Document:

exv10w49

Exhibit 10.49

NINTH AMENDMENT TO

CREDIT AGREEMENT

     THIS NINTH AMENDMENT (“Amendment”) dated as of May 12, 2008, by and between
Perceptron, Inc. (“Company”) and Comerica Bank (“Bank”).

RECITALS:

     A. Company and Bank entered into a Credit Agreement dated as of October 24, 2002, which
was amended by eight amendments (“Agreement”).

     B. Company and Bank desire to amend the Agreement as hereinafter set forth.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 8.9 of the Agreement is amended to read as follows:

     “8.9 Make any Capital Expenditure during any fiscal year if after giving
effect thereto the aggregate amount of all Capital Expenditures made by Company
and its Subsidiaries during such fiscal year would exceed $2,000,000.”

     2. Schedules 6.3 and 6.9 are deleted and attached
Schedules 6.3 and 6.9 are substituted in their places.

     3. Company hereby represents and warrants that, after giving effect to the
amendments contained herein, (a) execution, delivery and performance of this Amendment and
any other documents and instruments required under this Amendment or the Agreement are
within Company’s corporate powers, have been duly authorized, are not in contravention of law
or the terms of Company’s Articles of Incorporation or Bylaws, and do not require the consent
or
approval of any governmental body, agency, or authority; and this Amendment and any other
documents and instruments required under this Amendment or the Agreement, will be valid and
binding in accordance with their terms; (b) the continuing representations and warranties of
Company set forth in Sections 6.1 through 6.5 and 6.7 through 6.12 of the Agreement are true
and correct on and as of the date hereof with the same force and effect as made on and as of
the
date hereof; (c) the continuing representations and warranties of Company set forth in Section
6.6 of the Agreement are true and correct as of the date hereof with respect to the most
recent
financial statements furnished to the Bank by Company in accordance with Section 7.1 of the
Agreement; and (d) no Event of Default (as defined in the Agreement) or condition or event
which, with the giving of notice or the running of time, or both, would constitute an Event of
Default under the Agreement, as hereby amended, has occurred and is continuing as of the date
hereof.

     4. Except as expressly provided herein, all of the terms and conditions of the
Agreement remain unchanged and in full force and effect.

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     5. This Amendment shall be effective upon (a) execution of this Agreement by Company and the
Bank and (bc) execution by the Guarantor of the attached Acknowledgment of Guarantor.

     IN WITNESS the due execution hereof as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	COMERICA BANK	 	 	 	PERCEPTRON, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Sarah E. Virga
 
	 	 	 	By:	 	/s/ John H. Lowry III
 
	 	 
	Its:
	 	Assistant VP	 	 	 	
Its:	 	John H. Lowry III
CFO	 	 

ACKNOWLEDGMENT OF GUARANTOR

     The undersigned guarantor acknowledges and agrees to the foregoing Amendment and merger
acknowledgement and confirms that the Guaranty dated October 24, 2002, executed and delivered by
the undersigned to the Bank remains in full force and effect in accordance with its terms.

	 	 	 	 	 	 	 
	 	 	PERCEPTRON GLOBAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John H. Lowry III
 
	 	 
	 

	 	
Its:	 	John H. Lowry III
CFO	 	 

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SCHEDULE 6.3.

Litigation

The Company is a party to a suit filed by Industries GDS, Inc., Bois Granval GDS Inc., and Centre
de Preparation GDS, Inc. (collectively, “GDS”) on or about November 21, 2002 in the Superior Court
of the Judicial District of Quebec, Canada against the Company, Carbotech, Inc. (“Carbotech”), and
U.S. Natural Resources, Inc. (“USNR”), among others. The suit alleges that the Company breached its
contractual and warranty obligations as a manufacturer in connection with the sale and installation
of three systems for trimming and edging wood products. The suit also alleges that Carbotech
breached its contractual obligations in connection with the sale of equipment and the installation
of two trimmer lines, of which the Company’s systems were a part, and that USNR, which acquired
substantially all of the assets of the Forest Products business unit from the Company, was liable
for GDS’ damages. USNR has sought indemnification from the Company under the terms of existing
contracts between the Company and USNR. GDS seeks compensatory damages against the Company,
Carbotech and USNR of approximately $6.3 million using a June 30, 2007 exchange rate. GDS and
Carbotech have filed for bankruptcy protection in Canada. The Company intends to vigorously defend
GDS’ claims.

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SCHEDULE 6.9

SUBSIDIARIES

The following are first tier subsidiaries of Perceptron:

Perceptron Europe B.V.

Perceptron Canada, Inc.

Perceptron Korea Yuhan Hoesa

Perceptron Global, Inc.

Perceptron do Brasil, Ltda

The following are second tier subsidiaries of Perceptron:

	 	A.	 	Subsidiary of Perceptron Europe B.V.

Perceptron GmbH
	 
	 	B.	 	Subsidiaries of Perceptron Global, Inc.

Perceptron Asia Pte. Ltd.

Perceptron Asia Pacific, Ltd.

Perceptron Trading (Shanghai) Ltd (Pending)

The following are third tier subsidiaries of Perceptron:

	 	A.	 	Subsidiaries of Perceptron GmbH

Perceptron Iberica, S.L.

Perceptron E.U.R.L.

4exv10w2

EXHIBIT 10.2

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

OF

PACIFIC OFFICE PROPERTIES, L.P.

a Delaware limited partnership

dated as of March 19, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.      DEFINITIONS	 	 	1	 
	 	 	 
	 	 	 	 
	2.       ORGANIZATIONAL MATTERS	 	 	21	 
	2.1	 	Organization
	 	 	21	 
	2.2	 	Name
	 	 	21	 
	2.3	 	Registered Office and Agent; Principal Office
	 	 	21	 
	2.4	 	Power of Attorney
	 	 	22	 
	2.5	 	Term
	 	 	23	 
	 	 	 
	 	 	 	 
	3.       PURPOSE	 	 	23	 
	3.1	 	Purpose and Business
	 	 	23	 
	3.2	 	Powers
	 	 	24	 
	3.3	 	Partnership Only for Partnership Purposes
	 	 	24	 
	3.4	 	Representations and Warranties by the Parties
	 	 	24	 
	 	 	 
	 	 	 	 
	4.     CAPITAL ACCOUNTS; CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS	 	 	27	 
	4.1	 	Capital Accounts
	 	 	27	 
	4.2	 	General Partner Interests
	 	 	27	 
	4.3	 	Class A Convertible Preferred Units
	 	 	27	 
	4.4	 	Issuances of Additional Partnership Interests
	 	 	30	 
	4.5	 	Additional Funds and Capital Contributions
	 	 	31	 
	4.6	 	Stock Incentive Plans
	 	 	33	 
	4.7	 	No Interest; No Return
	 	 	35	 
	4.8	 	Other Contribution Provisions
	 	 	35	 
	4.9	 	Not Publicly Traded
	 	 	35	 
	 	 	 
	 	 	 	 
	5.      DISTRIBUTIONS	 	 	35	 
	5.1	 	Requirement and Characterization of Distributions
	 	 	35	 
	5.2	 	Distributions in Kind
	 	 	36	 
	5.3	 	Amounts Withheld
	 	 	36	 
	5.4	 	Distributions Upon Liquidation
	 	 	36	 
	5.5	 	Distributions to Reflect Issuance of Additional Partnership Units
	 	 	36	 
	5.6	 	Restricted Distributions
	 	 	36	 
	 	 	 
	 	 	 	 
	6.       ALLOCATIONS	 	 	36	 
	6.1	 	Timing and Amount of Allocations of Income and Loss
	 	 	37	 
	6.2	 	General Allocations
	 	 	37	 
	6.3	 	Additional Allocation Provisions
	 	 	37	 
	6.4	 	Tax Allocations
	 	 	40	 
	 	 	 	 	 	 	 
	7.     MANAGEMENT AND OPERATIONS OF BUSINESS.
 	 	 	40	 
	7.1	 	Management
	 	 	40	 
	7.2	 	Certificate of Limited Partnership
	 	 	44	 
	7.3	 	Reimbursement of the General Partner
	 	 	45	 

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	7.4	 	Outside Activities of the General Partner
	 	 	45	 
	7.5	 	Contracts with Affiliates
	 	 	46	 
	7.6	 	Indemnification
	 	 	47	 
	7.7	 	Liability of the General Partner
	 	 	49	 
	7.8	 	Other Matters Concerning the General Partner
	 	 	50	 
	7.9	 	Title to Partnership Assets
	 	 	51	 
	7.10	 	Reliance by Third Parties
	 	 	51	 
	 	 	 
	 	 	 	 
	8.      RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	 	 	51	 
	8.1	 	Limitation of Liability
	 	 	51	 
	8.2	 	Management of Business
	 	 	51	 
	8.3	 	Outside Activities of Limited Partners
	 	 	52	 
	8.4	 	No Return of Capital
	 	 	52	 
	8.5	 	Redemption Rights of Qualifying Parties
	 	 	52	 
	8.6	 	Mergers
	 	 	57	 
	 	 	 
	 	 	 	 
	9.     BOOKS, RECORDS, ACCOUNTING AND REPORTS	 	 	58	 
	9.1	 	Records and Accounting
	 	 	58	 
	9.2	 	Fiscal Year
	 	 	58	 
	9.3	 	Reports
	 	 	58	 
	 	 	 
	 	 	 	 
	10.   TAX MATTERS	 	 	59	 
	10.1	 	Preparation of Tax Returns
	 	 	59	 
	10.2	 	Tax Elections
	 	 	59	 
	10.3	 	Tax Matters Partner
	 	 	59	 
	10.4	 	Withholding
	 	 	60	 
	10.5	 	Organizational Expenses
	 	 	61	 
	 	 	 
	 	 	 	 
	11.   TRANSFERS AND WITHDRAWALS	 	 	61	 
	11.1	 	Transfer
	 	 	61	 
	11.2	 	Transfer of General Partner’s Partnership Interest
	 	 	61	 
	11.3	 	Transfer of Limited Partners’ Partnership Interests
	 	 	62	 
	11.4	 	Substituted Limited Partners
	 	 	64	 
	11.5	 	Assignees
	 	 	64	 
	11.6	 	General Provisions
	 	 	65	 
	 	 	 
	 	 	 	 
	12.   ADMISSION OF PARTNERS	 	 	66	 
	12.1	 	Admission of Successor General Partner
	 	 	66	 
	12.2	 	Admission of Additional Limited Partners
	 	 	66	 
	12.3	 	Amendment of Agreement and Certificate of Limited Partnership
	 	 	67	 
	 	 	 
	 	 	 	 
	13.   DISSOLUTION, LIQUIDATION AND TERMINATION	 	 	67	 
	13.1	 	Dissolution
	 	 	67	 
	13.2	 	Winding Up
	 	 	68	 
	13.3	 	Deemed Distribution and Recontribution
	 	 	70	 
	13.4	 	Rights of Limited Partners
	 	 	71	 
	13.5	 	Notice of Dissolution
	 	 	71	 

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	13.6	 	Cancellation of Certificate of Limited Partnership
	 	 	71	 
	13.7	 	Reasonable Time for Winding-Up
	 	 	71	 
	 	 	 
	 	 	 	 
	14.     PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS	 	 	71	 
	14.1	 	Procedures for Actions and Consents of Partners
	 	 	71	 
	14.2	 	Amendments
	 	 	71	 
	14.3	 	Meetings of the Partners
	 	 	73	 
	 	 	 
	 	 	 	 
	15.     GENERAL PROVISIONS	 	 	74	 
	15.1	 	Addresses and Notice
	 	 	74	 
	15.2	 	Entire Agreement
	 	 	74	 
	15.3	 	Governing Law Jurisdiction
	 	 	74	 
	15.4	 	Headings
	 	 	74	 
	15.5	 	Pronouns and Plurals
	 	 	75	 
	15.6	 	Further Action
	 	 	75	 
	15.7	 	Binding Effect
	 	 	75	 
	15.8	 	Counterparts
	 	 	75	 
	15.9	 	Fax Signatures
	 	 	75	 
	15.10	 	Partial Invalidity
	 	 	75	 
	15.11	 	Waiver
	 	 	75	 
	15.12	 	Limitation to Preserve REIT Status
	 	 	76	 
	15.13	 	No Partition
	 	 	76	 
	15.14	 	No Third-Party Rights Created Hereby
	 	 	77	 
	15.15	 	No Rights as Stockholders
	 	 	77	 
	15.16	 	Construction
	 	 	77	 

iii

 

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

OF

PACIFIC OFFICE PROPERTIES, L.P.

     THIS AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF PACIFIC OFFICE PROPERTIES, L.P.,
a Delaware limited partnership, effective as of March 19, 2008 (the “Effective Time”), is entered
into by and among Pacific Office Properties Trust, Inc., a Maryland corporation (defined herein as
the “General Partner”), as the general partner of the Partnership, and POPTLP, LLC, a Delaware
limited liability company, and POP Venture, LLC, a Delaware limited liability company, as the
limited partners of the Partnership, together with any other Persons who become Partners in the
Partnership as provided herein.

RECITALS

     A. The Partnership was formed pursuant to and in accordance with the Delaware Revised Uniform
Limited Partnership Act (6 Del. C. § 17-101, et seq.), as amended
from time to time (the “Act”), by the General Partner, as the general partner, and POPTLP, LLC, as
the initial limited partner, by the filing of a Certificate of Limited Partnership with the
Secretary of State of the State of Delaware on January 28, 2008 and the execution of the Limited
Partnership Agreement of the Partnership, dated as of January 28, 2008, as amended by the First
Amendment thereto, dated as of March 10, 2008 (as amended, the “Original LP Agreement”); and

     B. The General Partner has made a Capital Contribution to the Partnership in exchange for a
General Partner Interest.

     C. The General Partner and POPTLP, LLC have determined that it is in the best interests of the
Partnership to admit POP Venture, LLC as an additional limited partner of the Partnership.

     D. POP Venture, LLC is contributing to the Partnership certain indirect interests in real
property pursuant to the terms and subject to the conditions set forth in the Master Agreement.

     E. The Partners desire to continue the Partnership as a limited partnership under the Act and
to amend and restate the Original Agreement in its entirety.

AGREEMENTS

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
General Partner, each Limited Partner and each Person subsequently joining this Agreement as a
Partner hereby agree as follows:

 

 

     1. DEFINITIONS.

     As used in this Agreement, the following terms shown have the meanings set forth in this
Section 1.

     “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 7.6.1 hereof.

     “Additional
Funds” has the meaning set forth in Section 4.5.1.

     “Additional Limited Partner” means a Person who is admitted to the Partnership as a Limited
Partner pursuant to Section 4.4 and Section 12.2 hereof and who is shown as such on the books and records of the Partnership.

     “Adjusted Capital Account” means, with respect to any Partner, the balance in such Partner’s
Capital Account as of the end of the relevant Fiscal Year or any other point of determination,
after giving effect to the following adjustments: 

     (i) credit to such Capital Account any amounts that such Partner is obligated to restore
pursuant to this Agreement or by operation of law upon liquidation of such Partner’s Partnership
Interest or is deemed to be obligated to restore pursuant to the penultimate sentence of each of
Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

     (ii) debit to such Capital Account the items described in Regulations
Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

The foregoing definition of Adjusted Capital Account is intended to comply with the requirements of
the alternate test for economic effect contained in 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.

     “Adjustment Date” means the last day of any Fiscal Year and any day on which the Gross Asset
Value of any Company asset is adjusted pursuant to this Agreement.

     “Advisor” means Pacific Office Management, Inc., a Delaware corporation, or any
successor-in-interest thereto or permitted assignee of Pacific Office Management, Inc.’s interest
in and obligation under the Advisory Agreement.

     “Advisory Agreement” means that certain Advisory Agreement that the Partnership currently
anticipates entering into with the Advisor and the General Partner, as the same may be amended or
supplemented from time to time.

     “Affiliate” shall mean with respect to a specified Person, a Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with the Person specified and shall have such additional meaning as such term has under
Rule 12b-2 under the Exchange Act.

2

 

     “Agreement” means this Amended and Restated Agreement of Limited Partnership of Pacific Office
Properties, L.P., as it may be amended, supplemented, restated or otherwise modified from time to
time.

     “Applicable Percentage” has the meaning set forth in Section 8.5.4.

     “Articles of Incorporation” means the Articles of Incorporation of the General Partner filed
with the State Department of Assessments and Taxation of Maryland, as 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.

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

     “Capital Account” means, with respect to any Partner, the capital account established and
maintained for such Partner in accordance with Section 4.

     “Capital Account Deficit” has the meaning set forth in Section 13.2.3.

     “Capital Contribution” means, with respect to any Partner, the sum of (i) the cash, cash
equivalents and promissory obligations, plus (ii) the initial Gross Asset Value of any Contributed
Property, plus (iii) the Net Equity Value of any Contributed Interests, in each such case, that
such Partner contributes to the Partnership or is deemed to have contributed pursuant to Section 4
hereof.

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

     “Class A Conversion Price” means, as of any date of determination, an amount equal to the
quotient obtained by dividing the Class A Convertible Preferred Unit Liquidation Preference Amount
by the Class A Convertible Preferred Unit Conversion Factor. As of the date of this Agreement, the
initial Class A Conversion Price is $3.49 (i.e., $25.00 divided by 7.1717).

     “Class A Convertible Preferred Unit” means a fractional portion of the Partnership Interests
that has the rights and designation, including distribution rights and rights upon
liquidation, winding up and dissolution, that are superior or prior to the Common Units, as
more specifically described in Section 4.3.

     “Class A Convertible Preferred Unit Conversion Factor” initially means the number equal to
7.1717; provided, however, if at any time:

     (i) the Partnership (a) declares or pays a distribution on its Common Units in
Common Units or makes a distribution to all holders of its Common Units in Common
Units, (b) splits or subdivides its Common Units or (c) effects a

3

 

reverse stock
split or otherwise combines its Common Units into a smaller number of Common Units,
then the Class A Convertible Preferred Unit Conversion Factor shall be adjusted by
multiplying the Class A Convertible Preferred Unit Conversion Factor previously in
effect by a fraction (A) the numerator of which shall be the number of Common Units
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
(B) the denominator of which shall be the actual number of Common Units (determined
without the above assumption) on the record date for such dividend, distribution,
split, subdivision, reverse split or combination;

     (ii) the Partnership distributes any rights, options or warrants to all holders
of its Common Units to subscribe for or to purchase or to otherwise acquire Common
Units (or other securities or rights convertible into, exchangeable for or
exercisable for Common Units) at a price per share less than the Value of a Common
Unit on the record date for such distribution (each a “Distributed Right”), then the
Class A Convertible Preferred Unit Conversion Factor shall be adjusted by
multiplying the Class A Convertible Preferred Unit Conversion Factor previously in
effect by a fraction (a) the numerator of which shall be the sum of (A) the number
of Common Units issued and on the record date plus (B) the maximum number of Common
Units purchasable under such Distributed Rights, and (b) the denominator of which
shall be the sum of (1) the number of Common Units on the record date, plus (2) a
fraction, (I) the numerator of which equals the product of (x) the maximum number of
Common Units purchasable under such Distributed Rights multiplied by (y) the minimum
purchase price per Common Unit under such Distributed Rights, and (II) the
denominator of which is the Value of a Common Unit as of the record date;
provided, however, that, if any such Distributed Rights expire or
become no longer exercisable, then the Class A Convertible Preferred Unit Conversion
Factor shall be adjusted, effective retroactively to the date of distribution of the
Distributed Rights, to reflect a reduced maximum number of Common Units or any
change in the minimum purchase price for the purposes of the above fraction;

     (iii) the Partnership shall, by dividend or otherwise, distribute to all
holders of its Common Units 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 General Partner pursuant to a pro rata distribution by the
Partnership, then the Class A Convertible Preferred Unit Conversion Factor shall be
adjusted to equal the amount determined by multiplying the Class A Convertible
Preferred Unit Conversion Factor in effect immediately prior to the close of
business on the date fixed for determination of shareholders entitled to receive
such distribution by a fraction (a) the numerator of which shall be such Value of a
Common Unit on the date fixed for such determination and (b) the denominator of
which shall be the amount of the numerator less the then-fair market value (as
determined by the General Partner, whose determination shall be

4

 

conclusive) of the
portion of the evidences of indebtedness or assets so distributed applicable to one
Common Unit;

     (iv) the General Partner declares or pays a cash dividend or other cash
distribution on its outstanding Common Shares or the Partnership declares a cash
distribution on its outstanding Common Units during any quarterly fiscal period
(excluding any dividend or distribution in connection with a liquidation,
dissolution or wind up of the Partnership or the General Partner), in either case,
in excess of the Reference Dividend multiplied by the number of shares of Common
Stock or Common Units outstanding on the record date for dividend or distribution,
then the Class A Convertible Preferred Unit Conversion Factor shall be adjusted to
equal the amount determined by multiplying the Class A Convertible Preferred Unit
Conversion Factor in effect immediately prior to the close of business on the date
fixed for determination of shareholders or unit holders entitled to receive such
distribution by a fraction (i) the numerator of which shall be the average of the
daily Market Prices for the five (5) consecutive trading days prior to the trading
day immediately preceding the earlier of the record date or ex-dividend date for the
distribution, and (ii) the denominator of which is the difference of the amount
equal to the numerator minus the amount in cash per Common Share or Common Unit (as
the case may be) distributed (or to be distributed) to the holders of its
outstanding Common Shares or Common Unit (as the case may be) in excess of the
Reference Dividend. Notwithstanding anything to the contrary contained herein, no
adjustment shall be made to the Class A Convertible Preferred Unit Conversion Factor
if such adjustments would reduce the amount of the Class A Convertible Preferred
Unit Conversion Factor; and

     (v) the Partnership (a) declares or pays a distribution on the outstanding
Class A Convertible Preferred Units in Class A Convertible Preferred Units or makes
a distribution to all Partners in Class A Convertible Preferred Units, (b)
subdivides the outstanding Class A Convertible Preferred Units or (c) combines the
outstanding Class A Convertible Preferred Units into a smaller number of Class A
Convertible Preferred Units, then the Class A Convertible Preferred Unit Redemption
Factor shall be adjusted by multiplying the Class A Convertible Preferred Unit
Redemption Factor by a fraction, the numerator of which shall be the actual number
of Class A Convertible Preferred Units issued and outstanding on the record date
(determined without giving effect to such dividend, distribution, subdivision or
combination), and the denominator of which shall be
the actual number of Class A Convertible Preferred Units (determined after
giving effect to such dividend, distribution, subdivision or combination) issued and
outstanding on such record date.

     Any adjustments to the Class A Convertible Preferred Unit Conversion Factor shall become
effective immediately after the effective date of such event, retroactive to the record date, if
any, it being intended that if a Specified Redemption Date shall fall between the record date and
the effective date of any event of the type described above, then the Class A Convertible Preferred
Unit Conversion Factor applicable to such redemption shall be adjusted to take into

5

 

account such
event, provided, however, that any Limited Partner may waive, by written notice to
the General Partner, the effect of any adjustment to the Class A Convertible Preferred Unit
Conversion Factor applicable to the Class A Convertible Preferred Units held by such Limited
Partner, and, thereafter, such adjustment will not be effective as to such Class A Convertible
Preferred Units.

     “Class A Convertible Preferred Unit Liquidation Preference Amount” means $25.00 per Class A
Convertible Preferred Unit. Such amount shall be adjusted, as determined to be equitable by the
General Partner in its sole discretion, in the event of a dividend, distribution, subdivision,
combination or similar recapitalization affecting the Class A Convertible Preferred Units.

     “Class A Preferred Distribution” has the meaning set forth in Section 4.3.2.

     “Class A Transition Unlock Date” means for any Common Unit acquired upon conversion of all or
any part of Class A Convertible Preferred Unit(s) pursuant to Section 4.3.4, unless otherwise agreed by the Partnership and a Limited Partner, the first anniversary of
the date such Common Unit is so acquired.

     “Class A Unlock Date” means, unless otherwise agreed by the Partnership and a Limited Partner,
the date at which both of the following have occurred: (i) the two-year anniversary of the
Effective Time and (ii) the consummation of a Qualified Public Offering.

     “Closing Price” means on any date the last sale price for such Common 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 Common Shares, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the
American Stock Exchange or, if such Common Shares are not listed or admitted to trading on the
American 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
Common Shares are listed or admitted to trading or, if such Common Shares are not listed or
admitted to trading on any national securities exchange, the last quoted price, or the principal
automated quotation system that may then be in use or, if such Common 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 Common Shares selected by the Board of Directors of the
General Partner or, in the event that no trading price is available for such Common Shares, the
fair market value of the Common Shares as determined in good faith by the Board of Directors of the
General Partner.

     “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.

     “Common Shares” means, together, the shares of the General Partner’s common stock, $.0001 par
value per share, and the shares of General Partner’s Class B common stock, $.0001 par value per
share. Where relevant in this Agreement, “Common Shares” includes shares of the

6

 

General Partner’s
common stock, $.0001 par value per share, issued upon conversion of Preferred Shares or Junior
Shares.

     “Common Shares Amount” means a number of Common Shares equal to the product of (a) the number
of Tendered Units, multiplied by (b) the Common Unit Redemption Factor in effect on the Specified
Redemption Date with respect to such Tendered Units; provided, however, that, in
the event that the General Partner issues to all holders of Common Shares as of a certain record
date rights, options, warrants or convertible or exchangeable securities entitling such holders to
subscribe for or purchase Common 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 but which Rights will not be distributed before the relevant Specified Redemption
Date, then the Common Shares Amount shall also include such Rights that a holder of that number of
Common Shares would be entitled to receive, expressed, where relevant hereunder, in a number of
Common Shares determined by the General Partner in good faith.

     “Common Unit” means a fractional portion of the Partnership Interests of all Partners issued
pursuant to Sections 4.1 and 4.3 hereof, but does not include any Class A Convertible Preferred Unit,
Preferred Unit, Junior Unit or any other Partnership Unit specified in a Partnership Unit
Designation or this Agreement as being other than a Common 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. The ownership of Common Units may be (but
need not be, in the sole and absolute discretion of the General Partner) evidenced by a certificate
for Common Units in such form as the General Partner may designate.

     “Common Unit Redemption Factor” means 1.0; provided, however, if, at any time:

     (i)  the General Partner (a) declares or pays a dividend on its outstanding
Common Shares in Common Shares or makes a distribution to all holders of its
outstanding Common Shares in Common Shares, (b) splits or subdivides its outstanding
Common Shares or (c) effects a reverse stock split or otherwise combines its
outstanding Common Shares into a smaller number of Common Shares, then the Common
Unit Redemption Factor shall be adjusted by multiplying the Common Unit Redemption
Factor previously in effect by a fraction (A) the numerator of which shall be the
number of Common 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 (B) the denominator of which shall be the actual number of
Common 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 General Partner distributes any rights, options or warrants to all
holders of its Common Shares to subscribe for or to purchase or to otherwise acquire
Common Shares (or other securities or rights convertible into,

7

 

exchangeable for or
exercisable for Common Shares) at a price per share less than the Value of a Common
Share on the record date for such distribution (each a “Distributed Right”), then
the Common Unit Redemption Factor shall be adjusted by multiplying the Common Unit
Redemption Factor previously in effect by a fraction the numerator of which shall be
the sum of (A) the number of Common Shares issued and outstanding on the record date
plus (B) the maximum number of Common Shares purchasable under such Distributed
Rights, and the denominator of which shall be the sum of (1) the number of Common
Shares issued and outstanding on the record date, plus (2) a fraction, the numerator
of which equals the product of (x) the maximum number of Common Shares purchasable
under such Distributed Rights multiplied by (y) the minimum purchase price per
Common Share under such Distributed Rights, and the denominator of which is the
Value of a Common Share as of the record date; provided, however,
that, if any such Distributed Rights expire or become no longer exercisable, then
the Common Unit Redemption Factor shall be adjusted, effective retroactively to the
date of distribution of the Distributed Rights, to reflect a reduced maximum number
of Common Shares or any change in the minimum purchase price for the purposes of the
above fraction;

     (iii)  the General Partner shall, by dividend or otherwise, distribute to all
holders of its Common 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 General Partner pursuant to a pro rata distribution by the
Partnership, then the Common Unit Redemption Factor shall be adjusted to equal the
amount determined by multiplying the Common Unit Redemption Factor in effect
immediately prior to the close of business on the date fixed for determination of
shareholders entitled to receive such distribution by a fraction (a) the numerator
of which shall be such Value of a Common Share on the date fixed for such
determination and (b) the denominator of which shall be the amount of the numerator
less the then-fair market value (as determined by the General Partner, whose
determination shall be conclusive) of the portion of the evidences of indebtedness
or assets so distributed applicable to one Common Share; and

     (iv) the Partnership (a) declares or pays a distribution on the outstanding
Common Units in Common Units or makes a distribution to all Partners in Common
Units, (b) subdivides the outstanding Common Units or (c) combines the outstanding
Common Units into a smaller number of Common Units, then the
Common Unit Redemption Factor shall be adjusted by multiplying the Common Unit
Redemption Factor by a fraction, the numerator of which shall be the actual number
of Common Units issued and outstanding on the record date (determined without giving
effect to such dividend, distribution, subdivision or combination), and the
denominator of which shall be the actual number of Common Units (determined after
giving effect to such dividend, distribution, subdivision or combination) issued and
outstanding on such record date.

8

 

     If the General Partner has in effect a rights plan, then the Common Unit Redemption Factor
shall not be adjusted to reflect the issuance of rights under the General Partner’s rights plan
except as set forth in the next following sentence. If the rights provided for in the rights plan
adopted by the General Partner have separated from the Common Shares in accordance with the
provisions of the applicable stockholder rights agreement so that holders of Common Units would not
be entitled to receive any rights in respect of any shares of Common Shares delivered upon receipt
of any REIT Consideration an exchange of Common Units, the Common Unit Redemption Factor will be
adjusted at the time of separation as if the General Partner had distributed, to all holders of
Common Shares, capital stock, evidences of indebtedness or other assets or property pursuant
hereto. Any adjustments to the Common Unit Redemption Factor shall become effective immediately
after the effective date of such event, retroactive to the record date, if any, it being intended
that (x) adjustments to the Common Unit Redemption Factor are to be made to avoid unintended
dilution or anti-dilution as a result of transactions in which Common Shares are issued, redeemed
or exchanged without a corresponding issuance, redemption or exchange of Common Units and (y) if a
Specified Redemption Date shall fall between the record date and the effective date of any event of
the type described above, then the Common Unit Redemption Factor applicable to such redemption
shall be adjusted to take into account such event, provided, however, that any
Limited Partner may waive, by written notice to the General Partner, the effect of any adjustment
to the Common Unit Redemption Factor applicable to the Common Units held by such Limited Partner,
and, thereafter, such adjustment will not be effective as to such Common Units.

     “Consent” means the consent to, approval of, or vote in favor of a proposed action by a
Partner given in accordance with Section 14 hereof.

     “Consent of the Limited Partners” means the Consent of a Majority of the Limited Partners,
which Consent shall be obtained prior to the taking of any action for which it is required by this
Agreement and, except as otherwise provided in this Agreement, may be given or withheld by a
Majority of the Limited Partners.

     “Contributed Interest” shall mean an equity interest (whether in shares of capital stock,
limited liability company membership interests, partnership interests, trust interests or
otherwise) in an entity (whether corporation, limited liability company, partnership, limited
partnership, statutory business trust, trust or otherwise) which holds (on a direct or an indirect
basis) holds fee simple or leasehold title (in whole or in part) to a Contributed Property.

     “Contributed Property” means each item of Property or other non-cash asset contributed to the
Partnership.

     “Conversion Time” has the meaning set forth in Section 4.3.7.

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

     “Debt” means, as to any Person, as of any date of determination, (i) all indebtedness of such
Person for borrowed money or for the deferred purchase price of property or services; (ii) all
amounts owed by such Person to banks or other Persons in respect of reimbursement

9

 

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.

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

     “Distributed Right” has the meaning set forth in the definitions of “Common Unit Redemption
Factor” and “Class A Convertible Preferred Unit Conversion Factor,” as applicable, set forth in
this Section 1.

     “Domestic Partner” of any Partner shall mean an individual who (i) has reached the age of 18
and is competent to consent to a contract, (ii) is of the same gender of the Partner, (iii) is not
married to and/or is not the domestic partner of anyone other than the Partner; (iv) is not related
by blood to the Partner in any way that would prohibit marriage in their state of residence, and
(v) has shared a principal place of residence with the Partner for a period of at least eighteen
(18) months and has a current intention to continue sharing a principal place of residence with the
Partner and intends to do so indefinitely.

     “Effective Time” has the meaning set forth in the Preamble to this Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and as it may
be amended from time to time and any successor statute.

     “Exchange Act” means the Securities Exchange Act of 1934, and the rules and regulations
promulgated thereunder, each as may be amended from time to time and any successor statute.

     “Family Members” means, as to a Person that is an individual, such Person’s spouse, Domestic
Partner, ancestors, descendants (whether by blood or by adoption), brothers and sisters and inter
vivos or testamentary trusts of which only such Person and/or his spouse, Domestic Partner,
ancestors, descendants (whether by blood or by adoption), brothers and sisters are beneficiaries.

     “Fiscal Year” means the fiscal year of the Partnership, which shall be the calendar year
unless otherwise determined by the General Partner.

10

 

     “Funding Debt” means any Debt incurred by or on behalf of the General Partner for the purpose,
in whole or in part, of providing funds to the Partnership.

     “General Partner” means Pacific Office Properties Trust, Inc., a Maryland corporation, and its
successors and assigns, as the general partner of the Partnership in its capacity as 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 Common Units, Preferred Units or any other Partnership Units.
Initially, the General Partner Interest shall be denominated as a number of Common Units equal to
the number of Common Shares outstanding as of the Effective Time.

     “General Partner Loan” has the meaning set forth in Section 4.5.4.

     “Gross Asset Value” means, with respect to any asset of the Partnership, 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 reasonably determined by the General Partner
or as otherwise agreed to by the General Partner and the contributing Partner;

     (b) 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, the
Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair
market values, as reasonably determined by the General Partner, as of the following times: (i) the
acquisition of an additional Partnership Interest by any new or existing Partner in exchange for
more than a de minimis Capital Contribution; (ii) the distribution by the Partnership to a Partner
of more than a de minimis amount of cash or other Partnership property as consideration for a
Partnership Interest; (iii) the liquidation of the Partnership within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g); (iv) the grant of more than a de minimis Partnership Interest as
consideration for the provision of services to or for the benefit of the Partnership by an existing
Partner acting in his capacity as a Partner, or by a new Partner acting in his capacity as such or
in anticipation of becoming a Partner; and (v) at any other time (A) specified in Regulations
Section 1.704-1(b)(2)(iv)(f)(5) or (B) if reasonably determined by the General Partner to be
necessary or advisable in order to comply with Regulations Sections 1.704-1(b) and 1.704-2;

     (c) the Gross Asset Values of Partnership assets distributed to any Partner shall be the gross
fair market values of such assets (taking Code Section 7701(g) into account) as reasonably
determined by the General Partner as of the date of distribution; and

     (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) and Section 6.3.2(vii);
provided, however, that Gross Asset Values shall not be adjusted
pursuant to this
paragraph to the extent the General Partner reasonably determines that an adjustment

11

 

pursuant to
clause (b) above is necessary or appropriate in connection with a transaction that would otherwise
result in an adjustment pursuant to this paragraph.

     At all times, Gross Asset Values shall be adjusted by Depreciation, which Depreciation is
taken into account with respect to the Partnership’s assets for purposes of computing Income or
Loss. Any adjustment to the Gross Asset Values of Partnership property shall require an adjustment
to the Partners’ Capital Accounts; as for the manner in which such adjustments are allocated to the
Capital Accounts, see paragraph (d) of the definition of Income or Loss in the case of adjustments
by Depreciation, and see paragraph (e) of said definition in all other cases.

     “Holder” means any Partner, and any Assignee which is treated as a partner in 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 trustee of a trust that is a Partner, 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 one hundred twenty (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 ninety (90) days of such
appointment, or (h) an appointment referred to in clause (g) above is not vacated within
ninety (90) days after the expiration of any such stay.

     “Income” or “Loss” means, for each Fiscal Year of the Partnership, the Partnership’s taxable
income or loss, as the case may be, for such year for federal income tax purposes, determined in
accordance with Code Section 703(a), inclusive of all items of income, gain, loss or deduction
required to be separately taxable pursuant to Code Section 703(a)(1), with the following
adjustments:

12

 

     (a) Any income of the Partnership that is exempt from federal income tax and not otherwise
taken into account in computing Income (or 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 under Code Section 704(b), and not otherwise taken into
account in computing Income (or Loss) shall be subtracted from (or added to, as the case may be)
such taxable income (or loss);

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

     (d)  In lieu of the depletion, depreciation, amortization and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be taken into account
Depreciation for the period;

     (e) In the event of an adjustment of the book value of any Partnership asset which requires
that the Capital Accounts of the Partners be adjusted pursuant to Regulations
Sections 1.704-1(b)(2)(iv)(e), (f) and (m), the amount of such adjustments are, in the case of
Regulations Sections 1.704-1(b)(2)(iv) (e) and (f), to be taken into account as gain or loss from a
taxable disposition of Partnership property pursuant to paragraph (c) above, and, in the case of
Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account as additional Income or Loss but
subject to the special allocations set forth in Section 6.3 hereof;
and

     (f) Notwithstanding any other provision of this definition of “Income” or “Loss,” any item
that is specially allocated pursuant to Section 6.3 hereof shall not
be taken into account in computing Income or Loss.

     “Indemnitee” means (i) any Person made a party to a proceeding by reason of its status as
(a) the General Partner, or (b) a director of the General Partner or an officer or employee of the
Partnership or the General Partner and (ii) such other Persons (including Affiliates of the General
Partner or the Partnership) 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.

     “Independent Director” means a director of the General Partner who is not an employee of the
General Partner and who is not an employee or an Affiliate of the Advisor.

     “IRS” means the Internal Revenue Service.

     “Junior Share” means a share of capital stock of the General Partner now or hereafter
authorized or reclassified that has dividend rights, or rights upon liquidation, winding up and
dissolution, that are inferior or junior to the Common Shares.

     “Junior Unit” means a fractional portion of the Partnership Interests that the General Partner
hereafter authorizes pursuant to Section 4.2, Section 4.4 or Section 4.6 hereof that has

13

 

distribution rights, or rights upon liquidation, winding up and dissolution, that are inferior or
junior to the Common Units.

     “Limited Partner” means any Person reflected as a limited partner on the books and records of
the Partnership, including any Substituted Limited Partner or Additional Limited Partner, in such
Person’s capacity as a limited partner in 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
Common Units, Class A Convertible Preferred Units, Preferred Units, Junior Units or other
Partnership Units.

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

     “Liquidator” has the meaning set forth in Section 13.2.1.

     “Lock-Out Date” means the Class A Unlock Date, the Class A Transition Unlock Date and any
other date specified as a restriction on the rights of Partner to convert its Partnership Units
into any other class or series of Partnership Units or to otherwise exercise such Partner’s rights
of redemption with respect to its Partnership Units.

     “LP Direction Votes” has the meaning set forth in Section 7.1.1(f).

     “Majority of the Limited Partners” means Limited Partners holding more than fifty percent
(50%) of the Common Shares that would be obtained by exchanging all of the Partnership Units
outstanding at such time and each exchangeable by their terms for Common Shares (ignoring for
purposes hereof the impact of any Lock-Out Date).

     “Market Price” means on any date, with respect to any class or series of outstanding Common
Shares, the Closing Price for such Common Shares on such date.

     “Master Agreement” means that certain Master Formation and Contribution Agreement, dated as of
October 3, 2006, between POP Venture, LLC, a Delaware limited liability company, and Arizona Land
Income Corporation, an Arizona corporation, as amended by that certain Amendment and Exhibit
Acknowledgement to Master Formation and Contribution Agreement dated November 2, 2006, that certain
Second Amendment and Exhibit Acknowledgement to Master Formation and Contribution Agreement dated
December 9, 2006, that certain Third Amendment and Exhibit Acknowledgement to Master Formation and
Contribution Agreement dated March 27, 2007 and that certain Fourth Amendment and Exhibit
Acknowledgement to Master Formation and Contribution Agreement dated as of November 9, 2007.

     “Net Equity Value” shall mean, for any Contributed Interest, the product of (a) the percentage
ownership represented by such Contributed Interest, multiplied by (b) the amount equal to the
difference between (i) the Gross Asset Value of the Contributed Property, minus (ii) the amount,
including accrued and unpaid interest, of any unpaid mortgage debt secured by such

14

 

Contributed
Property (whether by lien encumbering fee simple title, a leasehold estate or an ownership interest
in a condominium).

     “Nonrecourse Deductions” means, for a Fiscal Year, the net increase, if any, in the amount of
Partnership Minimum Gain during that Fiscal Year, reduced (but not below zero) by the aggregate
amount of any distributions made during such taxable year of proceeds of a nonrecourse liability
(other than a Partner Nonrecourse Debt) that are allocable to an increase in Partnership Minimum
Gain, determined according to the principles of Regulations Section 1.704-2(c).

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

     “Notice of Conversion” has the meaning set forth in Section 4.3.7.

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

     “Optional Liquidation Preference Event” has the meaning set forth in Section 4.3.3.

     “Other Securities” means (i) any rights, options, warrants or convertible or exchangeable
securities having the right to subscribe for or purchase Common Shares or Preferred Shares,
excluding Preferred Shares, Junior Shares and grants under any Stock Incentive Plans, or (ii) any
Debt issued by the General Partner that provides any of the rights described in clause (i).

     “Ownership Limit” means the applicable restriction or restrictions on ownership of shares of
the General Partner imposed under the Articles of Incorporation.

     “Pari Passu Units” has the meaning set forth in Section 4.3.1.

     “Partially Adjusted Capital Account” means, with respect to any Partner as of the close of
business on an Adjustment Date, the Capital Account of such Partner as of the beginning of
the applicable accounting period ending on such Adjustment Date, after giving effect to all
allocations of items of income, gain, loss or deduction not included in the definition of “Profits”
or “Losses” and all Capital Contributions and distributions during such period but before giving
effect to any allocations of Profits and Losses for such period pursuant to Section 6.2.1,
increased by (i) such Partner’s share of “partnership minimum gain”
(as determined pursuant to Regulations Section 1.704-2(g)) as of the end of such period and (ii)
such Partner’s share of “partner nonrecourse debt minimum gain” (as determined pursuant to
Regulations Section 1.704-2(i)) as of the end of such period.

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

     “Partner Nonrecourse Debt Minimum Gain” means “partner nonrecourse debt minimum gain” as such
term is defined in Regulations Section 1.704-2(i)(2). A Partner’s share of Partner Nonrecourse
Debt Minimum Gain (and any net decrease thereof) at any time shall be determined in accordance with
Regulations Section 1.704-2(i).

15

 

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

     “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 Fiscal Year shall be determined in accordance with the rules of Regulations
Section 1.704-2(i)(2).

     “Partnership” means Pacific Office Properties, L.P., as the limited partnership formed under
the Act and continued pursuant to this Agreement, and any successor thereto.

     “Partnership Employees” means the employees of the Partnership, the General Partner and any of
their subsidiaries.

     “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 Common Units, Class A Convertible Preferred Units, Preferred Units,
Junior Units or other Partnership Units. The Partnership Interests held by each Partner are set
forth on Exhibit A hereto, as the same may be amended from time to time in accordance with this
Agreement.

     “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 Fiscal 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 a
distribution 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 shareholders of some or all of its share of such distribution.

     “Partnership Unit” shall mean a Common Unit, a Class A Convertible Preferred Unit, a Preferred
Unit, a Junior Unit or any other fractional portion of the Partnership Interests that the General
Partner has authorized pursuant to Section 4.2, Section 4.4 or Section 4.6 hereof.

     “Partnership Unit Designation” shall have the meaning set forth in Section 4.4.1 hereof.

     “Percentage Interest” means, as to each Partner (including the General Partner), its interest,
if any, in the Common Units as determined by dividing the number of Common Units then-held by such
Partner by the total number of Common Units outstanding as of such time. To the extent that the
Partnership issues more than one class or series of Partnership Interests, the interest of such
class or series shall be determined as set forth in this Agreement or any amendment hereto.

16

 

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

     “Preferred Share” means a share of capital stock of the General Partner 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 Common Shares.

     “Preferred Unit” means a fractional portion of the Partnership Interests that the General
Partner hereafter authorizes pursuant to Section 4.2, Section 4.4 or Section 4.6 hereof that has
distribution rights, or rights upon liquidation, winding up and dissolution, that are superior or
prior to the Common Units.

     “Property” or “Properties” means any assets and property of the Partnership such as, but not
limited to, interests in real property and personal property, including fee interests, interests in
ground leases, interests in limited liability companies, joint ventures or partnerships, interests
in mortgages, and Debt instruments as the Partnership may hold from time to time, and “Property”
shall mean any one such asset or property.

     “Proportionate Voting Preferred Stock” means shares of Proportionate Voting Preferred Stock,
$.0001 par value per share, of the General Partner.

     “Qualified Public Offering” means the sale by the General Partner of Common Shares in a bona
fide, firm commitment fully underwritten offering pursuant to an effective registration statement
filed with the United States Securities and Exchange Commission on Form S-1 (or any success form
thereto) under the Securities Act of 1933, as amended, in which the General Partner receives net
proceeds of more than $75 million (i.e. following deduction of underwriting discounts, expenses of
sale and other costs), provided that immediately following the consummation of such offering the
Common Shares sold in such offering are listed for trading on any national securities exchange.

     “Qualified REIT Subsidiary” means a qualified REIT subsidiary of the General Partner 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 (other than the General Partner to the extent
it is also a Limited Partner), (b) an Additional Limited Partner, or (c) a Substituted Limited
Partner succeeding to all or part of a Limited Partner Interest of a Limited Partner or an
Additional Limited Partner.

     “Redemption” has the meaning set forth in Section 8.5.

     “Redemption Cash Amount” has the meaning set forth in Section 8.5.1 and Section 8.5.2, as applicable.

     “Redemption
Common Unit Amount” has the meaning set forth in Section 8.5.1.

17

 

     “Redemption Preferred Unit Amount” has the meaning set forth in Section 8.5.1.

     “Reference Dividend” means the per quarter amount set by the Board of Directors of the General
Partner for the first quarterly dividend on Common Shares declared following the Effective Time;
provided, however, that this amount shall be adjusted in a manner inversely
proportionate to adjustments to the Common Unit Redemption Factor upon the same events as for
Common Unit Redemption Factor.

     “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 6.3.1(viii).

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

     “REIT Consideration” means the aggregate number of Common Shares equal to the product of the
Common Shares Amount multiplied by the Applicable Percentage. No fractional Common Shares shall be
issued as REIT Consideration. In lieu of any fractional shares to which the holder would otherwise
be entitled, the General Partner shall pay cash equal to such fraction multiplied by the Value of a
Common Share. If the General Partner has in effect a rights plan, the REIT Consideration shall
include, in addition to Common Shares, rights under the General Partner’s stockholder rights
agreement unless such rights have expired, terminated or been redeemed or unless the rights have
separated from the Common Shares.

     “REIT Expenses” means (i) costs and expenses relating to the continuity of existence of the
General Partner and any Person (other than the Partnership) in which the General Partner
owns an equity interest, to the extent not prohibited by Section 7.4 (which Persons shall, for
purposes of this definition, be included within the definition of
“General Partner”), including taxes, fees and assessments associated therewith (other than federal,
state or local income taxes imposed upon the General Partner as a result of the General Partner’s
failure to distribute to its shareholders an amount equal to its taxable income), any and all
costs, expenses or fees payable to any trustee or director of the General Partner, (ii) costs and
expenses relating to any offer or registration of securities by the General Partner (the proceeds
of which will be contributed or advanced to the Partnership) and all statements, reports, fees and
expenses incidental thereto, including underwriting discounts and selling commissions applicable to
any such offer of securities, (iii) costs and expenses associated with the preparation and filing
of any periodic reports by the General Partner under federal, state or local laws or regulations,
including filings with the SEC, (iv) costs and expenses associated with compliance by the General
Partner with laws, rules and regulations promulgated by any regulatory body, including the SEC, and
(v) all other operating or administrative costs of the General Partner incurred in the ordinary
course of its business; provided, however, that any of the foregoing expenses that
are determined by the General Partner to be expenses relating to the ownership and operation of, or
for the benefit of, the Partnership shall be treated as reimbursable expenses under Section 7.3.2 hereof rather than as “REIT Expenses.”

18

 

     “REIT Partner” means (a) a Partner, including the General Partner, that is a REIT, (b) any
qualified REIT subsidiary (as defined in Code Section 856(i)(2)) of any Partner that is a REIT and
(c) any Partner that is a qualified REIT subsidiary (as defined in Code Section 856(i)(2)) of a
REIT.

     “REIT Payment” has the meaning set forth in Section 15.12.

     “REIT Requirements” means the requirements for qualification as a REIT under the Code and
Regulations, including the distribution requirements contained in Section 857(a) of the Code.

     “Related Party” means, with respect to any Person, any other Person whose ownership of shares
of the General Partner’s capital stock would be attributed to the first such Person under Code
Section 544 (as modified by Code Section 856(h)(1)(b)).

     “Restricted Common Units” has the meaning set forth in Section 4.6.2.

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

     “SARs” means stock or Unit appreciation rights, whether payable in cash or stock (or Units),
including SARs payable in cash, stock or Units at the election of the recipient.

     “SEC” means the Securities and Exchange Commission, or any successor agency thereto.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, each as may be amended from time to time and any successor statute.

     “Senior Units” has the meaning set forth in Section 4.3.1.

     “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, including the
Advisory Agreement.

     “Specified Redemption Date” means the tenth (10th) Business Day after the receipt by the
General Partner of a Notice of Redemption; provided, however, that a Specified
Redemption Date, as well as the closing of a Redemption or an acquisition of Tendered Units by a
REIT Partner pursuant to Section 8.5.4 hereof on any Specified
Redemption Date, may be deferred, in the General Partner’s sole and absolute discretion, for such
time (but in any event not more than one hundred fifty (150) days in the aggregate) as may
reasonably be required to effect, as applicable, (i) compliance with the Securities Act or other
laws (including, but not limited to, (a) state “blue sky” or other securities laws and (b) the
expiration or termination of the applicable waiting period, if any, under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended), or (ii) satisfaction or waiver of other
commercially reasonable and customary closing conditions and requirements for a transaction of such
nature.

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     “Stock Incentive Plan” means any plan, contract, authorization or arrangement, whether or not
set forth in any formal documents, pursuant to which the following may be received: cash, stock or
Units, restricted stock or Units, phantom stock or Units, stock or Unit options, SARs, stock or
Unit options in tandem with SARs, warrants, convertible securities, performance units and
performance shares, and similar instruments, hereafter adopted by the Partnership or the General
Partner.

     “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.

     “Target Capital Account” means, with respect to any Partner as of any Adjustment Date, an
amount (which may be either a positive or deficit balance) equal to the amount such Partner would
receive as a distribution if all of the Company’s assets as of such Adjustment Date were sold for
cash equal to the Gross Asset Value of such assets, all of the Company’s liabilities were satisfied
to the extent required by their terms, and the net proceeds were distributed on the Adjustment
Date.

     “Taxable REIT Subsidiary” has the meaning set forth in Section 856(l) of the Code.

     “Tax Items” has the meaning set forth in Section 6.4.1.

     “Tenant List” has the meaning set forth in Section 3.4.1.

     “Tendered Units” has the meaning set forth in Section 8.5.

     “Tendering Party” has the meaning set forth in Section 8.5.

     “Terminating Capital Transaction” means any sale or other disposition of all or all but a de
minimis amount 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 all but a de minimis amount of the
assets of the Partnership; except that sales or other dispositions of assets to a Subsidiary will
not be deemed a Terminating Capital Transaction.

     “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 except as otherwise provided in Section 11,
when the term is used in Section 11 hereof, “Transfer” does not
include (a) any Redemption of Partnership Units by the Partnership, or acquisition of Tendered
Units by a REIT Partner, pursuant to Section 8.5 hereof or (b) any
redemption of Partnership Units pursuant to any Partnership Unit Designation. The terms
“Transferred” and “Transferring” have correlative meanings.

20

 

     “Transfer Agent” means, for any class of Partnership Interests, the transfer agent engaged by
the Partnership, or if none is so engaged, the Partnership.

     “Unitholder” means the General Partner or any Holder of Partnership Units.

     “Value” means, on any date of determination with respect to a Common Share, the average of the
daily Market Prices for ten (10) consecutive trading days immediately preceding the date of
determination except that, as provided in Section 4.6.1(d) hereof, the
Market Price for the trading day immediately preceding the date of exercise of a stock option (or
other similar incentive exercisable by the recipient) under any Stock Incentive Plan shall be
substituted for such average of daily Market Prices for purposes of Section 4.6 hereof. For purposes of Section 8.5, the “date of
determination” shall be the date of receipt by the General Partner of a Notice of Redemption or, if
such date is not a Business Day, the immediately preceding Business Day. In the event that the
Common Shares Amount includes Rights (as defined in the definition of “Common Shares Amount”) that
a holder of Common Shares would be entitled to receive, then the Value of such Rights shall be
determined by the General Partner acting in good faith. “Value” means, on any date of
determination with respect to a Common Unit, the Value of a Common Share multiplied by the Common
Unit Redemption Factor.

     “Voting Direction Provision” has the meaning set forth in Section 7.1.1(f).

     2. ORGANIZATIONAL MATTERS.

     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.

     The General Partner hereby continues as the general partner of the Partnership, and POPTLP,
LLC hereby continues as a limited partner of the Partnership. Upon its execution of a counterpart
signature page to this Amended and Restated Agreement, POP Venture, LLC was hereby admitted as a
limited partner of the Partnership.

     2.2 Name. The name of the Partnership is “Pacific Office Properties, L.P.” The
Partnership’s business may be conducted under any other name or names deemed advisable by the
General Partner, including the name of the General Partner or any Affiliate thereof. 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.

     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 2711 Centerville Road, Suite 400,
Wilmington, New Castle County, Delaware 19808, 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 841 Bishop Street, Suite 1700, Honolulu,
Hawaii 96813, or such other place as the General Partner may from time to time

21

 

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.

     2.4 Power of Attorney.

               2.4.1 Each Limited Partner hereby 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:

	 	(a)	 	execute, swear to, acknowledge, deliver, file and record in the
appropriate public offices (a) all certificates, documents and other
instruments (including this Agreement and the Certificate and all amendments,
supplements or restatements thereof) that the General Partner or the Liquidator
deems appropriate or necessary to form, qualify or continue the existence or
qualification of the Partnership as a limited partnership (or a partnership in
which the Limited Partners have limited liability) in the State of Delaware and
in all other jurisdictions in which the Partnership may or plans to conduct
business or own property; (b) all instruments that the General Partner 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 a certificate of
cancellation; (d) all instruments relating to the admission, withdrawal,
removal or substitution of any Partner pursuant to, or other events
described in, Section 11, Section 
12 or Section 13
hereof or the Capital Contribution of any Partner; and (e) all certificates,
documents and other instruments relating to the determination of the rights,
preferences and privileges relating to Partnership Interests; and
	 
	 	(b)	 	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 any
Liquidator, to make, evidence, give, confirm or ratify any vote, consent,
approval, agreement or other action which is made or given by the Partners
hereunder or is consistent with the terms of this Agreement or appropriate or
necessary, in the sole and absolute discretion of the General Partner or any
Liquidator, to effectuate the terms or intent of this Agreement.

Nothing contained herein shall be construed as authorizing the General Partner or any Liquidator to
amend this Agreement except in accordance with Section 14 hereof or
as may be otherwise expressly provided for in this Agreement.

22

 

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

     2.5 Term. Pursuant to Section 17-201 of the Act, the term of the Partnership
commenced on January 28, 2008 and shall continue until the Partnership is cancelled pursuant to the
provisions of Section 13 hereof or as otherwise provided by law.
The existence of the Partnership as a separate legal entity shall continue until cancellation of
the Certificate of Limited Partnership as provided by the Act.

     3. PURPOSE.

     3.1 Purpose and Business. The purpose and nature of the Partnership is (i) to conduct
any business that may be lawfully conducted by a limited partnership organized pursuant to the Act;
provided, however, that such business shall be limited to and conducted in such a
manner as to permit the General Partner at all times to be classified as a REIT and avoid the
imposition of federal income and excise taxes on the General Partner, unless the General Partner
ceases to qualify, or is not qualified, as a REIT for any reason or reasons; (ii) to enter into any
partnership, joint venture, limited liability company or other similar arrangement to engage in any
of the foregoing or the ownership of interests in any entity engaged, directly or indirectly, in
any of the foregoing; and (iii) to do anything necessary or incidental to the foregoing. Nothing
in this Section 3.1 shall prevent the General Partner from terminating its status as a REIT under the
Code at any time (following which the proviso contained in clause of (i) above shall no longer be
applicable).

     The Partnership, by and through the General Partner, on behalf to the Partnership, and without
any further act or vote or approval of any other Person, notwithstanding any other provision of
this Agreement, the Act or applicable law, rule or regulation, may, at any time and from time to
time, enter into and perform under any and all documents, agreements, contracts, commitments,
certificates or financing statements deemed by the General Partner to be reasonably necessary or
desirable in connection with the contributions and related transactions contemplated by the Master
Agreement, including, without limitation, (i) each of the

23

 

assignments of membership interests,
assignments of limited liability company agreements, reaffirmation agreements and modification
agreements described in Exhibit C hereto, and (ii) all documents, agreements, certificates or
financing statements contemplated by or related to any or all of the documents described in Exhibit
C. The foregoing authorization shall not be deemed a restriction on the powers of the Partnership
or the General Partner to enter into other agreements on behalf of the Partnership.

     3.2 Powers. The Partnership and the General Partner on behalf of the Partnership
shall have full power and authority 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,
including, directly or through its ownership interest in other Persons, the power to (i) enter
into, perform and carry out contracts of any kind, (ii) borrow money and issue evidences of
indebtedness, whether or not secured by mortgage, deed of trust, pledge or other lien, (iii)
acquire, own, manage, improve and develop real property, and (iv) lease, sell, transfer and dispose
of real property; provided, however, that the Partnership shall not take, or
refrain from taking, any action which, in the judgment of the General Partner, in its sole and
absolute discretion, (i) could adversely affect the ability of the General Partner to continue to
qualify as a REIT, (ii) could subject the General Partner to any additional taxes under Section 857
or Section 4981 of the Code,(iii) could violate any law or regulation of any governmental body or
agency having jurisdiction over the General Partner, its securities or the Partnership; or (iv)
could violate in any material respects any of the covenants, conditions or restrictions now or
hereafter placed upon or adopted by the General Partner pursuant to any of its agreements or
applicable laws and regulations.

     3.3 Partnership Only for Partnership Purposes. 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 provisions of this Agreement and the Act.

     3.4 Representations and Warranties by the Parties.

               3.4.1 Each Additional Limited Partner and Substituted Limited Partner that is an
individual, as a condition to becoming a Limited Partner, shall, by executing this Agreement
or a counterpart thereof, represent and warrant to the Partnership and 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 3.4.1, such Partner is neither a

24

 

“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) nine and eight tenths percent
(9.8%) or more of the total combined voting power of all classes of stock entitled to vote, or
nine and eight tenths percent (9.8%) or more of the total value of shares of all classes of
stock, of any corporation that is a tenant of any of (A)  the General Partner or any Qualified
REIT Subsidiary, (B) the Partnership or (C) any partnership, venture or limited liability
company of which the General Partner or any Qualified REIT Subsidiary or the Partnership is a
member, as reflected on the then current tenant list to be maintained by the General Partner
(the “Tenant List”) or (b) an interest of nine and eight tenths percent (9.8%) or more in the
assets or net profits of any tenant of any of (A) the General Partner or any Qualified REIT
Subsidiary, (B) the Partnership or (C) any partnership, venture, or limited liability company
of which the General Partner or any Qualified REIT Subsidiary or the Partnership is a member,
as reflected on the Tenant List 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 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
the withholding provisions of the Code applicable to a “foreign person” or “foreign partner,”
as applicable, and hereby authorizes the General Partner to withhold any and all amounts it is
required to withhold pursuant to the Code with respect to such “foreign person” or “foreign
partner,” as applicable, 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 forms reasonably determined to be required by the General Partner in
connection therewith.

               3.4.2 Each Additional Limited Partner and Substituted Limited Partner that is not an
individual, as a condition to becoming an Additional Limited Partner or a Substituted Limited
Partner, respectively, shall, by executing this Agreement or a counterpart thereof, represent
and warrant to the Partnership and each other Partner(s) that (i) all transactions
contemplated by this Agreement to be performed by it have been duly authorized by all
necessary action, including that of its general partner(s), committee(s), trustee(s),
beneficiaries, directors and/or shareholder(s), as the case may be, as required, (ii) the
consummation of such transactions shall not result in a breach or violation of, or a default
under, its partnership or operating agreement, trust agreement, articles, charter, bylaws or
similar organizational document, as the case may be, any material agreement by which such
Partner or any of such Partner’s properties or any of its partners, members, beneficiaries,
trustees or shareholders, as the case may be, is or are bound, or any statute, regulation,
order or other law to which such Partner or any of its partners, members, trustees,
beneficiaries or shareholders, as the case may be, is or are subject, (iii) subject to the
last sentence of this Section 3.4.2, 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),
(iv) such Partner does not own, directly or indirectly, (a) except as otherwise disclosed by
the Partner in writing to the Partnership, nine and eight tenths percent (9.8%) or more of the
total combined voting power of all classes of stock entitled to

25

 

vote, or nine and eight tenths
percent (9.8%) or more of the total value of shares of all classes of stock, of any
corporation that is a tenant of any of (A) the General Partner or any Qualified REIT
Subsidiary, (B) the Partnership or (C) any partnership, venture or limited liability company
of which the General Partner, any Qualified REIT Subsidiary or the Partnership is a member, as
reflected on the Tenant List or (b) except as otherwise identified by the Partner in writing
to the Partnership, an interest of nine and eight tenths percent (9.8%) or more in the assets
or net profits of any tenant of any of (A) the General Partner or any Qualified REIT
Subsidiary, (B) the Partnership or (C) any partnership, venture or limited liability company
for which the General Partner, any Qualified REIT Subsidiary or the Partnership is a member,
as reflected on the Tenant List and (v) 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 (iii) 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 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
the withholding provisions of the Code applicable to a “foreign person” or “foreign partner,”
as applicable, and hereby authorizes the General Partner to withhold any and all amounts it is
required to withhold pursuant to the Code with respect to such “foreign person” or “foreign
partner,” as applicable, 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 forms reasonably determined to be required by the General
Partner in connection therewith.

               3.4.3 Each Partner (including each Additional Limited Partner or Substituted Limited
Partner as a condition to becoming a Limited Partner) represents, warrants and agrees that it
has acquired 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 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.

               3.4.4
The representations and warranties contained in Sections 3.4.1, 3.4.2 and 3.4.3 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.

               3.4.5 Each Partner (including each Additional Limited Partner or Substituted Limited
Partner as a condition to becoming a Limited Partner) hereby acknowledges that no
representations as to potential profit, cash flows, funds from

26

 

operations or yield, if any, in
respect of the Partnership or the General Partner have been made by the Partnership, any
Partner or any employee or representative or Affiliate of any Partner to such Partner, and
that projections and any other information, including 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.

     4. CAPITAL ACCOUNTS; CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS.

     4.1 Capital Accounts. A separate capital account shall be maintained for each Partner
in accordance with the provisions of Regulations Section 1.704-1. No Partner shall be entitled to
receive interest on its Capital Account or any portion thereof. Subject to Section 6
below, each Partner’s Capital Account shall be equal to:

     (i) The amount of cash or the Gross Asset Value of property contributed by such
Partner to the Partnership (net of liabilities encumbering the contributed property
that the Partnership is considered to assume or take subject to under Section 752 of
the Code); plus

     (ii) The amount of any Profits or other items of taxable income or gain, or tax
exempt income or gain, and items in the nature of income or gain allocated to the
Partner pursuant to Section 6; less

     (iii) The amount of any Losses and items in the nature of Loss or deduction
allocated to the Partner pursuant to Section 6; and
less

     (iv) All distributions of cash of other property distributed to the Partner.

     4.2 General Partner Interests. At or about the Effective Time, the General Partner
shall make a Capital Contribution to the Partnership in exchange for Partnership Units as
contemplated by the Master Agreement.

     4.3 Class A Convertible Preferred Units.

               4.3.1 Rank. The Class A Convertible Preferred Units shall rank in a Liquidating
Event (a) prior to the Common Units; (b) prior to any class or series of Junior Units
hereafter created; (c) pari passu with any class or series of Partnership Units (including
Preferred Units) currently existing or hereafter created specifically ranking on parity with
the Class A Convertible Preferred Units (collectively, “Pari Passu Units”), and (d) junior to
any class or series of Partnership Units (including Preferred Units) hereafter created
specifically ranking senior to the Class A Convertible Preferred Units (collectively, “Senior
Units”).

               4.3.2 Cumulative Distributions. Subject to the rights of any applicable Senior
Units, each Class A Convertible Preferred Unit shall be entitled to distributions at an annual
rate of 2.0% of the Class A Convertible Preferred Unit

27

 

Liquidation Preference Amount from the date of issuance of such Class A Convertible
Preferred Unit (adjusted for any stock split, stock dividend or distribution,
reclassification, reorganization, consolidation or similar change or event) (collectively, the
“Class A Preferred Distributions”). Such distributions shall accumulate (accrue) from day to
day, and shall be paid in cash in arrears on the last day of each March, June, September and
December, or if any such day is not a Business Day, the immediately preceding Business Day,
beginning June 30, 2008. All Class A Preferred Distributions under this Section 4.3.2
shall be cumulative so that if such Distributions in respect of any distribution period shall
not have been paid on or declared and set apart for all Class A Convertible Preferred Units at
the time outstanding, the deficiency shall be fully paid on or declared and set apart for such
Class A Convertible Preferred Units after the payment of any amount necessary to enable the
General Partner to pay REIT Expenses, but before the Partnership makes any other distribution
(as hereinafter defined) to the holders of any other Partnership Units (other than Senior
Units and Pari Passu Units (provided Class A Preferred Distributions shall be paid
simultaneously with distributions to Pari Passu Units pro rata in proportion to the ratio that
the aggregate accumulated and unpaid Class A Preferred Distributions bears to the aggregate
accumulated and unpaid distributions owing to holders of the Pari Passu Units)).

               4.3.3 Liquidation Preference. Subject to the rights of any applicable Senior
Units, in the event of (i) a Liquidating Event, or (ii) the merger, consolidation,
reorganization or other combination of the Partnership with or into another entity (any such
event, an “Optional Liquidation Preference Event”), the holders of Class A Convertible
Preferred Units shall be entitled to receive, in exchange for any Class A Convertible
Preferred Unit, out of the assets of the Partnership, an amount per Class A Convertible
Preferred Unit equal to the Class A Convertible Preferred Unit Liquidation Preference Amount
before any payment is made, or any assets are distributed, to the holders of Common Units or
Junior Units but following any payment to be made or any assets to be distributed to any
Senior Units and concurrent with any payment to be made or any assets to be distributed to
Pari Passu Units. With respect to an Optional Liquidation Preference Event, each holder of
Class A Convertible Preferred Units will have the option, in such holder’s sole discretion, to
exercise its right to receive, in exchange for any Class A Convertible Preferred Unit, the
Class A Preferred Liquidation Preference plus all declared but unpaid Class A Preferred
Distributions by delivering written notice to the Partnership of such election. If, in the
event of a Liquidating Event or an Optional Liquidation Preference Event, the assets of the
Partnership are insufficient to pay the total aggregate Class A Convertible Preferred Unit
Liquidation Preference Amount plus any accumulated and declared and unpaid Class A Preferred
Distributions (in the case of an Optional Liquidation Preference Event, to those electing
holders) and aggregate amounts, if any, to which the Pari Passu Units would be entitled upon
such Liquidating Event, the holders of such Class A Convertible Preferred Units shall share in
any such distribution pro rata with the holders of all Pari Passu Units outstanding in
proportion to the full amounts to which they would otherwise be respectively entitled (i.e.,
the amount to be distributed to the holders of the Class A Convertible Preferred Units shall
be equal to the product of (i) the amount available for distribution, multiplied by (ii) a
fraction, the numerator of which is the aggregate Class A Convertible Preferred Unit
Liquidation Preference Amount plus any accumulated and declared and unpaid Class A Preferred
Distributions (in the case of an Optional Liquidation

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Preference Event, the aggregate Class A Convertible Preferred Unit Liquidation Preference
Amount plus any accumulated and declared and unpaid Class A Preferred Distributions of the
electing holders) and the denominator of which is the sum of the aggregate Class A Convertible
Preferred Unit Liquidation Preference Amounts plus any accumulated and declared and unpaid
Class A Preferred Distributions (in the case of an Optional Liquidation Preference Event, the
aggregate Class A Convertible Preferred Unit Liquidation Preference Amount of the electing
holders plus any accumulated and declared and unpaid Class A Preferred Distributions of such
holders) and the aggregate amounts, if any, to which the Pari Passu Units would be entitled
upon such Liquidating Event). All amounts distributed to any holder of Class A Convertible
Preferred Units shall be in cash to the extent cash is available, unless otherwise previously
consented to in writing by such holder.

               4.3.4 Optional Conversion. Commencing on the Class A Unlock Date, each Class A
Convertible Preferred Unit shall be convertible, at the option of the holder thereof, at any
time and from time to time, and without the payment of additional consideration by the holder
thereof, into the number of fully paid and nonassessable Common Units equal to the Class A
Convertible Preferred Unit Conversion Factor.

               4.3.5 Mandatory Conversion. The Partnership may require any holder of Class A
Convertible Preferred Units to convert each of his, her or its Class A Convertible Preferred
Units into the number of fully paid and nonassessable Common Units equal to the Class A
Convertible Preferred Unit Conversion Factor commencing on the fourth anniversary of the
issuance of the Class A Convertible Preferred Units in the event that at any time (A) (i) the
product of (a) the Common Unit Redemption Factor multiplied by (b) the Market Price of the
Common Shares is greater than (ii) one hundred twenty-five percent (125%) of the Class A
Conversion Price during twenty (20) days out of any thirty (30) consecutive trading days, and
(B) a Qualified Public Offering has been consummated.

               4.3.6 No Fractional Units. No fractional Common Units shall be issued upon
conversion of the Class A Convertible Preferred Unit. In lieu of any fractional Common Units
to which the holder would otherwise be entitled, the Partnership shall pay cash equal to such
fraction multiplied by the Class A Conversion Price. Whether or not fractional Common Units
would be issuable upon such conversion shall be determined on the basis of the total number of
Class A Convertible Preferred Units the holder is at the time converting into Common Units and
the aggregate number of Common Units issuable upon such conversion at any time.

               4.3.7 Notice of Conversion (Optional). In order for a holder of Class A
Convertible Preferred Units to voluntarily convert shares of Class A Convertible Preferred
Units into Common Units, such holder shall deliver to the Partnership’s Transfer Agent written
notice (“Notice of Conversion”) that such holder elects to convert all or any number of the
Class A Convertible Preferred Units held by such holder and, if applicable, any event on which
such conversion is contingent. A Notice of Conversion shall state such holder’s name or the
names of the nominees in which such holder wishes the Common Units to be issued. The close of
business on the date of receipt by the Transfer Agent of such Notice of Conversion shall be
the time of conversion (the “Conversion Time”), and the Common Units issuable upon conversion
of the Class A Convertible Preferred Units

29

 

indicated in the Notice of Conversion shall be deemed to be outstanding of record as of
such date. As soon as reasonably practicable following the Conversion Time and in any event
within three business days following the Conversion Time, the holder of Class A Convertible
Preferred Units shall surrender the certificate or certificates, if any, for such Class A
Convertible Preferred Units (or, if such registered holder alleges that a certificate has been
lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to
the Partnership to indemnify the Partnership against any claim that may be made against the
Partnership on account of the alleged loss, theft or destruction of such certificate), at the
office of the Transfer Agent. If required by the Partnership, certificates surrendered for
conversion shall be endorsed or accompanied by a written instrument or written instruments of
transfer, in form satisfactory to the Partnership, duly executed by the registered holder or
such holder’s attorney duly authorized in writing. If the Common Units are to be
certificated, the Partnership shall, as soon as practicable after the Conversion Time, and in
no event later than the third business day following the Conversion Time, issue and deliver or
cause its Transfer Agent to issue and deliver to the holder of Class A Convertible Preferred
Units subject to a Notice of Conversion, or to such holder’s nominees, a certificate or
certificates for the number of full Common Units issuable upon such conversion in accordance
with the provisions hereof and, if applicable, a certificate for the number (if any) of the
Class A Convertible Preferred Units represented by a surrendered certificate that were not
converted into Common Units, and cash as provided in Section 4.3.6 above in lieu of any
fraction of a Common Unit otherwise issuable upon such conversion and payment of any
accumulated or declared but unpaid distributions on the Class A Convertible Preferred Units
converted.

               4.3.8 Notice of Conversion (Mandatory). In the event the Partnership exercises
its right under Section 4.3.5 to require any holder of Class A Convertible Preferred Units to
convert each of his, her or its Class A Convertible Preferred Units into Common Units, then
the Partnership may provide by notice to such Limited Partner that the Partnership has elected
to exercise its rights under Section 4.3.5 and may treat such Limited Partner as a party who
has delivered a Notice of Conversion pursuant to Section 4.3.7 above. Such notice given by
the Partnership to a Limited Partner pursuant to this Section 4.3.8 shall be treated as if it
were a Notice of Conversion delivered to the General Partner by such Limited Partner. For
purposes of this Section 4.3.8, other than with respect to the delivery of the Notice of
Conversion (which is dealt with in the preceding two sentences), the provisions of
Section 4.3.7 shall apply, mutatis mutandis, with the “Conversion Time” being the date that
the Partnership issues a Notice of Conversion.

          4.4 Issuances of Additional Partnership Interests.

               4.4.1 General. 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 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.
Subject to other limitations in this Agreement, but without limiting the

30

 

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 General Partner and the Partnership, (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,
(iv) in connection with any acquisition of real property or other assets and (v) that are
Senior Units, Pari Passu Units or Junior Units. Subject to the Act, 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
this Agreement or 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.

               4.4.2 Issuances to the General Partner. No additional Partnership Units shall be
issued to the General Partner 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) Common Units
issued in connection with an issuance of Common Shares, or (y) Partnership Units (other than
Common Units) issued in connection with an issuance, conversion or exercise of Preferred
Shares, Other Securities or other interests in the General Partner (other than Common Shares),
which Preferred Shares, Other 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 General Partner contributes or otherwise causes to be
transferred to the Partnership the cash proceeds or other consideration received in connection
with the issuance of such Common Shares, Preferred Shares, Other Securities or other interests
in the General Partner, (iii) the additional Partnership Units are issued upon the conversion,
redemption or exchange of Debt, Partnership Units or other securities issued by the
Partnership, or (iv) the additional Partnership Units are issued pursuant to Section 4.5.2 or
Section 4.6.

               4.4.3 No Preemptive Rights. No Person, including any Partner or Assignee, shall
have any preemptive, preferential, participation or similar right or rights to subscribe for
or acquire any Partnership Interest.

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          4.5 Additional Funds and Capital Contributions.

               4.5.1 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 4.5 without the approval of any Limited Partners.

               4.5.2 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 4.4 above) in consideration
therefor and the Percentage Interests of the General Partner and the Limited Partners shall be
adjusted appropriately to reflect the issuance of such additional Partnership Units.

               4.5.3 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 in writing prior thereto).

               4.5.4 General Partner Loans. The General Partner may provide Additional Funds by
causing the Partnership to incur Debt to the General Partner (each, a “General Partner Loan")
if (i) such Debt is, to the extent permitted by law, on substantially the same terms and
conditions (including interest rate, repayment schedule, and conversion, redemption,
repurchase and exchange rights) as Funding Debt incurred by the General Partner, the net
proceeds of which are lent 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 (unless the Partner otherwise agrees in
writing prior thereto).

               4.5.5 Issuance of Securities by the General Partner.

	 	(a)	 	The General Partner shall contribute the cash proceeds or other
consideration received from any issuances from and after the date hereof of
Common Shares, Preferred Shares, Junior Shares or Other Securities, as the case
may be, and from the exercise of the rights contained in any such additional
Other Securities, to the Partnership in exchange for (x) in the case of an
issuance of Common Shares, Common Units, or (y) in the case

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	 	 	 	of an issuance of Preferred Shares, Junior Shares or Other 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 Shares, Junior
Shares or Other Securities.
	 
	 	(b)	 	The General Partner shall not issue any additional Common
Shares, Preferred Shares, Junior Shares or Other Securities unless the General
Partner contributes the cash proceeds or other consideration received from the
issuance of such additional Common Shares, Preferred Shares, Junior Shares or
Other Securities, as the case may be, and from the exercise of the rights
contained in any such additional Other Securities, to the Partnership in
exchange for (x) in the case of an issuance of Common Shares, Common Units, or
(y) in the case of an issuance of Preferred Shares, Junior Shares or Other
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 Shares,
Junior Shares or Other Securities; provided, however, that
notwithstanding the foregoing, the General Partner may issue Common Shares,
Preferred Shares, Junior Shares or Other Securities (a) pursuant to Section 4.6
or Section 8.5.4 hereof, (b) pursuant to a dividend or distribution (including
any stock split) of Common Shares, Preferred Shares, Junior Shares or Other
Securities to all of the holders of Common Shares, Preferred Shares, Junior
Shares or Other Securities, as the case may be, (c) upon a conversion,
redemption or exchange of Preferred Shares, (d) upon a conversion of Junior
Shares into Common Shares, (e) upon a conversion, redemption, exchange or
exercise of Other Securities, or (f) in connection with an acquisition of a
property or other asset to be owned, directly or indirectly, by the General
Partner if the General Partner determines that such acquisition is in the best
interests of the Partnership. In the event of any issuance of additional
Common Shares, Preferred Shares, Junior Shares or Other Securities by the
General Partner, the Partnership shall pay the General Partner’s expenses
associated with such issuance, including any underwriting discounts or
commissions (it being understood that payment of some or all of such expenses
may be made by the General Partner on behalf of the Partnership out of the
gross proceeds of such issuance prior to the contribution of such proceeds by
the General Partner).

          4.6 Stock Incentive Plans.

               4.6.1 Options Granted to Partnership Employees and Independent Directors. If at
any time or from time to time, in connection with a Stock Incentive Plan, a stock option (or
other similar incentive exercisable by the recipient) granted to a Partnership Employee or an
Independent Director is duly exercised:

33

 

	 	(a)	 	the General Partner shall, as soon as practicable after such
exercise, make a Capital Contribution to the Partnership in an amount equal to
the exercise price paid to the General Partner by such exercising party in
connection with the exercise of such stock option (or other similar incentive
exercisable by the recipient);
	 
	 	(b)	 	on the date that the General Partner makes a capital
contribution pursuant to Section 4.6.1(a) hereof, the General Partner shall be
deemed to have contributed to the Partnership as a Capital Contribution, in
consideration of an additional Limited Partner Interest (expressed in and as
additional Common Units), an amount equal to the Value of a Common Share as of
the date of exercise multiplied by the number of Common Shares then being
issued in connection with the exercise of such stock option (or other similar
incentive exercisable by the recipient); and
	 
	 	(c)	 	An equitable Percentage Interest adjustment shall be made in
which the General Partner shall be treated as having made a cash contribution
equal to the amount described in Section 4.6.1(b) hereof.
	 
	 	(d)	 	For purposes of this Section 4.6, in determining the Value of a
Common Share, only the trading date immediately preceding the exercise of the
relevant stock option (or other similar incentive exercisable by the recipient)
under the Stock Incentive Plan shall be considered.

               4.6.2 Restricted Units. In accordance with Section 4.5.5, to the extent the
General Partner issues shares of restricted common stock or restricted stock units pursuant to
a Stock Incentive Plan, the Partnership shall issue to the General Partner an equal number of
Common Units that are subject to a similar vesting schedule, forfeiture provisions and other
terms and conditions that correspond to those of the restricted common stock (“Restricted
Common Units”). The terms of such Restricted Common Units shall comply in all respects with
the elective safe harbor provided in proposed Regulations Section 1.83-3(l) and the proposed
revenue procedure issued as part of IRS Notice 2005-43, as each of the same may be revised and
finalized; provided, however, that such Restricted Common Units are issued
after the adoption of such Regulation and revenue procedure as final. The Partnership is
authorized and directed to elect such safe harbor, and the Partnership and each of its
partners (including the General Partner, as holder of such Restricted Common Units, and any
other holder of Partnership Units transferred in connection with the performance of services)
agrees to comply with all requirements of the safe harbor with respect to all Restricted
Common Units (or other Partnership Units transferred in connection with the performance of
services) while this election remains effective; provided, however, that such
Restricted Common Units are issued after the adoption of such Regulation and revenue procedure
as final.

               4.6.3 Future Stock Incentive Plans. Nothing in this Agreement shall be construed
or applied to preclude or restrain the General Partner from adopting, modifying or terminating
stock incentive plans for the benefit of employees, directors or other business associates of
the General Partner, the Partnership or any of their Affiliates.

34

 

In the event that any such plan is adopted, modified or terminated by the General
Partner, amendments to this Section 4.6 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.

          4.7 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.

          4.8 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.

          4.9 Not Publicly Traded. The General Partner, on behalf of the Partnership, shall use
commercially reasonable 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 Section 7704(b) of the Code.

          5. DISTRIBUTIONS.

          5.1 Requirement and Characterization of Distributions.

               5.1.1 General. Without limitation of any rights of accumulation of any
Partnership Unit, the General Partner shall have the exclusive right and authority to declare
and cause the Partnership to make distributions as and when the General Partner deems
appropriate or desirable in its sole discretion. Notwithstanding anything to the contrary
contained herein, in no event may a Partner receive a distribution with respect to a
Partnership Unit for a quarter or shorter period if such Partner is entitled to receive a
distribution for such quarter or shorter period with respect to a Share for which such
Partnership Unit has been redeemed or exchanged. Except as otherwise expressly provided for
herein (including in Section 4.3.2), no Partnership Unit shall be entitled to a distribution
in preference to any other Partnership Unit. For so long as the General Partner elects to
qualify as a REIT, the General Partner shall make such reasonable efforts, as determined by it
in its sole and absolute discretion and consistent with the qualification of the General
Partner as a REIT, to make distributions to the Partners such that the General Partner will
receive amounts sufficient to enable the General Partner to pay shareholder dividends that
will (1) satisfy the REIT Requirements and (2) avoid any federal income or excise tax
liability for the General Partner.

35

 

               5.1.2 Method. After payment to the General Partner of any amount necessary to
enable the General Partner to pay REIT Expenses, when, as and if declared by the General
Partner, the Partnership shall make distributions to the Partners:

	 	(i)	 	first, to Holders of any Partnership Interests that are entitled to any
preference in distribution (including Class A Convertible Preferred Units), and within
each such class of Partnership Interests, pro rata among the Holders thereof in
proportion to each Holder’s respective ownership interest of such class of Partnership
Interest), in the respective order and amount of such preferences; and
	 
	 	(ii)	 	second, to Holders of any Partnership Interests that are not entitled to any
preference in distribution (including Common Units and Junior Units), in accordance
with the rights of such class of Partnership Interests (pro rata to each such Holder
in accordance with the ratio of (a) the amount to be distributed to such Holder
pursuant to this Section to (b) the aggregate amount to be distributed to all such
Holders pursuant to this Section).

          5.2 Distributions in Kind. No Unitholder shall have the right to demand any property
other than cash in respect of any distribution. The General Partner may determine, in its sole and
absolute discretion, to make a distribution in kind of Partnership assets to the Unitholders, and
such assets shall be distributed in such a fashion as to ensure that the fair market value of such
assets is distributed and allocated in accordance with Sections 5, 6 and 10 hereof.

          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 Unitholder shall be treated as amounts paid or distributed to such Unitholder
pursuant to Section 5.1 hereof for all purposes under this Agreement.

          5.4 Distributions Upon Liquidation. Notwithstanding the other provisions of this
Section 5, 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 Unitholders in accordance with Section 13.2 hereof.

          5.5 Distributions to Reflect Issuance of Additional Partnership Units. Subject to
Section 14.2.4, in the event that the Partnership issues additional Partnership Units pursuant to
the provisions of Section 4 hereof, the General Partner is hereby authorized to make such revisions
to this Section 5 as it determines are necessary or desirable to reflect the issuance of such
additional Partnership Units consistent with their Partnership Unit Designation, including making
preferential distributions to certain classes of Partnership Units.

          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 Unitholder 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.

36

 

          6. ALLOCATIONS.

          6.1 Timing and Amount of Allocations of Income and Loss. Income and Loss of the
Partnership shall be determined and allocated with respect to each Fiscal Year of the Partnership
as of the end of each such year. Except as otherwise provided in this Section 6, an allocation to
a Unitholder of a share of Income or 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 Income or
Loss.

          6.2 General Allocations.

               6.2.1 Allocation of Profits and Losses for Capital Account Purposes. After
giving effect to the special allocations set forth in Sections 6.3 and 6.4, Profits and Losses
for each Fiscal Year shall be allocated among the Partners so as to reduce, proportionately,
in the case of any Profits, the difference between their respective Target Capital Accounts
and Partially Adjusted Capital Accounts for such Fiscal Year and, in the case of Losses, the
difference between their respective Partially Adjusted Capital Accounts and Target Capital
Accounts for such Fiscal Year. No portion of Profits or Losses for any Fiscal Year shall be
allocated to a Partner, in the case of Profits, whose Partially Adjusted Capital Account is
greater than its Target Capital Account or, in the case of Losses, whose Target Capital
Account is greater than or equal to its Partially Adjusted Capital Account for such Fiscal
Year.

               6.2.2 Limitation on Loss Allocations. To the extent any Losses allocated to a
Partner under Section 6.2.1 would cause such Partner to have an Adjusted Capital Account
Deficit, such Losses shall not be allocated to such Partner and instead shall be allocated to
the other Partner to the maximum extent that such losses may be allocated to such other
Partner without causing such other Partner to have an Adjusted Capital Account Deficit.
Thereafter, any further Losses for the Fiscal Year shall be allocated in accordance with the
Partners’ Percentage Interests.

          6.3 Additional Allocation Provisions. Notwithstanding the foregoing provisions of
this Section 6:

               6.3.1 Regulatory Allocations.

     (i) Minimum Gain Chargeback. Except as otherwise provided in Regulations
Section 1.704-2(f), notwithstanding any other provision of this Section 6, if there
is a net decrease in Partnership Minimum Gain during any Fiscal Year, each Holder of
Partnership Units 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 6.3.1(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.

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     (ii) Partner Nonrecourse Debt Minimum Gain Chargeback. Except as otherwise
provided in Regulations Section 1.704-2(i)(4) or in Section 6.3.1(i) hereof, if
there is a net decrease in Partner Nonrecourse Debt Minimum Gain attributable to a
Partner Nonrecourse Debt during any Fiscal Year, each Holder of Partnership Units
who has a share of the Partner Nonrecourse Debt 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 Nonrecourse Debt 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 6.3.1(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 Fiscal Year shall be specially allocated to the
Holders of Partnership Units in accordance with their Partnership Units. Any
Partner Nonrecourse Deductions for any Fiscal Year shall be specially allocated to
the Holder(s) who bears the economic risk of loss with respect to the Partner
Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable, in
accordance with Regulations Section 1.704-2(i).

     (iv) Qualified Income Offset. If any Holder of Partnership Units 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, provided that an allocation pursuant to this Section 6.3.1(iv) shall be
made if and only to the extent that such Holder would have an Adjusted Capital
Account Deficit after all other allocations provided in this Section 6 have been
tentatively made as if this Section 6.3.1(iv) were not in the Agreement. It is
intended that this Section 6.3.1(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 of Partnership Units
has an Adjusted Capital Account Deficit at the end of any Fiscal 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, provided
that an allocation pursuant to this Section 6.3.1(v) shall be made if and only to
the extent that such Holder would have a deficit Capital

38

 

Account in excess of such sum after all other allocations provided in this
Section 6 have been tentatively made as if this Section 6.3.1(v) were not in the
Agreement.

     (vi) Limitation on Allocation of Loss. To the extent that any allocation of
Loss would cause or increase an Adjusted Capital Account Deficit as to any Holder of
Partnership Units, such allocation of Loss shall be reallocated among the other
Holders of Partnership Units in accordance with their respective Partnership Units,
subject to the limitations of this Section 6.3.1(vi).

     (vii) 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 of Partnership Units 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 applicable Holders in accordance with the aforesaid
Regulations.

     (viii) Curative Allocations. The allocations set forth in Sections 6.3.1(i),
(ii), (iii), (iv), (v), (vi) and (vii) hereof (the “Regulatory Allocations”) are
intended to comply with certain regulatory requirements, including the requirements
of Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding the provisions of
Section 6.1 hereof, the Regulatory Allocations shall be taken into account in
allocating other items of income, gain, loss and deduction among the Holders of
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.

               6.3.2 Special Allocations Upon Liquidation. Notwithstanding any provision in
this Section 6 to the contrary, Income or Loss realized in connection with a Terminating
Capital Transaction or for any period thereafter (and, if necessary, constituent items of
income, gain, loss and deduction) shall be specially allocated among the Partners as required
so as to cause liquidating distributions pursuant to Section 13.2.1 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.

               6.3.3 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)(3)(b). The
Partnership shall allocate “excess nonrecourse liabilities” of the Partnership under any
method approved under Regulations Section 1.752-3(a)(3) as

39

 

chosen by the General Partner. For purposes of determining a Holder’s proportional share
of the “excess nonrecourse liabilities” of the Partnership within the meaning of Regulations
Section 1.752-3(a)(3), each Holder’s interest in Partnership profits shall be equal to such
Holder’s share of Partnership Units.

          6.4 Tax Allocations.

               6.4.1 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 Common 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.

               6.4.2 Allocations Respecting Section 704(c) Revaluations. Notwithstanding
Section 6.4.1 hereof, Tax Items with respect to Property whose Gross Asset Value varies from
its adjusted tax basis in the hands of the Partnership 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 permitted method chosen by the General Partner in its sole
discretion.

          7. MANAGEMENT AND OPERATIONS OF BUSINESS.

          7.1 Management.

               7.1.1 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 the General Partner under
any other provision of this Agreement, the General Partner, subject to the other provisions
hereof, 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:

	 	(a)	 	the making of any expenditures, the lending or borrowing of
money (including 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 General Partner (so long as the General Partner
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 sufficient to permit the General
Partner to maintain or restore REIT status or otherwise to satisfy the REIT
Requirements), the assumption or guarantee of, or

40

 

	 	 	 	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;
	 
	 	(b)	 	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;
	 
	 	(c)	 	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, subject to
Section 8.6, the merger, consolidation, reorganization or other combination of
the Partnership with or into another entity;
	 
	 	(d)	 	the mortgage, pledge, encumbrance or hypothecation of any
assets of the Partnership, the use of the assets of the Partnership (including
cash on hand) for any purpose consistent with the terms of this Agreement and
on any terms that it sees fit, including the financing of the operations and
activities of the General Partner, the Partnership or any of the Partnership’s
Subsidiaries, the lending of funds to other Persons (including 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;
	 
	 	(e)	 	the management, operation, leasing, landscaping, repair,
alteration, demolition, replacement or improvement of any Property, including
any Contributed Property, or other asset of the Partnership or any Subsidiary,
whether pursuant to a Services Agreement or otherwise;
	 
	 	(f)	 	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, the Advisor’s other professional advisors and other agents and the
payment of their expenses and compensation out of the Partnership’s assets;
provided, however, that the Advisory Agreement must contain a
provision (the “Voting Direction Provision”) that requires the Advisor to vote
its shares of Proportionate Voting Preferred Stock in proportion to the votes
(the “LP Direction Votes”) that the Advisor receives from the holders of
Partnership Units (other than the General Partner), that are issued pursuant to
the Master Agreement or pursuant to

41

 

	 	 	 	any option delivered pursuant thereto or in connection with the consummation
of the transactions contemplated thereby. The Advisor shall not cast any
votes with respect to the share of Proportionate Voting Preferred Stock
unless it receives LP Direction Votes with respect thereto.
	 
	 	(g)	 	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;
	 
	 	(h)	 	the maintenance of such insurance for the benefit of the
Partnership and the Partners as it deems necessary or appropriate, including
(i) casualty, liability and other insurance on the Properties and
(ii) liability insurance for the Indemnitees hereunder;
	 
	 	(i)	 	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 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);
	 
	 	(j)	 	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;
	 
	 	(k)	 	the undertaking of any action in connection with the
Partnership’s direct or indirect investment in any Subsidiary or any other
Person (including the contribution of Property or contribution or loan of funds
by the Partnership to such Persons);
	 
	 	(l)	 	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 method of valuation as it may reasonably adopt
as long as such method is otherwise consistent with the requirements of this
Agreement;

42

 

	 	(m)	 	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;
	 
	 	(n)	 	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;
	 
	 	(o)	 	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;
	 
	 	(p)	 	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;
	 
	 	(q)	 	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;
	 
	 	(r)	 	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 Section 4 hereof;
	 
	 	(s)	 	the selection and dismissal of Partnership Employees (including
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 Partnership Employee the authority to conduct the business of the
Partnership in accordance with the terms of this Agreement; and
	 
	 	(t)	 	an election to dissolve the Partnership pursuant to
Section 13.1.2 hereof.

               7.1.2 Except as provided in Section 14.2 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. To the
fullest extent permitted by law, the execution, delivery or performance by the General Partner
or the Partnership of any agreement authorized or

43

 

permitted under this Agreement shall not constitute a breach by the General Partner of
any duty that the General Partner may owe the Partnership or the Limited Partners or any other
Persons under this Agreement or of any duty stated or implied by law or equity.

               7.1.3 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.

               7.1.4 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 by it. The General Partner and the
Partnership shall not have 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.

               7.1.5 The General Partner may not take any action in contravention of this Agreement,
including, without limitation:

	 	(a)	 	taking any action that would make it impossible to carry on the
ordinary business of the Partnership, except as otherwise provided in this
Agreement;
	 
	 	(b)	 	possessing Property, or assigning any rights in specific
Property, for other than a Partnership purpose except as otherwise provided in
this Agreement, including Section 7.9;
	 
	 	(c)	 	admitting a Person as a Partner, except as otherwise provided
in this Agreement;
	 
	 	(d)	 	performing any act that would subject a Limited Partner to
liability as a general partner in any jurisdiction or any other liability
except as otherwise provided in this Agreement or under the Act; or
	 
	 	(e)	 	entering into any contract, mortgage, loan or other agreement
that prohibits or restricts the ability of (a) the General Partner or the
Partnership from satisfying its obligations under Section 8.5 hereof in full or
(b) a Limited Partner from exercising its rights under Section 8.5 hereof to
effect a Redemption in full, except, in either case, with the written consent
of such Limited Partner adversely affected by the prohibition or restriction.

        7.2 Certificate of Limited Partnership. The General Partner has executed, delivered
and filed the Certificate of Limited Partnership, the Amended and Restated Certificate of Limited
Partnership, and the Second Amended and Restated Certificate of Limited Partnership with the
Secretary of State of the State of Delaware. To the extent that such action is determined by the
General Partner to be reasonable and necessary or appropriate, the General Partner shall

44

 

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 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 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.

          7.3 Reimbursement of the General Partner.

               7.3.1 The General Partner shall not be compensated for its services as general partner of
the Partnership except as provided in this Agreement (including the provisions of Sections 5
and 6 hereof regarding distributions, payments and allocations to which it may be entitled in
its capacity as the General Partner).

               7.3.2 The Partnership shall be liable for, and shall reimburse the General Partner on a
monthly basis, or such other basis as the General Partner may determine in its sole and
absolute discretion, for all sums expended and all expenses incurred in connection with the
Partnership’s business, including (i) expenses relating to the ownership of interests in and
management and operation of, or for the benefit of, the Partnership, (ii) compensation of
officers and employees, including payments under compensation plans of the General Partner
that may provide for stock units, or phantom stock, pursuant to which employees of the General
Partner will receive payments based upon dividends on or the value of Common Shares,
(iii) director fees and expenses, (iv) all amounts due under a Services Agreement and (v) all
costs and expenses of the General Partner being a public company, including costs of filings
with the SEC, reports and other distributions to its shareholders. Such reimbursements shall
be in addition to any reimbursement of the General Partner as a result of indemnification
pursuant to Section 7.6 hereof. To the extent practicable, Partnership expenses shall be
billed directly to and paid by the Partnership.

               7.3.3 Reimbursements to the General Partner or any of its Affiliates by the Partnership
pursuant to this Section 7.3 shall be treated for federal income tax purposes as non-income
reimbursements and not as “guaranteed payments” within the meaning of Code Section 707(c) or
other form or gross income. If and to the extent that any reimbursement made pursuant to this
Section 7.3 cannot be so characterized, it shall be treated as a distribution to the General
Partner pursuant to Section 5.1.2.

          7.4 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) the operation of the General Partner as a

45

 

reporting company under the Exchange Act, (d) the General Partner’s operations as a REIT,
(e) the offering, sale, syndication, private placement or public offering of stock, bonds,
securities or other interests, (f) financing or refinancing of any type related to the Partnership
or its assets or activities, (g) any of the foregoing activities as they relate to a Subsidiary of
the Partnership or of the General Partner and (h) 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.
Except as otherwise provided herein, the General Partner shall not own any assets or take title to
assets (other than temporarily in connection with an acquisition prior to contributing such assets
to the Partnership) other than interests in the Partnership or Subsidiaries of the Partnership or
the General Partner, and other than such cash and cash equivalents, bank accounts or similar
instruments or accounts as the General Partner deems reasonably necessary, taking into account
Section 7.1.4 hereof and the requirements necessary for the General Partner to carry out its
responsibilities contemplated under this Agreement and the Articles of Incorporation and to qualify
as a REIT.

          7.5 Contracts with Affiliates.

               7.5.1 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.

               7.5.2 Except as provided in Section 7.4 hereof and subject to Section 3.1 hereof, 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.

               7.5.3 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 contemplated by the Master Agreement
or are determined by the General Partner in good faith to be fair and reasonable.

               7.5.4 The General Partner, in its sole and absolute discretion and without the approval
of the Limited Partners, may propose and adopt on behalf of the Partnership employee benefit
plans funded by the Partnership for the benefit of employees of 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.

               7.5.5 Subject to the proviso contained Section 7.1.1(f), 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

46

 

Partner, on such terms as the General Partner, in its sole and absolute discretion,
believes are advisable.

          7.6 Indemnification.

               7.6.1 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 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
(i) for the act or omission of the Indemnitee material to the matter giving rise to the
proceeding which was committed in bad faith or was the result of active and deliberate
dishonesty; (ii) for any transaction for which such Indemnitee received an improper personal
benefit (in money, property or services) in violation or breach of any provision of this
Agreement; or (iii) in the case of a criminal proceeding, for an unlawful act or omission by
the Indemnitee for which the Indemnitee had reasonable cause to believe 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 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 7.6 in favor of any Indemnitee having or
potentially having liability for any such indebtedness. It is the intention of this
Section 7.6.1 that the Partnership indemnify each Indemnitee to the fullest extent permitted
by law. The termination of any proceeding by judgment, order or settlement does not create a
presumption that the Indemnitee did not meet the requisite standard of conduct set forth in
this Section 7.6.1.

          The termination of any proceeding by conviction of an Indemnitee or upon a plea of nolo
contendere or its equivalent by an Indemnitee, or an entry of an order of probation against an
Indemnitee prior to judgment, does not create a presumption that such Indemnitee acted in a manner
contrary to that specified in this Section 7.6.1 with respect to the subject matter of such
proceeding. Any indemnification pursuant to this Section 7.6 shall be made only out of the assets
of the Partnership, and neither the General Partner nor any Limited Partner shall have any
obligation to contribute to the capital of the Partnership or otherwise provide funds to enable the
Partnership to fund its obligations under this Section 7.6.

               7.6.2 To the fullest extent permitted by law, expenses incurred by an Indemnitee who is a
party to a proceeding or otherwise subject to or the focus of or is involved in any Action
shall be paid or reimbursed by the Partnership as incurred by the Indemnitee in advance of the
final disposition of the Action upon receipt by the Partnership of (i) a written affirmation
by the Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary
for indemnification by the Partnership as authorized in this Section 7.6.1 has been met, and
(ii) a written undertaking by or on behalf of the Indemnitee

47

 

to repay the amount if it shall ultimately be determined that the standard of conduct has
not been met.

               7.6.3 The indemnification provided by this Section 7.6 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any agreement,
pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as
to an Indemnitee who has ceased to serve in such capacity and shall inure to the benefit of
the heirs, successors, assigns and administrators of the Indemnitee unless otherwise provided
in a written agreement with such Indemnitee or in the writing pursuant to which such
Indemnitee is indemnified.

               7.6.4 The Partnership may, but shall not be obligated to, 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.

               7.6.5 Any liabilities which an Indemnitee incurs as a result of acting on behalf of the
Partnership or the General Partner (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 7.6, unless such liabilities arise as a result of (i) the act or omission of the
Indemnitee material to the matter giving rise to the proceeding which was committed in bad
faith or was the result of active and deliberate dishonesty; (ii) any transaction for which
such Indemnitee received an improper personal benefit (in money, property or services) in
violation or breach of any provision of this Agreement; or (iii) in the case of a criminal
proceeding, an unlawful act or omission by the Indemnitee for which the Indemnitee had
reasonable cause to believe was unlawful.

               7.6.6 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.

               7.6.7 An Indemnitee shall not be denied indemnification in whole or in part under this
Section 7.6 because the Indemnitee had an interest in the transaction with respect to which
the indemnification applies if the transaction was otherwise permitted by the terms of this
Agreement.

               7.6.8 The provisions of this Section 7.6 are for the benefit of the Indemnitees, their
heirs, successors, assigns and administrators and shall not be deemed to create any rights for
the benefit of any other Persons. Any amendment, modification or repeal of this Section 7.6
or any provision hereof shall be prospective only and shall not in any way affect the
obligations of the Partnership or the limitations on the Partnership’s liability to any
Indemnitee under this Section 7.6 as in effect immediately prior to such

48

 

amendment, modification or repeal with respect to claims arising from or relating to
matters occurring, in whole or in part, prior to such amendment, modification or repeal,
regardless of when such claims may arise or be asserted.

               7.6.9 It is the intent of the Partners that any amounts paid by the Partnership to the
General Partner pursuant to this Section 7.6 that are not treated for federal income tax
purposes as repayments of advances made by the General Partner on behalf of the Partnership
shall be treated as “guaranteed payments” within the meaning of Code Section 707(c).

          7.7 Liability of the General Partner.

               7.7.1 Notwithstanding anything to the contrary set forth in this Agreement, neither the
General Partner nor 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 director or officer acted
in good faith.

               7.7.2 The General Partner is under no obligation to give priority to the separate
interests of the Limited Partners or the General Partner’s shareholders (including the tax
consequences to Limited Partners, Assignees or the General Partner’s shareholders) in deciding
whether to cause the Partnership to take(or decline to take) any actions.

               7.7.3 Subject to its obligations and duties as General Partner set forth in Section 7.1.1
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.

               7.7.4 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. The provisions of this Agreement, to
the extent that they restrict the duties and liabilities of the General Partner otherwise
existing at law or in equity, shall serve to replace such other duties and liabilities of such
General Partner.

               7.7.5 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 that Partner’s Partnership Interest. To
the fullest extent permitted by law, no officer, director or shareholder of the General
Partner

49

 

shall be liable to the Partnership for money damages except for (i) active and deliberate
dishonesty established by a non-appealable final judgment or (ii) 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
officers of the General Partner solely as officers of the same and not in their own individual
capacities.

               7.7.6 Any amendment, modification or repeal of this Section 7.7 or any provision hereof
shall be prospective only and shall not in any way affect the limitations on the General
Partner’s, and its officers’ and directors’, liability to the Partnership and the Limited
Partners under this Section 7.7 as in effect immediately prior to such amendment, modification
or repeal with respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when such claims may
arise or be asserted.

          7.8 Other Matters Concerning the General Partner.

               7.8.1 The General Partner may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, debenture or other paper or document believed by it in good
faith to be genuine and to have been signed or presented by the proper party or parties.

               7.8.2 The General Partner may consult with legal counsel, accountants, appraisers,
management consultants, investment bankers, architects, engineers, environmental consultants
and other consultants and advisers selected by it, and any act taken or omitted to be taken in
reliance upon the opinion of such Persons as to matters that the General Partner reasonably
believes to be within such Person’s professional or expert competence shall be conclusively
presumed to have been done or omitted in good faith.

               7.8.3 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.

               7.8.4 Notwithstanding any other provision of this Agreement or the Act, any action of the
General Partner on behalf of the Partnership or any decision of the General Partner to refrain
from acting on behalf of the Partnership, undertaken in the good faith belief that such action
or omission is necessary or advisable in order (i) to protect the ability of the General
Partner to continue to qualify as a REIT, (ii) for the General Partner otherwise to satisfy
the REIT Requirements, or (iii) to avoid the General Partner incurring

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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.

          7.9 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.

          7.10 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 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 (i) at the time of the execution
and delivery of such certificate, document or instrument, this Agreement was in full force and
effect, (ii) the Person executing and delivering such certificate, document or instrument was duly
authorized and empowered to do so for and on behalf of the Partnership and (iii) such certificate,
document or instrument was duly executed and delivered in accordance with the terms and provisions
of this Agreement and is binding upon the Partnership.

          8. RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS.

          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.

          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
representative of the General Partner, the Partnership or any of their Affiliates, in their
capacity as such) shall have any right to take part in the operations, management or control

51

 

(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 or representative 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.

          8.3 Outside Activities of Limited Partners. Subject to any agreements entered into
pursuant to Section 7.5.5 hereof and any other agreements entered into by a Limited Partner or its
Affiliates with the General Partner, the Partnership or a Subsidiary (including any employment
agreement), any Limited Partner 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 7.5.5 hereof and any other agreements entered into by a Limited
Partner or its Affiliates with the General Partner, the Partnership or a Subsidiary, to offer any
interest in any such business ventures to the Partnership, any Limited Partner or any such other
Person, even if such opportunity is of a character that, if presented to the Partnership, any
Limited Partner or such other Person, could be taken by such Person.

          8.4 No Return of Capital. Without limitation of the rights of Redemption set forth in
Section 8.5 hereof, no Limited Partner shall be entitled to the withdrawal or return of its Capital
Contribution, except upon termination of the Partnership as provided herein. Except to the extent
provided in Section 4 or Section 6 hereof, as otherwise expressly provided in this Agreement or in
connection with any class of Partnership Units issued pursuant to Section 4.4, 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.

          8.5 Redemption Rights of Qualifying Parties.

                    8.5.1 On the fifth anniversary of the issuance of the Class A Convertible Preferred Units
(but not prior to nor following such date (provided that a Notice of Redemption may be
delivered prior to such fifth anniversary)), if a Qualified Public Offering has been
consummated on or at any time prior to such fifth anniversary, subject to Section 11.6.3, a
Qualifying Party, but no other Limited Partner or Assignee, shall have the right (subject to
the terms and conditions set forth herein) to require the Partnership to redeem (a
“Redemption”) all or a portion of the Class A Convertible Preferred Units held by such
Qualifying Party (such Class A Convertible Preferred Units being hereafter referred to as
“Tendered Units”) in exchange for any of the following, selected by the General Partner in its
sole discretion, payable on the Specified Redemption Date: (A) the

52

 

Redemption Cash Amount; (B) the Redemption Common Unit Amount; or (C) the Redemption
Preferred Unit Amount. For purposes of this Section 8.5.1, “Redemption Cash Amount” means an
amount equal to the product of (x) the sum of (i) the Class A Convertible Preferred Unit
Liquidation Preference Amount, plus (ii) all accumulated and all declared but unpaid
distributions relating to a Class A Convertible Preferred Unit, multiplied by (y) the number
of Tendered Units, payable, at the General Partner’s sole and exclusive option, in cash or
pursuant to a promissory note maturing five (5) years from the date of issuance and having an
interest rate at prevailing market terms (as determined in the sole discretion of the General
Partner) and otherwise in a form acceptable to the General Partner. “Redemption Common Unit
Amount” means the number of Common Units equal to the quotient of the Redemption Cash Amount
divided by the Value of a Common Unit on the Specified Redemption Date. “Redemption Preferred
Unit Amount” means the number of perpetual preferred units, each with a market distribution
rate and with a liquidation preference equal to the Class A Convertible Preferred Unit
Liquidation Preference Amount, equal to the sum of (A) the number of Tendered Units plus (B) a
number equal to the quotient, rounded to the nearest whole number, of the aggregate amount of
accrued and unpaid distributions on the Tendered Units, divided by the Class A Convertible
Preferred Unit Liquidation Preference Amount.

                    8.5.2 Subject to Section 11.6.3 and to any applicable restrictions set forth in any
agreement, including a contribution agreement, between a Partner and the Partnership relating
to any Contributed Interest or Contributed Property, a Qualifying Party, but no other Limited
Partner or Assignee, shall have the right (subject to the terms and conditions set forth
herein) to require the Partnership to redeem (also a “Redemption”) all or a portion of the
Common Units held by such Qualifying Party (such Common Units also being hereafter referred to
as “Tendered Units”) in exchange for the Redemption Cash Amount payable on the Specified
Redemption Date. For purposes of this Section 8.5.2, “Redemption Cash Amount” means an amount
in cash equal to the product of (y) the Value of a Common Share, multiplied by (z) such
Tendering Party’s Common Shares Amount, all 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.

                    8.5.3 Any Redemption shall be exercised pursuant to a Notice of Redemption delivered to
the General Partner by such Qualifying Party (the “Tendering Party”) when exercising the
Redemption right. The Partnership’s obligation to effect a Redemption, however, shall not
arise or be binding against the Partnership before the Business Day following the Cut-Off Date
and, with respect to any Common Unit, such Common Unit’s Class A Transition Unlock Date.
Regardless of the binding or non-binding nature of a pending Redemption, a Tendering Party
shall have no right to receive distributions with respect to any Tendered Units (other than
the Redemption Cash Amount) paid after delivery of the Notice of Redemption, whether or not
the Partnership Record Date for such distribution precedes or coincides with such delivery of
the Notice of Redemption. In the event of a Redemption, the Redemption Cash Amount shall be
delivered as a certified check payable to the Tendering Party or, in the General Partner’s
sole and absolute discretion, in immediately available funds (subject, however, to the
Tendering Party’s

53

 

ability to elect payment via a five (5) year note with respect to a Redemption under
Section 8.5.1 above).

                    8.5.4 Notwithstanding anything to the contrary contained herein, no Qualifying Party
shall have the right of Redemption for any Common Unit prior to such Common Unit’s Class A
Transition Unlock Date, if applicable, and any purported exercise of rights of Redemption
shall be void and invalid with respect to the Common Units for which the Class A Transition
Unlock Date has not occurred.

                    8.5.5 Notwithstanding anything to the contrary contained herein, with respect to any
proposed Redemption under Section 8.5.2 above (but, for the avoidance of doubt, not with
respect to any proposed Redemption under Section 8.5.1 above), on or before the close of
business on the Cut-Off Date, the General Partner may, in its sole and absolute discretion but
subject to the Ownership Limit and the transfer restrictions and other limitations of the
Articles of Incorporation, elect to acquire, up to 100% of the Tendered Units from the
Tendering Party (the percentage elected to be acquired by the General Partner being referred
to as the “Applicable Percentage”) in exchange for the REIT Consideration. It shall be a
condition to the General Partner’s ability to deliver the REIT Consideration that any such
consideration shall consist of Common Shares which shall, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable. In making such election, the General Partner
shall act in a fair, equitable and reasonable manner that neither prefers one group or class
of Qualifying Parties over another nor discriminates against a group or class of Qualifying
Parties. If the General Partner so elects, on the Specified Redemption Date the Tendering
Party shall sell the Applicable Percentage of the Tendered Units to the General Partner in
exchange for the REIT Consideration. The Tendering Party shall submit (i) such information,
certification or affidavit as the General Partner may reasonably require in connection with
the application of the Ownership Limit and any other restrictions and limitations imposed by
the Articles of Incorporation on such acquisition and (ii) such written representations,
investment letters, legal opinions or other instruments necessary in the view of the General
Partner to effect compliance with the Securities Act and the application of the Code. In the
event of a purchase of any Tendered Units by the General Partner pursuant to this
Section 8.5.5, the Tendering Party shall no longer have the right to cause the Partnership to
effect a Redemption of such Tendered Units, and, upon notice to the Tendering Party by the
General Partner given on or before the close of business on the Cut-Off Date, that the General
Partner has elected to acquire some or all of the Tendered Units pursuant to this
Section 8.5.5, the Partnership shall have no obligation to effect a Redemption of the Tendered
Units as to which the notice by the General Partner relates. The REIT Consideration shall be
delivered by the General Partner as duly authorized, validly issued, fully paid and
non-assessable Common Shares and, if applicable, Rights, free of any pledge, lien, encumbrance
or restriction, other than the Ownership Limit and other restrictions provided in the Articles
of Incorporation, the Bylaws of the General Partner, the Securities Act and relevant state
securities or “blue sky” laws. Neither any Tendering Party whose Tendered Units are acquired
by the General Partner pursuant to this Section 8.5.5, any Partner nor any other interested
Person shall have any right to require or cause the General Partner to register, qualify or
list any Common Shares owned or held by such Person, whether or not such Common Shares are
issued pursuant to this Section 8.5.5, with the SEC, with any state securities commissioner,

54

 

department or agency, under the Securities Act or the Exchange Act or with any stock
exchange; provided, however, that this limitation shall not be in derogation
of any registration or similar rights granted pursuant to any other written agreement between
the General Partner and any such Person. Notwithstanding any delay in such delivery, the
Tendering Party shall be deemed the owner of such Common Shares and Rights for all purposes,
including rights to vote or consent, receive dividends, and exercise rights, as of the
Specified Redemption Date. Common Shares issued upon an acquisition of the Tendered Units by
the General Partner pursuant to this Section 8.5.5 may contain such legends regarding
restrictions under the Securities Act and applicable state securities laws as the General
Partner determines to be necessary or advisable in order to ensure compliance with such laws.

                    8.5.6 Notwithstanding the provisions of Sections 8.5.1 and 8.5.5 hereof, no Tendering
Party shall have any rights (including any right to a Redemption pursuant to Section 8.5.1)
under this Agreement that would otherwise be prohibited under the Articles of Incorporation
with respect to the Ownership Limit. To the extent that any attempted Redemption or
acquisition of the Tendered Units by the General Partner pursuant to Section 8.5.5 hereof
would be in violation of this Section 8.5.6, it shall, to the fullest extent permitted by law,
be null and void ab initio, and the Tendering Party shall not acquire any rights or economic
interests in Common Shares otherwise issuable by the General Partner under Section 8.5.5.
hereof and the General Partner shall be required in lieu thereof to pay the Redemption Cash
Amount.

                    8.5.7 Notwithstanding the provisions of Section 8.5.4 hereof, the General Partner shall
not, under any circumstances, elect to acquire Tendered Units in exchange for the REIT
Consideration if such exchange would be prohibited under the Articles of Incorporation.

                    8.5.8 Notwithstanding anything to the contrary contained herein, in no event shall the
General Partner be obligated to deliver cash in respect of any Redemption pursuant to Section
8.5.1 or Section 8.5.2 unless the General Partner so elects in its sole discretion.

                    8.5.9 Notwithstanding anything herein to the contrary (but subject to Section 8.5.6
hereof), with respect to any Redemption (or any tender of Partnership Units for Redemption if
the Tendered Units are acquired by the General Partner pursuant to Section 8.5.5 hereof)
pursuant to this Section 8.5:

	 	(a)	 	All Partnership Units acquired by the General Partner pursuant
to Section 8.5.5 hereof may, at the election of the General Partner, be
converted into and deemed to be a General Partner Interest comprised of the
same number of Common Units.
	 
	 	(b)	 	Subject to the Ownership Limit, no Tendering Party may effect a
Redemption for less than five hundred (500) Common Units or, if such Tendering
Party holds (as a Limited Partner or, economically, as an

55

 

	 	 	 	Assignee) less than five hundred (500) Common Units, all of the Common Units
held by such Tendering Party.
	 
	 	(c)	 	Each Tendering Party (a) may effect a Redemption only once in
each fiscal quarter of a twelve-month period, unless otherwise permitted by the
General Partner, in its sole and absolute discretion and (b) 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 shareholders of some or all of its portion of such
Partnership distribution.
	 
	 	(d)	 	The consummation of such Redemption (or an acquisition of
Tendered Units by the General Partner pursuant to Section 8.5.4 hereof, as the
case may be) shall be subject to the expiration or termination of the
applicable waiting period, if any, under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended.
	 
	 	(e)	 	Subject to Section 8.5.1, the Tendering Party shall continue to
own all Partnership Units subject to any Redemption, and be treated as a
Limited Partner or Holder, as applicable, with respect to such Partnership
Units for all purposes of this Agreement, until such Partnership Units are
either paid for by the Partnership pursuant to Section 8.5.1 hereof or
transferred to the General Partner and paid for, by the issuance of the Common
Shares, pursuant to Section 8.5.5 hereof on the Specified Redemption Date.
Until a Specified Redemption Date and an acquisition of the Tendered Units by
the General Partner pursuant to Section 8.5.5 hereof, the Tendering Party shall
have no rights as a shareholder of the General Partner with respect to the
Common Shares issuable in connection with such acquisition.
	 
	 	(f)	 	All Tendered Units shall be delivered to the General Partner
free and clear of all liens, claims and 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 or
redeem 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.

                    8.5.10 In connection with an exercise of Redemption rights pursuant to this Section 8.5,
the Tendering Party shall submit the following to the General Partner, in addition to the
Notice of Redemption:

	 	(a)	 	A written affidavit, dated the same date as the Notice of
Redemption, (a) disclosing the actual and constructive ownership, as determined
for purposes of Code Sections 856(a)(6) and 856(h), of Common Shares by
(i) such Tendering Party and (ii) any Related Party and (b) representing that,
after giving effect to the Redemption or an acquisition of the

56

 

	 	 	 	Tendered Units by the General Partner pursuant to Section 8.5.5 hereof,
neither the Tendering Party nor any Related Party will own Common Shares in
excess of the Ownership Limit;
	 
	 	(b)	 	A written representation that neither the Tendering Party nor
any Related Party has any intention to acquire any additional Common Shares
prior to the closing of the Redemption or an acquisition of the Tendered Units
by a REIT Partner pursuant to Section 8.5.5.B hereof on the Specified
Redemption Date; and
	 
	 	(c)	 	An undertaking to certify, at and as a condition to the closing
of (i) the Redemption or (ii) the acquisition of the Tendered Units by the
General Partner pursuant to Section 8.5.5 hereof on the Specified Redemption
Date, that either (a) the actual and constructive ownership of Common Shares by
the Tendering Party and any Related Party remain unchanged from that disclosed
in the affidavit required by Section 8.5.10 (a) or (b) after giving effect to
the Redemption or an acquisition of the Tendered Units by the General Partner
pursuant to Section 8.5.4 hereof, neither the Tendering Party nor any Related
Party shall own Common Shares in violation of the Ownership Limit.

                    8.5.11 Partnership Right to Call Limited Partner Interests. Notwithstanding any
other provision of this Agreement, (x) on and after the date on which the aggregate economic
interests of the Limited Partners in the assets of the Partnership are less than one percent
(1%), or (y) at any time from and after the date hereof that the Partnership determines, in
its sole and absolute discretion, that it is reasonably necessary for the General Partner to
maintain or restore its status as a REIT or to satisfy the REIT Requirements that the
Partnership redeem all or a portion of the Class A Convertible Preferred Units held by any
Limited Partner, then, at either such time, the Partnership shall have the right, but not the
obligation, from time to time and at any such time to redeem any and all outstanding Limited
Partner Interests by treating any Limited Partner as a Tendering Party who has delivered a
Notice of Redemption pursuant to Section 8.5 hereof for the amount of Common Units to be
specified by the General Partner, in its sole and absolute discretion, by notice to such
Limited Partner that the Partnership has elected to exercise its rights under this
Section 8.5.11. Such notice given by the General Partner to a Limited Partner pursuant to
this Section 8.5.11 shall be treated as if it were a Notice of Redemption delivered to the
General Partner by such Limited Partner. For purposes of this Section 8.5.11, (a) any Limited
Partner (whether or not otherwise a Qualifying Party) may, in the General Partner’s sole and
absolute discretion, be treated as a Qualifying Party that is a Tendering Party and (b) the
provisions of Sections 8.5.9(b), and 8.5.9(c) hereof shall not apply, but the remainder of
Section 8.5 hereof shall apply, mutatis mutandis.

          8.6 Mergers. The General Partner shall not permit the Partnership to be a party to
any consolidation, merger, combination or other transaction pursuant to which the Common Units are
converted or changed into or exchanged for partnership interests and/or other securities of another
operating partnership in an UPREIT or similar structure, in each case without the affirmative vote
of both (i) the holders of at least a majority of the Percentage Interests excluding

57

 

the General Partner’s Interest, voting together as a single class, and (ii) the holders of at
least a majority of the Class A Convertible Preferred Units, unless upon consummation of any such
consolidation, merger, combination or other transaction, the holders of Common Units shall receive
shares of stock or beneficial interest or other equity securities of the parent REIT of such
operating partnership with preferences, rights and privileges not materially inferior to the
preferences, rights and privileges of Common Shares. This Section 8.6 shall not be amended or
modified without the prior consent of the both (i) holders of at least a majority of the Percentage
Interests excluding the General Partner’s Interest, and (ii) the holders of at least a majority of
the Class A Convertible Preferred Units.

          9. BOOKS, RECORDS, ACCOUNTING AND REPORTS.

          9.1 Records and Accounting.

                    9.1.1 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 all books and records necessary to provide to the Limited Partners any
information, lists and copies of documents required to be provided pursuant to Section 9.3
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.

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

          9.2 Fiscal Year. The Fiscal Year of the Partnership shall be the calendar year unless
otherwise determined by the General Partner.

          9.3 Reports.

                    9.3.1 As soon as practicable, but in no event later than one hundred twenty (120) days
after the close of each Fiscal Year, the General Partner shall cause to be mailed to each
Limited Partner of record as of the close of the Fiscal Year an annual report containing
financial statements of the Partnership, or of the General Partner if such statements are
prepared on a consolidated basis with the General Partner, for such Fiscal Year, presented in
accordance with generally accepted accounting principles, such statements to be audited by a
nationally recognized firm of independent public accountants selected by the General Partner.

                    9.3.2 As soon as practicable, but in no event later than one hundred five (105) days
after the close of each calendar quarter (except the last calendar quarter of each year), the
General Partner shall cause to be mailed to each Limited Partner

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of record as of the last day of the calendar quarter a report containing unaudited
financial statements of the Partnership, or of the General Partner if such statements are
prepared solely on a consolidated basis with the General Partner, and such other information
as may be required by applicable law or regulation or as the General Partner determines to be
appropriate.

          10. TAX MATTERS.

          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 commercially reasonable efforts to furnish, within ninety (90) days of the close of each
taxable year, the tax information reasonably required by Limited Partners for federal and state
income tax reporting purposes. 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 for
the purpose of complying with this Section 10.1.

          10.2 Tax Elections. Except as otherwise provided herein, the General Partner shall,
in its sole and absolute discretion, determine whether to make or revoke any available election
pursuant to the Code, including, but not limited to, the election under Code Section 754.

          10.3 Tax Matters Partner.

                    10.3.1 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 7.3 hereof.
Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm
or other advisors to assist the tax matters partner in discharging its duties hereunder, so
long as the compensation paid by the Partnership for such services is reasonable.

                    10.3.2 The tax matters partner is authorized, but not required:

	 	(a)	 	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

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	 	 	 	partner” (as defined in Code Section 6231) or a member of a “notice group”
(as defined in Code Section 6223(b)(2));
	 
	 	(b)	 	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;
	 
	 	(c)	 	to intervene in any action brought by any other Partner for
judicial review of a final adjustment;
	 
	 	(d)	 	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;
	 
	 	(e)	 	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
	 
	 	(f)	 	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 7.6 hereof shall be fully applicable to the tax matters
partner in its capacity as such.

          10.4 Withholding. The Partnership shall be authorized to withhold from or pay on
behalf of or with respect to any Unitholder, any amount of federal, state, local or foreign taxes
that the General Partner determines that the Partnership is required to withhold or pay with
respect to any amount distributable or allocable to such Unitholder pursuant to this Agreement,
including any taxes required to be withheld or paid by the Partnership pursuant to Section 1441,
1442, 1445 or 1446 of the Code. Any amount paid on behalf of or with respect to a Unitholder shall
constitute a loan by the Partnership to such Unitholder, which loan shall be repaid by such
Unitholder within fifteen (15) days after notice from the General Partner that such payment must be
made unless (i) the Partnership withholds such payment from a distribution that would otherwise be
made to the Unitholder 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 Unitholder. Any amounts withheld pursuant to the foregoing
clause (i) or (ii) shall be treated as having been distributed to

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such Unitholder. The Partnership shall have (without the requirement that any party take any
further action) a security interest in such Unitholder’s Partnership Interests to secure such
Unitholder’s obligation to pay to the Partnership any amounts required to be paid pursuant to this
Section 10.4. In the event that a Unitholder 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 Unitholder,
and in such event shall be deemed to have loaned such amount to such defaulting Unitholder and
shall succeed to all rights and remedies of the Partnership as against such defaulting Unitholder
(including the right to receive distributions). Any amounts payable by a Unitholder hereunder
shall bear interest at the prime rate at large United States money center commercial banks, as
published from time to time in The Wall Street Journal, plus four (4) percentage points (but not
higher than the maximum lawful rate) from the date such amount is due (i.e., fifteen (15) days
after demand) until such amount is paid in full. Each Unitholder shall take such actions as the
General Partner shall request in order to perfect or enforce the security interest created
hereunder.

          10.5 Organizational Expenses. The Partnership shall elect to deduct expenses, if any,
incurred by it in organizing the Partnership ratably over the period provided in Section 709 of the
Code unless the General Partner reasonably determines that such election is not in the best
interest of the Partners.

          11. TRANSFERS AND WITHDRAWALS.

          11.1 Transfer.

                    11.1.1 No part of the Partnership Interest of any 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 permitted
in this Agreement.

                    11.1.2 No Partnership Interest shall be Transferred, in whole or in part, except in
accordance with the terms and conditions set forth in this Section 11. Any Transfer or
purported Transfer of a Partnership Interest not made in accordance with this Section 11 shall
be null and void ab initio.

                    11.1.3 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 the REIT Consideration 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 Section 752 of the Code.

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          11.2 Transfer of General Partner’s Partnership Interest.

                    11.2.1 The General Partner may not Transfer any of its General Partner Interest or
withdraw from the Partnership except as provided in this Section 11.2.

                    11.2.2 Except as set forth in Section 11.2.2 and Section 11.2.3 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 the Limited Partners, which
Consent may be given or withheld in the sole and absolute discretion of the Limited Partners.
Upon any Transfer of such a Partnership Interest pursuant to the Consent of the Limited
Partners and otherwise in accordance with the provisions of this Section 11.2.2, 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 the
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
bankruptcy of the General Partner, a Majority of the Limited Partners may elect to continue
the Partnership business by selecting a successor General Partner in accordance with the Act.

                    11.2.3 Notwithstanding the other provisions of this Section 11 (other than Section 11.6.3
hereof), the Partnership Interests of the General Partner may be Transferred, in whole or in
part, at any time or from time to time, to any Person that is, at the time of such Transfer, a
Qualified REIT Subsidiary. Any transferee of the entire General Partner Interest pursuant to
this Section 11.2.3 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 11.2.3, the transferor Partner shall be
relieved of all its obligations under this Agreement. The provisions of Section 11.2.2 (other
than the last sentence thereof), 11.3, 11.4.1 and 11.5 hereof shall not apply to any Transfer
permitted by this Section 11.2.3.

                    11.2.4 Notwithstanding Section 11.2.2, the General Partner may merge with another entity
if immediately after such merger substantially all of the assets of the surviving entity,
other than the General Partner Interest held by the General Partner, are contributed to the
Partnership as a Capital Contribution in exchange for Partnership Units.

          11.3 Transfer of Limited Partners’ Partnership Interests.

                    11.3.1 General. No Limited Partner shall Transfer all or any portion of its
Partnership Interest to any transferee without the consent of the General

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Partner, which consent may be withheld in its sole and absolute discretion,
provided, however, that subject to Section 11.3.4 and Section 11.6.3 hereof,
any Limited Partner that is an individual may Transfer all or any portion of his Partnership
Interest to any of his Family Members without the consent of the General Partner,
provided, further, that the General Partner has the right not to admit such
transferee as a Substituted Limited Partner in the Partnership.

     11.3.2 Conditions to Transfer Consent. Without limiting the generality of
Section 11.3.1 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 11.3.1 above unless such Transfer meets each of the following conditions:

	 	(a)	 	Qualified Transferee. 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.
	 
	 	(b)	 	Assumption of Obligations. 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
Limits that may limit or restrict such transferee’s ability to exercise its
Redemption rights, including the Ownership Limit. Any transferee, whether or
not admitted as a Substituted 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.
	 
	 	(c)	 	Effective Date. Such Transfer is to be effective as of the
first day of a fiscal quarter of the Partnership.

                    11.3.3 Incapacity. 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

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part of its interest in the Partnership. The Incapacity of a Limited Partner, in and of
itself, shall not dissolve or terminate the Partnership.

                    11.3.4 No Adverse Tax Consequences. No Transfer by a Limited Partner of its
Partnership Interests may be made to or by any person if in the opinion of the General
Partner, (i) the Transfer 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) 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, or (iii) such Transfer would require registration under the Securities Act
or would otherwise violate any federal or state securities laws or regulations applicable to
the Partnership or the Partnership Interests Transferred. The General Partner shall have the
right to receive an opinion of counsel reasonably satisfactory to it, at the cost of the
Limited Partner desiring to effectuate such transfer, to the effect that the proposed Transfer
satisfies the requirements of the first sentence of this Section 11.3.4.

          11.4 Substituted Limited Partners.

                    11.4.1 A transferee of the interest of a Limited Partner pursuant to a Transfer consented
to by the General Partner (or for which no consent is required) pursuant to Section 11.3 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) an instrument of joinder to this Agreement executed by such Assignee and (ii) 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.

                    11.4.2 A transferee who has been admitted as a Substituted Limited Partner in accordance
with this Section 11 shall have all the rights and powers and be subject to all the
restrictions and liabilities of a Limited Partner under this Agreement.

                    11.4.3 Upon the admission of a Substituted Limited Partner, the General Partner shall
amend its books and records 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.

          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 consented to (or for which no consent is required) by the
General Partner pursuant to Section 11.3.1, 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, and the right to receive distributions from the

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Partnership and the share of Income, Loss 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 in accordance with the provisions of this Section 11,
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 effect a Consent or vote or effect a Redemption 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 Section 11 to the same extent and in the same manner
as any Limited Partner desiring to make an assignment of Partnership Units.

          11.6 General Provisions.

                    11.6.1 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
Section 11, 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 8.5 hereof and/or pursuant to terms and
conditions of any Partnership Unit Designation. Any Limited Partner who shall Transfer all of
its Partnership Units in a Transfer (i) consented to (or for which consent is not required) by
the General Partner pursuant to this Section 11 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 8.5 hereof
and/or pursuant to any Partnership Unit Designation or (iii) to the General Partner, whether
or not pursuant to Section 8.5.4 hereof, shall cease to be a Limited Partner.

                    11.6.2 If any Partnership Unit is Transferred in compliance with the provisions of this
Section 11, or is redeemed by the Partnership, or acquired by the General Partner pursuant to
Section 8.5.4 hereof, on any day other than the first day of a Fiscal Year, then Income,
Losses, each item thereof and all other items of income, gain, loss, deduction and credit
attributable to such Partnership Unit for such Fiscal 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 Fiscal 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 fifteenth (15th) day of the month, otherwise such items shall be allocated to
the transferor (unless such method of allocation is determined by the General Partner to be
improper). All distributions pursuant to Section 5.1 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

65

 

Transfer other than a Redemption, all distributions pursuant to Section 5.1 thereafter
attributable to such Partnership Unit shall be made to the transferee Partner.

                    11.6.3 In no event may any Transfer 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 (other than a
Partnership Unit), 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 General Partner 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 (except as a result of
the Redemption (or acquisition by a REIT Partner) of all Common Units held by all Limited
Partners); (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 (except as a result of the Redemption (or acquisition by a REIT Partner) of all
Common Units held by all Limited Partners); (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) if such Transfer would, in the opinion of legal counsel to
the Partnership, cause any portion of the assets of the Partnership to constitute assets of
any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101;
(ix) if such Transfer requires the registration of such Partnership Interest pursuant to any
applicable federal or state securities laws; (x) if such Transfer causes the Partnership to
become a “publicly traded partnership,” as such term is defined in Code 7704(b); or (xi) 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.

          12. ADMISSION OF PARTNERS.

          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 upon 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 instrument of joinder to this
Agreement and such other documents or instruments as may be required to effect the admission.

          12.2 Admission of Additional Limited Partners.

                    12.2.1 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) an instrument of joinder to this Agreement executed by

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such Person and (ii) 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.

                    12.2.2 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.

                    12.2.3 If any Additional Limited Partner is admitted to the Partnership on any day other
than the first day of a Fiscal Year, then Income, Losses, each item thereof and all other
items of income, gain, loss, deduction and credit allocable among Partners and Assignees for
such Fiscal 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 Fiscal
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 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 11.6.2 hereof. All distributions pursuant to Section 5.1 (a) 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, (b) with respect to which
the Partnership Record Date is after the date of such admission but which relates to the
calendar quarter in which such Partner was admitted shall be prorated (i.e., reduced) to
reflect the number of days in such quarter during which such Partner was a Partner and such
prorated amount shall be paid to such Additional Limited Partner, and (c) thereafter shall be
made to all the Partners and Assignees including such Additional Limited Partner.

          12.3 Amendment of Agreement and Certificate of Limited Partnership. For the admission
to the Partnership of any Partner, the General Partner shall take all steps necessary and
appropriate under the Act to amend the records of the Partnership and, if necessary, to prepare as
soon as practical an amendment of this Agreement and, if required by law, shall prepare and file an
amendment to the Certificate and may for this purpose exercise the power of attorney granted
pursuant to Section 2.4 hereof.

          13. DISSOLUTION, LIQUIDATION AND TERMINATION.

          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”):

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                    13.1.1 an event of withdrawal, as defined in the Act (including bankruptcy), of the sole
General Partner unless, within ninety (90) days after the withdrawal, a Majority of the
Limited Partners remaining agree in writing, in their sole and absolute discretion, to
continue the business of the Partnership and to the appointment, effective as of the date of
withdrawal, of a successor General Partner;

                    13.1.2 an election to dissolve the Partnership made by the General Partner in its sole
and absolute discretion, with or without the Consent of the Limited Partners;

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

                    13.1.4 the consummation of a Terminating Capital Transaction.

               Notwithstanding any other provision of this Agreement to the contrary, upon the
occurrence of an event that causes the last remaining limited partner in the Partnership to
cease to be a limited partner in the Partnership, to the fullest extent permitted by law, all
of the Partners agree that the personal representative of such limited partner is hereby
authorized to, and shall within ninety (90) days after the occurrence of the event that
terminated the continued membership of such limited partner in the Partnership, agree in
writing (i) to continue the Partnership, and (ii) to the admission of the personal
representative or its nominee or designee, as the case may be, as a substitute limited partner
of the Partnership, effective as of the occurrence of the event that terminated the continued
membership of the last remaining limited partner of the Partnership in the Partnership.

               Notwithstanding any other provision of this Agreement to the contrary, upon the
occurrence of any event that results in any general partner ceasing to be a general partner in
the Partnership under the Act, to the fullest extent permitted by law, if at the time of the
occurrence of such event there is at least one remaining general partner of the Partnership,
such remaining general partner(s) of the Partnership is (are) hereby authorized to and, to the
fullest extent permitted by law, shall carry on the business of the Partnership.

          13.2 Winding Up.

                    13.2.1 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 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 of the 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 the Liquidator determines is
consistent with obtaining the fair value thereof, and the proceeds therefrom

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(which may, to the extent determined by the Liquidator, include shares of stock in the
General Partner) shall be applied and distributed in the following order:

	 	(a)	 	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);
	 
	 	(b)	 	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 7.3 hereof;
	 
	 	(c)	 	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);
	 
	 	(d)	 	Fourth, to the satisfaction of all of the debts and liabilities
of any Subsidiary of the General Partner and the Partnership;
	 
	 	(e)	 	Fifth, to the Holders of Senior Units in accordance with the
designations or preferences associated with such Senior Units;
	 
	 	(f)	 	Sixth, to the Holders of Class A Convertible Preferred Units
and Pari Passu Units pursuant to Section 4.3.3 above; and
	 
	 	(g)	 	Subject to the terms of any additional Partnership Unit
Designation, the balance, if any, to the Holders of Common Units, pro rata in
accordance with their Percentage Interests.

The General Partner shall not receive any additional compensation for any services performed
pursuant to this Section 13.

                    13.2.2 Notwithstanding the provisions of Section 13.2.1 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 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 13.2.1
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 they can be made
without registration under the Securities Act and if, following such distributions, the
Partnership is not required to register the interests so distributed under the Exchange Act,
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

69

 

determine the fair market value of any property distributed in kind using such reasonable
method of valuation as it may adopt.

                    13.2.3 In the event that the Partnership is “liquidated” within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g), and 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 have no obligation to make a contribution to the capital of the
Partnership on account of such deficit, and such Capital Account Deficit shall not be
considered a debt owed to the Partnership or any other person for any purpose whatsoever. 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 Section 13
may be:

	 	(a)	 	distributed to a trust established for the benefit of the
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, in the same priority, proportions and amounts as would otherwise have
been distributed to the General Partner and the Limited Partners pursuant to
this Agreement; or
	 
	 	(b)	 	withheld or escrowed to provide a reasonable reserve for
Partnership liabilities (contingent or otherwise) and to reflect the unrealized
portion of any installment obligations owed to the Partnership, provided that
such withheld or escrowed amounts shall be distributed as soon as practicable
to the General Partner and Limited Partners in the same priority, proportions
and amounts as would otherwise have been distributed to the General Partner and
the Limited Partners pursuant to this Agreement.

          13.3 Deemed Distribution and Recontribution. Notwithstanding any other provision of
this Section 13, 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 the provisions of
Section 13.2.1 in liquidation of the Partnership, and the new partnership shall be 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.

70

 

          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 obligations of
the Partnership, (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 Class A Convertible Preferred Units or 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 distributions, allocations or liquidating distributions.

          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
thirty (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).

          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.

          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.

          14. PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS.

          14.1 Procedures for Actions and Consents of Partners. The actions requiring consent
or approval of Limited Partners pursuant to this Agreement or otherwise pursuant to applicable law,
are subject to the procedures set forth in this Section 14.

          14.2 Amendments.

                    14.2.1 Amendments to this Agreement may be proposed by the General Partner or by a
Majority of the Limited Partners. Within thirty (30) days following such proposal, the
General Partner shall submit to the Limited Partners any proposed amendment that requires the
consent of the Limited Partners. The General Partner shall seek the written consent of the
Limited Partners on the proposed amendment or shall call a

71

 

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 fifteen (15) 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.

                    14.2.2 The General Partner shall not, without the prior Consent of the Limited Partners,
except as provided in Sections 4.4.1, 5.5, 6.2.1 and 14.2.3 hereof, amend, modify or terminate
this Agreement.

                    14.2.3 Notwithstanding anything to the contrary contained herein, including
Section 14.2.2 hereof, the General Partner shall have the power, without the Consent of the
Limited Partners to amend this Agreement as may be required to facilitate or implement any of
the following purposes:

	 	(a)	 	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;
	 
	 	(b)	 	to reflect the admission, substitution or withdrawal of
Partners or the termination of the Partnership in accordance with this
Agreement;
	 
	 	(c)	 	to cure any ambiguity, correct or supplement any provision in
this Agreement not inconsistent with law or with other provisions of this
Agreement;
	 
	 	(d)	 	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;
	 
	 	(e)	 	(i) to reflect such changes as are reasonably necessary for the
General Partner to maintain or restore its status as a REIT or to satisfy the
REIT Requirements; or (ii) to reflect the Transfer of all or any part of a
Partnership Interest between the General Partner and any Qualified REIT
Subsidiary or Taxable REIT Subsidiary;
	 
	 	(f)	 	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
	 
	 	(g)	 	to issue additional Partnership Interests in accordance with
Section 4.3.

                    14.2.4 Notwithstanding Sections 14.2.2 and 14.2.3 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

72

 

Interest (except as a result of the General Partner acquiring such Partnership Interest),
(ii) modify the limited liability of a Limited Partner, (iii) alter the rights of any Partner
to receive the distributions to which such Partner is entitled, pursuant to Section 5 or
Section 13.2.1 hereof, or alter the allocations specified in Section 6 hereof (except, in any
case, as permitted pursuant to Sections 4.3, 5.5, 6.2.1 and 14.2.3 hereof), (iv) alter or
modify the Redemption rights, Redemption Cash Amount, REIT Consideration, or Common Shares
Amount as set forth in Sections 8.5 and 11.2 hereof (except, in any case, as permitted
pursuant to Sections 4.3, 5.5, 6.2.1 and 14.2.3 hereof), or amend or modify any related
definitions (except, in any case, as permitted pursuant to Sections 4.3, 5.5, 6.2.1 and 14.2.3
hereof), (v) permit the removal of the General Partner without its consent or (vi) amend this
Section 14.2.4; provided, however, that, notwithstanding anything to the
contrary contained in this Agreement, the Consent of each Partner adversely affected shall not
be required for any amendment or action that affects all Partners holding the same class or
series of Partnership Units (including the Class A Convertible Preferred Units) on a uniform
or pro rata basis (in which event such amendment shall require approval by a majority of the
Partnership Units of such class or series). Further, no amendment may alter the restrictions
on the General Partner’s authority set forth elsewhere in this Section 14.2 without the
Consent specified therein. Any such 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.

          14.3 Meetings of the Partners.

                    14.3.1 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 of the 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 (7) days or more than sixty
(60) 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 14.3.2 hereof.

                    14.3.2 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), including the Percentage Interest of
the General Partner. Such consent may be in one instrument or in several instruments, and
shall have the same force and effect as a vote 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 in the books and records of the Partnership. An action so taken shall
be deemed to have been taken at a meeting held on the effective date so certified.

                    14.3.3 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

73

 

proxy must be signed by the Limited Partner or its attorney-in-fact. No proxy shall be
valid after the expiration of eleven (11) months from the date thereof unless otherwise
provided in the proxy (or there is receipt of a proxy authorizing a later date). Every proxy
shall be revocable at the pleasure of the Limited Partner executing it, such revocation to be
effective upon the 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).

                    14.3.4 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 shareholders and may be held at the same time as, and as
part of, the meetings of the General Partner’s shareholders.

          15. GENERAL PROVISIONS.

          15.1 Addresses and Notice. Any notice, demand, request or report required or
permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and
shall be deemed given or made when delivered 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 the books and records of
the Partnership or such other address of which the Partner shall notify the General Partner in
writing.

          15.2 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.

          15.3 Governing Law Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without reference to principles of conflicts of
law. The Partners: (x) agree that any suit, action or legal proceeding relating to this Agreement
shall only be brought in any federal court located in Delaware, if federal jurisdiction is
available, and, otherwise, in any state court located in such state; (y) consent to the
jurisdiction of each such court in any such suit, action or proceeding; and (z) waive any objection
which they may have to the laying of venue in any such suit, action or proceeding in either such
court. Further, the Partners hereby consent and submit to the personal jurisdiction of the
Delaware courts, both state and federal, and hereby waive any and all objections now or hereafter
existing to personal jurisdiction of said courts over them. The Partners waive, to the extent
permitted under applicable law, any right they may have to assert the doctrine of forum non
conveniens or to object to venue to the extent any proceeding is brought in accordance with this
section.

          15.4 Headings.  The headings of various Sections in this Agreement are for convenience
only, and are not to be utilized in construing the content or meaning of the substantive provisions
hereof.

74

 

          15.5 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.

          15.6 Further Action. The Partners 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.

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

          15.8 Counterparts. This Agreement may be executed in any number of identical
counterparts, any of which may contain the signatures of less than all parties, and all of which
together shall constitute a single agreement.

          15.9 Fax Signatures. Any signature page hereto delivered by a fax machine or telecopy
machine shall be binding to the same extent as an original signature page, with regard to any
agreement subject to the terms hereof or any amendment thereto. Any party who delivers such a
signature page agrees to later deliver an original counterpart to any party that requests it.

          15.10 Partial Invalidity. The provisions hereof shall be deemed independent and
severable, and the invalidity or partial invalidity or enforceability of any one provision shall
not affect the validity of enforceability of any other provision hereof.

          15.11 Waiver.

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

                    15.11.2 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; provided,
however, that any such waiver or relinquishment may not be made if it would have the
effect of (i) creating liability for any Limited Partner, (ii) causing the Partnership to
cease to qualify as a limited partnership, (iii) reducing the amount of cash otherwise
distributable to the Limited Partners, (iv) resulting in the classification of the Partnership
as an association or publicly traded partnership taxable as a corporation or (v) violating the
Securities Act, the Exchange Act or any state “blue sky” or other securities laws;
provided, further, that any waiver relating to compliance with the Ownership
Limit or other restrictions in the Articles of Incorporation shall be made and shall be
effective only as provided in the Articles of Incorporation.

75

 

          15.12 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 any REIT Partner or its officers, directors, employees or agents, whether as a
reimbursement, fee, expense or indemnity (a “REIT Payment”), would constitute gross income to the
REIT Partner 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 Fiscal Year so that the
REIT Payments, as so reduced, for or with respect to such REIT Partner shall not exceed the lesser
of:

          (i) an amount equal to the excess, if any, of (a) four and nine-tenths percent
(4.9%) of the REIT Partner’s total gross income (but excluding the amount of any
REIT Payments) for the Fiscal 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 REIT Partner 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) twenty-four percent (24%) of
the REIT Partner’s total gross income (but excluding the amount of any REIT
Payments) for the Fiscal Year that is described in subsections (A) through (I) of
Code Section 856(c)(3) over (b) the amount of gross income (within the meaning of
Code Section 856(c)(3)) derived by the REIT Partner 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, reasonably determines, on the advice of
counsel, that the receipt of such excess amounts shall not adversely affect the REIT Partner’s
ability to qualify as a REIT. To the extent that REIT Payments may not be made in a Fiscal Year as
a consequence of the limitations set forth in this Section 15.12, such REIT Payments shall carry
over and shall be treated as arising in the following Fiscal Year(s). The purpose of the
limitations contained in this Section 15.12 is to prevent any REIT Partner from failing to qualify
as a REIT under the Code by reason of such REIT Partner’s share of items, including distributions,
reimbursements, fees, expenses or indemnities, receivable directly or indirectly from the
Partnership, and this Section 15.12 shall be interpreted and applied to effectuate such purpose.

          15.13 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

76

 

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.

          15.14 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, power, title or interest by way of subrogation or
otherwise, in and to the rights, powers, title and provisions of this Agreement. No creditor or
other third party having dealings with the 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.

          15.15 No Rights as Stockholders. Nothing contained in this Agreement shall be
construed as conferring upon the Unitholders any rights whatsoever as stockholders of the General
Partner, including without limitation any right to receive dividends or other distributions made to
stockholders of the General Partner or to vote or to consent or receive notice as stockholders in
respect of any meeting of stockholders for the election of directors of the General Partner or any
other matter.

          15.16 Construction. Whenever used in this Agreement, the singular shall include the
plural and vice versa (where applicable), the use of the masculine, feminine or neuter gender shall
include the other genders (unless the context otherwise requires), the words “hereof,” “herein,”
“hereto,” “hereby,” “hereunder” and other words of similar import refer to this Agreement as a
whole (including all schedules and exhibits), the words “include,” “includes” and “including” shall
mean “include, without limitation,” “includes, without limitation” and “including, without
limitation,” respectively. Each party has been represented by its own counsel in connection with
the negotiation and preparation of this Agreement and, consequently, each party hereby waives the
application of any rule of law that would otherwise be applicable in connection with the
interpretation of this Agreement, including any rule of law to the effect that any provision of
this Agreement shall be interpreted or construed against the party whose counsel drafted that
provision.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

77

 

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	GENERAL PARTNER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PACIFIC OFFICE PROPERTIES TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	           /s/ Dallas E. Lucas	 	 
	 

	 	 	 	 
	 	 

Name: Dallas E. Lucas
	 	 
	 

	 	 	 	 	 	Title: President and Chief Executive Officer	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LIMITED PARTNERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	POP VENTURE, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: POP FUNDING, LLC, its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By: JHS Manager, LLC, its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:                     /s/ Jay H. Shidler                    
	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Jay H. Shidler	 	 
	 

	 	 	 	 	 	 	 	 	 	Title: Sole Member	 	 

	 	 	 	 	 	 	 	 	 
	 	 	POPTLP, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: PACIFIC OFFICE PROPERTIES TRUST, INC., its sole member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:                     /s/ Dallas E. Lucas                    
	 	 
	 

	 	 	 	 	 	Name: Dallas E. Lucas	 	 
	 

	 	 	 	 	 	Title: President and Chief Executive Officer	 	 

S-1

 

Exhibit A

	 	 	 	 	 	 	 	 	 
	 	 	Common Units	 	Preferred Units
	Name and Address	 	(Percentage)	 	(Percentage)
	GENERAL PARTNER:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Pacific Office Properties Trust, Inc.
	 	 	3,031,125	 	 	 	0	 
	233 Wilshire Blvd., Suite 830
	 	 	 	 	 	 	 	 
	Santa Monica, CA 90401
	 	 	18.25	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 
	LIMITED PARTNERS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	POP Venture, LLC
	 	 	13,576,165	 	 	 	4,545,300	 
	841 Bishop Street
	 	 	 	 	 	 	 	 
	Honolulu, HI 96813
	 	 	81.75	%	 	 	100	%
	 
	 	 	 	 	 	 	 	 
	POPTLP, LLC
	 	 	0	 	 	 	0	 
	841 Bishop Street
	 	 	 	 	 	 	 	 
	Honolulu, HI 96813
	 	 	0	%	 	 	0	%

A-1

 

Exhibit B

NOTICE OF REDEMPTION

			
	To:	 	Pacific Office Properties Trust, Inc.

[ADDRESS]

          The undersigned Limited Partner hereby irrevocably tenders for Redemption Common Units in
Pacific Office Properties, L.P. in accordance with the terms of the Amended and Restated Agreement
of Limited Partnership of Pacific Office Properties, L.P. (the “Agreement”), and the Redemption
rights referred to therein. The undersigned Limited Partner:

          (a) undertakes (i) to surrender such Common 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 8.5.10 of the
Agreement;

          (b) directs that the certified check representing the Redemption Cash Amount, or the Common
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 is a Qualifying Party,
	 
	 	(ii)	 	the undersigned Limited Partner has, and at the closing of the
Redemption will have, good, marketable and unencumbered title to such Common
Units, free and clear of the rights or interests of any other person or entity,
	 
	 	(iii)	 	the undersigned Limited Partner has, and at the closing of the
Redemption will have, the full right, power and authority to tender and
surrender such Common Units as provided herein, and
	 
	 	(iv)	 	the undersigned Limited Partner 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 Common Units until and unless either
(1) such Common Units are acquired by the General Partner pursuant to Section 8.5.4 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:
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	 	 	 
	(Signature of Limited Partner or Assignee)

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 (Street Address)

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 (City)          (State)          (Zip Code)

	 	 	 	 
	 
	 	 	 	 
	 Signature Guaranteed by:
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	Issue Check Payable to:
	 	 	 	 
	 

	 	 

	 	 	 	 	 
	Please insert social security or identifying number:
	 	 	 	 
	 	 	 

	 	 

B-2

 

Exhibit C

City Square

	1.	 	Agreement Regarding Consent to Transfer.
	 
	2.	 	Modification of Mezzanine Loan Agreement, Note and Other Loan Documents.
	 
	3.	 	Assignment of membership interests of STIRR N. Central, LLC and First Amendment to Operating
Agreement.

First Insurance Center (leasehold):

	1.	 	Consent and Ratification Agreement.
	 
	2.	 	Confirmation of Guaranty and Environmental Indemnity.
	 
	3.	 	Certification.
	 
	4.	 	Ground Lessor Estoppel and Agreement.
	 
	5.	 	Assignment of membership interests of Pacific Office Properties Trust (Ward Avenue), LLC and
First Amendment to Operating Agreement.

First Insurance Center (fee loan):

	1.	 	Reaffirmation, Consent to Transfer and Addition of Indemnitor among 101 Park Avenue (1100
Ward), LLC, a Delaware limited liability company (“FI Fee Borrower”), James C. Reynolds,
Reynolds Partners, a Hawaii limited partnership, POP LP and Wells Fargo Bank, N.A., as Trustee
for the Registered Holders of GS Mortgage Securities Corporation II, Commercial Mortgage
Pass-Through Certificates, Series 2006-GG6 (“FI Fee Lender”).
	 
	2.	 	Post Closing Agreement made by FI Fee Borrower and POP LP for the benefit of FI Fee Lender.
	 
	3.	 	Certificate of Borrower made by FI Fee Borrower.
	 
	4.	 	Assignment of membership interests and Amendment to Operating Agreement of 101 Park Avenue
(1100 Ward), LLC.

Pacific Business News Building:

	1.	 	Reaffirmation, Consent to Transfer and Addition of Indemnitor among PBN Office, LLC, a
Delaware limited liability company (“PNB Borrower”), James C. Reynolds, STIRR-PBN, LLC, a
Hawaii limited liability company, Pacific Office Properties, L.P., a Delaware limited
partnership (“POP LP”) and LaSalle Bank National Association, as Trustee for the Registered
Holders of Greenwich Capital Commercial Funding Corp., Commercial Mortgage Trust 2005-GG5,
Commercial Mortgage Pass-Through Certificates, Series 2005-GG5 (“PBN Lender”).

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	2.	 	Post Closing Agreement made by PNB Borrower and POP LP for the benefit of PBN Lender.
	 
	3.	 	Certificate of Borrower made by PBN Borrower.
	 
	4.	 	Assignment of membership interests and Amendment to Operating Agreement of PBN Office, LLC.

Seville:

	1.	 	Acknowledgement and Reaffirmation Agreement between Pacific Office Properties/Seville Plaza,
LLC, Seville HAB, LLC and LaSalle Bank National Association, as Trustee for Banc of America
Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates.
	 
	2.	 	Borrower’s Certificate for Pacific Office Properties/Seville Plaza, LLC.
	 
	3.	 	Borrower’s Certificate for Seville HAB, LLC.
	 
	4.	 	Assignment of membership interests of Pacific Office Properties/Seville Mezzanine Partners,
LLC and Second Amendment to Operating Agreement.

Waterfront:

	1.	 	Pacific Office Properties, L.P. Officer’s Certificate
	 
	2.	 	Waterfront Partners OP, LLC Officer’s Certificate
	 
	3.	 	Omnibus Amendment to Loan Documents by and between Waterfront A, LLC, Waterfront B, LLC,
Waterfront C, LLC, Waterfront D, LLC, and Waterfront E, LLC, tenants-in-common, as Borrowers,
and KeyCorp. Real Estate Capital Markets, Inc. d/b/a KeyBank Real Estate Capital, as
authorized agent for Wells Fargo Bank Minnesota, N.A., as trustee in trust for the registered
Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage
Pass-Through Certificates, Series 2006-C5.
	 
	4.	 	Letter Agreement by and between WFP Mezzanine A, LLC, WFP Mezzanine B, LLC, WFP Mezzanine C,
LLC, WFP Mezzanine D, LLC, and WFP Mezzanine E, LLC, Waterfront Partners OP, LLC and Concord
Real Estate CDO 2006-1, Ltd.
	 
	5.	 	Letter Agreement between KeyCorp Real Estate Markets, Inc. d/b/a KeyBank Real Estate Capital,
as authorized agent for Wells Fargo Bank Minnesota, N.A., as trustee, in trust for the
registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial
Mortgage Pass-Through Certificates, Series 2006-C5 and Waterfront A, LLC, Waterfront B, LLC,
Waterfront C, LLC, Waterfront D, LLC, and Waterfront E, LLC.

City Center:

	1. 	 	
Consent and Agreement.

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Davies:

	1.	 	Letter from Wachovia Bank, National Association to the Shidler Group

Pan Am:

	1.	 	Letter from Wachovia Bank, National Association to the Shidler Group

	2.	 	First Amendment to Loan Agreement among PAN AM I, LLC, PAN AM II, LLC, PAN AM III, LLC and
PAN AM IV, LLC, each a Delaware limited liability company, and WELLS FARGO BANK, N.A., AS
TRUSTEE FOR THE REGISTERED HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-C27.

Sorrento:

Nothing

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