Document:

Unassociated Document

    

     

    AGREEMENT
OF LIMITED PARTNERSHIP

     

     

    OF

     

     

    AMERICAN
REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P.

     

     

    

     

     

    Date as
of
              ,
2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
TABLE
OF CONTENTS

      
        Page

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            Article
      1

                                                          	 
      	
                                                            DEFINED
      TERMS

                                                          	
                                                            1

                                                          
	 	 	 	 
	
                                                            Article
      2

                                                          	 
      	
                                                            ORGANIZATIONAL
      MATTERS

                                                          	
                                                            16

                                                          
	
                                                            2.1

                                                          	 
      	
                                                            Formation

                                                          	
                                                            16

                                                          
	
                                                            2.2

                                                          	 
      	
                                                            Name

                                                          	
                                                            16

                                                          
	
                                                            2.3

                                                          	 
      	
                                                            Registered
      Office and Agent; Principal Office

                                                          	
                                                            17

                                                          
	
                                                            2.4

                                                          	 
      	
                                                            Power
      of Attorney

                                                          	
                                                            17

                                                          
	
                                                            2.5

                                                          	 
      	
                                                            Term

                                                          	
                                                            18

                                                          
	 	 	 	 
	
                                                            Article
      3

                                                          	 
      	
                                                            PURPOSE

                                                          	
                                                            19

                                                          
	
                                                            3.1

                                                          	 
      	
                                                            Purpose
      and Business

                                                          	
                                                            19

                                                          
	
                                                            3.2

                                                          	 
      	
                                                            Powers

                                                          	
                                                            19

                                                          
	 	 	 	 
	
                                                            Article
      4

                                                          	 
      	
                                                            CAPITAL
      CONTRIBUTIONS

                                                          	
                                                            20

                                                          
	
                                                            4.1

                                                          	 
      	
                                                            Capital
      Contributions of the Partners

                                                          	
                                                            20

                                                          
	
                                                            4.2

                                                          	 
      	
                                                            Additional
      Funds; Restrictions on the General Partner

                                                          	
                                                            20

                                                          
	
                                                            4.3

                                                          	 
      	
                                                            Issuance
      of Additional Partnership Interests; Admission of Additional Limited
      Partners

                                                          	
                                                            22

                                                          
	
                                                            4.4

                                                          	 
      	
                                                            Contribution
      of Proceeds of Issuance of Common Stock

                                                          	
                                                            23

                                                          
	
                                                            4.5

                                                          	 
      	
                                                            Repurchase
      of Common Stock; Shares-In-Trust

                                                          	
                                                            23

                                                          
	
                                                            4.6

                                                          	 
      	
                                                            No
      Third-Party Beneficiary

                                                          	
                                                            24

                                                          
	
                                                            4.7

                                                          	 
      	
                                                            No
      Interest; No Return

                                                          	
                                                            24

                                                          
	
                                                            4.8

                                                          	 
      	
                                                            No
      Preemptive Rights.

                                                          	
                                                            24

                                                          
	 	 	 	 
	
                                                            Article
      5

                                                          	 
      	
                                                            DISTRIBUTIONS

                                                          	
                                                            25

                                                          
	
                                                            5.1

                                                          	 
      	
                                                            Distributions

                                                          	
                                                            25

                                                          
	
                                                            5.2

                                                          	 
      	
                                                            Qualification
      as a REIT

                                                          	
                                                            28

                                                          
	
                                                            5.3

                                                          	 
      	
                                                            Withholding

                                                          	
                                                            28

                                                          
	
                                                            5.4

                                                          	 
      	
                                                            Additional
      Partnership Interests

                                                          	
                                                            29

                                                          
	 	 	 	 
	
                                                            Article
      6

                                                          	 
      	
                                                            ALLOCATIONS

                                                          	
                                                            29

                                                          
	
                                                            6.1

                                                          	 
      	
                                                            Allocations

                                                          	
                                                            29

                                                          
	
                                                            6.2

                                                          	 
      	
                                                            Revisions
      to Allocations to Reflect Issuance of Partnership
Interests

                                                          	
                                                            29

                                                          
	 	 	 	 
	
                                                            Article
      7

                                                          	 
      	
                                                            MANAGEMENT
      AND OPERATIONS OF BUSINESS

                                                          	
                                                            29

                                                          
	
                                                            7.1

                                                          	 
      	
                                                            Management

                                                          	
                                                            29

                                                          
	
                                                            7.2

                                                          	 
      	
                                                            Certificate
      of Limited Partnership

                                                          	
                                                            34

                                                          
	
                                                            7.3

                                                          	 
      	
                                                            Reimbursement
      of the General Partner

                                                          	
                                                            34

                                                          
	
                                                            7.4

                                                          	 
      	
                                                            Outside
      Activities of the General Partner

                                                          	
                                                            35

                                                          
	
                                                            7.5

                                                          	 
      	
                                                            Contracts
      with Affiliates

                                                          	
                                                            36

                                                          
	
                                                            7.6

                                                          	 
      	
                                                            Indemnification

                                                          	
                                                            36

                                                          
	
                                                            7.7

                                                          	 
      	
                                                            Liability
      of the General Partner

                                                          	
                                                            39

                                                          
	
                                                            7.8

                                                          	 
      	
                                                            Other
      Matters Concerning the General Partner

                                                          	
                                                            40

                                                          
	
                                                            7.9

                                                          	 
      	
                                                            Title
      to Partnership Assets

                                                          	
                                                            40

                                                          
	
                                                            7.10

                                                          	 
      	
                                                            Reliance
      by Third Parties

                                                          	
                                                            41

                                                          
	
                                                            7.11

                                                          	 
      	
                                                            Loans
      By Third Parties

                                                          	
                                                            42

                                                          

                                                  

                                                

                                              

                                               

                                              
                                                
                                                  
                                                  

                                                

                                                
                                                  i

                                                  
                                                    

                                                  

                                                

                                                
                                                  
                                                  

                                                

                                              

                                               

                                              
                                                
                                                  	
                                                          Article
      8

                                                        	 
      	
                                                          RIGHTS
      AND OBLIGATIONS OF LIMITED PARTNERS

                                                        	
                                                          42

                                                        
	
                                                          8.1

                                                        	 
      	
                                                          Limitation
      of Liability

                                                        	
                                                          42

                                                        
	
                                                          8.2

                                                        	 
      	
                                                          Management
      of Business

                                                        	
                                                          42

                                                        
	
                                                          8.3

                                                        	 
      	
                                                          Outside
      Activities of Limited Partners

                                                        	
                                                          42

                                                        
	
                                                          8.4

                                                        	 
      	
                                                          Return
      of Capital

                                                        	
                                                          43

                                                        
	
                                                          8.5

                                                        	 
      	
                                                          Rights
      of Limited Partners Relating to the Partnership

                                                        	
                                                          43

                                                        
	
                                                          8.6

                                                        	 
      	
                                                          Exchange
      Rights Agreements

                                                        	
                                                          43

                                                        
	 	 	 	 
	
                                                          Article
      9

                                                        	 
      	
                                                          BOOKS,
      RECORDS, ACCOUNTING AND REPORTS

                                                        	
                                                          44

                                                        
	
                                                          9.1

                                                        	 
      	
                                                          Records
      and Accounting

                                                        	
                                                          44

                                                        
	
                                                          9.2

                                                        	 
      	
                                                          Fiscal
      Year

                                                        	
                                                          44

                                                        
	
                                                          9.3

                                                        	 
      	
                                                          Reports

                                                        	
                                                          44

                                                        
	 	 	 	 
	
                                                          Article
      10

                                                        	 
      	
                                                          TAX
      MATTERS

                                                        	
                                                          45

                                                        
	
                                                          10.1

                                                        	 
      	
                                                          Preparation
      of Tax Returns

                                                        	
                                                          45

                                                        
	
                                                          10.2

                                                        	 
      	
                                                          Tax
      Elections

                                                        	
                                                          45

                                                        
	
                                                          10.3

                                                        	 
      	
                                                          Tax
      Matters Partner

                                                        	
                                                          46

                                                        
	
                                                          10.4

                                                        	 
      	
                                                          Organizational
      Expenses

                                                        	
                                                          47

                                                        
	
                                                          10.5

                                                        	 
      	
                                                          Withholding

                                                        	
                                                          47

                                                        
	 	 	 	 
	
                                                          Article
      11

                                                        	 
      	
                                                          TRANSFERS
      AND WITHDRAWALS

                                                        	
                                                          49

                                                        
	
                                                          11.1

                                                        	 
      	
                                                          Transfer

                                                        	
                                                          49

                                                        
	
                                                          11.2

                                                        	 
      	
                                                          Transfer
      of the General Partner’s General Partner Interest

                                                        	
                                                          49

                                                        
	
                                                          11.3

                                                        	 
      	
                                                          Limited
      Partners’ Rights to Transfer

                                                        	
                                                          51

                                                        
	
                                                          11.4

                                                        	 
      	
                                                          Substituted
      Limited Partners

                                                        	
                                                          52

                                                        
	
                                                          11.5

                                                        	 
      	
                                                          Assignees

                                                        	
                                                          53

                                                        
	
                                                          11.6

                                                        	 
      	
                                                          General
      Provisions

                                                        	
                                                          54

                                                        
	 	 	 	 
	
                                                          Article
      12

                                                        	 
      	
                                                          ADMISSION
      OF PARTNERS

                                                        	
                                                          56

                                                        
	
                                                          12.1

                                                        	 
      	
                                                          Admission
      of Successor General Partner

                                                        	
                                                          56

                                                        
	
                                                          12.2

                                                        	 
      	
                                                          Admission
      of Additional Limited Partners

                                                        	
                                                          57

                                                        
	
                                                          12.3

                                                        	 
      	
                                                          Amendment
      of Agreement and Certificate of Limited Partnership

                                                        	
                                                          58

                                                        
	 	 	 	 
	
                                                          Article
      13

                                                        	 
      	
                                                          DISSOLUTION,
      LIQUIDATION AND TERMINATION

                                                        	
                                                          58

                                                        
	
                                                          13.1

                                                        	 
      	
                                                          Dissolution

                                                        	
                                                          58

                                                        
	
                                                          13.2

                                                        	 
      	
                                                          Winding
      Up

                                                        	
                                                          59

                                                        
	
                                                          13.3

                                                        	 
      	
                                                          No
      Obligation to Contribute Deficit

                                                        	
                                                          60

                                                        
	
                                                          13.4

                                                        	 
      	
                                                          Rights
      of Limited Partners

                                                        	
                                                          61

                                                        
	
                                                          13.5

                                                        	 
      	
                                                          Notice
      of Dissolution

                                                        	
                                                          61

                                                        
	
                                                          13.6

                                                        	 
      	
                                                          Termination
      of Partnership and Cancellation of Certificate of Limited
      Partnership

                                                        	
                                                          61

                                                        
	
                                                          13.7

                                                        	 
      	
                                                          Reasonable
      Time for Winding-Up

                                                        	
                                                          61

                                                        
	
                                                          13.8

                                                        	 
      	
                                                          Waiver
      of Partition

                                                        	
                                                          61

                                                        

                                                

                                              

                                            

                                          

                                        

                                         

                                        
                                          
                                            
                                            

                                          

                                          
                                            ii

                                            
                                              

                                            

                                          

                                          
                                            
                                            

                                          

                                        

                                         

                                        
                                          
                                            	
                                                    Article
      14

                                                  	 
      	
                                                    AMENDMENT
      OF PARTNERSHIP AGREEMENT; MEETINGS

                                                  	
                                                    61

                                                  
	
                                                    14.1

                                                  	 
      	
                                                    Amendments

                                                  	
                                                    61

                                                  
	
                                                    14.2

                                                  	 
      	
                                                    Meetings
      of the Partners

                                                  	
                                                    62

                                                  
	 	 	 	 
	
                                                    Article
      15

                                                  	 
      	
                                                    GENERAL
      PROVISIONS

                                                  	
                                                    64

                                                  
	
                                                    15.1

                                                  	 
      	
                                                    Addresses
      and Notice

                                                  	
                                                    64

                                                  
	
                                                    15.2

                                                  	 
      	
                                                    Titles
      and Captions

                                                  	
                                                    64

                                                  
	
                                                    15.3

                                                  	 
      	
                                                    Pronouns
      and Plurals

                                                  	
                                                    64

                                                  
	
                                                    15.4

                                                  	 
      	
                                                    Further
      Action

                                                  	
                                                    64

                                                  
	
                                                    15.5

                                                  	 
      	
                                                    Binding
      Effect

                                                  	
                                                    64

                                                  
	
                                                    15.6

                                                  	 
      	
                                                    Creditors

                                                  	
                                                    64

                                                  
	
                                                    15.7

                                                  	 
      	
                                                    Waiver

                                                  	
                                                    64

                                                  
	
                                                    15.8

                                                  	 
      	
                                                    Counterparts

                                                  	
                                                    65

                                                  
	
                                                    15.9

                                                  	 
      	
                                                    Applicable
      Law

                                                  	
                                                    65

                                                  
	
                                                    15.10

                                                  	 
      	
                                                    Invalidity
      of Provisions

                                                  	
                                                    65

                                                  
	
                                                    15.11

                                                  	 
      	
                                                    Entire
      Agreement

                                                  	
                                                    65

                                                  
	
                                                    15.12

                                                  	 
      	
                                                    Merger

                                                  	
                                                    65

                                                  
	
                                                    15.13

                                                  	 
      	
                                                    No
      Rights as Stockholders

                                                  	
                                                    65

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

          
            
              	
                      EXHIBITS

                    	 
      	 
      
	 	 	 
	
                      Exhibit
      A

                    	
                      –

                    	
                      Partners’
      Contributions and Partnership Interests

                    
	
                      Exhibit
      B

                    	
                      –

                    	
                      Allocations

                    
	
                      Exhibit
      C

                    	
                      –

                    	
                      Certificate
      of Limited Partnership

                    

            

          

          
            
               

            

            
              iii

              
                

              

            

            
               

            

          

        

         

      

    

    
      FORM
OF

      AGREEMENT
OF LIMITED PARTNERSHIP

      OF

      AMERICAN
REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P.

       

      THIS
AGREEMENT OF LIMITED PARTNERSHIP OF AMERICAN REALTY CAPITAL RETAIL OPERATING
PARTNERSHIP, L.P. (this “Agreement”) dated as
of             ,
2010, is entered into among AMERICAN REALTY CAPITAL— RETAIL CENTERS OF AMERICA,
INC., a Maryland corporation, as general partner (the “General Partner”),
and AMERICAN REALTY CAPITAL RETAIL ADVISOR, LLC, a Delaware limited liability
company, as Limited Partner (the “Initial Limited
Partner” and “Special Limited
Partner”), and the Limited Partners party hereto from time to
time.

       

      WHEREAS,
the General Partner formed American Realty Capital Retail Operating Partnership,
L.P. (the “Partnership”) as a
limited partnership on July 29, 2010 pursuant to the Revised Uniform Limited
Partnership Act of the State of Delaware and filed a certificate of limited
partnership with the Secretary of State of the State of Delaware.

       

      NOW
THEREFORE, in consideration of the mutual covenants herein contained, and other
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties do hereby agree as follows:

       

       

      ARTICLE
1

      DEFINED
TERMS

       

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

       

      “Act”
means the Delaware Revised Uniform Limited Partnership Act, as amended from time
to time, and any successor to such statute.

       

      “Additional
Limited Partner” means a Person that has executed and delivered an
additional limited partner signature page in the form attached hereto, has been
admitted to the Partnership as a Limited Partner pursuant to Section 4.3 hereof
and that is shown as such on the books and records of the
Partnership.

       

      “Adjusted
Capital Account Deficit” means with respect to any Partner, the negative
balance, if any, in such Partner’s Capital Account as of the end of any relevant
fiscal year, determined after giving effect to the following
adjustments:

       

      (a)           credit
to such Capital Account any portion of such negative balance which such Partner
(i) is treated as obligated to restore to the Partnership pursuant to the
provisions of Section 1.704-1(b)(2)(ii)(c) of the Regulations, or (ii) is deemed
to be obligated to restore to the Partnership pursuant to the penultimate
sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations;
and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

      “Advisory
Agreement” means the Advisory Agreement between the General Partner, as
advisee, and the Initial Limited Partner, as advisor.

       

      “Advisory
Agreement Termination Date” means the date of termination of the Advisory
Agreement.

       

      “Affected
Gain” has the meaning set forth in paragraph 4(b) of Exhibit
B.

       

       “Affiliate”
means,

       

      (a)           with
respect to any individual Person, any member of the Immediate Family of such
Person or a trust established for the benefit of such member, or

       

      (b)           with
respect to any Entity, any Person which, directly or indirectly through one or
more intermediaries, controls, is controlled by, or is under common control
with, any such Entity. For purposes of this definition, “control,” when used
with respect to a any Person, means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise, and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

       

      “Agreement”
means this Agreement of Limited Partnership, as originally executed and as
amended, modified, supplemented or restated from time to time, as the context
requires.

       

      “Articles
of Incorporation” means the General Partner’s Articles of Incorporation,
filed with the Maryland State Department of Assessments and Taxation, or other
organizational document governing the General Partner, as amended, modified,
supplemented or restated from time to time.

       

      “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.

       

      “Available
Cash” means, with respect to the applicable period of measurement (i.e.,
any period beginning on the first day of the fiscal year, quarter or other
period commencing immediately after the last day of the fiscal year, quarter or
other applicable period for purposes of the prior calculation of Available Cash
for or with respect to which a distribution has been made, and ending on the
last day of the fiscal year, quarter or other applicable period immediately
preceding the date of the calculation), the excess, if any, as of such date,
of

       

      (a)           the
gross cash receipts of the Partnership for such period from all sources
whatsoever, including, without limitation, the following:

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (i)           all
rents, revenues, income and proceeds derived by the Partnership from its
operations, including, without limitation, distributions received by the
Partnership from any Entity in which the Partnership has an
interest;

       

      (ii)           all
proceeds and revenues received by the Partnership on account of any sales of any
Partnership property or as a refinancing of or payment of principal, interest,
costs, fees, penalties or otherwise on account of any borrowings or loans made
by the Partnership or financings or refinancings of any property of the
Partnership;

       

      (iii)           the
amount of any insurance proceeds and condemnation awards received by the
Partnership;

       

      (iv)           all
capital contributions and loans received by the Partnership from its
Partners;

       

      (v)           all
cash amounts previously reserved by the Partnership, to the extent such amounts
are no longer needed for the specific purposes for which such amounts were
reserved; and

       

      (vi)           the
proceeds of liquidation of the Partnership’s property in accordance with this
Agreement;

       

      over

       

      (b)           the
sum of the following:

       

      (i)           all
operating costs and expenses, including taxes and other expenses of the
properties directly and indirectly held by the Partnership and capital
expenditures made during such period (without deduction, however, for any
capital expenditures, charges for Depreciation or other expenses not paid in
cash or expenditures from reserves described in (viii) below);

       

      (ii)           all
costs and expenses expended or paid during such period in connection with the
sale or other disposition, or financing or refinancing, of the property directly
or indirectly held by the Partnership or the recovery of insurance or
condemnation proceeds;

       

      (iii)           all
fees provided for under this Agreement;

       

      (iv)           all
debt service, including principal and interest, paid during such period on all
indebtedness (including under any line of credit) of the
Partnership;

       

      (v)           all
capital contributions, advances, reimbursements, loans or similar payments made
to any Person in which the Partnership has an interest;

       

      (vi)           all
loans made by the Partnership in accordance with the terms of this
Agreement;

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (vii)           all
reimbursements to the General Partner or its Affiliates during such period;
and

       

      (viii)                      the
amount of any new reserve or increase in reserves established during such period
which the General Partner determines is necessary or appropriate in its sole and
absolute discretion.

       

      Notwithstanding
the foregoing, Available Cash shall not include any cash received or reductions
in reserves, or take into account any disbursements made or reserves
established, after commencement of the dissolution and liquidation of the
Partnership.

       

      “Average
Net Investment Balance” means, on any Distribution Date, the daily
average Net Investment balance during the applicable period (calculated on a
daily basis).

       

       “Business
Combination” has the meaning set forth in Section
7.1(a)(iii)(C).

       

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

       

      “Capital
Account” means with respect to any Partner, the Capital Account
maintained for such Partner in accordance with the following
provisions:

       

      (a)           to
each Partner’s Capital Account there shall be credited

       

      (i)           such
Partner’s Capital Contributions;

       

      (ii)           such
Partner’s distributive share of Net Income and any items in the nature of income
or gain which are specially allocated to such Partner pursuant to Paragraphs 1
and 2 of Exhibit B and

       

      (iii)           the
amount of any Partnership liabilities assumed by such Partner or which are
secured by any asset distributed to such Partner;

       

      (b)           to
each Partner’s Capital Account there shall be debited

       

      (i)           the
amount of cash and the Gross Asset Value of any property distributed to such
Partner pursuant to any provision of this Agreement,

       

      (ii)           such
Partner’s distributive share of Net Losses and any items in the nature of
expenses or losses which are specially allocated to such Partner pursuant to
Paragraphs 1 and 2 of Exhibit B and

       

      (iii)           the
amount of any liabilities of such Partner assumed by the Partnership or which
are secured by any asset contributed by such Partner to the Partnership;
and

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (c)           if
all or a portion of a Partnership Interest is transferred in accordance with the
terms of this Agreement, the transferee shall succeed to the Capital Account of
the transferor to the extent it relates to the transferred Partnership
Interest.

       

      The
foregoing provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Sections 1.704-1(b)
and 1.704-2 of the Regulations, and shall be interpreted and applied in a manner
consistent with such Regulations. If the General Partner shall reasonably
determine that it is prudent to modify the manner in which the Capital Accounts,
or any debits or credits thereto (including, without limitation, debits or
credits relating to liabilities which are secured by contributed or distributed
assets or which are assumed by the Partnership, the General Partner or any
Limited Partner) are computed in order to comply with such Regulations, the
General Partner may make such modification; provided, that, all allocations of
Partnership income, gain, loss and deduction continue to have “substantial
economic effect” within the meaning of Section 704(b) of the Code and that no
Limited Partner is materially adversely affected by any such
modification.

       

      “Capital
Contribution” means, with respect to any Partner, any cash, cash
equivalents or the Gross Asset Value of property (net of any liabilities secured
by contributed property that the Partnership is considered to assume or take
subject to under Section 752 of the Code) which such Partner contributes or is
deemed to contribute to the Partnership pursuant to Article 4
hereof.

       

       “Capital
Transaction” means any sale, or other disposition (other than a deemed
disposition pursuant to Section 708(b)(1)(B) of the Code and the Regulations
thereunder) of all or substantially all of the assets and properties of the
Partnership or a related series of transactions that, taken together, result in
the sale or other disposition of all or substantially all of the assets and
properties of the Partnership.

       

      “Cash
Amount” means an amount of cash per Partnership Unit equal to the value
of one share of Common Stock as determined under the applicable Exchange Rights
Agreement on the Valuation Date of the Common Stock Amount.

       

      “Cash
Available for Distribution” means the Available Cash other than Net Sales
Proceeds.

       

      “Certificate”
means the Certificate of Limited Partnership relating to the Partnership to be
filed in the form of Exhibit C hereto as soon as practicable after the date
hereof in the office of the Delaware Secretary of State, as amended from time to
time in accordance with the terms hereof and the Act.

       

      “Code”
means the Internal Revenue Code of 1986, as amended and in effect from time to
time, 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
Stock” means a share of the common stock of the General Partner, $.01 par
value. Common Stock may be issued in one or more classes or series in accordance
with the terms of the Articles of Incorporation. If there is more than one class
or series of Common Stock, the term “Common Stock” shall, as the context
requires, be deemed to refer to the class or series of Common Stock that
correspond to the class or series of Partnership Interests for which the
reference to Common Stock is made.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      “Common
Stock Amount” means that number of shares of Common Stock equal to the
product of the number of Partnership Units offered for exchange by an exchanging
Partner, multiplied by the Exchange Factor as of the Valuation Date, provided, that if the General Partner
or the Operating Partnership issues to all holders of Common Stock rights,
options, warrants or convertible or exchangeable securities entitling the
stockholders to subscribe for or purchase Common Stock, or any other securities
or property (collectively, the “rights”), then the Common Stock Amount shall
also include such rights that a holder of that number of shares of Common Stock
would be entitled to receive.

       

      “Consent”
means the consent or approval of a proposed action by a Partner given in
accordance with Section 14.2 hereof.

       

      “Consent
of the Limited Partners” means the Consent of Limited Partners (excluding
for this purpose any Partnership Interests held by the General Partner, any
other Person of which they own or control more than fifty percent (50%) of the
voting interests and any Person directly or indirectly owning or controlling
more than fifty percent (50%) of the outstanding voting interests of the General
Partner) holding Percentage Interests that are greater than fifty percent (50%)
of the aggregate Percentage Interest of all Limited Partners who are not
excluded for the purposes hereof.

       

      “Contributed
Property” means each property, partnership interest, contract right or
other asset, in such form as may be permitted by the Act, contributed or deemed
contributed to the Partnership by any Partner, including any interest in any
successor partnership occurring as a result of a termination of the Partnership
pursuant to Section 708 of Code.

       

      “Debt”
means, as to any Person, as of any date of determination, (a) all indebtedness
of such Person for borrowed money or for the deferred purchase price of property
or services; (b) all amounts owed by such Person to banks or other Persons
in respect of reimbursement obligations under letters of credit, surety bonds
and other similar instruments guaranteeing payment or other performance of
obligations by such Person; (c) 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 (d) obligations of such Person incurred in
connection with entering into a lease which, in accordance with generally
accepted accounting principles, should be capitalized.

       

      “Depreciation”
means, with respect to any asset of the Partnership for any fiscal year or other
period, the depreciation, depletion, amortization or other cost recovery
deduction, as the case may be, allowed or allowable for federal income tax
purposes in respect of such asset for such fiscal year or other period; provided, however, that except as
otherwise provided in Section 1.704-2 of the Regulations, if there is a
difference between the Gross Asset Value (including the Gross Asset Value, as
increased pursuant to paragraph (d) of the definition of Gross Asset Value) and
the adjusted tax basis of such asset at the beginning of such fiscal year or
other period, Depreciation for such asset shall be an amount that bears the same
ratio to the beginning Gross Asset Value of such asset as the federal income tax
depreciation, depletion, amortization or other cost recovery deduction for such
fiscal year or other period bears to the beginning adjusted tax basis of such
asset; provided, further, that if the federal
income tax depreciation, depletion, amortization or other cost recovery
deduction for such asset for such fiscal year or other period is zero,
Depreciation of such asset shall be determined with reference to the beginning
Gross Asset Value of such asset using any reasonable method selected by the
General Partner.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      “Distribution
Date” has the meaning set forth in Section 5.1(a).

       

      “Effective
Date” means the date of first closing of the offering pursuant to the
Registration Statement on Form S-11.

       

      “Entity”
means any general partnership, limited partnership, corporation, joint venture,
trust, business trust, real estate investment trust, limited liability company,
limited liability partnership, cooperative or association.

       

      “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time (or any corresponding provisions of succeeding laws).

       

      “Exchange
Factor” means 1.0, provided, that if the General Partner
(i) declares or pays a dividend on its outstanding Common Stock in Common Stock
or makes a distribution to all holders of its outstanding Common Stock in Common
Stock; (ii) subdivides its outstanding Common Stock; or (iii) combines its
outstanding Common Stock into a smaller number of shares of Common Stock, the
Exchange Factor shall be adjusted by multiplying the Exchange Factor by a
fraction, the numerator of which shall be the number of shares of Common Stock
issued and outstanding on the record date for such dividend, contribution,
subdivision or combination (assuming for such purpose that such dividend,
distribution, subdivision or combination has occurred as of such time), and the
denominator of which shall be the actual number of shares of Common Stock
(determined without the above assumption) issued and outstanding on the record
date for such dividend, distribution, subdivision or combination. Any adjustment
to the Exchange Factor shall become effective immediately after the effective
date of such event retroactive to the record date, if any, for such
event.

       

      “Exchange
Right” means the exchange right of a Limited Partner described in Section
8.6 and to be set forth in one or more Exchange Rights Agreements.

       

      “Exchange
Rights Agreements” has the meaning set forth in Section 8.6.

       

      “First
Level Return” means, on any Distribution Date, the difference of (a) a
cumulative non-compounded return of 7% per year from the Effective Date until
such Distribution Date on the Average Net Investment Balance (based on a year of
365 days) minus (b) distributions made under Sections 5.1(a) and
(b)(ii).

       

      “General
Partner” means American Realty Capital – Retail Centers of America, Inc.,
a Maryland corporation, and any successor as general partner of the
Partnership.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      “General
Partner Interest” means a Partnership Interest held by the General
Partner, in its capacity as general partner. A General Partner Interest may be
expressed as a number of Partnership Units.

       

      “Gross
Asset Value” means, with respect to any asset of the Partnership, such
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, without
reduction for liabilities, as determined by the contributing Partner and the
Partnership on the date of contribution thereof;

       

      (b)           if
the General Partner determines that an adjustment is necessary or appropriate to
reflect the relative economic interests of the Partners, the Gross Asset Values
of all Partnership assets shall be adjusted in accordance with Sections
1.704-1(b)(2)(iv)(f) and (g) of the Regulations to equal their respective gross
fair market values, without reduction for liabilities, as reasonably determined
by the General Partner, as of the following times:

       

      (i)           a
Capital Contribution (other than a de minimis Capital
Contribution) to the Partnership by a new or existing Partner as consideration
for a Partnership Interest; or

       

      (ii)           the
distribution by the Partnership to a Partner of more than a de minimis amount of
Partnership assets as consideration for the repurchase of a Partnership
Interest; or

       

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

       

      (c)           the
Gross Asset Values of Partnership assets distributed to any Partner shall be the
gross fair market values of such assets (taking Section 7701(g) of the Code into
account) without reduction for liabilities, as 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
Sections 734(b) or 743(b) of the Code, but only to the extent that such
adjustments are taken into account in determining Capital Accounts pursuant to
Section 1.704-1(b)(2)(iv)(m) of the Regulations (as set forth in Exhibit B);
provided, however, that Gross Asset
Values shall not be adjusted pursuant to this paragraph (d) to the extent that
the General Partner determines that an adjustment pursuant to paragraph (b)
above is necessary or appropriate in connection with a transaction that would
otherwise result in an adjustment pursuant to this paragraph (d).

       

      At all
times, Gross Asset Values shall be adjusted by any Depreciation taken into
account with respect to the Partnership’s assets for purposes of computing Net
Income and Net Loss.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      “Gross
Proceeds” means the aggregate purchase price of all shares of Common
Stock sold for the account of the General Partner through an Offering, without
deduction for Organization and Offering Expenses. For the purpose of computing
Gross Proceeds, the purchase price of any share of Common Stock for which
reduced selling commissions are paid to (i) Realty Capital Securities, LLC or
any successor dealer manager to the General Partner or (ii) a broker-dealer
(where net proceeds to the General Partner are not reduced) shall be deemed to
be the full amount of the offering price per share of Common Stock pursuant to
the Registration Statement for such Offering without reduction.

       

      “Incapacity”
or “Incapacitated”
means,

       

      (a)           as
to any individual who is a Partner, death, total physical disability or entry by
a court of competent jurisdiction adjudicating him incompetent to manage his
person or his estate;

       

      (b)           as
to any corporation which is a Partner, the filing of a certificate of
dissolution, or its equivalent, for the corporation or the revocation of its
charter;

       

      (c)           as
to any partnership which is a Partner, the dissolution and commencement of
winding up of the partnership;

       

      (d)           as
to any limited liability company which is a Partner, the dissolution and
commencement of winding up of the limited liability company;

       

      (e)           as
to any estate which is a Partner, the distribution by the fiduciary of the
estate’s entire interest in the Partnership;

       

      (f)           as
to any trustee of a trust which is a Partner, the termination of the trust (but
not the substitution of a new trustee); or

       

      (g)           as
to any Partner, the bankruptcy of such Partner, which shall be deemed to have
occurred when

       

      (i)           the
Partner commences a voluntary proceeding seeking liquidation, reorganization or
other relief under any bankruptcy, insolvency or other similar law now or
hereafter in effect;

       

      (ii)           the
Partner is adjudged as bankrupt or insolvent, or a final and nonappealable order
for relief under any bankruptcy, insolvency or similar law now or hereafter in
effect has been entered against the Partner;

       

      (iii)           the
Partner executes and delivers a general assignment for the benefit of the
Partner’s creditors;

       

      (iv)           the
Partner files an answer or other pleading admitting or failing to contest the
material allegations of a petition filed against the Partner in any proceeding
of the nature described in clause (ii) above;

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (v)           the
Partner seeks, consents to or acquiesces in the appointment of a trustee,
receiver or liquidator for the Partner or for all or any substantial part of the
Partner’s properties;

       

      (vi)           any
proceeding seeking liquidation, reorganization or other relief of or against
such Partner under any bankruptcy, insolvency or other similar law now or
hereafter in effect has not been dismissed within one hundred twenty (120) days
after the commencement thereof;

       

      (vii)           the
appointment without the Partner’s consent or acquiescence of a trustee, receiver
or liquidator has not been vacated or stayed within ninety (90) days of such
appointment; or

       

      (viii)                      an
appointment referred to in clause (vii) which has been stayed is not vacated
within ninety (90) days after the expiration of any such stay.

       

      “Included
Assets” has the meaning in Section 5.1(d)(ii)(A).

       

      “Indemnitee”
means

       

      (a)           any
Person made a party to a proceeding by reason of its status as

       

      (i)           the
General Partner,

       

      (ii)           a
Limited Partner,

       

      (iii)           the
Service Provider,

       

      (iv)           an
investment advisor to the General Partner,

       

      (v)           a
trustee, director or officer of the Partnership, the General Partner, or the
investment advisor to the General Partner, or

       

      (vi)           a
director, trustee, member or officer of any other Entity, each Person serving in
such capacity at the request of the Partnership or the General Partner,
or

       

      (vii)           his
or its liabilities, pursuant to a loan guarantee or otherwise, for any
indebtedness of the Partnership or any Subsidiary of the Partnership (including,
without limitation, any indebtedness which the Partnership or any Subsidiary of
the Partnership has assumed or taken assets subject to); and

       

      (b)           such
other Persons (including Affiliates of the General Partner, a Limited Partner,
the Partnership or the Service Provider) 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.

       

      “Initial
Limited Partner” means American Realty Capital Retail Advisor,
LLC.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      “Investment”
or “Investments”
means any investment or investments by the Partnership, directly or indirectly,
in Properties, Loans or other Permitted Investments.

       

      “Investment
Liquidation Event” means a liquidation or the sale of all or
substantially all the Investments (regardless of the form in which such sale
shall occur, including through a merger or sale of stock or other interests in
an entity).  For clarification purposes, a transaction of the type
described in clause (ii) of the definition of Listing shall not be an Investment
Liquidation Event.

       

      “IRS”
shall mean the Internal Revenue Service of the United States (or any successor
organization).

       

      “Liability
Shortfall” has the meaning set forth in subparagraph 4(d) of Exhibit
B.

       

       “Lien”
means any lien, security interest, mortgage, deed of trust, charge, claim,
encumbrance, pledge, option, right of first offer or first refusal and any other
right or interest of others of any kind or nature, actual or contingent, or
other similar encumbrance of any nature whatsoever.

       

      “Limited
Partner” means, prior to the admission of the first Additional Limited
Partner to the Partnership, the Initial Limited Partner, and thereafter any
Person named as a Limited Partner in Exhibit A, as such Exhibit may be amended
from time to time, upon the execution and delivery by such Person of an
additional limited partner signature page, or any Substituted Limited Partner or
Additional Limited Partner, in such Person’s capacity as a Limited Partner of
the Partnership.

       

      “Limited
Partner Interest” means a Partnership Interest of a Limited Partner in
the Partnership representing a fractional part of the Partnership Interests of
all 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
Partnership Units.

       

      “Liquidating
Events” has the meaning set forth in Section 13.1(b) hereof.

       

      “Liquidator”
has the meaning set forth in Section 13.2(a)(iii) hereof.

       

      “Listing”
means (i) the listing of the shares of Common Stock on a national securities
exchange or (ii) the receipt by the Stockholders of securities that are listed
on a national securities exchange in exchange for shares of the Common Stock in
a merger or any other type of transaction.

       

      “Listing
Note” has the meaning set forth in Section 5.1(c) hereof.

       

      “Loans”
means mortgage loans and other types of debt financing investments made by the
Partnership, either directly or indirectly, including through ownership
interests in a joint venture or other entity and including mezzanine loans,
B-notes, bridge loans, convertible mortgages, wraparound mortgage loans,
construction mortgage loans, loans on leasehold interests, and participations in
such loans.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      “Market
Value” means the value calculated based on the average market value of
the shares of Common Stock issued and outstanding at Listing over the 30 days
beginning 180 days after the shares of Common Stock are first listed or included
for quotation.

       

      “Net
Income” or “Net
Loss” means, for each fiscal year or other applicable period, an amount
equal to the Partnership’s taxable income or loss for such year or period as
determined for federal income tax purposes by the General Partner, determined in
accordance with Section 703(a) of the Code (for this purpose, all items of
income, gain, loss or deduction required to be stated separately pursuant to
Section 703(a) of the Code shall be included in taxable income or loss),
adjusted as follows:

       

      (a)           by
including as an item of gross income any tax-exempt income received by the
Partnership and not otherwise taken into account in computing Net Income or Net
Loss;

       

      (b)           by
treating as a deductible expense any expenditure of the Partnership described in
Section 705(a)(2)(B) of the Code (or which is treated as a Section 705(a)(2)(B)
expenditure pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations) and not
otherwise taken into account in computing Net Income or Net Loss, including
amounts paid or incurred to organize the Partnership (unless an election is made
pursuant to Section 709(b) of the Code) or to promote the sale of interests in
the Partnership and by treating deductions for any losses incurred in connection
with the sale or exchange of Partnership property disallowed pursuant to Section
267(a)(1) or 707(b) of the Code as expenditures described in Section
705(a)(2)(B) of the Code;

       

      (c)           by
taking into account Depreciation in lieu of depreciation, depletion,
amortization and other cost recovery deductions taken into account in computing
taxable income or loss;

       

      (d)           by
computing gain or loss resulting from any disposition of Partnership property
with respect to which gain or loss is recognized for federal income tax purposes
by reference to the Gross Asset Value of such property rather than its adjusted
tax basis;

       

      (e)           if
an adjustment of the Gross Asset Value of any Partnership asset which requires
that the Capital Accounts of the Partnership be adjusted pursuant to Sections
1.704-1(b)(2)(iv)(e), (f) and (g) of the Regulations, by taking into account the
amount of such adjustment as if such adjustment represented additional Net
Income or Net Loss pursuant to Exhibit B; and

       

      (f)           by
not taking into account in computing Net Income or Net Loss items separately
allocated to the Partners pursuant to Paragraphs 2 and 3 of Exhibit
B.

       

      “Net
Investment” means the difference of (a) (i) as it relates to the
Stockholders, Gross Proceeds raised in all Offerings; and (ii) as it relates to
the Limited Partners the total amount of Capital Contributions minus (b) in each
case, without duplication, (i) as it relates to the Stockholders, all prior
distributions to Stockholders of Net Sales Proceeds plus any amounts paid by the
General Partner to repurchase shares of Common Stock pursuant to the General
Partner’s plan for redemption of Common Stock or otherwise; and (ii) as it
relates to the Limited Partners, all prior distributions to the Limited Partners
of Net Sales Proceeds (other than distributions on Limited Partner Interests
held directly or indirectly by the General Partner) plus any proceeds or
property used to redeem Limited Partner Interests (except those held directly or
indirectly owned by the General Partner).

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      “Net
Sales Proceeds” has the meaning set forth in the Articles of
Incorporation.

       

      “Nonrecourse
Deductions” has the meaning set forth in Sections 1.704-2(b)(1) and
1.704-2(c) of the Regulations.

       

      “Nonrecourse
Liabilities” has the meaning set forth in Section 1.704-2(b)(3) of the
Regulations.

       

      “Note”
means a promissory note  which will provide that the
Note cannot be repaid in any quarter in which the General Partner's board of
directors determines such repayment would impair the REIT's capital assets and
shall be prepaid by the Partnership out of any Net Sales Proceeds, and will
provide that the Special Limited Partner may elect to receive at its discretion
all or a portion of such Note in shares of Common Stock, which may or may not be
registered under the Securities Act of 1933, as amended, or
cash. 

       

      “Offering”
means the public offering of shares of Common Stock pursuant to the Registration
Statement on Form S-11.

       

      “Organization
and Offering Expenses” means all expenses incurred by or on behalf of the
General Partner in connection with or in preparing the General Partner for
registration of and subsequently offering and distributing its shares of Common
Stock to the public, whether incurred before, on or after the date of the
Advisory Agreement, which may include total underwriting and brokerage discounts
and commissions (including fees of the underwriters’ attorneys); any expense
allowance granted by the General Partner to the underwriter or any reimbursement
of expenses of the underwriter by the General Partner; expenses for printing,
engraving and mailing; compensation of employees while engaged in sales
activity; charges of transfer agents, registrars, trustees, escrow holders,
depositaries and experts; and expenses of qualification of the sale of the
securities under federal and state laws, including taxes and fees, accountants’
and attorneys’ fees.

       

      “Partner”
means the General Partner or a Limited Partner, and “Partners” means the General
Partner and the Limited Partners collectively.  Solely for purposes of
Exhibit B, “Partner” shall include the Special Limited Partner.

       

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

       

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

       

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

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      “Partnership”
means the limited partnership formed under the Act and pursuant to this
Agreement, and any successor thereto.

       

      “Partnership
Interest” means an ownership interest in the Partnership representing a
Capital Contribution 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 Partnership
Units.

       

      “Partnership
Minimum Gain” has the meaning set forth in Section 1.704-2(b)(2) of the
Regulations, and the amount of Partnership Minimum Gain, as well as any net
increase or decrease in a Partnership Minimum Gain, for a Partnership taxable
year shall be determined in accordance with the rules of Section 1.704-2(d) of
the Regulations.

       

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

       

      “Partnership
Unit” means a fractional, undivided share of the Partnership Interests of
all Partners issued pursuant to Sections 4.1, 4.2 and 4.3 and includes any
classes or series of Partnership Units established after the date hereof. The
number of Partnership Units outstanding and the Percentage Interests in the
Partnership represented by such Partnership Units are set forth in Exhibit A, as
such Exhibit may be amended from time to time. The ownership of Partnership
Units shall be evidenced by such form of certificate for Partnership Units as
the General Partner adopts from time to time unless the General Partner
determines that the Partnership Units shall be uncertificated
securities.

       

      “Partnership
Year” means the fiscal year of the Partnership, as set forth in Section
9.2 hereof.

       

      “Percentage
Interest” means, as to a Partner, the fractional part of the Partnership
Interests owned by such Partner and expressed as a percentage as specified in
Exhibit A, as such Exhibit may be amended from time to time.

       

      “Permitted
Investments” means all investments (other than Properties and Loans) in
which the Partnership acquires an interest, either directly or indirectly,
including through ownership interests in a joint venture or other entity,
pursuant to the Certificate, this Agreement and the investment objectives and
policies adopted by the General Partner from time to time, other than short-term
investments acquired for purposes of cash management, and that allow the General
Partner to meet the REIT Requirements.

       

      “Permitted
Transferee” means any person to whom Partnership Units are Transferred in
accordance with Section 11.3 of this Agreement.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      “Person”
means an individual or Entity.

       

      “Precontribution
Gain” has the meaning set forth in subparagraph 4(c) of Exhibit
B.

       

      “Property”
or “Properties”
means any real property or properties transferred or conveyed to the Partnership
or any subsidiary of the Partnership, either directly or indirectly, and/or any
real property or properties transferred or conveyed to a joint venture or
partnership in which the Partnership is, directly or indirectly, a co-venturer
or partner.

       

      “Quarter”
means each of the three-month periods ending on March 31, June 30, September 30
and December 31.

       

      “Registration
Statement” means the Registration Statement on Form S-11 to be filed by
the General Partner with the Securities and Exchange Commission, and any
amendments at any time made thereto.

       

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

       

      “Regulatory
Allocations” means the allocations set forth in paragraph 2 of Exhibit
B.

       

       “REIT”
means a real estate investment trust as defined in Section 856 of the
Code.

       

      “REIT
Requirements” has the meaning set forth in Section 5.2.

       

      “Sales”
has the meaning set forth in the Articles of Incorporation.

       

       “Service
Provider” means Lincoln Retail REIT Services, LLC or any other Person or
Persons, if any, appointed, employed or contracted with by the Initial Limited
Partner to perform any of the services required to be performed by the Initial
Limited Partner pursuant to the Advisory Agreement.

       

      “Special
Limited Partner” means American Realty Capital Retail Advisor, LLC, a
Delaware limited liability company, which shall be a limited partner of the
Partnership and recognized as such under applicable Delaware law, but not a
“Limited Partner” within the meaning of this Agreement.

       

      “Special
Limited Partner Interest” means the interest of the Special Limited
Partner in the Partnership representing its right as the holder of an interest
in distributions described in Sections 5.1(b)(iii)(A), (c), (d) and
(e)  (and any corresponding allocations of income, gain, loss and
deduction under this Agreement).

       

      “Stockholder”
means a holder of Common Stock.

       

      “Stockholder
Distributions” means any distributions of money or other property by the
General Partner to Stockholders, including distributions that may constitute a
return of capital for U.S. federal income tax purposes.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      “Subsidiary”
means, with respect to any Person, any corporation, partnership, limited
liability company or other entity of which a majority of

       

      (a)           the
voting power of the voting equity securities; and/or

       

      (b)           the
outstanding equity interests (whether or not voting), 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.

       

      “Tax
Allocations” means the allocations set forth in paragraph 4 of Exhibit
B.

       

       “Tax
Items” has the meaning set forth in paragraph 4(a) of Exhibit
B.

       

      “Termination
Amount” has the meaning set forth in Section 5.1(d)(i)
hereof.

       

      “Transfer”
as a noun, means any sale, assignment, conveyance, pledge, hypothecation, gift,
encumbrance or other transfer, and as a verb, means to sell, assign, convey,
pledge, hypothecate, give, encumber or otherwise transfer.

       

      “Valuation
Date” means the date of receipt by the Partnership and the General
Partner of notice from an exchanging Partner that such Partner is exercising its
Exchange Rights or, if such date is not a Business Day, the first Business Day
thereafter.

       

      Certain
additional terms and phrases have the meanings set forth in Exhibit
B.

       

       

      ARTICLE
2

      ORGANIZATIONAL
MATTERS

       

      
        	
                2.1

              	
                Formation

              

      

       

      The
General Partner has formed the Partnership by filing the Certificate on July 29,
2010 in the office of the Delaware Secretary of State.  The
Partnership is a limited partnership organized pursuant to the provision of the
Act and upon the terms and conditions set forth in this
Agreement.  Except as expressly provided herein to the contrary, the
rights and obligations of the Partners and the administration and termination of
the Partnership shall be governed by the Act. The Partnership Interest of each
Partner shall be personal property for all purposes.

       

      
        	
                2.2

              	
                Name

              

      

       

      The name
of the Partnership is American Realty Capital Retail Operating Partnership,
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 words “Limited Partnership,” “LP,”
“Ltd.” or similar words or letters shall be included in the Partnership’s name
where necessary for the purposes of complying with the laws of any jurisdiction
that so requires. The General Partner in its sole and absolute discretion may
change the name of the Partnership and shall notify the Limited Partners of such
change in the next regular communication to the Limited Partners.

       

      
        
           

        

        
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                2.3

              	
                Registered Office and
      Agent; Principal Office

              

      

       

      The
address of the registered office of the Partnership in the State of Delaware and
the name and address of the registered agent for service of process on the
Partnership in the State of Delaware is the Corporation Service Company, 2711
Centerville Road Suite 400, Wilmington, Delaware 19808. The principal office of
the Partnership shall be 405 Park Avenue, New York, New York 10022, or such
other place as the General Partner may from time to time designate by notice to
the Limited Partners. The Partnership may maintain offices at such other place
or places within or outside the State of Delaware as the General Partner deems
advisable.

       

      
        	
                2.4

              	
                Power of
      Attorney

              

      

       

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

       

      (i)           execute,
swear to, acknowledge, deliver, file and record in the appropriate public
offices

       

      (A)           all
certificates, documents and other instruments (including, without limitation,
this Agreement and the Certificate and all amendments or restatements thereof)
that the General Partner or the Liquidator deems appropriate or necessary to
form, qualify or continue the existence or qualification of the Partnership as a
limited partnership (or a partnership in which the Limited Partners have limited
liability) in the State of Delaware and in all other jurisdictions in which the
Partnership may or plans to conduct business or own property, including, without
limitation, any documents necessary or advisable to convey any Contributed
Property to the Partnership;

       

      (B)           all
instruments that the General Partner or any Liquidator deems appropriate or
necessary to reflect any amendment, change, modification or restatement of this
Agreement in accordance with its terms;

       

      (C)           all
conveyances and other instruments or documents that the General Partner or any
Liquidator deems appropriate or necessary to reflect the dissolution and
liquidation of the Partnership pursuant to the terms of this Agreement,
including, without limitation, a certificate of cancellation;

       

      (D)           all
instruments relating to the admission, withdrawal, removal or substitution of
any Partner pursuant to, or other events described in, Article 11, 12 or 13
hereof or the Capital Contribution of any Partner;

       

      
        
           

        

        
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      (E)           all
certificates, documents and other instruments relating to the determination of
the rights, preferences and privileges of Partnership Interest; and

       

      (F)           amendments
to this Agreement as provided in Article 14 hereof; and

       

      (ii)           execute,
swear to, seal, acknowledge and file all ballots, consents, approvals, waivers,
certificates and other instruments appropriate or necessary, in the sole and
absolute discretion of the General Partner or any Liquidator, to make, evidence,
give, confirm or ratify any vote, consent, approval, agreement or other action
which is made or given by the Partners hereunder or is consistent with the terms
of this Agreement or appropriate or necessary, in the sole discretion of the
General Partner or any Liquidator, to effectuate the terms or intent of this
Agreement.

       

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

       

      (b)           (i)           The
foregoing power of attorney is hereby declared to be irrevocable and a power
coupled with an interest, in recognition of the fact that each of the Partners
will be relying upon the power of the General Partner and any Liquidator to act
as contemplated by this Agreement in any filing or other action by it on behalf
of the Partnership, and it shall survive and not be affected by the subsequent
Incapacity of any Limited Partner or Assignee and the Transfer of all or any
portion of such Limited Partner’s or Assignee’s Partnership Units and shall
extend to such Limited Partner’s or Assignee’s heirs, successors, assigns and
personal representatives.

       

      (ii)           Each
such Limited Partner or Assignee hereby agrees to be bound by any representation
made by the General Partner or any Liquidator, acting in good faith pursuant to
such power of attorney, and each such Limited Partner or Assignee hereby waives
any and all defenses which may be available to contest, negate or disaffirm the
action of the General Partner or any Liquidator, taken in good faith under such
power of attorney.

       

      (iii)           Each
Limited Partner or Assignee shall execute and deliver to the General Partner or
the Liquidator, within fifteen (15) days after receipt of the General Partner’s
or Liquidator’s request therefore, 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

              

      

       

      The term
of the Partnership shall commence on the date hereof and shall continue until
December 31, 2099, unless the Partnership is dissolved sooner pursuant to the
provisions of Article 13 or as otherwise provided by law.

       

      
        
           

        

        
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      ARTICLE
3

      PURPOSE

       

      
        	
                3.1

              	
                Purpose and
      Business

              

      

       

      (a)           The
purpose and nature of the business to be conducted by the Partnership is to
conduct any business that may be lawfully conducted by a limited partnership
organized pursuant to the Act including, without limitation, to engage in the
following activities:

       

      (i)           to
acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease,
transfer, encumber, convey, exchange, and otherwise dispose of or deal with the
properties described in the prospectus contained in the Registration
Statement;

       

      (ii)           to
acquire, hold, own, develop, construct, improve, maintain, operate, sell, lease,
transfer, encumber, convey, exchange, and otherwise dispose of or deal with real
and personal property of all kinds;

       

      (iii)           to
enter into any partnership, joint venture, corporation, limited liability
company, trust or other similar arrangement to engage in any of the
foregoing;

       

      (iv)           to
undertake such other activities as may be necessary, advisable, desirable or
convenient to the business of the Partnership; and

       

      (v)           to
engage in such other ancillary activities as shall be necessary or desirable to
effectuate the foregoing purposes;

       

      provided, however, that such business
shall be limited to and conducted in such a manner as to permit the General
Partner at all times to be classified as a REIT, unless the General Partner
determines not to qualify as a REIT or ceases to qualify as a REIT for any
reason not related to the business conducted by the Partnership.

       

      (b)           The
Partnership shall have all powers necessary or desirable to accomplish the
purposes enumerated.

       

      
        	
                3.2

              	
                Powers

              

      

       

      (a)           The
Partnership is empowered to do any and all acts and things necessary,
appropriate, proper, advisable, incidental to or convenient for the furtherance
and accomplishment of the purposes and business described herein and for the
protection and benefit of the Partnership including, without limitation, full
power and authority to enter into, perform, and carry out contracts of any kind,
to borrow money and to issue evidences of indebtedness, whether or not secured
by mortgage, trust deed, pledge or other Lien, and, directly or indirectly, to
acquire, own, improve, develop and construct real property, and lease, sell,
transfer and dispose of real property; provided, 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, unless the General Partner otherwise ceases to qualify as a
REIT;

       

      
        
           

        

        
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      (ii)           could
subject the General Partner to any additional taxes under Section 857 or Section
4981 of the Code; or

       

      (iii)           could
violate any law or regulation of any governmental body or agency having
jurisdiction over the General Partner or its securities, unless such action (or
inaction) shall have been specifically consented to by the General Partner in
writing.

       

      (b)           The
General Partner also is empowered to do any and all acts and things necessary,
appropriate or advisable to ensure that the Partnership will not be classified
as a “publicly traded partnership” for the purposes of Section 7704 of the Code,
including but not limited to imposing restrictions on exchanges of Partnership
Units.

       

       

      ARTICLE
4

      CAPITAL
CONTRIBUTIONS

       

      
        	
                4.1

              	
                Capital Contributions
      of the Partners

              

      

       

      (a)           The
General Partner and Initial Limited Partner have made the Capital Contributions
as set forth in Exhibit A to this Agreement.

       

      (b)           To
the extent the Partnership acquires any property by the merger of any other
Person into the Partnership or the contribution of assets by any other Person,
Persons who receive Partnership Interests in exchange for their interests in the
Person merging into or contributing assets to the Partnership shall become
Partners and shall be deemed to have made Capital Contributions as provided in
the applicable merger agreement or contribution agreement and as set forth in
Exhibit A, as amended to reflect such deemed Capital Contributions.

       

      (c)           Each
Partner shall own Partnership Units in the amounts set forth for such Partner in
Exhibit A and shall have a Percentage Interest in the Partnership as set forth
in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time
to time by the General Partner to the extent necessary to reflect accurately
exchanges, additional Capital Contributions, the issuance of additional
Partnership Units or similar events having an effect on any Partner’s Percentage
Interest.

       

      (d)           The
number of Partnership Units held by the General Partner, in its capacity as
general partner, shall be deemed to be the General Partner
Interest.

       

      (e)           Except
as provided in Sections 4.2 and 10.5, the Partners shall have no obligation to
make any additional Capital Contributions or provide any additional funding to
the Partnership (whether in the form of loans, repayments of loans or otherwise)
and no Partner shall have any obligation to restore any deficit that may exist
in its Capital Account, either upon a liquidation of the Partnership or
otherwise.

       

      
        	
                4.2

              	
                Additional Funds;
      Restrictions on the General
Partner

              

      

       

      (a)           (i)           The
sums of money required to finance the business and affairs of the Partnership
shall be derived from the initial Capital Contributions made to the Partnership
by the Partners as set forth in Section 4.1 and from funds generated from the
operation and business of the Partnership, including, without limitation, rents
and distributions directly or indirectly received by the Partnership from any
Subsidiary.

      
        
           

        

        
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      (ii)           If
additional financing is needed from sources other than as set forth in Section
4.2(a)(i) for any reason, the General Partner may, in its sole and absolute
discretion, in such amounts and at such times as it solely shall determine to be
necessary or appropriate,

       

      (A)           cause
the Partnership to issue additional Partnership Interests and admit additional
Limited Partners to the Partnership in accordance with Section 4.3;

       

      (B)           make
additional Capital Contributions to the Partnership (subject to the provisions
of Section 4.2(b));

       

      (C)           cause
the Partnership to borrow money, enter into loan arrangements, issue debt
securities, obtain letters of credit or otherwise borrow money on a secured or
unsecured basis;

       

      (D)           make
a loan or loans to the Partnership (subject to Section 4.2(b)); or

       

      (E)           sell
any assets or properties directly or indirectly owned by the
Partnership.

       

      (iii)           In
no event shall any Limited Partners be required to make any additional Capital
Contributions or any loan to, or otherwise provide any financial accommodation
for the benefit of, the Partnership.

       

      (b)           The
General Partner shall not issue any debt securities, any preferred stock or any
common stock (including additional Common Stock (other than (i) as payment of
the Common Stock Amount or (ii) in connection with the conversion or exchange of
securities of the General Partner solely in conversion or exchange for other
securities of the General Partner)) or rights, options, warrants or convertible
or exchangeable securities containing the right to subscribe for or purchase any
of the foregoing (collectively, “Securities”), other
than to all holders of Common Stock, unless the General Partner
shall

       

      (i)           in
the case of debt securities, lend to the Partnership the proceeds of or
consideration received for such Securities on the same terms and conditions,
including interest rate and repayment schedule, as shall be applicable with
respect to or incurred in connection with the issuance of such Securities and
the proceeds of, or consideration received from, any subsequent exercise,
exchange or conversion thereof (if applicable);

       

      (ii)           in
the case of equity Securities senior or junior to the Common Stock as to
dividends and distributions on liquidation, contribute to the Partnership the
proceeds of or consideration (including any property or other non-cash assets)
received for such Securities and the proceeds of, or consideration received
from, any subsequent exercise, exchange or conversion thereof (if applicable),
and receive from the Partnership, interests in the Partnership in consideration
therefor with the same terms and conditions, including dividend, dividend
priority and liquidation preference, as are applicable to such Securities;
and

       

      
        
           

        

        
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      (iii)           in
the case of Common Stock or other equity Securities on a parity with the Common
Stock as to dividends and distributions on liquidation, (including, without
limitation, Common Stock or other Securities granted as a stock award to
directors and officers of the General Partner or directors, officers or
employees of its Affiliates in consideration for services or future services,
and Common Stock issued a pursuant to a dividend reinvestment plan or issued to
enable the General Partner make distributions to satisfy the REIT Requirements),
contribute to the Partnership the proceeds of or consideration (including any
property or other non-cash assets, including services) received for such
Securities and the proceeds of, or consideration received from, any subsequent
exercise, exchange or conversion thereof (if applicable), and receive from the
Partnership a number of additional Partnership Units in consideration therefor
equal to the product of

       

      (A)           the
number of shares of Common Stock or other equity Securities issued by the
General Partner, multiplied by

       

      (B)           a
fraction the numerator of which is one and the denominator of which is the
Exchange Factor in effect on the date of such contribution.

       

      
        	
                4.3

              	
                Issuance of Additional
      Partnership Interests; Admission of Additional Limited
      Partners

              

      

       

      (a)           In
addition to any Partnership Interests issuable by the Partnership pursuant to
Section 4.2, the General Partner is authorized to cause the Partnership to issue
additional Partnership Interests (or options therefore) in the form of
Partnership Units or other Partnership Interests in one or more series or
classes, or in one or more series of any such class senior, on a parity with, or
junior to the Partnership Units to any Persons at any time or from time to time,
on such terms and conditions, as the General Partner shall establish in each
case in its sole and absolute discretion subject to Delaware law, including,
without limitation, (i) the allocations of items of Partnership income, gain,
loss, deduction and credit to each class or series of Partnership Interests,
(ii) the right of each class or series of Partnership Interests to share in
Partnership distributions, and (iii) the rights of each class or series of
Partnership Interest upon dissolution and liquidation of the Partnership; provided, that, no such
Partnership Interests shall be issued to the General Partner unless either (a)
the Partnership Interests are issued in connection with the grant, award, or
issuance of Common Stock or other equity interests in the General Partner having
designations, preferences and other rights such that the economic interests
attributable to such Common Stock or other equity interests are substantially
similar to the designations, preferences and other rights (except voting rights)
of the Partnership Interests issued to the General Partner in accordance with
this Section 4.3(a) or (b) the additional Partnership Interests are issued to
all Partners holding Partnership Interests in the same class in proportion to
their respective Percentage Interests in such class, without any approval being
required from any Limited Partner or any other Person; and provided, however,
that

       

      
        
           

        

        
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      (i)           such
issuance does not cause the Partnership to become, with respect to any employee
benefit plan subject to Title I of ERISA or Section 4975 of the Code, a “party
in interest” (as defined in Section 3(14) of ERISA) or a “disqualified person”
(as defined in Section 4975(e) of the Code); and

       

      (ii)           such
issuance would not cause any portion of the assets of the Partnership to
constitute assets of any employee benefit plan pursuant to Section 2510.3-101 of
the regulations of the United States Department of Labor.

       

      (b)           Subject
to the limitations set forth in Section 4.3(a), the General Partner may take
such steps as it, in its sole and absolute discretion, deems necessary or
appropriate to admit any Person as a Limited Partner of the Partnership or to
issue any Partnership Interests, including, without limitation, amending the
Certificate, Exhibit A or any other provision of this Agreement.

       

      
        	
                4.4

              	
                Contribution of
      Proceeds of Issuance of Common
Stock

              

      

       

      In
connection with any offering, grant, award, or issuance of Common Stock or
securities, rights, options, warrants or convertible or exchangeable securities
pursuant to Section 4.2, the General Partner shall make aggregate Capital
Contributions to the Partnership of the proceeds raised in connection with such
offering, grant, award, or issuance, including any property issued to the
General Partner pursuant to a merger or contribution agreement in exchange for
Common Stock; provided, however, that if the proceeds actually received by the
General Partner are less than the gross proceeds of such offering, grant, award,
or issuance as a result of any underwriter’s discount, commission, or fee or
other expenses paid or incurred in connection with such offering, grant, award,
or issuance, then the General Partner shall make a Capital Contribution to the
Partnership in the amount equal to the sum of (i) the net proceeds of such
issuance plus (ii) an intangible asset in an amount equal to the capitalized
costs of the General Partner relating to such issuance of Common
Stock.  Upon any such Capital Contribution by the General Partner, the
Capital Account of the General Partner shall be increased by the amount of its
Capital Contribution as described in the previous sentence.

       

      
        	
                4.5

              	
                Repurchase of Common
      Stock; Shares-In-Trust

              

      

       

      (a)           If
the General Partner shall elect to purchase from its stockholders Common Stock
for the purpose of delivering such Common Stock to satisfy an obligation under
any distribution reinvestment plan adopted by the General Partner, any employee
stock purchase plan adopted by the General Partner, or for any other purpose,
the purchase price paid by the General Partner for such Common Stock and any
other expenses incurred by the General Partner in connection with such purchase
shall be considered expenses of the Partnership and shall be reimbursed to the
General Partner, subject to the condition that:

       

      (i)           if
such Common Stock subsequently is to be sold by the General Partner, the General
Partner shall pay to the Partnership any proceeds received by the General
Partner from the sale of such Common Stock (provided that an exchange of Common
Stock for Partnership Units pursuant to the applicable Exchange Rights Agreement
would not be considered a sale for such purposes); and

       

      
        
           

        

        
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      (ii)           if
such Common Stock is not re-transferred by the General Partner within 30 days
after the purchase thereof, the General Partner shall cause the Partnership to
cancel a number of Partnership Units held by the General Partner (as applicable)
equal to the product of

       

      (x)           the
number of shares of such Common Stock, multiplied by

       

      (y)           a
fraction, the numerator of which is one and the denominator of which is the
Exchange Factor in effect on the date of such cancellation.

       

      (b)           If
the General Partner purchases Shares-in-Trust (as from time to time defined in
the Articles of Incorporation, as may be amended from time to time), the
Partnership will purchase from the General Partner a number of Partnership Units
equal to the product of

       

      (i)           the
number of Shares-in-Trust purchased by the General Partner, multiplied
by

       

      (ii)           a
fraction, the numerator of which is one and the denominator of which is the
Exchange Factor in effect on the date of such purchase.

       

      
        	
                4.6

              	
                No Third-Party
      Beneficiary

              

      

       

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

       

      
        	
                4.7

              	
                No Interest; No
      Return

              

      

       

      (a)           No
Partner shall be entitled to interest on its Capital Contribution or on such
Partner’s Capital Account.

       

      (b)           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

              	
                No Preemptive
      Rights.

              

      

       

      Subject
to any preemptive rights that may be granted pursuant to Section 4.3 hereof, no
Person shall have any preemptive or other similar right with respect
to

       

      (a)           additional
Capital Contributions or loans to the Partnership; or

       

      (b)           issuance
or sale of any Partnership Units or other Partnership Interests.

       

      
        
           

        

        
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      ARTICLE
5

      DISTRIBUTIONS

       

      
        	
                5.1

              	
                Distributions

              

      

       

      (a)           Cash Available for
Distribution.  Subject to the provisions of Sections 5.3, 5.4
and 12.2(c), the General Partner shall cause the Partnership to distribute, at
such times as the General Partner shall determine (each a “Distribution Date”),
an amount of Cash Available for Distribution, determined by the General Partner
in its sole discretion to the Limited Partners and the General Partner, as of
the applicable Partnership Record Date, in accordance with each such Partner’s
respective Percentage Interest.  In no event may any Partner receive a
distribution pursuant to this Section 5.1(a) with respect to a Partnership Unit
if such Partner is entitled to receive a distribution with respect to Common
Stock for which such a Partnership Unit has been exchanged.

       

      (b)           Net Sales
Proceeds.  Subject to the provisions of Sections 5.1(e), 5.3,
5.4 and 12.2(c), Net Sales Proceeds shall be distributed as
follows:

       

      (i)           First, 100% to the
General Partner and Limited Partners in accordance with each such Partner’s
respective Percentage Interest until the Net Investment balance of the
Stockholders is zero;

       

      (ii)           Second, 100% to the
General Partner and Limited Partners in accordance with each such Partner’s
respective Percentage Interest until the First Level Return balance of the
Stockholders is zero; and

       

      (iii)           Thereafter, (A) 15%
to the Special Limited Partner, and (B) 85% to the General Partner and Limited
Partners in the case of this clause (B) in accordance with each such Partner’s
respective Percentage Interest.

       

      (c)           Listing
Amounts.  Upon Listing and subject to Section 5.1(e), the
General Partner shall cause the Partnership to issue and distribute to the
Special Limited Partner in redemption of the Special Limited Partner Interest a
Note (the “Listing
Note”) in an amount equal to 15% of the amount, if any, by which (i) the
sum of (A) the Market Value of all issued and outstanding shares of Common Stock
plus (B) the sum of all Stockholder Distributions paid by the General Partner
prior to Listing, exceeds (ii) the sum of (Y) the total Gross Proceeds in all
Offerings plus (Z) the total amount of cash that, if distributed to those
Stockholders who purchased shares of Common Stock in an Offering, would have
provided such Stockholders a First Level Return on the Gross Proceeds raised in
all such Offerings.  Notwithstanding anything herein to the contrary,
in accordance with Section 736 of the Code, the Listing Note shall be
disregarded for applicable income tax purposes and the Special Limited Partner
shall continue to be treated as a partner of the Partnership in respect of its
Special Limited Partner Interest for such purposes until the Partnership has
satisfied all of its obligations under the Listing Note.  Without
limiting the foregoing, the Special Limited Partner shall not be required to
accrue interest on the Listing Note in income and the Partnership shall not
deduct such interest for such purposes; provided, that, any cash or property
paid to the Special Limited Partner with respect to such interest shall be
reported to the Special Limited Partner on Internal Revenue Service Schedule K-1
to Form 1065 (or such successor schedule or form).

       

      
        
           

        

        
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      (d)           Termination
Amounts.

       

      (i)           Upon
termination of the Advisory Agreement and subject to Sections 5.1(d)(ii) and
(e), the General Partner shall cause the Partnership to distribute an amount to
the Special Limited Partner in redemption of the Special Limited Partner
Interest (the “Termination Amount”)
in the form of a Note equal to 15% of the amount, if any, by which (A) the sum
of (1) the fair market value (determined by appraisal as of the Advisory
Agreement Termination Date) of the Investments on the Advisory Agreement
Termination Date, minus (2) any Loans secured by such Investments, plus (3) the
sum of all Stockholder Distributions paid by the General Partner through the
Advisory Agreement Termination Date on shares of Common Stock issued in all
Offerings through the Advisory Agreement Termination Date, minus (4) any amounts
distributable as of the Advisory Agreement Termination Date to the Limited
Partners who received Partnership Units in connection with the contribution of
any Investments to the Partnership, upon the liquidation or sale of such
Investments (assuming the liquidation or sale of such Investments on the
Advisory Agreement Termination Date), exceeds (B) the sum of (1) the Gross
Proceeds raised in
all Offerings through the Advisory Agreement Termination Date (less amounts paid
on or prior to the Advisory Agreement Termination Date to purchase or redeem any
shares of Common Stock purchased in an Offering pursuant to the General
Partner’s share repurchase plan) plus (2) the total amount of cash that, if
distributed to those Stockholders who purchased shares of Common Stock in an
Offering on or prior to the Advisory Agreement Termination Date, would have
provided such Stockholders a First Level Return on the Gross Proceeds raised in
all Offerings through the Advisory Agreement Termination Date, measured for the
period from inception through the Advisory Agreement Termination
Date.  Notwithstanding anything herein to the contrary, in accordance
with Section 736 of the Code, the Termination Amount in the Form of a Note shall
be disregarded for applicable income tax purposes and the Special Limited
Partner shall continue to be treated as a partner of the Partnership in respect
of its Special Limited Partner Interest for such purposes until the Partnership
has satisfied all of its obligations under such Note.  Without
limiting the foregoing, the Special Limited Partner shall not be required to
accrue interest on such Note in income and the Partnership shall not deduct such
interest for such purposes; provided, that, any cash or property paid to the
Special Limited Partner with respect to such interest shall be reported to the
Special Limited Partner on Internal Revenue Service Schedule K-1 to Form 1065
(or such successor schedule or form).

       

      (ii)           Upon
termination of the Advisory Agreement and subject to Section 5.1(e), the Special
Limited Partner may elect to defer its right to receive the Termination Amount
until either a Listing or Investment Liquidation Event occurs.

       

      (A)           If
there is a subsequent Listing, then the Special Limited Partner shall be
entitled to receive the Termination Amount (in redemption of the Special Limited
Partner Interest) equal to 15% of the amount, if any, by which (1) the sum
of (w) the fair market value (determined by

       

      
        
           

        

        
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      appraisal
as of the date of Listing) of the Investments owned as of the Advisory Agreement
Termination Date and any Investments acquired after the Advisory Agreement
Termination Date for which a contract to acquire such Investment had been
entered into by the General Partner as of the Advisory Agreement Termination
Date (collectively, the “Included Assets”),
minus (x) any Loans secured by the Included Assets, plus (y) the sum of all
Stockholder Distributions paid by the General Partner through the date of
Listing on shares of Common Stock issued in Offerings through the Advisory
Agreement Termination Date, minus (z) any amounts distributable as of the date
of Listing to the Limited Partners who received Partnership Units in connection
with the contribution of any Included Assets to the Partnership, upon the
liquidation or sale of such Included Assets (assuming the liquidation or sale of
such Included Assets on the date of Listing), exceeds (2) the sum of (y) the
Gross Proceeds raised in all Offerings through the Advisory Agreement
Termination Date (less amounts paid on or prior to the date of Listing to
purchase or redeem any shares of Common Stock purchased in an Offering on or
prior to the Advisory Agreement Termination Date pursuant to the General
Partner’s share repurchase plan), plus (z) the total amount of cash that, if
distributed to those Stockholders who purchased shares of Common Stock in an
Offering on or prior to the Advisory Agreement Termination Date, would have
provided such Stockholders a First Level Return on the Gross Proceeds raised in
all Offerings through the Advisory Agreement Termination Date, measured for the
period from inception through the date of Listing. 

       

      (B)           If
there is a subsequent Investment Liquidation Event, then the Special Limited
Partner shall be entitled to receive the Termination Amount (in redemption of
the Special Limited Partner Interest) payable out of Net Sales Proceeds equal to
15% of the amount, if any, by which (1) the sum of (u) the fair market value
(determined by appraisal as of the date of the Investment Liquidation Event) of
Investments owned as of the Advisory Agreement Termination Date, minus (v) any
Loans secured by such Investments owned as of the Advisory Agreement Termination
Date, plus (w) the fair market value (determined by appraisal as of the date of
the Investment Liquidation Event) of the Included Assets, minus (x) any Loans
secured by the Included Assets, plus (y) the sum of all Stockholder
Distributions paid by the General Partner through the date of the Investment
Liquidity Event on shares of Common Stock issued in Offerings through the
Advisory Agreement Termination Date, minus (z) any amounts distributable as of
the date of the Investment Liquidation Event to the Limited Partners who
received Partnership Units in connection with the contribution of any Included
Assets to the Partnership, upon the liquidation or sale of such Included Assets
(assuming the liquidation or sale of such Included Assets on the date of the
Investment Liquidation Event), exceeds (2) the sum of (y) the Gross Proceeds
raised in all Offerings through the Advisory Agreement Termination Date (less
amounts paid on or prior to the date of the Other Liquidity Event to purchase or
redeem any shares of Common Stock purchased in an Offering on or prior to the
Advisory Agreement Termination Date pursuant to the General Partner’s share
repurchase plan), plus (z) the total amount of cash that, if distributed to
those Stockholders who purchased shares of Common Stock in an Offering on or
prior to the Advisory Agreement Termination Date, would have provided such
Stockholders First Level Return on the Gross Proceeds raised in all Offerings
through the Advisory Agreement Termination Date, measured for the period from
inception through the date of the Investment Liquidity Event.

       

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

      (e)           Coordination.

       

      (i)           Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section
5.1(b) prior to a Listing shall reduce dollar for dollar the amount of a Listing
Note to be issued and distributed pursuant to Section 5.1(c).  If the
Special Limited Partner receives a Listing Note pursuant to Section 5.1(c), it
would no longer be entitled to receive Net Sales Proceeds or a Termination
Amount.

       

      (ii)           Any
Net Sales Proceeds paid to the Special Limited Partner pursuant to Section
5.1(b) prior to the Advisory Agreement Termination Date shall reduce dollar for
dollar the amount of a Termination Amount to be distributed pursuant to Section
5.1(d).  If the Special Limited Partner receives, or is entitled to
receive, a Termination Amount pursuant to Section 5.1(d), it would no longer be
entitled to receive Net Sales Proceeds (except to the extent described in
Section 5.1(d)(ii)) or a Listing Note.

       

      (iii)           If
the Special Limited Partner chooses in its discretion to receive all or a
portion of a Listing Note or the Termination Amount payable pursuant to Section
5.1(d)(i) with shares of Common Stock, the amount of the Listing Note or such
Termination Amount due to the Special Limited Partner shall be reduced by (y)
the Market Value, with respect to the Listing Note and (z) the fair market
value, with respect to such Termination Amount, of the Common Stock on the date
such Common Stock is issued to the Special Limited Partner.

       

      
        	
                5.2

              	
                Qualification as a
      REIT

              

      

       

      The
General Partner shall use its best efforts to cause the Partnership to
distribute sufficient amounts under this Article 5 to enable the General Partner
to pay dividends to the Stockholders that will enable the General Partner
to

       

      (a)           satisfy
the requirements for qualification as a REIT under the Code and Regulations
(“REIT
Requirements”), and

       

      (b)           avoid
any federal income or excise tax liability;

       

      provided, however, the General Partner
shall not be bound to comply with this covenant to the extent such distributions
would

       

      (x)           violate
applicable Delaware law or

       

      (y)           contravene
the terms of any notes, mortgages or other types of debt obligations to which
the Partnership may be subject in conjunction with borrowed funds.

       

      
        
           

        

        
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                5.3

              	
                Withholding

              

      

       

      With
respect to any withholding tax or other similar tax liability or obligation to
which the Partnership may be subject as a result of any act or status of any
Partner or the Special Limited Partner or to which the Partnership becomes
subject with respect to any Partnership Unit or the Special Limited Partner
Interest, the Partnership shall have the right to withhold amounts distributable
pursuant to this Article V to such Partner or the Special Limited Partner or
with respect to such Partnership Units or the Special Limited Partner Interest,
to the extent of the amount of such withholding tax or other similar tax
liability or obligation pursuant to the provisions contained in Section 10.5,
and the amount of any withholding shall reduce the right of such Partner or the
Special Limited Partner to future distribution to the extent provided in Section
10.5.

       

      
        	
                5.4

              	
                Additional Partnership
      Interests

              

      

       

      If the
Partnership issues Partnership Interests in accordance with Section 4.2 or 4.3,
the distribution priorities set forth in Section 5.1 shall be amended, as
necessary, to reflect the distribution priority of such Partnership Interests
and corresponding amendments shall be made to the provisions of Exhibit
B.

       

       

      ARTICLE
6

      ALLOCATIONS

       

      
        	
                6.1

              	
                Allocations

              

      

       

      The Net
Income, Net Loss and other Partnership items shall be allocated pursuant to the
provisions of Exhibit B.

       

      
        	
                6.2

              	
                Revisions to
      Allocations to Reflect Issuance of Partnership
      Interests

              

      

       

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

       

       

      ARTICLE
7

      MANAGEMENT
AND OPERATIONS OF BUSINESS

       

      
        	
                7.1

              	
                Management

              

      

       

      (a)           (i)           Except
as otherwise expressly provided in this Agreement, full, complete and exclusive
discretion to manage and control the business and affairs of the Partnership are
and shall be vested in the General Partner, and no Limited Partner shall have
any right to participate in or exercise control or management power over the
business and affairs of the Partnership.

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      (ii)           The
General Partner may not be removed by the Limited Partners with or without
cause.

       

      (iii)           In
addition to the powers now or hereafter granted a general partner of a limited
partnership under applicable law or which are granted to the General Partner
under any other provision of this Agreement, the General Partner, subject to
Section 7.11, 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)           (1)           the
making of any expenditures, the lending or borrowing of money, including,
without limitation, making prepayments on loans and borrowing money to permit
the Partnership to make distributions to its Partners in such amounts as will
permit the General Partner (so long as the General Partner qualifies as a REIT)
to avoid the payment of any federal income tax (including, for this purpose, any
excise tax pursuant to Section 4981 of the Code) and to make distributions to
its stockholders in amounts sufficient to permit the General Partner to maintain
REIT status,

       

      (2)           the
assumption or guarantee of, or other contracting for, indebtedness and other
liabilities,

       

      (3)           the
issuance of evidence of indebtedness (including the securing of the same by
deed, mortgage, deed of trust or other lien or encumbrance on the Partnership’s
assets) and

       

      (4)           the
incurring of any obligations it deems necessary for the conduct of the
activities of the Partnership, including the payment of all expenses associated
with the General Partner;

       

      (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 or the General Partner;

       

      (C)           the
acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or
exchange of all or substantially all of the assets of the Partnership (including
the exercise or grant of any conversion, option, privilege, or subscription
right or other right available in connection with any assets at any time held by
the Partnership) or the merger, consolidation or other combination (each a
“Business
Combination”) of the Partnership with or into another Entity on such
terms as the General Partner deems proper, provided that the General Partner
shall be required to send to each Limited Partner a notice of such proposed
Business Combination no less than 15 days prior to the record date for the vote
of the General Partner’s stockholders on such Business Combination, if
any;

       

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

      (D)           the
use of the assets of the Partnership (including, without limitation, cash on
hand) for any purpose consistent with the terms of this Agreement and on any
terms it sees fit, including, without limitation,

       

      (1)           the
financing of the conduct of the operations of the General Partner, the
Partnership or any of the Partnership’s Subsidiaries,

       

      (2)           the
lending of funds to other Persons (including, without limitation, the
Subsidiaries of the Partnership and/or the General Partner) and the repayment of
obligations of the Partnership and its Subsidiaries and any other Person in
which it has an equity investment, and

       

      (3)           the
making of capital contributions to its Subsidiaries;

       

      (E)           the
expansion, development, construction, leasing, repair, alteration, demolition or
improvement of any property in which the Partnership or any Subsidiary of the
Partnership owns an interest;

       

      (F)           the
negotiation, execution, and performance of any contracts, conveyances or other
instruments that the General Partner considers useful or necessary to the
conduct of the Partnership’s operations or the implementation of the General
Partner’s powers under this Agreement, including contracting with contractors,
developers, consultants, accountants, legal counsel, other professional advisors
and other agents and the payment of their expenses and compensation out of the
Partnership’s assets;

       

      (G)           the
distribution of Partnership cash or other Partnership assets in accordance with
this Agreement;

       

      (H)           holding,
managing, investing and reinvesting cash and other assets of the
Partnership;

       

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

       

      (J)           the
establishment of one or more divisions of the Partnership, the selection and
dismissal of employees of the Partnership (including, without limitation,
employees having titles such as “president,” “vice president,” “secretary” and
“treasurer” of the Partnership), and agents, outside attorneys, accountants,
consultants and contractors of the Partnership, and the determination of their
compensation and other terms of employment or engagement;

       

      (K)           the
maintenance of such insurance for the benefit of the Partnership and the
Partners and directors and officers thereof as it deems necessary or
appropriate;

       

      (L)           the
formation of, or acquisition of an interest (including non-voting interests in
entities controlled by Affiliates of the Partnership or third parties) in, and
the contribution of property to, any further Entities or other relationships
that it deems desirable, including, without limitation, the acquisition of
interests in, and the contributions of funds or property to, or making of loans
to, its Subsidiaries and any other Person from time to time, or the incurrence
of indebtedness on behalf of such Persons or the guarantee of the obligations of
such Persons; provided that, as long as the General Partner has determined to
elect to qualify as a REIT or to continue to qualify as a REIT, the Partnership
may not engage in any such formation, acquisition or contribution that would
cause the General Partner to fail to qualify as a REIT;

       

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      (M)           the
control of any matters affecting the rights and obligations of the Partnership,
including

       

      (1)           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,

       

      (2)           the
commencement or defense of suits, legal proceedings, administrative proceedings,
arbitration or other forms of dispute resolution, and

       

      (3)           the
representation of the Partnership in all suits or legal proceedings,
administrative proceedings, arbitrations or other forms of dispute resolution,
the incurring of legal expenses, and the indemnification of any Person against
liabilities and contingencies to the extent permitted by law;

       

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

       

      (O)           the
determination of the fair market value of any Partnership property distributed
in kind using such reasonable method of valuation as the General Partner, in its
sole discretion, may adopt;

       

      (P)           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;

       

      (Q)           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;

       

      (R)           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;

       

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      (S)           the
making, execution and delivery of any and all deeds, leases, notes, mortgages,
deeds of trust, security agreements, conveyances, contracts, guarantees,
warranties, indemnities, waivers, releases or legal instruments or agreements in
writing necessary or appropriate, in the judgment of the General Partner, for
the accomplishment of any of the foregoing;

       

      (T)           the
issuance of additional Partnership Units in connection with Capital
Contributions by Additional Limited Partners and additional Capital
Contributions by Partners pursuant to Article 4 hereof;

       

      (U)           the
opening of bank accounts on behalf of, and in the name of, the Partnership and
its Subsidiaries; and

       

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

       

      (b)           (i)           Each
of the Limited Partners agree that 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 to the fullest extent
permitted under the Act or other applicable law, rule or
regulation.

       

      (ii)           The
execution, delivery or performance by the General Partner or the Partnership of
any agreement authorized or 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.

       

      (c)           At
all times from and after the date hereof, the General Partner at the expense of
the Partnership, may or may not, cause the Partnership to obtain and
maintain

       

      (i)           casualty,
liability and other insurance on the properties of the Partnership;

       

      (ii)           liability
insurance for the Indemnitees hereunder; and

       

      (iii)           such
other insurance as the General Partner, in its sole and absolute discretion,
determines to be appropriate and reasonable.

       

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

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

       

      (e)           (i)           In
exercising its authority under this Agreement, the General Partner may, but
shall be under no obligation to, take into account the tax consequences to any
Partner (including the General Partner) of any action taken (or not taken) by
it. The General Partner and the Partnership shall not have liability to any
Limited Partner for monetary damages or otherwise for losses sustained,
liabilities incurred or benefits not delivered by such Limited Partner in
connection with such decisions, provided that the General Partner has acted in
good faith pursuant to its authority under this Agreement. The Limited Partners
expressly acknowledge that the General Partner is acting on behalf of the
Partnership, the General Partner, and the General Partner’s stockholders,
collectively.

       

      (ii)           The
General Partner and the Partnership shall not have liability to the any 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 taken pursuant to its authority under and in accordance with this
Agreement.

       

      
        	
                7.2

              	
                Certificate of Limited
      Partnership

              

      

       

      (a)           The
General Partner has previously filed the Certificate with the Secretary of State
of Delaware as required by the Act.

       

      (b)           (i)           The
General Partner shall use all reasonable efforts to cause to be filed such other
certificates or documents as may be reasonable and necessary or appropriate for
the formation, continuation, qualification and operation of a limited
partnership (or a partnership in which the limited partners have limited
liability) in the State of Delaware and any other state, or the District of
Columbia, in which the Partnership may elect to do business or own
property.

       

      (ii)           To
the extent that such action is determined by the General Partner to be
reasonable and necessary or appropriate, the General Partner shall file
amendments to and restatements of the Certificate and do all of the things to
maintain the Partnership as a limited partnership (or a partnership in which the
limited partners have limited liability) under the laws of the State of Delaware
and each other state, or the District of Columbia, in which the Partnership may
elect to do business or own property.

       

      (iii)           Subject
to the terms of Section 8.5(a)(iv) hereof, the General Partner shall not be
required, before or after filing, to deliver or mail a copy of the Certificate
or any amendment thereto to any Limited Partner.

       

      
        	
                7.3

              	
                Reimbursement of the
      General Partner

              

      

       

      (a)           Except
as provided in this Section 7.3 and elsewhere in this Agreement (including the
provisions of Articles 5 and 6 regarding distributions, payments, and
allocations to which it may be entitled), the General Partner shall not be
compensated for its services as general partner of the Partnership.

       

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      (b)           (i)           The
Partnership shall be responsible for and shall pay all expenses relating to the
Partnership’s organization, the ownership of its assets and its operations. The
General Partner shall be reimbursed on a monthly basis, or such other basis as
it may determine in its sole and absolute discretion, for all expenses that it
incurs on behalf of the Partnership relating to the ownership and operation of
the Partnership’s assets, or for the benefit of the Partnership, including all
expenses associated with compliance by the General Partner and the Initial
Limited Partner with laws, rules and regulations promulgated by any regulatory
body, expenses related to the operations of the General Partner and to the
management and administration of any Subsidiaries of the General Partner or the
Partnership or Affiliates of the Partnership, such as auditing expenses and
filing fees and any and all salaries, compensation and expenses of officers and
employees of the General Partner, but excluding any portion of expenses
reasonably attributable to assets not owned by or for the benefit of, or to
operations not for the benefit of, the Partnership or Affiliates of the
Partnership; provided,
that the amount of any
such reimbursement shall be reduced by any interest earned by the General
Partner with respect to bank accounts or other instruments or accounts held by
it in its name.

       

      (ii)           Such
reimbursement shall be in addition to any reimbursement made as a result of
indemnification pursuant to Section 7.6 hereof.

       

      (iii)           The
General Partner shall determine in good faith the amount of expenses incurred by
it related to the ownership and operation of, or for the benefit of, the
Partnership. If certain expenses are incurred for the benefit of the Partnership
and other entities (including the General Partner), such expenses will be
allocated to the Partnership and such other entities in such a manner as the
General Partner in its reasonable discretion deems fair and reasonable. All
payments and reimbursements hereunder shall be characterized for federal income
tax purposes as expenses of the Partnership incurred on its behalf, and not as
expenses of the General Partner.

       

      (c)           (i)           Expenses
incurred by the General Partner relating to the organization or reorganization
of the Partnership and the General Partner the issuance of Common Stock in
connection with an Offering and any issuance of additional Partnership
Interests, Common Stock or rights, options, warrants, or convertible or
exchangeable securities pursuant to Section 4.2 hereof and all 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, without limitation, all costs, expenses, damages, and other payments
resulting from or arising in connection with litigation related to any of the
foregoing) are primarily obligations of the Partnership.

       

      (ii)           To
the extent the General Partner pays or incurs such expenses, the General Partner
shall be reimbursed for such expenses.

       

      
        	
                7.4

              	
                Outside Activities of
      the General Partner

              

      

       

      (a)           Without
the Consent of the Limited Partners, the General Partner shall not directly or
indirectly enter into or conduct any business other than in connection with the
ownership, acquisition, and disposition of Partnership Interests and the
management of its business and the business of the Partnership, and such
activities as are incidental thereto.

       

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

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

       

      
        	
                7.5

              	
                Contracts with
      Affiliates

              

      

       

      (a)           (i)           The
Partnership may lend or contribute funds or other assets to its Subsidiaries or
other Persons in which it has an equity investment and such Subsidiaries and
Persons may borrow funds from the Partnership, on terms and conditions
established in the sole and absolute discretion of the General
Partner.

      (ii)           The
foregoing authority shall not create any right or benefit in favor of any
Subsidiary or any other Person.

       

      (b)           Except
as provided in Section 7.4, the Partnership may Transfer assets to 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, may determine.

       

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

       

      (d)           The
General Partner, in its sole and absolute discretion and without the approval
the Limited Partners, may propose and adopt, on behalf of the Partnership,
employee benefit plans, stock option plans, and similar plans funded by the
Partnership for the benefit of employees of the Partnership, the General
Partner, any Subsidiaries of the Partnership or any Affiliate of any of them in
respect of services performed, directly or indirectly, for the benefit of the
Partnership, the General Partner, any Subsidiaries of the Partnership or any
Affiliate of any of them.

       

      (e)           The
General Partner is expressly authorized to enter into, in the name and on behalf
of the Partnership, a “right of first opportunity” or “right of first offer”
arrangement, non-competition agreements and other conflict avoidance agreements
with various Affiliates of the Partnership and the General Partner, on such
terms as the General Partner, in its sole and absolute discretion, believes are
advisable.

       

      
        	
                7.6

              	
                Indemnification

              

      

       

      (a)           (i)           To
the fullest extent permitted by Delaware law or as provided herein, the
Partnership shall indemnify each Indemnitee from and against any and all losses,
claims, damages, liabilities, joint or several, expenses (including, without
limitation, reasonable attorneys’ fees and other legal fees and expenses),
judgments, fines, settlements, and other amounts arising from any and all
claims, demands, actions, suits or proceedings, civil, criminal, administrative
or investigative (collectively, “Claims”), that relate
to the operations of the Partnership or the General Partner as set forth in this
Agreement, in which such Indemnitee may be involved, or is threatened to be
involved, as a party or otherwise, so long as (w) the course of

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      conduct
which gave rise to the Claim was taken, in the reasonable determination of the
Indemnitee made in good faith, in the best interests of the Partnership or the
General Partner, (x) such Claim was not the result of negligence or misconduct
by the Indemnitee, (y) the Indemnitee (if other than the General Partner) was
acting on behalf or performing services for the Partnership and (z) such
indemnification is not satisfied or recoverable from the assets of the
stockholders of the General Partner. Notwithstanding the foregoing, no
Indemnitee (other than the General Partner) shall be indemnified for any Claim
arising from or out of an alleged violation of federal or state securities laws
unless (x) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to such Indemnitee, (y) such
allegations have been dismissed with prejudice on the merits by a court of
competent jurisdiction as to such Indemnitee, or (z) a court of competent
jurisdiction approves a settlement of such allegations against such Indemnitee
and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised
of the position of the Securities and Exchange Commission and of the published
position of any state securities regulatory authority in which the Common Stock
was offered or sold as to indemnification for violations of securities
law.

       

      (ii)           Without
limitation, the foregoing indemnity shall extend to any liability of any
Indemnitee, pursuant to a loan guaranty (except a guaranty by a limited partner
of nonrecourse indebtedness of the Partnership or as otherwise provided in any
such loan guaranty), contractual obligation for any indebtedness or other
obligation or otherwise for any indebtedness of the Partnership or any
Subsidiary of the Partnership (including, without limitation, any indebtedness
which the Partnership or any Subsidiary of the Partnership has assumed or taken
subject to), and the General Partner is hereby authorized and empowered, on
behalf of the Partnership, to enter into one or more 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.

       

      (iii)           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.

       

      (b)           Reasonable
expenses incurred by an Indemnitee who is a party to a proceeding shall be paid
or reimbursed by the Partnership in advance of the final disposition of any and
all claims, demands, actions, suits or proceedings, civil, criminal,
administrative or investigative made or threatened against an Indemnitee 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 has been
met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay
the amount if it shall ultimately be determined that the standard of conduct has
not been met.

       

      (c)           The
indemnification provided by this Section 7.6 shall be in addition to any other
rights to which an Indemnitee or any other Person may be entitled under any
agreement, pursuant to any vote of the Partners, as a matter of law or
otherwise, and shall continue as to an Indemnitee who has ceased to serve in
such capacity unless otherwise provided in a written agreement pursuant to which
such Indemnities are indemnified.

       

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

      (d)           The
Partnership may, but shall not be obligated to, purchase and maintain insurance,
on behalf of the Indemnities and such other Persons as the General Partner shall
determine, against any liability that may be asserted against or expenses that
may be incurred by such Person in connection with the Partnership’s activities,
regardless of whether the Partnership would have the power to indemnify such
Person against such liability under the provisions of this
Agreement.

       

      (e)           For
purposes of this Section 7.6, the Partnership shall be deemed to have requested
an Indemnitee to serve as fiduciary of an employee benefit plan whenever the
performance by such Indemnitee of its duties to the Partnership also imposes
duties on, or otherwise involves services by, such Indemnitee to the plan or
participants or beneficiaries of the plan; excise taxes assessed on an
Indemnitee with respect to an employee benefit plan pursuant to applicable law
shall constitute fines within the meaning of this Section 7.6; and actions taken
or omitted by the Indemnitee with respect to an employee benefit plan in the
performance of its duties for a purpose reasonably believed by it to be in the
interest of the participants and beneficiaries of the plan shall be deemed to be
for a purpose which is not opposed to the best interests of the
Partnership.

       

      (f)           In
no event may an Indemnitee subject any of the Partners (other than the General
Partner) to personal liability by reason of the indemnification provisions set
forth in this Agreement.

       

      (g)           An
Indemnitee shall not be denied indemnification in whole or in part under this
Section 7.6 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.

       

      (h)           (i)           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.

       

      (ii)           Any
amendment, modification or repeal of this Section 7.6 or any provision hereof
shall be prospective only and shall not in any way affect the Partnership’s
liability to any Indemnitee under this Section 7.6, as in effect immediately
prior to such amendment, modification, or repeal with respect to claims arising
from or relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may arise or
be asserted.

       

      (i)           If
and to the extent any payments to the General Partner pursuant to this Section
7.6 constitute gross income to the General Partner (as opposed to the repayment
of advances made on behalf of the Partnership), such amounts shall constitute
guaranteed payments within the meaning of Section 707(c) of the Code, shall be
treated consistently therewith by the Partnership and all Partners, and shall
not be treated as distributions for purposes of computing the Partners’ Capital
Accounts.

       

      (j)           Notwithstanding
anything to the contrary in this Agreement, the General Partner shall not be
entitled to indemnification hereunder for any loss, claim, damage, liability or
expense for which the General Partner is obligated to indemnify the Partnership
under any other agreement between the General Partner and the
Partnership.

       

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      
        	
                7.7

              	
                Liability of the
      General Partner

              

      

       

      (a)           Notwithstanding
anything to the contrary set forth in this Agreement, neither the General
Partner nor the investment advisor of the General Partner, nor any of their
respective officers and directors, shall be liable for monetary damages to the
Partnership, any Partners or any Assignees for losses sustained or liabilities
incurred as a result of errors in judgment or mistakes of fact or law or of any
act or omission unless the General Partner or its investment advisor, as the
case may be, acted in bad faith and the act or omission was material to the
matter giving rise to the loss, liability or benefit not derived.

       

      (b)           (i)           The
Limited Partners expressly acknowledge that the General Partner (and its
investment advisor) is acting on behalf of the Partnership and the shareholders
of the General Partner collectively, that the General Partner (and its
investment advisor), subject to the provisions of Section 7.1(e) hereof, is
under no obligation to consider the separate interest of the Limited Partners
(including, without limitation, the tax consequences to the Limited Partners or
Assignees) in deciding whether to cause the Partnership to take (or decline to
take) any actions, and that the General Partner (and its investment advisor)
shall not be liable for monetary damages for losses sustained, liabilities
incurred, or benefits not derived by Limited Partners in connection with such
decisions; provided
that the General
Partner (and its investment advisor) has acted in good faith.

       

      (ii)           With
respect to any indebtedness of the Partnership which any Limited Partner may
have guaranteed, the General Partner (and its investment advisor) shall have no
duty to keep such indebtedness outstanding.

       

      (c)           (i)           Subject
to its obligations and duties as General Partner set forth in Section 7.1(a)
hereof, the General Partner may exercise any of the powers granted to it by this
Agreement and perform any of the duties imposed upon it hereunder either
directly or by or through its agent, including its investment
advisor.

       

      (ii)           The
General Partner shall not be responsible for any misconduct or negligence on the
part of any such agent appointed by the General Partner in good
faith.

       

      (d)           The
Limited Partners expressly acknowledge that if any conflict in the fiduciary
duties owed by the General Partner to its stockholders and by the General
Partner, in its capacity as a general partner of the Partnership, to the Limited
Partners, the General Partner may act in the best interests of the General
Partner’s stockholders without violating its fiduciary duties to the Limited
Partners, and that the General Partner shall not be liable for monetary damages
for losses sustained, liabilities incurred, or benefits not derived by the
Limited Partners in connection with any such violation.

       

      (e)           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.

       

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

      
        	
                7.8

              	
                Other Matters
      Concerning the General
Partner

              

      

       

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

       

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

       

      (c)           (i)           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
duly appointed attorneys-in-fact.

       

      (ii)           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 each and every act
and duty which is permitted or required to be done by the General Partner
hereunder.

       

      (d)           Notwithstanding
any other provisions of this Agreement or the Act, any action of the General
Partner on behalf of the Partnership or any decision of the General Partner to
refrain from acting on behalf of the Partnership, undertaken in the good faith
belief that such action or omission is necessary or advisable in
order

       

      (i)           to
protect the ability of the General Partner to continue to qualify as a REIT;
or

       

      (ii)           to
avoid the General Partner incurring any taxes under Section 857 or Section 4981
of the Code,

       

      is
expressly authorized under this Agreement and is deemed approved by all of the
Limited Partners.

       

      
        	
                7.9

              	
                Title to Partnership
      Assets

              

      

       

      (a)           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, shall have any ownership interest in such
Partnership assets or any portion thereof.

       

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      (b)           (i)           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.

       

      (ii)           The
General Partner hereby declares and warrants that any Partnership asset for
which legal title is held in the name of the General Partner or any nominee or
Affiliate of the General Partner shall be held by the General Partner for the
use and benefit of the Partnership in accordance with the provisions of this
Agreement; provided,
that the General
Partner shall use its best efforts to cause beneficial and record title to such
assets to be vested in the Partnership as soon as reasonably
practicable.

       

      (iii)           All
Partnership assets shall be recorded as the property of the Partnership in its
books and records, irrespective of the name in which legal title to such
Partnership assets is held.

       

      
        	
                7.10

              	
                Reliance by Third
      Parties

              

      

       

      (a)           Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the General Partner has full power
and authority, without 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 the General Partner were the
Partnership’s sole party in interest, both legally and
beneficially.

       

      (b)           Each
Limited Partner hereby waives any and all defenses or other remedies which may
be available against such Person to contest, negate or disaffirm any action of
the General Partner in connection with any such dealing.

       

      (c)           In
no event shall any Person dealing with the General Partner or its
representatives be obligated to ascertain that the terms of this Agreement have
been complied with or to inquire into the necessity or expediency of any act or
action of the General Partner or its representatives.

       

      (d)           Each
and every certificate, document or other instrument executed on behalf of the
Partnership by the General Partner or its representatives shall be conclusive
evidence in favor of any and every Person relying thereon or claiming thereunder
that

       

      (i)           at
the time of the execution and delivery of such certificate, document or
instrument, this Agreement was in full force and effect;

       

      (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.

       

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      
        	
                7.11

              	
                Loans By Third
      Parties

              

      

       

      The
Partnership may incur Debt, or enter into similar credit, guarantee, financing
or refinancing arrangements for any purpose (including, without limitation, in
connection with any acquisition of property) with any Person upon such terms as
the General Partner determines appropriate.

       

       

      ARTICLE
8

      RIGHTS
AND OBLIGATIONS OF LIMITED PARTNERS

       

      
        	
                8.1

              	
                Limitation of
      Liability

              

      

       

      No
Limited Partner shall have any liability under this Agreement except as
expressly provided in this Agreement, including Section 10.5 hereof, or under
the Act.

       

      
        	
                8.2

              	
                Management of
      Business

              

      

       

      (a)           No
Limited Partner or Assignee (other than the General Partner, any of its
Affiliates or any officer, director, employee, agent or trustee of the General
Partner, the Partnership or any of their Affiliates, in their capacity as such)
shall take part in the operation, management or control (within the meaning of
the Act) of the Partnership’s business, transact any business in the
Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership.

       

      (b)           The
transaction of any such business by the General Partner, any of its Affiliates
or any officer, director, employee, partner, agent or trustee of the General
Partner, the Partnership or any of their Affiliates, in their capacity as such,
shall not affect, impair or eliminate the limitations on the liability of the
Limited Partners or Assignees under this Agreement.

       

      
        	
                8.3

              	
                Outside Activities of
      Limited Partners

              

      

       

      (a)           Subject
to any agreements entered into pursuant to Section 7.5 hereof and any other
agreements entered into by a Limited Partner or its Affiliates with the
Partnership or any of its Subsidiaries, and any Limited Partner and any officer,
director, employee, agent, trustee, Affiliate 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 competition with the
Partnership or that are enhanced by the activities of the
Partnership.

       

      (b)           Neither
the Partnership nor any Partners shall have any rights by virtue of this
Agreement in any business ventures of any Limited Partner or
Assignee.

       

      (c)           No
Limited Partner nor any other Person shall have any rights by virtue of this
Agreement or the Partnership relationship established hereby in any business
ventures of any other Person and such Person shall have no obligation pursuant
to this Agreement to offer any interest in any such business ventures to the
Partnership, any Limited Partner or any such other Person, even if such
opportunity is of a character which, if presented to the Partnership, any
Limited Partner or such other Person, could be taken by such
Person.

       

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      
        	
                8.4

              	
                Return of
      Capital

              

      

       

      (a)           Except
pursuant to the Exchange Rights Agreements, no Limited Partner shall be entitled
to the withdrawal or return of its Capital Contribution, except to the extent of
distributions made pursuant to this Agreement or upon termination of the
Partnership as provided herein.

       

      (b)           Except
as provided in Articles 5 and 13 hereof, 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

              	
                Rights of Limited
      Partners Relating to the
Partnership

              

      

       

      (a)           In
addition to the other rights provided by this Agreement or by the Act, and
except as limited by Section 8.5(b) hereof, each Limited Partner shall have the
right, for a purpose reasonably related to such Limited Partner’s interest as a
limited partner in the Partnership, upon written demand with a statement of the
purpose of such demand and at such Limited Partner’s own expense (including such
reasonable copying and administrative charges as the General Partner may
establish from time to time):

       

      (i)           to
obtain a copy of the most recent annual and quarterly reports filed with the
Securities and Exchange Commission by the General Partner pursuant to the
Securities Exchange Act of 1934;

       

      (ii)           to
obtain a copy of the Partnership’s federal, state and local income tax returns
for each Partnership Year;

       

      (b)           Notwithstanding
any other provision of this Section 8.5, the General Partner may keep
confidential from the Limited Partners, for such period of time as the General
Partner determines in its sole and absolute discretion to be reasonable, any
information that

       

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

       

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

       

      
        	
                8.6

              	
                Exchange Rights
      Agreements

              

      

       

      (a)           The
Limited Partners will be granted the right, but not the obligation, to exchange
all or a portion of their Partnership Units for cash or, at the option of the
Partnership, for shares of Common Stock on such terms and subject to such
conditions and restrictions as will be contained in one or more exchange rights
agreements among the General Partner, the Partnership and one or more Limited
Partners (as amended from time to time, the “Exchange Rights
Agreements”). The form of each Exchange Rights Agreement governing the
exchange of Partnership Units shall hereafter be provided by the General
Partner.

       

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      (b)           The
Limited Partners and all successors, assignees and transferees (whether by
operation of law, including by merger or consolidation, dissolution or
liquidation of an entity that is a Limited Partner, or otherwise) shall be bound
by the provisions of the Exchange Rights Agreement to which they are
parties.

       

       

      ARTICLE
9

      BOOKS,
RECORDS, ACCOUNTING AND REPORTS

       

      
        	
                9.1

              	
                Records and
      Accounting

              

      

       

      (a)           The
General Partner shall keep or cause to be kept at the principal office of the
Partnership those records and documents required to be maintained by the Act and
other books and records deemed by the General Partner to be appropriate with
respect to the Partnership’s business, including, without limitation, all books
and records necessary for the General Partner to comply with applicable REIT
Requirements and to provide to the Limited Partners any information, lists and
copies of documents required to be provided pursuant to Sections 8.5(a) and 9.3
hereof.

       

      (b)           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 of, punch cards, 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.

       

      (c)           The
books of the Partnership shall be maintained, for financial and tax reporting
purposes, on an accrual basis in accordance with generally accepted accounting
principles, or such other basis as the General Partner determines to be
necessary or appropriate.

       

      
        	
                9.2

              	
                Fiscal
      Year

              

      

       

      The
fiscal year of the Partnership shall be the calendar year.

       

      
        	
                9.3

              	
                Reports

              

      

       

      (a)           As
soon as practicable, but in no event later than the date on which the General
Partner mails its annual report to its stockholders, the General Partner shall
cause to be mailed to each Limited Partner as of the close of the Partnership
Year, an annual report containing financial statements of the Partnership, or of
the General Partner, if such statements are prepared on a consolidated basis
with the Partnership, for such Partnership Year, presented in accordance with
the standards of the Public Accounting Oversight Board (United States), such
statements to be audited by a nationally recognized firm of independent public
accountants selected by the General Partner in its sole discretion.

       

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

      (b)           If
and to the extent that the General Partner mails quarterly reports to its
stockholders, then as soon as practicable, but in no event later than the date
such reports are mailed, the General Partner shall cause to be mailed to each
Limited Partner a report containing unaudited financial statements as of the
last day of the calendar quarter of the Partnership, or of the General Partner,
if such statements are prepared on a consolidated basis with the Partnership,
and such other information as may be required by applicable law or regulation,
or as the General Partner determines to be appropriate.

       

      (c)           Notwithstanding
the foregoing, the General Partner may deliver to the Limited Partners each of
the reports described above, as well as any other communications that it may
provide hereunder, by e-mail or by any other electronic means.

       

       

      ARTICLE
10

      TAX
MATTERS

       

      
        	
                10.1

              	
                Preparation of Tax
      Returns

              

      

       

      (a)           The
General Partner shall arrange for the preparation and timely filing of all
returns of Partnership income, gains, deductions, losses and other items
required of the Partnership for federal and state income tax purposes and shall
use all reasonable efforts to furnish, within ninety (90) days of the close of
each taxable year, the tax information reasonably required by the Limited
Partners and the Special Limited Partner for federal and state income tax
reporting purposes.  The federal income tax return of the Partnership
shall be filed annually on IRS Form 1065 (or such other successor form) or on
any other IRS form as may be required.

       

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

       

      
        	
                10.2

              	
                Tax
      Elections

              

      

       

      (a)           Except
as otherwise provided herein, the General Partner shall, in its sole and
absolute discretion, determine whether to make any available election pursuant
to the Code.

       

      (b)           The
General Partner shall elect a permissible method (which need not be the same
method for each item or property) of eliminating the disparity between the book
value and the tax basis for each item of property contributed to the Partnership
or to a Subsidiary of the Partnership pursuant to the regulations promulgated
under the provisions of Section 704(c) of the Code.

       

      (c)           The
General Partner shall have the right to seek to revoke any tax election it
makes, including, without limitation, the election under Section 754 of the
Code, upon the General Partner’s determination, in its sole and absolute
discretion, that such revocation is in the best interests of the
Partners.

       

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

      
        	
                10.3

              	
                Tax Matters
      Partner

              

      

       

      (a)           (i)           The
General Partner shall be the “tax matters partner” of the Partnership for
federal income tax purposes.

       

      (ii)           Pursuant
to Section 6230(e) of the Code, upon receipt of notice from the Internal Revenue
Service of the beginning of an administrative proceeding with respect to the
Partnership, the tax matters partner shall furnish the Internal Revenue Service
with the name, address, taxpayer identification number, and profit interest of
each of the Limited Partners, the Special Limited Partner and the Assignees;
provided, that such information is
provided to the Partnership by the Limited Partners, the Special Limited Partner
and the Assignees.

       

      (iii)           The
tax matters partner is authorized, but not required:

       

      (A)           to
enter into any settlement with the Internal Revenue Service with respect to any
administrative or judicial proceedings for the adjustment of Partnership items
required to be taken into account by a Partner for income tax purposes (such
administrative proceedings being referred to as a “tax audit” and such judicial
proceedings being referred to as “judicial review”), and in the settlement
agreement the tax matters partner may expressly state that such agreement shall
bind all Partners (including the Special Limited Partner), except that such
settlement agreement shall not bind any Partner or the Special Limited
Partner

       

      (1)           who
(within the time prescribed pursuant to the Code and Regulations) files a
statement with the Internal Revenue Service providing that the tax matters
partner shall not have the authority to enter into a settlement agreement on
behalf of such Partner or the Special Limited Partner; or

       

      (2)           who
is a “notice partner” (as defined in Section 6231(a)(8) of the Code) or a member
of a “notice group” (as defined in Section 6223(b)(2) of the Code);

       

      (B)           if
a notice of a final administrative adjustment at the Partnership level of any
item required to be taken into account by a Partner or the Special Limited
Partner for tax purposes (a “final adjustment”) is mailed to the tax matters
partner, to seek judicial review of such final adjustment, including the filing
of a petition for readjustment with the Tax Court or the filing of a complaint
for refund with the United States Claims Court or the District Court of the
United States for the district in which the Partnership’s principal place of
business is located;

       

      (C)           to
intervene in any action brought by any other Partner or the Special Limited
Partner for judicial review of a final adjustment;

       

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

      (D)           to
file a request for an administrative adjustment with the Internal Revenue
Service and, if any part of such request is not allowed by the Internal Revenue
Service, to file an appropriate pleading (petition or complaint) for judicial
review with respect to such request;

       

      (E)           to
enter into an agreement with the Internal Revenue Service to extend the period
for assessing any tax which is attributable to any item required to be taken
account of by a Partner or the Special Limited Partner for tax purposes, or an
item affected by such item; and

       

      (F)           to
take any other action on behalf of the Partners, the Special Limited Partner or
the Partnership in connection with any tax audit or judicial review proceeding
to the extent permitted by applicable law or regulations.

       

      The
taking of any action and the incurring of any expense by the tax matters partner
in connection with any such proceeding, except to the extent required by law, is
a matter in the sole and absolute discretion of the tax matters partner and the
provisions relating to indemnification of the General Partner set forth in
Section 7.6 of this Agreement shall be fully applicable to the tax matters
partner in its capacity as such.

       

      (b)           (i)           The
tax matters partner shall receive no compensation for its services.

       

      (ii)           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.

       

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

       

      
        	
                10.4

              	
                Organizational
      Expenses

              

      

       

      The
Partnership shall elect to deduct expenses, if any, incurred by it in organizing
the Partnership ratably over a one hundred eighty (180) month period as provided
in Section 709 of the Code.

       

      
        	
                10.5

              	
                Withholding

              

      

       

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

       

      (b)           (i)           Any
amount paid on behalf of or with respect to a Limited Partner or the Special
Limited Partner shall constitute a loan by the Partnership to such Limited
Partner or the Special Limited Partner, which loan shall be repaid by such
Limited Partner or the Special Limited Partner as the case may be within fifteen
(15) days after notice from the General Partner that such payment must be made
unless

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

      (A)           the
Partnership withholds such payment from a distribution which would otherwise be
made to the Limited Partner or the Special Limited Partner; or

       

      (B)           the
General Partner determines, in its sole and absolute discretion, that such
payment may be satisfied out of the available funds of the Partnership which
would, but for such payment, be distributed to the Limited Partner or the
Special Limited Partner.

       

      (ii)           Any
amounts withheld pursuant to the foregoing clauses (i)(A) or (B) shall be
treated as having been distributed to the Limited Partner.

       

      (c)           (i)           Each
Limited Partner and the Special Limited Partner hereby unconditionally and
irrevocably grants to the Partnership a security interest in such Limited
Partner’s Partnership Interest and such Special Limited Partner’s Special
Limited Partner Interest, as the case may be, to secure such Limited Partner’s
or Special Limited Partner’s obligation to pay to the Partnership any amounts
required to be paid pursuant to this Section 10.5.

       

      (ii)           (A)           If
a Limited Partner or the Special Limited Partner fails to pay when due any
amounts owed to the Partnership pursuant to this Section 10.5, the General
Partner may, in its sole and absolute discretion, elect to make the payment to
the Partnership on behalf of such defaulting Limited Partner or Special Limited
Partner, and in such event shall be deemed to have loaned such amount to such
defaulting Limited Partner or Special Limited Partner and shall succeed to all
rights and remedies of the Partnership as against such defaulting Limited
Partner or Special Limited Partner.

       

      (B)           Without
limitation, in such event, the General Partner shall have the right to receive
distributions that would otherwise be distributable to such defaulting Limited
Partner or Special Limited Partner until such time as such loan, together with
all interest thereon, has been paid in full, and any such distributions so
received by the General Partner shall be treated as having been distributed to
the defaulting Limited Partner or Special Limited Partner and immediately paid
by the defaulting Limited Partner or Special Limited Partner to the General
Partner in repayment of such loan.

       

      (iii)           Any
amount payable by a Limited Partner or the Special Limited Partner hereunder
shall bear interest at the highest base or prime rate of interest published from
time to time by The Wall Street Journal, plus four (4) percentage points, but in
no event higher than the maximum lawful rate of interest on such obligation,
such interest to accrue from the date such amount is due (i.e., fifteen (15)
days after demand) until such amount is paid in full.

       

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

      (iv)           Each
Limited Partner and the Special Limited Partner shall take such actions as the
Partnership or the General Partner shall request in order to perfect or enforce
the security interest created hereunder.

       

       

      ARTICLE
11

      TRANSFERS
AND WITHDRAWALS

       

      
        	
                11.1

              	
                Transfer

              

      

       

      (a)           (i)           The
term “Transfer,” when used in this Article 11 with respect to a Partnership
Interest or a Partnership Unit, shall be deemed to refer to a transaction by
which the General Partner purports to assign all or any part of its General
Partner Interest to another Person, or a Limited Partner purports to assign all
or any part of its Limited Partner Interest to another Person, and includes a
sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange
or any other disposition by law or otherwise.

       

      (ii)           The
term “Transfer” when used in this Article 11 does not include any exchange of
Partnership Units for cash or Common Stock pursuant to the Exchange Rights
Agreement.

       

      (b)           (i)           No
Partnership Interest shall be Transferred, in whole or in part, except in
accordance with the terms and conditions set forth in this Article
11.

       

      (ii)           Any
Transfer or purported Transfer of a Partnership Interest not made in accordance
with this Article 11 shall be null and void.

       

      
        	
                11.2

              	
                Transfer of the
      General Partner’s General Partner
  Interest

              

      

       

      (a)           The
General Partner may not Transfer any of its General Partner Interest or withdraw
as General Partner, or Transfer any of its Limited Partner Interest,
except

       

      (i)           if
holders of at least two-thirds of the Limited Partner Interests consent to such
Transfer or withdrawal;

       

      (ii)           if
such Transfer is to an entity which is wholly owned by the General Partner and
is a Qualified REIT Subsidiary as defined in Section 856(i) of the Code;
or

       

      (iii)           in
connection with a transaction described in Section 11.2(c) or 11.2(d) (as
applicable)

       

      (b)           If
the General Partner withdraws as general partner of the Partnership in
accordance with Section 11.2(a), the General Partner’s General Partner Interest
shall immediately be converted into a Limited Partner Interest.

       

      (c)           Except
as otherwise provided in Section 11.2(d), the General Partner shall not engage
in any merger, consolidation or other combination of the General Partner with or
into another Person (other than a merger in which the General Partner is the
surviving entity) or sale of all or substantially all of its assets, or any
reclassification, or any recapitalization of outstanding Common Stock (other
than a change in par value, or from par value to no par value, or as a result of
a subdivision or combination of Common Stock) (a “Transaction”),
unless

       

      
        
           

        

        
          49

          
            

          

        

        
           

        

      

      (i)           in
connection with the Transaction all Limited Partners will either receive, or
will have the right to elect to receive, for each Partnership Unit an amount of
cash, securities, or other property equal to the product of the Exchange Factor
and the amount of cash, securities or other property or value paid in the
Transaction to or received by a holder of one share of Common Stock
corresponding to such Partnership Unit in consideration of one share of Common
Stock at any time during the period from and after the date on which the
Transaction is consummated; provided that if, in connection with the
Transaction, a purchase, tender or exchange offer (“Offer”) shall have
been made to and accepted by the holders of more than 50% of the outstanding
Common Stock, each holder of Partnership Units shall be given the option to
exchange its Partnership Units for the amount of cash, securities, or other
property which a Limited Partner would have received had it

       

      (A)           exercised
its Exchange Right and

       

      (B)           sold,
tendered or exchanged pursuant to the Offer the Common Stock received upon
exercise of the Exchange Right immediately prior to the expiration of the
Offer.

       

      The
foregoing is not intended to, and does not, affect the ability of (i) a
stockholder of the General Partner to sell its stock in the General Partner or
(ii) the General Partner to perform its obligations (under agreement or
otherwise) to such stockholders (including the fulfillment of any obligations
with respect to registering the sale of stock under applicable securities
laws).

       

      (d)           (i)           Notwithstanding
Section 11.2(c), the General Partner may merge into or consolidate with another
entity if immediately after such merger or consolidation

       

      (A)           substantially
all of the assets of the successor or surviving entity (the “Surviving General
Partner”), other than Partnership Units held by the General Partner, are
contributed to the Partnership as a Capital Contribution in exchange for
Partnership Units with a fair market value equal to the value of the assets so
contributed as determined by the Surviving General Partner in good faith
and

       

      (B)           the
Surviving General Partner expressly agrees to assume all obligations of the
General Partner hereunder.

       

      (ii)           (A)           Upon
such contribution and assumption, the Surviving General Partner shall have the
right and duty to amend this Agreement and the Exchange Rights Agreement as set
forth in this Section 11.2(d).

       

      (B)           (1)           The
Surviving General Partner shall in good faith arrive at a new method for the
calculation of the Exchange Factor for a Partnership Unit after any such merger
or consolidation so as to approximate the existing method for such calculation
as closely as reasonably possible.

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

      (2)           Such
calculation shall take into account, among other things, the kind and amount of
securities, cash and other property that was receivable upon such merger or
consolidation by a holder of Common Stock or options, warrants or other rights
relating thereto, and which a holder of Partnership Units could have acquired
had such Partnership Units been redeemed for Common Stock immediately prior to
such merger or consolidation.

       

      (C)           Such
amendment to this Agreement shall provide for adjustment to such method of
calculation, which shall be as nearly equivalent as may be practicable to the
adjustments provided for with respect to the Exchange Factor.

       

      (iii)           The
above provisions of this Section 11.2(d) shall similarly apply to successive
mergers or consolidations permitted hereunder.

       

      
        	
                11.3

              	
                Limited Partners’
      Rights to Transfer

              

      

       

      (a)           Subject
to the provisions of Sections 11.3(c), 11.3(d), 11.3(e), 11.4 and 11.6, a
Limited Partner may, without the consent of the General Partner, Transfer all or
any portion of its Limited Partner Interest, or any of such Limited Partner’s
economic right as a Limited Partner. In order to effect such transfer, the
Limited Partner must deliver to the General Partner a duly executed copy of the
instrument making such transfer and such instrument must evidence the written
acceptance by the assignee of all of the terms and conditions of this Agreement
and represent that such assignment was made in accordance with all applicable
laws and regulations.

       

      (b)           (i)           If
a Limited Partner is Incapacitated, the executor, administrator, trustee,
committee, guardian, conservator or receiver of such Limited Partner’s estate
shall have all of the rights of a Limited Partner, but not more rights than
those enjoyed by other Limited Partners, for the purpose of settling or managing
the estate and such power as the Incapacitated Limited Partner possessed to
Transfer all or any part of his or its interest in the Partnership.

       

      (ii)           The
Incapacity of a Limited Partner, in and of itself, shall not dissolve or
terminate the Partnership.

       

      (c)           The
General Partner may prohibit any Transfer by a Limited Partner of its
Partnership Units if it reasonably believes (based on the advice of counsel)
such Transfer would require filing of a registration statement under the
Securities Act of 1933, as amended, or would otherwise violate any federal or
state securities laws or regulations applicable to the Partnership or the
Partnership Units.

       

      (d)           No
Transfer by a Limited Partner of its Partnership Units may be made to any Person
if

       

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

      (i)           it
would adversely affect the ability of the General Partner to continue to qualify
as a REIT or would subject the General Partner to any additional taxes under
Section 857 or Section 4981 of the Code;

       

      (ii)           it
would result in the Partnership being treated as an association taxable as a
corporation for federal income tax purposes;

       

      (iii)           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
Section 3(14) of ERISA) or a “disqualified person” (as defined in Section
4975(c) of the Code);

       

      (iv)           such
Transfer would, in the opinion of legal counsel for 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;

       

      (v)           such
Transfer would subject the Partnership to regulation under the Investment
Company Act of 1940, the Investment Advisors Act of 1940 or the Employee
Retirement Income Security Act of 1974, each as amended;

       

      (vi)           without
the consent of the General Partner, which consent may be withheld in its sole
and absolute discretion, such Transfer is a sale or exchange, and such sale or
exchange would, when aggregated with all other sales and exchanges during the
12-month period ending on the date of the proposed Transfer, result in 50% or
more of the interests in Partnership capital and profits being sold or exchanged
during such 12-month period; or

       

      (vii)           such
Transfer is effectuated through an “established securities market” or a
“secondary market (or the substantial equivalent thereof)” within the meaning of
Section 7704 of the Code.

       

      (e)           No
transfer of any Partnership Units may be made to a lender to the Partnership or
any Person who is related (within the meaning of Regulations Section 1.752-4(b))
to any lender to the Partnership whose loan constitutes a nonrecourse liability
(within the meaning of Regulations Section 1.752-1(a)(2)), without the consent
of the General Partner, which may be withheld 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 exchange for the Cash Amount any
Partnership Units in which a security interest is held simultaneously with the
time at which 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.

       

      (f)           Any
Transfer in contravention of any of the provisions of this Section 11.3 shall be
void and ineffectual and shall not be binding upon, or recognized by, the
Partnership.

       

      
        	
                11.4

              	
                Substituted Limited
      Partners

              

      

       

      (a)           (i)           No
Limited Partner shall have the right to substitute a Permitted Transferee for a
Limited Partner in its place.

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

      (ii)           The
General Partner shall, however, have the right to consent to the admission of a
Permitted Transferee of the Partnership Interest of a Limited Partner pursuant
to this Section 11.4 as a Substituted Limited Partner, which consent may be
given or withheld by the General Partner in its sole and absolute
discretion.

       

      (iii)           The
General Partner’s failure or refusal to permit such transferee to become a
Substituted Limited Partner shall not give rise to any cause of action against
the Partnership or any Partner.

       

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

       

      (c)           (i)           No
Permitted Transferee will be admitted as a Substituted Limited Partner, unless
such transferee has furnished to the General Partner evidence of acceptance in
form satisfactory to the General Partner of all of the terms and conditions of
this Agreement and, as it relates to the Substituted Limited Partners, the
Exchange Rights Agreement, including, without limitation, the power of attorney
granted in Section 2.4 hereof.

       

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

       

      
        	
                11.5

              	
                Assignees

              

      

       

      (a)           If
the General Partner, in its sole and absolute discretion, does not consent to
the admission of any transferee as a Substituted Limited Partner, as described
in Section 11.4(a), such transferee shall be considered an Assignee for purposes
of this Agreement.

       

      (b)           An
Assignee shall be deemed to have had assigned to it, and shall be entitled to
receive distributions from the Partnership and the share of Net Income, Net
Losses and any other items of gain, loss, deduction or credit of the Partnership
attributable to the Partnership Units assigned to such transferee, but shall not
be deemed to be a holder of Partnership Units for any other purpose under this
Agreement, and shall not be entitled to vote such Partnership Units in any
matter presented to the Limited Partners, for a vote (such Partnership Units
being deemed to have been voted on such matter in the same proportion as all
other Partnership Units held by Limited Partners are voted).

       

      (c)           If
any such transferee desires to make a further assignment of any such Partnership
Units, such transferee shall be subject to all of the provisions of this Article
11 to the same extent and in the same manner as any Limited Partner desiring to
make an assignment of Partnership Units.

       

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      
        	
                11.6

              	
                General
      Provisions

              

      

       

      (a)           No
Limited Partner may withdraw from the Partnership other than as a result of a
permitted Transfer of all of such Limited Partner’s Partnership Units in
accordance with this Article 11 or, as it relates to the Limited Partners,
pursuant to exchange of all of its Partnership Units pursuant to the applicable
Exchange Rights Agreement.

       

      (b)           (i)           Any
Limited Partner which shall Transfer all of its Partnership Units in a Transfer
permitted pursuant to this Article 11 shall cease to be a Limited Partner upon
the admission of all Assignees of such Partnership Units as Substituted Limited
Partners.

       

      (ii)           Similarly,
any Limited Partner which shall Transfer all of its partnership Units pursuant
to an exchange of all of its Partnership Units pursuant to an Exchange Rights
Agreement shall cease to be a Limited Partner.

       

      (c)           Other
than pursuant to the Exchange Rights Agreement or with the consent of the
General Partner, transfers pursuant to this Article 11 may only be made as of
the first day of a fiscal quarter of the Partnership.

       

      (d)           (i)           If
any Partnership Interest is transferred or assigned during the Partnership’s
fiscal year in compliance with the provisions of this Article 11 or exchanged
pursuant to the applicable Exchange Rights Agreement on any day other than the
first day of a Partnership Year, then Net Income, Net Losses, each item thereof
and all other items attributable to such interest for such Partnership Year
shall be divided and allocated between the transferor Partner and the transferee
Partner by taking into account their varying interests during the Partnership
Year in accordance with Section 706(d) of the Code, using the interim closing of
the books method.

       

      (ii)           Solely
for purposes of making such allocations, each of such items for the calendar
month in which the Transfer or assignment occurs shall be allocated to the
transferee Partner, and none of such items for the calendar month in which an
exchange occurs shall be allocated to the exchanging Partner, provided, however, that the General
Partner may adopt such other conventions relating to allocations in connection
with transfers, assignments, or exchanges as it determines are necessary or
appropriate.

       

      (iii)           All
distributions pursuant to Section 5.1(a) attributable to Partnership Units, with
respect to which the Partnership Record Date is before the date of such
Transfer, assignment, or exchange of such Partnership Units, shall be made to
the transferor Partner or the exchanging Partner, as the case may be, and in the
case of a Transfer or assignment other than an exchange, all distributions
pursuant to Section 5.1(a) thereafter attributable to such Partnership Units
shall be made to the transferee Partner.

       

      (e)           In
addition to any other restrictions on transfer herein contained, including
without limitation the provisions of this Article 11, in no event may any
Transfer or assignment of a Partnership Interest by any Partner (including
pursuant to Section 8.6) be made without the express consent of the General
Partner, in its sole and absolute discretion, (i) to any person or entity who
lacks the legal right, power or capacity to own a Partnership Interest; (ii) in
violation

       

      
        
           

        

        
          54

          
            

          

        

        
           

        

      

      of
applicable law; (iii) of any component portion of a Partnership Interest, such
as the Capital Account, or rights to distributions, separate and apart from all
other components of a Partnership Interest; (iv) if in the opinion of legal
counsel to the Partnership such transfer would cause a termination of the
Partnership for federal or state income tax purposes (except as a result of the
exchange for Common Stock of all Partnership Units held by all Limited Partners
or pursuant to a transaction expressly permitted under Section 7.11 or Section
11.2); (v) if in the opinion of counsel to the Partnership, there would be a
significant risk that such transfer would cause the Partnership to cease to be
classified as a partnership for federal income tax purposes (except as a result
of the exchange for Common Stock of all Partnership Units held by all Limited
Partners or pursuant to a transaction expressly permitted under Section 7.11 or
Section 11.2); (vi) if such transfer requires the registration of such
Partnership Interest pursuant to any applicable federal or state securities
laws; (vii) if such transfer is effectuated through an “established securities
market” or a “secondary market” (or the substantial equivalent thereof) within
the meaning of Section 7704 of the Code or such transfer causes the Partnership
to become a “publicly traded partnership,” as such term is defined in Section
469(k)(2) or Section 7704(b) of the Code (provided that this clause (vii) shall
not be the basis for limiting or restricting in any manner the exercise of the
Exchange Right under Section 8.6 unless, and only to the extent that, outside
tax counsel provides to the General Partner an opinion to the effect that, in
the absence of such limitation or restriction, there is a significant risk that
the Partnership will be treated as a “publicly traded partnership” and, by
reason thereof, taxable as a corporation); (viii) such transfer could adversely
affect the ability of the General Partner to remain qualified as a REIT; or (ix)
if in the opinion of legal counsel of the transferring Partner (which opinion
and counsel are reasonably satisfactory to the Partnership), or legal counsel of
the Partnership, such transfer would adversely affect the ability of the General
Partner to continue to qualify as a REIT or subject the General Partner to any
additional taxes under Section 857 or Section 4981 of the Code, if the General
Partner has elected to be qualified as a REIT.

       

      (f)           The
General Partner shall monitor the transfers of interests in the Partnership to
determine (i) if such interests are being traded on an “established securities
market” or a “secondary market” (or the substantial equivalent thereof) within
the meaning of Section 7704 of the Code; and (ii) whether additional transfers
of interests would result in the Partnership being unable to qualify for at
least one of the “safe harbors” set forth in Regulations Section 1.7704-1 (or
such other guidance subsequently published by the IRS setting forth safe harbors
under which interests will not be treated as “readily tradable on a secondary
market (or the substantial equivalent thereof)” within the meaning of Section
7704 of the Code) (the “Safe Harbors”). The General Partner shall take all steps
reasonably necessary or appropriate to prevent any trading of interests or any
recognition by the Partnership of transfers made on such markets and, except as
otherwise provided herein, to insure that at least one of the Safe Harbors is
met; provided, however, that the foregoing shall not authorize the General
Partner to limit or restrict in any manner the right of any holder of a
Partnership Unit to exercise the Exchange Right in accordance with the terms of
the applicable Exchange Rights Agreement unless, and only to the extent that,
outside tax counsel provides to the General Partner an opinion to the effect
that, in the absence of such limitation or restriction, there is a significant
risk that the Partnership will be treated as a “publicly traded partnership”
and, by reason thereof, taxable as a corporation.

       

      
        
           

        

        
          55

          
            

          

        

        
           

        

      

       

      ARTICLE
12

      ADMISSION
OF PARTNERS

       

      
        	
                12.1

              	
                Admission of Successor
      General Partner

              

      

       

      (a)           (i)           A
successor to all of the General Partner Interest pursuant to Section 11 hereof
who is proposed to be admitted as a successor General Partner shall be admitted
to the Partnership as the General Partner, effective immediately following such
transfer and the admission of such successor General Partner as a general
partner of the Partnership upon the satisfaction of the terms and conditions set
forth in Section 12.1(b).

       

      (ii)           Any
such transferee shall carry on the business of the Partnership without
dissolution.

       

      (b)           A
Person shall be admitted as a substitute or successor General Partner of the
Partnership only if the following terms and conditions are
satisfied:

       

      (i)           the
Person to be admitted as a substitute or additional General Partner shall have
accepted and agreed to be bound by all the terms and provisions of this
Agreement by executing a counterpart thereof and such other documents or
instruments as may be required or appropriate in order to effect the admission
of such Person as a General Partner;

       

      (ii)           if
the Person to be admitted as a substitute or additional General Partner is a
corporation or a partnership it shall have provided the Partnership with
evidence satisfactory to counsel for the Partnership of such Person’s authority
to become a General Partner and to be bound by the terms and provisions of this
Agreement; and

       

      (iii)           counsel
for the Partnership shall have rendered an opinion (relying on such opinions
from other counsel as may be necessary) that the admission of the person to be
admitted as a substitute or additional General Partner is in conformity with the
Act, that none of the actions taken in connection with the admission of such
Person as a substitute or additional General Partner will cause

       

      (A)           the
Partnership to be classified other than as a partnership for federal income tax
purposes, or

       

      (B)           the
loss of any Limited Partner’s limited liability.

       

      (c)           In
the case of such admission on any day other than the first day of a Partnership
Year, all items attributable to the General Partner Interest for such
Partnership Year shall be allocated between the transferring General Partner and
such successor as provided in Section 11.6(d) hereof.

       

      
        
           

        

        
          56

          
            

          

        

        
           

        

      

      
        	
                12.2

              	
                Admission of
      Additional Limited Partners

              

      

       

      (a)           A
Person who makes a Capital Contribution to the Partnership in accordance with
this Agreement shall be admitted to the Partnership as an Additional Limited
Partner only upon furnishing to the General Partner

       

      (i)           evidence
of acceptance in form satisfactory to the General Partner of all of the terms
and conditions of this Agreement and the applicable Exchange Rights Agreement,
including, without limitation, the power of attorney granted in Section 2.4
hereof, and

       

      (ii)           such
other documents or instruments as may be required in the discretion of the
General Partner in order to effect such Person’s admission as an Additional
Limited Partner.

       

      (b)           (i)           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.

       

      (ii)           The
admission of any Person as an Additional Limited Partner shall become effective
on the date upon which the name of such Person is recorded on the books and
records of the Partnership, following the consent of the General Partner to such
admission.

       

      (c)           (i)           If
any Additional Limited Partner is admitted to the Partnership on any day other
than the first day of a Partnership Year, then Net Income, Net Losses, each item
thereof and all other items allocable among Partners and Assignees for such
Partnership Year shall be allocated among such Additional Limited Partner and
all other Partners and Assignees by taking into account their varying interests
during the Partnership Year in accordance with Section 706(d) of the Code, using
the interim closing of the books method.

      

      (ii)           (A)           Solely
for purposes of making such allocations, each of such items for the calendar
month in which an admission of any Additional Limited Partner occurs shall be
allocated among all of the Partners and Assignees, including such Additional
Limited Partner.

      

      (B)           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, and all distributions
pursuant to Section 5.1(a) thereafter shall be made to all of the Partners and
Assignees, including such Additional Limited Partner.

       

      (d)           Upon
the admission of the first Additional Limited Partner to the Partnership, the
Initial Limited Partner’s original interest in the Partnership shall
automatically, and without further action on the part of the Initial Limited
Partner or the Partnership, be withdrawn.

       

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

      
        	
                12.3

              	
                Amendment of Agreement
      and Certificate of Limited
Partnership

              

      

       

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

       

       

      ARTICLE
13

      DISSOLUTION,
LIQUIDATION AND TERMINATION

       

      
        	
                13.1

              	
                Dissolution

              

      

       

      (a)           The
Partnership shall not be dissolved by the admission of Substituted Limited
Partners, 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.

       

      (b)           The
Partnership shall dissolve, and its affairs shall be wound up, only upon the
first to occur of any of the following (“Liquidating
Events”):

       

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

       

      (ii)           an
event of withdrawal of the General Partner, as defined in the Act (other than an
event of bankruptcy), unless, within ninety (90) days after such event of
withdrawal, a “majority in interest” (as defined below) of the remaining
Partners Consent in writing to continue the business of the Partnership and to
the appointment, effective as of the date of withdrawal, of a successor General
Partner;

       

      (iii)           an
election to dissolve the Partnership made by the General Partner, with the
Consent of the Limited Partners holding at least a majority of the Percentage
Interest of the Limited Partners (including Limited Partner Interests held by
the General Partner);

       

      (iv)           entry
of a decree of judicial dissolution of the Partnership pursuant to the
provisions of the Act;

       

      (v)           a
Capital Transaction;

       

      (vi)           a
final and non-appealable judgment is entered by a court of competent
jurisdiction ruling that the General Partner is bankrupt or insolvent, or a
final and non-appealable order for relief is entered by a court with appropriate
jurisdiction against the General Partner, in each case under any federal or
state bankruptcy or insolvency laws as now or hereafter in effect, unless prior
to the entry of such order or judgment and a “majority in interest” (as defined
below) of the remaining Partners Consent in writing to continue the business of
the Partnership and to the appointment, effective as of a date prior to the date
of such order or judgment, of a substitute General Partner.

       

      As used
herein, a “majority in interest” shall refer to Partners (excluding the General
Partner) who hold more than fifty percent (50%) of the outstanding Percentage
Interests not held by the General Partner.

       

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

      
        	
                13.2

              	
                Winding
      Up

              

      

       

      (a)           (i)           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.

      

      (ii)           No
Partner shall take any action that is inconsistent with, or not necessary to or
appropriate for, the winding up of the Partnership’s business and
affairs.

       

      (iii)           The
General Partner, or, if there is no remaining General Partner, any Person
elected unanimously by the Limited Partners holding at least a “majority in
interest” (the General Partner or such other Person being referred to herein as
the “Liquidator”), shall
be responsible for overseeing the winding up and dissolution of the Partnership
and shall take full account of the Partnership’s liabilities and property and
the Partnership property shall be liquidated as promptly as is consistent with
obtaining the fair value thereof, and the proceeds therefrom (which may, to the
extent determined by the General Partner, include shares of common stock or
other securities of the General Partner) shall be applied and distributed in the
following order:

       

      (A)           First,
to the payment and discharge of all of the Partnership’s debts and liabilities
to creditors other than the Partners;

       

      (B)           Second,
to the payment and discharge of all of the Partnership’s debts and liabilities
to the General Partner;

       

      (C)           Third,
to the payment and discharge of all of the Partnership’s debts and liabilities
to the other Partners; and

       

      (D)           the
balance, if any, shall be distributed to all Partners (including the Special
Limited Partner) with positive Capital Accounts in accordance with their
respective positive Capital Account balances.

       

      (iv)           The
General Partner shall not receive any additional compensation for any services
performed pursuant to this Article 13.

       

      (v)           Any
distributions pursuant to this Section 13.2(a) shall be made by the end of the
Partnership’s taxable year in which the liquidation occurs (or, if later, within
90 days after the date of the liquidation).

       

      (b)           (i)           Notwithstanding
the provisions of Section 13.2(a) hereof which 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 (including the Special
Limited Partner), the Liquidator may, in its sole and absolute discretion, defer
for a reasonable time the liquidation of any asset except those necessary to
satisfy liabilities of the Partnership (including to those Partners, including
the Special Limited Partner, as creditors) or distribute to the Partners
(including the Special Limited Partner), in lieu of cash, as tenants in common
and in accordance with the provisions of Section 13.2(a) hereof, undivided
interests in such Partnership assets as the Liquidator deems not suitable for
liquidation.

      
        
           

        

        
          59

          
            

          

        

        
           

        

      

      (ii)           Any
such distributions in kind shall be made only if, in the good faith judgment of
the Liquidator, such distributions in kind are in the best interests of the
Partners (including the Special Limited Partner), 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.

       

      (iii)           The
Liquidator shall determine the fair market value of any property distributed in
kind using such reasonable method of valuation as it may adopt.

       

      (c)           In
the discretion of the Liquidator, a pro rata portion of the distributions that
would otherwise be made to the General Partner, the Limited Partners and the
Special Limited Partner pursuant to this Article 13 may be:

       

      (A)           distributed
to a trust established for the benefit of the General Partner, the Limited
Partners and the Special Limited Partner for the purposes of liquidating
Partnership assets, collecting amounts owed to the Partnership, and paying any
contingent or unforeseen liabilities or obligations of the Partnership or the
General Partner arising out of or in connection with the Partnership; the assets
of any such trust shall be distributed to the General Partner, the Limited
Partners and the Special Limited Partner from time to time, in the reasonable
discretion of the Liquidator, in the same proportions as the amount distributed
to such trust by the Partnership would otherwise have been distributed to the
General Partner, the Limited Partners and the Special Limited Partner 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 to the General Partner, the Limited
Partners and the Special Limited Partner in the manner and order of priority set
forth in Section 13.2(a), as soon as practicable.

       

      
        	
                13.3

              	
                No Obligation to
      Contribute Deficit

              

      

       

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

       

      
        
           

        

        
          60

          
            

          

        

        
           

        

      

      
        	
                13.4

              	
                Rights of Limited
      Partners

              

      

       

      (a)           Except
as otherwise provided in this Agreement, each Limited Partner shall look solely
to the assets of the Partnership for the return of its Capital Contributions and
shall have no right or power to demand or receive property other than cash from
the Partnership.

       

      (b)           Except
as otherwise provided in this Agreement, no Limited Partner shall have priority
over any other Partner as to the return of its Capital Contributions,
distributions, or allocations.

       

      
        	
                13.5

              	
                Notice of
      Dissolution

              

      

       

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

       

      
        	
                13.6

              	
                Termination of
      Partnership and Cancellation of Certificate of Limited
      Partnership

              

      

       

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

       

      
        	
                13.7

              	
                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 among
the Partners (including the Special Limited Partner) during the period of
liquidation.

       

      
        	
                13.8

              	
                Waiver of
      Partition

              

      

       

      Each
Partner hereby waives any right to partition of the Partnership
property.

       

       

      ARTICLE
14

      AMENDMENT
OF PARTNERSHIP AGREEMENT; MEETINGS

       

      
        	
                14.1

              	
                Amendments

              

      

       

      (a)           (i)           The
General Partner shall have the power, without the consent of the Limited
Partners, to amend this Agreement except as set forth in Sections 14.1(b) and
14.1(c) hereof.

      
        
           

        

        
          61

          
            

          

        

        
           

        

      

      (ii)           The
General Partner shall provide notice to the Limited Partners when any action
under this Section 14.1(a) is taken in the next regular communication to the
Limited Partners.

       

      (b)           Notwithstanding
Section 14.1(a) hereof, this Agreement shall not be amended with respect
to

       

      (i)           any
Partner adversely affected without the Consent of such Partner adversely
affected if such amendment would:

       

      (A)           convert
a Limited Partner’s interest in the Partnership into a General Partner
Interest;

       

      (B)           modify
the limited liability of a Limited Partner in a manner adverse to such Limited
Partner; or

       

      (C)           amend
this Section 14.1(b)(i).

       

      (ii)           any
Limited Partner adversely affected without the Consent of Limited Partners
holding more than fifty percent (50%) of the outstanding Percentage Interests of
the Limited Partners adversely affected if such amendment would:

       

      (A)           alter
or change Exchange Rights;

       

      (B)           create
an obligation to make Capital Contributions not contemplated in this
Agreement;

       

      (C)           alter
or change the terms of this Agreement or the Exchange Rights Agreement regarding
the rights of the limited partners with respect to Business
Combinations;

       

      (D)           alter
or change the distribution and liquidation rights provided in Section 5 and 13
hereto, except as otherwise permitted under this Agreement; or

       

      (E)           amend
this Section 14.1(b)(ii).

       

      Section
14.1(b)(i) does not require unanimous consent of all Partners adversely affected
unless the amendment is to be effective against all Partners adversely
affected.

       

      (c)           Notwithstanding
Section 14.1(a) hereof, no provision of
this Agreement shall be amended or modified without the Special Limited
Partner’s prior written consent if such amendment or modification (i) relates to
the distributions, allocations or other rights and privileges of the Special
Limited Partner or (ii) would amend this Section
14.1(c).

       

      
        	
                14.2

              	
                Meetings of the
      Partners

              

      

       

      (a)           (i)           Meetings
of the Partners may be called by the General Partner and shall be called upon
the receipt by the General Partner of a written request by Limited Partners
holding 25 percent or more of the Partnership Interests.

      
        
           

        

        
          62

          
            

          

        

        
           

        

      

      (ii)           The
request shall state the nature of the business to be transacted.

       

      (iii)           Notice
of any such meeting shall be given to all Partners not less than seven (7) days
nor more than thirty (30) days prior to the date of such meeting.

       

      (iv)           Partners
may vote in person or by proxy at such meeting.

       

      (v)           Whenever
the vote or Consent of the Limited Partners is permitted or required under this
Agreement, such vote or Consent may be given at a meeting of the Partners or may
be given in accordance with the procedure prescribed in Section 14.1(a)
hereof.

       

      (vi)           Except
as otherwise expressly provided in this Agreement, the Consent of holders of a
majority of the Percentage Interests held by Partners (including the General
Partner) shall control.

       

      (b)           (i)           Subject
to Section 14.2(a)(vi), 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).

      (ii)           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).

       

      (iii)           Such
consent shall be filed with the General Partner.

       

      (iv)           An
action so taken shall be deemed to have been taken at a meeting held on the
effective date of the consent as certified by the General Partner.

       

      (c)           (i)           Each
Limited Partner may authorize any Person or Persons to act for him 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.

       

      (ii)           Every
proxy must be signed by the Partner or an attorney-in-fact and a copy thereof
delivered to the Partnership.

       

      (iii)           No
proxy shall be valid after the expiration of eleven (11) months from the date
thereof unless otherwise provided in the proxy.

       

      (iv)           Every
proxy shall be revocable at the pleasure of the Partner executing it, such
revocation to be effective upon the General Partner’s receipt of written notice
of such revocation from the Partner executing such proxy.

       

      (d)           (i)           Each
meeting of the Partners shall be conducted by the General Partner or such other
Person as the General Partner may appoint pursuant to such rules for the conduct
of the meeting as the General Partner or such other Person deems
appropriate.

      
        
           

        

        
          63

          
            

          

        

        
           

        

      

      (ii)           Meetings
of Partners may be conducted in the same manner as meetings of the stockholders
of the General Partner and may be held at the same time, and as part of,
meetings of the stockholders of the General Partner.

       

       

      ARTICLE
15

      GENERAL
PROVISIONS

       

      
        	
                15.1

              	
                Addresses and
      Notice

              

      

       

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

       

      
        	
                15.2

              	
                Titles and
      Captions

              

      

       

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

       

      
        	
                15.3

              	
                Pronouns and
      Plurals

              

      

       

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

       

      
        	
                15.4

              	
                Further
      Action

              

      

       

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

       

      
        	
                15.5

              	
                Binding
      Effect

              

      

       

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

       

      
        
           

        

        
          64

          
            

          

        

        
           

        

      

      
        	
                15.6

              	
                Creditors

              

      

       

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

       

      
        	
                15.7

              	
                Waiver

              

      

       

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

       

      
        	
                15.8

              	
                Counterparts

              

      

       

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

       

      
        	
                15.9

              	
                Applicable
      Law

              

      

       

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

       

      
        	
                15.10

              	
                Invalidity of
      Provisions

              

      

       

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

       

      
        	
                15.11

              	
                Entire
      Agreement

              

      

       

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

       

      
        	
                15.12

              	
                Merger

              

      

       

      Subject
to Section 4.2 herein, the Partnership may merge with, or consolidate into, any
Person or Entity in accordance with Section 17-211 of the Act.

       

      
        	
                15.13

              	
                No Rights as
      Stockholders

              

      

       

      Nothing
contained in this Agreement shall be construed as conferring upon the holders of
the Partnership Units any rights whatsoever as stockholders of the General
Partner, including, without limitation, any right to receive dividends or other
distributions made to shareholders or

       

      
        
           

        

        
          65

          
            

          

        

        
           

        

      

      to vote
or to consent or receive notice as shareholders in respect to any meeting or
shareholders for the election of directors of the General Partner or any other
matter.

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
           

        

        
          66

          
            

          

        

        
           

        

      

      

       

      Signature
Page to Agreement of Limited Partnership of American Realty Capital Retail
Operating Partnership, L.P., among the undersigned and the other parties
thereto.

       

      
        	 	
                
                  GENERAL
      PARTNER:

                

                 

                AMERICAN
      REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

                 

                By: ______________________________

                Name:

                Title:

                 

                INITIAL
      LIMITED PARTNER:

                 

                AMERICAN
      REALTY CAPITAL RETAIL ADVISOR, LLC

                 

                By:
      American Realty Capital Retail Special Limited Partnership, LLC, its
      Member

                 

                By: American
      Realty Capital IV, LLC,

                its
      Managing Member

                 

                 

                By: ______________________________

                Name:

                Title:

                 

                SPECIAL
      LIMITED PARTNER:

                 

                AMERICAN
      REALTY CAPITAL RETAIL ADVISOR, LLC

                 

                
                  

                  By: American Realty Capital Retail
      Special 

                  Limited Partnership, LLC, its
      Member

                   

                

                 

                By: American
      Realty Capital IV, LLC,

                its
      Managing Member

                 

                 

                By: ______________________________

                Name:

                Title:

              
	 	 
	 	 

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Corporate/Limited
Liability Company Additional Limited Partner Signature Page to Agreement of
Limited Partnership of American Realty Capital Retail Operating Partnership,
L.P., among the undersigned and the other parties thereto.

       

      
        	
                Dated:  ____________
      __, 20___

              	
                [Name
      of Corporation/LLC]

                 

                 

                
                  By: ______________________________
Name:

                Title:

              
	 
      	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Individual
Additional Limited Partner Signature Page to Agreement of Limited Partnership of
American Realty Capital Retail Operating Partnership, L.P., among the
undersigned and the other parties thereto.

       

      
        	
                Dated:  ____________
      __, 20___

              	 
      
	 
      	 
      
	 
      	_________________________________________________________

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Partnership
Limited Partner Signature Page to Agreement of Limited Partnership of American
Realty Capital Retail Operating Partnership, L.P., among the undersigned and the
other parties thereto.

       

      
        	
                Dated:  ____________
      __, 20___

              	
                [Name
      of LP]

                 

                 

                
                  By: ______________________________
Name:

                Title:

              
	 
      	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

       

      Partners’
Contributions and Partnership Interests

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Name and Address of Partner

                                      	
                                        Type of Interest

                                      	
                                        Capital Contribution

                                      	
                                        Number
      of Partnership Units

                                      	
                                        Percentage
      Interest

                                      
	
                                        American
      Realty Capital – Retail Centers of America, Inc.

                                         

                                        405
      Park Avenue

                                        New
      York, New York 10022

                                      	
                                        General
      Partnership Interest

                                      	
                                        $200,000

                                      	
                                        20,000

                                      	
                                        99%

                                      
	
                                        American
      Realty Capital Retail Advisor, LLC

                                         

                                        405
      Park Avenue

                                        New
      York, New York 10022

                                      	
                                        Limited
      Partnership Interest

                                      	
                                        $2,020

                                      	
                                        202

                                      	
                                        1%

                                      
	
                                        American
      Realty Capital Retail Advisor, LLC

                                         

                                        405
      Park Avenue

                                        New
      York, New York 10022

                                      	
                                        Special
      Limited Partner Interest

                                      	
                                        None

                                      	
                                        Not
      applicable

                                      	
                                        Not
      applicable

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      Exhibit
B

       

      Allocations

       

      For purposes of this Exhibit B, the term “Partner” shall include
the Special Limited Partner.

       

      1.           Allocation of Net Income and
Net Loss.

       

      (a)           General.

       

      (i)        
Net Income, Net Loss and, to the extent necessary, individual items of income,
gain, loss or deduction, of the Partnership for each fiscal year or other
applicable period of the Partnership shall be allocated among the General
Partner and Limited Partners in accordance with their respective Percentage
Interests;

       

      (ii)       
Notwithstanding the foregoing, and subject only to the provisions of
subparagraph 1(b) and, to the extent set forth in this clause (ii) below,
subparagraph 1(c), Net Income shall first be allocated to the Special Limited
Partner until the Special Limited Partner has received aggregate allocations of
income for all fiscal years equal to the aggregate amount of distributions the
Special Limited Partner is entitled to receive or has received with respect to
the Special Limited Partner Interest for such fiscal year and all prior fiscal
years, provided that in the event the Special Limited Partner’s entitlement to
income allocations in such fiscal year would be satisfied pursuant to the
allocations set forth in subparagraph 1(c) below, then such allocations shall be
made pursuant to subparagraph 1(c) below in lieu of the provisions of this
clause (ii).

       

      (b)           General Partner Gross Income
Allocation. There shall be specially allocated to the General Partner an
amount of (i) first, items of Partnership income and (ii) second,
items of Partnership gain during each fiscal year or other applicable period,
before any other allocations are made hereunder, in an amount equal to the
excess, if any, of (A) the cumulative distributions made to the General
Partner under Section 7.3(b) of the Agreement, other than distributions which
would properly be treated as “guaranteed payments” or which are attributable to
the reimbursement of expenses which would properly be deductible by the
Partnership, over (B) the cumulative allocations of Partnership income and
gain to the General Partner under this subparagraph 1(b).

       

      (c)           Special Allocation with
Respect to Sales. Items of income, gain, credit, loss and deduction of
the Partnership for each fiscal year or other applicable period from Sales,
other than any such items allocated under subparagraph 1(b), shall be allocated
among the Partners in a manner that will, as nearly as possible (after giving
effect to the allocations under subparagraph 1(a) and paragraph 2 cause the
Capital Account balance of each Partner at the end of such fiscal year or other
applicable period to equal (i) the amount of the distributions that would be
made to such Partner pursuant to Section 5.1(b) of the Agreement if the
Partnership were dissolved, its affairs wound up and its assets were sold for
cash equal to their Gross Asset Value, taking into account any adjustments
thereto for such period, all Partnership liabilities were satisfied in full in
cash according to their terms (limited with respect to each nonrecourse
liability to the Gross Asset Value of the assets securing such liability), and
Net Sales Proceeds (after satisfaction of such liabilities) were distributed in
full in accordance with Section 5.1(b) to the Partners immediately after making
such allocations, minus (ii) the sum of such Partner’s share of Partnership
Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any
and without duplication, that the Partner would be obligated to contribute to
the capital of the Partnership, all computed immediately prior to the
hypothetical sale of assets

       

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

      2.           Regulatory
Allocations. Notwithstanding any provisions of paragraph 1 of this
Exhibit B, the following special allocations shall be made.

       

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

       

      (b)           Partner Minimum Gain
Chargeback. Except as otherwise provided in Section 1.704-2(i)(4) of the
Regulations, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain
during any fiscal year, each Partner who has a share of the Partner Nonrecourse
Debt Minimum Gain, determined in accordance with Section 1.704-2(i)(5) of the
Regulations, shall be specially allocated items of Partnership income and gain
for such year (and, if necessary, subsequent years) in an amount equal to that
Partner’s share of the net decrease in the Partner Nonrecourse Debt Minimum Gain
to the extent and in the manner required by Section 1.704-2(i) of the
Regulations. The items to be so allocated shall be determined in accordance with
Sections 1.704-2(i)(4) and (j)(2) of the Regulations. This subparagraph 2(b) is
intended to comply with the minimum gain chargeback requirement with respect to
Partner Nonrecourse Debt contained in said section of the Regulations and shall
be interpreted consistently therewith. Allocations pursuant to this subparagraph
2(b) shall be made in proportion to the respective amounts required to be
allocated to each Partner pursuant hereto.

       

      (c)           Qualified Income
Offset. If a Partner unexpectedly receives any adjustments, allocations
or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6) of
the Regulations, and such Partner has an Adjusted Capital Account Deficit, items
of Partnership income (including gross income) and gain shall be specially
allocated to such Partner in an amount and manner sufficient to eliminate the
Adjusted Capital Account Deficit as quickly as possible as required by the
Regulations. This subparagraph 2(c) is intended to constitute a “qualified
income offset” under Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall
be interpreted consistently therewith.

       

      

        
          
             

          

          
            B-2

            
              

            

          

          
             

          

        

      (d)           Nonrecourse
Deductions. Nonrecourse Deductions for any fiscal year or other
applicable period shall be allocated to the Partners in accordance with their
respective Percentage Interests.

       

      (e)           Partner Nonrecourse
Deductions. Partner Nonrecourse Deductions for any fiscal year or other
applicable period with respect to a Partner Nonrecourse Debt shall be specially
allocated to the Partner that bears the economic risk of loss for such Partner
Nonrecourse Debt (as determined under Sections 1.704-2(b)(4) and 1.704-2(i)(1)
of the Regulations).

       

      (f)           Section 754
Adjustment. To the extent an adjustment to the adjusted tax basis of any
asset of the Partnership pursuant to Section 734(b) of the Code or Section
743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the
Regulations, to be taken into account in determining Capital Accounts, 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 among the Partners in a manner consistent with the manner in which
each of their respective Capital Accounts are required to be adjusted pursuant
to such section of the Regulations.

       

      
        (g)          Gross Income
Allocation.  If any
Partner has an Adjusted Capital Account Deficit at the end of any fiscal year or other applicable period which is in
excess of the amount such Member is obligated to restore pursuant to the
penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5), such Member shall be
specially allocated items of Partnership income and gain in the amount of such excess as quickly as
possible, provided that an allocation pursuant to this subparagraph 2(g) shall be made only if and to the extent that such Partner would have an Adjusted
Capital Account Deficit in excess of such
amount after all other allocations provided
for under this Agreement have been made as
if subparagraph 2(c) and this subparagraph 2(g) were not in this
Agreement.

         

      

      3.           Curative Allocations.
The General Partner is authorized to offset all Regulatory Allocations either
with other Regulatory Allocations or with special allocations of other items of
Partnership income, gain, loss, or deduction pursuant to this paragraph
3.  Therefore, notwithstanding any other provision of this Exhibit B
(other than the Regulatory Allocations and Tax Allocations), the General
Partner shall make
such offsetting allocations of Partnership income, gain, loss or deduction in
whatever manner the General Partner determines appropriate so that, after such
offsetting allocations are made, each Partner’s Capital Account balance is, to
the extent possible, equal to the Capital Account balance such Partner would
have had if the Regulatory Allocations were not part of this
Agreement.

       

      4.           Tax
Allocations.

       

      (a)           Items of Income or
Loss. Except as is otherwise provided in this Exhibit B, an allocation of
Partnership Net Income or Net Loss to a Partner shall be treated as an
allocation to such Partner of the same share of each item of income, gain, loss,
deduction and item of tax-exempt income or Section 705(a)(2)(B) expenditure (or
item treated as such expenditure pursuant to Regulations Section
1.704-1(b)(2)(iv)(i)) (“Tax
Items”) that is taken into account in computing Net Income or Net
Loss.

       

      (b)           Section 1245/1250
Recapture. Subject to paragraph 4(c), if any portion of gain
from the sale of Partnership assets is treated as gain which is ordinary income
by virtue of the application of Code Sections 1245 or 1250 (“Affected Gain”), then such Affected
Gain shall be allocated among the Partners in the same proportion that the
depreciation and amortization deductions giving rise to the Affected Gain were
allocated. This subparagraph 4(b) shall not alter the amount of Net Income (or
items thereof) allocated among the Partners, but merely the character of such
Net Income (or items thereof). For purposes hereof, in order to determine the
proportionate allocations of depreciation and amortization deductions for each
fiscal year or other applicable period, such deductions shall be deemed
allocated on the same basis as Net Income and Net Loss for such respective
period.

       

      
        
           

        

        
          B-3

          
            

          

        

        
           

        

      

      (c)           Precontribution Gain,
Revaluations. With respect to any Contributed Property, the Partnership
shall use any permissible method contained in the Regulations promulgated under
Section 704(c) of the Code selected by the General Partner, in its sole
discretion, to take into account any variation between the adjusted basis of
such asset and the fair market value of such asset as of the time of the
contribution (“Precontribution
Gain”). Each Partner hereby agrees to report income, gain, loss and
deduction on such Partner’s federal income tax return in a manner consistent
with the method used by the Partnership. If any asset has a Gross Asset Value
which is different from the Partnership’s adjusted basis for such asset for
federal income tax purposes because the Partnership has revalued such asset
pursuant to Regulations Section 1.704-1(b)(2)(iv)(f), the allocations of Tax
Items shall be made in accordance with the principles of Section 704(c) of the
Code and the Regulations and the methods of allocation promulgated thereunder.
The intent of this subparagraph 4(c) is that each Partner who contributed to the
capital of the Partnership a Contributed Property will bear, through reduced
allocations of depreciation, increased allocations of gain or other items, the
tax detriments associated with any Precontribution Gain. This subparagraph 4(c)
is to be interpreted consistently with such intent.

       

      (d)           Excess Nonrecourse Liability
Safe Harbor. Pursuant to Regulations Section 1.752-3(a)(3), solely for
purposes of determining each Partner’s proportionate share of the “excess
nonrecourse liabilities” of the Partnership (as defined in Regulations Section
1.752-3(a)(3)), the Partners’ respective interests in Partnership profits shall
be determined under any permissible method reasonably determined by the General
Partner; provided, however, that each Partner who has contributed an asset to
the Partnership shall be allocated, to the extent possible, a share of “excess
nonrecourse liabilities” of the Partnership which results in such Partner being
allocated nonrecourse liabilities in an amount which is at least equal to the
amount of income pursuant to Section 704(c) of the Code and the Regulations
promulgated thereunder (the “Liability
Shortfall”). If there is an insufficient amount of nonrecourse
liabilities to allocate to each Partner an amount of nonrecourse liabilities
equal to the Liability Shortfall, then an amount of nonrecourse liabilities in
proportion to, and to the extent of, the Liability Shortfall shall be allocated
to each Partner.

       

      (e)           References to
Regulations. Any reference in this Exhibit B or the Agreement to a
provision of proposed and/or temporary Regulations shall, if such provision is
modified or renumbered, be deemed to refer to the successor provision as so
modified or renumbered, but only to the extent such successor provision applies
to the Partnership under the effective date rules applicable to such successor
provision.)

       

      (f)           Successor Partners.
For purposes of this Exhibit B, a transferee of a Partnership Interest shall be
deemed to have been allocated the Net Income, Net Loss and other items of
Partnership income, gain, loss, deduction and credit allocable to the
transferred Partnership Interest that previously have been allocated to the
transferor Partner pursuant to this Agreement.

       

      

      
        
           

        

        
          B-4

          
            

          

        

        
           

        

      

      Exhibit
C

       

      Certificate
of Limited PartnershipFORM
OF

     

    SUBSCRIPTION
ESCROW AGREEMENT

    

    THIS SUBSCRIPTION ESCROW AGREEMENT
dated as of ___, 2010 (this “Agreement”), is entered into
among Realty Capital Securities, LLC (the “Dealer Manager”), American
Realty Capital - Retail Centers of America, Inc. (the “Company”) and Wells Fargo
Bank, National Association, as escrow agent (the “Escrow Agent”).

    

    WHEREAS, the Company intends
to raise cash funds from investors (the “Investors”) pursuant to a
public offering (the “Offering”) of not less than
200,000 (the “Minimum
Amount”) nor more than 150,000,000 shares of common stock, par value
$0.01 of the Company (the “Securities”), pursuant to the
registration statement on Form S-11 of the Company (No. 333-169355) (as amended,
the “Offering
Document”) a copy of which is attached as Exhibit A
hereto.

    

    WHEREAS, the Escrow Agent is
willing to accept appointment as escrow agent only for the expressed duties
outlined herein.

    

    NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto, intending to be legally bound, hereby
agree as follows:

    

    1.     
       Proceeds to be Escrowed. On or
before the first date of the Offering, the Company shall establish an escrow
account with the Escrow Agent to be invested in accordance with Section 7 hereof
entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS FOR COMMON STOCK OF
AMERICAN REALTY CAPITAL - RETAIL CENTERS OF AMERICA, INC.” (including such
abbreviations as are required for the Escrow Agent’s systems) (the “Escrow
Account”).  All funds received from subscribers of Securities
(“Investors”, which
term shall also include Pennsylvania Investors and Tennessee Investors unless
the context otherwise requires) in payment for the Securities (“Investor Funds”) will be
delivered to the Escrow Agent within one (1) business day following the day upon
which such Investor Funds are received by the Company or its agents, and shall,
upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent and
invested as stated herein. During the term of this Agreement, the Company or its
agents shall cause all checks received by and made payable to it in payment for
the Securities to be endorsed in favor of the Escrow Agent and delivered to the
Escrow Agent for deposit in the Escrow Account.

    

    Proceeds
received from Pennsylvania Investors shall be accounted for separately in a
subaccount entitled “Escrow Account for the Benefit of Pennsylvania Investors
for American Realty Capital - Retail Centers of America, Inc.” (including such
abbreviations as are required for the Escrow Agent’s systems) (the “Pennsylvania Escrow
Account”), until such Pennsylvania Escrow Account has closed pursuant to
Section
4.  The Company shall, and shall cause its agents to, cooperate
with the Escrow Agent in separately accounting for Investor Funds from
Pennsylvania Investors in the Pennsylvania Escrow Account, and the Escrow Agent
shall be entitled to rely upon information provided by the Company or its agents
in this regard.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Proceeds received from Tennessee
Investors shall be accounted for separately in a subaccount entitled “Escrow
Account for the Benefit of Tennessee Investors for American Realty Capital -
Retail Centers of America, Inc.” (including such abbreviations as are required
for the Escrow Agent’s systems) (the “Tennessee Escrow Account,”
and together with the Escrow Account and the Pennsylvania Escrow Account, the
“ARCT III Escrow
Accounts”), until such Tennessee Escrow Account has closed pursuant to
Section
5.  The Company shall, and shall cause its agents to, cooperate
with the Escrow Agent in separately accounting for Investor Funds from Tennessee
Investors in the Tennessee Escrow Account, and the Escrow Agent shall be
entitled to rely upon information provided by the Company or its agents in this
regard.

    

    The Escrow Agent shall have no duty to
make any disbursement, investment or other use of Investor Funds until and
unless it has good and collected funds.  If any checks deposited in
the ARCT III Escrow Accounts are returned or prove uncollectible after the funds
represented thereby have been released by the Escrow Agent, then the Company
shall promptly reimburse the Escrow Agent for any and all costs incurred for
such, upon request, and the Escrow Agent shall deliver the returned checks to
the Company.  The Escrow Agent shall be under no duty or
responsibility to enforce collection of any check delivered to it
hereunder. 
The Escrow Agent reserves the right to deny, suspend or terminate participation
by an Investor to the extent the Escrow Agent deems it advisable or necessary to
comply with applicable laws or to eliminate practices that are not consistent
with the purposes of the Offering.

    

    2.      
      Investors. Investors
(including Pennsylvania and Tennessee Investors) will be instructed by the
Dealer Manager or any soliciting dealers to remit the purchase price in the form
of checks (hereinafter “instruments of payment”) payable to the order of, or
funds wired in favor of, “WELLS FARGO BANK, NA, ESCROW AGENT FOR AMERICAN REALTY
CAPITAL - RETAIL CENTERS OF AMERICA, INC.”  Any checks made payable to
a party other than the Escrow Agent shall be returned to the soliciting dealer
who submitted the check.  By 12:00 p.m. (Noon) the next business day
after receipt of instruments of payment from the Offering, the Company or the
Dealer Manager shall furnish the Escrow Agent with a list of the Investors who
have paid for the Securities showing the name, address, tax identification
number, the amount of Securities subscribed for purchase, the amount paid and
whether such Investors are Pennsylvania Investors or Tennessee
Investors.  The information comprising the identity of Investors shall
be provided to the Escrow Agent in substantially the format set forth in the
“List of Investors” attached hereto as Exhibit B.  The
Escrow Agent shall be entitled to conclusively rely upon the List of Investors
in determining whether Investors are Pennsylvania Investors or Tennessee
Investors, and shall have no duty to independently determine or verify the
same.

    

    When
Soliciting Dealer’s internal supervisory procedures are conducted at the site at
which the subscription agreement and check were initially received by Soliciting
Dealer from the subscriber, Soliciting Dealer shall transmit the subscription
agreement and check to the Escrow Agent by the end of the next business day
following receipt of the check and subscription agreement. When, pursuant to
Soliciting Dealer’s internal supervisory procedures, Soliciting Dealer’s final
internal supervisory procedures are conducted at a different location (the
“Final Review Office”), Soliciting Dealer shall transmit the check and
subscription agreement to the Final Review Office by the end of the next
business day following Soliciting Dealer’s receipt of the subscription agreement
and check. The Final Review Office will, by the end of the next business day
following its receipt of the subscription agreement and check, forward both the
subscription agreement and check to the Escrow Agent. If any subscription
agreement solicited by Soliciting Dealer is rejected by the Dealer Manager or
the Company, then the subscription agreement and check will be returned to the
rejected subscriber within ten (10) business days from the date of
rejection.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    All
Investor Funds deposited in the ARCT III Escrow Accounts shall not be subject to
any liens or charges by the Company or the Escrow Agent, or judgments or
creditors’ claims against the Company, until and unless released to the Company
as hereinafter provided.  The Company understands and agrees that the
Company shall not be entitled to any Investor Funds on deposit in the ARCT III
Escrow Accounts and no such funds shall become the property of the Company, or
any other entity except as released to the Company pursuant to Sections 3, 4 or 5
hereto. The Escrow Agent will not use the information provided to it by the
Company for any purpose other than to fulfill its obligations as Escrow
Agent.  The Company and the Escrow Agent will treat all Investor
information as confidential.  The Escrow Agent shall not be required
to accept any Investor Funds which are not accompanied by the information on the
List of Investors.

    

    3.      
      Disbursement of
Funds.  Once the Escrow Agent is in receipt of good and
collected Investor Funds totaling at least the Minimum Amount from Investors
(excluding funds from Pennsylvania and Tennessee Investors), the Escrow Agent
shall notify the Company of same in writing. Additionally, at the end of the
third business day following the Termination Date (as defined in Section 6), the
Escrow Agent shall notify the Company of the amount of the Investor Funds
received.  If the Minimum Amount has been obtained on or before the
Termination Date, the Escrow Agent shall promptly notify the Company and, upon
receiving acknowledgement of such notice and written instructions from the
Company’s President or Chief Financial Officer to disburse the Investor Funds,
the Escrow Agent shall disburse to the Company, by check or wire transfer, the
funds in the Escrow Account, except for amounts payable by the Company to the
Escrow Agent pursuant to Exhibit D to this
Agreement that remain outstanding.  The Escrow Agent agrees that funds
in the Escrow Account shall not be released to the Company until and unless the
Escrow Agent receives written instructions to release the funds from the
Company’s President or Chief Financial Officer.

    

    If the Minimum Amount has not been
obtained prior to the Termination Date, the Escrow Agent shall promptly
following the Termination Date, but in no event more than thirty (30) days after
the Termination Date, refund to each Investor by check, funds deposited in the
Escrow Account, or shall return the instruments of payment delivered to Escrow
Agent if such instruments have not been processed for collection prior to such
time, directly to each Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the
income earned in the account allocable to each Investor’s investment in
accordance with the terms and conditions specified herein, except that in the
case of Investors who have not provided an executed Form W-9 or substitute Form
W-9 (or the applicable substitute Form W-8 for foreign investors), the Escrow
Agent shall withhold the applicable percentage of the earnings attributable to
those Investors in accordance with IRS regulations. Notwithstanding the
foregoing, the Escrow Agent shall not be required to remit any payments until
funds represented by such payments have been collected by Escrow
Agent.

    

    If the Escrow Agent receives written
notice from the Company that the Company intends to reject an Investor’s
subscription, the Escrow Agent shall pay to the applicable Investor(s), within a
reasonable time not to exceed ten (10) business days after receiving notice of
the rejection, by first class United States Mail at the address provided on the
List of Investors, or at such other address as shall be furnished to the Escrow
Agent by the Investor in writing, all collected sums paid by the Investor for
Securities and received by the Escrow Agent, together with the interest earned
on such Investor Funds (determined in accordance with the terms and conditions
specified herein).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.         
   Disbursement
of Proceeds for Pennsylvania Investors.   Notwithstanding the
foregoing, proceeds from Pennsylvania Investors will not count towards meeting
the Minimum Amount for purposes of Section
3.  Proceeds received from Pennsylvania Investors will not be
released from the Pennsylvania Escrow Account until the Pennsylvania Minimum
Amount is obtained.  If the Pennsylvania Minimum Amount is obtained at
any time prior to the Termination Date, the Escrow Agent shall promptly notify
the Company and, upon receiving acknowledgement of such notice and written
instructions from the Company’s President or Chief Financial Officer, the Escrow
Agent shall disburse to the Company, by check or wire transfer, the funds in the
Pennsylvania Escrow Account, except for amounts payable by the Company to the
Escrow Agent pursuant to Exhibit D to this
Agreement that remain outstanding.  The Escrow Agent agrees that funds
in the Pennsylvania Escrow Account shall not be released to the Company until
and unless the Escrow Agent receives written instructions to release the funds
from the Company’s President or Chief Financial Officer.

    

    If the
Pennsylvania Minimum Amount has not been obtained prior to the Termination Date,
the Escrow Agent shall, within a reasonable time following the Termination Date,
but in no event more than thirty (30) days after the Termination Date, refund to
each Pennsylvania Investor by check funds deposited in the Pennsylvania Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each Pennsylvania Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the
income earned in the account allocable to each Pennsylvania Investor’s
investment in accordance with the terms and conditions specified herein, except
that in the case of Investors who have not provided an executed Form W-9 or
substitute Form W-9, the Escrow Agent shall withhold the applicable percentage
of the earnings attributable to those Investors in accordance with IRS
regulations. Notwithstanding the foregoing, the Escrow Agent shall not be
required to remit any payments until funds represented by such payments have
been collected by Escrow Agent.

    

    If the Escrow Agent is not in receipt
of evidence of subscriptions accepted on or before the close of business on such
date that is 120 days after commencement of the Offering (the Company will
notify the Escrow Agent in writing of the commencement date of the Offering)
(the “Initial Escrow
Period”), and instruments of payment dated not later than that date, for
the purchase of Securities providing for total purchase proceeds from all
nonaffiliated sources that equal or exceed the Pennsylvania Minimum Amount, the
Escrow Agent shall promptly notify the Company. Thereafter, the Company or its
agents shall send to each Pennsylvania Investor by certified mail within ten
(10) calendar days after the end of the Initial Escrow Period a
notification substantially in the form of Exhibit F.  If,
pursuant to such notification, a Pennsylvania Investor requests the return of
his or her Investor Funds within ten (10) calendar days after receipt of the
notification (the “Request
Period”), the Escrow Agent shall promptly refund directly to each
Pennsylvania Investor the collected funds deposited in the Pennsylvania Escrow
Account on behalf of such Pennsylvania Investor or shall return the instruments
of payment delivered, but not yet processed for collection prior to such time,
to the address provided on the List of Investors, upon which the Escrow Agent
shall be entitled to rely, together with interest income earned as determined in
accordance with the terms and conditions specified herein (which interest shall
be paid within five business days after the first business day of the succeeding
month). Notwithstanding the above, if the Escrow Agent has not received an
executed Form W-9 or substitute Form W-9 for such Pennsylvania Investor, the
Escrow Agent shall thereupon remit an amount to such Pennsylvania Investor in
accordance with the provisions hereof, withholding the applicable percentage for
backup withholding required by the Internal Revenue Code, as then in effect,
from any interest income earned on Investor Funds (determined in accordance with
the terms and conditions specified herein) attributable to such Pennsylvania
Investor. However, the Escrow Agent shall not be required to remit such payments
until the Escrow Agent has collected funds represented by such
payments.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    The Investor Funds of Pennsylvania
Investors who do not request the return of their Investor Funds within the
Request Period shall remain in the Pennsylvania Escrow Account for successive
120-day escrow periods (a “Successive Escrow Period”),
each commencing automatically upon the termination of the prior Successive
Escrow Period, and the Company and Escrow Agent shall follow the notification
and payment procedure set forth above with respect to the Initial Escrow Period
for each Successive Escrow Period until the occurrence of the earliest of
(i) the Termination Date, (ii) the receipt and acceptance by the
Company of subscriptions for the purchase of Securities with total purchase
proceeds that equal or exceed the Pennsylvania Minimum Amount and the
disbursement of the Pennsylvania Escrow Account on the terms specified herein,
and (iii) all funds held in the Pennsylvania Escrow Account having been
returned to the Pennsylvania Investors in accordance with the provisions
hereof.

    

    5.      
      Disbursement of Proceeds for
Tennessee Investors.   Notwithstanding the foregoing, proceeds
from Tennessee Investors will not count towards meeting the Minimum Amount for
purposes of Section
3.  Proceeds received from Tennessee Investors will not be
released from the Tennessee Escrow Account until the Tennessee Minimum Amount is
obtained.  If the Tennessee Minimum Amount is obtained at any time
prior to the Termination Date, the Escrow Agent shall promptly notify the
Company and, upon receiving acknowledgement of such notice and written
instructions from the Company’s President or Chief Financial Officer, the Escrow
Agent shall disburse to the Company, by check or wire transfer, the funds in the
Tennessee Escrow Account, except for amounts payable by the Company to the
Escrow Agent pursuant to Exhibit D to this
Agreement that remain outstanding.  The Escrow Agent agrees that funds
in the Tennessee Escrow Account shall not be released to the Company until and
unless the Escrow Agent receives written instructions to release the funds from
the Company’s President or Chief Financial Officer.

    

    If the
Tennessee Minimum Amount has not been obtained prior to the Termination Date,
the Escrow Agent shall, within a reasonable time following the Termination Date,
but in no event more than thirty (30) days after the Termination Date, refund to
each Tennessee Investor by check funds deposited in the Tennessee Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each Tennessee Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the
income earned in the account allocable to each Tennessee Investor’s investment
in accordance with the terms and conditions specified herein, except that in the
case of Investors who have not provided an executed Form W-9 or substitute Form
W-9, the Escrow Agent shall withhold the applicable percentage of the earnings
attributable to those Investors in accordance with IRS regulations.
Notwithstanding the foregoing, the Escrow Agent shall not be required to remit
any payments until funds represented by such payments have been collected by
Escrow Agent.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    6.     
       Term of Escrow. The “Termination Date” shall be
the earliest of:  (i) the close of business on [ ______, 20 __ ], the
one year anniversary of the date the Offering Document was declared effective by
the Securities and Exchange Commission; (ii) all funds held in the ARCT III
Escrow Accounts are distributed to the Company or to Investors pursuant to Section 3, for
Pennsylvania Investors, Section 4 and for Tennessee Investors, Section 5 and the
Company has informed the Escrow Agent in writing to close each of the ARCT III
Escrow Accounts; (iii) the date the Escrow Agent receives written notice from
the Company that it is abandoning the sale of the Securities; and (iv) the date
the Escrow Agent receives notice from the Securities and Exchange Commission or
any other federal or state regulatory authority that a stop or similar order has
been issued with respect to the Offering Document and has remained in effect for
at least twenty (20) days.  After the Termination Date the Company and
its agents shall not deposit, and the Escrow Agent shall not accept, any
additional amounts representing payments by prospective Investors.

    

    7.      
      Duty and Liability of the Escrow
Agent. The sole duty of the Escrow Agent shall be to receive Investor
Funds and hold them subject to release, in accordance herewith, and the Escrow
Agent shall be under no duty to determine whether the Company or the Dealer
Manager is complying with requirements of this Agreement, the Offering or
applicable securities or other laws in tendering the Investor Funds to the
Escrow Agent. No other agreement entered into between the parties, or any of
them, shall be considered as adopted or binding, in whole or in part, upon the
Escrow Agent notwithstanding that any such other agreement may be referred to
herein or deposited with the Escrow Agent or the Escrow Agent may have knowledge
thereof, including specifically but without limitation any Offering Documents
(including the subscription agreement and exhibits thereto), and the Escrow
Agent’s rights and responsibilities shall be governed solely by this
Agreement.  The Escrow Agent shall not be responsible for or be
required to enforce any of the terms or conditions of any Offering Document
(including the subscription agreement and exhibits thereto) or other agreement
between the Company and any other party.  The Escrow Agent may
conclusively rely upon and shall be protected in acting upon any statement,
certificate, notice, request, consent, order or other document believed by it to
be genuine and to have been signed or presented by the proper party or parties.
The Escrow Agent shall have no duty or liability to verify any such statement,
certificate, notice, request, consent, order or other document, and its sole
responsibility shall be to act only as expressly set forth in this Agreement.
Concurrent with the execution of this Agreement, the Company and the Dealer
Manager shall deliver to the Escrow Agent an authorized signers form in the
forms of Exhibit C
and Exhibit
C-1 to this Agreement.  The Escrow Agent shall be under no
obligation to institute or defend any action, suit or proceeding in connection
with this Agreement unless first indemnified to its satisfaction.  The
Escrow Agent may consult counsel of its own choice with respect to any question
arising under this Agreement and the Escrow Agent shall not be liable for any
action taken or omitted in good faith upon advice of such
counsel.  The Escrow Agent shall not be liable for any action taken or
omitted by it in good faith except to the extent that a court of competent
jurisdiction determines that the Escrow Agent’s gross negligence or willful
misconduct was the primary cause of loss. The Escrow Agent is acting solely as
escrow agent hereunder and owes no duties, covenants or obligations, fiduciary
or otherwise, to any other person by reason of this Agreement, except as
otherwise stated herein, and no implied duties, covenants or obligations,
fiduciary or otherwise, shall be read into this Agreement against the Escrow
Agent.  If any disagreement between any of the parties to this Agreement,
or between any of them and any other person, including any Investor, resulting
in adverse claims or demands being made in connection with the matters covered
by this Agreement, or if the Escrow Agent is in doubt as to what action it
should take hereunder, the Escrow Agent may, at its option, refuse to comply
with any claims or demands on it, or refuse to take any other action hereunder,
so long as such disagreement continues or such doubt exists, and in any such
event, the Escrow Agent shall not be or become liable in any way or to any
person for its failure or refusal to act, and the Escrow Agent shall be entitled
to continue so to refrain from acting until (i) the rights of all interested
parties shall have been fully and finally adjudicated by a court of competent
jurisdiction, or (ii) all differences shall have been adjudged and all doubt
resolved by agreement among all of the interested persons, and the Escrow Agent
shall have been notified thereof in writing signed by all such persons.
Notwithstanding the foregoing, the Escrow Agent may in its discretion obey the
order, judgment, decree or levy of any court, whether with or without
jurisdiction and the Escrow Agent is hereby authorized in its sole discretion to
comply with and obey any such orders, judgments, decrees or
levies.  If any controversy should arise with respect to this
Agreement the Escrow Agent shall have the right, at its option, to institute an
interpleader action in any court of competent jurisdiction to determine the
rights of the parties.  IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE,
DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL LOSSES OR
DAMAGES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT LIMITATION LOST PROFITS), EVEN
IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR
DAMAGES AND REGARDLESS OF THE FORM OF ACTION.  The parties agree that
the Escrow Agent has no role in the preparation of the Offering Documents
(including the subscription agreement and exhibits thereto) and makes no
representations or warranties with respect to the information contained therein
or omitted therefrom.  The Escrow Agent shall have no obligation, duty
or liability with respect to compliance with any federal or state securities,
disclosure or tax laws concerning the Offering Documents (including the
subscription agreement and exhibits thereto) or the issuance, offering or sale
of the Securities.  The Escrow Agent shall have no duty or obligation
to monitor the application and use of the Investor Funds once transferred to the
Company, that being the sole obligation and responsibility of the
Company.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    8.        
    Escrow
Agent’s Fee. The Escrow Agent shall be entitled to compensation for its
services as stated in the fee schedule attached hereto as Exhibit D, which
compensation shall be paid by the Company. The fee agreed upon for the services
rendered hereunder is intended as full compensation for the Escrow Agent’s
services as contemplated by this Agreement; provided, however, that if the
conditions for the disbursement of funds under this Agreement are not fulfilled,
or the Escrow Agent renders any material service not contemplated in this
Agreement, or there is any assignment of interest in the subject matter of this
Agreement, or any material modification hereof, or if any material controversy
arises hereunder, or the Escrow Agent is made a party to any litigation
pertaining to this Agreement, or the subject matter hereof, then the Escrow
Agent shall be reasonably compensated for such extraordinary services and
reimbursed for all costs and expenses, including reasonable attorney’s fees,
occasioned by any delay, controversy, litigation or event, and the same shall be
recoverable from the Company.  The Company’s obligations under this
Section 8 shall
survive the resignation or removal of the Escrow Agent and the assignment or
termination of this Agreement.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    9.         
   Investment of
Investor Funds. The Investor Funds shall be deposited in the ARCT III
Escrow Accounts in accordance with Section 3, for
Pennsylvania Investors, Section 4 and Tennessee Investors, Section
5.  The Escrow Agent is hereby directed to invest all funds received
under this Agreement, including principal and interest in, the Wells Fargo Bank
Money Market Deposit Account, as directed in writing in the form of Exhibit E to this
Agreement.  The Escrow Agent shall invest the Investor Funds in
alternative investments in accordance with written instructions as may from time
to time be provided to the Escrow Agent and signed by the Company.  In
the absence of written investment instructions from the Company to the contrary,
the Escrow Agent is hereby directed to invest the Investor Funds in the Wells
Fargo Bank Money Market Deposit Account.  Notwithstanding the
foregoing, Investor Funds shall not be invested in anything other than “Short
Term Investments” in compliance with Rule 15c2-4 of the Securities Exchange Act
of 1934, as amended.  The following are not permissible
investments:  (a) money market mutual funds; (b) corporate debt or
equity securities; (c) repurchase agreements; (d) banker’s acceptance; (e)
commercial paper; and (f) municipal securities.  Any interest received
by the Escrow Agent with respect to the Investor Funds, including reinvested
interest shall become part of the Investor Funds, and shall be disbursed
pursuant to Section
3, for Pennsylvania Investors, Section 4 and Tennessee Investors, Section
5.

     

    The
Escrow Agent shall be entitled to sell or redeem any such investments as
necessary to make any payments or distributions required under this
Agreement.  The Escrow Agent shall have no responsibility or liability
for any loss which may result from any investment made pursuant to this
Agreement, or for any loss resulting from the sale of such
investment.  The parties acknowledge that the Escrow Agent is not
providing investment supervision, recommendations, or advice.

    

    The
Company on the date of this Agreement shall provide the Escrow Agent with a
certified tax identification number by furnishing appropriate IRS form W-9 or
W-8 (or substitute Form W-9 or W-8) and other forms and documents that the
Escrow Agent may reasonably request, including without limitation a tax form for
each Investor.  The Company understands that if such tax reporting
documentation is not so certified to the Escrow Agent, the Escrow Agent may be
required by the Internal Revenue Code of 1986, as amended, to withhold a portion
of any interest or other income earned on the Investor Funds pursuant to this
Agreement.  For tax reporting purposes, all interest and other income
from investment of the Investor Funds shall, as of the end of each calendar year
and to the extent required by the Internal Revenue Service, be reported as
having been earned by the party to whom such interest or other income is
distributed, in the year in which it is distributed.

    

    The
Company agrees to indemnify and hold the Escrow Agent harmless from and against
any taxes, additions for late payment, interest, penalties and other expenses
that may be assessed against the Escrow Agent on or with respect to any payment
or other activities under this Agreement unless any such tax, addition for late
payment, interest, penalties and other expenses shall be determined by a court
of competent jurisdiction to have been caused by the Escrow Agent’s gross
negligence or willful misconduct.  The terms of this Section shall
survive the termination of this Agreement and the resignation or removal of the
Escrow Agent.

    

    10.          Notices.  All
notices, requests, demands, and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on
the day of transmission if sent by facsimile/email transmission bearing an
authorized signature to the facsimile number/email address given below, and
written confirmation of receipt is obtained promptly after completion of
transmission, (c) on the day after delivery to Federal Express or similar
overnight courier or the Express Mail service maintained by the United States
Postal Service, or (d) on the fifth day after mailing, if mailed to the party to
whom notice is to be given, by first class mail, registered or certified,
postage prepaid, and properly addressed, return receipt requested, to the party
as follows:

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    If to the
Company:

    

    405 Park
Avenue

    New York,
New York 10022

    Fax:
(212) 421-5799

    Attention:  Edward
M. Weil, Jr., Executive Vice President and Secretary

    Attention:  Brian
S. Block, Executive Vice President and Chief Financial Officer

    

    with a
copy to:

    

    Proskauer
Rose LLP

    1585
Broadway

    New York,
New York 10036

    Fax:
(212) 969-2900

    Attention:
Peter M. Fass, Esq.

    Attention:  Steven
Fishman, Esq.

    

    If to the
Dealer Manager:

    

    Realty
Capital Securities, LLC

    Three
Copley Place

    Suite
3300

    Boston,
MA 02116

    Attention:  Louisa
Quarto, President

    

    with a
copy to:

    

    Proskauer
Rose LLP

    1585
Broadway

    New York,
New York 10036

    Fax:
(212) 969-2900

    Attention:
Peter M. Fass, Esq.

    

    and:

    

    American
Realty Capital - Retail Centers of America, Inc.

    405 Park
Avenue

    New York,
New York 10022

    Fax:
(212) 421-5799

    Attention:  Edward
M. Weil, Jr., Executive Vice President and Secretary

    Attention:  Brian
S. Block, Executive Vice President and Chief Financial Officer

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    If to
Escrow Agent:

    

    Wells
Fargo Bank, National Association

    45
Broadway, 14th Floor

    New York,
NY  10006

    Fax:
(212) 509-1716

    Attention:  Matt
Sherman

    

    Any party
may change its address for purposes of this Section by giving the other party
written notice of the new address in the manner set forth above.

    

    11.          Indemnification of Escrow Agent.
The Company and the Dealer Manager hereby jointly and severally
indemnify, defend and hold harmless the Escrow Agent from and against, any and
all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees and expenses, which the Escrow Agent may suffer or incur
by reason of any action, claim or proceeding brought against the Escrow Agent
arising out of or relating in any way to this Agreement or any transaction to
which this Agreement relates unless such loss, liability, cost, damage or
expense is finally determined by a court of competent jurisdiction to have been
primarily caused by the willful misconduct of the Escrow Agent.  The
terms of this Section shall survive the termination of this Agreement and the
resignation or removal of the Escrow Agent.

    

    12.          Successors and Assigns. Except
as otherwise provided in this Agreement, no party hereto shall assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the other parties hereto and any such attempted assignment without
such prior written consent shall be void and of no force and effect. This
Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the parties hereto.  Any corporation or
association into which the Escrow Agent may be converted or merged, or with
which it may be consolidated, or to which it may sell or transfer all or
substantially all of its corporate trust business and assets as a whole or
substantially as a whole, or any corporation or association resulting from any
such conversion, sale, merger, consolidation or transfer to which the Escrow
Agent is a party, shall be and become the successor Escrow Agent under this
Agreement and shall have and succeed to the rights, powers, duties, immunities
and privileges as its predecessor, without the execution or filing of any
instrument or paper or the performance any further act.

    

    13.          Governing Law; Jurisdiction.
This Agreement shall be construed, performed, and enforced in accordance
with, and governed by, the internal laws of the State of New York, without
giving effect to the principles of conflicts of laws thereof.

    

    14.          Severability. If any part of
this Agreement is declared by any court or other judicial or administrative body
to be null, void, or unenforceable, said provision shall survive to the extent
it is not so declared, and all of the other provisions of this Agreement shall
remain in full force and effect.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    15.           Amendments; Waivers. This
Agreement may be amended or modified, and any of the terms, covenants,
representations, warranties, or conditions hereof may be waived, only by a
written instrument executed by the parties hereto, or in the case of a waiver,
by the party waiving compliance. Any waiver by any party of any condition, or of
the breach of any provision, term, covenant, representation, or warranty
contained in this Agreement, in any one or more instances, shall not be deemed
to be nor construed as further or continuing waiver of any such condition, or of
the breach of any other provision, term, covenant, representation, or warranty
of this Agreement.  The Company and the Dealer Manager agree that any
requested waiver, modification or amendment of this Agreement shall be
consistent with the terms of the Offering.

    

    16.           Entire Agreement. This
Agreement contains the entire agreement and understanding among the parties
hereto with respect to the escrow contemplated hereby and supersedes and
replaces all prior and contemporaneous agreements and understandings, oral or
written, with regard to such escrow.

    

    17.           Section Headings. The section
headings in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

    

    18.           Counterparts. This Agreement
may be executed (including by facsimile transmission) with counterpart signature
pages or in counterparts, each of which shall be deemed an original, but all of
which shall constitute the same instrument.

    

    19.           Resignation. The Escrow Agent
may resign upon 30 days’ advance written notice to the parties hereto. If a
successor escrow agent is not appointed by the Company within the 30-day period
following such notice, the Escrow Agent may petition any court of competent
jurisdiction to name a successor escrow agent, or may interplead the Investor
Funds with such court, whereupon the Escrow Agent’s duties hereunder shall
terminate.

    

    20.           References to Escrow
Agent.  Other than the Offering Document (including the
subscription agreement and exhibits thereto) and any amendments thereof or
supplements thereto, no printed or other matter in any language (including,
without limitation, notices, reports and promotional material) which mentions
the Escrow Agent’s name or the rights, powers, or duties of the Escrow Agent
shall be issued by the Company or the Dealer Manager, or on the Company’s or the
Dealer Manager’s behalf, unless the Escrow Agent shall first have given its
specific written consent thereto.  Notwithstanding the foregoing, any
amendment or supplement to the Offering Document (including the subscription
agreement and exhibits thereto) that revises, alters, modifies, changes or adds
to the description of the Escrow Agent or its rights, powers or duties hereunder
shall not be issued by the Company or the Dealer Manager, or on the Company’s or
Dealer Manager’s behalf, unless the Escrow Agent has first given specific
written consent thereto.

    

    [Signature
page follows]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Escrow Agreement to be executed the date and
year first set forth above.

    

    AMERICAN
REALTY CAPITAL - RETAIL CENTERS OF AMERICA, INC.

    

    
      
        	
                By: 

              	 
      	 
      
	 
      	
                Name: 

              	
                Nicholas
      S. Schorsch

              	 
      
	 
      	
                Title: 

              	
                Chief
      Executive Officer

              	 
      

      

    

    

    REALTY
CAPITAL SECURITIES, LLC

    

    
      
        	
                By: 

              	 
      	 
      
	 
      	
                Name: 

              	
                Louisa
      Quarto

              	 
      
	 
      	
                Title:

              	
                President

              	 
      

      

    

    

    WELLS
FARGO BANK, NATIONAL

    ASSOCIATION,
as Escrow Agent

    

    
      
        	
                By: 

              	 
      	 
      
	 
      	
                Name: 

              	 
      	 
      
	 
      	
                Title:

              	 
      	 
      

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Copy of
Offering Document

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Exhibit
B

    

    List of
Investors

    

    Pursuant
to the Escrow Agreement dated as of ____, 2010, among Realty Capital Securities,
LLC, American Realty Capital - Retail Centers of America, Inc. (the “Company”), and Wells Fargo
Bank, National Association (the “Escrow Agent”), the Company
hereby certifies that the following Investors have paid money for the purchase
of shares of the Company’s common stock, par value $0.01 (“Securities”), and the
money has been deposited with the Escrow Agent:

    

    
      	
              1.

            	
              Name
      of Investor

            

    

    Address

    Tax
Identification Number

    Amount of
Securities subscribed for

    Amount of
money paid and deposited with Escrow Agent

    Is
Investor a resident of Pennsylvania (Yes or No)?

    Is
Investor a resident of Tennessee (Yes or No)?

    

    
      	
              2.

            	
              Name
      of Investor

            

    

    Address

    Tax
Identification Number

    Amount of
Securities subscribed for

    Amount of
money paid and deposited with Escrow Agent

    Is
Investor a resident of Pennsylvania (Yes or No)?

    Is
Investor a resident of Tennessee (Yes or No)?

    

    
      
        	
                Dated:    

              	
                   

              

      

    

    

    REALTY
CAPITAL SECURITIES, LLC

    

    
      
        	
                By: 

              	 
      
	 
      	
                Name: 

              	
                Louisa
      Quarto

              
	 
      	
                Title:

              	
                President

              

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Exhibit
C

    

    CERTIFICATE
AS TO AUTHORIZED SIGNATURES

    

    
      Account
Name:

    

    

    
      Account
Number:

    

     

    The
specimen signatures shown below are the specimen signatures of the individuals
who have been designated as Authorized Representatives of American Realty Capital - Retail
Centers of America, Inc. and are authorized to initiate and approve
transactions of all types for the above-mentioned account on behalf of American Realty Capital - Retail
Centers of America, Inc.

    

    
      
        	
                Name/Title

              	
                Specimen Signature

              
	 
      	 
      
	
                Nicholas
      S. Schorsch

              	
                    

              
	
                Chief
      Executive Officer

              	
                Signature

              
	 
      	 
      
	
                William
      M. Kahane

              	
                    

              
	
                President
      and Treasurer

              	
                Signature

              
	 
      	 
      
	
                Brian
      Block

              	
                    

              
	
                Executive
      Vice President and Chief Financial

              	
                Signature

              
	
                Officer

              	 
      
	 
      	 
      
	
                Edward
      M. Weil, Jr.

              	
                    

              
	
                Executive
      Vice President and Secretary

              	
                Signature

              

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    Exhibit
C-1

    

    CERTIFICATE
AS TO AUTHORIZED SIGNATURES

    

    
      Account
Name:

    

    

    
      Account
Number:

    

     

    The
specimen signatures shown below are the specimen signatures of the individuals
who have been designated as Authorized Representatives of Realty Capital Securities, LLC
and are authorized to initiate and approve transactions of all types for
the above-mentioned account on behalf of Realty Capital Securities,
LLC

    

    
      
        	
                Name/Title

              	
                Specimen Signature

              
	 
      	 
      
	
                Louisa
      Quarto

              	
                   

              
	
                President

              	
                Signature

              
	 
      	 
      
	
                Kamal
      Jafarnia

              	
                   

              
	
                Executive
      Vice President and Chief Compliance

              	
                Signature

              
	
                Officer

              	 
      

      

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Exhibit
D

    

    
      
        
          
            
              	
                        Wells
      Fargo Bank

                        Corporate
      Trust Services

                        1445
      Ross Avenue, 2nd
      Floor

                        Mac
      T5303-022

                        Dallas,
      TX  75202

                    	
                      [NAME]

                      [POSITION]

                      Tel:  [__________]

                      Fax:  [__________]

                      [EMAIL]

                    	
                      [logo] 

                    

            

          

        

      

    

    

    GENERAL
SCHEDULE OF FEES

    to
act as ESCROW AGENT for the

    American
Realty Capital - Retail Centers of America, Inc. Subscription Escrow up to
$50,000,000

    

    
      
        
          	
                  Acceptance Fee:

                	
                  $       500

                

        

      

    

     

    Initial
Fees as they relate to Wells Fargo Bank acting in the capacity of Escrow Agent –
includes review of the Escrow Agreement; acceptance of the Escrow appointment;
setting up of Escrow Account(s) and accounting records; and coordination of
receipt of funds for deposit to the Escrow Account(s).

     

    Acceptance
Fee payable at time of Escrow Agreement execution.

    

    
      
        
          
            	
                    Escrow Agent Annual Administration
      Fee:

                  	
                    $      5,000.00
      on first offering, $3,500 on subsequent

                  
	
                    Pennsylvania
      Sub-Accounting Administration Fee:

                  	
                    $      750

                  
	
                    Tennessee
      Sub-Accounting Administration Fee:

                  	
                    $      750

                  

          

        

      

    

    

    For
ordinary administrative services by Escrow Agent – includes daily routine
account management; investment transactions; cash transaction processing
(including wire and check processing); monitoring claim notices pursuant to the
agreement; disbursement of funds in accordance with the agreement; and mailing
of trust account statements to all applicable parties.  Float credit
received by the bank for receiving funds that remain uninvested are deemed part
of the Paying Agent/Escrow Agent’s compensation.  These fees do not
contemplate paying interest to Investors or providing 1099s which would be the
responsibility of the Company. If individual 1099s, interest checks, interest
accrual calculations or any individual Investor information are required
additional fees will be charged.  For rejected subscriptions or a
failed offering, the following fees will apply.

    

    1099
Reporting $25 each

    Interest
Rate Calculations and Interest Checks/Wires $ 35 each

    Returned
Item Charges $35 each

     

    The administrative fee is payable in
advance, with the first year fee due upon opening of the account. The
Annual Fee covers a full year or any part thereof, and therefore will not be
prorated or refunded in the year of early termination.  These fees do
not include bank activity fees associated with Desktop Deposit
system.  Fees for these services will be provided separately by our
Treasury Management Group.

    

    Wells
Fargo’s bid is based on the following assumptions:

     

    
      	
              ·

            	
              Number
      of Escrow Accounts to be established:  Three
  (3)

            

    

     

    
      	
              ·

            	
              Number
      of Deposits to Escrow Accounts:  Electronically, approximately
      (10-20 per day)

            

    

     

    
      	
              ·

            	
              Number
      of Withdrawals from Escrow Accounts:  Not more than two per
      week.

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
              ·

            	
              Term
      of Escrow:  One (1) year

            

    

     

    
      	
              ·

            	
              APPOINTMENT SUBJECT TO RECEIPT
      OF REQUESTED DUE DILIGENCE INFORMATION AS PER THE USA PATRIOT
      ACT

            

    

     

    
      	
              ·

            	
              THIS PROPOSAL ASSUMES THAT
      BALANCES IN THE ACCOUNT WILL BE INVESTED IN MONEY MARKET
      FUNDS

            

    

     

    
      	
              ·

            	
              ALL FUNDS WILL BE RECEIVED
      FROM OR DISTRIBUTED TO A DOMESTIC OR AN APPROVED FOREIGN
      ENTITY

            

    

     

    
      	
              ·

            	
              IF THE ACCOUNT(S) DOES NOT OPEN
      WITHIN THREE (3) MONTHS OF THE DATE SHOWN BELOW, THIS PROPOSAL WILL BE
      DEEMED TO BE NULL AND VOID

            

    

    

    
      
        	
                Out-of Pocket
      Expenses:

              	
                At
      Cost

              

      

    

     

    We will
charge for out-of-pocket expenses in response to specific tasks assigned by the
client or provided for in the escrow agreement.  Possible expenses
would be, but are not limited to, express mail and messenger charges, travel
expenses to attend closing or other meetings.   There are no
charges for indirect out-of- pocket expenses.

     

    This
fee schedule is based upon the assumptions listed above which pertain to the
responsibilities and risks involved in Wells Fargo undertaking the role of
Escrow Agent.  These assumptions are based on information provided to
us as of the date of this fee schedule.  Our fee schedule is subject
to review and acceptance of the final documents.  Should any of the
assumptions, duties or responsibilities change, we reserve the right to affirm,
modify or rescind our fee schedule. Extraordinary services (services other than
the ordinary administration services of Escrow Agent described above) are not
included in the annual administration fee and will be billed as incurred at the
rates in effect from time to time.

    

    
      
        
          	 	
                  Submitted
      on:

                	
                  ,
      2010

                

        

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    Exhibit
E

    

    Agency
and Custody Account Direction

    For
Cash Balances

    Wells
Fargo Bank Money Market Deposit Accounts

    

    Direction
to use the following Wells Fargo Bank Money Market Deposit Accounts for Cash
Balances for the escrow account (the “Account”) created under the
Escrow Agreement to which this Exhibit E is
attached.

    

    You are
hereby directed to deposit, as indicated below, or as we shall direct further in
writing from time to time, all cash in the Account in the following money market
deposit account of Wells Fargo Bank, National Association (“Bank”):

    

    Wells
Fargo Bank Money Market Deposit Account (“MMDA”)

    

    We
understand that amounts on deposit in the MMDA are insured, subject to the
applicable rules and regulations of the Federal Deposit Insurance Corporation
(the “FDIC”), in the
basic FDIC insurance amount of $250,000 per depositor, per insured bank. This
includes principal and accrued interest up to a total of $250,000.

    

    We
acknowledge that we have full power to direct investments in the
Account.

    

    We
understand that we may change this direction at any time and that it shall
continue in effect until revoked or modified by us by written notice to
you.

    

    
      
        	 
      	
                American
      Realty Capital - Retail Centers of

                America,
      Inc.

              
	 
      	 
      
	 
      	
                By: 

              	
                   

              
	 
      	 
      	
                Signature

              
	 
      	 
      	 
      
	 
      	 
      	
                   

              
	 
      	 
      	
                Date

              

      

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    Exhibit
F

    

    [Form of
Notice to Pennsylvania Investors]

    

    You have
tendered a subscription to purchase shares of common stock of American Realty
Capital - Retail Centers of America, Inc. (the “Company”). Your subscription
is currently being held in escrow.  The guidelines of the Pennsylvania
Securities Commission do not permit the Company to accept subscriptions from
Pennsylvania residents until an aggregate of $75,000,000 of gross offering
proceeds have been received by the Company. The Pennsylvania guidelines provide
that until this minimum amount of offering proceeds is received by the Company,
every 120 days during the offering period Pennsylvania Investors may
request that their subscription be returned.  If you wish to continue
your subscription in escrow until the Pennsylvania minimum subscription amount
is received, nothing further is required.

    

    If you
wish to terminate your subscription for the Company’s common stock and have your
subscription returned please so indicate below, sign, date, and return to the
Escrow Agent, Wells Fargo Bank, National Association at 45 Broadway, 14th Floor,
New York, NY  10006, Attn:  Matt Sherman.

    

    I hereby
terminate my prior subscription to purchase shares of common stock of American
Realty Capital - Retail Centers of America, Inc. and request the return of my
subscription funds.  I certify to American Realty Capital - Retail
Centers of America, Inc. that I am a resident of Pennsylvania.

    

    
      
        	 	
                Signature:       

              	
                   

              
	 	 
      	 
      
	 	
                Name:

              	
                   

              
	 	 
      	
                (please
      print)

              
	 	 
      	 
      
	 	
                Date:

              	
                   

              

      

    

    

    Please
send the subscription refund to:

    
      
        
          
            
              
                
                  
                    
                      	 	
                               

                            
	 	 
      
	 	
                               

                            
	 	 
      
	 	 
      
	 	
                               

                            
	 	 

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        20

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