take any and all actions on
behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if
it were the Partnership’s sole party in interest, both legally and beneficially. Each Limited
Partner hereby waives any and all defenses or other remedies that may be available against such
Person to contest, negate or disaffirm any action of the General Partner in connection with any
such dealing. In no event shall any Person dealing with the General Partner or its

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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. 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 in good faith thereon or claiming thereunder that (1) at the
time of the execution and delivery of such certificate, document or instrument, this Agreement was
in full force and effect, (2) 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 (3)
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 VIII

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

     Section 8.1. Limitation of Liability. The Limited Partners shall have no liability
under this Agreement (other than for breach thereof) except as expressly provided in Section
10.4 or under the Act.

     Section 8.2. Management of Business. No Limited Partner or Assignee (other than the
General Partner, any of its Affiliates or any officer, director, member, employee, partner, agent
or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as
such) shall take part in the operations, management or control (within the meaning of the Act) of
the Partnership’s business, transact any business in the Partnership’s name or have the power to
sign documents for or otherwise bind the Partnership. The transaction of any such business by the
General Partner, any of its Affiliates or any officer, director, member, employee, partner, agent,
representative, shareholder or trustee of the General Partner, the Partnership or any of their
Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations on the
liability of the Limited Partners or Assignees under this Agreement.

     Section 8.3. Outside Activities of Limited Partners. Subject to any agreements
entered into pursuant to Section 7.6.E hereof and any other agreements entered into by a
Limited Partner or its Affiliates with the General Partner, the Partnership, the Parent or any
Affiliate thereof (including, without limitation, any employment agreement), any Limited Partner
(other than the Parent) and any Assignee, officer, director, employee, agent, trustee, Affiliate,
member or shareholder of any Limited Partner shall be entitled to and may have business interests
and engage in business activities in addition to those relating to the Partnership, including
business interests and activities that are in direct or indirect competition with the Partnership
or that are enhanced by the activities of the Partnership. Neither the Partnership nor any Partner
shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner
or Assignee. Subject to such agreements, 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 (other than the General Partner, to the extent expressly
provided herein), and such Person shall have no obligation pursuant to this Agreement, subject to
Section 7.6.E hereof and any other agreements entered into by a Limited Partner or its
Affiliates with the General Partner, the Partnership, the Parent or any Affiliate thereof, to offer
any interest in any such business ventures to the Partnership, any Limited Partner, the Parent or
any such other Person, even if such opportunity is of a character that, if presented to the
Partnership, any Limited Partner, the Parent or such other Person, could be taken by such Person.

     Section 8.4. Return of Capital. Except pursuant to the rights of Redemption set forth
in Section 8.6 hereof, no Limited Partner shall be entitled to the withdrawal or return of
its Capital Contribution, except to the extent of distributions made pursuant to this Agreement,
upon termination of the Partnership as provided herein or upon a merger of the Parent or a sale by
the Parent of all or

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substantially all of its assets pursuant to Section 7.9.E hereof. Except to the
extent provided in Article VI hereof or 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 profits, losses or distributions.

     Section 8.5. Adjustment Factor. The Partnership shall notify any Limited Partner that
is a Qualifying Party, on request, of the then current Adjustment Factor or any change made to the
Adjustment Factor.

     Section 8.6. Redemption.

          A. On or after the date 9 months after the consummation of the Parent’s initial public
offering of its shares of common stock, with respect to the OP Units (including any LTIP Units that
are converted into OP Units) acquired on or prior to the consummation of such initial public
offering, each Limited Partner (other than the Parent) shall have the right (subject to the terms
and conditions set forth herein and in any other such agreement, as applicable) to require the
Partnership to redeem all or a portion of the OP Units held by such Limited Partner (such OP Units
being hereafter referred to as “Tendered Units”) in exchange for the Cash Amount (a
“Redemption”) unless the terms of such OP Units or a separate agreement entered into
between the Partnership and the holder of such OP Units provide that such OP Units are not entitled
to a right of Redemption; provided, however, that with respect to BRK Management
LLC this provision shall apply on or after the date twelve months after the consummation of the
Parent’s initial public offering of its shares of common stock. The Tendering Partner shall have
no right, with respect to any OP Units so redeemed, to receive any distributions paid on or after
the Specified Redemption Date. Any Redemption shall be exercised pursuant to a Notice of
Redemption delivered to the General Partner by the Limited Partner who is exercising the right (the
“Tendering Partner”). The Cash Amount shall be payable to the Tendering Partner on the
Specified Redemption Date.

          B. Notwithstanding Section 8.6.A above, if a Limited Partner has delivered to the
General Partner a Notice of Redemption then the Parent may, in its sole and absolute discretion,
(subject to the limitations on ownership and transfer of REIT Shares set forth in the Charter)
elect to assume and satisfy the General Partner’s Redemption obligation and acquire some or all of
the Tendered Units from the Tendering Partner in exchange for the REIT Shares Amount (as of the
Specified Redemption Date) and, if the Parent so elects, the Tendering Partner shall sell the
Tendered Units to the Parent in exchange for the REIT Shares Amount. In such event, the Tendering
Partner shall have no right to cause the Partnership to redeem such Tendered Units. The Parent
shall give such Tendering Partner written notice of its election on or before the close of business
on the fifth Business Day after the its receipt of the Notice of Redemption, and the Tendering
Partner may elect to withdraw its redemption request at any time prior to the acceptance of the
Cash Amount or REIT Shares Amount by such Tendering Partner. Assuming the Parent exercises its
option to deliver REIT Shares, the Parent shall retain or contribute the Tendered Units to the
General Partner.

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          C. The REIT Shares Amount, if applicable, shall be delivered as duly authorized, validly
issued, fully paid and nonassessable REIT Shares and, if applicable, free of any pledge, lien,
encumbrance or restriction, other than those provided in the Charter or the Bylaws, the Securities
Act, relevant state securities or blue sky laws and any applicable registration rights agreement
with respect to such REIT Shares entered into by the Tendering Partner. Notwithstanding any delay
in such delivery (but subject to Section 8.6.E), the Tendering Partner shall be deemed the
owner of such REIT Shares for all purposes, including without limitation, rights to vote or
consent, and receive dividends, as of the Specified Redemption Date. In addition, the REIT Shares
for which the Partnership Units might be exchanged shall also bear a legend which generally
provides the following:

Restriction on Ownership and Transfer

THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE OF THE COMPANY’S MAINTENANCE OF
ITS QUALIFICATION AS A REIT UNDER THE CODE. SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS
EXPRESSLY PROVIDED IN THE COMPANY’S CHARTER, (1) NO PERSON (OTHER THAN AN EXCEPTED HOLDER) MAY
BENEFICIALLY OR CONSTRUCTIVELY OWN OR BE DEEMED TO OWN BY VIRTUE OF THE ATTRIBUTION PROVISIONS OF
THE CODE (i) THE COMPANY’S SHARES OF COMMON STOCK IN EXCESS OF 9.8% (BY VALUE OR BY NUMBER OF
SHARES, WHICHEVER IS MORE RESTRICTIVE) OF THE OUTSTANDING SHARES OF COMMON STOCK OF THE COMPANY OR
(ii) SHARES OF THE COMPANY IN EXCESS OF 9.8% (BY VALUE OR BY NUMBER OF SHARES, WHICHEVER IS MORE
RESTRICTIVE) OF THE OUTSTANDING SHARES OF THE COMPANY; (2) NO PERSON MAY BENEFICIALLY OR
CONSTRUCTIVELY OWN SHARES THAT WOULD RESULT IN THE COMPANY BEING “CLOSELY HELD” UNDER SECTION
856(h) OF THE CODE OR OTHERWISE CAUSE THE COMPANY TO FAIL TO QUALIFY AS A REIT; AND (3) NO PERSON
MAY TRANSFER SHARES IF SUCH TRANSFER WOULD RESULT IN THE SHARES OF COMMON STOCK OF THE COMPANY
BEING OWNED BY FEWER THAN 100 PERSONS. AN “EXCEPTED HOLDER” MEANS A PERSON FOR WHOM AN EXCEPTED
HOLDER OWNERSHIP LIMIT HAS BEEN CREATED BY THE COMPANY’S CHARTER OR BY THE BOARD OF DIRECTORS. ANY
PERSON WHO BENEFICIALLY OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO BENEFICIALLY OR CONSTRUCTIVELY OWN
SHARES IN VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE COMPANY. IF ANY OF THE
RESTRICTIONS ON TRANSFER OR OWNERSHIP IS VIOLATED, THE SHARES REPRESENTED HEREBY WILL BE
AUTOMATICALLY TRANSFERRED TO THE TRUSTEE OF A CHARITABLE TRUST FOR THE BENEFIT OF ONE OR MORE
CHARITABLE BENEFICIARIES. IN ADDITION, THE COMPANY MAY REDEEM SHARES UPON THE TERMS AND CONDITIONS
SPECIFIED BY THE BOARD OF DIRECTORS IN ITS SOLE DISCRETION IF THE BOARD OF DIRECTORS DETERMINES
THAT OWNERSHIP OR A TRANSFER OR OTHER EVENT MAY VIOLATE THE RESTRICTIONS DESCRIBED ABOVE.
FURTHERMORE, UPON THE OCCURRENCE OF CERTAIN EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE
RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL TERMS IN THIS LEGEND THAT ARE DEFINED IN
THE CHARTER OF THE COMPANY SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THE CHARTER OF THE COMPANY,
AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON
TRANSFER AND OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF SHARES ON REQUEST AND WITHOUT CHARGE.
REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL OFFICE.

          D. Each Limited Partner covenants and agrees with the General Partner that all Tendered Units
shall be delivered to the General Partner free and clear of all liens, claims and

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encumbrances whatsoever and should any such liens, claims and/or encumbrances exist or arise
with respect to such Tendered Units, the General Partner shall be under no obligation to acquire
the same. Each Limited Partner further agrees that, in the event any state or local property
transfer tax is payable as a result of the transfer of its Tendered Units to the General Partner
(or its designee), such Limited Partner shall assume and pay such transfer tax.

          E. Notwithstanding the provisions of Section 8.6.A, 8.6.B, 8.6.C or
any other provision of this Agreement, a Limited Partner (i) shall not be entitled to effect a
Redemption for cash or an exchange for REIT Shares to the extent the ownership or right to acquire
REIT Shares pursuant to such exchange by such Partner on the Specified Redemption Date could cause
such Partner or any other Person to violate the restrictions on ownership and transfer of REIT
Shares set forth in the Charter and (ii) shall have no rights under this Agreement to acquire REIT
Shares which would otherwise be prohibited under the Charter. To the extent any attempted
Redemption or exchange for REIT Shares would be in violation of this Section 8.6.E, it
shall be null and void ab initio and such Limited Partner shall not acquire any rights or economic
interest in the cash otherwise payable upon such Redemption or the REIT Shares otherwise issuable
upon such exchange.

          F. Notwithstanding anything herein to the contrary (but subject to Section 8.6.E),
with respect to any Redemption or exchange for REIT Shares pursuant to this Section 8.6:
(i) all OP Units acquired by the General Partner pursuant thereto shall automatically, and without
further action required, be converted into and deemed to be General Partner Interests comprised of
the same number and class of OP Units; (ii) without the consent of the General Partner, each
Limited Partner may effect a Redemption only one time in each fiscal quarter; (iii) without the
consent of the General Partner, each Limited Partner may not effect a Redemption for less than
1,000 OP Units or, if the Limited Partner holds less than 1,000 OP Units, all of the OP Units held
by such Limited Partner; (iv) without the consent of the General Partner, each Limited Partner may
not effect a Redemption during the period after the Partnership Record Date with respect to a
distribution and before the record date established by the General Partner for a distribution to
its members of some or all of its portion of such distribution; (v) the consummation of any
Redemption or exchange for REIT Shares shall be subject to the expiration or termination of the
applicable waiting period, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended; and (vi) each Tendering Partner shall continue to own all OP Units subject to any
Redemption or exchange for REIT Shares, and be treated as a Limited Partner with respect to such OP
Units for all purposes of this Agreement, until such OP Units are transferred to the General
Partner and paid for or exchanged on the Specified Redemption Date. Until a Specified Redemption
Date, the Tendering Partner shall have no rights as a stockholder of the Parent with respect to any
REIT Shares to be received in exchange for its Tendered Units.

          G. In the event that the Partnership issues additional Partnership Interests to any Additional
Limited Partner pursuant to Section 4.4, the General Partner shall make such revisions to
this Section 8.6 as it determines are necessary to reflect the issuance of such additional
Partnership Interests.

ARTICLE IX

BOOKS, RECORDS, ACCOUNTING AND REPORTS

     Section 9.1. Records and Accounting.

          A. The General Partner shall keep or cause to be kept at the principal office of the
Partnership those records and documents required to be maintained by the Act and other books and
records deemed by the General Partner to be appropriate with respect to the Partnership’s business,
including, without limitation, all books and records necessary to provide to the Limited Partners
any

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information, lists and copies of documents required to be provided pursuant to Sections
8.5 or 9.2 hereof. Any records maintained by or on behalf of the Partnership in the
regular course of its business may be kept on, or be in the form for, magnetic tape, photographs,
micrographics or any other information storage device, provided that the records so
maintained are convertible into clearly legible written form within a reasonable period of time.
The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an
accrual basis in accordance with generally accepted accounting principles.

          B. The books of the Partnership shall be maintained, for financial and tax reporting purposes,
on an accrual basis in accordance with generally accepted accounting principles, or on such other
basis as the General Partner determines to be necessary or appropriate. To the extent permitted by
sound accounting practices and principles, the Partnership and the General Partner may operate with
integrated or consolidated accounting records, operations and principles.

     Section 9.2. Reports.

          A. As soon as practicable, but in no event later than the date on which the Parent mails its
annual report to its stockholders, the General Partner shall cause to be mailed to each Limited
Partner an annual report, as of the close of the most recently ended Fiscal Year, containing
financial statements of the Partnership, or of the Parent if such statements are prepared solely on
a consolidated basis with the Partnership, for such Partnership Year, presented in accordance with
generally accepted accounting principles, such statements to be audited by a nationally recognized
firm of independent public accountants selected by the Parent.

          B. If and to the extent that the Parent mails quarterly reports to its stockholders, as soon
as practicable, but in no event later than the date on 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 such fiscal quarter, of the Partnership, or of the Parent if such
statements are prepared solely on a consolidated basis with the Partnership, and such other
information as may be required by applicable law or regulations, or as the Parent determines to be
appropriate.

ARTICLE X

TAX MATTERS

     Section 10.1. Preparation of Tax Returns. The General Partner shall arrange for the
preparation and timely filing of all returns with respect to Partnership income, gains, deductions,
losses and other items required of the Partnership for federal and state income tax purposes and
shall use all reasonable effort to furnish, within 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. The Limited Partners shall promptly provide the General Partner with such information
relating to the Contributed Properties, including tax basis and other relevant information, as may
be reasonably requested by the General Partner from time to time.

     Section 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, including, but not limited to, the election under Code Section 754 and the
election to use the “recurring item” method of accounting provided under Code Section 461(h) with
respect to property taxes imposed on the Partnership’s Properties. The General Partner shall have
the right to seek to revoke any such election (including, without limitation, any election under
Code Sections 461(h) and 754) upon the General Partner’s determination in its sole and absolute
discretion that such revocation is in the best interests of the Partners.

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     Section 10.3. Tax Matters Partner.

          A. The General Partner shall be the “tax matters partner” of the Partnership for federal
income tax purposes. 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 in addition to
any reimbursement pursuant to Section 7.4 hereof. 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.

          B. The tax matters partner is authorized, but not required:

          (i) to enter into any settlement with the IRS 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 (i) who (within the time prescribed pursuant to the Code and Regulations) files a
statement with the IRS providing that the tax matters partner shall not have the authority
to enter into a settlement agreement on behalf of such Partner or (ii) who is a “notice
partner” (as defined in Code Section 6231) or a member of a “notice group” (as defined in
Code Section 6223(b)(2));

          (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 United
States Tax Court or the United States Claims Court, or the filing of a complaint for refund
with the District Court of the United States for the district in which the Partnership’s
principal place of business is located;

          (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 IRS at any time and,
if any part of such request is not allowed by the IRS, to file an appropriate pleading
(petition or complaint) for judicial review with respect to such request;

          (v) to enter into an agreement with the IRS to extend the period for assessing any tax
that is attributable to any item required to be taken into account by a Partner for tax
purposes, or an item affected by such item; and

          (vi) to take any other action on behalf of the Partners 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 7.7 hereof shall be fully applicable to the tax
matters partner in its capacity as such.

     Section 10.4. Withholding. 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,

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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 Code Sections 1441, 1442, 1445 or 1446. 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 15 days after notice
from the General Partner that such payment must be made unless (i) the Partnership withholds such
payment from a distribution that 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 that would, but for such payment, be distributed to the
Limited Partner. 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 10.4. In the event that a Limited Partner fails to pay any amounts owed to
the Partnership pursuant to this Section 10.4 when due, 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 (including, without limitation, the right to receive
distributions). Any amounts payable by a Limited Partner hereunder shall bear interest at the base
rate on corporate loans at large United States money center commercial banks, as published from
time to time in The Wall Street Journal, plus four percentage points (but not higher than
the maximum lawful rate) from the date such amount is due (i.e., 15 days after demand) until such
amount is paid in full. 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.

     Section 10.5. Organizational Expenses. The Partnership shall elect to amortize
expenses, if any, incurred by it in organizing the Partnership ratably over a 180-month period as
provided in Code Section 709.

ARTICLE XI

TRANSFERS AND WITHDRAWALS

     Section 11.1. Transfer.

          A. No part of the interest of a Partner shall be subject to the claims of any creditor, to any
spouse for alimony or support, or to legal process, and may not be voluntarily or involuntarily
alienated or encumbered except as may be specifically provided for in this Agreement.

          B. No Partnership Interest shall be Transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article XI. Any Transfer or purported
Transfer of a Partnership Interest not made in accordance with this Article XI shall be
null and void ab initio unless consented to by the General Partner in its sole and absolute
discretion.

          C. Notwithstanding the other provisions of this Article XI (other than Section
11.6.D hereof), the Partnership Interests of the General Partner may be Transferred, at any
time or from time to time, to any Person that is, at the time of such Transfer, the Parent or any
successor thereto or a Qualified REIT Subsidiary. Any transferee of the entire General Partner
Interest pursuant to this Section 11.1.C shall automatically become, without further action
or Consent of any Limited Partners, the sole general partner of the Partnership, subject to all the
rights, privileges, duties and obligations under this Agreement and the Act relating to a general
partner. Upon any Transfer permitted by this Section 11.1.C, the transferor Partner shall
be relieved of all its obligations under this Agreement. The provisions of

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Section 11.2.B (other than the last sentence thereof), 11.3 and 11.4
hereof shall not apply to any Transfer permitted by this Section 11.1.C.

          D. No Transfer of any Partnership Interest may be made to a lender to the Partnership or any
Person who is related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender
to the Partnership whose loan constitutes a Nonrecourse Liability, without the consent of the
General Partner in its sole and absolute discretion; provided that as a condition to such
consent, the lender will be required to enter into an arrangement with the Partnership and the
General Partner to redeem or exchange for REIT Shares any Partnership Units in which a security
interest is held by such lender concurrently with such time as such lender would be deemed to be a
partner in the Partnership for purposes of allocating liabilities to such lender under Code Section
752.

     Section 11.2. Transfer of General Partner’s Partnership Interest.

          A. The General Partner may not Transfer any of its General Partner Interest or withdraw from
the Partnership except as provided in Sections 11.1.C, 11.2.B and 11.2.C
hereof.

          B. Except as set forth in Section 11.1.C above and Section 11.2.C below, the
General Partner shall not withdraw from the Partnership and shall not Transfer all or any portion
of its interest in the Partnership (whether by sale, disposition, statutory merger or
consolidation, liquidation or otherwise) without the Consent of a Majority in Interest of the
Outside Limited Partners, which Consent may be given or withheld in the sole and absolute
discretion of such Limited Partners. Upon any Transfer of such a Partnership Interest pursuant to
the Consent of a Majority in Interest of the Outside Limited Partners and otherwise in accordance
with the provisions of this Section 11.2.B, the transferee shall become a successor General
Partner for all purposes herein, and shall be vested with the powers and rights of the transferor
General Partner, and shall be liable for all obligations and responsible for all duties of the
General Partner, once such transferee has executed such instruments as may be necessary to
effectuate such admission and to confirm the agreement of such transferee to be bound by all the
terms and provisions of this Agreement with respect to the Partnership Interest so acquired. It is
a condition to any Transfer otherwise permitted hereunder that the transferee assumes, by operation
of law or express agreement, all of the obligations of the transferor General Partner under this
Agreement with respect to such Transferred Partnership Interest, and such Transfer shall relieve
the transferor General Partner of its obligations under this Agreement without the Consent of a
Majority in Interest of the Outside Limited Partners. In the event that the General Partner
withdraws from the Partnership, in violation of this Agreement or otherwise, or otherwise dissolves
or terminates, or upon the Incapacity of the General Partner, all of the remaining Partners may
elect to continue the Partnership business by selecting a successor General Partner in accordance
with the Act.

          C. Notwithstanding Section 11.2.B, the General Partner may, without the consent of the
Limited Partners, Transfer its Partnership Interest in connection with any merger or sale of all or
substantially all of the assets or shares of the Parent.

     Section 11.3. Transfer of Limited Partners’ Partnership Interests.

          A. No Limited Partner shall Transfer all or any portion of its Partnership Interest to any
transferee without the written consent of the General Partner, which consent may be withheld in its
sole and absolute discretion.

          B. Notwithstanding any other provision of this Article XI (other than Section
11.6.D hereof), the Partnership Interests of the Parent may be Transferred in whole or in part,
at any time and

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from time to time to any Person that is, at the time of such Transfer, the Parent or any
successor thereto or any Qualified REIT Subsidiary.

          C. Notwithstanding any other provision of this Article XI (other than Section 11.6.D
hereof), a Limited Partner may Transfer all or any portion of its Partnership Interest to any of
its Affiliates and such transferee shall be admitted as a Substituted Limited Partner, all without
obtaining the consent of the General Partner.

          D. Without limiting the generality of Section 11.3.A hereof, it is expressly
understood and agreed that the General Partner will not consent to any Transfer of all or any
portion of any Partnership Interest pursuant to Section 11.3.A above unless such Transfer
meets each of the following conditions:

          (i) Such Transfer is made only to a single Qualified Transferee; provided,
however, that, for such purposes, all Qualified Transferees that are Affiliates, or
that comprise investment accounts or funds managed by a single Qualified Transferee and its
Affiliates, shall be considered together to be a single Qualified Transferee.

          (ii) The transferee in such Transfer assumes by operation of law or express agreement
all of the obligations of the transferor Limited Partner under this Agreement with respect
to such Transferred Partnership Interest; provided, that no such Transfer (unless
made pursuant to a statutory merger or consolidation wherein all obligations and liabilities
of the transferor Partner are assumed by a successor corporation by operation of law) shall
relieve the transferor Partner of its obligations under this Agreement without the approval
of the General Partner, in its sole and absolute discretion. Notwithstanding the foregoing,
any transferee of any Transferred Partnership Interest shall be subject to any and all
ownership limitations contained in the Charter that may limit or restrict such transferee’s
ability to exercise its Redemption right, including, without limitation, the Ownership
Limit. Any transferee, whether or not admitted as a Substituted Limited Partner, shall take
subject to the obligations of the transferor hereunder. Unless admitted as a Substituted
Limited Partner, no transferee, whether by a voluntary Transfer, by operation of law or
otherwise, shall have any rights hereunder, other than the rights of an Assignee as provided
in Section 11.5 hereof.

          (iii) Such Transfer is effective as of the first day of a fiscal quarter of the
Partnership.

          E. If a Limited Partner is subject to Incapacity, the executor, administrator, trustee,
committee, guardian, conservator or receiver of such Limited Partner’s estate shall have all 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 its interest in the Partnership. The Incapacity of a
Limited Partner, in and of itself, shall not dissolve or terminate the Partnership.

          F. In connection with any proposed Transfer of a Limited Partner Interest, the General Partner
shall have the right to receive an opinion of counsel reasonably satisfactory to it to the effect
that the proposed Transfer may be effected without registration under the Securities Act and will
not otherwise violate any federal or state securities laws or regulations applicable to the
Partnership or the Partnership Interests Transferred.

          G. No Transfer by a Limited Partner of its Partnership Interests (including any Redemption,
any other acquisition of Partnership Units by the Partnership or the General Partner) may be

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made to or by any person if (i) in the opinion of legal counsel for the Partnership, it would
result in the Partnership being treated as an association taxable as a corporation or would result
in a termination of the Partnership under Code Section 708, (ii) in the opinion of legal counsel
for the Partnership, it would adversely affect the ability of the Parent to continue to qualify as
a REIT or would subject the Parent to any additional taxes under Code Section 857 or Code Section
4981, or (iii) such Transfer would be effectuated through an “established securities market” or a
“secondary market (or the substantial equivalent thereof)” within the meaning of Code Section 7704
(provided that this clause (iii) shall not be the basis for limiting or restricting in any manner
the exercise of a Redemption unless, and only to the extent 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).

     Section 11.4. Substituted Limited Partners.

          A. A transferee of the interest of a Limited Partner pursuant to a Transfer consented to by
the General Partner pursuant to Section 11.3.A may be admitted as a Substituted Limited
Partner only with the consent of the General Partner, which consent may be given or withheld by the
General Partner in its sole and absolute discretion. The failure or refusal by the General Partner
to permit a transferee of any such interests to become a Substituted Limited Partner shall not give
rise to any cause of action against the Partnership or the General Partner. Subject to the
foregoing, an Assignee shall not be admitted as a Substituted Limited Partner until and unless it
furnishes to the General Partner (i) evidence of acceptance, in form and substance satisfactory to
the General Partner, of all the terms, conditions and applicable obligations of this Agreement,
(ii) a counterpart signature page to this Agreement executed by such Assignee, and (iii) such other
documents and instruments as may be required or advisable, in the sole and absolute discretion of
the General Partner, to effect such Assignee’s admission as a Substituted Limited Partner.

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

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

     Section 11.5. Assignees. If the General Partner, in its sole and absolute discretion,
does not consent to the admission of any transferee of any Partnership Interest as a Substituted
Limited Partner in connection with a transfer permitted by the General Partner pursuant to
Section 11.3.A, such transferee shall be considered an Assignee for purposes of this
Agreement. An Assignee shall be entitled to all the rights of an assignee of a limited partnership
interest under the Act, including the right to receive distributions from the Partnership and the
share of Net Income, Net Losses and other items of income, gain, loss, deduction and credit of the
Partnership attributable to the Partnership Units assigned to such transferee and the rights to
Transfer the Partnership Units only in accordance with the provisions of this Article XI,
but shall not be deemed to be a holder of Partnership Units for any other purpose under this
Agreement, and shall not be entitled to request a Redemption or effect a Consent or vote or with
respect to such Partnership Units on any matter presented to the Limited Partners for approval
(such right to Consent or vote or effect a Redemption, to the extent provided in this Agreement or
under the Act, fully remaining with the transferor Limited Partner). In the event that any such
transferee desires to make a further assignment of any such Partnership Units, such transferee
shall be subject to all the provisions of this Article XI 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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     Section 11.6. General Provisions.

          A. No Limited Partner may withdraw from the Partnership other than as a result of a permitted
Transfer of all of such Limited Partner’s Partnership Units in accordance with this Article
XI, with respect to which the transferee becomes a Substituted Limited Partner, or pursuant to
a redemption (or acquisition by the General Partner) of all of its Partnership Units pursuant to a
Redemption under Section 8.6 hereof and/or pursuant to any Partnership Unit Designation.

          B. Any Limited Partner who shall Transfer all of its Partnership Units in a Transfer (i)
consented to by the General Partner pursuant to this Article XI where such transferee was
admitted as a Substituted Limited Partner, (ii) pursuant to the exercise of its rights to effect a
redemption of all of its Partnership Units pursuant to a Redemption under Section 8.6
hereof and/or pursuant to any Partnership Unit Designation, or (iii) to the General Partner,
whether or not pursuant to Section 8.6.B hereof, shall cease to be a Limited Partner.

          C. If any Partnership Unit is Transferred in compliance with the provisions of this
Article XI, or is redeemed by the Partnership, or acquired by the General Partner pursuant
to Section 8.6 hereof, on any day other than the first day of a Partnership Year, then Net
Income, Net Losses, each item thereof and all other items of income, gain, loss, deduction and
credit attributable to such Partnership Unit for such Partnership Year shall be allocated to the
transferor Partner or the Tendering Party, as the case may be, and, in the case of a Transfer or
assignment other than a Redemption, to the transferee Partner, by taking into account their varying
interests during the Partnership Year in accordance with Code Section 706(d), using the “interim
closing of the books” method or another permissible method selected by the General Partner. Solely
for purposes of making such allocations, each of such items for the calendar month in which a
Transfer occurs shall be allocated to the transferee Partner and none of such items for the
calendar month in which a Transfer or a Redemption occurs shall be allocated to the transferor
Partner or the Tendering Party, as the case may be, if such Transfer occurs on or before the 15th
day of the month, otherwise such items shall be allocated to the transferor. All distributions of
Available Cash attributable to such Partnership Unit with respect to which the Partnership Record
Date is before the date of such Transfer, assignment or Redemption shall be made to the transferor
Partner or the Tendering Party, as the case may be, and, in the case of a Transfer other than a
Redemption, all distributions of Available Cash thereafter attributable to such Partnership Unit
shall be made to the transferee Partner.

          D. In no event may any Transfer or assignment of a Partnership Interest by any Partner
(including any Redemption, any acquisition of Partnership Units by the General Partner or any other
acquisition of Partnership Units by the Partnership) be made (i) to any person or entity who lacks
the legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable
law; (iii) of any component portion of a Partnership Interest, such as the Capital Account, or
rights to distributions, separate and apart from all other components of a Partnership Interest;
(iv) in the event that such Transfer would cause the Parent to cease to comply with the REIT
Requirements; (v) if such Transfer would, in the opinion of counsel to the Partnership or the
General Partner, cause a termination of the Partnership for federal or state income tax purposes;
(vi) if such Transfer would, in the opinion of legal counsel to the Partnership, cause the
Partnership to cease to be classified as a partnership for federal income tax purposes; (vii) if
such Transfer would cause the Partnership to become, with respect to any employee benefit plan
subject to Title I of ERISA, a “party-in-interest” (as defined in ERISA Section 3(14)) or a
“disqualified person” (as defined in Code Section 4975(c)); (viii) without the consent of the
General Partner, to any benefit plan investor within the meaning of Department of Labor Regulations
Section 2510.3-101(f); (ix) if such Transfer would, in the opinion of legal counsel to the
Partnership or the General Partner, cause any portion of the assets of the Partnership to
constitute assets of any employee benefit plan pursuant to Department of Labor Regulations Section
2510.3-101; (x) if such Transfer

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requires the registration of such Partnership Interest pursuant to any applicable federal or
state securities laws; (xi) if such Transfer would, in the opinion of legal counsel to the
Partnership or the General Partner, adversely affect the ability of the Parent to continue to
qualify as a REIT or would subject the Parent to any additional taxes under Code Section 857 or
Code Section 4981; (xi) if such Transfer would be effectuated through an “established securities
market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Code
Section 7704 (provided that this clause (xi) shall not be the basis for limiting or restricting in
any manner the exercise of a Redemption unless, and only to the extent 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); (xii) if such
Transfer would cause the Partnership to have more than 100 partners (including as partners those
persons indirectly owning an interest in the Partnership through a partnership, limited liability
company, subchapter S corporation or grantor trust); (xiii) if such Transfer causes the Partnership
(as opposed to the Parent) to become a reporting company under the Exchange Act; or (xiv) if such
Transfer subjects the Partnership to regulation under the Investment Company Act of 1940, the
Investment Advisors Act of 1940 or ERISA, each as amended.

ARTICLE XII

ADMISSION OF PARTNERS

     Section 12.1. Admission of Successor General Partner. A successor to all of the
General Partner’s General Partner Interest pursuant to Section 11.2 hereof who is proposed
to be admitted as a successor General Partner shall be admitted to the Partnership as the General
Partner, effective immediately prior to such Transfer. Any such successor shall carry on the
business of the Partnership without dissolution. In each case, the admission shall be subject to
the successor General Partner executing and delivering to the Partnership an acceptance of all of
the terms and conditions of this Agreement and such other documents or instruments as may be
required to effect the admission.

     Section 12.2. Admission of Additional Limited Partners.

          A. After the date hereof, a Person (other than an existing 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 furnishing to the General Partner (i)
evidence of acceptance, in form and substance 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 2.5 hereof, (ii) a counterpart signature page to this Agreement executed
by such Person, and (iii) such other documents or instruments as may be required in the sole and
absolute discretion of the General Partner in order to effect such Person’s admission as an
Additional Limited Partner.

          B. 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.

          C. If any Additional Limited Partner is admitted to the Partnership on any day other than the
first day of a Partnership Year, then Net Income, Net Losses, each item thereof and all other items
of income, gain, loss, deduction and credit allocable among Partners and Assignees for such
Partnership Year shall be allocated pro rata among such Additional Limited Partner and all other
Partners and Assignees by taking into account their varying interests during the Partnership Year
in accordance with

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Code Section 706(d), using the “interim closing of the books” method or another permissible
method selected by the General Partner. 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 the Partners and Assignees including such Additional Limited Partner,
in accordance with the principles described in Section 11.6.C hereof. All distributions of
Available Cash with respect to which the Partnership Record Date is before the date of such
admission shall be made solely to Partners and Assignees other than the Additional Limited Partner,
and all distributions of Available Cash thereafter shall be made to all the Partners and Assignees
including such Additional Limited Partner.

     Section 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 2.5 hereof.

     Section 12.4. Limit on Number of Partners. Unless otherwise permitted by the General
Partner, no Person shall be admitted to the Partnership as an Additional Limited Partner if the
effect of such admission would be to cause the Partnership to have a number of Partners (including
as Partners for this purpose those Persons indirectly owning an interest in the Partnership through
another partnership, a limited liability company, a subchapter S corporation or a grantor trust)
that would cause the Partnership to become a reporting company under the Exchange Act.

ARTICLE XIII

DISSOLUTION, LIQUIDATION AND TERMINATION

     Section 13.1. Dissolution. The Partnership shall not be dissolved by the admission of
Additional Limited Partners or by the admission of a successor General Partner in accordance with
the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General
Partner shall continue the business of the Partnership without dissolution. However, the
Partnership shall dissolve, and its affairs shall be wound up, upon the first to occur of any of
the following (each a “Liquidating Event”):

          A. a final and non-appealable judgement is entered by a court of competent jurisdiction ruling
that the General Partner is bankrupt or insolvent, or a final and non-appealable order for relief
is entered by a court with appropriate jurisdiction against the General Partner, in each case under
any federal or state bankruptcy or insolvency laws as now or hereafter in effect, unless, prior to
the entry of such order or judgement, a Majority in Interest of the remaining Outside Limited
Partners agree in writing, in their sole and absolute discretion, to continue the business of the
Partnership and to the appointment, effective as of a date prior to the date of such order or
judgement, of a successor General Partner;

          B. an election to dissolve the Partnership made by the General Partner in its sole and
absolute discretion, with or without the Consent of a Majority in Interest of the Outside Limited
Partners; provided, however, that in the event the Parent has not completed the
initial public offering of its shares of common stock, any such election to dissolve made by the
General Partner prior to December 31, 2013 shall require the Consent of a Supermajority in Interest
of the Outside Limited Partners;

          C. entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of
the Act;

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          D. the occurrence of a Terminating Capital Transaction;

          E. the Redemption (or acquisition by the General Partner) of all Partnership Units other than
Partnership Units held by the General Partner and the Parent;

          F. the Incapacity or withdrawal of the General Partner, unless all of the remaining Partners
in their sole and absolute discretion agree in writing to continue the business of the Partnership
and to the appointment, effective as of a date prior to the date of such Incapacity, of a
substitute General Partner; or

          G. December 31, 2013, solely in the event the Parent has not completed the initial public
offering of its shares of common stock by such date.

     Section 13.2. Winding Up.

          A. Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the
purposes of winding up its affairs in an orderly manner, liquidating its assets and satisfying the
claims of its creditors and Partners. After the occurrence of a Liquidating Event, no Partner
shall take any action that is inconsistent with, or not necessary to or appropriate for, the
winding up of the Partnership’s business and affairs. The General Partner or, in the event that
there is no remaining General Partner or the General Partner has dissolved, become bankrupt within
the meaning of the Act or ceased to operate, any Person elected by a Majority in Interest of the
Outside Limited Partners (the General Partner or such other Person being referred to herein as the
“Liquidator”) shall be responsible for overseeing the winding up and dissolution of the
Partnership and shall take full account of the Partnership’s liabilities and property, and the
Partnership property shall be liquidated as promptly as is consistent with obtaining the fair value
thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner,
include limited liability company interests in the General Partner) shall be applied and
distributed in the following order:

          (i) First, to the satisfaction of all of the Partnership’s debts and liabilities to
creditors other than the Partners and their Assignees (whether by payment or the making of
reasonable provision for payment thereof);

          (ii) Second, to the satisfaction of all of the Partnership’s debts and liabilities to
the General Partner (whether by payment or the making of reasonable provision for payment
thereof), including, but not limited to, amounts due as reimbursements under Section
7.4 hereof;

          (iii) Third, to the satisfaction of all of the Partnership’s debts and liabilities to
the other Partners and any Assignees (whether by payment or the making of reasonable
provision for payment thereof); and

          (iv) The balance, if any, to the General Partner, the Limited Partners and any
Assignees in accordance with their Capital Account balances, after giving effect to all
contributions, distributions and allocations for all periods.

     The General Partner shall not receive any additional compensation for any services performed
pursuant to this Article XIII.

          B. Notwithstanding the provisions of Section 13.2.A hereof that require liquidation of
the assets of the Partnership, but subject to the order of priorities set forth therein, if prior
to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part
or all of the

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Partnership’s assets would be impractical or would cause undue loss to the Partners, the
Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of
any assets except those necessary to satisfy liabilities of the Partnership (including to those
Partners as creditors) and/or distribute to the Partners, in lieu of cash, as tenants in common and
in accordance with the provisions of Section 13.2.A hereof, undivided interests in such
Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions in
kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in
kind are in the best interest of the Partners, and shall be subject to such conditions relating to
the disposition and management of such properties as the Liquidator deems reasonable and equitable
and to any agreements governing the operation of such properties at such time. The Liquidator
shall determine the fair market value of any property distributed in kind using such reasonable
method of valuation as it may adopt.

     C. In the event that the Partnership is “liquidated” within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g), distributions shall be made pursuant to this Article XIII to the
Partners and Assignees that have positive Capital Accounts in compliance with Regulations Section
1.704-1(b)(2)(ii)(b)(2) to the extent of, and in proportion to, positive Capital Account balances.
If any Partner has a deficit balance in its Capital Account (after giving effect to all
contributions, distributions and allocations for all taxable years, including the year during which
such liquidation occurs) (a “Capital Account Deficit”), such Partner shall not be required
to make any contribution to the capital of the Partnership with respect to a Capital Account
Deficit, if any, of such Partner, and such Capital Account Deficit shall not be considered a debt
owed to the Partnership or any other person for any purpose whatsoever.

     D. Notwithstanding the foregoing, (i) if the General Partner has a Capital Account Deficit,
the General Partner shall contribute to the capital of the Partnership the amount necessary to
restore such Capital Account Deficit balance to zero; and (ii) the second sentence of Section
13.2.C shall not apply with respect to any other Partner to the extent, but only to the extent,
that such Partner previously has agreed in writing, with the consent of the General Partner, to
undertake an express obligation to restore all or any portion of a deficit that may exist in its
Capital Account upon a liquidation of the Partnership. No Partner shall have any right to agree to
restore any portion of any Capital Account Deficit without the express written consent of the
General Partner, in its sole and absolute discretion. Any contribution required of a Partner under
this Section 13.2.D shall be made on or before the later of (i) the end of the Partnership
Year in which the interest is liquidated or (ii) the ninetieth (90th) day following the date of
such liquidation.

     E. In the sole and absolute discretion of the General Partner or the Liquidator, a pro rata
portion of the distributions that would otherwise be made to the Partners pursuant to this
Article XIII may be:

          (i) distributed to a trust established for the benefit of the General Partner and the
Limited Partners for the purpose of liquidating Partnership assets, collecting amounts owed
to the Partnership, and paying any contingent or unforeseen liabilities or obligations of
the Partnership or of the General Partner arising out of or in connection with the
Partnership and/or Partnership activities. The assets of any such trust shall be
distributed to the General Partner and the Limited Partners, from time to time, in the
reasonable discretion of the General Partner or the Liquidator, in the same proportions and
amounts as would otherwise have been distributed to the General Partner and the 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

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distributed to the General Partner and Limited Partners in the manner and order of
priority set forth in Section 13.2.A hereof as soon as practicable.

     Section 13.3. Deemed Distribution and Recontribution. Notwithstanding any other
provision of this Article XIII, in the event that the Partnership is liquidated within the
meaning of Regulations Section 1.704-1(b)(2)(ii)(g), but no Liquidating Event has occurred, the
Partnership’s Property shall not be liquidated, the Partnership’s liabilities shall not be paid or
discharged and the Partnership’s affairs shall not be wound up. Instead, for federal income tax
purposes the Partnership shall be deemed to have contributed all of its assets and liabilities to a
new partnership in exchange for an interest in the new partnership; and, immediately thereafter,
distributed interests in the new partnership to the Partners in accordance with their respective
Capital Accounts in liquidation of the Partnership, and the new partnership is deemed to continue
the business of the Partnership. Nothing in this Section 13.3 shall be deemed to have
constituted any Assignee as a Substituted Limited Partner without compliance with the provisions of
Section 11.4 hereof.

     Section 13.4. Rights of Limited Partners. Except as otherwise provided in this
Agreement, (a) each Limited Partner shall look solely to the assets of the Partnership for the
return of its Capital Contribution, (b) no Limited Partner shall have the right or power to demand
or receive property other than cash from the Partnership, and (c) no Limited Partner (other than
any Limited Partner who holds Preferred Units, to the extent specifically set forth herein and in
the applicable Partnership Unit Designation) shall have priority over any other Limited Partner as
to the return of its Capital Contributions, distributions or allocations.

     Section 13.5. Notice of Dissolution. In the event that a Liquidating Event occurs or
an event occurs that would, but for an election or objection by one or more Partners pursuant to
Section 13.1 hereof, result in a dissolution of the Partnership, the General Partner shall,
within 30 days thereafter, provide written notice thereof to each of the Partners and, in the
General Partner’s sole and absolute discretion or as required by the Act, to all other parties with
whom the Partnership regularly conducts business (as determined in the sole and absolute discretion
of the General Partner), and the General Partner may, or, if required by the Act, shall, publish
notice thereof in a newspaper of general circulation in each place in which the Partnership
regularly conducts business (as determined in the sole and absolute discretion of the General
Partner).

     Section 13.6. Cancellation of Certificate of Limited Partnership. Upon the completion
of the liquidation of the Partnership cash and property as provided in Section 13.2 hereof,
the Partnership shall be terminated, a certificate of cancellation shall be filed with the State of
Delaware, all qualifications of the Partnership as a foreign limited partnership or association in
jurisdictions other than the State of Delaware shall be cancelled, and such other actions as may be
necessary to terminate the Partnership shall be taken.

     Section 13.7. Reasonable Time for Winding-Up. A reasonable time shall be allowed for
the orderly winding-up of the business and affairs of the 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 between the
Partners during the period of liquidation.

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ARTICLE XIV

PROCEDURES FOR ACTIONS AND CONSENTS

OF PARTNERS; AMENDMENTS; MEETINGS

     Section 14.1. Procedures for Actions and Consents of Partners. The actions requiring
consent or approval of Limited Partners pursuant to this Agreement, including Section 7.3
hereof, or otherwise pursuant to applicable law, are subject to the procedures set forth in this
Article XIV.

     Section 14.2. Amendments. Amendments to this Agreement requiring Consent of the
Limited Partners may be proposed by the General Partner. Following such proposal, the General
Partner shall submit any proposed amendment to the Limited Partners. The General Partner shall
seek the written consent of the Limited Partners on the proposed amendment or shall call a meeting
to vote thereon and to transact any other business that the General Partner may deem appropriate.
For purposes of obtaining a written consent, the General Partner may require a response within a
reasonable specified time, but not less than 10 days, and failure to respond in such time period
shall constitute a consent that is consistent with the General Partner’s recommendation with
respect to the proposal; provided, however, that an action shall become effective
at such time as requisite consents are received even if prior to such specified time.
Notwithstanding anything to the contrary in this Agreement, the General Partner shall have the
power, without the consent of the Limited Partners, to amend this Agreement as may be required to
reflect the admission, substitution, change in Capital Commitments or ownership of Partnership
Units, termination or withdrawal of Partners, or any other information with respect to the Partners
or the Partnership nor or hereafter addressed on Exhibit A, in accordance with this
Agreement (which may be effected through the replacement of Exhibit A with an amended
Exhibit A).

     Section 14.3. Meetings of the Partners.

          A. 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 a Majority in Interest of the Outside
Limited Partners. The call 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 days nor more than 30 days prior to
the date of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the
vote or Consent of Partners is permitted or required under this Agreement, such vote or Consent may
be given at a meeting of Partners or may be given in accordance with the procedure prescribed in
Section 14.3.B hereof.

          B. Any action required or permitted to be taken at a meeting of the Partners may be taken
without a meeting if a written consent setting forth the action so taken is signed by a majority of
the Percentage Interests of the Partners (or such other percentage as is expressly required by this
Agreement for the action in question). Such consent may be in one instrument or in several
instruments, and shall have the same force and effect as a vote of a majority of the Percentage
Interests of the Partners (or such other percentage as is expressly required by this Agreement).
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 so certified.

          C. Each Limited Partner may authorize any Person or Persons to act for it by proxy on all
matters in which a Limited Partner is entitled to participate, including waiving notice of any
meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited
Partner or its attorney-in-fact. No proxy shall be valid after the expiration of 11 months from
the date thereof unless otherwise provided in the proxy (or there is receipt of a proxy authorizing
a later date). Every proxy shall be revocable at the pleasure of the Limited Partner executing it,
such revocation to be effective upon the

- 61 -

 

Partnership’s receipt of written notice of such revocation from the Limited Partner executing
such proxy. The use of proxies will be governed in the same manner as in the case of corporations
organized under the General Corporation Law of Delaware (including Section 212 thereof).

     D. Each meeting of 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 in its sole and absolute discretion.
Without limitation, meetings of Partners may be conducted in the same manner as meetings of the
General Partner’s stockholders and may be held at the same time as, and as part of, the meetings of
the General Partner’s stockholders.

     E. On matters on which Limited Partners are entitled to vote, each Limited Partner holding OP
Units shall have a vote equal to the number of OP Units held.

     F. Except as otherwise expressly provided in this Agreement, the Consent of Holders of
Partnership Interests representing a majority of the Partnership Interests of the Limited Partners
shall control.

ARTICLE XV

GENERAL PROVISIONS

     Section 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 in person or when sent by first class United States
mail or by other means of written communication (including by telecopy, facsimile, or commercial
courier service) to the Partner or Assignee at the address set forth in Exhibit A or such
other address of which the Partner or Assignee shall notify the General Partner in writing.

     Section 15.2. Titles and Captions. All article or section titles or captions in this
Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way
define, limit, extend or describe the scope or intent of any provisions hereof. Except as
specifically provided otherwise, references to “Articles” or “Sections” are to
Articles and Sections of this Agreement.

     Section 15.3. Pronouns and Plurals. Whenever the context may require, any pronouns
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.

     Section 15.4. Further Action. The parties shall execute and deliver all documents,
provide all information and take or refrain from taking action as may be necessary or appropriate
to achieve the purposes of this Agreement.

     Section 15.5. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their heirs, executors, administrators, successors, legal
representatives and permitted assigns.

     Section 15.6. Waiver.

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

- 62 -

 

          B. The restrictions, conditions and other limitations on the rights and benefits of the
Limited Partners contained in this Agreement, and the duties, covenants and other requirements of
performance or notice by the Limited Partners, are for the benefit of the Partnership and, except
for an obligation to pay money to the Partnership, may be waived or relinquished by the General
Partner, in its sole and absolute discretion, on behalf of the Partnership in one or more instances
from time to time and at any time.

     Section 15.7. Counterparts. This Agreement may be executed in counterparts, all of
which together shall constitute one agreement binding on all the parties hereto, notwithstanding
that all such parties are not signatories to the original or the same counterpart. Each party
shall become bound by this Agreement immediately upon affixing its signature hereto.

     Section 15.8. 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 law. In the event of a conflict between any provision of this Agreement and any
non-mandatory provision of the Act, the provisions of this Agreement shall control and take
precedence.

     Section 15.9. Entire Agreement. This Agreement contains all of the understandings and
agreements between and among the Partners with respect to the subject matter of this Agreement and
the rights, interests and obligations of the Partners with respect to the Partnership.

     Section 15.10. Invalidity of Provisions. If any provision of this Agreement is or
becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall not be affected thereby.

     Section 15.11. Limitation to Preserve REIT Status. Notwithstanding anything else in
this Agreement, to the extent that the amount paid, credited, distributed or reimbursed by the
Partnership to the Parent or the General Partner or their managers, officers, directors, employees
or agents, whether as a reimbursement, fee, expense or indemnity (a “REIT Payment”), would
constitute gross income to the Parent for purposes of Code Section 856(c)(2) or Code Section
856(c)(3), then, notwithstanding any other provision of this Agreement, the amount of such REIT
Payments, as selected by the General Partner in its discretion from among items of potential
distribution, reimbursement, fees, expenses and indemnities, shall be reduced for any Partnership
Year so that the REIT Payments, as so reduced, for or with respect to the Parent or the General
Partner, shall not exceed the lesser of:

          (i) an amount equal to the excess, if any, of (a) 4.9% of the Parent’s total gross
income (but excluding the amount of any REIT Payments) for the Partnership Year that is
described in subsections (A) through (H) of Code Section 856(c)(2) over (b) the amount of
gross income (within the meaning of Code Section 856(c)(2)) derived by the Parent from
sources other than those described in subsections (A) through (H) of Code Section 856(c)(2)
(but not including the amount of any REIT Payments); or

          (ii) an amount equal to the excess, if any, of (a) 24% of the Parent’s total gross
income (but excluding the amount of any REIT Payments) for the Partnership Year that is
described in subsections (A) through (I) of Code Section 856(c)(3) over (b) the amount of
gross income (within the meaning of Code Section 856(c)(3)) derived by the Parent from
sources other than those described in subsections (A) through (I) of Code Section 856(c)(3)
(but not including the amount of any REIT Payments); provided, however, that
REIT Payments in excess of the amounts set forth in clauses (i) and (ii) above may be made
if the General Partner, as a condition precedent, obtains an opinion of tax counsel that the
receipt of such excess amounts shall not adversely affect the Parent’s ability to qualify as
a REIT. To the extent that REIT Payments may

- 63 -

 

not be payable in a Partnership Year as a consequence of the limitations set forth in
this Section 15.11, such REIT Payments shall carry over and shall be treated as
arising in the following Partnership Year. The purpose of the limitations contained in this
Section 15.11 is to prevent the Parent from failing to qualify as a REIT under the
Code by reason of the Parent’s share of items, including distributions, reimbursements,
fees, expenses or indemnities, receivable directly or indirectly from the Partnership, and
this Section 15.11 shall be interpreted and applied to effectuate such purpose.

     Section 15.12. No Partition. No Partner nor any successor-in-interest to a Partner
shall have the right while this Agreement remains in effect to have any property of the Partnership
partitioned, or to file a complaint or institute any proceeding at law or in equity to have such
property of the Partnership partitioned, and each Partner, on behalf of itself and its successors
and assigns hereby waives any such right. It is the intention of the Partners that the rights of
the parties hereto and their successors-in-interest to Partnership property, as among themselves,
shall be governed by the terms of this Agreement, and that the rights of the Partners and their
successors-in-interest shall be subject to the limitations and restrictions as set forth in this
Agreement.

     Section 15.13. No Third-Party Rights Created Hereby. The provisions of this Agreement
are solely for the purpose of defining the interests of the Partners, inter se; and no other
person, firm or entity (i.e., a party who is not a signatory hereto or a permitted successor to
such signatory hereto) shall have any right, title or interest by way of subrogation or otherwise,
in and to the rights powers, title and provisions of this Agreement. No creditor or other third
party having dealings with the Partnership (other than as expressly set forth herein with respect
to Indemnitees) shall have the right to enforce the right or obligation of any Partner to make
Capital Contributions or loans to the Partnership or to pursue any other right or remedy hereunder
or at law or in equity. None of the rights or obligations of the Partners herein set forth to make
Capital Contributions or loans to the Partnership shall be deemed an asset of the Partnership for
any purpose by any creditor or other third party, nor may any such rights or obligations be sold,
transferred or assigned by the Partnership or pledged or encumbered by the Partnership to secure
any debt or other obligation of the Partnership or any of the Partners.

     Section 15.14. No Rights as Members of General Partner or Stockholders of Parent.
Nothing contained in this Agreement shall be construed as conferring upon the Holders of
Partnership Units any rights whatsoever as members of the General Partner or stockholders of the
Parent, including without limitation any right to receive dividends or other distributions made to
members of the General Partner or stockholders of the Parent or to vote or to consent or receive
notice as stockholders in respect of any meeting of members for the election of managers of the
General Partner or of any meeting of the stockholders of the Parent for the election of managers or
any other matter.

     Section 15.15. Creditors. Other than as expressly set forth herein with respect to
Indemnitees, none of the provisions of this Agreement shall be for the benefit of, or shall be
enforceable by, any creditor of the Partnership.

[signature page follows]

- 64 -

 

     IN WITNESS WHEREOF, this Fourth Amended and Restated Agreement of Limited Partnership has been
executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

NYCC GP LLC,

a Maryland limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LIMITED PARTNERS:

PARENT:

NY CREDIT CORP.,

a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 65 -

 

	 	 	 	 	 
	 	NEW YORK LIFE INSURANCE COMPANY,

a New York mutual insurance company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 66 -

 

	 	 	 	 	 
	 	NY CREDIT OPERATING COMPANY LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 67 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	BRK MANAGEMENT LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

- 68 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	HCI REAL ESTATE FINANCE I GMBH & CO. KG

By: HCI Real Estate Finance I Verwaltungsgesellschaft mbH, its General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

- 69 -

 

As of [      ], 2007

Exhibit A

PARTNERS AND PARTNERSHIP UNITS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate OP Unit	 	Unfunded OP Unit	 	Number of OP Units	 	Aggregate Class B	 	Unfunded Class B	 	Number of Class B
	Name and Address of Partners	 	Capital Commitment	 	Capital Commitment	 	Owned	 	Capital Commitment	 	Capital Commitment	 	Units Owned
	General Partner:
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NYCC GP LLC,

a Maryland limited
liability company

c/o NY Credit Trust

230 Park Avenue, Suite 1160

New York, NY 10169

Attention: William V. Adamski

Facsimile No.: +1 347 448 5767
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Limited Partners:
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NY Credit Corp., a Maryland
corporation

230 Park Avenue, Suite 1160

New York, NY 10169

Attention: William V. Adamski

Facsimile No.: +1 347 448 5767
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New York Life Insurance Company,

a New York mutual insurance
company

51 Madison Avenue

New York, New York 10010

Attention: Real Estate Managing

Director, 9th Floor
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	With a copy to:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	51 Madison Avenue, Room 1104

New York, New York 10010

Attention: Richard Leber

Facsimile No.: +1 212 576 7078
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

A-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate OP Unit	 	Unfunded OP Unit	 	Number of OP Units	 	Aggregate Class B	 	Unfunded Class B	 	Number of Class B
	Name and Address of Partners	 	Capital Commitment	 	Capital Commitment	 	Owned	 	Capital Commitment	 	Capital Commitment	 	Units Owned
	NY Credit Operating
Company LLC, a

Delaware limited
liability company

c/o NY Credit

230 Park Avenue, Suite 1150

New York, NY 10169

Attention: William V. Adamski

Facsimile No.: +1 347 448 4099
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	With a copy to:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Onex Corporation,

an Ontario corporation

c/o Onex Real Estate Partners

153 East 53rd
Street, 55th Floor

New York, NY 10022

Attn: Michael Dana

Fax No.: +1 212 993 5799
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BRK Management LLC,

a Delaware limited liability
company

230 Park Avenue, Suite 1160

New York, NY 10169

Attention: William V. Adamski

Facsimile No.: +1 347 448 4099
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HCI Real Estate Finance I GmbH &
Co. 
KG, a German limited
partnership

c/o HCI Immobilien Consult GmbH

Bleichenbruecke 10

D-20354 Hamburg

Germany

Attn: Dr. Manfred Kupka

Facsimile: +49 40 8888 1335
	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[      ]	 	 	 	$[      ]	 	 	 	$[      ]	 	 	 	[     ]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS
	 	 	$[     ]	 	 	 	$[     ]	 	 	 	[      ]	 	 	 	$[     ]	 	 	 	$[     ]	 	 	 	[     ]	 

A-2

 

Exhibit B

NOTICE OF REDEMPTION

			
	To:   	 	NYCC GP LLC

a Maryland limited liability company

c/o NY Credit Corp.

230 Park Avenue, Suite 1160

New York, New York 10169

     The undersigned Limited Partner or Assignee hereby irrevocably tenders for Redemption
                    
OP Units in NY Credit Operating Partnership LP in accordance with the terms of the Fourth Amended
and Restated Agreement of Limited Partnership of NY Credit Operating Partnership LP, dated as of [     
], 2007 (the “Agreement”), and the Redemption rights referred to therein. The
undersigned Limited Partner or Assignee:

     (a) undertakes (i) to surrender such OP Units and any certificate therefor at the closing of
the Redemption and (ii) to furnish to the General Partner, prior to the Specified Redemption Date,
the documentation, instruments and information required under Section 8.6 of the Agreement;

     (b) directs that the certified check representing the Cash Amount, or the REIT Shares Amount,
as applicable, deliverable upon the closing of such Redemption be delivered to the address
specified below;

     (c) represents, warrants, certifies and agrees that:

     (i) the undersigned Limited Partner or Assignee is a Qualifying Party,

     (ii) the undersigned Limited Partner or Assignee has, and at the closing of the
Redemption will have, good, marketable and unencumbered title to such OP Units, free and
clear of the rights or interests of any other person or entity,

     (iii) the undersigned Limited Partner or Assignee has, and at the closing of the
Redemption will have, the full right, power and authority to tender and surrender such
Partnership Units as provided herein, and

     (iv) the undersigned Limited Partner or Assignee has obtained the consent or approval
of all persons and entities, if any, having the right to consent to or approve such tender
and surrender; and

     (d) acknowledges that he will continue to own such OP Units until and unless either (1) such
OP Units are acquired by the General Partner pursuant to Section 8.6.B of the Agreement or
(2) such redemption transaction closes.

B-1

 

     All capitalized terms used herein and not otherwise defined shall have the same meaning
ascribed to them respectively in the Agreement.

     Dated:                    

	 	 	 
	 

	 	Name of Limited Partner or Assignee:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Signature of Limited Partner or Assignee)
	 
	 	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(City)
                    (State)                    
(Zip Code)
	 
	 	 
	 

	 	Signature Guaranteed by:
	 
	 	 
	 

	 	 
	Issue Check Payable/REIT Shares to:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Please insert social security or
identifying number:
	 	 
	 

	 	 

B-2

 

Exhibit C

NOTICE OF ELECTION BY PARTNER TO CONVERT LTIP UNITS INTO OP UNITS

          The undersigned Holder of LTIP Units hereby irrevocably (i) elects to convert the number of
LTIP Units in NY Credit Operating Partnership LP, a Delaware limited partnership (the
“Partnership”) set forth below into OP Units in accordance with the terms of the Fourth Amended and
Restated Agreement of Limited Partnership of the Partnership, dated as of [            ],
2007 as amended from time to time; and (ii) directs that any cash in lieu of OP Units that may be
deliverable upon such conversion be delivered to the address specified below. The undersigned
hereby represents, warrants, and certifies that the undersigned (a) has title to such LTIP Units,
free and clear of the rights of interests of any other person or entity other than the Partnership;
(b) has the full right, power, and authority to cause the conversion of such LTIP Units as provided
herein; and (c) has obtained the consent or approval of all persons or entitles, if any, having the
right to consent or approve such conversion.

	 	 	 	 	 
	Name of Holder:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Please Print: Exact Name as Registered with Partnership)	 	 

	 	 	 	 	 
	Number of LTIP Units to be Converted:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Date of this Notice:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Signature of Holder: Sign Exact Name as Registered with Partnership)	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Street Address)	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(City)                               
(State)                              (Zip Code)	 	 

	 	 	 	 	 	 	 
	 

	 	Signature Guaranteed by:	 	 	 	 
	 

	 	 	 
	 	 	 

C-1

 

Exhibit D

NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSION OF LTIP UNITS INTO OP UNITS

     NY Credit Operating Partnership LP, a Delaware limited partnership (the “Partnership”)
hereby irrevocably elects to cause the number of LTIP Units held by the Holder of LTIP Units set
forth below to be converted into OP Units in accordance with the terms of the Fourth Amended and
Restated Agreement of Limited Partnership of the Partnership, as amended from time to time.

	 	 	 	 	 
	Name of Holder:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Please Print: Exact Name as Registered with Partnership)	 	 

	 	 	 	 	 
	Number of LTIP Units to be Converted:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Date of this Notice:EX-10.4

 

EXHIBIT
10.4

FORM OF AMENDED AND RESTATED INVESTMENT ADVISORY

MANAGEMENT AGREEMENT

     This AMENDED AND RESTATED INVESTMENT ADVISORY MANAGEMENT AGREEMENT (this “Agreement”)
is made this [ ] day of [ ], 2007, by and among NY CREDIT CORP., a Maryland corporation (the
“Company”), NYCC GP LLC, a Maryland limited liability company, NY CREDIT OPERATING
PARTNERSHIP LP, a Delaware limited partnership (the “Operating Partnership” and, together
with the Company and its current and future other subsidiaries, the “Companies”), and NY
CREDIT ADVISORS LLC, a Delaware limited liability company (the “Manager”).

     WHEREAS, NY Credit Trust, a Maryland real estate investment trust (the “Trust”), the Operating
Partnership and the Manager entered into the Investment Advisory Management Agreement, dated as of
November 10, 2006 (the “Existing Agreement”);

     WHEREAS, the Trust was merged into a subsidiary of the Company with such subsidiary surviving
the merger and the Company replaced the Trust as a party to the Existing Agreement;

     WHEREAS, the Company is a newly organized Maryland corporation that intends to elect to be
treated as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986,
as amended (the “Code”) beginning with its taxable year ending December 31, 2007;

     WHEREAS, the Company will conduct all of its operations and make substantially all of its
investments through the Operating Partnership and through subsidiaries of the Company and the
Operating Partnership;

     WHEREAS, the Company and the Operating Partnership desire to retain the Manager to furnish
investment advisory services to the Companies on the terms and conditions hereinafter set forth,
and the Manager wishes to be retained to provide such services; and

     WHEREAS, the parties hereto desire to enter into this Agreement to incorporate the amendments
previously agreed to in the First Amendment to the Existing Agreement, dated as of April 19, 2007;

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the parties hereby agree as follows:

     1. Appointment and Duties of the Manager.

          (a) The Company and the Operating Partnership hereby appoint the Manager to act as the
investment adviser to the Companies and to manage the investment and reinvestment of the assets of
the Companies, subject to the supervision of the Company’s board of directors (the “Board of
Directors”) and the Operating Partnership’s investment committee (the “Investment
Committee”), for the period and upon the terms herein set forth, in accordance with (x) the
investment objectives, policies and restrictions that are adopted by the Board of Directors, as
such objectives, policies and restrictions shall be amended or supplemented from time to time, (y)
all applicable foreign, U.S. federal, state and local laws, rules and regulations, and (z) the
Company’s charter and by-laws and the Operating Partnership’s agreement of limited partnership, in
each case, as amended from time to time, and the Manager hereby agrees to use its commercially
reasonable efforts to perform each of the duties set forth herein. Without limiting the

 

 

generality of the foregoing, the Manager shall, during the term and subject to the provisions
of this Agreement, (i) serve as the Companies’ consultant with respect to the periodic review of
the investment criteria and parameters for the Companies’ investments, borrowings and operations
for the approval of the Board of Directors (provided that the Company will not approve investments
recommended by the Manager without the separate approval of the Investment Committee); (ii)
investigate, analyze and select possible investment opportunities; (iii) conduct negotiations with
sellers and purchasers and their agents and representatives, investment bankers and owners of
privately and publicly held real estate companies, (iv) engage and supervise, on the Companies’
behalf and at the Companies’ expense, independent contractors that provide investment banking,
mortgage brokerage, securities brokerage and other financial services and such other services as
may be required relating to the Companies’ investments; (v) nominate certain members of the
Investment Committee for the approval of the Board of Directors in accordance with Section
2 below; (vi) negotiate on the Companies’ behalf for the sale, exchange or other disposition of
any of the Companies’ investments, including the purchase or sale of the Companies’ assets or
securities; (vii) coordinate and manage operations of any joint venture or co-investment interests
held by the Companies and conduct all matters with any joint venture or co-investment partners;
(viii) provide executive and administrative personnel, office space and office services required in
rendering services to the Companies; (ix) administer the Companies’ day-to-day operations and
perform and supervise the performance of such other administrative functions necessary to the
Companies’ management as may be agreed upon by the Manager and the Board of Directors, including
the collection of revenues and the payment of the Companies’ debts and obligations and maintenance
of appropriate computer services to perform such administrative functions; (x) communicate on the
Companies’ behalf with the holders of any of the Companies’ equity or debt securities as required
to satisfy the reporting and other requirements of any governmental bodies or agencies or trading
markets and to maintain effective relations with such holders; (xi) counsel the Companies in
connection with policy decisions to be made by the Board of Directors; (xii) evaluate and recommend
to the Investment Committee modifications to the hedging strategies in effect and engage in overall
hedging strategies and activities on the Companies’ behalf, consistent with the Company’s status as
a REIT and with the investment guidelines; (xiii) counsel the Companies regarding the maintenance
of the Company’s status as a REIT and monitor compliance with the various REIT qualification tests
and other rules set out in the Code and Treasury Regulations thereunder; (xiv) counsel the
Companies regarding the maintenance of the Company’s exemption from the Investment Company Act of
1940, as amended (the “Investment Company Act”) and monitor compliance with the
requirements for maintaining an exemption from the Investment Company Act; (xv) assist the
Companies in developing criteria for asset purchase commitments that are specifically tailored to
the Companies’ investment objectives and making available to the Companies the Manager’s knowledge
and experience with respect to mortgage loans, real estate, real estate-related securities, other
real estate-related assets and non-real estate-related assets; (xvi) represent and make
recommendations to the Companies in connection with the purchase and finance and commitment to
purchase and finance mortgage loans (including on a portfolio basis), real estate, real
estate-related securities, other real estate-related assets and non-real estate-related assets, and
the sale of and commitment to sell such assets; (xvii) monitor the operating performance of the
Companies’ investments, including asset management, and provide periodic reports with respect
thereto to the Investment Committee and the Board of Directors, including comparative information
with respect to such operating performance and budgeted or projected operating results; (xviii)
invest or reinvest on a non-discretionary basis any money of the Companies (including investing in
short-term investments pending investment in long-term asset investments, payment of fees, costs
and expenses, or payments of dividends or distributions to the Companies shareholders and
partners), and advise the Companies as to capital structure and capital raising; (xix) assist the
Companies in retaining qualified accountants and legal counsel, as applicable, to assist in
developing appropriate accounting procedures, compliance procedures and testing systems with
respect to financial reporting obligations and compliance with the REIT provisions of the Code and
to conduct quarterly compliance reviews with respect thereto; (xx) assist the Companies in
qualifying to do business in all applicable jurisdictions and to obtain and maintain all
appropriate licenses; (xxi) assist the

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Companies in complying with all regulatory requirements applicable to the Companies in respect
of their business activities, including preparing or causing to be prepared all financial
statements required under applicable regulations and contractual undertakings and all reports and
documents, if any, required under the Securities Exchange Act of 1934; (xxii) take all necessary
actions to enable the Companies to make required tax filings and reports, including soliciting
shareholders for required information to the extent provided by the REIT provisions of the Code;
(xxiii) handle and resolve all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Companies may be
involved or to which they may be subject arising out of the Companies’ day-to-day operations,
subject to such limitations or parameters as may be imposed from time to time by the Board of
Directors; (xxiv) use commercially reasonable efforts to cause expenses incurred by or on behalf of
the Companies to be reasonable or customary and within any budgeted parameters or expense
guidelines set by the Board of Directors from time to time; (xxv) perform such other services as
may be required from time to time for management and other activities relating to the Companies’
assets as the Board of Directors or the Investment Committee shall reasonably request or the
Manager shall deem appropriate under the particular circumstances; (xxvi) open and maintain all
bank accounts of the Companies, segregated from any accounts of the Manager, and monitor all of the
Companies’ banking matters; (xxvii) open and maintain all securities accounts, segregated from any
accounts of the Manager, with “qualified custodians,” as defined in rules promulgated under the
Investment Advisers Act of 1940; (xxviii) use commercially reasonable efforts to cause the
Companies to comply with all applicable laws; and (xxix) perform such other services as may be
required from time to time for management and other activities relating to the assets of the
Companies as the Board of Directors shall reasonably request or the Manager or shall deem
appropriate under particular circumstances. Subject to the provisions of this Agreement, the
Manager shall have the power and authority on behalf of the Companies to effectuate investment
decisions for the Companies including the execution and delivery of all documents relating to the
Companies’ investments and the placing of orders for other purchase or sale transactions on behalf
of the Companies. In the event that the Companies determine to acquire debt financing, the Manager
will arrange for such financing on the Companies’ behalf, subject to the oversight and approval of
the Board of Directors. If it is necessary for the Manager to make investments on behalf of the
Companies through a special purpose vehicle, the Manager shall have authority to create or arrange
for the creation of such special purpose vehicle and to make such investments through such special
purpose vehicle in accordance with all applicable foreign, U.S. federal, state and local laws,
rules and regulations.

          (b) The Manager may enter into agreements with other parties, including its affiliates, for
the purpose of engaging one or more parties for and on behalf, and at the sole cost and expense, of
the Companies to provide asset management, leasing, development and/or other services to the
Companies, where such agreement(s) contain terms which are then customary for agreements regarding
the provision of services to companies that have assets similar in type, quality and value to the
assets of the Companies; provided that such agreement shall be on terms that are then customary for
management of assets similar in type, quality and value to the assets of the Companies; and
provided further that any such agreements entered into with affiliates of the Manager shall be on
terms no more favorable to such affiliate than would be obtained from a third party on an
arm’s-length basis.

          (c) The Manager may retain, for and on behalf, and at the sole cost and expense, of the
Companies, such services of accountants, legal counsel, appraisers, insurers, brokers, transfer
agents, registrars, developers, investment banks, financial advisors, banks and other lenders and
others as the Manager deems necessary or advisable in connection with the management and operations
of the Companies. Notwithstanding anything contained herein to the contrary, the Manager shall
have the right to cause any such services to be rendered by its affiliates; provided that payment
for such services shall be no greater than those which would be payable to outside professionals or
consultants engaged to perform such services pursuant to agreements negotiated on an arm’s length
basis. The Companies shall pay or

3

 

reimburse the Manager or its affiliates performing such services for the cost thereof, as set
forth in Section 3(a).

          (d) The Manager shall for all purposes herein provided be deemed to be an independent
contractor and, except as expressly provided or authorized herein, shall have no authority to act
for or represent the Companies in any way or otherwise be deemed an agent of the Companies.

          (e) The Manager shall keep and preserve for the period of six years (or such longer period as
may be required by law) any books and records relevant to the provision of its investment advisory
services to the Companies and shall specifically maintain all books and records with respect to the
Companies’ portfolio transactions and shall render to the Board of Directors and the Investment
Committee such periodic and special reports as the Board of Directors or the Investment Committee
may reasonably request. The Manager agrees that all records that it maintains for the Companies
are the property of the Companies and will surrender promptly to the Companies any such records
upon the Companies’ request, provided that the Manager may retain a copy of such records. The
Manager shall keep confidential any non-public information obtained in connection with the services
rendered under this Agreement and shall not disclose any such information (or use such information
except in furtherance of its duties under this Agreement), except (i) with the prior written
consent of the Board of Directors; (ii) to legal counsel, accountants and other professional
advisors, so long as the Manager informs such persons of the confidential nature of such
information and directs them to treat such information confidentially in accordance with this
Section 1(d); (iii) as required by law or legal process to which the Manager is a party or
in connection with the Manager’s assertion in any judicial or non-judicial proceeding of any claim,
counterclaim or defense against the Companies; or (iv) information that has previously become
available through the actions of a person other than the Manager not resulting from the Manager’s
violation of this Section 1(d). The provisions of this Section 1(d) shall survive
the expiration or earlier termination of this Agreement.

     2. Investment Committee.

          (a) During the term of this Agreement, the General Partner agrees to cause the Operating
Partnership to maintain a five member Investment Committee consisting of two members nominated by
the Manager (the “Manager Appointees”), the Chief Executive Officer of the Company (the
“CEO”) and two members appointed by the Board of Directors (the “Board
Appointees”), which Board Appointees will be members of the Company’s senior management. No
person other than the Manager and the Board of Directors may nominate members for service on the
Investment Committee.

          (b) Each member of the Investment Committee will serve until the next succeeding anniversary
of the date of this Agreement and until his or her successor is duly nominated and approved, or his
or her earlier death, resignation, inability to serve or removal as provided in this Section
2. Within 15 days following each anniversary of the date of this Agreement or any date on
which a Manager Appointee is removed from the Investment Committee as provided in this Section
2, the Manager shall provide the Board of Directors with a written list of nominees for service
on the Investment Committee (the “Nominee Notice”).

          (c) Each Manager Appointee will be approved by the Board of Directors unless the Board of
Directors, in its reasonable discretion, delivers written notice to the Manager within ten days
following receipt by the Board of Directors of the Nominee Notice, of the rejection of any Manager
Appointee together with the basis for such rejection. If the Board of Directors fails to respond
within such ten-day period, each of the Manager Appointees nominated in the Nominee Notice will be
deemed approved by the Board of Directors. In the event that any Manager Appointee is rejected by
the Board of

4

 

Directors, the Manager will have the exclusive right and obligation to nominate a replacement
Manager Appointee to the Board of Directors for approval in accordance with Section 2(b)
and this Section 2(c).

          (d) The CEO may not be removed from the Investment Committee unless he or she ceases to be CEO
of the Company. Subject to the foregoing sentence, any member of the Investment Committee may be
removed at any time, with or without cause, by the Board of Directors, and any Manager Appointee
may be removed at any time, with or without cause, by the Manager.

          (i) Upon the removal of any Board Appointee, the Board of Directors shall appoint a
replacement Board Appointee.

          (ii) Upon the removal of any Manager Appointee by the Board of Directors, the Board of
Directors shall notify the Manager in writing identifying the Manager Appointee so removed.
Following the Manager’s receipt of such notice, the Manager shall nominate a replacement
Manager Appointee for approval by the Board of Directors in accordance with Sections
2(b) and (c).

          (iii) In the event the Manager elects to cause the removal of a Manager Appointee, the
Manager shall notify the Company and the Operating Partnership in writing, identifying the
Manager Appointee to be removed and nominating a replacement Manager Appointee for approval
by the Board of Directors in accordance with Sections 2(b) and (c).
Following the Company’s and the Operating Partnership’s receipt of such notice, the Company
shall remove or cause to be removed such Manager Appointee from the Investment Committee.

          (e) Subject to the following sentence, consummation of any sale, transfer, acquisition or
disposition (each, a “Transfer”) of assets by the Companies that is recommended by the
Manager will require the majority approval of all of the members of the Investment Committee. In
any case in which any Manager Appointee on the Investment Committee or any of his or her affiliates
has an economic interest in a Transfer (other than as a result of its economic interest in the
Company or the Operating Partnership and its or their operations or through its ownership interest
in the Manager), (i) such Manager Appointee will not be entitled to vote on such Transfer, but will
be permitted to attend any meetings of the Investment Committee at which such Transfer is discussed
and/or voted upon, and (ii) such Transfer will require the majority approval of the remaining
members of the Investment Committee.

     3. Companies’ Responsibilities and Expenses Payable by the Companies. The Companies
shall pay all of its expenses and shall reimburse the Manager or its affiliates for documented
expenses of the Manager and its affiliates incurred on their behalf (collectively, the
“Expenses”). Without limiting the generality of the foregoing, Expenses include all costs
and expenses which are expressly designated elsewhere in this Agreement as the Companies’, together
with the following:

          (a) all costs and expenses associated with the formation and capital raising activities of the
Companies, including, without limitation, the costs and expenses of any 144A transaction or private
placement by the Companies, the preparation of the Companies’ registration statements, any and all
costs and expenses of an initial public offering of any of the Companies, any subsequent offerings
and any filing fees and costs of being a public company, including, without limitation, filings
with the Securities and Exchange Commission (the “SEC”), the National Association of
Securities Dealers, Inc. and the New York Stock Exchange, Inc. (and any other exchange or
over-the-counter market), among other such entities;

          (b) all costs and expenses in connection with the acquisition, disposition, development,
protection, maintenance, financing, hedging, administration and ownership of the Companies’

5

 

investments, including, without limitation, costs and expenses incurred in contracting with
third parties, including affiliates of the Manager, to provide such services, such as legal fees,
accounting fees, consulting fees, trustee fees, appraisal fees, insurance premiums, commitment
fees, brokerage fees, guaranty fees, ad valorem taxes, costs of foreclosure, maintenance, repair
and improvement of property and premiums for insurance on property owned by the Companies;

          (c) costs and expensees of legal, tax, accounting, consulting, auditing, administrative,
marketing and other similar services rendered for the Companies by third-party providers retained
by the Manager or, if provided by the Manager’s affiliates, in amounts which are no greater than
those which would be payable to outside professionals or consultants engaged to perform such
services pursuant to agreements negotiated on an arm’s-length basis;

          (d) the compensation and expenses of the Company’s directors (excluding those directors who
are officers of the Manager) and the cost of liability insurance to indemnify the Company’s
directors and officers;

          (e) all costs and expenses of money borrowed by the Companies, including, without limitation,
principal, interest and the costs associated with the establishment and maintenance of any credit
facilities and other indebtedness of the Companies (including commitment fees, accounting fees,
legal fees, closing and other costs) or any securities offerings of the Companies;

          (f) expenses connected with communications to holders of securities of the Companies and other
bookkeeping and clerical work necessary in maintaining relations with holders of such securities
and in complying with the continuous reporting and other requirements of governmental bodies or
agencies, including, without limitation, all costs of preparing and filing required reports with
the SEC, the costs payable by the Companies to any transfer agent and registrar in connection with
the listing and/or trading of any of the Companies’ securities on any exchange, the fees payable by
the Companies to any such exchange in connection with its listing, costs of preparing, printing and
mailing the Company’s annual report to its shareholders and proxy materials with respect to any
meeting of the shareholders of the Company;

          (g) costs associated with any computer software or hardware, electronic equipment or purchased
information technology services from third party vendors that is used solely for the Companies and
for design and maintenance of the Companies’ web site;

          (h) expenses incurred by managers, officers, employees and agents of the Manager and its
affiliates for travel solely on the Companies’ behalf and other out-of-pocket expenses incurred by
managers, officers, employees and agents of the Manager and its affiliates in connection with the
purchase, financing, refinancing, sale or other disposition of an investment or establishment and
maintenance of any credit facilities and other indebtedness or any securities offerings of the
Companies; provided, that the Companies shall only be responsible for a proportionate share of such
expenses, as determined by the Manager in good faith, where such expenses were not incurred solely
for the benefit of the Companies ;

          (i) costs and expenses incurred with respect to market information systems and publications,
research publications and materials, and settlement, clearing and custodial fees and expenses
applicable solely to the Companies;

          (j) compensation and expenses of the Companies’ custodian and transfer agent, if any;

6

 

          (k) the costs of maintaining compliance with all federal, state and local rules and
regulations or any other regulatory agency applicable to the Companies;

          (l) all taxes and license fees, including interest and penalties thereon;

          (m) all insurance costs incurred in connection with the operation of the Companies’ business
except for the costs attributable to the insurance that the Manager elects to carry for itself and
its employees;

          (n) costs and expenses incurred in contracting with third parties, including affiliates of the
Manager, for the servicing and special servicing of assets of the Companies;

          (o) all other costs and expenses relating to the Companies’ business and investment
operations, including, without limitation, the costs and expenses of acquiring, owning, protecting,
maintaining, developing and disposing of investments, including appraisal, reporting, audit and
legal fees;

          (p) expenses relating to any office(s) or office facilities, including but not limited to
disaster backup recovery sites and facilities, maintained for the Companies or separate from the
office or offices of the Manager;

          (q) expenses connected with the payments of interest, dividends or distributions in cash or
any other form authorized or caused to be made by the Board of Directors to or on account of the
holders of securities of the Companies, including, without limitation, in connection with any
dividend reinvestment plan;

          (r) subject to Section 9, any judgment or settlement of pending or threatened
proceedings (whether civil, criminal or otherwise) against the Companies, or against any trustee,
director or officer of the Companies in his capacity as such for which the Companies are required
to indemnify such trustee, director or officer by any court or governmental agency, or settlement
of pending or threatened proceedings or by the organizational documents of the Companies;

          (s) rent, telephone, utilities, office furniture, equipment, and machinery and other office
and overhead expenses of the Manager and its affiliates required for the Companies’ operations;
provided, that the Companies shall only be responsible for a proportionate share of such expenses,
as determined by the Manager in good faith, where such expenses were not incurred solely for the
benefit of the Companies; provided that for the period from the date of this Agreement through the
one-year anniversary of this Agreement, Expenses related to this clause (s) shall not be reimbursed
in excess of $1.2 million;

          (t) all fees paid to and expenses of third-party advisors and independent contractors,
consultants, managers and other agents engaged by the Companies or by the Manager for the account
of the Companies and all employment expenses of the personnel employed by the Companies (excluding
any personnel which are also employed by the Manager), including, without limitation, the salaries,
wages, equity based compensation of such personnel, payroll taxes and the incremental cost for
administering employee benefit plans of the Manager which are used by such personnel;

          (u) all expenses of organizing, modifying or dissolving the Companies and costs preparatory to
entering into a business or activity, or of winding up or disposing of a business activity of the
Companies; and

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          (v) all other expenses actually incurred by the Manager and its affiliates which are
reasonably necessary for the performance by the Manager of its duties and functions under this
Agreement.

     4. Compensation of the Manager. The Company and the Operating Partnership jointly and
severally agree, and agree to cause the other Companies, to the extent applicable, to pay in cash,
and the Manager agrees to accept, as compensation for the services provided by the Manager
hereunder, the Base Management Fee and the Incentive Fee (each as defined below) as hereinafter set
forth. The Companies shall make any payments due hereunder to the Manager or to the Manager’s
designee as the Manager may otherwise direct. To the extent permitted by applicable law, the
Manager may elect, or the Companies may adopt a deferred compensation plan pursuant to which the
Manager may elect, to defer all or a portion of its fees hereunder for a specified period of time.
The payment of the Base Management Fee and the Incentive Fee may be allocated by the Company among
the Companies pursuant to methodology agreed to by the Manager and the Company from time to time.

          (a) During the term of this Agreement, the Company and/or the Operating Partnership shall, and
shall cause the other Companies to, to the extent applicable pay the Manager a management fee (the
“Base Management Fee”) based on Equity, paid quarterly in arrears in cash, as follows:

     (1) 0.4375% of Equity up to $600,000,000 of Equity;

     (2) in the event that Equity is greater than $600,000,000, the amount set forth
in Section 4(a)(1) above plus 0.3750% of Equity in excess of $600,000,000
and up to $1,200,000,000; and

     (3) in the event that Equity is greater than $1,200,000,000, the amounts set
forth in Sections 4(a)(1) and 4(a)(2) above plus 0.3125% of Equity
in excess of $1,200,000,000.

“Equity,” as of the end of each fiscal quarter, is defined as (computed in accordance with
accounting principles generally accepted in the United States (“GAAP”)) (1) the total
common and preferred equity of the Company and the Operating Partnership, on a combined basis,
excluding, as applicable (2) any unrealized gains or losses, or other items that do not affect
realized net income.

          (i) The Base Management Fee shall be payable quarterly in arrears in cash, and the
Manager shall calculate each payment and deliver such calculation to the Board of Directors,
within 15 days following the last day of each fiscal quarter. The Companies shall make each
payment of the Base Management Fee (each, a “Base Management Fee Payment”) to the
Manager within 20 days following the last day of the fiscal quarter with respect to which
such Base Management Fee Payment is payable.

          (ii) The Base Management Fee shall also be calculated for any partial fiscal quarter
for any party on a prorated basis.

          (b) During the term of this Agreement, the Company and/or the Operating Partnership shall, and
shall cause the other Companies to, to the extent applicable, pay the Manager an annual incentive
fee (the “Incentive Fee”) in an amount equal to the product of:

          (i) 25% of the dollar amount by which (a) the Operating Partnership’s Adjusted Earnings
(before giving effect to the payment of the Incentive Fee) per unit of limited partnership
interest in the Operating Partnership (each, an “OP Unit”) for such year (based on
the

8

 

weighted average number of OP Units outstanding for such year, including OP Units
issued to the Company corresponding to outstanding common shares of beneficial interest)
exceed (b) an amount equal to (A) the weighted average offering price (1) per common share
of beneficial interest in all offerings of common shares of beneficial interest and (2) per
OP Unit in all contributions to the Operating Partnership (other than contributions by the
Company of the proceeds raised in connection with any securities offering) multiplied by (B)
the greater of (1) 9.0% and (2) the ten-year U.S. treasury rate for such year plus 3.0%, up
to a maximum of 11.0%; multiplied by

          (ii) the weighted average number of OP Units outstanding during such year, including OP
Units issued to the Company corresponding to outstanding common shares of beneficial
interest.

“Adjusted Earnings” is defined as the Operating Partnership’s net income (computed in
accordance with GAAP) excluding unrealized gains (or losses), plus real estate depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint ventures.

          (c) Upon request by the Manager, the Company, the Operating Partnership and the Manager shall
cooperate and negotiate in good faith to grant the Manager a profits participation interest as a
member in the Operating Partnership and/or one or more other subsidiary partnerships or limited
liability companies through which the Company or the Operating Partnership shall own its assets and
grant the Manager a profits participation interest in such subsidiary in lieu of all or a portion
of the management fee income otherwise payable to the Manager under this Agreement.

     5. Compliance with Laws. The Manager agrees that its activities will at all times be
in compliance in all material respects with all applicable foreign and U.S. federal, state and
local laws governing its operations and investments.

     6. Excess Brokerage Commissions. The Manager is hereby authorized, to the fullest
extent now or hereafter permitted by law, to cause the Companies to pay a member of a national
securities exchange, broker or dealer an amount of commission for effecting a securities
transaction in excess of the amount of commission another member of such exchange, broker or dealer
would have charged for effecting that transaction, if the Manager determines in good faith, taking
into account such factors as price (including the applicable brokerage commission or dealer
spread), size of order, difficulty of execution, and operational facilities of the firm and the
firm’s risk and skill in positioning blocks of securities, that such amount of commission is
reasonable in relation to the value of the brokerage and/or research services provided by such
member, broker or dealer, viewed in terms of either that particular transaction or its overall
responsibilities with respect to the Companies’ portfolio, and constitutes the best net results for
the Companies.

9

 

     7. Exclusivity.

          (a) None of the Manager, BRK Management LLC (“BRK”) or any entity controlled by BRK
will sponsor any entity (other than the Company and the Companies) which is primarily engaged in
the business of originating, acquiring, structuring, selling and trading commercial real estate
loans and securities, including mortgage loans, subordinate interests in first mortgages, bridge
loans, mezzanine debt, preferred equity, net leased real estate and commercial mortgage-backed
securities. Subject to the preceding sentence of this Section 7(a) and to Section
7(b), nothing in this Agreement will limit or restrict the right of any person to engage in any
other business or to devote his or her time and attention in part to any other business, whether of
a similar or dissimilar nature, or to receive any fees or compensation in connection therewith.

          (b) If this Agreement is terminated for any reason, neither BRK nor any entity controlled by
BRK may act in the capacity of a manager (including acting as an investment manager) for the
Company or any of the Companies for a period of two years following such termination.

          (c) Subject to Section 1(b), so long as this Agreement or any extension, renewal or
amendment remains in effect, the Manager shall be the only external investment adviser for Company
and the Companies, and no person shall make or have authority to make investment decisions for the
Company or the Companies other than the Investment Committee and the Board of Directors or any
committee thereof.

     8. Dual Responsibilities. It is understood that trustees, officers, employees,
partners, shareholders, members and managers of any of the Companies are or may become interested
in the Manager and its affiliates, as trustees, officers, employees, partners, shareholders,
members, managers or otherwise, and that the Manager and trustees, officers, employees, partners,
shareholders, members and managers of the Manager and its affiliates are or may become similarly
interested in the Companies as trustees, officers, employees, partners, shareholders, members,
managers or otherwise. If any person who is an officer, employee, member or manager of the Manager
is or becomes a trustee, officer, employee, partner, shareholder, member or manager of any of the
Companies and acts as such in any business of the Companies, then such officer, employee, member
and/or manager of the Manager shall be deemed to be acting in such capacity solely for the
Companies, and not as an officer, employee, member or manager of the Manager or under the control
or direction of the Manager, even if paid by the Manager.

     9. Limitation of Liability of the Manager; Indemnification. The Manager (including
its past, present and future officers, employees, managers, members, the respective affiliates of
each such member, and any other person or entity affiliated with the Manager) shall not be liable
to the Companies for any action taken or omitted to be taken by the Manager in connection with the
performance of any of its duties or obligations under this Agreement or otherwise as an investment
adviser of the Companies, except for actions for which it is judicially determined that Manager
acted with willful misfeasance, bad faith, recklessness or gross negligence in the performance of
the Manager’s duties, and the Company and the Operating Partnership shall, and shall cause the
Companies to, jointly and severally indemnify, defend and protect the Manager (including its past,
present and future officers, employees, managers, members, the respective affiliates of each such
member, and any other person or entity affiliated with the Manager, each of whom shall be deemed a
third party beneficiary hereof) (collectively, the “Manager Indemnified Parties”) and hold
them harmless from and against all damages, liabilities, costs and expenses (including reasonable
attorneys’ fees and amounts reasonably paid in settlement) incurred by the Manager Indemnified
Parties in or by reason of any pending, threatened or completed action, suit, investigation or
other proceeding (including an action or suit by or in the right of the Company or its security
holders) arising out of or otherwise based upon the performance of any of the Manager’s duties or
obligations under this Agreement or otherwise as an investment adviser of the Companies or arising
out of or in

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connection with the offering of securities by any of the Companies, except with respect to any
particular Manager Indemnified Party, for actions for which it is judicially determined that such
Manager Indemnified Party caused the Manager to act with willful misfeasance, bad faith,
recklessness or gross negligence in the performance of the Manager’s duties. The Manager shall
indemnify, defend and protect the Companies (including their past, present and future trustees,
officers, employees, partners, shareholders, members, managers and any other person or entity
affiliated with the Companies) (the “Companies Indemnified Parties”) and hold them harmless
from and against all damages, liabilities, costs and expenses (including reasonable attorneys’ fees
and amounts reasonably paid in settlement) incurred by the Companies Indemnified Parties in or by
reason of a final adjudication of any pending, threatened or completed action, suit, investigation
or other proceeding in which it is judicially determined that Manager acted with willful
misfeasance, bad faith, recklessness or gross negligence in the performance of the Manager’s
duties, it being agreed hereunder that neither (i) a loss incurred by the Companies with respect to
any of its investments negotiated, acquired or handled by the Manager, nor (ii) the mere allocation
of a transaction to the Companies or to any other entity, which allocation is claimed to have been
made when a conflict of interest existed, shall be deemed in and of themselves (and absent a final
adjudication to the contrary) to be the willful misfeasance, bad faith, recklessness or gross
negligence in the performance of the Manager’s duties.

     10. Term and Termination of Agreement.

          (a) This Agreement shall become effective as of the first date above written and shall remain
in effect through June 30, 2009 (the “Initial Term”), and, subject to this Section
10(a) and Section 10(b) below, thereafter shall be renewed automatically for successive
annual periods (each, a “Renewal Term”) unless either (x) at least two-thirds of the
independent directors on the Board of Directors or (y) holders of a majority of the Company’s
outstanding common shares of beneficial interest, vote not to renew based in each case on (1)
unsatisfactory performance by the Manager that is materially detrimental to the Company or (2) a
determination that the compensation payable to the Manager hereunder is not fair; provided,
however, that neither the Company nor the Operating Partnership shall have the right to terminate
this Agreement under clause (2) above if the Manager agrees to continue to provide the services
under this Agreement for compensation that at least two-thirds of the independent directors on the
Board of Directors determines to be fair pursuant to the procedures set forth below. In the event
the Company and the Operating Partnership elect not to renew this Agreement at the expiration of
the Initial Term or any Renewal Term, the Company shall deliver to the Manager written notice (a
“Termination Notice”) of the Company’s and Operating Partnership’s intention not to renew
this Agreement based upon the terms set forth in this Section 10(a) not less than 180 days
prior to the expiration of the then existing term. Such Termination Notice will include the reason
for such termination (i.e., clause (1) or (2) above), how such determination was made
(i.e., clause (x) or (y) above) and the date on which the Manager shall cease to provide
services under this Agreement, which date will be the expiration date of the then existing term,
and this Agreement shall terminate on such date (the “Effective Termination Date”).
Notwithstanding the foregoing, in the event that such Termination Notice is given pursuant to
clause (2) above, the Manager shall have the right to renegotiate such compensation by delivering
to the Company, no fewer than 45 days prior to the Effective Termination Date, written notice (any
such notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate its
compensation under this Agreement. Thereupon, the independent directors on the Board of Directors
and the Manager shall negotiate in good faith the revised compensation payable to the Manager under
this Agreement. In the event that the Manager and at least two-thirds of the independent directors
on the Board of Directors agree to the terms of the revised compensation prior to the Effective
Termination Date, the Termination Notice shall be deemed of no force and effect and this Agreement
shall continue in full force and effect on the terms stated in this Agreement, except that the
compensation payable to the Manager under Section 4 shall be the revised compensation then
agreed upon. The Company, the Operating Partnership and the Manager agree to execute and deliver
an amendment to this Agreement setting forth such revised compensation within ten

11

 

days after reaching an agreement regarding the same. In the event that two-thirds of the
independent directors on the Board of Directors and the Manager are unable to agree to the terms of
the revised compensation prior to the Effective Termination Date, this Agreement shall terminate as
of the Effective Termination Date originally set forth in the Termination Notice. In recognition
of the level of initial effort required by the Manager to structure and acquire the Companies’
assets and the commitment of resources by the Manager, upon any non-renewal of this Agreement
pursuant to this Section 10(a), the Manager will be paid a termination fee equal to three
times the sum of the Base Management Fee and the Incentive Fee for the 12-month period preceding
the date of non-renewal, calculated as of the end of the most recently completed fiscal quarter
prior to the date of non-renewal (the “Termination Fee”). The obligation of the Companies
to pay the Termination Fee shall survive the termination of this Agreement.

          (b) The Company or the Operating Partnership may also terminate the management agreement, upon
30 days’ prior written notice from the Board of Directors for Cause. For purposes hereof,
“Cause” is defined as (x) a final determination by a court of competent jurisdiction that
(a) the Manager has materially breached any provision of this Agreement and such breach continues
for a period of 60 days after written notice thereof specifying such breach and requesting that the
same be remedied in such 60-day period, (b) the Manager has committed fraud, misappropriation of
funds, or embezzlement against the Companies, or (c) the Manager has acted with willful
misfeasance, bad faith, recklessness or gross negligence with respect to its duties under this
Agreement, or (y) (a) the commencement of any proceedings relating to the Manager’s bankruptcy or
insolvency or (b) the dissolution of the Manager. If the Manager is terminated for Cause as set
forth in this Section 10(b), such termination shall be without payment of the Termination
Fee. The Manager agrees that if any of the events specified above occur, it will give prompt
written notice thereof to the Board of Directors after the occurrence of such event.

          (c) This Agreement shall terminate at the option of the Manager, upon 30 days’ prior written
notice to the Company and the Operating Partnership, without payment of the Termination Fee, in the
event the Company or the Operating Partnership becomes regulated as an investment company under the
Investment Company Act, with such termination deemed to occur immediately prior to such event.

          (d) Other than as set forth in Section 10(c), this Agreement shall terminate at the
option of the Manager, upon 180 days’ prior written notice to the Company and the Operating
Partnership, without payment of the Termination Fee.

          (e) The provisions of Section 9 of this Agreement shall remain in full force and
effect, and the Manager shall remain entitled to the benefits thereof, notwithstanding any
termination of this Agreement. Further, notwithstanding the termination or expiration of this
Agreement as aforesaid, the Manager shall be entitled to any amounts owed under Section 4
through the date of termination or expiration and Section 9 shall continue in force and
effect and apply to the Manager and its representatives as and to the extent applicable.

     11. IPO True-Up. Immediately prior to the completion of the Company’s initial public
offering of its common shares of beneficial interest (the “IPO Completion Date”), the
Company will pay or cause to be paid or distributed (a) any accrued but unpaid Base Management Fee
to the Manager, (b) any accrued but unpaid Incentive Fee to the Manager, (c) Expenses to the
Manager, each in accordance with this Agreement, and (d) all remaining Adjusted Earnings in
accordance with the Partnership Agreement, in each case that were incurred or earned during the
period from the date of this Agreement through the IPO Completion Date.

     12. Notices. Any notice under this Agreement shall be given in writing, addressed and
delivered or mailed, postage prepaid, to the Company and the Operating Partnership at 230 Park
Avenue, Suite

12

 

1150, New York, New York 10169, Attention: Edward Santoro, or to the Manager at 230 Park
Avenue, Suite 1150, New York, New York 10169, Attention: Edward Santoro.

     13. Amendments. This Agreement may be amended by mutual consent of the parties
hereto.

     14. Assignments. Subject to Section 1(b) hereof, neither (A) the Company or
the Operating Partnership without the consent of the Manager, nor (B) the Manager, may assign their
respective rights and obligations hereunder under any circumstances.

     15. Entire Agreement. The Manager assumes no responsibility under this Agreement other
than to render the services called for hereunder. This Agreement contains the entire agreement of
the parties and supersedes all prior agreements, understandings and arrangements with respect to
the subject matter hereof.

     16. Governing Law. This Agreement shall be construed in accordance with the laws of
the State of New York.

     17. Severability. Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     18. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall constitute an original, but all of which shall constitute one document.

[The remainder of this page intentionally left blank]

13

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the
date written above.

	 	 	 	 	 
	 	NY CREDIT CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	NY CREDIT OPERATING PARTNERSHIP LP

By: NYCC GP LLC, its general partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	NY CREDIT ADVISORS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

14

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