Document:

exh10_1.htm

    Exhibit 10.1

     

     

     

     

     

    
 

    SECOND
AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

     

    OF

     

    PACIFIC
OFFICE PROPERTIES, L.P.

     

    a
Delaware limited partnership

     

    dated as
of December 30, 2009

     

    

     

    

     

    

     

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    

    
      	
              TABLE
      OF CONTENTS

            	 	
              Page

            	 
	 	1	 	
              DEFINITIONS.

            	 	 	1	 
	 	2	 	
              ORGANIZATIONAL
      MATTERS.

            	 	 	22	 
	 	2.1	 	
              Organization

            	 	 	22	 
	 	2.2	 	
              Name

            	 	 	22	 
	 	2.3	 	
              Registered
      Office and Agent; Principal Office

            	 	 	23	 
	 	2.4	 	
              Power
      of Attorney.

            	 	 	23	 
	 	2.5	 	
              Term

            	 	 	24	 
	 	3	 	
              PURPOSE.

            	 	 	24	 
	 	3.1	 	
              Purpose
      and Business

            	 	 	24	 
	 	3.2	 	
              Powers

            	 	 	25	 
	 	3.3	 	
              Partnership
      Only for Partnership Purposes

            	 	 	25	 
	 	3.4	 	
              Representations
      and Warranties by the Parties.

            	 	 	26	 
	 	4	 	
              CAPITAL
      ACCOUNTS; CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP
      INTERESTS.

            	 	 	28	 
	 	4.1	 	
              Capital
      Accounts

            	 	 	28	 
	 	4.2	 	
              General
      Partner Interests

            	 	 	29	 
	 	4.3	 	
              Class
      A Convertible Preferred Units.

            	 	 	29	 
	 	4.4	 	
              Issuances
      of Additional Partnership Interests.

            	 	 	32	 
	 	4.5	 	
              Additional
      Funds and Capital Contributions.

            	 	 	34	 
	 	4.6	 	
              Stock
      Incentive Plans.

            	 	 	34	 
	 	4.7	 	
              No
      Interest; No Return

            	 	 	36	 
	 	4.8	 	
              Other
      Contribution Provisions

            	 	 	36	 
	 	4.9	 	
              Not
      Publicly Traded

            	 	 	36	 
	 	5	 	
              DISTRIBUTIONS.

            	 	 	37	 
	 	5.1	 	
              Requirement
      and Characterization of Distributions.

            	 	 	37	 
	 	5.2	 	
              Distributions
      in Kind

            	 	 	37	 
	 	5.3	 	
              Amounts
      Withheld

            	 	 	38	 
	 	5.4	 	
              Distributions
      Upon Liquidation

            	 	 	38	 
	 	5.5	 	
              Distributions
      to Reflect Issuance of Additional Partnership Units

            	 	 	38	 
	 	5.6	 	
              Restricted
      Distributions

            	 	 	38	 
	 	6	 	
              ALLOCATIONS.

            	 	 	38	 
	 	6.1	 	
              Timing
      and Amount of Allocations of Income and Loss

            	 	 	38	 
	 	6.2	 	
              General
      Allocations.

            	 	 	38	 
	 	6.3	 	
              Additional
      Allocation Provisions

            	 	 	39	 
	 	6.4	 	
              Tax
      Allocations.

            	 	 	42	 
	 	7	 	
              MANAGEMENT
      AND OPERATIONS OF BUSINESS.

            	 	 	42	 
	 	7.1	 	
              Management.

            	 	 	42	 
	 	7.2	 	
              Certificate
      of Limited Partnership

            	 	 	46	 
	 	7.3	 	
              Reimbursement
      of the General Partner.

            	 	 	47	 

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

       

      	 	7.4	 	
              Outside
      Activities of the General Partner

            	 	 	47	 
	 	7.5	 	
              Contracts
      with Affiliates.

            	 	 	48	 
	 	7.6	 	
              Indemnification.

            	 	 	49	 
	 	7.7	 	
              Liability
      of the General Partner.

            	 	 	51	 
	 	7.8	 	
              Other
      Matters Concerning the General Partner.

            	 	 	52	 
	 	7.9	 	
              Title
      to Partnership Assets

            	 	 	53	 
	 	7.10	 	
              Reliance
      by Third Parties

            	 	 	53	 
	 	8	 	
              RIGHTS
      AND OBLIGATIONS OF LIMITED PARTNERS.

            	 	 	54	 
	 	8.1	 	
              Limitation
      of Liability

            	 	 	54	 
	 	8.2	 	
              Management
      of Business

            	 	 	54	 
	 	8.3	 	
              Outside
      Activities of Limited Partners

            	 	 	54	 
	 	8.4	 	
              No
      Return of Capital

            	 	 	54	 
	 	8.5	 	
              Redemption
      Rights of Qualifying Parties.

            	 	 	55	 
	 	8.6	 	
              Mergers

            	 	 	60	 
	 	9	 	
              BOOKS,
      RECORDS, ACCOUNTING AND REPORTS.

            	 	 	60	 
	 	9.1	 	
              Records
      and Accounting.

            	 	 	60	 
	 	9.2	 	
              Fiscal
      Year

            	 	 	61	 
	 	9.3	 	
              Reports.

            	 	 	61	 
	 	10	 	
              TAX
      MATTERS.

            	 	 	61	 
	 	10.1	 	
              Preparation
      of Tax Returns

            	 	 	61	 
	 	10.2	 	
              Tax
      Elections

            	 	 	62	 
	 	10.3	 	
              Tax
      Matters Partner.

            	 	 	62	 
	 	10.4	 	
              Withholding

            	 	 	63	 
	 	10.5	 	
              Organizational
      Expenses

            	 	 	64	 
	 	11	 	
              TRANSFERS
      AND WITHDRAWALS.

            	 	 	64	 
	 	11.1	 	
              Transfer.

            	 	 	64	 
	 	11.2	 	
              Transfer
      of General Partner’s Partnership Interest.

            	 	 	64	 
	 	11.3	 	
              Transfer
      of Limited Partners’ Partnership Interests.

            	 	 	65	 
	 	11.4	 	
              Substituted
      Limited Partners.

            	 	 	67	 
	 	11.5	 	
              Assignees

            	 	 	67	 
	 	11.6	 	
              General
      Provisions.

            	 	 	68	 
	 	12	 	
              ADMISSION
      OF PARTNERS.

            	 	 	69	 
	 	12.1	 	
              Admission
      of Successor General Partner

            	 	 	69	 
	 	12.2	 	
              Admission
      of Additional Limited Partners.

            	 	 	70	 
	 	12.3	 	
              Amendment
      of Agreement and Certificate of Limited Partnership

            	 	 	70	 
	 	13	 	
              DISSOLUTION,
      LIQUIDATION AND TERMINATION.

            	 	 	71	 
	 	13.1	 	
              Dissolution

            	 	 	71	 
	 	13.2	 	
              Winding
      Up.

            	 	 	72	 
	 	13.3	 	
              Deemed
      Distribution and Recontribution

            	 	 	74	 
	 	13.4	 	
              Rights
      of Limited Partners

            	 	 	74	 
	 	13.5	 	
              Notice
      of Dissolution

            	 	 	74	 

       

       

      
        
          
          

        

        
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      	 	13.6	 	
              Cancellation
      of Certificate of Limited Partnership

            	 	 	74	 
	 	13.7	 	
              Reasonable
      Time for Winding-Up

            	 	 	75	 
	 	14	 	
              PROCEDURES
      FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS;
MEETINGS.

            	 	 	75	 
	 	14.1	 	
              Procedures
      for Actions and Consents of Partners

            	 	 	75	 
	 	14.2	 	
              Amendments.

            	 	 	75	 
	 	14.3	 	
              Meetings
      of the Partners.

            	 	 	77	 
	 	15	 	
              GENERAL
      PROVISIONS.

            	 	 	78	 
	 	15.1	 	
              Addresses
      and Notice

            	 	 	78	 
	 	15.2	 	
              Entire
      Agreement

            	 	 	78	 
	 	15.3	 	
              Governing
      Law Jurisdiction

            	 	 	78	 
	 	15.4	 	
              Headings

            	 	 	78	 
	 	15.5	 	
              Pronouns
      and Plurals

            	 	 	78	 
	 	15.6	 	
              Further
      Action

            	 	 	78	 
	 	15.7	 	
              Binding
      Effect

            	 	 	79	 
	 	15.8	 	
              Counterparts

            	 	 	79	 
	 	15.9	 	
              Fax
      Signatures

            	 	 	79	 
	 	15.10	 	
              Partial
      Invalidity

            	 	 	79	 
	 	15.11	 	
              Waiver.

            	 	 	79	 
	 	15.12	 	
              Limitation
      to Preserve REIT Status

            	 	 	79	 
	 	15.13	 	
              No
      Partition

            	 	 	80	 
	 	15.14	 	
              No
      Third-Party Rights Created Hereby

            	 	 	81	 
	 	15.15	 	
              No
      Rights as Stockholders

            	 	 	81	 
	 	15.16	 	
              Construction

            	 	 	81	 

    

     

    

    
      
         

      

      
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    SECOND
AMENDED AND RESTATED

     

    AGREEMENT
OF LIMITED PARTNERSHIP

     

    OF

     

    PACIFIC
OFFICE PROPERTIES, L.P.

     

    The
undersigned, Pacific Office Properties Trust, Inc., a Maryland
corporation (defined herein as the “General Partner”), being the
sole general partner of Pacific Office Properties, L.P., a Delaware limited
partnership (defined herein as the “Partnership”), does hereby
amend and restate the Prior LP Agreement (as defined below) this 30th day
of December, 2009 as follows:

     

    RECITALS

     

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

     

    B. The
Original LP Agreement was amended and restated as of March 19, 2008, as amended
by the First Amendment thereto, dated as of April 30, 2008, the Second Amendment
thereto, dated as of June 19, 2008, and the Third Amendment thereto, dated as of
September 25, 2009 (as amended, the “Prior LP
Agreement”).

     

    C. The
General Partner desires to make certain additional amendments to the Prior LP
Agreement and has obtained the requisite consent of the Limited Partners (as
defined herein) to such amendments.

     

    D. In
connection with such amendments, the General Partner desires to amend and
restate the Prior LP Agreement in its entirety.

     

    

     

    AGREEMENTS

     

    1. DEFINITIONS.

     

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

1.

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Actions” has the meaning set
forth in Section 

7.6.1
hereof.

     

    “Additional Funds” has the
meaning set forth in Section 

4.5.1.

     

    “Additional Limited Partner”
means a Person who is admitted to the Partnership as a Limited Partner pursuant
to Section 

4.4 and Section 

12.2 hereof and who is
shown as such on the books and records of the Partnership.

     

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

     

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

     

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

     

    The
foregoing definition of Adjusted Capital Account is intended to comply with the
requirements of the alternate test for economic effect contained in Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

     

    “Adjusted Capital Account
Deficit” means, with respect to any Partner, the deficit balance, if any,
in such Partner’s Adjusted Capital Account.

     

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

     

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

     

    
“Advisory Agreement” means that
certain Amended and Restated Advisory Agreement dated as of March 3, 2009 that
the Partnership entered into with the Advisor and the General Partner, as the
same may be amended or supplemented from time to time.

     

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

     

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

     

    “Applicable Percentage” has the meaning set
forth in Section
8.5.6.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

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

     

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

11.5
hereof.

     

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

     

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

4.

     

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

13.2.3.

     

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

4 hereof.

     

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

     

    “Class A Common Units” means (i) the
Common Units outstanding as of the date of this Agreement other than the Class B
Common Units, and (ii) any Common Units issued after the date of this Agreement
pursuant to Section 4.4
designated as such.

     

    “Class B Common Units” means (i) the
Common Units issued as of the Effective Time in connection with the transactions
contemplated by the Master Agreement, all 13,576,165 of which are held by POP
Venture as of the date of this Agreement, and (ii) any Common Units issued after
the date of this Agreement pursuant to Section 4.4 designated as
such.

     

    “Class C Common Units” means Common
Units issued upon redemption of Class B Common Units, which will have no rights
of redemption or conversion hereunder.

     

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

4.3.

     

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

     

     

    
      
        
        

      

      
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    (i) the
Partnership, when and as authorized by a majority of the Independent Directors,
(a) declares or pays a distribution on its Common Units in Common Units or
makes a distribution to all holders of its Common Units in Common Units,
(b) splits or subdivides its Common Units or (c) effects a reverse
stock split or otherwise combines its Common Units into a smaller number of
Common Units, then the Class A Convertible Preferred Unit Conversion Factor
shall be adjusted by multiplying the Class A Convertible Preferred Unit
Conversion Factor previously in effect by a fraction (A) the numerator of
which shall be the number of Common Units on the record date for such dividend,
distribution, split, subdivision, reverse split or combination (assuming for
such purposes that such dividend, distribution, split, subdivision, reverse
split or combination has occurred as of such time) and (B) the denominator
of which shall be the actual number of Common Units (determined without the
above assumption) on the record date for such dividend, distribution, split,
subdivision, reverse split or combination;

     

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

     

    (iii) the
Partnership, when and as authorized by a majority of the Independent Directors,
shall, by dividend or otherwise, distribute to all holders of its Common Units
evidences of its indebtedness or assets (including securities, but excluding any
dividend or distribution referred to in subsection (i) above), which
evidences of indebtedness or assets relate to assets not received by the General
Partner pursuant to a pro rata distribution by the Partnership, then the Class A
Convertible Preferred Unit Conversion Factor shall be adjusted to equal the
amount determined by multiplying the Class A Convertible Preferred Unit
Conversion Factor in effect immediately prior to the close of business on the
date fixed for determination of shareholders entitled to receive such
distribution by a fraction (a) the numerator of which shall be such Value
of a Common Unit on the date fixed for such determination and (b) the
denominator of which shall be the amount of the numerator less the then-fair
market value (as determined by the General Partner, whose determination shall be
conclusive) of the portion of the evidences of indebtedness or assets so
distributed applicable to one Common Unit;

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Any
adjustments to the Class A Convertible Preferred Unit Conversion Factor shall
become effective immediately after the effective date of such event, retroactive
to the record date, if any, it being intended that if a Specified Redemption
Date shall fall between the record date and the effective date of any event of
the type described above, then the Class A Convertible Preferred Unit Conversion
Factor applicable to such redemption shall be adjusted to take into account such
event, provided,
however,
that any Limited Partner may waive, by written notice to the General Partner,
the effect of any adjustment to the Class A Convertible Preferred Unit
Conversion Factor applicable to the Class A Convertible Preferred Units held by
such Limited Partner, and, thereafter, such adjustment will not be effective as
to such Class A Convertible Preferred Units.

     

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

     

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

     

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

4.3.2.

     

    “Class A Preferred Transition Unlock
Date” means for any Class B Common Unit acquired upon conversion of all
or any part of Class A Convertible Preferred Unit(s) pursuant to Section 

4.3.4, unless otherwise
agreed by the Partnership and a Limited Partner, the first anniversary of the
date such Class B Common Unit is so acquired.

     

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

     

    “Closing Price” means on any
date the last sale price for such Common Shares, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices, regular way, for such Common Shares, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the NYSE Amex or, if such Common Shares are not
listed or admitted to trading on the NYSE Amex, as reported on the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which such Common Shares are
listed or admitted to trading or, if such Common Shares are not listed or
admitted to trading on any national securities exchange, the last quoted price,
or the principal automated quotation system that may then be in use or, if such
Common Shares are not quoted by any such organization, the average of the
closing bid and asked prices as furnished by a professional market maker making
a market in such Common Shares selected by the Board of Directors of the General
Partner or, in the event that no trading price is available for such Common
Shares, the fair market value of the Common Shares as determined in good faith
by the Board of Directors of the General Partner.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

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

     

    “Common Shares” means the
shares of the General Partner’s common stock, $.0001 par value per
share.  Where relevant in this Agreement, “Common Shares” includes
shares of the General Partner’s common stock, $.0001 par value per share, issued
upon conversion of Preferred Shares or Junior Shares, but excludes the General
Partner’s Senior Common Stock, $.0001 par value per share.

     

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

     

    “Common Unit” means a
fractional portion of the Partnership Interests of all Partners issued pursuant
to this Agreement, including Class A Common Units, Class B Common Units and
Class C Common Units, but not including any Class A Convertible Preferred Unit,
Preferred Unit, Junior Unit or any other Partnership Unit specified in a
Partnership Unit Designation or this Agreement as being other than a Common
Unit; provided,
however,
that the General Partner Interest and the Limited Partner Interests shall have
the differences in rights and privileges as specified in this
Agreement.  For the avoidance of doubt, Class A Common Units, Class B
Common Units and Class C Common Units shall be treated together as a single
class with respect to distributions, allocations and liquidating distributions,
and shall differ only with respect to rights of redemption or conversion
hereunder.  The ownership of Common Units may be (but need not be, in
the sole and absolute discretion of the General Partner) evidenced by a
certificate for Common Units in such form as the General Partner may
designate.

     

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

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (i) 
the General Partner, when and as authorized by a majority of its Independent
Directors, (a) declares or pays a dividend on its outstanding Common Shares
in Common Shares or makes a distribution to all holders of its outstanding
Common Shares in Common Shares, (b) splits or subdivides its outstanding
Common Shares or (c) effects a reverse stock split or otherwise combines
its outstanding Common Shares into a smaller number of Common Shares, then the
Common Unit Redemption Factor shall be adjusted by multiplying the Common Unit
Redemption Factor previously in effect by a fraction (A) the numerator of
which shall be the number of Common Shares issued and outstanding on the record
date for such dividend, distribution, split, subdivision, reverse split or
combination (assuming for such purposes that such dividend, distribution, split,
subdivision, reverse split or combination has occurred as of such time) and
(B) the denominator of which shall be the actual number of Common Shares
(determined without the above assumption) issued and outstanding on the record
date for such dividend, distribution, split, subdivision, reverse split or
combination;

     

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

     

    (iii) 
the General Partner, when and as authorized by a majority of its Independent
Directors, shall, by dividend or otherwise, distribute to all holders of its
Common Shares evidences of its indebtedness or assets (including securities, but
excluding any dividend or distribution referred to in
subsection (i) above), which evidences of indebtedness or assets
relate to assets not received by the General Partner pursuant to a pro rata
distribution by the Partnership, then the Common Unit Redemption Factor shall be
adjusted to equal the amount determined by multiplying the Common Unit
Redemption Factor in effect immediately prior to the close of business on the
date fixed for determination of shareholders entitled to receive such
distribution by a fraction (a) the numerator of which shall be such Value
of a Common Share on the date fixed for such determination and (b) the
denominator of which shall be the amount of the numerator less the then-fair
market value (as determined by the General Partner, whose determination shall be
conclusive) of the portion of the evidences of indebtedness or assets so
distributed applicable to one Common Share; and

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

     

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

     

    “Conversion Time” has the
meaning set forth in Section 

4.3.7.

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Effective Time” means March
19, 2008.

     

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

     

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

     

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

     

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

     

    “General Partner” means Pacific
Office Properties Trust, Inc., a Maryland corporation, and its successors
and assigns, as the general partner of the Partnership in its capacity as
general partner of the Partnership.

     

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

     

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

     

    (a)           the
initial Gross Asset Value of any asset contributed by a Partner to the
Partnership shall be the gross fair market value of such asset, as reasonably
determined by the General Partner or as otherwise agreed to by the General
Partner and the contributing Partner;

     

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

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

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

     

    (d)           the
Gross Asset Values of Partnership assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code
Section 734(b) or Code Section 743(b), but only to the extent that
such adjustments are taken into account in determining Capital Accounts pursuant
to Regulations Section 1.704-1(b)(2)(iv)(m) and Section 6.3.2(vii); provided,
however,
that Gross Asset Values shall not be adjusted pursuant to this paragraph to the
extent the General Partner reasonably determines that an adjustment pursuant to
clause (b) above is necessary or appropriate in connection with a transaction
that would otherwise result in an adjustment pursuant to this
paragraph.

     

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

     

    “Holder” means any Partner, and
any Assignee which is treated as a partner in the Partnership for federal income
tax purposes.

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

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

     

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

     

    (b) 
Any expenditure of the Partnership described in Code
Section 705(a)(2)(b) or treated as a Code
Section 705(a)(2)(b) expenditure under Code Section 704(b), and not
otherwise taken into account in computing Income (or Loss) shall be subtracted
from (or added to, as the case may be) such taxable income (or
loss);

     

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

     

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

     

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

6.3 hereof;
and

     

    (f) Notwithstanding
any other provision of this definition of “Income” or “Loss,” any item that is
specially allocated pursuant to Section 

6.3 hereof shall not be
taken into account in computing Income or Loss.

     

    “Indemnitee” means (i) any
Person made a party to a proceeding by reason of its status as (a) the
General Partner, or (b) a director of the General Partner or an officer or
employee of the Partnership or the General Partner and (ii) such other
Persons (including Affiliates of the General Partner or the Partnership) as the
General Partner may designate from time to time (whether before or after the
event giving rise to potential liability), in its sole and absolute
discretion.

     

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

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “IRS” means the Internal
Revenue Service.

     

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

     

    “Junior Unit” means a
fractional portion of the Partnership Interests that the General Partner
hereafter authorizes pursuant to this Agreement that has distribution rights, or
rights upon liquidation, winding up and dissolution, that are inferior or junior
to the Common Units.

     

    “Limited Partner” means any
Person reflected as a limited partner on the books and records of the
Partnership, including any Substituted Limited Partner or Additional Limited
Partner, in such Person’s capacity as a limited partner in the
Partnership.

     

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

     

    “Liquidating Event” has the
meaning set forth in Section

13.1.

     

    “Liquidator” has the meaning
set forth in Section 

13.2.1.

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    “Net Equity Value” shall mean,
for any Contributed Interest, the product of (a) the percentage ownership
represented by such Contributed Interest, multiplied by (b) the amount equal to
the difference between (i) the Gross Asset Value of the Contributed Property,
minus (ii) the amount, including accrued and unpaid interest, of any unpaid
mortgage debt secured by such Contributed Property (whether by lien encumbering
fee simple title, a leasehold estate or an ownership interest in a
condominium).

     

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

     

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

     

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

4.3.7.

     

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

     

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

4.3.3.

     

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

     

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

     

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

4.3.1.

     

    “Partially Adjusted Capital
Account” means, with respect to any Partner as of the close of business
on an Adjustment Date, the Capital Account of such Partner as of the beginning
of the applicable accounting period ending on such Adjustment Date, after giving
effect to all allocations of items of income, gain, loss or deduction not
included in the definition of “Profits” or “Losses” and all Capital
Contributions and distributions during such period but before giving effect to
any allocations of Profits and Losses for such period pursuant to Section 

6.2.1, increased by (i)
such Partner’s share of “partnership minimum gain” (as determined pursuant to
Regulations Section 1.704-2(g)) as of the end of such period and (ii) such
Partner’s share of “partner nonrecourse debt minimum gain” (as determined
pursuant to Regulations Section 1.704-2(i)) as of the end of such
period.

     

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

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    “Partnership Interest” means an
ownership interest in the Partnership held by either a Limited Partner or the
General Partner and includes any and all benefits to which the holder of such a
Partnership Interest may be entitled as provided in this Agreement, together
with all obligations of such Person to comply with the terms and provisions of
this Agreement.  A Partnership Interest may be expressed as a number
of Common Units, Class A Convertible Preferred Units, Preferred Units, Junior
Units or other Partnership Units.  The Partnership Interests held by
each Partner are set forth on Exhibit A hereto, as the same
may be amended from time to time in accordance with this Agreement.

     

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

     

    “Partnership Record Date” means
a record date established by the General Partner for a distribution pursuant to
Section 

5.1 hereof, which record
date shall generally be the same as the record date established by the General
Partner for a distribution to its shareholders of some or all of its share of
such distribution.

     

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

     

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

     

    “Percentage Interest” means, as to each
Partner (including the General Partner), its interest, if any, in the
Partnership as
determined by dividing the number of Partnership Units then-held by such Partner
by the total number of Partnership Units outstanding as of such
time.

     

    
      
        
        

      

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

     

    “POP Venture” means POP
Venture, LLC, a Delaware limited liability company.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Redemption Cash Amount” has
the meaning set forth in Section

8.5.2.

     

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

     

    
      
        
        

      

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

     

    “Regulatory Allocations” has
the meaning set forth in Section 

6.3.1(viii).

     

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

     

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

     

    “REIT Expenses” means
(i) costs and expenses relating to the continuity of existence of the
General Partner and any Person (other than the Partnership) in which the General
Partner owns an equity interest, to the extent not prohibited by Section 

7.4 (which Persons
shall, for purposes of this definition, be included within the definition of
“General Partner”), including taxes, fees and assessments associated therewith
(other than federal, state or local income taxes imposed upon the General
Partner as a result of the General Partner’s failure to distribute to its
shareholders an amount equal to its taxable income), any and all costs, expenses
or fees payable to any trustee or director of the General Partner,
(ii) costs and expenses relating to any offer or registration of securities
by the General Partner (the proceeds of which will be contributed or advanced to
the Partnership) and all statements, reports, fees and expenses incidental
thereto, including underwriting discounts and selling commissions applicable to
any such offer of securities, (iii) costs and expenses associated with the
preparation and filing of any periodic reports by the General Partner under
federal, state or local laws or regulations, including filings with the SEC,
(iv) costs and expenses associated with compliance by the General Partner
with laws, rules and regulations promulgated by any regulatory body,
including the SEC, and (v) all other operating or administrative costs of
the General Partner incurred in the ordinary course of its business; provided, however,
that any of the foregoing expenses that are determined by the General Partner to
be expenses relating to the ownership and operation of, or for the benefit of,
the Partnership shall be treated as reimbursable expenses under Section 

7.3.2 hereof rather than
as “REIT Expenses.”

     

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

     

    “REIT Payment” has the meaning
set forth in Section 

15.12.

     

    
      
        
        

      

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

     

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

     

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

4.6.2.

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Specified Redemption Date”
means the tenth (10th) Business Day after the receipt by the General Partner of
a Notice of Redemption; provided, however,
that a Specified Redemption Date, as well as the closing of a Redemption or an
acquisition of Tendered Units by a REIT Partner pursuant to Section 8.5.6 hereof on
any Specified Redemption Date, may be deferred, in the General Partner’s sole
and absolute discretion, for such time (but in any event not more than one
hundred fifty (150) days in the aggregate) as may reasonably be required to
effect, as applicable, (i) compliance with the Securities Act or other laws
(including, but not limited to, (a) state “blue sky” or other securities
laws and (b) the expiration or termination of the applicable waiting
period, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended), or (ii) satisfaction or waiver of other commercially
reasonable and customary closing conditions and requirements for a transaction
of such nature.

     

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

     

    
      
        
        

      

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

     

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

11.4
hereof.

     

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

     

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

     

    “Tax Items” has the meaning set
forth in Section 

6.4.1.

     

    “Tenant List” has the meaning
set forth in Section 

3.4.1.

     

    “Tendered Units” has the
meaning set forth in Section

8.5.

     

    “Tendering Party” has the
meaning set forth in Section

8.5.

     

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

     

    “Transfer,” when used with respect to
a Partnership Unit, or all or any portion of a Partnership Interest, means any
sale, assignment, bequest, conveyance, devise, gift (outright or in trust),
pledge, encumbrance, hypothecation, mortgage, exchange, transfer or other
disposition or act of alienation, whether voluntary or involuntary or by
operation of law; provided, however,
that except as otherwise provided in Section 

11, when the term is
used in Section 

11 hereof, “Transfer”
does not include (a) any Redemption of Partnership Units by the
Partnership, or acquisition of Tendered Units by a REIT Partner, pursuant to
Section 

8.5 hereof or
(b) any redemption of Partnership Units pursuant to any Partnership Unit
Designation.  The terms “Transferred” and “Transferring” have
correlative meanings.

     

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

     

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

     

    
      
        
        

      

      
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    “Value” means, on any date of
determination with respect to a Common Share, the average of the daily Market
Prices for ten (10) consecutive trading days immediately preceding the date
of determination except that, as provided in Section 

4.6.1(d) hereof, the
Market Price for the trading day immediately preceding the date of exercise of a
stock option (or other similar incentive exercisable by the recipient) under any
Stock Incentive Plan shall be substituted for such average of daily Market
Prices for purposes of Section 

4.6
hereof.  For purposes of Section 

8.5, the “date of determination” shall
be the date of receipt by the General Partner of a Notice of Redemption or, if
such date is not a Business Day, the immediately preceding Business
Day.  In the event that the Common Shares Amount includes Rights (as
defined in the definition of “Common Shares Amount”) that a holder of Common
Shares would be entitled to receive, then the Value of such Rights shall be
determined by the General Partner acting in good faith.  “Value”
means, on any date of determination with respect to a Common Unit, the Value of
a Common Share multiplied by the Common Unit Redemption Factor.

     

    2. ORGANIZATIONAL
MATTERS.

     

    2.1 
 Organization.  The
Partners hereby continue the Partnership as a limited partnership organized
pursuant to the provisions of the Act and upon the terms and subject to the
conditions set forth in this Agreement, and the General Partner hereby continues
as the general partner of the Partnership.  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 “Pacific Office
Properties, L.P.” The Partnership’s business may be conducted under any other
name or names deemed advisable by the General Partner, including the name of the
General Partner or any Affiliate thereof.  The General Partner in its
sole and absolute discretion may change the name of the Partnership at any time
and from time to time and shall notify the Partners of such change in the next
regular communication to the Partners
 .

     

    2.3 Registered
Office and Agent; Principal Office.  The address of
the registered office of the Partnership in the State of Delaware is located at
2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware
19808, and the registered agent for service of process on the Partnership in the
State of Delaware at such registered office is Corporation Service
Company.  The principal office of the Partnership is located at 841
Bishop Street, Suite 1700, Honolulu, Hawaii 96813, or such other place as the
General Partner may from time to time designate by notice to the Limited
Partners.  The Partnership may maintain offices at such other place or
places within or outside the State of Delaware as the General Partner deems
advisable.

     

    2.4 Power of
Attorney.

     

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

     

    
      
        
        

      

      
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              (a)  

            	
              execute,
      swear to, acknowledge, deliver, file and record in the appropriate public
      offices (a) all certificates, documents and other instruments
      (including this Agreement and the Certificate and all amendments,
      supplements or restatements thereof) that the General Partner or the
      Liquidator deems appropriate or necessary to form, qualify or continue the
      existence or qualification of the Partnership as a limited partnership (or
      a partnership in which the Limited Partners have limited liability) in the
      State of Delaware and in all other jurisdictions in which the Partnership
      may or plans to conduct business or own property; (b) all instruments
      that the General Partner deems appropriate or necessary to reflect any
      amendment, change, modification or restatement of this Agreement in
      accordance with its terms; (c) all conveyances and other instruments
      or documents that the General Partner or the Liquidator deems appropriate
      or necessary to reflect the dissolution and liquidation of the Partnership
      pursuant to the terms of this Agreement, including a certificate of
      cancellation; (d) all instruments relating to the admission,
      withdrawal, removal or substitution of any Partner pursuant to, or other
      events described in, Section 

      11, Section 

      12 or Section 

      13 hereof or the
      Capital Contribution of any Partner; and (e) all certificates,
      documents and other instruments relating to the determination of the
      rights, preferences and privileges relating to Partnership Interests;
      and

            

    

     

    
      	
              (b)  

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

            

    

     

    Nothing
contained herein shall be construed as authorizing the General Partner or any
Liquidator to amend this Agreement except in accordance with Section 

14 hereof or as may be
otherwise expressly provided for in this Agreement.

     

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

     

    
      
        
        

      

      
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    2.5 Term.  Pursuant to
Section 17-201 of the Act, the term of the Partnership commenced on
January 28, 2008 and shall continue until the Partnership is cancelled pursuant
to the provisions of Section 

13 hereof or as
otherwise provided by law.  The existence of the Partnership as a
separate legal entity shall continue until cancellation of the Certificate of
Limited Partnership as provided by the Act.

     

    3. PURPOSE.

     

    3.1 Purpose
and Business.  The purpose and nature of the Partnership is
(i) to conduct any business that may be lawfully conducted by a limited
partnership organized pursuant to the Act; provided, however,
that such business shall be limited to and conducted in such a manner as to
permit the General Partner at all times to be classified as a REIT and avoid the
imposition of federal income and excise taxes on the General Partner, unless the
General Partner ceases to qualify, or is not qualified, as a REIT for any reason
or reasons; (ii) to enter into any partnership, joint venture, limited
liability company or other similar arrangement to engage in any of the foregoing
or the ownership of interests in any entity engaged, directly or indirectly, in
any of the foregoing; and (iii) to do anything necessary or incidental to
the foregoing.  Nothing in this Section 

3.1 shall prevent the
General Partner from terminating its status as a REIT under the Code at any time
(following which the proviso contained in clause of (i) above shall no longer be
applicable).

     

    The
Partnership, by and through the General Partner, on behalf to the Partnership,
and without any further act or vote or approval of any other Person,
notwithstanding any other provision of this Agreement, the Act or applicable
law, rule or regulation, may, at any time and from time to time, enter into and
perform under any and all documents, agreements, contracts, commitments,
certificates or financing statements deemed by the General Partner to be
reasonably necessary or desirable in connection with the contributions and
related transactions contemplated by the Master Agreement, including, without
limitation, (i) each of the assignments of membership interests, assignments of
limited liability company agreements, reaffirmation agreements and modification
agreements described in Exhibit
C hereto, and (ii) all documents, agreements, certificates or financing
statements contemplated by or related to any or all of the documents described
in Exhibit
C.  The foregoing authorization shall not be deemed a
restriction on the powers of the Partnership or the General Partner to enter
into other agreements on behalf of the Partnership.

     

    3.2 Powers.  The Partnership
and the General Partner on behalf of the Partnership shall have full power and
authority to do any and all acts and things necessary, appropriate, proper,
advisable, incidental to or convenient for the furtherance and accomplishment of
the purposes and business described herein and for the protection and benefit of
the Partnership, including, directly or through its ownership interest in other
Persons, the power to (i) enter into, perform and carry out contracts of any
kind, (ii) borrow money and issue evidences of indebtedness, whether or not
secured by mortgage, deed of trust, pledge or other lien, (iii) acquire, own,
manage, improve and develop real 

     

     

    
      
        
        

      

      
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      property,
and (iv) lease, sell, transfer and dispose of real property; provided, however,
that the Partnership shall not take, or refrain from taking, any action which,
in the judgment of the General Partner, in its sole and absolute discretion,
(i) could adversely affect the ability of the General Partner to continue
to qualify as a REIT, (ii) could subject the General Partner to any
additional taxes under Section 857 or Section 4981 of the Code, (iii) could violate any law or
regulation of any governmental body or agency having jurisdiction over the
General Partner, its securities or the Partnership; or (iv) could violate in any
material respects any of the covenants, conditions or restrictions now or
hereafter placed upon or adopted by the General Partner pursuant to any of its
agreements or applicable laws and regulations.

    

     

    3.3 Partnership
Only for Partnership Purposes.  This Agreement
shall not be deemed to create a company, venture or partnership between or among
the Partners with respect to any activities whatsoever other than the activities
within the purposes of the Partnership as specified in Section 

3.1
hereof.  Except as otherwise provided in this Agreement, no Partner
shall have any authority to act for, bind, commit or assume any obligation or
responsibility on behalf of the Partnership, its properties or any other
Partner.  No Partner, in its capacity as a Partner under this
Agreement, shall be responsible or liable for any indebtedness or obligation of
another Partner, and the Partnership shall not be responsible or liable for any
indebtedness or obligation of any Partner, incurred either before or after the
execution and delivery of this Agreement by such Partner, except as to those
responsibilities, liabilities, indebtedness or obligations incurred pursuant to
and as limited by the provisions of this Agreement and the Act.

     

    3.4 Representations
and Warranties by the Parties.

     

    3.4.1 Each
Additional Limited Partner and Substituted Limited Partner that is an
individual, as a condition to becoming a Limited Partner, shall, by executing
this Agreement or a counterpart thereof, represent and warrant to the
Partnership and each other Partner that (i) the consummation of the
transactions contemplated by this Agreement to be performed by such Partner will
not result in a breach or violation of, or a default under, any material
agreement by which such Partner or any of such Partner’s property is bound, or
any statute, regulation, order or other law to which such Partner is subject,
(ii) subject to the last sentence of this Section 

3.4.1, such Partner is
neither a “foreign person” within the meaning of Code
Section 1445(f) nor a “foreign partner” within the meaning of Code
Section 1446(e), (iii) such Partner does not own, directly or
indirectly, (a) nine and eight tenths percent (9.8%) or more of the total
combined voting power of all classes of stock entitled to vote, or nine and
eight tenths percent (9.8%) or more of the total value of shares of all classes
of stock, of any corporation that is a tenant of any of (A)  the General
Partner or any Qualified REIT Subsidiary, (B) the Partnership or
(C) any partnership, venture or limited liability company of which the
General Partner or any Qualified REIT Subsidiary or the Partnership is a
member, as reflected on the then current tenant list to be maintained by the
General Partner (the “Tenant
List”) or (b) an interest of nine and eight tenths percent (9.8%) or
more in the assets or net profits of any tenant of any of (A) the General
Partner or any Qualified REIT Subsidiary, (B) the Partnership or
(C) any partnership, venture, or limited liability company of which the
General Partner or any Qualified REIT Subsidiary or the Partnership is a
member, as reflected on the Tenant List and (iv) this Agreement is binding
upon, and enforceable against, such Partner in accordance with its
terms.  Notwithstanding anything contained herein to the contrary, in
the event that the representation contained in the foregoing
clause (ii) would be inaccurate if given by a Partner, such Partner
(w) shall not be required to make and shall not be deemed to have made such
representation, if it delivers to the General Partner in connection with or
prior to its execution of this Agreement written notice that it may not
truthfully make such representation, (x) hereby agrees that it is subject
to the withholding provisions of the Code applicable to a “foreign person” or
“foreign partner,” as applicable, and hereby authorizes the General Partner to
withhold any and all amounts it is required to withhold pursuant to the Code
with respect to such “foreign person” or “foreign partner,” as applicable, and
(y) hereby agrees to cooperate fully with the General Partner with respect
to such withholdings, including by effecting the timely completion and delivery
to the General Partner of all forms reasonably determined to be required by the
General Partner in connection therewith.

     

    
      
        
        

      

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

3.4.2, such Partner
is neither a “foreign person” within the meaning of Code
Section 1445(f) nor a “foreign partner” within the meaning of Code
Section 1446(e), (iv) such Partner does not own, directly or
indirectly, (a) except as otherwise disclosed by the Partner in writing to
the Partnership, nine and eight tenths percent (9.8%) or more of the total
combined voting power of all classes of stock entitled to vote, or nine and
eight tenths percent (9.8%) or more of the total value of shares of all classes
of stock, of any corporation that is a tenant of any of (A) the General
Partner or any Qualified REIT Subsidiary, (B) the Partnership or
(C) any partnership, venture or limited liability company of which the
General Partner, any Qualified REIT Subsidiary or the Partnership is a member,
as reflected on the Tenant List or (b) except as otherwise identified by
the Partner in writing to the Partnership, an interest of nine and eight tenths
percent (9.8%) or more in the assets or net profits of any tenant of any of
(A) the General Partner or any Qualified REIT Subsidiary, (B) the
Partnership or (C) any partnership, venture or limited liability company
for which the General Partner, any Qualified REIT Subsidiary or the Partnership
is a member, as reflected on the Tenant List and (v) this Agreement is
binding upon, and enforceable against, such Partner in accordance with its
terms.  Notwithstanding anything contained herein to the contrary, in
the event that the representation contained in the foregoing
clause (iii) would be inaccurate if given by a Partner, such Partner
(w) shall not be required to make and shall not be deemed to have made such
representation, if it delivers to the General Partner in connection with or
prior to its execution of this Agreement written notice that it may not
truthfully make such representation, (x) hereby agrees that it is subject
to the withholding provisions of the Code applicable to a “foreign person” or
“foreign partner,” as applicable, and hereby authorizes the General Partner to
withhold any and all amounts it is required to withhold pursuant to the Code
with respect to such “foreign person” or “foreign partner,” as applicable, and
(y) hereby agrees to cooperate fully with the General Partner with respect
to such withholdings, including by effecting the timely completion and delivery
to the General Partner of all forms reasonably determined to be required by the
General Partner in connection therewith.

     

    
      
        
        

      

      
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    3.4.3 Each
Partner (including each Additional Limited Partner or Substituted Limited
Partner as a condition to becoming a Limited Partner) represents, warrants and
agrees that it has acquired its interest in the Partnership for its own account
for investment purposes only and not for the purpose of, or with a view toward,
the resale or distribution of all or any part thereof, and not with a view
toward selling or otherwise distributing such interest or any part thereof at
any particular time or under any predetermined circumstances.  Each
Partner further represents and warrants that it is a sophisticated investor,
able and accustomed to handling sophisticated financial matters for itself,
particularly real estate investments, and that it has a sufficiently high net
worth that it does not anticipate a need for the funds that it has invested in
the Partnership in what it understands to be a highly speculative and illiquid
investment.

     

    3.4.4 The
representations and warranties contained in Sections 

3.4.1, 
3.4.2 and

3.4.3 hereof shall survive the
execution and delivery of this Agreement by each Partner (and, in the case of an
Additional Limited Partner or a Substituted Limited Partner, the admission of
such Additional Limited Partner or Substituted Limited Partner as a Limited
Partner in the Partnership) and the dissolution, liquidation and termination of
the Partnership.

     

    3.4.5 Each
Partner (including each Additional Limited Partner or Substituted Limited
Partner as a condition to becoming a Limited Partner) hereby acknowledges that
no representations as to potential profit, cash flows, funds from operations or
yield, if any, in respect of the Partnership or the General Partner have been
made by the Partnership, any Partner or any employee or representative or
Affiliate of any Partner to such Partner, and that projections and any other
information, including financial and descriptive information and documentation,
that may have been in any manner submitted to such Partner shall not constitute
any representation or warranty of any kind or nature, express or
implied.

     

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

     

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

6 below, each Partner’s
Capital Account shall be equal to:

     

    
      
        
        

      

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

     

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

6; less

     

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

6; and less

     

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

     

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

     

    4.3 Class A
Convertible Preferred Units.

     

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

     

    4.3.2 Cumulative
Distributions.  Subject to the rights of any applicable Senior
Units, each Class A Convertible Preferred Unit shall be entitled to receive,
when and as authorized by a majority of the Independent Directors, distributions
at an annual rate of 2.0% of the Class A Convertible Preferred Unit Liquidation
Preference Amount from the date of issuance of such Class A Convertible
Preferred Unit (adjusted for any stock split, stock dividend or distribution,
reclassification, reorganization, consolidation or similar change or event)
(collectively, the “Class A
Preferred Distributions”).  Such distributions shall accumulate
(accrue) from day to day, and shall be paid in cash in arrears on the last day
of each March, June, September and December, or if any such day is not a
Business Day, the immediately preceding Business Day, beginning September 28,
2008.  All Class A Preferred Distributions under this Section

4.3.2 shall be cumulative so
that if such Distributions in respect of any distribution period shall not have
been paid on or declared and set apart for all Class A Convertible Preferred
Units at the time outstanding, the deficiency shall be fully paid on or declared
and set apart for such Class A Convertible Preferred Units after the payment of
any amount necessary to enable the General Partner to pay REIT Expenses, but
before the Partnership makes any other distribution (as hereinafter defined) to
the holders of any other Partnership Units (other than Senior Units and Pari
Passu Units (provided Class A Preferred Distributions shall be paid
simultaneously with distributions to Pari Passu Units pro rata in proportion to
the ratio that the aggregate accumulated and unpaid Class A Preferred
Distributions bears to the aggregate accumulated and unpaid distributions owing
to holders of the Pari Passu Units)).

     

    
      
        
        

      

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

     

    
      
        
        

      

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

     

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

     

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

     

    4.3.7 Notice of Conversion
(Optional).  In order for a holder of Class A Convertible
Preferred Units to voluntarily convert shares of Class A Convertible Preferred
Units into Class B Common Units, such holder shall deliver to the Partnership’s
Transfer Agent written notice (“Notice of Conversion”) that
such holder elects to convert all or any number of the Class A Convertible
Preferred Units held by such holder and, if applicable, any event on which such
conversion is contingent.  A Notice of Conversion shall state such
holder’s name or the names of the nominees in which such holder wishes the Class
B Common Units to be issued.  The close of business on the date of
receipt by the Transfer Agent of such Notice of Conversion shall be the time of
conversion (the “Conversion
Time”), and the Class B Common Units issuable upon conversion of the
Class A Convertible Preferred Units indicated in the Notice of Conversion shall
be deemed to be outstanding of record as of such date.  As soon as
reasonably practicable following the Conversion Time and in any event within
three business days following the Conversion Time, the holder of Class A
Convertible Preferred Units shall surrender the certificate or certificates, if
any, for such Class A Convertible Preferred Units (or, if such registered holder
alleges that a certificate has been lost, stolen or destroyed, a lost
certificate affidavit and agreement reasonably acceptable to the Partnership to
indemnify the Partnership against any claim that may be made against the
Partnership on account of the alleged loss, theft or destruction of such
certificate), at the office of the Transfer Agent.  If required by the
Partnership, certificates surrendered for conversion shall be endorsed or

     

    
      
        
        

      

      
        29

        
          

        

      

         accompanied by a written
instrument or written instruments of transfer, in form satisfactory to the
Partnership, duly executed by the registered holder or such holder’s attorney
duly authorized in writing.  If the Class B Common Units are to be
certificated, the Partnership shall, as soon as practicable after the Conversion
Time, and in no event later than the third business day following the Conversion
Time, issue and deliver or cause its Transfer Agent to issue and deliver to the
holder of Class A Convertible Preferred Units subject to a Notice of Conversion,
or to such holder’s nominees, a certificate or certificates for the number of
full Class B Common Units issuable upon such conversion in accordance with the
provisions hereof and, if applicable, a certificate for the number (if any) of
the Class A Convertible Preferred Units represented by a surrendered certificate
that were not converted into Class B Common Units, and cash as provided in Section

4.3.6 above in lieu of any
fraction of a Class B Common Unit otherwise issuable upon such conversion and
payment of any accumulated or declared but unpaid distributions on the Class A
Convertible Preferred Units converted.

    

     

    4.3.8 Notice of Conversion
(Mandatory).  In the event the Partnership exercises its right
under Section 
4.3.5 to require any holder of
Class A Convertible Preferred Units to convert each of his, her or its Class A
Convertible Preferred Units into Class B Common Units, then the Partnership may
provide by notice to such Limited Partner that the Partnership has elected to
exercise its rights under Section

4.3.5 and may treat such
Limited Partner as a party who has delivered a Notice of Conversion pursuant to
Section 

4.3.7 above. Such notice given by the
Partnership to a Limited Partner pursuant to this Section 

4.3.8 shall be treated
as if it were a Notice of Conversion delivered to the General Partner by such
Limited Partner.  For purposes of this Section 

4.3.8, other than with
respect to the delivery of the Notice of Conversion (which is dealt with in the
preceding two sentences), the provisions of Section 

4.3.7 shall apply,
mutatis mutandis, with the “Conversion Time” being the date that the Partnership
issues a Notice of Conversion.

     

    4.4 Issuances
of Additional Partnership Interests.

     

    4.4.1 General.  The General
Partner is hereby authorized to cause the Partnership to issue additional
Partnership Interests, in the form of Partnership Units, for any Partnership
purpose, at any time or from time to time, to the Partners (including the
General Partner) or to other Persons, and to admit such Persons as Additional
Limited Partners, for such consideration and on such terms and conditions as
shall be established by the General Partner in its sole and absolute discretion,
all without the approval of any Limited Partners.  Subject to other
limitations in this Agreement, but without limiting the foregoing, the General
Partner is expressly authorized to cause the Partnership to issue Partnership
Units (i) upon the conversion, redemption or exchange of any Debt,
Partnership Units or other securities issued by the Partnership, (ii) for
less than fair market value, so long as the General Partner concludes in good
faith that such issuance is in the best interests of the General Partner and the
Partnership, (iii) in connection with any merger of any other Person into
the Partnership or any Subsidiary of the Partnership if the applicable merger
agreement provides that Persons are to receive Partnership Units in exchange for
their interests in the Person merging into the Partnership or any Subsidiary of
the 

     

    
      
        
        

      

      
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      Partnership,
(iv) in connection with any acquisition of real property or other assets and (v)
that are Senior Units, Pari Passu Units or Junior Units.  Subject to
the Act, any additional Partnership Interests may be issued in one or more
classes, or one or more series of any of such classes, with such designations,
preferences and relative, participating, optional or other special rights,
powers and duties as shall be determined by the General Partner, in its sole and
absolute discretion without the approval of any Limited Partner, and set forth
in this Agreement or a written document thereafter attached to and made an
exhibit to this Agreement (each, a “Partnership Unit
Designation”).  Without limiting the generality of the
foregoing, the General Partner shall have authority to specify (a) the
allocations of items of Partnership income, gain, loss, deduction and credit to
each such class or series of Partnership Interests; (b) the right of each
such class or series of Partnership Interests to share in Partnership
distributions; (c) the rights of each such class or series of Partnership
Interests upon dissolution and liquidation of the Partnership; (d) the
voting rights, if any, of each such class or series of Partnership Interests;
and (e) the conversion, redemption or exchange rights applicable to each
such class or series of Partnership Interests.  The General Partner
shall amend Exhibit A
from time to time to the extent necessary to reflect accurately the issuance,
redemption or any other event having an effect on the ownership of Partnership
Units.  In accordance with this Section 4.4.1, Exhibit D is hereby attached
to and made part of this Agreement.

    

     

    4.4.2 Issuances to the General
Partner.  No additional
Partnership Units shall be issued to the General Partner unless (i) the
additional Partnership Units are issued to all Partners in proportion to their
respective Percentage Interests with respect to the class of Partnership Units
so issued, (ii) (a) the additional Partnership Units are
(x) Common Units issued in connection with an issuance of Common Shares, or
(y) Partnership Units (other than Common Units) issued in connection with
an issuance, conversion or exercise of Preferred Shares, Other Securities or
other interests in the General Partner (other than Common Shares), which
Preferred Shares, Other Securities or other interests have designations,
preferences and other rights, terms and provisions that are substantially the
same as the designations, preferences and other rights, terms and provisions of
the additional Partnership Units issued to the General Partner, and (b) the
General Partner contributes or otherwise causes to be transferred to the
Partnership the cash proceeds or other consideration received in connection with
the issuance of such Common Shares, Preferred Shares, Other Securities or other
interests in the General Partner, (iii) the additional Partnership Units
are issued upon the conversion, redemption or exchange of Debt, Partnership
Units or other securities issued by the Partnership, or (iv) the additional
Partnership Units are issued pursuant to Section

4.5.2 or Section

4.6.

     

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

     

    4.5 Additional
Funds and Capital Contributions.

     

    4.5.1 General.  The General
Partner may, at any time and from time to time, determine that the Partnership
requires additional funds (“Additional Funds”) for the
acquisition or development of additional Properties, for the redemption of
Partnership Units or for such other purposes as the General Partner may
determine in its sole and absolute discretion.  Additional Funds may
be obtained by the Partnership, at the election of the General Partner, in any
manner provided in, and in accordance with, the terms of this Section 

4.5 without the approval
of any Limited Partners.

     

    
      
        
        

      

      
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    4.5.2 Additional Capital
Contributions.  The General
Partner, on behalf of the Partnership, may obtain any Additional Funds by
accepting Capital Contributions from any Partners or other
Persons.  In connection with any such Capital Contribution (of cash or
property), the General Partner is hereby authorized to cause the Partnership
from time to time to issue additional Partnership Units (as set forth in Section 4.4 above) in
consideration therefor and the Percentage Interests of the General Partner and
the Limited Partners shall be adjusted appropriately to reflect the issuance of
such additional Partnership Units.

     

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

     

    4.5.4 General Partner
Loans.  The General
Partner may provide Additional Funds by causing the Partnership to incur Debt to
the General Partner; provided, however, that the Partnership shall
not incur any such Debt if (a) a breach, violation or default of such Debt would
be deemed to occur by virtue of the Transfer by any Limited Partner of any
Partnership Interest, or (b) such Debt is recourse to any Partner (unless the
Partner otherwise agrees in writing prior thereto).

     

    4.6 Stock
Incentive Plans.

     

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

     

    
      	
              (a)  

            	
              the
      General Partner shall, as soon as practicable after such exercise, make a
      Capital Contribution to the Partnership in an amount equal to the exercise
      price paid to the General Partner by such exercising party in connection
      with the exercise of such stock option (or other similar incentive
      exercisable by the recipient);

            

    

     

    
      	
              (b)  

            	
              on
      the date that the General Partner makes a capital contribution pursuant to
      Section 
4.6.1

      (a) hereof,
      the General Partner shall be deemed to have contributed to the Partnership
      as a Capital Contribution, in consideration of an additional General
      Partner Interest (expressed in and as additional Common Units), an amount
      equal to the Value of a Common Share as of the date of exercise multiplied
      by the number of Common Shares then being issued in connection with the
      exercise of such stock option (or other similar incentive exercisable by
      the recipient); and

            

    

     

     

    
      
        
        

      

      
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              (c)  

            	
              An
      equitable Percentage Interest adjustment shall be made in which the
      General Partner shall be treated as having made a cash contribution equal
      to the amount described in Section 

      4.6.1

      (b) hereof.

            

    

     

    
      	
              (d)  

            	
              For
      purposes of this Section 

      4.6, in
      determining the Value of a Common Share, only the trading date immediately
      preceding the exercise of the relevant stock option (or other similar
      incentive exercisable by the recipient) under the Stock Incentive Plan
      shall be considered.

            

    

     

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

     

    The
Restricted Common Units outstanding on the date of this Agreement and reflected
on Exhibit A hereto were
issued in connection with the grant of an aggregate of 52,630 restricted stock
units by the General Partner to certain directors of the General Partner
pursuant to the General Partner’s 2008 Directors’ Stock Plan.  Such
Restricted Common Units may not be sold, assigned, transferred, pledged,
hypothecated, mortgaged, encumbered or disposed of by the General Partner, and
the General Partner shall have no voting rights or other rights or obligations
of a holder of Partnership Interests with respect to such Restricted Common
Units.  The General Partner shall be entitled to receive distributions
on such Restricted Common Units in an amount equal to, and subject to the same
restrictions as, any cash dividends and the value of any property distributions
paid or payable by the General Partner with respect to the corresponding
restricted stock units.  Upon the vesting of any director’s restricted
stock units in accordance with the terms of such director’s award, such number
of Restricted Common Units equal to the number of vested restricted stock units
granted to such director pursuant to such award shall convert into, and the
General Partner Interest will be accordingly increased by, such number of Common
Units equal to the number of Common Shares, if any, issued to such director upon
such vesting.  Upon the forfeiture of any director’s restricted stock
units in accordance with the terms of such director’s award, an equivalent
number of Restricted Common Units shall be forfeited by the General
Partner.

     

    
      
        
        

      

      
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    4.6.3 Future Stock Incentive
Plans.  Nothing in this
Agreement shall be construed or applied to preclude or restrain the General
Partner from adopting, modifying or terminating stock incentive plans for the
benefit of employees, directors or other business associates of the General
Partner, the Partnership or any of their Affiliates.  In the event
that any such plan is adopted, modified or terminated by the General Partner,
amendments to this Section 

4.6 may become necessary
or advisable and that any approval or consent of the Limited Partners required
pursuant to the terms of this Agreement in order to effect any such amendments
requested by the General Partner shall not be unreasonably withheld or
delayed.

     

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

     

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

     

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

     

    5. DISTRIBUTIONS.

     

    5.1 Requirement
and Characterization of Distributions.

     

    5.1.1 General.  Without
limitation of any rights of accumulation of any Partnership Unit, the General
Partner shall have the exclusive right and authority to declare and cause the
Partnership to make distributions as and when the General Partner deems
appropriate or desirable in its sole discretion.  Notwithstanding
anything to the contrary contained herein, in no event may a Partner receive a
distribution with respect to a Partnership Unit for a quarter or shorter period
if such Partner is entitled to receive a distribution for such quarter or
shorter period with respect to a Share for which such Partnership Unit has been
redeemed or exchanged.  Except as otherwise expressly provided for
herein (including in Section

4.3.2), no Partnership Unit
shall be entitled to a distribution in preference to any other Partnership
Unit.  For so long as the General Partner elects to qualify as a REIT,
the General Partner shall make such reasonable efforts, as determined by it in
its sole and absolute discretion and consistent with the qualification of the
General Partner as a REIT, to make distributions to the Partners such that the
General Partner will receive amounts sufficient to enable the General Partner to
pay shareholder dividends that will (1) satisfy the REIT Requirements and
(2) avoid any federal income or excise tax liability for the General
Partner.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

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

     

    
      	
               
      

            	
              (i)

            	
              first,
      to Holders of any Partnership Interests that are entitled to any
      preference in distribution (including Class A Convertible Preferred
      Units), and within each such class of Partnership Interests, pro rata
      among the Holders thereof in proportion to each Holder’s respective
      ownership interest of such class of Partnership Interest), in the
      respective order and amount of such preferences;
  and

            

    

     

    
      	
               
      

            	
              (ii) 

            	
              second,
      to Holders of any Partnership Interests that are not entitled to any
      preference in distribution (including Common Units and Junior Units), in
      accordance with the rights of such class of Partnership Interests (pro
      rata to each such Holder in accordance with the ratio of (a) the amount to
      be distributed to such Holder pursuant to this Section to (b) the
      aggregate amount to be distributed to all such Holders pursuant to this
      Section).

            

    

     

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

5,

6
and 
10 hereof.

     

    5.3 Amounts
Withheld.  All amounts
withheld pursuant to the Code or any provisions of any state or local tax law
and Section 

10.4 hereof with respect
to any allocation, payment or distribution to any Unitholder shall be treated as
amounts paid or distributed to such Unitholder pursuant to Section 

5.1 hereof for all
purposes under this Agreement.

     

    5.4 Distributions
Upon Liquidation.  Notwithstanding
the other provisions of this Section 

5, net proceeds from a
Terminating Capital Transaction, and any other cash received or reductions in
reserves made after commencement of the liquidation of the Partnership, shall be
distributed to the Unitholders in accordance with Section 

13.2
hereof.

     

    5.5 Distributions
to Reflect Issuance of Additional Partnership Units.  Subject to Section 

14.2.4, in the event
that the Partnership issues additional Partnership Units pursuant to the
provisions of Section 

4 hereof, the General
Partner is hereby authorized to make such revisions to this Section 

5 as it determines are
necessary or desirable to reflect the issuance of such additional Partnership
Units consistent with their Partnership Unit Designation, including making
preferential distributions to certain classes of Partnership Units.

     

    
      
        
        

      

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

     

    6. ALLOCATIONS.

     

    6.1 Timing
and Amount of Allocations of Income and Loss.  Income and Loss
of the Partnership shall be determined and allocated with respect to each Fiscal
Year of the Partnership as of the end of each such year.  Except as
otherwise provided in this Section 

6, an allocation to a
Unitholder of a share of Income or Loss shall be treated as an allocation of the
same share of each item of income, gain, loss or deduction that is taken into
account in computing Income or Loss.

     

    6.2 General
Allocations.

     

    6.2.1 Allocation
of Profits and Losses for Capital Account Purposes.  After
giving effect to the special allocations set forth in Sections

6.3 and

6.4,
Profits and Losses for each Fiscal Year shall be allocated among the Partners so
as to reduce, proportionately, in the case of any Profits, the difference
between their respective Target Capital Accounts and Partially Adjusted Capital
Accounts for such Fiscal Year and, in the case of Losses, the difference between
their respective Partially Adjusted Capital Accounts and Target Capital Accounts
for such Fiscal Year.  No portion of Profits or Losses for any Fiscal
Year shall be allocated to a Partner, in the case of Profits, whose Partially
Adjusted Capital Account is greater than its Target Capital Account or, in the
case of Losses, whose Target Capital Account is greater than or equal to its
Partially Adjusted Capital Account for such Fiscal Year.

     

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

     

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

6:

     

    6.3.1 Regulatory
Allocations.

     

    
      
        
        

      

      
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    (i) Minimum Gain
Chargeback.  Except as otherwise provided in Regulations
Section 1.704-2(f), notwithstanding any other provision of this Section 

6, if there is a net
decrease in Partnership Minimum Gain during any Fiscal Year, each Holder of
Partnership Units shall be specially allocated items of Partnership income and
gain for such year (and, if necessary, subsequent years) in an amount equal to
such Holder’s share of the net decrease in Partnership Minimum Gain, as
determined under Regulations Section 1.704-2(g).  Allocations
pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Holder pursuant thereto.  The
items to be allocated shall be determined in accordance with Regulations
Sections 1.704-2(f)(6) and 1.704-2(j)(2).  This Section 

6.3.1

(i) is intended to
qualify as a “minimum gain chargeback” within the meaning of Regulations
Section 1.704-2(f) and shall be interpreted consistently
therewith.

     

    (ii) Partner Nonrecourse Debt Minimum
Gain Chargeback.  Except as otherwise provided in Regulations
Section 1.704-2(i)(4) or in Section 

6.3.1

(i) hereof, if
there is a net decrease in Partner Nonrecourse Debt Minimum Gain attributable to
a Partner Nonrecourse Debt during any Fiscal Year, each Holder of Partnership
Units who has a share of the Partner Nonrecourse Debt Minimum Gain attributable
to such Partner Nonrecourse Debt, determined in accordance with Regulations
Section 1.704-2(i)(5), shall be specially allocated items of Partnership
income and gain for such year (and, if necessary, subsequent years) in an amount
equal to such Holder’s share of the net decrease in Partner Nonrecourse Debt
Minimum Gain attributable to such Partner Nonrecourse Debt, determined in
accordance with Regulations Section 1.704-2(i)(4).  Allocations
pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each General Partner, Limited Partner and
other Holder pursuant thereto.  The items to be so allocated shall be
determined in accordance with Regulations Sections 1.704-2(i)(4) and
1.704-2(j)(2).  This Section 

6.3.1

(ii) is intended to
qualify as a “chargeback of partner nonrecourse debt minimum gain” within the
meaning of Regulations Section 1.704-2(i) and shall be interpreted
consistently therewith.

     

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

     

    (iv) Qualified Income
Offset.  If any Holder of Partnership Units unexpectedly
receives an adjustment, allocation or distribution described in Regulations
Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Partnership
income and gain shall be allocated, in accordance with Regulations
Section 1.704-1(b)(2)(ii)(d), to such Holder in an amount and manner
sufficient to eliminate, to the extent required by such Regulations, the
Adjusted Capital Account Deficit of such Holder as quickly as possible, provided
that an allocation pursuant to this Section 

6.3.1

(iv) shall be made
if and only to the extent that such Holder would have an Adjusted Capital
Account Deficit after all other allocations provided in this Section 

6 have been tentatively
made as if this Section 

6.3.1

(iv) were not in
the Agreement.  It is intended that this Section 

6.3.1

(iv) qualify and be
construed as a “qualified income offset” within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

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

6.3.1

(v) shall be made
if and only to the extent that such Holder would have a deficit Capital Account
in excess of such sum after all other allocations provided in this Section 

6 have been tentatively
made as if this Section 

6.3.1

(v) were not in the
Agreement.

     

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

6.3.1

(vi).

     

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

     

    (viii) Curative
Allocations.  The allocations set forth in Sections 

6.3.1

(i), 
(ii), 
(iii), 
(iv), 
(v), 
(vi) and 
(vii) hereof (the “Regulatory Allocations”) are
intended to comply with certain regulatory requirements, including the
requirements of Regulations Sections 1.704-1(b) and
1.704-2.  Notwithstanding the provisions of Section 

6.1 hereof, the
Regulatory Allocations shall be taken into account in allocating other items of
income, gain, loss and deduction among the Holders of Partnership Units so that
to the extent possible without violating the requirements giving rise to the
Regulatory Allocations, the net amount of such allocations of other items and
the Regulatory Allocations to each Holder of a Partnership Unit shall be equal
to the net amount that would have been allocated to each such Holder if the
Regulatory Allocations had not occurred.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    6.3.2 Special Allocations Upon
Liquidation.  Notwithstanding
any provision in this Section

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

13.2.1 hereof to be
made in the same amounts and proportions as would have resulted had such
distributions instead been made pursuant to Section 

5.1 hereof.

     

    6.3.3 Allocation of Excess
Nonrecourse Liabilities.  The Partnership
shall allocate “nonrecourse liabilities” (within the meaning of Regulations
Section 1.752-1(a)(2)) of the Partnership that are secured by multiple
Properties under any reasonable method chosen by the General Partner in
accordance with Regulations Section 1.752-3(a)(3)(b).  The
Partnership shall allocate “excess nonrecourse liabilities” of the Partnership
under any method approved under Regulations Section 1.752-3(a)(3) as
chosen by the General Partner.  For purposes of determining a Holder’s
proportional share of the “excess nonrecourse liabilities” of the Partnership
within the meaning of Regulations Section 1.752-3(a)(3), each Holder’s
interest in Partnership profits shall be equal to such Holder’s share of
Partnership Units.

     

    6.4 Tax
Allocations.

     

    6.4.1 In General.  Except as
otherwise provided in this Section 

6.4, for income tax
purposes under the Code and the Regulations each Partnership item of income,
gain, loss and deduction (collectively, “Tax Items”) shall be allocated
among the Holders of Common Units in the same manner as its correlative item of
“book” income, gain, loss or deduction is allocated pursuant to Sections 

6.2 and 
6.3
hereof.

     

    6.4.2 Allocations Respecting
Section 704(c) Revaluations.  Notwithstanding
Section 

6.4.1 hereof, Tax Items
with respect to Property whose Gross Asset Value varies from its adjusted tax
basis in the hands of the Partnership shall be allocated among the Holders of
Partnership Units for income tax purposes pursuant to Regulations promulgated
under Code Section 704(c) so as to take into account such
variation.  The Partnership shall account for such variation under any
permitted method chosen by the General Partner in its sole
discretion.

     

    7. MANAGEMENT AND OPERATIONS OF
BUSINESS.

     

    7.1 Management.

     

    7.1.1 Except as
otherwise expressly provided in this Agreement, all management powers over the
business and affairs of the Partnership are and shall be exclusively vested in
the General Partner, and no Limited Partner shall have any right to participate
in or exercise control or management power over the business and affairs of the
Partnership.  The General Partner may not be removed by the Partners
with or without cause, except with the consent of the General
Partner.  In addition to the powers now or hereafter granted to a
general partner of a limited partnership under applicable law or that are
granted to the General Partner under any other provision of this Agreement, the
General Partner, subject to the other provisions hereof, shall have full power
and authority to do all things deemed necessary or desirable by it to conduct
the business of the Partnership, to exercise all powers set forth in Section 

3.2 hereof and to
effectuate the purposes set forth in Section 

3.1 hereof, including,
without limitation:

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              the
      making of any expenditures, the lending or borrowing of money (including
      making prepayments on loans and borrowing money or selling assets to
      permit the Partnership to make distributions to its Partners in such
      amounts as will permit the General Partner (so long as the General Partner
      desires to maintain or restore its status as a REIT) to avoid the payment
      of any federal income tax (including, for this purpose, any excise tax
      pursuant to Code Section 4981) and to make distributions sufficient
      to permit the General Partner to maintain or restore REIT status or
      otherwise to satisfy the REIT Requirements), the assumption or guarantee
      of, or other contracting for, indebtedness and other liabilities, the
      issuance of evidences of indebtedness (including the securing of same by
      deed to secure debt, mortgage, deed of trust or other lien or encumbrance
      on the Partnership’s assets) and the incurring of any obligations that it
      deems necessary for the conduct of the activities of the
      Partnership;

            

    

     

    
      	
              (b)  

            	
              the
      making of tax, regulatory and other filings, or rendering of periodic or
      other reports to governmental or other agencies having jurisdiction over
      the business or assets of the
Partnership;

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              the
      mortgage, pledge, encumbrance or hypothecation of any assets of the
      Partnership, the use of the assets of the Partnership (including cash on
      hand) for any purpose consistent with the terms of this Agreement and on
      any terms that it sees fit, including the financing of the operations and
      activities of the General Partner, the Partnership or any of the
      Partnership’s Subsidiaries, the lending of funds to other Persons
      (including the Partnership’s Subsidiaries) and the repayment of
      obligations of the Partnership, its Subsidiaries and any other Person in
      which the Partnership has an equity investment, and the making of capital
      contributions to and equity investments in the Partnership’s
      Subsidiaries;

            

    

     

    
      	
              (e)  

            	
              the
      management, operation, leasing, landscaping, repair, alteration,
      demolition, replacement or improvement of any Property, including any
      Contributed Property, or other asset of the Partnership or any Subsidiary,
      whether pursuant to a Services Agreement or
  otherwise;

            

    

     

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
              (f)  

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

            

    

     

    
      	
              (g)  

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

            

    

     

    
      	
              (h)  

            	
              the
      maintenance of such insurance for the benefit of the Partnership and the
      Partners as it deems necessary or appropriate, including
      (i) casualty, liability and other insurance on the Properties and
      (ii) liability insurance for the Indemnitees
    hereunder;

            

    

     

    
      	
              (i)  

            	
              the
      formation of, or acquisition of an interest in, and the contribution of
      property to, any further limited or general partnerships, limited
      liability companies, joint ventures or other relationships that it deems
      desirable (including the acquisition of interests in, and the
      contributions of property to, any Subsidiary and any other Person in which
      it has an equity investment from time to
time);

            

    

     

    
      	
              (j)  

            	
              the
      control of any matters affecting the rights and obligations of the
      Partnership, including the settlement, compromise, submission to
      arbitration or any other form of dispute resolution, or abandonment, of
      any claim, cause of action, liability, debt or damages, due or owing to or
      from the Partnership, the commencement or defense of suits, legal
      proceedings, administrative proceedings, arbitrations or other forms of
      dispute resolution, and the representation of the Partnership in all suits
      or legal proceedings, administrative proceedings, arbitrations or other
      forms of dispute resolution, the incurring of legal expense, and the
      indemnification of any Person against liabilities and contingencies to the
      extent permitted by law;

            

    

     

    
      	
              (k)  

            	
              the
      undertaking of any action in connection with the Partnership’s direct or
      indirect investment in any Subsidiary or any other Person (including the
      contribution of Property or contribution or loan of funds by the
      Partnership to such Persons);

            

    

     

    
      	
              (l)  

            	
              except
      as otherwise specifically set forth in this Agreement, the determination
      of the fair market value of any Partnership property distributed in kind
      using such method of valuation as it may reasonably adopt as long as such
      method is otherwise consistent with the requirements of this
      Agreement;

            

    

     

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
              (m)  

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

            

    

     

    
      	
              (n)  

            	
              the
      exercise, directly or indirectly, through any attorney-in-fact acting
      under a general or limited power of attorney, of any right, including the
      right to vote, appurtenant to any asset or investment held by the
      Partnership;

            

    

     

    
      	
              (o)  

            	
              the
      exercise of any of the powers of the General Partner enumerated in this
      Agreement on behalf of or in connection with any Subsidiary of the
      Partnership or any other Person in which the Partnership has a direct or
      indirect interest, or jointly with any such Subsidiary or other
      Person;

            

    

     

    
      	
              (p)  

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

            

    

     

    
      	
              (q)  

            	
              the
      making, execution and delivery of any and all deeds, leases, notes, deeds
      to secure debt, mortgages, deeds of trust, security agreements,
      conveyances, contracts, guarantees, warranties, indemnities, waivers,
      releases or legal instruments or agreements in writing necessary or
      appropriate in the judgment of the General Partner for the accomplishment
      of any of the powers of the General Partner enumerated in this
      Agreement;

            

    

     

    
      	
              (r)  

            	
              the
      issuance of additional Partnership Units, as appropriate and in the
      General Partner’s sole and absolute discretion, in connection with Capital
      Contributions by Additional Limited Partners and additional Capital
      Contributions by Partners pursuant to Section 

      4
      hereof;

            

    

     

    
      	
              (s)  

            	
              the
      selection and dismissal of Partnership Employees (including employees
      having titles or offices such as president, vice president, secretary and
      treasurer), and agents, outside attorneys, accountants, consultants and
      contractors of the Partnership or the General Partner, the determination
      of their compensation and other terms of employment or hiring and the
      delegation to any such Partnership Employee the authority to conduct the
      business of the Partnership in accordance with the terms of this
      Agreement; and

            

    

     

    
      	
              (t)  

            	
              an
      election to dissolve the Partnership pursuant to Section 

      13.1.2
      hereof.

            

    

     

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    7.1.2 Except as
provided in Section 

14.2 hereof, the General
Partner is authorized to execute, deliver and perform the above-mentioned
agreements and transactions on behalf of the Partnership without any further
act, approval or vote of the Partners, notwithstanding any other provision of
this Agreement, the Act or any applicable law, rule or
regulation.  To the fullest extent permitted by law, the execution,
delivery or performance by the General Partner or the Partnership of any
agreement authorized or permitted under this Agreement shall not constitute a
breach by the General Partner of any duty that the General Partner may owe the
Partnership or the Limited Partners or any other Persons under this Agreement or
of any duty stated or implied by law or equity.

     

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

     

    7.1.4 In
exercising its authority under this Agreement, the General Partner may, but
shall be under no obligation to, take into account the tax consequences to any
Partner (including the General Partner) of any action taken by
it.  The General Partner and the Partnership shall not have liability
to a Limited Partner under any circumstances as a result of an income tax
liability incurred by such Limited Partner as a result of an action (or
inaction) by the General Partner pursuant to its authority under this
Agreement.

     

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

     

    
      	
              (a)  

            	
              taking
      any action that would make it impossible to carry on the ordinary business
      of the Partnership, except as otherwise provided in this
      Agreement;

            

    

     

    
      	
              (b)  

            	
              possessing
      Property, or assigning any rights in specific Property, for other than a
      Partnership purpose except as otherwise provided in this Agreement,
      including Section 

      7.9;

            

    

     

    
      	
              (c)  

            	
              admitting
      a Person as a Partner, except as otherwise provided in this
      Agreement;

            

    

     

    
      	
              (d)  

            	
              performing
      any act that would subject a Limited Partner to liability as a general
      partner in any jurisdiction or any other liability except as otherwise
      provided in this Agreement or under the Act;
or

            

    

     

    
      	
              (e)  

            	
              entering
      into any contract, mortgage, loan or other agreement that prohibits or
      restricts the ability of (a) the General Partner or the Partnership
      from satisfying its obligations under Section 

      8.5 hereof in full or
      (b) a Limited Partner from exercising its rights under Section 

      8.5 hereof to
      effect a Redemption in full, except, in either case, with the written
      consent of such Limited Partner adversely affected by the prohibition or
      restriction.

            

    

     

    7.2 Certificate
of Limited Partnership.  The General
Partner has executed, delivered and filed the Certificate of Limited
Partnership, the Amended and Restated Certificate of Limited Partnership, and
the Second Amended and 

     

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

       

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

    

     

    7.3 Reimbursement
of the General Partner.

     

    7.3.1 The
General Partner shall not be compensated for its services as general partner of
the Partnership except as provided in this Agreement (including the provisions
of Sections 

5 and 
6
hereof regarding distributions, payments and allocations to which it may be
entitled in its capacity as the General Partner).

     

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

7.6 hereof.  To
the extent practicable, Partnership expenses shall be billed directly to and
paid by the Partnership.

     

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

5.1.2.

     

    
      
        
        

      

      
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    7.4 Outside
Activities of the General Partner.  The General
Partner shall not directly or indirectly enter into or conduct any business,
other than in connection with (a) the ownership, acquisition and
disposition of Partnership Interests as General Partner, (b) the management
of the business of the Partnership, (c) the operation of the General
Partner as a reporting company under the Exchange Act, (d) the General
Partner’s operations as a REIT, (e) the offering, sale, syndication,
private placement or public offering of stock, bonds, securities or other
interests, (f) financing or refinancing of any type related to the
Partnership or its assets or activities, (g) any of the foregoing
activities as they relate to a Subsidiary of the Partnership or of the General
Partner and (h) such activities as are incidental thereto. Nothing
contained herein shall be deemed to prohibit the General Partner from executing
guarantees of Partnership debt for which it would otherwise be liable in its
capacity as General Partner.

     

    7.5 Contracts
with Affiliates.

     

    7.5.1 The
Partnership may lend or contribute funds or other assets to its Subsidiaries or
other Persons in which it has an equity investment, and such Persons may borrow
funds from the Partnership, on terms and conditions established in the sole and
absolute discretion of the General Partner.  The foregoing authority
shall not create any right or benefit in favor of any Subsidiary or any other
Person.

     

    7.5.2 Except as
provided in Section 

7.4 hereof and subject
to Section 

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    7.6 Indemnification.

     

    7.6.1 To the
fullest extent permitted by applicable law, the Partnership shall indemnify each
Indemnitee from and against any and all losses, claims, damages, liabilities
(whether joint or several), expenses (including attorney’s fees and other legal
fees and expenses), judgments, fines, settlements and other amounts arising from
any and all claims, demands, actions, suits or proceedings, civil, criminal,
administrative or investigative, that relate to the operations of the
Partnership (“Actions”)
as set forth in this Agreement in which such Indemnitee may be involved, or is
threatened to be involved, as a party or otherwise; provided,
however,
that the Partnership shall not indemnify an Indemnitee (i) for the act or
omission of the Indemnitee material to the matter giving rise to the proceeding
which was committed in bad faith or was the result of active and deliberate
dishonesty; (ii) for any transaction for which such Indemnitee received an
improper personal benefit (in money, property or services) in violation or
breach of any provision of this Agreement; or (iii) in the case of a
criminal proceeding, for an unlawful act or omission by the Indemnitee for which
the Indemnitee had reasonable cause to believe was unlawful.  Without
limitation, the foregoing indemnity shall extend to any liability of any
Indemnitee, pursuant to a loan guaranty or otherwise, for any indebtedness of
the Partnership or any Subsidiary of the Partnership (including any indebtedness
which the Partnership or any Subsidiary of the Partnership has assumed or taken
subject to), and the General Partner is hereby authorized and empowered, on
behalf of the Partnership, to enter into one or more indemnity agreements
consistent with the provisions of this Section 

7.6 in favor of any
Indemnitee having or potentially having liability for any such
indebtedness.  It is the intention of this Section 

7.6.1 that the
Partnership indemnify each Indemnitee to the fullest extent permitted by
law.  The termination of any proceeding by judgment, order or
settlement does not create a presumption that the Indemnitee did not meet the
requisite standard of conduct set forth in this Section 

7.6.1.

     

    The
termination of any proceeding by conviction of an Indemnitee or upon a plea of
nolo contendere or its
equivalent by an Indemnitee, or an entry of an order of probation against an
Indemnitee prior to judgment, does not create a presumption that such Indemnitee
acted in a manner contrary to that specified in this Section 

7.6.1 with respect to
the subject matter of such proceeding.  Any indemnification pursuant
to this Section 

7.6 shall be made only
out of the assets of the Partnership, and neither the General Partner nor any
Limited Partner shall have any obligation to contribute to the capital of the
Partnership or otherwise provide funds to enable the Partnership to fund its
obligations under this Section 

7.6.

     

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

7.6.1 has been met, and
(ii) a written undertaking by or on behalf of the Indemnitee to repay the
amount if it shall ultimately be determined that the standard of conduct has not
been met.

     

    
      
        
        

      

      
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    7.6.3 The
indemnification provided by this Section 

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

     

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

     

    7.6.5 Any
liabilities which an Indemnitee incurs as a result of acting on behalf of the
Partnership or the General Partner (whether as a fiduciary or otherwise) in
connection with the operation, administration or maintenance of an employee
benefit plan or any related trust or funding mechanism (whether such liabilities
are in the form of excise taxes assessed by the IRS, penalties assessed by the
Department of Labor, restitutions to such a plan or trust or other funding
mechanism or to a participant or beneficiary of such plan, trust or other
funding mechanism, or otherwise) shall be treated as liabilities or judgments or
fines under this Section 

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

     

    7.6.6 In no
event may an Indemnitee subject any of the Partners to personal liability by
reason of the indemnification provisions set forth in this
Agreement.

     

    7.6.7 An
Indemnitee shall not be denied indemnification in whole or in part under this
Section 

7.6 because the
Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms
of this Agreement.

     

    7.6.8 The
provisions of this Section 

7.6 are for the benefit
of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other
Persons.  Any amendment, modification or repeal of this Section 

7.6 or any provision
hereof shall be prospective only and shall not in any way affect the obligations
of the Partnership or the limitations on the Partnership’s liability to any
Indemnitee under this Section 

7.6 as in effect
immediately prior to such 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.

     

     

    
      
        
        

      

      
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    7.6.9 It is the
intent of the Partners that any amounts paid by the Partnership to the General
Partner pursuant to this Section

7.6 that are not treated for
federal income tax purposes as repayments of advances made by the General
Partner on behalf of the Partnership shall be treated as “guaranteed payments”
within the meaning of Code Section 707(c).

     

    7.7 Liability
of the General Partner.

     

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

     

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

     

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

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

     

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

     

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

     

     

    
      
        
        

      

      
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    7.7.6 Any
amendment, modification or repeal of this Section 

7.7 or any provision
hereof shall be prospective only and shall not in any way affect the limitations
on the General Partner’s, and its officers’ and directors’, liability to the
Partnership and the Limited Partners under this Section 

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

     

    7.8 Other
Matters Concerning the General Partner.

     

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

     

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

     

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

     

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

     

     

    
      
        
        

      

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

     

    7.10 
 Reliance
by Third Parties.  Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the General Partner has full power
and authority, without the consent or approval of any other Partner or Person,
to encumber, sell or otherwise use in any manner any and all assets of the
Partnership and to enter into any contracts on behalf of the Partnership, and
take any and all actions on behalf of the Partnership, and such Person shall be
entitled to deal with the General Partner as if it were the Partnership’s sole
party in interest, both legally and beneficially.  Each Limited
Partner hereby waives any and all defenses or other remedies that may be
available against such Person to contest, negate or disaffirm any action of the
General Partner in connection with any such dealing.  In no event
shall any Person dealing with the General Partner or its representatives be
obligated to ascertain that the terms of this Agreement have been complied with
or to inquire into the necessity or expediency of any act or action of the
General Partner or its representatives.  Each and every certificate,
document or other instrument executed on behalf of the Partnership by the
General Partner or its representatives shall be conclusive evidence in favor of
any and every Person relying in good faith thereon or claiming thereunder that
(i) at the time of the execution and delivery of such certificate, document
or instrument, this Agreement was in full force and effect, (ii) the Person
executing and delivering such certificate, document or instrument was duly
authorized and empowered to do so for and on behalf of the Partnership and
(iii) such certificate, document or instrument was duly executed and
delivered in accordance with the terms and provisions of this Agreement and is
binding upon the Partnership.

     

    8. RIGHTS AND OBLIGATIONS OF
LIMITED PARTNERS.

     

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

10.4 or under the
Act.

     

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

     

    
      
        
        

      

      
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    8.3 Outside
Activities of Limited Partners.  Subject to any
agreements entered into pursuant to Section 

7.5.5 hereof and any
other agreements entered into by a Limited Partner or its Affiliates with the
General Partner, the Partnership or a Subsidiary (including any employment
agreement), any Limited Partner and any Assignee, officer, director, employee,
agent, trustee, Affiliate, member or shareholder of any Limited Partner shall be
entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and
activities that are in direct or indirect competition with the Partnership or
that are enhanced by the activities of the Partnership.  Neither the
Partnership nor any Partner shall have any rights by virtue of this Agreement in
any business ventures of any Limited Partner or Assignee.  Subject to
such agreements, none of the Limited Partners nor any other Person shall have
any rights by virtue of this Agreement or the partnership relationship
established hereby in any business ventures of any other Person (other than the
General Partner, to the extent expressly provided herein), and such Person shall
have no obligation pursuant to this Agreement, subject to Section 

7.5.5 hereof and any
other agreements entered into by a Limited Partner or its Affiliates with the
General Partner, the Partnership or a Subsidiary, to offer any interest in any
such business ventures to the Partnership, any Limited Partner or any such other
Person, even if such opportunity is of a character that, if presented to the
Partnership, any Limited Partner or such other Person, could be taken by such
Person.

     

    8.4 No Return
of Capital.  Without
limitation of the rights of Redemption set forth in Section 

8.5 hereof, no Limited
Partner shall be entitled to the withdrawal or return of its Capital
Contribution, except upon termination of the Partnership as provided
herein.  Except to the extent provided in Section

4 or Section 
 6 hereof, as otherwise
expressly provided in this Agreement or in connection with any class of
Partnership Units issued pursuant to Section

4.4, no Limited Partner or
Assignee shall have priority over any other Limited Partner or Assignee either
as to the return of Capital Contributions or as to profits, losses or
distributions.

     

    8.5 Redemption
Rights of Qualifying Parties.

     

    8.5.1 On the
fifth anniversary of the issuance of the Class A Convertible Preferred
Units (but not prior to nor following such date (provided that a Notice of
Redemption may be delivered prior to such fifth anniversary)), if a Qualified
Public Offering has been consummated on or at any time prior to such fifth
anniversary, subject to Section 11.6.3, a
Qualifying Party, but no other Limited Partner or Assignee, shall have the right
(subject to the terms and conditions set forth herein) to require the
Partnership to redeem (a “Redemption”) all or a portion
of the Class A Convertible Preferred Units held by such Qualifying Party
(such Class A Convertible Preferred Units being hereafter referred to as
“Tendered Units”) in
exchange for a number of perpetual preferred units, each with a market
distribution rate and with a liquidation preference equal to the Class A
Convertible Preferred Unit Liquidation Preference Amount, equal to the sum of
(A) the number of Tendered Units plus (B) a number equal to the
quotient, rounded to the nearest whole number, of the aggregate amount of
accrued and unpaid distributions on the Tendered Units, divided by the
Class A Convertible Preferred Unit Liquidation Preference
Amount.

     

    
      
        
        

      

      
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    8.5.2 Subject
to Section 
 11.6.3 and to any applicable
restrictions set forth in any agreement, including a contribution agreement,
between a Partner and the Partnership relating to any Contributed Interest or
Contributed Property, a Qualifying Party, but
no other Limited Partner or Assignee, shall have the right (subject to the terms
and conditions set forth herein) to require the Partnership to redeem (also a
“Redemption”) all or a
portion of the Class A Common Units held by such Qualifying Party (such Class A
Common Units also being hereafter referred to as “Tendered Units”) in exchange
for any of the following, selected by majority vote of the Independent Directors
in their sole discretion, payable on the Specified Redemption
Date:  (A) the REIT Consideration, in accordance with Section 8.5.6, or (B) the
Redemption Cash Amount.  For purposes of this Section 

8.5.2, “Redemption Cash Amount” means
an amount in cash equal to the product of (y) the Value of a Common Share,
multiplied by (z) such Tendering Party’s Common Shares Amount, all
determined as of the date of receipt by the General Partner of such Tendering
Party’s Notice of Redemption or, if such date is not a Business Day, the
immediately preceding Business Day.

     

    8.5.3 Subject
to Section 
 11.6.3 and to any applicable
restrictions set forth in any agreement, including a contribution agreement,
between a Partner and the Partnership relating to any Contributed Interest or
Contributed Property, a Qualifying Party, but
no other Limited Partner or Assignee, shall have the right (subject to the terms
and conditions set forth herein) to require the Partnership to redeem (also a
“Redemption”) all or a
portion of the Class B Common Units held by such Qualifying Party (such Class B
Common Units also being hereafter referred to as “Tendered Units”) in exchange
for any of the following, selected by majority vote of the Independent Directors
in their sole discretion, payable on the Specified Redemption
Date:  (A) the REIT Consideration, in accordance with Section 8.5.6, or (B) an equal
number of Class C Common Units.

     

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

     

    
      
        
        

      

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

     

    8.5.6 Notwithstanding
anything to the contrary contained herein, with respect to any proposed
Redemption under Section 8.5.2 or 8.5.3 above (but, for the
avoidance of doubt, not with respect to any proposed Redemption under Section 8.5.1 above), on
or before the close of business on the Cut-Off Date, the General Partner may, by
majority vote of the Independent Directors in their sole and absolute discretion
but subject to the Ownership Limit and the transfer restrictions and other
limitations of the Articles of Incorporation, elect to acquire, up to 100% of
the Tendered Units from the Tendering Party (the percentage elected to be
acquired by the General Partner being referred to as the “Applicable Percentage”) in
exchange for the REIT Consideration. It shall be a condition to the General
Partner’s ability to deliver the REIT Consideration that any such consideration
shall consist of Common Shares which shall, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable. In making such election, the
General Partner shall act in a fair, equitable and reasonable manner that
neither prefers one group or class of Qualifying Parties over another nor
discriminates against a group or class of Qualifying Parties. If the General
Partner, by majority vote of the Independent Directors, so elects, on the
Specified Redemption Date the Tendering Party shall sell the Applicable
Percentage of the Tendered Units to the General Partner in exchange for the REIT
Consideration. The Tendering Party shall submit (i) such information,
certification or affidavit as the General Partner may reasonably require in
connection with the application of the Ownership Limit and any other
restrictions and limitations imposed by the Articles of Incorporation on such
acquisition and (ii) such written representations, investment letters,
legal opinions or other instruments necessary in the view of the General Partner
to effect compliance with the Securities Act and the application of the Code. In
the event of a purchase of any Tendered Units by the General Partner pursuant to
this Section 8.5.6,
the Tendering Party shall no longer have the right to cause the Partnership to
effect a Redemption of such Tendered Units, and, upon notice to the Tendering
Party by the General Partner given on or before the close of business on the
Cut-Off Date, that the General Partner has elected to acquire some or all of the
Tendered Units pursuant to this Section 8.5.6, the
Partnership shall have no obligation to effect a Redemption of the Tendered
Units as to which the notice by the General Partner relates. The REIT
Consideration shall be delivered by the General Partner as duly authorized,
validly issued, fully paid and non-assessable Common Shares and, if applicable,
Rights, free of any pledge, lien, encumbrance or restriction, other than the
Ownership Limit and other restrictions provided in the Articles of
Incorporation, the Bylaws of the General Partner, the Securities Act and
relevant state securities or “blue sky” laws. Neither any Tendering Party whose
Tendered Units are acquired by the General Partner pursuant to this Section 8.5.6, any
Partner nor any other interested Person shall have any right to require or cause
the General Partner to register, qualify or list any Common Shares owned or held
by such Person, whether or not such Common Shares are issued pursuant to this
Section 8.5.6, with
the SEC, with any state securities commissioner, department or agency, under the
Securities Act or the Exchange Act or 

     

    
      
        
        

      

      
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      with any
stock exchange; provided, however, that this limitation shall
not be in derogation of any registration or similar rights granted pursuant to
any other written agreement between the General Partner and any such Person.
Notwithstanding any delay in such delivery, the Tendering Party shall be deemed
the owner of such Common Shares and Rights for all purposes, including rights to
vote or consent, receive dividends, and exercise rights, as of the Specified
Redemption Date. Common Shares issued upon an acquisition of the Tendered Units
by the General Partner pursuant to this Section 8.5.6 may contain
such legends regarding restrictions under the Securities Act and applicable
state securities laws as the General Partner determines to be necessary or
advisable in order to ensure compliance with such laws.

    

     

    8.5.7 Notwithstanding
the provisions of Section 8.5.6 hereof, no
Tendering Party shall have any rights under this Agreement that would otherwise
be prohibited under the Articles of Incorporation with respect to the Ownership
Limit.  To the extent that any attempted Redemption or acquisition of
the Tendered Units by the General Partner pursuant to Section 8.5.6 hereof
would be in violation of this Section 8.5.7, it shall,
to the fullest extent permitted by law, be null and void ab initio, and the Tendering
Party shall not acquire any rights or economic interests in Common Shares
otherwise issuable by the General Partner under Section 8.5.6
hereof.  Notwithstanding the provisions of Section 8.5.6 hereof, the
General Partner shall not, under any circumstances, elect to acquire Tendered
Units in exchange for the REIT Consideration if such acquisition would be
prohibited under the Articles of Incorporation.  Notwithstanding
anything to the contrary contained herein, in no event shall the General Partner
be obligated to deliver cash in respect of any Redemption pursuant to Section 8.5.2 unless the
General Partner so elects by a majority vote of the Independent Directors in
their sole discretion.

     

    8.5.8 Notwithstanding
anything herein to the contrary (but subject to Section 

8.5.7 hereof), with
respect to any Redemption (or any tender of Partnership Units for Redemption if
the Tendered Units are acquired by the General Partner pursuant to Section 8.5.6 hereof)
pursuant to this Section 

8.5:

     

    
      	
              (a)  

            	
              All
      Partnership Units acquired by the General Partner pursuant to Section 8.5.6
      hereof may, at the election of the General Partner, be converted into and
      deemed to be a General Partner Interest comprised of the same number of
      Common Units.

            

    

     

    
      	
              (b)  

            	
              Subject
      to the Ownership Limit, no Tendering Party may effect a Redemption for
      less than five hundred (500) Common Units or, if such Tendering Party
      holds (as a Limited Partner or, economically, as an Assignee) less than
      five hundred (500) Common Units, all of the Common Units held by such
      Tendering Party.

            

    

     

    
      	
              (c)  

            	
              Each
      Tendering Party (a) may effect a Redemption only once in each fiscal
      quarter of a twelve-month period, unless otherwise permitted by a majority
      vote of the Independent Directors, in their sole and absolute discretion
      and (b) may not effect a Redemption during the period after the
      Partnership Record Date with respect to a distribution and before the
      record date established by the General Partner for a distribution to its
      shareholders of some or all of its portion of such Partnership
      distribution.

            

    

     

     

    
      
        
        

      

      
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              (d)  

            	
              The
      consummation of such Redemption (or an acquisition of Tendered Units by
      the General Partner pursuant to Section 8.5.6
      hereof, as the case may be) shall be subject to the expiration or
      termination of the applicable waiting period, if any, under the
      Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
      amended.

            

    

     

    
      	
              (e)  

            	
              The
      Tendering Party shall continue to own all Partnership Units subject to any
      Redemption, and be treated as a Limited Partner or Holder, as applicable,
      with respect to such Partnership Units for all purposes of this Agreement,
      until such Partnership Units are redeemed or acquired by the General
      Partner on the Specified Redemption Date in accordance with the applicable
      provisions of this Section
      8.5.  Until a Specified Redemption Date upon which there
      occurs an acquisition of the Tendered Units by the General Partner
      pursuant to Section 8.5.6
      hereof, the Tendering Party shall have no rights as a shareholder of the
      General Partner with respect to the Common Shares issuable in connection
      with such acquisition.

            

    

     

    
      	
              (f)  

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

            

    

     

    8.5.9 In
connection with an exercise of Redemption rights pursuant to this Section 

8.5, the Tendering Party
shall submit the following to the General Partner, in addition to the Notice of
Redemption:

     

    
      	
              (a)  

            	
              A
      written affidavit, dated the same date as the Notice of Redemption,
      (a) disclosing the actual and constructive ownership, as determined
      for purposes of Code Sections 856(a)(6) and 856(h), of Common Shares
      by (i) such Tendering Party and (ii) any Related Party and
      (b) representing that, after giving effect to the Redemption or an
      acquisition of the Tendered Units by the General Partner pursuant to Section 8.5.6
      hereof, neither the Tendering Party nor any Related Party will own
      Common Shares in excess of the Ownership
Limit;

            

    

     

    
      	
              (b)  

            	
              A
      written representation that neither the Tendering Party nor any Related
      Party has any intention to acquire any additional Common Shares prior to
      the closing of the Redemption or an acquisition of the Tendered Units by a
      REIT Partner pursuant to Section 8.5.6
      hereof on the Specified Redemption Date;
and

            

    

     

     

    
      
        
        

      

      
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              (c)  

            	
              An
      undertaking to certify, at and as a condition to the closing of
      (i) the Redemption or (ii) the acquisition of the Tendered Units
      by the General Partner pursuant to Section 8.5.6
      hereof on the Specified Redemption Date, that either (a) the actual
      and constructive ownership of Common Shares by the Tendering Party and any
      Related Party remain unchanged from that disclosed in the affidavit
      required by Section 8.5.9(a) or
      (b) after
      giving effect to the Redemption or an acquisition of the Tendered Units by
      the General Partner pursuant to Section 8.5.6
      hereof, neither the Tendering Party nor any Related Party shall own Common
      Shares in violation of the Ownership
Limit.

            

    

     

    8.5.10 Partnership
Right to Call Limited Partner Interests.  Notwithstanding
any other provision of this Agreement, (x) on and after the date on which the
aggregate economic interests of the Limited Partners in the assets of the
Partnership are less than one percent (1%), or (y) at any time from and after
the date hereof that the Partnership determines, in its sole and absolute
discretion, that it is reasonably necessary for the General Partner to maintain
or restore its status as a REIT or to satisfy the REIT Requirements that the
Partnership redeem all or a portion of the Class A Convertible Preferred Units
held by any Limited Partner, then, at either such time, the Partnership shall
have the right, but not the obligation, from time to time and at any such time
to redeem any and all outstanding Limited Partner Interests by treating any
Limited Partner as a Tendering Party who has delivered a Notice of Redemption
pursuant to Section 

8.5 hereof for the
amount of Common Units to be specified by the General Partner, in its sole and
absolute discretion, by notice to such Limited Partner that the Partnership has
elected to exercise its rights under this Section 8.5.10.  Such
notice given by the General Partner to a Limited Partner pursuant to this Section 8.5.10 shall be
treated as if it were a Notice of Redemption delivered to the General Partner by
such Limited Partner.  For purposes of this Section 8.5.10,
(a) any Limited Partner (whether or not otherwise a Qualifying Party) may,
in the General Partner’s sole and absolute discretion, be treated as a
Qualifying Party that is a Tendering Party and (b) the provisions of Sections 8.5.8(b),
and 8.5.8(c) hereof
shall not apply, but the remainder of Section 

8.5 hereof shall apply,
mutatis mutandis.

     

    8.6 Mergers.  The General
Partner shall not permit the Partnership to be a party to any consolidation,
merger, combination or other transaction pursuant to which the Common Units are
converted or changed into or exchanged for partnership interests and/or other
securities of another operating partnership in an UPREIT or similar structure,
in each case without the affirmative vote of both (i) the holders of at least a
majority of the Percentage Interests excluding the General Partner’s Interest,
voting together as a single class, and (ii) the holders of at least a majority
of the Class A Convertible Preferred Units, unless upon consummation of any such
consolidation, merger, combination or other transaction, the holders of Common
Units shall receive shares of stock or beneficial interest or other equity
securities of the parent REIT of such operating partnership with preferences,
rights and privileges not materially inferior to the preferences, rights and
privileges of Common Shares.  This Section 

8.6 shall not be amended
or modified without the prior consent of the both (i) holders of at least a
majority of the Percentage Interests excluding the General Partner’s Interest,
and (ii) the holders of at least a majority of the Class A Convertible Preferred
Units.

     

     

    
      
        
        

      

      
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    9. BOOKS, RECORDS, ACCOUNTING
AND REPORTS.

     

    9.1 Records
and Accounting.

     

    9.1.1 The
General Partner shall keep or cause to be kept at the principal office of the
Partnership those records and documents required to be maintained by the Act and
other books and records deemed by the General Partner to be appropriate with
respect to the Partnership’s business, including all books and records necessary
to provide to the Limited Partners any information, lists and copies of
documents required to be provided pursuant to Section 

9.3
hereof.  Any records maintained by or on behalf of the Partnership in
the regular course of its business may be kept on, or be in the form for,
magnetic tape, photographs, micrographics or any other information storage
device, provided that the records so maintained are convertible into clearly
legible written form within a reasonable period of time.

     

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

     

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

     

    9.3 Reports.

     

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

     

    9.3.2 As soon
as practicable, but in no event later than one hundred five (105) days
after the close of each calendar quarter (except the last calendar quarter of
each year), the General Partner shall cause to be mailed to each Limited Partner
of record as of the last day of the calendar quarter a report containing
unaudited financial statements of the Partnership, or of the General Partner if
such statements are prepared solely on a consolidated basis with the General
Partner, and such other information as may be required by applicable law or
regulation or as the General Partner determines to be appropriate.

     

    10. TAX
MATTERS.

     

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

     

    
      
        
        

      

      
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      state
income tax reporting purposes.  The Limited Partners shall promptly
provide the General Partner with such information relating to the Contributed
Properties, including tax basis and other relevant information, as may be
reasonably requested by the General Partner from time to time for the purpose of
complying with this Section 

10.1.

    

     

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

     

    10.3 Tax
Matters Partner.

     

    10.3.1 The
General Partner shall be the “tax matters partner” of the Partnership for
federal income tax purposes.  The tax matters partner shall receive no
compensation for its services.  All third-party costs and expenses
incurred by the tax matters partner in performing its duties as such (including
legal and accounting fees and expenses) shall be borne by the Partnership in
addition to any reimbursement pursuant to Section 

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

     

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

     

    
      	
              (a)  

            	
              to
      enter into any settlement with the IRS with respect to any administrative
      or judicial proceedings for the adjustment of Partnership items required
      to be taken into account by a Partner for income tax purposes(such
      administrative proceedings being referred to as a “tax audit” and such
      judicial proceedings being referred to as “judicial review”), and in the
      settlement agreement the tax matters partner may expressly state that such
      agreement shall bind all Partners, except that such settlement agreement
      shall not bind any Partner (i) who (within the time prescribed
      pursuant to the Code and Regulations) files a statement with the IRS
      providing that the tax matters partner shall not have the authority to
      enter into a settlement agreement on behalf of such Partner or
      (ii) who is a “notice partner” (as defined in Code Section 6231)
      or a member of a “notice group” (as defined in Code
      Section 6223(b)(2));

            

    

     

    
      	
              (b)  

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

            

    

     

     

    
      
        
        

      

      
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              (c)  

            	
              to
      intervene in any action brought by any other Partner for judicial review
      of a final adjustment;

            

    

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

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

            

    

     

    
      	
              (f)  

            	
              to
      take any other action on behalf of the Partners in connection with any tax
      audit or judicial review proceeding to the extent permitted by applicable
      law or regulations.

            

    

     

    The
taking of any action and the incurring of any expense by the tax matters partner
in connection with any such proceeding, except to the extent required by law, is
a matter in the sole and absolute discretion of the tax matters partner and the
provisions relating to indemnification of the General Partner set forth in Section 

7.6 hereof shall be
fully applicable to the tax matters partner in its capacity as
such.

     

    10.4 Withholding.  The Partnership
shall be authorized to withhold from or pay on behalf of or with respect to any
Unitholder, any amount of federal, state, local or foreign taxes that the
General Partner determines that the Partnership is required to withhold or pay
with respect to any amount distributable or allocable to such Unitholder
pursuant to this Agreement, including any taxes required to be withheld or paid
by the Partnership pursuant to Section 1441, 1442, 1445 or 1446 of the
Code.  Any amount paid on behalf of or with respect to a Unitholder
shall constitute a loan by the Partnership to such Unitholder, which loan shall
be repaid by such Unitholder within fifteen (15) days after notice from the
General Partner that such payment must be made unless (i) the Partnership
withholds such payment from a distribution that would otherwise be made to the
Unitholder or (ii) the General Partner determines, in its sole and absolute
discretion, that such payment may be satisfied out of the available funds of the
Partnership that would, but for such payment, be distributed to the
Unitholder.  Any amounts withheld pursuant to the foregoing
clause (i) or (ii) shall be treated as having been distributed to
such Unitholder.  The Partnership shall have (without the requirement
that any party take any further action) a security interest in such Unitholder’s
Partnership Interests to secure such Unitholder’s obligation to pay to the
Partnership any amounts required to be paid pursuant to this Section 

10.4.  In the
event that a Unitholder fails to pay any amounts owed to the Partnership
pursuant to this Section 

10.4 when due, the
General Partner may, in its sole and absolute discretion, elect to make the
payment to the Partnership on behalf of such defaulting Unitholder, and in such
event shall be deemed to have loaned such amount to such defaulting Unitholder
and shall succeed to all rights and remedies of the Partnership as against such
defaulting Unitholder (including the right to receive
distributions).  Any amounts payable by a Unitholder hereunder shall
bear interest at the prime rate at large United States money center commercial
banks, as published from time to time in The Wall Street Journal, plus four
(4) percentage points (but not higher than the 

     

    
      
        
        

      

      
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      maximum
lawful rate) from the date such amount is due (i.e., fifteen (15) days
after demand) until such amount is paid in full.  Each Unitholder
shall take such actions as the General Partner shall request in order to perfect
or enforce the security interest created hereunder.

    

     

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

     

    11. TRANSFERS AND
WITHDRAWALS.

     

    11.1 Transfer.

     

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

     

    11.1.2 No
Partnership Interest shall be Transferred, in whole or in part, except in
accordance with the terms and conditions set forth in this Section 

11.  Any
Transfer or purported Transfer of a Partnership Interest not made in accordance
with this Section 

11 shall be null and
void ab
initio.

     

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

     

    11.2 Transfer
of General Partner’s Partnership Interest.

     

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

11.2.

     

    11.2.2 Except as
set forth in Section 

11.2.2 and Section 

11.2.3 below, the
General Partner shall not withdraw from the Partnership and shall not Transfer
all or any portion of its interest in the Partnership (whether by sale,
disposition, statutory merger or consolidation, liquidation or otherwise)
without the Consent of the Limited Partners, which Consent may be given or
withheld in the sole and absolute discretion of 

     

    
      
        
        

      

      
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      the
Limited Partners.  Upon any Transfer of such a Partnership Interest
pursuant to the Consent of the Limited Partners and otherwise in accordance with
the provisions of this Section 

11.2.2, the transferee
shall become a successor General Partner for all purposes herein, and shall be
vested with the powers and rights of the transferor General Partner, and shall
be liable for all obligations and responsible for all duties of the General
Partner, once such transferee has executed such instruments as may be necessary
to effectuate such admission and to confirm the agreement of such transferee to
be bound by all the terms and provisions of this Agreement with respect to the
Partnership Interest so acquired.  It is a condition to any Transfer
otherwise permitted hereunder that the transferee assumes, by operation of law
or express agreement, all of the obligations of the transferor General Partner
under this Agreement with respect to such Transferred Partnership Interest, and
such Transfer shall relieve the transferor General Partner of its obligations
under this Agreement without the Consent of the Limited Partners.  In
the event that the General Partner withdraws from the Partnership, in violation
of this Agreement or otherwise, or otherwise dissolves or terminates, or upon
the bankruptcy of the General Partner, a Majority of the Limited Partners may
elect to continue the Partnership business by selecting a successor General
Partner in accordance with the Act.

    

     

    11.2.3 Notwithstanding
the other provisions of this Section 

11 (other than Section 

11.6.3 hereof), the
Partnership Interests of the General Partner may be Transferred, in whole or in
part, at any time or from time to time, to any Person that is, at the time of
such Transfer, a Qualified REIT Subsidiary.  Any transferee of the
entire General Partner Interest pursuant to this Section 

11.2.3 shall
automatically become, without further action or Consent of any Limited Partners,
the sole general partner of the Partnership, subject to all the rights,
privileges, duties and obligations under this Agreement and the Act relating to
a general partner.  Upon any Transfer permitted by this Section 

11.2.3, the transferor
Partner shall be relieved of all its obligations under this
Agreement.  The provisions of Section 

11.2.2 (other than the
last sentence thereof), 
11.3,

11.4.1 and 
11.5
hereof shall not apply to any Transfer permitted by this Section 

11.2.3.

     

    11.2.4 Notwithstanding
Section 

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

     

    11.3 Transfer
of Limited Partners’ Partnership Interests.

     

    11.3.1 General.  No
Limited Partner shall Transfer all or any portion of its Partnership Interest to
any transferee without the consent of the General Partner, which consent may be
withheld in its sole and absolute discretion, provided, however, that subject to Section 

11.3.4 and Section 

11.6.3 hereof, any
Limited Partner that is an individual may Transfer all or any portion of his
Partnership Interest to any of his Family Members without the consent of the
General Partner, provided, further, that the General Partner
has the right not to admit such transferee as a Substituted Limited Partner in
the Partnership.

     

    11.3.2 Conditions to Transfer
Consent.  Without limiting the generality of Section 

11.3.1 hereof, it is
expressly understood and agreed that the General Partner will not consent to any
Transfer of all or any portion of any Partnership Interest pursuant to Section 

11.3.1 above unless such
Transfer meets each of the following conditions:

     

    
      
        
        

      

      
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              (a)  

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

            

    

     

    
      	
              (b)  

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

      11.5
      hereof.

            

    

     

    
      	
              (c)  

            	
              Effective
      Date.  Such Transfer is to be effective as of the first
      day of a fiscal quarter of the
Partnership.

            

    

     

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

     

    11.3.4 No Adverse Tax
Consequences.  No Transfer by a Limited Partner of its
Partnership Interests may be made to or by any person if in the opinion of the
General Partner, (i) the Transfer would result in the Partnership being
treated as an association taxable as a corporation or would result in a
termination of the Partnership under Code Section 708, (ii) such
Transfer would be effectuated through an “established securities market” or a
“secondary market (or the substantial equivalent thereof)” within the meaning of
Code Section 7704, or (iii) such Transfer would require registration under
the Securities Act or would otherwise violate any federal or state securities
laws or regulations applicable to the Partnership or the Partnership Interests
Transferred.  The General Partner shall have the right to receive an
opinion of counsel reasonably satisfactory to it, at the cost of the Limited
Partner desiring to effectuate such transfer, to the effect that the proposed
Transfer satisfies the requirements of the first sentence of this Section 

11.3.4.

     

    
      
        
        

      

      
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    11.4 Substituted
Limited Partners.

     

    11.4.1 A
transferee of the interest of a Limited Partner pursuant to a Transfer consented
to by the General Partner (or for which no consent is required) pursuant to
Section 

11.3 may be admitted as
a Substituted Limited Partner only with the consent of the General Partner,
which consent may be given or withheld by the General Partner in its sole and
absolute discretion.  The failure or refusal by the General Partner to
permit a transferee of any such interests to become a Substituted Limited
Partner shall not give rise to any cause of action against the Partnership or
the General Partner.  Subject to the foregoing, an Assignee shall not
be admitted as a Substituted Limited Partner until and unless it furnishes to
the General Partner (i) an instrument of joinder to this Agreement executed
by such Assignee and (ii) such other documents and instruments as may be
required or advisable, in the sole and absolute discretion of the General
Partner, to effect such Assignee’s admission as a Substituted Limited
Partner.

     

    11.4.2 A
transferee who has been admitted as a Substituted Limited Partner in accordance
with this Section 

11 shall have all the
rights and powers and be subject to all the restrictions and liabilities of a
Limited Partner under this Agreement.

     

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

     

    11.5 Assignees.  If the General
Partner, in its sole and absolute discretion, does not consent to the admission
of any transferee of any Partnership Interest as a Substituted Limited Partner
in connection with a transfer consented to (or for which no consent is required)
by the General Partner pursuant to Section 

11.3.1, such transferee
shall be considered an Assignee for purposes of this Agreement.  An
Assignee shall be entitled to all the rights of an assignee of a limited
partnership interest under the Act, and the right to receive distributions from
the Partnership and the share of Income, Loss and other items of income, gain,
loss, deduction and credit of the Partnership attributable to the Partnership
Units assigned to such transferee, and the rights to Transfer the Partnership
Units in accordance with the provisions of this Section 

11, but shall not be
deemed to be a holder of Partnership Units for any other purpose under this
Agreement, and shall not be entitled to effect a Consent or vote or effect a
Redemption with respect to such Partnership Units on any matter presented to the
Limited Partners for approval (such right to Consent or vote or effect a
Redemption, to the extent provided in this Agreement or under the Act, fully
remaining with the transferor Limited Partner).  In the event that any
such transferee desires to make a further assignment of any such Partnership
Units, such transferee shall be subject to all the provisions of this Section 

11 to the same extent
and in the same manner as any Limited Partner desiring to make an assignment of
Partnership Units.

     

    
      
        
        

      

      
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    11.6 General
Provisions.

     

    11.6.1 No
Limited Partner may withdraw from the Partnership other than as a result of a
permitted Transfer of all of such Limited Partner’s Partnership Units in
accordance with this Section 

11, with respect to
which the transferee becomes a Substituted Limited Partner, or pursuant to a
redemption (or acquisition by the General Partner) of all of its Partnership
Units pursuant to a Redemption under Section 

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

11 where such transferee
was admitted as a Substituted Limited Partner, (ii) pursuant to the
exercise of its rights to effect a redemption of all of its Partnership Units
pursuant to a Redemption under Section 

8.5 hereof and/or
pursuant to any Partnership Unit Designation or (iii) to the General
Partner, whether or not pursuant to Section 8.5.6 hereof,
shall cease to be a Limited Partner.

     

    11.6.2 If any
Partnership Unit is Transferred in compliance with the provisions of this Section 

11, or is redeemed by
the Partnership, or acquired by the General Partner pursuant to Section 8.5.6 hereof, on
any day other than the first day of a Fiscal Year, then Income, Losses, each
item thereof and all other items of income, gain, loss, deduction and credit
attributable to such Partnership Unit for such Fiscal Year shall be allocated to
the transferor Partner or the Tendering Party, as the case may be, and, in the
case of a Transfer or assignment other than a Redemption, to the transferee
Partner, by taking into account their varying interests during the Fiscal Year
in accordance with Code Section 706(d), using the “interim closing of the
books” method or another permissible method selected by the General
Partner.  Solely for purposes of making such allocations, each of such
items for the calendar month in which a Transfer occurs shall be allocated to
the transferee Partner and none of such items for the calendar month in which a
Transfer or a Redemption occurs shall be allocated to the transferor Partner or
the Tendering Party, as the case may be, if such Transfer occurs on or before
the fifteenth (15th) day of the month, otherwise such items shall be allocated
to the transferor (unless such method of allocation is determined by the General
Partner to be improper).  All distributions pursuant to Section 

5.1 attributable to such
Partnership Unit with respect to which the Partnership Record Date is before the
date of such Transfer, assignment or Redemption shall be made to the transferor
Partner or the Tendering Party, as the case may be, and, in the case of a
Transfer other than a Redemption, all distributions pursuant to Section 

5.1 thereafter
attributable to such Partnership Unit shall be made to the transferee
Partner.

     

    11.6.3 In no
event may any Transfer of a Partnership Interest by any Partner (including any
Redemption, any acquisition of Partnership Units by the General Partner or any
other acquisition of Partnership Units by the Partnership) be made (i) to
any person or entity who lacks the legal right, power or capacity to own a
Partnership Interest; (ii) in violation of applicable law; (iii) of
any component portion of a Partnership Interest (other than a Partnership Unit),
such as the Capital Account, or rights to distributions, separate and apart from
all other components of a Partnership Interest; (iv) in the event that such
Transfer would 

     

    
      
        
        

      

      
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      cause the
General Partner to cease to comply with the REIT Requirements; (v) if such
Transfer would, in the opinion of counsel to the Partnership or the General
Partner, cause a termination of the Partnership for federal or state income tax
purposes (except as a result of the Redemption (or acquisition by a REIT
Partner) of all Common Units held by all Limited Partners); (vi) if such
Transfer would, in the opinion of legal counsel to the Partnership, cause the
Partnership to cease to be classified as a partnership for federal income tax
purposes (except as a result of the Redemption (or acquisition by a REIT
Partner) of all Common Units held by all Limited Partners); (vii) if such
Transfer would cause the Partnership to become, with respect to any employee
benefit plan subject to Title I of
ERISA, a “party-in-interest” (as defined in ERISA Section 3(14)) or a
“disqualified person” (as defined in Code Section 4975(c)); (viii) if
such Transfer would, in the opinion of legal counsel to the Partnership, cause
any portion of the assets of the Partnership to constitute assets of any
employee benefit plan pursuant to Department of Labor Regulations
Section 2510.2-101; (ix) if such Transfer requires the registration of
such Partnership Interest pursuant to any applicable federal or state securities
laws; (x) if such Transfer causes the Partnership to become a “publicly
traded partnership,” as such term is defined in Code 7704(b); or (xi) if
such Transfer subjects the Partnership to regulation under the Investment
Company Act of 1940, the Investment Advisors Act of 1940 or ERISA, each as
amended. 

    

     

    12. ADMISSION OF
PARTNERS.

     

    12.1 Admission
of Successor General Partner.  A successor to
all of the General Partner’s General Partner Interest pursuant to Section 

11.2 hereof who is
proposed to be admitted as a successor General Partner shall be admitted to the
Partnership as the General Partner, effective immediately upon such
Transfer.  Any such successor shall carry on the business of the
Partnership without dissolution.  In each case, the admission shall be
subject to the successor General Partner executing and delivering to the
Partnership an instrument of joinder to this Agreement and such other documents
or instruments as may be required to effect the admission.

     

    12.2 Admission
of Additional Limited Partners.

     

    12.2.1 After the
date hereof, a Person (other than an existing Partner) who makes a Capital
Contribution to the Partnership in accordance with this Agreement shall be
admitted to the Partnership as an Additional Limited Partner only upon
furnishing to the General Partner (i) an instrument of joinder to this
Agreement executed by such Person and (ii) such other documents or
instruments as may be required in the sole and absolute discretion of the
General Partner in order to effect such Person’s admission as an Additional
Limited Partner.

     

    12.2.2 Notwithstanding
anything to the contrary in this Section 

12.2, no Person shall be
admitted as an Additional Limited Partner without the consent of the General
Partner, which consent may be given or withheld in the General Partner’s sole
and absolute discretion.  The admission of any Person as an Additional
Limited Partner shall become effective on the date upon which the name of such
Person is recorded on the books and records of the Partnership, following the
consent of the General Partner to such admission.

     

    
      
        
        

      

      
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    12.2.3 If any
Additional Limited Partner is admitted to the Partnership on any day other than
the first day of a Fiscal Year, then Income, Losses, each item thereof and all
other items of income, gain, loss, deduction and credit allocable among Partners
and Assignees for such Fiscal Year shall be allocated pro rata among such
Additional Limited Partner and all other Partners and Assignees by taking into
account their varying interests during the Fiscal Year in accordance with Code
Section 706(d), using the “interim closing of the books” method or another
permissible method selected by the General Partner.  Solely for
purposes of making such allocations, each of such items for the calendar month
in which an admission of any Additional Limited Partner occurs shall be
allocated among all the Partners and Assignees including such Additional Limited
Partner, in accordance with the principles described in Section 

11.6.2 hereof. All distributions
pursuant to Section 

5.1 (a) with respect to
which the Partnership Record Date is before the date of such admission shall be
made solely to Partners and Assignees other than the Additional Limited Partner,
(b) with respect to which the Partnership Record Date is after the date of such
admission but which relates to the calendar quarter in which such Partner was
admitted shall be prorated (i.e., reduced) to reflect the number of days in such
quarter during which such Partner was a Partner and such prorated amount shall
be paid to such Additional Limited Partner, and (c) thereafter shall be made to
all the Partners and Assignees including such Additional Limited
Partner.

     

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

2.4 hereof.

     

    13. DISSOLUTION, LIQUIDATION AND
TERMINATION.

     

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

     

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

     

    
      
        
        

      

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

     

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

     

    13.1.4 the
consummation of a Terminating Capital Transaction.

     

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

     

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

     

    13.2 Winding
Up.

     

    13.2.1 Upon the
occurrence of a Liquidating Event, the Partnership shall continue solely for the
purposes of winding up its affairs in an orderly manner, liquidating its assets
and satisfying the claims of its creditors and Partners.  After the
occurrence of a Liquidating Event, no Partner shall take any action that is
inconsistent with the winding up of the
Partnership’s business and affairs.  The General Partner (or, in the
event that there is no remaining General Partner or the General Partner has
dissolved, become bankrupt within the meaning of the Act or ceased to operate,
any Person elected by a Majority of the Limited Partners (the General Partner or
such other Person being referred to herein as the “Liquidator”)) shall be
responsible for overseeing the winding up and dissolution of the Partnership and
shall take full account of the Partnership’s liabilities and property, and the
Partnership property shall be liquidated as promptly as the Liquidator
determines is consistent with obtaining the fair value thereof, and the proceeds
therefrom (which may, to the extent determined by the Liquidator, include shares
of stock in the General Partner) shall be applied and distributed in the
following order:

     

    
      	
              (a)  

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

            

    

     

    
      
        
        

      

      
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              (b)  

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

      7.3
      hereof;

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              Fourth,
      to the satisfaction of all of the debts and liabilities of any Subsidiary
      of the General Partner and the
Partnership;

            

    

     

    
      	
              (e)  

            	
              Fifth,
      to the Holders of Senior Units in accordance with the designations or
      preferences associated with such Senior
Units;

            

    

     

    
      	
              (f)  

            	
              Sixth,
      to the Holders of Class A Convertible Preferred Units and Pari Passu Units
      pursuant to Section
      
4.3.3 above;
      and

            

    

     

    
      	
              (g)  

            	
              Subject
      to the terms of any additional Partnership Unit Designation, the balance,
      if any, to the Holders of Common Units, pro rata in accordance with their
      relative Percentage Interests.

            

    

     

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

13.

     

    13.2.2 Notwithstanding
the provisions of Section 

13.2.1 hereof that
require liquidation of the assets of the Partnership, but subject to the order
of priorities set forth therein, if prior to or upon dissolution of the
Partnership the Liquidator determines that an immediate sale of part or all of
the Partnership’s assets would be impractical or would cause undue loss to the
Partners, the Liquidator may, in its sole and absolute discretion, defer for a
reasonable time the liquidation of any assets except those necessary to satisfy
liabilities of the Partnership (including to those Partners as creditors) and/or
distribute to the Partners, in lieu of cash, as tenants in common and in
accordance with the provisions of Section 

13.2.1 hereof, undivided
interests in such Partnership assets as the Liquidator deems not suitable for
liquidation.  Any such distributions in kind shall be made only if
they can be made without registration under the Securities Act and if, following
such distributions, the Partnership is not required to register the interests so
distributed under the Exchange Act, and shall be subject to such conditions
relating to the disposition and management of such properties as the Liquidator
deems reasonable and equitable and to any agreements governing the operation of
such properties at such time.  The Liquidator shall determine the fair
market value of any property distributed in kind using such reasonable method of
valuation as it may adopt.

     

    13.2.3 In the
event that the Partnership is “liquidated” within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g), and any Partner has a deficit balance in its
Capital Account (after giving effect to all contributions, distributions and
allocations for all taxable years, including the year during which such
liquidation occurs) (a “Capital
Account Deficit”), such Partner shall have no obligation to make a
contribution to the capital of the Partnership on account of such deficit, and
such Capital Account Deficit shall not be considered a debt owed to the
Partnership or any other person for any purpose whatsoever.  In the
sole and absolute discretion of the General Partner or the Liquidator, a pro
rata portion of the distributions that would otherwise be made to the Partners
pursuant to this Section 

13 may be:

     

    
      
        
        

      

      
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              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    13.3 Deemed
Distribution and Recontribution.  Notwithstanding
any other provision of this Section 

13, in the event that
the Partnership is liquidated within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g), but no Liquidating Event has occurred, the
Partnership’s Property shall not be liquidated, the Partnership’s liabilities
shall not be paid or discharged and the Partnership’s affairs shall not be wound
up.  Instead, for federal income tax purposes the Partnership shall be
deemed to have contributed all of its assets and liabilities to a new
partnership in exchange for an interest in the new partnership; and, immediately
thereafter, distributed interests in the new partnership to the Partners in
accordance with the provisions of Section

13.2.1 in liquidation of the
Partnership, and the new partnership shall be deemed to continue the business of
the Partnership.  Nothing in this Section 

13.3 shall be deemed to
have constituted any Assignee as a Substituted Limited Partner without
compliance with the provisions of Section 

11.4
hereof.

     

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

     

    
      
        
        

      

      
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    13.5 Notice of
Dissolution.  In the event
that a Liquidating Event occurs or an event occurs that would, but for an
election or objection by one or more Partners pursuant to Section 

13.1 hereof, result in a
dissolution of the Partnership, the General Partner shall, within thirty
(30) days thereafter, provide written notice thereof to each of the
Partners and, in the General Partner’s sole and absolute discretion or as
required by the Act, to all other parties with whom the Partnership regularly
conducts business (as determined in the sole and absolute discretion of the
General Partner), and the General Partner may, or, if required by the Act,
shall, publish notice thereof in a newspaper of general circulation in each
place in which the Partnership regularly conducts business (as determined in the
sole and absolute discretion of the General Partner).

     

    13.6 Cancellation
of Certificate of Limited Partnership.  Upon the
completion of the liquidation of the Partnership cash and property as provided
in Section 

13.2 hereof, the
Partnership shall be terminated, a certificate of cancellation shall be filed
with the State of Delaware, all qualifications of the Partnership as a foreign
limited partnership or association in jurisdictions other than the State of
Delaware shall be cancelled, and such other actions as may be necessary to
terminate the Partnership shall be taken.

     

    13.7 Reasonable
Time for Winding-Up.  A reasonable
time shall be allowed for the orderly winding-up of the business and affairs of
the Partnership and the liquidation of its assets pursuant to Section 

13.2 hereof, in order to
minimize any losses otherwise attendant upon such winding-up, and the provisions
of this Agreement shall remain in effect between the Partners during the period
of liquidation.

     

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

     

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

14.

     

    14.2 Amendments.

     

    14.2.1 Amendments
to this Agreement may be proposed by the General Partner or by a Majority of the
Limited Partners.  Within thirty (30) days following such proposal,
the General Partner shall submit to the Limited Partners any proposed amendment
that requires the consent of the Limited Partners.  The General
Partner shall seek the written consent of the Limited Partners on the proposed
amendment or shall call a meeting to vote thereon and to transact any other
business that the General Partner may deem appropriate.  For purposes
of obtaining a written consent, the General Partner may require a response
within a reasonable specified time, but not less than fifteen (15) days,
and failure to respond in such time period shall constitute a consent that is
consistent with the General Partner’s recommendation with respect to the
proposal; provided,
however,
that an action shall become effective at such time as requisite consents are
received even if prior to such specified time.

     

    
      
        
        

      

      
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    14.2.2 The
General Partner shall not, without the prior Consent of the Limited Partners,
except as provided in Sections 

4.4.1, 
5.5,

6.2.1 and

14.2.3 hereof, amend, modify
or terminate this Agreement.

     

    14.2.3 Notwithstanding
anything to the contrary contained herein, including Section 

14.2.2 hereof, the
General Partner shall have the power, without the Consent of the Limited
Partners to amend this Agreement as may be required to facilitate or implement
any of the following purposes:

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

            	
              to
      reflect the admission, substitution or withdrawal of Partners or the
      termination of the Partnership in accordance with this
      Agreement;

            

    

     

    
      	
              (c)  

            	
              to
      cure any ambiguity, correct or supplement any provision in this Agreement
      not inconsistent with law or with other provisions of this
      Agreement;

            

    

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

            	
              (i) to
      reflect such changes as are reasonably necessary for the General Partner
      to maintain or restore its status as a REIT or to satisfy the REIT
      Requirements; or (ii) to reflect the Transfer of all or any part of a
      Partnership Interest between the General Partner and any Qualified REIT
      Subsidiary or Taxable REIT
Subsidiary;

            

    

     

    
      	
              (f)  

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

            

    

     

    
      	
              (g)  

            	
              to
      issue additional Partnership Interests in accordance with Section 4.4.

            

    

     

    14.2.4 Notwithstanding
Sections 

14.2.2 and 
14.2.3 hereof, this Agreement
shall not be amended, and no action may be taken by the General Partner, without
the Consent of each Partner adversely affected thereby, if such amendment or
action would (i) convert a Limited Partner Interest in the Partnership into
a General Partner Interest (except as a result of the General Partner acquiring
such Partnership Interest), (ii) modify the limited liability of a Limited
Partner, (iii) alter the rights of any Partner to receive the distributions
to which such Partner is entitled, pursuant to Section

5 or Section 

13.2.1 hereof, or alter
the allocations specified in Section 

6 hereof (except, in any
case, as permitted pursuant to Sections 

4.3, 
5.5,

6.2.1 and

14.2.3 hereof),
(iv) alter or modify the Redemption rights, Redemption Cash Amount, REIT
Consideration, or Common Shares Amount as set forth in Sections 

8.5 and 
11.2
hereof (except, in any case, as permitted pursuant to Sections 

4.3, 
5.5,

6.2.1 and

14.2.3 hereof), or amend or
modify any related definitions (except, in any case, as permitted 

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

       

      pursuant
to Sections 

4.3, 
5.5,

6.2.1 and

14.2.3 hereof),
(v) permit the removal of the General Partner without its consent or
(vi) amend this Section 

14.2.4; provided, however,
that, notwithstanding anything to the contrary contained in this Agreement, the
Consent of each Partner adversely affected shall not be required for any
amendment or action that affects all Partners holding the same class or series
of Partnership Units (including the Class A Convertible Preferred Units) on a
uniform or pro rata basis (in which event such amendment shall require approval
by a majority of the Partnership Units of such class or
series).  Further, no amendment may alter the restrictions on the
General Partner’s authority set forth elsewhere in this Section 

14.2 without the Consent
specified therein.  Any such amendment or action consented to by any
Partner shall be effective as to that Partner, notwithstanding the absence of
such consent by any other Partner.

    

     

    14.2.5 Notwithstanding
anything to the contrary contained herein, neither the General Partner nor the
Limited Partners may alter or modify the Redemption rights or rights upon
liquidation as set forth in Sections 4.3.3 and 8.5, or amend or modify any
related definitions, unless approved by a majority of the Independent
Directors.

     

    14.3 Meetings
of the Partners.

     

    14.3.1 Meetings
of the Partners may be called by the General Partner and shall be called upon
the receipt by the General Partner of a written request by a Majority of the
Limited Partners.  The call shall state the nature of the business to
be transacted.  Notice of any such meeting shall be given to all
Partners not less than seven (7) days or more than sixty (60) days
prior to the date of such meeting.  Partners may vote in person or by
proxy at such meeting.  Whenever the vote or Consent of Partners is
permitted or required under this Agreement, such vote or Consent may be given at
a meeting of Partners or may be given in accordance with the procedure
prescribed in Section 

14.3.2
hereof.

     

    14.3.2 Any
action required or permitted to be taken at a meeting of the Partners may be
taken without a meeting if a written consent setting forth the action so taken
is signed by a majority of the Percentage Interests of the Partners (or such
other percentage as is expressly required by this Agreement for the action in
question), including the Percentage Interest of the General
Partner.  Such consent may be in one instrument or in several
instruments, and shall have the same force and effect as a vote of a majority of
the Percentage Interests of the Partners (or such other percentage as is
expressly required by this Agreement).  Such consent shall be filed in
the books and records of the Partnership.  An action so taken shall be
deemed to have been taken at a meeting held on the effective date so
certified.

     

    14.3.3 Each
Limited Partner may authorize any Person or Persons to act for it by proxy on
all matters in which a Limited Partner is entitled to participate, including
waiving notice of any meeting, or voting or participating at a
meeting.  Every proxy must be signed by the Limited Partner or its
attorney-in-fact.  No proxy shall be valid after the expiration of
eleven (11) months from the date thereof unless otherwise 

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

       

      provided
in the proxy (or there is receipt of a proxy authorizing a later
date).  Every proxy shall be revocable at the pleasure of the Limited
Partner executing it, such revocation to be effective upon the Partnership’s
receipt of written notice of such revocation from the Limited Partner executing
such proxy.  The use of proxies will be governed in the same manner as
in the case of corporations organized under the General Corporation Law of
Delaware (including Section 212 thereof).

    

     

    14.3.4 Each
meeting of Partners shall be conducted by the General Partner or such other
Person as the General Partner may appoint pursuant to such rules for the
conduct of the meeting as the General Partner or such other Person deems
appropriate in its sole and absolute discretion.  Without limitation,
meetings of Partners may be conducted in the same manner as meetings of the
General Partner’s shareholders and may be held at the same time as, and as part
of, the meetings of the General Partner’s shareholders.

     

    15. 
 GENERAL
PROVISIONS.

     

    15.1 Addresses
and Notice.  Any notice,
demand, request or report required or permitted to be given or made to a Partner
or Assignee under this Agreement shall be in writing and shall be deemed given
or made when delivered in person or when sent by first class United States mail
or by other means of written communication (including by telecopy, facsimile, or
commercial courier service) to the Partner or Assignee at the address set forth
in the books and records of the Partnership or such other address of which the
Partner shall notify the General Partner in writing.

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    15.11 Waiver.

     

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

     

    15.11.2 The
restrictions, conditions and other limitations on the rights and benefits of the
Limited Partners contained in this Agreement, and the duties, covenants and
other requirements of performance or notice by the Limited Partners, are for the
benefit of the Partnership and, except for an obligation to pay money to the
Partnership, may be waived or relinquished by the General Partner, in its sole
and absolute discretion, on behalf of the Partnership in one or more instances
from time to time and at any time; provided,
however,
that any such waiver or relinquishment may not be made if it would have the
effect of (i) creating liability for any Limited Partner, (ii) causing
the Partnership to cease to qualify as a limited partnership,
(iii) reducing the amount of cash otherwise distributable to the Limited
Partners, (iv) resulting in the classification of the Partnership as an
association or publicly traded partnership taxable as a corporation or
(v) violating the Securities Act, the Exchange Act or any state “blue sky”
or other securities laws; provided,
further,
that any waiver relating to compliance with the Ownership Limit or other
restrictions in the Articles of Incorporation shall be made and shall be
effective only as provided in the Articles of Incorporation.

     

    15.12 Limitation
to Preserve REIT Status.  Notwithstanding
anything else in this Agreement, to the extent that the amount paid, credited,
distributed or reimbursed by the Partnership to any REIT Partner or its
officers, directors, employees or agents, whether as a reimbursement, fee,
expense or indemnity (a “REIT
Payment”), would constitute gross income to the REIT Partner for purposes
of Code Section 856(c)(2) or Code Section 856(c)(3), then,

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

       

      notwithstanding
any other provision of this Agreement, the amount of such REIT Payments, as
selected by the General Partner in its discretion from among items of potential
distribution, reimbursement, fees, expenses and indemnities, shall be reduced
for any Fiscal Year so that the REIT Payments, as so reduced, for or with
respect to such REIT Partner shall not exceed the lesser of:

    

     

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

     

    (ii) an amount
equal to the excess, if any, of (a) twenty-four percent (24%) of the REIT
Partner’s total gross income (but excluding the amount of any REIT Payments) for
the Fiscal Year that is described in subsections (A) through (I) of
Code Section 856(c)(3) over (b) the amount of gross income
(within the meaning of Code Section 856(c)(3)) derived by the REIT Partner
from sources other than those described in subsections (A) through
(I) of Code Section 856(c)(3) (but not including the amount of
any REIT Payments);

     

    provided, however,
that REIT Payments in excess of the amounts set forth in clauses (i) and
(ii) above may be made if the General Partner, reasonably determines, on
the advice of counsel, that the receipt of such excess amounts shall not
adversely affect the REIT Partner’s ability to qualify as a REIT.  To
the extent that REIT Payments may not be made in a Fiscal Year as a consequence
of the limitations set forth in this Section 

15.12, such REIT
Payments shall carry over and shall be treated as arising in the following
Fiscal Year(s).  The purpose of the limitations contained in this
Section 

15.12 is to prevent any
REIT Partner from failing to qualify as a REIT under the Code by reason of such
REIT Partner’s share of items, including distributions, reimbursements, fees,
expenses or indemnities, receivable directly or indirectly from the Partnership,
and this Section 

15.12 shall be
interpreted and applied to effectuate such purpose.

     

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

     

    15.14 No
Third-Party Rights Created Hereby.  The provisions
of this Agreement are solely for the purpose of defining the interests of the
Partners, inter se; and no other person, firm or entity (i.e., a party who is
not a 

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

       

      signatory
hereto or a permitted successor to such signatory hereto) shall have any right,
power, title or interest by way of subrogation or otherwise, in and to the
rights, powers, title and provisions of this Agreement.  No creditor
or other third party having dealings with the Partnership (other than as
expressly set forth herein with respect to Indemnitees) shall have the right to
enforce the right or obligation of any Partner to make Capital Contributions or
loans to the Partnership or to pursue any other right or remedy hereunder or at
law or in equity.  None of the rights or obligations of the Partners
herein set forth to make Capital Contributions or loans to the Partnership shall
be deemed an asset of the Partnership for any purpose by any creditor or other
third party, nor may any such rights or obligations be sold, transferred or
assigned by the Partnership or pledged or encumbered by the Partnership to
secure any debt or other obligation of the Partnership or any of the
Partners.

    

     

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

     

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

     

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OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        76 

        
          

        

      

      
         

      

    

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

     

    GENERAL
PARTNER:

     

    
      
        	 	PACIFIC OFFICE PROPERTIES
      TRUST, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Jay
      H. Shidler	 
	 	 	Jay
      H. Shidler	 
	 	 	President
      and Chief Executive Officer	 
	 	 	 	 

      

    

     

     

    
      
        
          S-1

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit A

     

    
      	 
      	 	
              Common
      Units

            	 	 	
              Class
      A Convertible

              Preferred
      Units

            	 	 	
              Restricted

              Common
      Units

            	 
	
              Name
      and Address

            	 	
              (Percentage)

            	 	 	
              (Percentage)

            	 	 	
              (Percentage)

            	 
	
              GENERAL
      PARTNER:

            	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 
	
              Pacific
      Office Properties Trust, Inc.

            	 	 	3,850,520	 	 	 	0	 	 	 	52,630	 
	
              233
      Wilshire Blvd., Suite 310

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              Santa
      Monica, CA 90401

            	 	 	21.22	%	 	 	0	%	 	 	100	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              LIMITED
      PARTNERS:

            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              POP
      Venture, LLC

            	 	 	13,576,165	1	 	 	4,545,300	 	 	 	0	 
	
              841
      Bishop Street

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              Honolulu,
      HI 96813

            	 	 	74.80	%	 	 	100	%	 	 	0	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              Robert
      M. Irish

            	 	 	58,697	2	 	 	0	 	 	 	0	 
	
              116
      Spinnaker Court

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              Del
      Mar, CA 92014

            	 	 	0.32	%	 	 	0	%	 	 	0	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              James
      M. Saivar

            	 	 	51,674	2	 	 	0	 	 	 	0	 
	
              11260
      El Camino Real #200

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              San
      Diego, CA 92130

            	 	 	0.28	%	 	 	0	%	 	 	0	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              Robert
      F. Buie and Pamela I. Buie Family

            	 	 	414,468	2	 	 	0	 	 	 	0	 
	
              Trust

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              P.O.
      Box 8365

            	 	 	2.28	%	 	 	0	%	 	 	0	%
	
              Rancho
      Santa Fe, CA 92067

            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              John
      B. Campbell and Elvina Campbell,

            	 	 	198,263	2	 	 	0	 	 	 	0	 
	
              Husband
      and Wife

            	 	 	 	 	 	 	 	 	 	 	 	 
	
              P.O.
      Box 9064

            	 	 	1.09	%	 	 	0	%	 	 	0	%
	
              Rancho
      Santa Fe, CA 92067

            	 	 	 	 	 	 	 	 	 	 	 	 

    

    

     

    

      

    

      
      1 Class
B Common Units.

    

      
      2 Class
A Common Units.

    

    
      
        
          A-1

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

     

    NOTICE
OF REDEMPTION

     

    To:           Pacific
Office Properties Trust, Inc.

    233
Wilshire Boulevard, Suite 310

    Santa
Monica, CA  90401

    

     

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

     

    (a)           undertakes
(i) to surrender such Common Units and any certificate therefor at the
closing of the Redemption and (ii) to furnish to the General Partner, prior
to the Specified Redemption Date, the documentation, instruments and information
required under Section 8.5.9 of the
Agreement;

     

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

     

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

     

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

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      undersigned Limited Partner has, and at the closing of the Redemption will
      have, the full right, power and authority to tender and surrender such
      Common Units as provided herein,
and

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    (d)           acknowledges
that he will continue to own such Common Units until and unless either
(1) such Common Units are acquired by the General Partner pursuant to Section 8.5.6 of the
Agreement or (2) such redemption transaction closes.

     

    
      
        
          B-1

           

        

         

      

      
         

        
          

        

      

      
         

      

    

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

     

    Dated:

     

     

     

    
      	
              Name
      of Limited Partner:

            	 
      
	 
      
	 
      
	
               (Signature
      of Limited Partner or Assignee)

            
	 
      	 
      
	 
      
	
               (Street
      Address)

            
	 
      	 
      
	 
      
	
               (City)             
      (State)             
      (Zip Code)

            
	 
      	 
      
	
               Signature
      Guaranteed by:

            	 
      
	 
      	 
      
	 
      	 
      
	
              Issue
      Check Payable to:

            	 
      
	 
      
	
              Please
      insert social security or identifying number:

            
	 
      

    

    

     

    
      
        
          B-2

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
C

     

    City
Square

     

    
      	
              1.  

            	
               Agreement
      Regarding Consent to Transfer.

            

    

     

    
      	
              2.  

            	
              Modification
      of Mezzanine Loan Agreement, Note and Other Loan
  Documents.

            

    

     

    
      	
              3.  

            	
              Assignment
      of membership interests of STIRR N. Central, LLC and First Amendment to
      Operating Agreement.

            

    

     

    First Insurance Center
(leasehold):

     

    
      	
              1.  

            	
              Consent
      and Ratification Agreement.

            

    

     

    
      	
              2.  

            	
              Confirmation
      of Guaranty and Environmental
Indemnity.

            

    

     

    
      	
              3.  

            	
              Certification.

            

    

     

    
      	
              4.  

            	
              Ground
      Lessor Estoppel and Agreement.

            

    

     

    
      	
              5.  

            	
              Assignment
      of membership interests of Pacific Office Properties Trust (Ward Avenue),
      LLC and First Amendment to Operating
Agreement.

            

    

     

    First Insurance Center (fee
loan):

     

    
      	
              1.  

            	
              Reaffirmation,
      Consent to Transfer and Addition of Indemnitor among 101 Park Avenue (1100
      Ward), LLC, a Delaware limited liability company (“FI Fee Borrower”), James C.
      Reynolds, Reynolds Partners, a Hawaii limited partnership, POP LP and
      Wells Fargo Bank, N.A., as Trustee for the Registered Holders of GS
      Mortgage Securities Corporation II, Commercial Mortgage Pass-Through
      Certificates, Series 2006-GG6 (“FI Fee Lender”).

            

    

     

    
      	
              2.  

            	
               Post
      Closing Agreement made by FI Fee Borrower and POP LP for the benefit of FI
      Fee Lender.

            

    

     

    
      	
              3.  

            	
              Certificate
      of Borrower made by FI Fee
Borrower.

            

    

     

    
      	
              4.  

            	
              Assignment
      of membership interests and Amendment to Operating Agreement of 101 Park
      Avenue (1100 Ward), LLC.

            

    

     

    Pacific Business News
Building:

     

    
      	
              1.  

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

            

    

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    
      	
              2.  

            	
               Post
      Closing Agreement made by PNB Borrower and POP LP for the benefit of PBN
      Lender.

            

    

     

    
      	
              3.  

            	
              Certificate
      of Borrower made by PBN Borrower.

            

    

     

    
      	
              4.  

            	
              Assignment
      of membership interests and Amendment to Operating Agreement of PBN
      Office, LLC.

            

    

     

    
      	
               
      

            	
              Seville:

            

    

     

    
      	
              1.  

            	
              Acknowledgement
      and Reaffirmation Agreement between Pacific Office Properties/Seville
      Plaza, LLC, Seville HAB, LLC and LaSalle Bank National Association, as
      Trustee for Banc of America Commercial Mortgage Inc., Commercial Mortgage
      Pass-Through Certificates.

            

    

     

    
      	
              2.  

            	
              Borrower's
      Certificate for Pacific Office Properties/Seville Plaza,
    LLC.

            

    

     

    
      	
              3.  

            	
              Borrower's
      Certificate for Seville HAB, LLC.

            

    

     

    
      	
              4.  

            	
              Assignment
      of membership interests of Pacific Office Properties/Seville Mezzanine
      Partners, LLC and Second Amendment to Operating
  Agreement.

            

    

     

    Waterfront:

     

    
      	
              1.  

            	
              Pacific
      Office Properties, L.P. Officer’s
Certificate

            

    

     

    
      	
              2.  

            	
              Waterfront
      Partners OP, LLC Officer’s
Certificate

            

    

     

    
      	
              3.  

            	
              Omnibus
      Amendment to Loan Documents by and between Waterfront A, LLC, Waterfront
      B, LLC, Waterfront C, LLC, Waterfront D, LLC, and Waterfront E, LLC,
      tenants-in-common, as Borrowers, and KeyCorp. Real Estate Capital Markets,
      Inc. d/b/a KeyBank Real Estate Capital, as authorized agent for Wells
      Fargo Bank Minnesota, N.A., as trustee in trust for the registered Holders
      of Credit Suisse First Boston Mortgage Securities Corp., Commercial
      Mortgage Pass-Through Certificates, Series
  2006-C5.

            

    

     

    
      	
              4.  

            	
              Letter
      Agreement by and between WFP Mezzanine A, LLC, WFP Mezzanine B, LLC, WFP
      Mezzanine C, LLC, WFP Mezzanine D, LLC, and WFP Mezzanine E, LLC,
      Waterfront Partners OP, LLC and Concord Real Estate CDO 2006-1,
      Ltd.

            

    

     

    
      	
              5.  

            	
              Letter
      Agreement between KeyCorp Real Estate Markets, Inc. d/b/a KeyBank Real
      Estate Capital, as authorized agent for Wells Fargo Bank Minnesota, N.A.,
      as trustee, in trust for the registered Holders of Credit Suisse First
      Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through
      Certificates, Series 2006-C5 and Waterfront A, LLC, Waterfront B, LLC,
      Waterfront C, LLC, Waterfront D, LLC, and Waterfront E,
    LLC.

            

    

     

    
      	
               
      

            	
              City
      Center:

            

    

     

    
      	
              1.  

            	
              Consent
      and Agreement.

            

    

     

    
      	
               
      

            	
              Davies:

            

    

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    
      	
              1.  

            	
              Letter
      from Wachovia Bank, National Association to the Shidler
    Group

            

    

     

    
      	
               
      

            	
              Pan
      Am:

            

    

     

    
      	
              1.  

            	
              Letter
      from Wachovia Bank, National Association to the Shidler
    Group

            

    

     

    
      	
              2.  

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

            

    

     

    
      	
               
      

            	
              Sorrento:

            

    

     

    
      	
               
      

            	
              Nothing

            

    

     

    

     

    
      
        
          C-3

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
D

     

    PARTNERSHIP
UNIT DESIGNATION OF THE

     

    SENIOR
COMMON UNITS

     

    OF
PACIFIC OFFICE PROPERTIES, L.P.

     

    

     

    1. Designation
and Number.  A class of Senior Units is hereby designated as
“Senior Common Units,” and the number of Senior Units constituting such class
shall be 40,000,000.

     

    2. Definitions.  For purposes of
the Senior Common Units, the following terms shall have the meanings indicated
in this Section
2, and capitalized terms used and not otherwise defined herein shall have
the meanings assigned thereto in the Agreement:

     

    “Agreement” shall mean the
Second Amended and Restated Agreement of Limited Partnership of the Partnership,
as it may be amended, supplemented, restated or otherwise modified from time to
time.

     

    “Distribution Payment Date”
means any date on which cash dividends are paid on the Senior Common
Stock.

     

    “Senior Common Stock” means the
Senior Common Stock, par value $0.0001 per share, of the General
Partner.

     

    “Senior Common Unit” means a
Senior Unit with the designations, preferences and relative, participating,
optional or other special rights, powers and duties as are set forth in this
Exhibit D.  It
is the intention of the General Partner that each Senior Common Unit shall be
substantially the economic equivalent of one share of Senior Common
Stock.

     

    “Senior Common Unit Liquidation
Preference Amount” means $10.00 per Senior Common Unit.  Such
amount shall be adjusted, as determined to be equitable by the General Partner
in its sole discretion, in the event of a dividend, distribution, subdivision,
combination or similar recapitalization affecting the Senior Common
Units.

     

    3. Rank.  The
Senior Common Units will, with respect to distribution rights and rights upon
liquidation, dissolution or winding up of the Partnership, rank (a) senior to
the Common Units, the Class A Convertible Preferred Units, and any class or
series of Partnership Units the terms of which specifically provide that such
class or series rank junior to the Senior Common Units with respect to
distribution rights or rights upon liquidation, dissolution or winding up of the
Partnership; (b) junior to any class or series of Partnership Units to the
extent that the terms of such class or series of Partnership Units specifically
provide that such class or series of Partnership Units ranks senior to the
Senior Common Units with respect to distribution rights or rights upon
liquidation, dissolution or winding up of the Partnership; (c) on a parity with
any other class or series of Partnership Units issued by the Partnership, other
than those referred to in clauses (a) and (b) hereof; and (d) junior to all
existing and future indebtedness of the Partnership.

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    4. Distributions.  On
every Distribution Payment Date, the General Partner, as holder of the Senior
Common Units, shall be entitled to receive distributions payable in cash in an
amount per Senior Common Unit equal to the per share dividend payable on the
Senior Common Stock on such Distribution Payment Date.  The General
Partner, as holder of the Senior Common Units, shall not be entitled to any
distributions on the Senior Common Units, whether payable in cash, property or
stock, except as provided herein.

     

    5. Liquidation.

     

    (a)           In
the event of any voluntary or involuntary liquidation, dissolution, or winding
up of the Partnership, the General Partner, as holder of the Senior Common
Units, is entitled to receive out of the assets of the Partnership available for
distribution to Partners, before any distribution of assets is made to holders
of Common Units, the Class A Convertible Preferred Units, or to any class or
series of Partnership Units ranking junior to the Senior Common Units upon
liquidation, dissolution or winding up of the Partnership, the Senior Common
Unit Liquidation Preference Amount, plus an amount per Senior Common Unit equal
to all accumulated and unpaid dividends (whether or not earned or declared) on
one share of Senior Common Stock for the then current and all past dividend
periods. If, upon any voluntary or involuntary liquidation, dissolution, or
winding up of the Partnership, the amounts payable with respect to the Senior
Common Units and any other class or series of Partnership Units ranking as to
any such distribution on a parity with the Senior Common Units are not paid in
full, the General Partner, as holder of the Senior Common Units, and the holders
of all such other classes or series of Partnership Units will share ratably in
any such distribution of assets of the Partnership in proportion to the full
respective preferential amounts to which they are entitled. After payment of the
full amount of the liquidating distribution to which it is entitled, the General
Partner, as holder of the Senior Common Units, will not be entitled to any
further participation in any distribution of assets by the Partnership in its
capacity as holder of the Senior Common Units.

     

    (b)           For
purposes of liquidation rights, (i) a consolidation or merger of the
Partnership with one or more entities, or (ii) a sale or transfer of all or
substantially all of the Partnership’s assets shall not be deemed to be a
liquidation, dissolution or winding up, voluntary or involuntary, of the
Partnership.

     

    6. Conversion.  At
any time that a holder of shares of Senior Common Stock converts such shares
into Common Shares, the General Partner shall convert that portion of its Senior
Common Units equal to the number of shares of Senior Common Stock that are so
converted into Common Units.  At the effective time of the conversion,
the Partnership shall cancel such number of Senior Common Units and issue to the
General Partner the number of Common Units equal to the number of Common Shares
issued upon such conversion of the Senior Common Stock.  In addition,
upon such conversion, the General Partner shall be entitled to receive an amount
in cash equal to all accrued and unpaid dividends (whether or not earned or
declared) to, but excluding, the date of conversion on the shares of Senior
Common Stock so converted, plus the amount of all cash payable by the General
Partner in lieu of the issuance of any fractional Common Share in connection
with the conversion of such shares of Senior Common Stock.

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

    7. Redemption.  In the event that
the General Partner redeems or repurchases any shares of Senior Common Stock,
the Partnership shall concurrently redeem an equivalent number of Senior Common
Units for consideration equal to the consideration payable by the General
Partner upon such redemption or repurchase.  Any Senior Common Units
so redeemed may be reissued to the General Partner at such time as the General
Partner re-issues a corresponding number of shares of Senior Common Stock so
redeemed or repurchased, in exchange for the contribution by the General Partner
to the Partnership of the proceeds of such reissuance.

     

    8. Restriction
on Ownership.  The Senior Common
Units shall be owned and held solely by the General Partner.

     

    9. General.

     

    (a)           The
General Partner shall amend Exhibit A to the Agreement
from time to time to the extent necessary to reflect accurately the issuance of,
and subsequent conversion, redemption, or any other event having an effect on
the ownership of Senior Common Units.

     

    (b)           The
rights of the General Partner, in its capacity as the holder of the Senior
Common Units, are in addition to and not in limitation of any other rights or
authority of the General Partner in any other capacity under the Agreement or
applicable law.  In addition, nothing contained in this Exhibit D shall be deemed to
limit or otherwise restrict the authority of the General Partner under the
Agreement, other than in its capacity as the holder of the Senior Common
Units.

     

    
      
        
          D-3exh10_2.htm

    Exhibit 10.2

      

       

      AMENDMENT TO LOAN
DOCUMENTS

       

      THIS
AMENDMENT TO LOAN DOCUMENTS (“Amendment”), dated December 31, 2009, but
effective as of December 31, 2009, by and between FIRST HAWAIIAN BANK,
a Hawaii
corporation (the “Lender”), and PACIFIC OFFICE PROPERTIES, L.P., a Delaware
limited partnership (the “Borrower”); and SHIDLER EQUITIES L.P., a Hawaii
limited partnership (the “Pledgor”);

       

      W I T N E S S E T
H  T H A T:

       

      WHEREAS,
the Lender and the Borrower entered into that certain credit agreement (the
“Credit Agreement”), dated September 2, 2009, relating to a credit facility (the
“Credit Facility”)
in the principal amount of $10,000,000.00 made by the Lender to the Borrower;
and

       

      WHEREAS,
in connection therewith, the Borrower and the Lender executed certain “Loan
Documents”, as defined in the Credit Agreement; and

       

      WHEREAS,
the Borrower has requested the Lender to increase the principal amount of the
Credit Facility to $15,000,000.00; and

       

      WHEREAS,
the Lender is willing to comply with such request, upon and subject to the terms
and conditions hereinafter set forth; and

       

      NOW,
THEREFORE, the Lender and the Borrower hereby agree as follows:

       

      1. Definitions. All
capitalized terms used herein, unless otherwise defined herein, shall have the
same meanings as those ascribed to them in the Credit Agreement.

       

      2.  Representations and
Warranties. As an essential inducement to the Lender to execute this
Amendment, the Borrower hereby repeats, reaffirms and incorporates herein by
reference all of the representations and warranties contained in Section 3 of
the Credit Agreement.

       

      3. Amendment of Loan
Documents. The Loan Documents are hereby amended as follows:

       

      (a) The
“Maximum Commitment” of the Credit Facility, as that term is used in
that
certain Note dated September 2, 2009, shall be FIFTEEN MILLION AND NO/100
DOLLARS
($15,000,000.00).

       

      (b) The
Pledgor shall increase the Pledgor’s certificate of deposit, described in
that
certain Pledge and Security Agreement dated September 2, 2009 (the “Pledge”) to
FIFTEEN MILLION
AND NO/100 DOLLARS ($15,000,000.00).

      
        
          
            
              	
                                                                                         

                    

            

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      (c) As used
in the Credit Agreement and the other Loan Documents, the term “Note” shall mean
the promissory note described in Section 1 of the Credit Agreement, as amended
by this Amendment.

       

      (d) As used
in the Credit Agreement and the other Loan Documents, the term “Pledge and
Security Agreement” shall mean the pledge and security agreement described in
Section 1 of the Credit Agreement, as amended by this Amendment to increase the
certificate of deposit pledged thereunder to $15,000,000.00.

       

      4.          Delivery of Related
Documents. The Borrower shall deliver to the Lender on or before
December 31, 2009  the following documents, all of which shall be in
form and substance satisfactory to the Lender and its counsel:

       

      (a) Certificate
of Secretary of Pacific Office Properties Trust, Inc.

       

      (b) Certificate
of Secretary of Shidler Equities Corp.

       

          
5.  Conformance. The Loan
Documents are hereby amended to conform with this Amendment, but in all other
respects such provisions are to be and continue in full force and
effect.

       

       6.
Continuance of
Security. The performance of the obligations of the Borrower under the
Loan Documents, as herein amended, shall be fully secured by and entitled to the
benefits of all of the security documents agreements described in the Credit
Agreement and the other Loan Documents, and any modifications, extensions,
renewals or replacements thereof.

       

       7.
Continuing
Pledge. Pledgor hereby consents to the foregoing amendments, reaffirms
its obligations under the Pledge, as amended by this Amendment, and covenants
that the execution and delivery of this Amendment shall not in any way affect,
impair or diminish its obligations under the Pledge, except for the increase of
the principal amount of the certificate of deposit pledged thereunder to
$15,000,000.00.

       

       8.
No Offsets. As
of the date hereof, the Borrower has no claims, defenses or offsets against the
Lender or against the Borrower’s obligations under the “Loan Documents”, as
herein amended, whether in connection with the negotiations for or closing of
the Credit Facility, of this Amendment, or otherwise, and if any such claims,
defenses or offsets exist, they are hereby irrevocably waived and released. As
of the date hereof, the Pledgor has no claims, defenses or offsets against the
Lender or against the Pledgor’s obligations under the Pledge, whether in
connection with the negotiations for or closing of the Credit Facility, of this
Amendment, or otherwise, and if any such claims, defenses or offsets exist, they
are hereby irrevocably waived and released.

       

       9.
No Waiver. This
Amendment is made on the express condition that nothing herein contained shall
in any way be construed as affecting, impairing or waiving any rights of the
Lender under any of the Loan Documents, as herein amended.

      
        
          
            
              	
                                                                                        

                    

            

            

          

          2 

        

        
           

          
            

          

        

        
           

        

      

      

       

      10.  Entire Agreement.
This Amendment incorporates all of the agreements between the parties relating
to the amendment of the Loan Documents and supersedes all other prior or
concurrent oral or written letters, agreements or understandings relating to
such amendment. This Amendment shall constitute and be deemed amendments to any
inconsistent provisions of any commitment letter issued by the Lender to the
Borrower in connection with the amendment to the Loan Documents, and, upon the
execution of this Amendment, any such commitment letter shall be deemed
superceded by this Amendment and cancelled.

       

      11.  Headings. The
headings of paragraphs and subparagraphs herein are inserted only for
convenience and reference, and shall in no way define, limit or describe the
scope or intent of any provisions of this Amendment.

       

      12.  Governing Law;
Severability. This Amendment is executed and delivered, and shall be
construed and enforced, in accordance with and governed by the laws of the State
of Hawaii. If any provision of this Amendment is held to be invalid or
unenforceable, the validity or enforceability of the other provisions of this
Amendment shall remain unaffected.

       

      13.  Submission to Jurisdiction;
Waiver of Jury Trial. The Borrower hereby irrevocably and unconditionally
submits, but only for the purposes of any action or proceeding which the Lender
may bring to enforce any of the Loan Documents, as amended herein, to the
jurisdiction of the courts of the State of Hawaii and the United States District
Court for the District of Hawaii. Such submission to such jurisdiction shall not
prevent the Lender from commencing any such action or proceeding in any other
court having jurisdiction. The Borrower hereby knowingly, voluntarily and
intentionally waives any right it may have to a jury trial in any legal
proceeding which may be hereinafter instituted by the Lender or the Borrower to
assert any of their respective claims arising out of or relating to any of the
Loan Documents or any other agreement, instrument or document contemplated
thereby. In such event, the Borrower, at the request of the Lender, shall cause
its attorney of record to effectuate such waiver in compliance with the Hawaii
Rules of Civil Procedure, as the same may be amended from time to
time.

       

      14.  Counterparts. This
Amendment may be executed in two or more counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same
instrument, and in making proof of this Amendment, it shall not be necessary to
produce or account for more than one such counterpart.

       

      15.  Expenses. The
Borrower shall pay all expenses incurred by the Lender in negotiations for and
documentation of this Amendment and the satisfaction of the conditions thereof,
including, but not limited to, fees and expenses of legal counsel for the Lender
(and each participant in, or purchaser of, the Credit Facility), and any other
costs incurred by the Lender in connection with any of the matters described in
this Amendment.

       

      16.  Binding Effect. This
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns; provided, however, that Borrower shall not
assign this Amendment or any of the rights, duties or obligations of Borrower
hereunder without the prior written consent of Lender.

      
        
          
            
              	
                                                                                      

                    

            

            

          

          3 

        

        
           

          
            

          

        

        
           

        

      

      

       

      17. Compliance with OFAC
Restrictions. The Lender and the Borrower are obligated to comply with
the laws and regulations administered by the United States Office of Foreign
Assets Control ("OFAC"), referred to as "OFAC Restrictions". In order to comply
with OFAC Restrictions, the Lender may be required to temporarily suspend
processing a transaction, which may result in delayed availability of funds, or
may be prohibited from closing a transaction altogether. The Borrower agrees to
the foregoing, and further agrees that if the Lender is required by applicable
OFAC Restrictions to suspend processing a transaction, or is prohibited from by
applicable OFAC Restrictions from closing a transaction, the Lender will not be
liable for any damages of any kind or nature (including, without limitation,
actual, consequential, special, incidental, punitive, or indirect damages,
whether arising out of claims for "lender liability" or any other cause), which
the Borrower may suffer or incur in connection with such suspension of, or
failure to close, a transaction.

      
        
          
            
              	
                                                                                        

                    

            

            

          

           

        

        
           4

          
            

          

        

        
           

        

      

      

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Amendment the day and
year first above written.

       

      FIRST
HAWAIIAN BANK

      

      
        	
                 
      

              	
                By

              	 /s/ Paula C.H. Chang

      

      
        	
                 
      

              	
                 Its
      Vice President

              

      

       

        Lender

       

      PACIFIC
OFFICE PROPERTIES, L.P. a Delaware limited partnership

       

      By
Pacific Office Properties Trust, Inc. a Maryland corporation

       

      Its
General Partner

      

      
        	
                 
      

              	
                By

              	 /s/ Lawrence J Taff

      

      
        	
                 
      

              	
                 Its
      Chief Financial Officer

              

      

       

               Borrower

       

      SHIDLER
EQUITIES L.P.

       
 

            By
Shidler Equities Corp.

                  Its
General Partner

      

      
        	
                 
      

              	
                By

              	 /s/ Lawrence J. Taff

      

      
        	
                 
      

              	
                Its
      Secretary

              

      

       

      “Pledgor”

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