Document:

Exhibit 10.13

 

SHARE SUBSCRIPTION AGREEMENT

 

This Share Subscription Agreement (this “Agreement”) is made and entered into as of June 28, 2016 by and between:

 

(1)                                 ZTO Express (Cayman) Inc., an exempted company limited by shares incorporated and existing under the laws of the Cayman Islands (the “Company”); and

 

(2)                                 Zto Es Holding Limited, a BVI business company incorporated and existing under the laws of the British Virgin Islands (the “Subscriber”).

 

The Subscriber on the one hand, and the Company on the other hand, are sometimes herein referred to each as a “Party,” and collectively as the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS, the Company wishes to issue, allot and sell to the Subscriber, and the Subscriber wishes to subscribe for and acquire, a certain number of Ordinary Shares (as defined below) upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the Parties hereto agree as follows:

 

ARTICLE I

 

ISSUANCE AND SUBSCRIPTION

 

Section 1.1            Subscription of Ordinary Shares. Upon the terms and subject to the conditions of this Agreement, the Company shall issue and allot to the Subscriber, and the Subscriber shall subscribe and pay for, 16,000,000 ordinary shares (the “Ordinary Shares”) of the Company, par value US$0.0001 each (the “Subscribed Shares”), at U.S. dollar equivalent of RMB80,000,000 (the “Purchase Price”), free and clear of all liens or encumbrances (except for restrictions arising under the Securities Act of 1933, as amended (the “Securities Act”) or created by virtue of this Agreement).

 

Section 1.2            Closing.

 

(a)        Closing. The closing (the “Closing”) of the issuance and subscription of the Subscribed Shares pursuant to Section 1.1 shall take place on the date hereof or on such date and at such place as the Company and the Subscriber may mutually agree. The date and time of the Closing are referred to herein as the “Closing Date.”

 

(b)        Payment and Delivery. At the Closing, (i) the Subscriber shall pay and deliver the Purchase Price to the Company in U.S. dollars by wire transfer, or by such other method mutually agreeable to the Company and the Subscriber, of immediately available funds to such bank account designated in writing by the Company; and upon receipt of the same (ii) the Subscriber shall execute and deliver the waiver in the form of Exhibit A

 

1

 

hereto as a deed (the “Waiver”) and (iii) the Company shall issue to the Subscriber the Subscribed Shares, enter in the register of members of the Company the name of the Subscriber as the holder of the Subscribed Shares, and, if requested by the Subscriber, deliver one or more duly executed share certificates in original form, registered in the name of the Subscriber, together with a certified true copy of the register of the members of the Company, evidencing the Subscribed Shares being issued and sold to the Subscriber.

 

(c)       Register of Members. The Subscriber agrees to take the Subscribed Shares subject to the memorandum of association and the articles of association of the Company and authorizes the Company to enter its name and address as set forth below in the register of members of the Company:

 

Name: Zto Es Holding Limited

 

Address: c/o Sertus Incorporations (BVI) Limited

 

Sertus Chambers, P.O. Box 905, Quastisky Building

 

Road Town, Tortola, British Virgin Islands

 

(e)        Restrictive Legend. Each certificate representing Subscribed Shares shall be endorsed with the following legend:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OF AMERICA. THIS SECURITY MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (2) AN EXEMPTION OR QUALIFICATION UNDER THE ACT AND OTHER APPLICABLE SECURITIES LAWS OR (3) DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT. ANY ATTEMPT TO TRANSFER, SELL, PLEDGE OR HYPOTHECATE THIS SECURITY IN VIOLATION OF THESE RESTRICTIONS SHALL BE VOID.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

Section 2.1            Representations and Warranties of the Company. The Company hereby represents and warrants to the Subscriber, as of the Closing Date, as follows:

 

(a)        Due Formation. The Company is a company duly incorporated as an exempted company with limited liability, validly existing and in good standing under the laws of the Cayman Islands. The Company has all requisite power and authority to carry on its business as it is currently being conducted.

 

2

 

(b)        Authority. The Company has full power and authority to enter into, execute and deliver this Agreement and each agreement, certificate, document and  instrument to be executed and delivered by the Company pursuant to this Agreement and to perform its obligations hereunder. The execution and delivery by the Company of this Agreement and any agreements, certificates, documents and instruments to be executed and delivered by the Company pursuant to this Agreement, and the performance by the Company of its obligations hereunder, have been duly authorized by all requisite actions on its part.

 

(c)        Valid Agreement. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by (i) the laws from time to time in effect relating to bankruptcy, insolvency, liquidation, possessory liens, rights of set off, reorganisation, amalgamation, merger, consolidation, moratorium or any other laws or legal procedures, whether of a similar nature or otherwise, generally affecting the rights of creditors as well as applicable international sanctions, (ii) statutory limitation of the time within which proceedings may be brought and (iii) laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(d)        Due Issuance of the Subscribed Shares. The Subscribed Shares have been duly authorized and when issued and allotted to and paid for by the Subscriber pursuant to this Agreement, will be validly issued, fully paid and non-assessable (which term means that no further sums are required to be paid by the holders thereof in connection with the issue thereof) and free and clear of any pledge, mortgage, security interest, encumbrance, lien, charge, assessment, right of first refusal, right of pre-emption, third party right or interest, claim or restriction of any kind or nature, except for restrictions arising under the Securities Act or created by virtue of this Agreement and upon delivery and entry into the register of members of the Company the name of the Subscriber as holder of the Subscribed Shares, the Subscriber will have good and valid title to the Subscribed Shares.

 

(e)        Noncontravention. Neither the execution and the delivery of this Agreement, nor the transactions contemplated hereby, violate any provision of the organizational documents of the Company or its subsidiaries or violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental entity or court to which the Company or its subsidiaries is subject.

 

Section 2.2            Representations and Warranties of the Subscriber. The Subscriber hereby represents and warrants to the Company, as of the Closing Date, as follows:

 

(a)        Due Formation. If the Subscriber is a company limited by shares with limited liability under the BVI Business Company Act (as amended), it is duly incorporated, validly existing and in good standing under the laws of the British Virgin Islands. The Subscriber has all requisite power and authority to carry on its business as it is currently being conducted.

 

(b)        Authority. The Subscriber has full power and authority to enter into, execute and deliver this Agreement and each agreement, certificate, document and instrument to be executed and delivered by the Subscriber pursuant to this Agreement and to perform its obligations hereunder. If the Subscriber is a partnership, corporation, limited 

 

3

 

liability company or other entity, the execution and delivery by the Subscriber of this Agreement and any agreements, certificates, documents and instruments to be executed and  delivered by the Subscriber pursuant to this Agreement, and the performance by the Subscriber of its obligations hereunder have been duly authorized by all requisite actions on its part.

 

(c)        Valid Agreement. This Agreement has been duly executed and delivered by the Subscriber and constitutes the legal, valid and binding obligations of the Subscriber, enforceable against the Subscriber in accordance with its terms, except as limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(d)        Noncontravention. Neither the execution and the delivery of this Agreement, nor the transactions contemplated hereby, violate, if the Subscriber is a partnership, corporation, limited liability company or other entity, any provision of the organizational documents of the Subscriber or violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental entity or court to which the Subscriber is subject.

 

ARTICLE III

 

OTHER AGREEMENTS

 

Section 3.1            Subscriber Waiver. The Subscriber shall promptly notify the Company of any transfer of the limited partnership interest of any of the limited partnerships which are shareholders of the Subscriber to any employee of the Company. Upon receipt of proof of such transfer satisfactory to the Company, the Subscriber shall have the right to amend the Waiver to reduce the number of Ordinary Shares subject to the Waiver by an amount equal to the product of the multiplication of (x) 16,000,000 × (y) the percentage of shares of the Subscriber held by the applicable limited partnership × (z) a fraction calculated by dividing the amount of limited partnership interest that is the subject of the transfer by that limited partnership’s total equity interest.

 

ARTICLE IV

 

INDEMNIFICATION

 

Section 4.1            Indemnification. Each of the Company and the Subscriber (an “Indemnifying Party”) shall indemnify and hold each other and their directors, officers, employees, advisors and agents (collectively, the “Indemnified Party”) harmless from and against any losses, claims, damages, fines, expenses and liabilities of any kind or nature whatsoever, including but not limited to any investigative, legal and other expenses incurred in connection with, and any amounts paid in settlement of, any pending or threatened legal action or proceeding, and any taxes or levies that may be payable by such person by reason of the indemnification of any indemnifiable loss hereunder (collectively, “Losses”) resulting from or arising out of: (i) the breach of any representation or warranty of such Indemnifying Party contained in this Agreement or in any schedule or exhibit hereto; or (ii) the violation or nonperformance, partial or total, of any covenant or agreement of such Indemnifying Party contained in this Agreement for reasons other than gross negligence or willful misconduct of

 

4

 

such Indemnified Party. In calculating the amount of any Losses of an Indemnified Party hereunder, there shall be subtracted the amount of any insurance proceeds and third-party payments received by the Indemnified Party with respect to such Losses, if any.

 

Section 4.2                                   Third Party Claims.

 

(a)                       If any third party shall notify any Indemnified Party in writing with respect to any matter involving a claim by such third party (a “Third Party Claim”) which such Indemnified Party believes would give rise to a claim for indemnification against the Indemnifying Party under this Article IV, then the Indemnified Party shall promptly (i) notify the Indemnifying Party thereof in writing within thirty (30) days of receipt of notice of such claim and (ii) transmit to the Indemnifying Party a written notice (“Claim Notice”) describing in reasonable detail the nature of the Third Party Claim, a copy of all papers served with respect to such claim (if any), and the basis of the Indemnified Party’s request for indemnification under this Agreement.

 

(b)                       Upon receipt of a Claim Notice with respect to a Third Party Claim, the Indemnifying Party shall have the right to assume the defense of any Third Party Claim by, within (30) days of receipt of the Claim Notice, notifying the Indemnified Party in writing that the Indemnifying Party elects to assume the defense of such Third Party Claim, and upon delivery of such notice by the Indemnifying Party, the Indemnifying Party shall have the right to fully control and settle the proceeding, provided, that any such settlement or compromise shall be permitted hereunder only with the written consent of the Indemnified Party.

 

(c)                        If requested by the Indemnifying Party, the Indemnified Party shall, at the sole cost and expense of the Indemnifying Party, cooperate with the Indemnifying Party and its counsel in contesting any Third Party Claim which the Indemnifying Party elects to contest, including the making of any related counterclaim against the person asserting the Third Party Claim or any cross complaint against any person. The Indemnified Party shall have the right to receive copies of all pleadings, notices and communications with respect to any Third Party Claim, other than any privileged communications between the Indemnifying Party and its counsel, and shall be entitled, at its sole cost and expense, to retain separate co-counsel and participate in, but not control, any defense or settlement of any Third Party Claim assumed by the Indemnifying Party pursuant to Section 4.2(b).

 

(d)                       In the event of a Third Party Claim for which the Indemnifying Party elects not to assume the defense or fails to make such an election within the 30 days of the Claim Notice, the Indemnified Party may, at its option, defend, settle, compromise or pay such action or claim at the expense of the Indemnifying Party; provided, that any such settlement or compromise shall be permitted hereunder only with the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld or delayed.

 

Section 4.3                                   Other Claims. In the event any Indemnified Party should have a claim against the Indemnifying Party hereunder which does not involve a Third Party Claim, the Indemnified Party shall promptly transmit to the Indemnifying Party a written notice (the “Indemnity Notice”) describing in reasonable detail the nature of the claim, the Indemnified Party’s best estimate of the amount of Losses attributable to such claim and the basis of the Indemnified Party’s request for indemnification under this Agreement. If the Indemnifying 

 

5

 

Party does not notify the Indemnified Party within thirty (30) days from its receipt of the  Indemnity Notice that the Indemnifying Party disputes such claim, the Indemnifying Party shall be deemed to have accepted and agreed with such claim.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1                                   Survival of the Representations and Warranties. All representations and warranties made by any party hereto shall survive for two years and shall terminate and be without further force or effect on the second anniversary of the date hereof, except as to (i) any claims thereunder which have been asserted in writing pursuant to Section 4.1 against the party making such representations and warranties on or prior to such second anniversary, and (ii) the Company’s representations contained in Section 2.1(a), (b), (c) and (d) hereof, and (iii) the Subscriber’s representations contained in Section 2.2(a) hereof, each of which shall survive indefinitely.

 

Section 5.2                                   Governing Law; Arbitration. This Agreement shall be governed and interpreted in accordance with the laws of the State of New York. Any dispute arising out of or relating to this Agreement, including any question regarding its existence, validity or termination (“Dispute”) shall be referred to and finally resolved by arbitration at the Hong Kong International Arbitration Centre in accordance with the Hong Kong International Arbitration Centre Administered Arbitration Rules then in force. There shall be three arbitrators. Each Party has the right to appoint one arbitrator and the third arbitrator shall be appointed by the Hong Kong International Arbitration Centre. The language to be used in the arbitration proceedings shall be English. The seat of arbitration shall be Hong Kong. Each of the Parties irrevocably waives any immunity to jurisdiction to which it may be entitled or become entitled (including without limitation sovereign immunity, immunity to pre-award attachment, post-award attachment or otherwise) in any arbitration proceedings and/or enforcement proceedings against it arising out of or based on this Agreement or the transactions contemplated hereby.

 

Section 5.3                                   Amendment. This Agreement shall not be amended, changed or modified, except by another agreement in writing executed by the parties hereto.

 

Section 5.4                                   Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the Subscriber, the Company, and their respective heirs, successors and permitted assigns.

 

Section 5.5                                   Assignment. Neither this Agreement nor any of the rights, duties or obligations hereunder may be assigned by the Company or the Subscriber without the express written consent of the other Party, except that the Subscriber may assign all or any part of its rights and obligations hereunder to any affiliate of the Subscriber without the consent of the Company, provided that no such assignment shall relieve the Subscriber of its obligations hereunder if such assignee does not perform such obligations. Any purported assignment in violation of the foregoing sentence shall be null and void.

 

Section 5.6                                   Third Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of the Parties and their respective successors or permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights, and 

 

6

 

this Agreement does not confer any such rights.

 

Section 5.7                                   Notices. All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be sufficiently given to or served on a Party if delivered or sent:

 

	
If to the Company,   to:
    	
 
    	
c/o ZTO Express   Co., Ltd.
    
	
 
    	
 
    	
Address: 
    	
No.1685, Huazhi Road, Qingpu District
    
	
 
    	
 
    	
 
    	
Shanghai 201708, China
    
	
 
    	
 
    	
Attention: Xu Feng
    
	
 
    	
 
    	
Fax: +86 21   59139333
    
	
 
    	
 
    	
Email:   xufeng@zto.com
    
	
 
    	
 
    	
 
    
	
If to the   Subscriber, to:
    	
 
    	
c/o Zto Es Holding   Limited.
    
	
 
    	
 
    	
Address: 
    	
No.1685, Huazhi Road, Qingpu District
    
	
 
    	
 
    	
 
    	
Shanghai 201708,   China
    
	
 
    	
 
    	
Attention: Xu Feng
    
	
 
    	
 
    	
Fax: +86 21   59139333
    
	
 
    	
 
    	
Email:   xufeng@zto.com
    

 

Any notice may be delivered by hand or sent by facsimile number with confirmation receipt followed by first-class mail posted within 24 hours, or by overnight courier. Without prejudice to the foregoing, any notice shall be deemed to have been received on the next business day in the place to which it is sent, if sent by fax, or three business days from the time of posting, if sent by overnight courier, at the time of delivery, if delivered by hand, or if delivered by e-mail, on the same business day, if a receipt of the e-mail is requested and received. Any party hereto may change its address for purposes of this Section 5.7 by giving the other Party written notice of the new address in the manner set forth above.

 

Section 5.8                                   Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties with respect to the matters covered hereby, and all prior agreements and understandings, oral or in writing, if any, between the Parties with respect to the matters covered hereby are merged and superseded by such agreements.

 

Section 5.9                                   Severability. If any provisions of this Agreement shall be adjudicated to be illegal, invalid or unenforceable in any action or proceeding whether in its entirety or in any portion, then such provision shall be deemed amended, if possible, or deleted, as the case may be, from the Agreement in order to render the remainder of the Agreement and any provision thereof both valid and enforceable, and all other provisions hereof shall be given effect separately therefrom and shall not be affected thereby.

 

Section 5.10                            Fees and Expenses. Except as otherwise provided in this Agreement, the Company and the Subscriber will bear their respective expenses incurred in connection with the negotiation, preparation and execution of this Agreement and the transactions contemplated hereby, including fees and expenses of attorneys, accountants, consultants and financial advisors.

 

Section 5.11                            Confidentiality. Each party hereto shall keep in confidence, and shall not use (except for the purposes of the transactions contemplated hereby) or disclose, any non-public information disclosed to it or its affiliates, representatives or agents in connection 

 

7

 

with this Agreement or the transactions contemplated hereby. Each party hereto shall ensure that its affiliates, representatives and agents keep in confidence, and do not use (except for  the purposes of the transactions contemplated hereby) or disclose, any such non-public information.

 

Section 5.12                            Headings. The headings of the various articles and sections of this Agreement are inserted merely for the purpose of convenience and do not expressly or by implication limit, define or extend the specific terms of the section so designated.

 

Section 5.13                            Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. Facsimile, e-mail or other electronic signatures shall have the same legal effect as original signatures.

 

Section 5.14                            No Waiver.  Except as specifically set forth herein, the rights and remedies of the parties to this Agreement are cumulative and not alternative. No failure or delay on the part of any party in exercising any right, power or remedy under this Agreement will operate as a waiver of such right, power or remedy, and no single or partial exercise of any such right, power or remedy will preclude any other or further exercise of such right, power or remedy or the exercise of any other right, power or remedy. To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of that party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement.

 

— REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK —

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

 

	
 
    	
For and on behalf   of
    
	
 
    	
ZTO EXPRESS   (CAYMAN) INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/LAI Meisong
    
	
 
    	
Name:
    	
LAI Meisong
    
	
 
    	
Title:
    	
Director and Chief Executive   Officer
    

 

[Signature Page to Share Subscription Agreement]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

 

	
 
    	
For and on behalf   of
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ZTO ES HOLDING   LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/LAI Meisong
    
	
 
    	
Name:
    	
LAI Meisong
    
	
 
    	
Title: 
    	
Director
    

 

[Signature Page to Share Subscription Agreement]EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT TO THE 

AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP OF 

CITY OFFICE REIT OPERATING PARTNERSHIP, L.P. 

September 30, 2016 
 THIS
FIRST AMENDMENT TO THE AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF CITY OFFICE REIT OPERATING PARTNERSHIP, L.P. (this “Amendment”), dated as of September 30, 2016, is entered into by CITY OFFICE REIT, INC., a Maryland
corporation, as general partner (the “General Partner”) of CITY OFFICE REIT OPERATING PARTNERSHIP, L.P., a Maryland limited partnership (the “Partnership”), for itself and on behalf of the limited partners of the Partnership.

 WHEREAS, the Amended and Restated Agreement of Limited Partnership of the Partnership was executed on April 21, 2014 (as now or hereafter
amended, restated, modified, supplemented or replaced, the “Partnership Agreement”); and 
 WHEREAS, Section 4.2.A of the
Partnership Agreement authorizes the General Partner to cause the Partnership to issue additional Partnership Units in one or more classes or series, with such designations, preferences, conversion or other rights, voting powers or rights,
restrictions, limitations as to distributions, qualifications or terms and conditions of redemption, and any such other terms and/or 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 the Limited Partners or any other Person, and set forth in a written document thereafter attached to and made an exhibit to the Partnership Agreement, which exhibit shall be an
amendment to the Partnership Agreement and shall be incorporated therein (each a “Partnership Unit Designation”); and 
 WHEREAS,
the General Partner has authorized the issuance and sale of up to 4,600,000 shares of its 6.625% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”) at a gross offering price of $25.00
per share of Series A Preferred Stock and, in connection therewith, the General Partner, pursuant to Section 4.3.E of the Partnership Agreement, is contributing the net proceeds of such issuance and sale to the Partnership in exchange for, and is
causing the Partnership to issue to the General Partner, the Series A Preferred Units (as hereinafter defined) which shall constitute Partnership Equivalent Units as contemplated by the Partnership Agreement; and 

WHEREAS, pursuant to the authority granted to the General Partner pursuant to Section 4.2.A and Article 14 of the Partnership Agreement, and
as authorized by the resolutions of the Board of Directors of the General Partner and the resolutions of the Pricing Committee of the Board of Directors of the General Partner dated as of September 22, 2016 and September 26, 2016, respectively, the
General Partner desires to amend the Partnership Agreement (i) to set 

 
forth the designations, rights, powers, preferences and duties and other terms of the Series A Preferred Units and (ii) to issue the Series A Preferred Units to the General Partner. 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the General
Partner hereby amends the Partnership Agreement as follows: 
 1. The Partnership Agreement is hereby amended by the addition of a new annex
thereto, entitled Annex A, in the form attached hereto, which sets forth the designations, allocations, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to distributions, qualifications or terms and
conditions of redemption, and any other special rights, powers and duties and other terms of the Series A Preferred Units and which shall constitute a Partnership Unit Designation as contemplated by the Partnership Agreement and shall be attached to
and made a part of, and shall be an exhibit to, the Partnership Agreement. 
 2. Pursuant to Section 4.2.A and Section 4.3.E of the
Partnership Agreement, effective as of the applicable issuance date of the Series A Preferred Stock by the General Partner, the Partnership will issue Series A Preferred Units to the General Partner in the amount shown on Schedule I hereto, which
Schedule I may be amended by the General Partner in its sole discretion at any time, but in no event shall the number of Series A Preferred Units issued pursuant to this Amendment exceed 4,600,000. The Series A Preferred Units have been created
and are being issued in conjunction with the General Partner’s issuance and sale of the Series A Preferred Stock, and as such, the Series A Preferred Units are intended to have designations, preferences and other rights and terms that are
substantially the same as those of the Series A Preferred Stock, all such that the economic interests of the Series A Preferred Units and the Series A Preferred Stock are substantially identical, and the provisions, terms and conditions of this
Amendment, including without limitation the attached Annex A, shall be interpreted in a fashion consistent with this intent. In return for the issuance to the General Partner of the Series A Preferred Units, the General Partner has contributed
to the Partnership the funds raised through its issuance and sale of the Series A Preferred Stock (the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that share issuance (i.e., the net
proceeds actually contributed, plus any underwriter’s discount or other expenses incurred, with any such discount or expense deemed to have been incurred by the General Partner on behalf of the Partnership)). 

3. The foregoing recitals are incorporated in and are made a part of this Amendment. 

4. Except as specifically defined herein, all capitalized terms shall have the definitions provided in the Partnership Agreement. This
Amendment has been authorized by the General Partner pursuant to Article 14 of the Partnership Agreement and does not require execution by the Limited Partners or any other Person. 

[Signature Page Follows] 

  
 2 

 IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first set forth above. 

 

			
	GENERAL PARTNER:
	
	 CITY OFFICE REIT, INC.
 a Maryland
corporation

		
	By:	 	 /s/ Anthony Maretic

	Name:	 	Anthony Maretic
	Title:	 	Chief Financial Officer

 [Signature page for Amendment re: Series A Preferred Units] 

  
 3 

 ANNEX A 

DESIGNATION OF THE SERIES A PREFERRED UNITS 

OF 
 CITY OFFICE REIT
OPERATING PARTNERSHIP, L.P. 
 1. Designation and Number. A series of Preferred Units (as defined below) of City Office REIT Operating
Partnership, L.P., a Maryland limited partnership (the “Partnership”), designated the “6.625% Series A Cumulative Redeemable Preferred Units” (the “Series A Preferred Units”), is hereby established. The number of
authorized Series A Preferred Units shall be 4,600,000. 
 2. Defined Terms. Capitalized terms used herein and not otherwise defined shall have the
meanings given to such terms in the Amended and Restated Agreement of Limited Partnership of City Office REIT Operating Partnership, L.P. (as now or hereafter amended, restated, modified, supplemented or replaced, the “Partnership
Agreement”). The following defined terms used herein shall have the meanings specified below: 
 “Articles Supplementary”
means the Articles Supplementary of the General Partner filed with the State Department of Assessments and Taxation of the State of Maryland on September 30, 2016, designating the terms, rights and preferences of the Series A Preferred Stock. 

“Base Liquidation Preference” shall have the meaning provided in Section 6(a). 

“Common Stock” shall have the meaning provided in the Charter. 

“Distribution Record Date” shall have the meaning provided in Section 5(a). 

“Junior Preferred Units” shall have the meaning provided in Section 4. 

“Liquidating Distributions” shall have the meaning provided in Section 6(a). 

“Parity Preferred Units” shall have the meaning provided in Section 4. 

“Partnership Agreement” shall have the meaning provided above. 

“Preferred Units” means all Partnership Units designated as preferred units by the General Partner from time to time in accordance
with Section 4.2.A of the Partnership Agreement. 
 “Senior Preferred Units” shall have the meaning provided in Section 4. 

“Series A Preferred Return” shall have the meaning provided in Section 5(a). 

“Series A Preferred Stock” shall have the meaning provided in the Charter. 

  
 4 

 “Series A Preferred Unit Distribution Payment Date” shall have the meaning provided in
Section 5(a). 
 “Series A Preferred Units” shall have the meaning provided in Section 1. 

3. Maturity. The Series A Preferred Units have no stated maturity and will not be subject to any sinking fund or mandatory redemption. 

4. Rank. The Series A Preferred Units will, with respect to distribution rights and rights upon liquidation, dissolution or winding up of the
Partnership, rank (a) senior to all classes or series of Partnership Common Units (“Common Units”) of the Partnership and any class or series of Preferred Units expressly designated as ranking junior to the Series A Preferred
Units as to distribution rights and rights upon liquidation, dissolution or winding up of the Partnership (collectively, the “Junior Preferred Units”); (b) on a parity with any class or series of Preferred Units issued by the Partnership
expressly designated as ranking on a parity with the Series A Preferred Units as to distribution rights and rights upon liquidation, dissolution or winding up of the Partnership (the “Parity Preferred Units”); and (c) junior to any
class or series of Preferred Units issued by the Partnership expressly designated as ranking senior to the Series A Preferred Units as to distribution rights and rights upon liquidation, dissolution or winding up of the Partnership (the “Senior
Preferred Units”). The term “Preferred Units” does not include convertible or exchangeable debt securities of the Partnership, including convertible or exchangeable debt securities which will rank senior to the Series A Preferred
Units prior to conversion or exchange. The Series A Preferred Units will also rank junior in right or payment to the Partnership’s existing and future indebtedness. 

5. Distributions. 
 a) Subject to the
preferential rights of holders of any class or series of Preferred Units of the Partnership expressly designated as ranking senior to the Series A Preferred Units as to distribution rights, the holders of Series A Preferred Units shall be entitled
to receive, when, as and if authorized by the General Partner and declared by the Partnership, out of assets of the Partnership legally available for payment of distributions, cumulative cash distributions at the rate of 6.625% per annum of the Base
Liquidation Preference (as defined below) per unit (equivalent to a fixed annual amount of $1.65625 per unit) (the “Series A Preferred Return”). Distributions on the Series A Preferred Units shall accrue and be cumulative from (but
excluding) the date of original issue of any Series A Preferred Units and shall be payable quarterly, in equal amounts, in arrears, on or about the 25th day of each January, April, July and October of each year (or, if not a business day, the next
succeeding business day, each a “Series A Preferred Unit Distribution Payment Date’’) for the period ending on such Series A Preferred Unit Distribution Payment Date, commencing on January 25, 2017. “Business day” shall
mean any day other than a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required to close. The amount of any distribution payable on the Series A Preferred Units for any partial distribution
period will be prorated and computed on the basis of twelve 30-day months and a 360-day year. Distributions will be payable in arrears to holders of record of the Series A Preferred Units as they appear on the records of the Partnership at the
close of business on the applicable record date, which shall be the such date designated by 

  
 5 

 
the General Partner of the Partnership for the payment of distributions that is not more than 90 nor less than ten days prior to such Series A Preferred Unit Distribution Payment Date (each, a
“Distribution Record Date”).
 b) No distributions on the Series A Preferred Units shall be authorized by the General Partner or
declared, paid or set apart for payment by the Partnership at such time as the terms and provisions of any agreement of the General Partner or the Partnership, including any agreement relating to the indebtedness of any of them, prohibits such
authorization, declaration, payment or setting apart for payment or provides that such authorization, declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such authorization, declaration,
payment or setting apart shall be restricted or prohibited by law. 
 c) Notwithstanding anything to the contrary contained herein,
distributions on the Series A Preferred Units will accrue whether or not the restrictions referred to in Section 5(b) exist, whether or not the Partnership has earnings, whether or not there are assets legally available for the payment of such
distributions and whether or not such distributions are authorized or declared.
 d) Except provided in Section 5(e) below, no distributions
shall be declared and paid or set apart for payment, and no other distribution of cash or other property may be declared and made, directly or indirectly, on or with respect to, any Common Units, Parity Preferred Units or Junior Preferred Units of
the Partnership (other than a distribution paid in units of, or options, warrants or rights to subscribed for or purchase units of, Common Units or Junior Preferred Units) for any period, nor shall units of any class or series of Common Units,
Parity Preferred Units or Junior Preferred Units be redeemed, purchased or otherwise acquired for any consideration, nor shall any assets be paid or made available for a sinking fund for the redemption of any such units by the Partnership, directly
or indirectly (except by conversion into or exchange for units of, or options, warrants or rights to purchase of subscribed for units of, Common Units or Junior Preferred Units, and except for purchases or exchanges pursuant to a purchase or
exchange offer made on the same terms to all holders of Series A Preferred Units and all holders of Parity Preferred Units), unless full cumulative distributions on the Series A Preferred Units for all past distribution periods shall have been or
contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment. 
 e) When
cumulative distributions are not paid in full (or a sum sufficient for such full payment is not so set apart) on the Series A Preferred Units and any Parity Preferred Units, all distributions declared on the Series A Preferred Units and any Parity
Preferred Units shall be declared pro rata so that the amount of distributions declared per Series A Preferred Unit and such Parity Preferred Units shall in all cases bear to each other the same ratio that accrued distributions per
Series A Preferred Unit and such Parity Preferred Units (which shall not include any accrual in respect of unpaid distributions on any Parity Preferred Units for prior distribution periods if such Parity Preferred Units do not have a cumulative
distribution) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on Series A Preferred Units which may be in arrears. 

  
 6 

 f) Holders of Series A Preferred Units shall not be entitled to any distribution, whether payable
in cash, property or units of the Partnership, in excess of full cumulative distributions on the Series A Preferred Units as provided above. Any distribution made on the Series A Preferred Units shall first be credited against the earliest
accrued but unpaid distributions due with respect to such units which remain payable. Accrued but unpaid distributions on Series A Preferred Units will accumulate as of the Series A Preferred Unit Distribution Payment Date on which they first
become payable or on the date of redemption, as the case may be. 
 g) For the avoidance of doubt, in determining whether a distribution
(other than upon voluntary or involuntary liquidation), redemption or other acquisition of the Partnership Units is permitted under Maryland law, no effect shall be given to the amounts that would be needed, if the Partnership were to be dissolved
at the time of the distribution, to satisfy the preferential rights upon distribution of holders of Partnership Units whose preferential rights are superior to those receiving the distribution. 

6. Liquidation Preference. 
 a) Upon any
voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Partnership, before any distribution or payment shall be made to the holders of any Common Units or Junior Preferred Units, the holders of the Series A Preferred
Units then outstanding shall be entitled to be paid, or have the Partnership declare and set apart for payment, out of the assets of the Partnership legally available for distribution to its Partners after payment or provision for payment of all
debts and other liabilities of the Partnership, a liquidation preference in cash of $25.00 per Series A Preferred Unit (the “Base Liquidation Preference”), plus an amount equal to any accrued and unpaid distributions (whether or not
declared) to, but not including, the date of payment or the date the liquidation preference is set apart for payment (the “Liquidating Distributions”). 

b) If upon any such voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the available assets of the Partnership
are insufficient to pay the full amount of the Liquidating Distributions on all outstanding Series A Preferred Units and the corresponding amounts payable on all outstanding Parity Preferred Units, then the holders of Series A Preferred Units and
Parity Preferred Units shall share ratably in any such distribution of assets in proportion to the full Liquidating Distributions to which they would otherwise be respectively entitled.

c) Upon any voluntary or involuntary liquidation, dissolution or winding up of the Partnership, after payment shall have been made in full to
the holders of the Series A Preferred Units and any Parity Preferred Units, any other series or class or classes of Junior Preferred Units shall be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the
Series A Preferred Units and any Parity Preferred Units shall not be entitled to share therein. 
 d) After payment of the full amount of the
Liquidating Distributions to which they are entitled, holders of Series A Preferred Units will have no right or claim to any of the 

  
 7 

 
remaining assets of the Partnership. 
 e) For the avoidance of doubt, the
consolidation, merger or conversion of the Partnership with or into another entity, the merger of another entity with or into the Partnership, a statutory unit exchange by the Partnership or the sale, lease, transfer or conveyance of all or
substantially all of the assets or business of the Partnership shall not be considered a liquidation, dissolution or winding up of the affairs of the Partnership. 

7. Optional Redemption. 
 a) The Series A
Preferred Units are not redeemable prior to October 4, 2021, except as otherwise provided in this Section 7. On and after October 4, 2021, the Partnership, at its option, upon not less than 30 nor more than 60 days’ written notice, may
redeem the Series A Preferred Units, in whole or from time to time in part, for cash, at a redemption price equal to $25.00 per Series A Preferred Unit, plus any accrued and unpaid distributions thereon (whether or not declared) to, but not
including, the date fixed for redemption (the “Redemption Date”). If fewer than all of the outstanding Series A Preferred Units are to be redeemed, the Series A Preferred Units to be redeemed may be selected pro rata (as
nearly as practicable without creating fractional units) or by lot. 
 b) Unless full cumulative distributions on all Series A Preferred
Units shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for all past distribution periods, (i) no Series A Preferred Units shall be redeemed unless all
outstanding Series A Preferred Units are simultaneously redeemed, and (ii) the Partnership shall not purchase or otherwise acquire directly or indirectly for any consideration, nor shall any monies be paid to or be made available for a sinking fund
for the redemption of, any Series A Preferred Units (except by conversion into or exchange for, or options, warrants or rights to purchase or subscribe for units of, Common Units or Junior Preferred Units of the Partnership); provided,
however, that the foregoing shall not prevent the redemption or purchase of Series A Preferred Units by the Partnership in connection with a redemption or purchase by the General Partner of Series A Preferred Stock pursuant to Article VII of the
Charter or otherwise in order to ensure that the General Partner remains qualified as a REIT for federal income tax purposes or pursuant to the terms of the Articles Supplementary, or the purchase or acquisition of Series A Preferred Units pursuant
to a purchase or exchange offer made on the same terms to holders of all outstanding Series A Preferred Units. 
 c) Immediately prior to any
redemption of Series A Preferred Units, the Partnership shall pay, in cash, any accrued and unpaid distributions on the Series A Preferred Units (whether or not declared) to, but not including, the Redemption Date, unless a Redemption Date
falls after a Distribution Record Date and prior to the corresponding Series A Preferred Unit Distribution Payment Date, in which case each holder of Series A Preferred Units at the close of business on such Distribution Record Date shall be
entitled to the distribution payable on such units on the corresponding Series A Preferred Unit Distribution Payment Date (including any accrued and unpaid distributions for prior distribution periods) notwithstanding the redemption of such units
before such Series A Preferred Unit Distribution Payment Date. Except as provided above, the Partnership will make no payment or allowance for unpaid distributions, whether or not in 

  
 8 

 
arrears, on Series A Preferred Units for which a notice of redemption has been given. 

d) Notice of redemption of the Series A Preferred Units shall be mailed by the Partnership to each holder of record of the Series A Preferred
Units to be redeemed by first class mail, postage prepaid, not less than 30 nor more than 60 days prior to the Redemption Date at such holder’s address as the same appears on the records of the Partnership. A failure to give such notice or
any defect therein or in the mailing thereof shall not affect the validity of the proceedings for the redemption of any Series A Preferred Units except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the
Redemption Date; (ii) the redemption price; (iii) the number of Series A Preferred Units to be redeemed; (iv) the place or places where the Series A Preferred Units are to be surrendered for payment of the redemption price; and (v) that
distributions on such Series A Preferred Units to be redeemed will cease to accrue on such Redemption Date. If less than all of the Series A Preferred Units held by any holder are to be redeemed, the notice mailed to such holder shall also
specify the number of units of Series A Preferred Units held by such holder to be so redeemed.
 e) Holders of Series A Preferred Units to be
redeemed shall surrender such Series A Preferred Units at the place or places designated in such notice and, upon surrender of the units, such Series A Preferred Units shall be redeemed by the Partnership at the redemption price plus any accrued and
unpaid distributions (whether or not declared) payable upon such redemption. If notice of redemption of any of the Series A Preferred Units has been given and if the assets necessary for such redemption have been set apart by the Partnership
for the benefit of the holders of any Series A Preferred Units so called for redemption, then from and after the redemption date distributions will cease to accrue on such Series A Preferred Units, such Series A Preferred Units shall no longer be
deemed outstanding and all rights of the holders of such Series A Preferred Units will terminate, except the right to receive the redemption price and any accrued and unpaid distributions (whether or not declared) to, but not including, the
redemption date; provided, however, if the redemption date falls after a Distribution Record Date and prior to the corresponding Series A Preferred Unit Distribution Payment Date, each holder of Series A Preferred Units so called for
redemption at the close of business on such Distribution Record Date shall be entitled to the distribution payable on such units on the corresponding Series A Preferred Unit Distribution Payment Date notwithstanding the redemption of such units
before such Series A Preferred Unit Distribution Payment Date.
 f) Notwithstanding anything to the contrary contained herein, the
Partnership may redeem one Series A Preferred Unit for each share of Series A Preferred Stock purchased in the open market, through tender or by private agreement by the General Partner. 

g) All Series A Preferred Units redeemed or otherwise acquired by the Partnership in any manner whatsoever shall be retired and reclassified as
authorized but unissued Preferred Units, without designation as to class or series, and may thereafter be reissued as any class or series of Preferred Units in accordance with the applicable provisions of the Partnership Agreement. 

h) Notwithstanding anything to the contrary contained herein, the Partnership may redeem Series A Preferred Units at any time in connection
with any redemption by the General 

  
 9 

 
Partner of the Series A Preferred Stock. 
 8. Voting Rights. Holders of the Series A Preferred
Units will not have any voting rights. 
 9. Conversion. The Series A Preferred Units are not convertible or exchangeable for any other property
or securities, except as provided herein. 
 a) In the event that a holder of Series A Preferred Stock exercises its right to convert the
Series A Preferred Stock into Common Stock in accordance with the terms of the Articles Supplementary, then, concurrently therewith, an equivalent number of Series A Preferred Units of the Partnership held by the General Partner shall be
automatically converted into a number of Common Units of the Partnership equal to the number of shares of Common Stock issued upon conversion of such Series A Preferred Stock; provided, however, that if a holder of Series A Preferred Stock
receives cash or other consideration in addition to or in lieu of Common Stock in connection with such conversion, then the General Partner, as the holder of the Series A Preferred Units, shall be entitled to receive cash or such other consideration
equal (in amount and form) to the cash or other consideration to be paid by the General Partner to such holder of the Series A Preferred Stock. Any such conversion will be effective at the same time the conversion of Series A Preferred Stock
into Common Stock is effective. 
 b) No fractional units will be issued in connection with the conversion of Series A Preferred Units into
Common Units. In lieu of fractional Common Units, the General Partner shall be entitled to receive a cash payment in respect of any fractional unit in an amount equal to the fractional interest multiplied by the closing price of a share of Common
Stock on the date the shares of Series A Preferred Stock are surrendered for conversion by a holder thereof. 
 10. Allocation of Net Income and Net
Loss. 
 Article 6, Sections 6.2.A and B of the Partnership Agreement are hereby deleted in their entirety and replaced by sections A and
B, below: 
 “A. Net Income. 

(i) First, 100% to the General Partner in an amount equal to the remainder, if any, of the cumulative Net Losses allocated to
the General Partner pursuant to clause (iv) in Section 6.2.B for all prior Partnership Years minus the cumulative Net Income allocated to the General Partner pursuant to this clause (i) for all prior Partnership Years; 

(ii) Second, 100% to the General Partner in an amount equal to the remainder, if any, of the cumulative Net Losses allocated to
the General Partner pursuant to clause (iii) in Section 6.2.B for all prior Partnership Years minus the cumulative Net Income allocated to the General Partner pursuant to this clause (ii) for all Prior Partnership Years; 

(iii) Third, 100% to each Holder in an amount equal to the remainder, if any, of the cumulative Net Losses allocated to each
such Holder pursuant to clause (ii) in 

  
 10 

 
Section 6.2.B for all prior Partnership Years minus the cumulative Net Income allocated to such Holder pursuant to this clause (ii) for all prior Partnership Years; 

(iv) Fourth, 100% to the General Partner in respect of its Series A Preferred Units, until it has been allocated Net Profit
equal to the excess of (x) the cumulative amount of distributions the General Partner has received (other than distributions of Base Liquidation Preference) for all Partnership Years or other applicable period or to the date of redemption, to the
extent such Series A Preferred Units are redeemed during such period, over (y) the cumulative Net Profit allocated to the General Partner, pursuant to this Section 6.2.A(iv) for all prior Partnership Years or other applicable periods; and 

(v) Fifth, 100% to the Holders of Partnership Common Units in accordance with their respective Percentage Interests in the
Partnership Common Units. 
 To the extent the allocations of Net Income set forth above in any paragraph of this Section
6.2.A are not sufficient to entirely satisfy the allocation set forth in such paragraph, such allocation shall be made in proportion to the total amount that would have been allocated pursuant to such paragraph without regard to such shortfall. 

B. Net Losses. 

(i) First, 100% to the Holders of Partnership Common Units in accordance with their respective Percentage Interests in the
Partnership Common Units (to the extent consistent with this clause (i)) until the Adjusted Capital Account balance (ignoring for this purpose any amounts a Holder is obligated to contribute to the capital of the Partnership or is deemed obligated
to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c)(2)) of all such Holders that is attributable to Partnership Common Units is zero; 

(ii) Second, 100% to the Holders (other than the General Partner) to the extent of, and in proportion to, the remaining
positive balance (if any) in their Adjusted Capital Accounts; 
 (iii) Third, 100% to the General Partner in respect of its
Series A Preferred Units until the adjusted Capital Account of the General Partner with respect to such Series A Preferred Units is reduced to zero; and 

(iv) Fourth, 100% to the General Partner.” 

Article 6, Section 6.2.D of the Partnership Agreement is hereby deleted in its entirety and replaced by Section D, below: 

“D. Special Allocations with Respect to LTIP Units. In the event that Liquidating Gains are allocated under this
Section 6.2.D, Net Income allocable under 

  
 11 

 
Section 6.2.A and any Net Losses allocable under Section 6.2.B shall be recomputed without regard to the Liquidating Gains so allocated. After giving effect to the special allocations
set forth in Section 6.4.A hereof, any Liquidating Gains allocable under Section 6.2.A(v) or excluded from Net Losses shall first be allocated to the Holders of LTIP Units until the Economic Capital Account Balances of such Holders, to the
extent attributable to their ownership of LTIP Units, are equal to (i) the Common Unit Economic Balance, multiplied by (ii) the number of their LTIP Units, and then shall be allocated to the Holders of LTIP Units and the Holders of
Partnership Common Units, pro rata. Any such allocations shall be made among the Holders of LTIP Units in proportion to the amounts required to be allocated to each under this Section 6.2.D. The parties agree that the intent of this
Section 6.2.D is to make the Capital Account balances of the Holders of LTIP Units with respect to their LTIP Units economically equivalent to the Capital Account balance of the General Partner with respect to its Partnership Common
Units.” 
 Article 6, Section 6.2 of the Partnership Agreement is hereby amended with the addition of section E, below: 

“E. It is the intention of the parties hereunder that the aggregate Capital Account balance of the General Partner in
respect of its Series A Preferred Units at any date shall not exceed the amount of the original Capital Contributions made in respect of its Series A Preferred Units plus all accrued and unpaid distributions thereon, whether or not declared, to the
extent not previously distributed. Notwithstanding anything to the contrary contained herein, in connection
with the liquidation of the Partnership or the interest of a holder of Series A Preferred Units, and prior to making any other allocations of Net Income or Net Loss, items of
income and gain or deduction and loss shall first be allocated to the General Partner in respect of its Series A Preferred Units in such amounts as is required to cause the General Partner’s Adjusted
Capital Account (taking into account any amounts such Partner is obligated to contribute to the capital of the Partnership or is deemed obligated to contribute pursuant to Regulations Section 1.704-1(b)(2)(ii)(c)(2)) to equal the amount
such Partner is entitled to receive pursuant to the provisions of Sections 6 and 7 hereof.” 
 11. Additional Allocation Provisions. 

Article 6, Section 6.3.A of the Partnership Agreement is hereby deleted in its entirety and replaced by Section A, below: 

“A. Special Allocations Upon Liquidation. In the event that the Partnership disposes of all or substantially all of
its assets in a transaction that will lead to a liquidation of the Partnership pursuant to Article 13 hereof, then: (i) any Liquidating Gains allocable under Section 6.2.A(v) or excluded from Net Losses shall first be allocated to each
Holder of LTIP Units in accordance with the Holder’s Percentage Interest until the Economic Capital Account Balance of such Holder, to the extent attributable to the Holder’s ownership of LTIP Units, is equal to (a) the Common Unit
Economic Balance, multiplied by (b) the number of such Holder’s LTIP Units; and 

  
 12 

 
(ii) any Net Income or Net Loss realized in connection with such transaction and thereafter (recomputed without regard to the Liquidating Gains allocated pursuant to clause (i) above)
shall be specially allocated for such Partnership Year (and to the extent permitted by Code Section 761(c), for the immediately preceding Partnership Year) among the Holders as required so as to cause liquidating distributions pursuant to
Section 13.2.A(4) hereof to be made in the same amounts and proportions as would have resulted had such distributions instead been made pursuant to Section 5.1 hereof. In addition, if there is an adjustment to the Gross Asset Value of the
assets of the Partnership pursuant to paragraph (b) of the definition of Gross Asset Value, allocations of Net Income or Net Loss arising from such adjustment shall be allocated in the same manner as described in the prior sentence. 

12. Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions the
General Partner hereby ratifies and confirms. 

  
 13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00262-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00262-of-00352.parquet"}]]