Document:

ex10_12.htm

Exhibit 10.12

 

GENERAL MARITIME CORPORATION

 

2012 EQUITY INCENTIVE PLAN

 

ARTICLE I

PURPOSE

 

1.1           Purpose of the Plan.  The Plan shall be known as the General Maritime Corporation 2012 Equity Incentive Plan (the “Plan”).  The Plan is intended to further the growth and profitability of the Company by increasing incentives and encouraging Share ownership on the part of the Employees and Independent Directors of the General Maritime Corporation (the “Company”) and its Subsidiaries.  The Plan is intended to permit the grant of Awards that constitute Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and Other Stock Awards and such other forms as the Committee in its discretion deems appropriate, including any combination of the above.

 

1.2           Effective Date. The Plan has been adopted by the Board on May 17, 2012 (the “Effective Date”).

 

ARTICLE II

DEFINITIONS

 

The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context:

 

“Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) directly or indirectly controlled by the Company.

 

“Award” means, individually or collectively, a grant under the Plan of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and Other Stock Awards, and such other forms as the Committee in its discretion deems appropriate.

 

“Award Agreement” means the written agreement setting forth the terms and conditions applicable to an Award.

 

“Base Price” means the price at which a SAR may be exercised with respect to a Share.

 

“Board” means the Company’s Board of Directors, as constituted from time to time.

 

“Cause” means with respect to a Participant’s Termination from and after the date hereof, the following: (a) in the case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but it does not define “cause” (or words of like import)), termination due to: (i) the commission by a Participant of any indictable offense which carries a maximum penalty of imprisonment; (ii) perpetration by a Participant of an illegal act, or fraud which could cause significant economic injury to the Company; (iii) continuing failure by the Participant to perform the Participant’s duties in any material respect, provided that the Participant is given notice and an opportunity to effectuate a cure as determined by the Committee; or (iv) a Participant’s willful misconduct with regard to the Company that could have a material adverse effect on the Company; or (b) in the case where there is an employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award that defines “cause” (or words of like import), “cause” as defined under such agreement.  With respect to a Participant’s Termination of Directorship, “cause” means an act or failure to act that constitutes cause for removal of a director under applicable law.

 

  

 

  

“Change in Control” means (x) any transaction or group of related transactions (whether a merger, consolidation, sale or Transfer of Equity Securities or otherwise) pursuant to which any Person (in any case, excluding the Company, any Subsidiary of the Company, Oaktree, or any Affiliate of any of the foregoing) or group of such Persons acting together pursuant to which such Person or group of Persons acquires a majority of the voting power represented by the outstanding Equity Securities,  (y) any transaction (whether a merger, consolidation, sale or Transfer of Equity Securities or otherwise) pursuant to which Oaktree no longer owns, directly or indirectly, at least 20% of voting power represented by the outstanding Equity Securities or (z) any disposition of all or substantially all of the assets of the Company  and its Subsidiaries, determined on a consolidated basis, to any Person or Persons (in any case, excluding the Company, any Subsidiary of the Company, Oaktree, or any Affiliate of any of the foregoing).

 

“Change in Control Price” means the highest price per share of Shares paid in any transaction related to a Change in Control of the Company.

 

 “Code” means the Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation or other guidance promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 

“Committee” means at least one committee, as described in Article III, appointed by the Board from time to time to administer the Plan and to perform the functions set forth herein; provided that if no such committee exists, the “Committee” means the Board.

 

“Company” shall have the meaning set forth in Article I hereof.

 

“Corporate Event” shall have the meaning set forth in Section 4.3 hereof.

 

“Disability” means with respect to a Participant’s Termination from and after the date hereof, the following: (a) in the case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but it does not define “disability” (or words of like import)), termination due to: (i) a permanent and total disability as defined in Section 22(e)(3) of the Code; or (b) in the case where there is an employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award that defines “disability” (or words of like import), “disability” as defined under such agreement; provided that for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.  A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability.

 

  

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“Effective Date” shall have the meaning set forth in Article I hereof.

 

“Eligible Individual” means any of the following individuals who is designated by the Committee in its discretion as eligible to receive Awards subject to the conditions set forth herein:  (a) any Independent Director or Employee, or (b) any individual to whom the Company, or a Subsidiary of the Company, has extended a formal offer of employment, so long as the grant of any Award shall not become effective until the individual commences employment.

 

“Employee” means an employee of the Company or a Subsidiary.  Notwithstanding anything to the contrary contained herein, the Committee may grant Awards to an individual who has been extended an offer of employment by the Company or a Subsidiary; provided that any such Award shall be subject to forfeiture if such individual does not commence employment by a date established by the Committee.

 

“Equity Securities” means, with respect to the Company, (i) the Shares and any other capital stock of the Company from time to time outstanding, (ii) obligations, evidences of indebtedness or other securities or interests, in each case that are convertible or exchangeable into Shares or any other capital stock of the Company and (iii) warrants, options or other rights to purchase or otherwise acquire Shares or any other capital stock of the Company.

 

“Exercise Price” means the price at which a Share subject to an Option may be purchased upon the exercise of the Option.

 

“Fair Market Value” means, except as otherwise specified in a particular Award Agreement, (a) while the Shares are readily traded on an established national or regional securities exchange, the closing transaction price of such a Share as reported by the principal exchange on which such Shares are traded on the date as of which such value is being determined or, if there was no reported transaction for such date, the opening transaction price as reported by the exchange for the first trading date following the date by which such value is being determined on the next preceding date for which a transaction was reported, (b) if the Shares are not readily traded on an established national or regional securities exchange, the average of the bid and ask prices for such a Share on the date as of which such value is being determined, where quoted for such Shares, or (c) if Fair Market Value cannot be determined under clause (a) or clause (b) above, or if the Board or the Committee determines, in its sole discretion, that the Shares are too thinly traded for Fair Market Value to be determined pursuant to clause (a) or clause (b), the value as determined by the Board, or the Committee in its sole discretion, on a good faith basis taking into account the requirements of Section 409A of the Code.  In determining Fair Market Value, there shall be no discount for lack of marketability and minority interest.

 

“Grant Date” means, as determined by the Committee, (i) the date as of which the Committee approves the grant of an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award, or (iii) such other date as may be specified by the Committee.

 

  

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“Independent Director” means a director or a member of the Board of the Company or any Subsidiary who is not an Employee or an employee of a controlling shareholder of the Company.

 

“Oaktree” means OCM Marine Holdings TP, L.P., a Cayman Islands exempted limited partnership and OCM Marine Investments CTB, Ltd., a Cayman Islands exempt company.

 

“Option” or “Stock Option” means an option to purchase Shares granted pursuant to Article VI.

 

“Other Stock-Based Award” means an Award under Article IX of this Plan that is valued in whole or in part by reference to, or is payable in or otherwise based on, Shares including, without limitation, an Award valued by reference to an Affiliate.

 

“Participant” means an Employee or Independent Director with respect to whom an Award has been granted and remains outstanding.

 

“Period of Restriction” means the period during which Awards are subject to forfeiture and/or restrictions on transferability.

 

“Permitted Transferee” means, except as otherwise provided in an Award Agreement, (i) with respect to any Participant who is a natural person, such Participant’s spouse or lineal descendants (whether natural or adopted) and any trust that is and at all times remains solely for the benefit of the Participant and/or the Participant’s spouse and/or lineal descendants, and (ii) with respect to any Participant which is an entity, (a) any of such Participant’s wholly owned Subsidiaries and parent companies that wholly own such Participant and (b) equityholders of such Participant pursuant to a distribution in accordance with such Participant’s governing documents.

 

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

 

“Plan” shall have the meaning set forth in Article I hereof.

 

“Restricted Stock” means a Stock Award granted pursuant to Article VII under which the Shares are subject to forfeiture upon such terms and conditions as specified in the relevant Award Agreement.

 

“Restricted Stock Unit” or “RSU” means a Stock Award granted pursuant to Article VII subject to a period or periods of time after which the Participant will receive Shares if the conditions contained in such Stock Award have been met.

 

“Securities Act” means the Securities Act of 1933, as amended and all rules and regulations promulgated thereunder.  Any reference to any section of the Securities Act shall also be a reference to any successor provision.

 

“Share” means the Company’s common shares, or any security issued by the Company or any successor in exchange or in substitution therefor.

 

  

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“Shareholders’ Agreement” means the Shareholders’ Agreement dated May 17, 2012, by and among Oaktree, the Company and certain other persons, as amended from time to time in accordance with its terms.

 

“Stock Appreciation Right” or “SAR” means an Award granted pursuant to Article VIII, granted alone or in tandem with a related Option which is designated by the Committee as a SAR.

 

“Stock Award” means an Award of Restricted Stock or an RSU pursuant to Article VII.

 

“Subsidiary” means, with respect to any person, any corporation, limited liability company, partnership, association or other business entity of which (a) if a corporation, a majority of the total voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that person or one or more of the other Subsidiaries of that person or a combination thereof, or (b) if a limited liability company, partnership, association or other business entity, a majority of the limited liability company, partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any person or one or more Subsidiaries of that person or a combination thereof.  For purposes hereof, person or persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such person or persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing director or general partner of such limited liability company, partnership, association or other business entity.

 

“Termination” means a Termination of Directorship or Termination of Employment, as applicable.  Notwithstanding the foregoing, for Awards that are subject to Section 409A of the Code and that are settled or distributed upon a “Termination,” the foregoing definition shall only apply to the extent the applicable event would also constitute a “separation from service” under Code Section 409A.

 

“Termination of Directorship” means that the Independent Director has ceased to be a director of the Company; except that if a Independent Director becomes an Eligible Employee upon the termination of his or her directorship, his or her ceasing to be a director of the Company shall not be treated as a Termination of Directorship unless and until the Participant has a Termination of Employment.  Notwithstanding the foregoing, the Committee may otherwise define Termination of Directorship in the Award Agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Directorship thereafter, provided that any such change to the definition of the term “Termination of Directorship” does not subject the applicable Award to Section 409A of the Code.

 

“Termination of Employment” means: (a) a termination of employment (for reasons other than a military or personal leave of absence granted by the Company) of a Participant from the Company, its Subsidiaries and its Affiliates; or (b) when an entity which is employing a Participant ceases to be a Subsidiary or an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company, another Subsidiary or another Affiliate at the time the entity ceases to be a Subsidiary or an Affiliate.  In the event that an Eligible Employee becomes an Independent Director upon the termination of his or her employment, unless otherwise determined by the Committee, in its sole discretion, no Termination of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee or an Independent Director.  Notwithstanding the foregoing, the Committee may otherwise define Termination of Employment in the Award Agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Employment thereafter, provided that any such change to the definition of the term “Termination of Employment” does not subject the applicable Award to Section 409A of the Code.

 

  

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“Transfer” means: (a) when used as a noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or other disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary (including by operation of law), and (b) when used as a verb, to directly or indirectly transfer, sell, assign, pledge, encumber, charge, hypothecate or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value and whether voluntarily or involuntarily (including by operation of law).  “Transferred” and “Transferable” shall have a correlative meaning.

 

ARTICLE III

ADMINISTRATION

 

3.1           The Committee.  The Plan shall be administered by the Committee.  The Committee shall consist of one (1) or more members of the Board and may consist of the entire Board.

 

3.2           Authority and Action of the Committee.  It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions.  The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the full and final authority in its discretion to (a) determine which Eligible Individuals shall be eligible to receive Awards and to grant Awards, (b) prescribe the form, amount, timing and other terms and conditions of each Award, (c) interpret the Plan and the Award Agreements (and any other instrument relating to the Plan), (d) adopt such procedures as it deems necessary or appropriate to permit participation in the Plan by Eligible Individuals, (e) adopt such rules as it deems necessary or appropriate for the administration, interpretation and application of the Plan, (f) interpret, amend or revoke any such procedures or rules, (g) correct any technical defect(s) or technical omission(s), or reconcile any technical inconsistency(ies), in the Plan and/or any Award Agreement, (h) accelerate the vesting of any Award, (i) extend the period during which an Option or SAR may be exercisable, and (j) make all other decisions and determinations that may be required pursuant to the Plan and/or any Award Agreement or as the Committee deems necessary or advisable to administer the Plan.

 

The acts of the Committee shall be either (i) acts of a majority of the members of the Committee present at any meeting at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting.  A majority of the Committee shall constitute a quorum.  The Committee’s good faith determinations under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly situated.  Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any Employee of the Company or any of its Subsidiaries or Affiliates, the Company’s independent certified public accountants or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

The Company shall effect the granting of Awards under the Plan, in accordance with the determinations made by the Committee, by execution of written agreements and/or other instruments in such form as is approved by the Committee.

 

  

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3.3           Delegation by the Committee.

 

3.3.1         The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under the Plan to one or more members of the Board of the Company and/or officers of the Company; provided, however, that the Committee may not delegate its authority or power if prohibited by applicable law.

 

3.3.2         The Committee may, in its sole discretion, employ such legal counsel, consultants and agents as it may deem desirable for the administration of this Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent.  Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent shall be paid by the Company.

 

3.4           Indemnification.  Each person who is or shall have been a member of the Committee, or of the Board and any person designated pursuant to Section 3.3.1, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any good faith action taken or good faith failure to act under the Plan or any Award Agreement, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Certificate of Incorporation or Bylaws (or other organizational document) of the Company or a Subsidiary, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.

 

3.5           Decisions Binding.  All determinations, decisions and interpretations of the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan or any Award Agreement shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.

 

ARTICLE IV

SHARES SUBJECT TO THE PLAN

 

4.1           Number of Shares.  Subject to adjustment as provided in Section 4.3, the number of Shares available for delivery pursuant to Awards granted under the Plan shall be 1,145,541 Shares.  Shares awarded under the Plan may be; authorized but unissued Shares, authorized and issued Shares reacquired and held as treasury Shares or a combination thereof.  To the extent permitted by applicable law or exchange rules, Shares issued in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by the Company or any Subsidiary or Affiliate shall not reduce the Shares available for grants of Awards under this Section 4.1.

 

  

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4.2           Lapsed Awards.  To the extent that Shares subject to an outstanding Option (except to the extent Shares are issued or delivered by the Company in connection with the exercise of a tandem SAR) or other Award are not issued or delivered by reason of the expiration, cancellation, forfeiture or other termination of such Award, then such Shares shall again be available under this Plan.

 

4.3           Changes in Capital Structure.  Unless otherwise provided in the Award Agreement, in the event that any extraordinary dividend or other extraordinary distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, change of control or exchange of Shares or other securities of the Company, or other corporate transaction or event (each a “Corporate Event”) affects the Shares, the Board or the Committee shall, in such manner as it in good faith deems equitable, adjust any or all of (i) the number of Shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted, (ii) the number of Shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards, and (iii) the Exercise Price or Base Price with respect to any Award, or make provision for an immediate cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award.

 

4.3.1         If the Company enters into or is involved in any Corporate Event, the Board or the Committee may, prior to such Corporate Event and upon such Corporate Event, take such action as it deems appropriate, including, but not limited to, replacing Awards with substitute awards in respect of the Shares, other securities or other property of the surviving corporation or any affiliate of the surviving corporation on such terms and conditions, as to the number of Shares, pricing and otherwise, which shall substantially preserve the value, rights and benefits of any affected Awards granted hereunder as of the date of the consummation of the Corporate Event.  Notwithstanding anything to the contrary in the Plan, if a Change in Control occurs, the Company shall have the right, but not the obligation, to cancel each Participant’s Awards immediately prior to such Change in Control and, subject to the provisions of Section 10.1.2, to pay to each affected Participant in connection with the cancellation of such Participant’s Awards, an amount that the Committee determines to be the equivalent value of such Award (e.g., in the case of an Option or SAR, the excess of the aggregate Change in Control Price over the aggregate exercise price), it being understood that the equivalent value of an Option or SAR with an exercise price greater than or equal to the Change in Control Price (as defined in Section 10.1.2 hereof) of the underlying Shares shall be zero.

 

4.3.2         Upon receipt by any affected Participant of any such substitute awards (or payment) as a result of any such Corporate Event, such Participant’s affected Awards for which such substitute awards (or payment) were received shall be thereupon cancelled without the need for obtaining the consent of any such affected Participant.  Any good faith actions or determinations of the Committee under this Section 4.3 need not be uniform as to all outstanding Awards, nor treat all Participants identically.

 

  

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4.4           Minimum Purchase Price.  Notwithstanding any provision of this Plan to the contrary, if authorized but previously unissued Shares are issued under this Plan, such Shares shall not be issued for a consideration that is less than as permitted under applicable law.

 

ARTICLE V

GENERAL REQUIREMENTS FOR AWARDS

 

5.1           Awards Under the Plan.  Awards under the Plan may be in the form of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and Other Stock-Based Awards, cash payments and such other forms as the Committee in its discretion deems appropriate, including any combination of the above.

 

5.2           General Eligibility.  All Eligible Individuals are eligible to be granted Awards, subject to the terms and conditions of this Plan.  Eligibility for the grant of Awards and actual participation in this Plan shall be determined by the Committee in its sole discretion.

 

5.3           Participation.  No person shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.  The Committee’s good faith determination under the Plan (including, without limitation, determination of the eligible Employees who shall be granted Awards, the form, amount and timing of such Awards, and the terms and provisions of Awards and the Award Agreements) need not be uniform and may be made by it selectively among eligible Employees who receive or are eligible to receive Awards under the Plan, whether or not such eligible Employees are similarly situated.

 

5.4           Non-transferability of Awards.  No Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution.  All rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to the Participant and may be exercised only by the Participant or the Participant’s legal representative.

 

5.5           Withholding.

 

5.5.1         General.  As a condition to the settlement of any Award hereunder, a Participant shall be required to pay in cash, or to make other arrangements satisfactory to the Company (including, without limitation, authorizing withholding from payroll, reducing the number of Shares otherwise deliverable or delivering Shares already owned), an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to comply with the Code and/or any other applicable law, rule or regulation with respect to the Award.  Unless the tax withholding obligations of the Company are satisfied, the Company shall have no obligation to issue a certificate or book-entry transfer for such Shares.

 

5.5.2         Withholding Arrangements.  The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit or require a Participant to satisfy all or part of the statutorily required minimum tax withholding obligations in connection with an Award by (a) paying cash, (b) having the Company withhold otherwise deliverable Shares, (c) delivering to the Company already-owned Shares having a Fair Market Value equal to the tax obligation, or (d) any combination of the foregoing.

 

  

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5.6           Conditions and Restrictions on Shares.  Each Participant to whom an Award is made under the Plan shall (i) enter into an Award Agreement with the Company that shall contain such provisions consistent with the provisions of the Plan, as may be approved by the Committee and (ii) to the extent the Award is made at a time prior to the date Shares are listed for trading on an established securities exchange, enter into a “Shareholder’s Agreement”.  Each Award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration or qualification of the Shares subject to such Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the exercise or settlement of such Award or the delivery of Shares thereunder, such Award shall not be exercised or settled and such Shares shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company.  The Company may require that certificates evidencing Shares delivered pursuant to any Award made hereunder bear a legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.  Finally, no Shares shall be issued and delivered under the Plan, unless the issuance and delivery of those Shares shall comply with all relevant regulations and any registration, approval or action thereunder.

 

ARTICLE VI

STOCK OPTIONS

 

6.1           Grant of Options.  Subject to the provisions of the Plan, Options may be granted to Participants at such times, and subject to such terms and conditions, as determined by the Committee in its sole discretion.

 

6.2           Award Agreement.  Each Option shall be evidenced by an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares to which the Option pertains, any conditions to the exercise of all or a portion of the Option, and such other terms and conditions as the Committee, in its discretion, shall determine.

 

6.3           Exercise Price.  Subject to the other provisions of this Section, the Exercise Price with respect to Shares subject to an Option shall be the Fair Market Value of a Share on the Grant Date as determined by the Committee in its sole discretion.

 

6.4           Expiration Dates.  Each Option shall terminate not later than the expiration date specified in the Award Agreement pertaining to such Option; provided, however, that the expiration date with respect to an Option shall not be later than the tenth (10th) anniversary of its Grant Date.

 

6.5           Exercisability of Options.  Subject to Section 6.4, Options granted under the Plan shall be exercisable at such times, and shall be subject to such restrictions and conditions at the time of or after the grant (including, without limitation, that they are exercisable only within certain time periods), as the Committee shall determine in its sole discretion.  The exercise of an Option is contingent upon payment by the Participant of the amount sufficient to pay all taxes required to be withheld by any governmental agency.  Such payment may be in any form approved by the Committee.

 

  

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6.6           Method of Exercise.  Options shall be exercised in whole or in part by the Participant’s delivery of a written notice of exercise to the Chief Financial Officer of the Company (or his or her designee) in a form approved by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment of the Exercise Price with respect to each such Share and an amount sufficient to pay all taxes required to be withheld by any governmental agency.  The Exercise Price shall be payable to the Company in full in cash or its equivalent and no Shares resulting from the exercise of an Option shall be issued until full payment therefore has been made.  The Committee, in its sole discretion, also may permit exercise (a) by tendering previously acquired Shares or (b) by any other means which the Committee, in its sole discretion, determines to both provide legal consideration for the Shares and be consistent with the purposes of the Plan (including, without limitation, a cashless exercise whereby the Company withholds that number of Shares with a Fair Market Value equal to the aggregate exercise price of the Options being exercised).  As soon as practicable after receipt of a written notification of exercise and full payment for the Shares with respect to which the Option is exercised, the Company shall deliver to the Participant Share certificates (or the equivalent if such Shares are held in book entry form) for such Shares with respect to which the Option is exercised.

 

6.7           Restrictions on Share Transferability.  Subject to the provisions of Section 5.4, Options are not transferable, except by will or the laws of descent.  The Committee may impose such additional restrictions on any Shares acquired pursuant to the exercise of an Option as it may deem advisable, including, but not limited to, restrictions related to applicable federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky or state securities laws.

 

6.8           Certain Powers.  Notwithstanding anything herein to the contrary, unless otherwise provided in the Award Agreement, the Committee may, at its sole and absolute discretion, (i) lower the Exercise Price of an Option after it is granted, or take any other action with the effect of lowering the Exercise Price of an Option after it is granted or (ii) permit Participants to cancel an Option in exchange for another Award, in each case taking into account the requirements of Section 409A of the Code.

 

ARTICLE VII

STOCK AWARDS

 

7.1           Grant of Stock Awards.  Subject to the provisions of the Plan, Stock Awards may be granted to such Participants at such times, and subject to such terms and conditions, as determined by the Committee in its sole discretion.  Stock Awards may be issued either alone or in addition to other Awards granted under the Plan.

 

7.2           Stock Award Agreement.  Each Stock Award shall be evidenced by an Award Agreement that shall specify the number of Shares granted, the price, if any, to be paid for the Shares and the Period of Restriction applicable to a Restricted Stock Award or RSU Award and such other terms and conditions as the Committee, in its sole discretion, shall determine.

 

7.3           Acceptance.  Awards of Restricted Stock must be accepted within a period of 60 days (or such other period as the Committee may specify) after the grant date, by executing a Restricted Stock Award Agreement and by paying whatever price (if any) the Committee has designated thereunder.

 

  

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7.4           Transferability/Share Certificates.  Shares subject to an Award of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated during the Period of Restriction.  During the Period of Restriction, a Restricted Stock Award may be registered in the holder’s name or a nominee’s name at the discretion of the Company and may bear a legend as described in Section 7.5.2.  Unless the Committee determines otherwise, shares of Restricted Stock shall be held by the Company as escrow agent during the applicable Period of Restriction, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Company, which would permit transfer to the Company of all or a portion of the Shares subject to the Restricted Stock Award in the event such Award is forfeited in whole or part.

 

7.5           Other Restrictions.  The Committee, in its sole discretion, may impose such other restrictions on Shares subject to an Award of Restricted Stock as it may deem advisable or appropriate.

 

7.5.1         General Restrictions.  The Committee may set restrictions based upon applicable federal or state securities laws, or any other basis determined by the Committee in its discretion.

 

7.5.2         Legend on Certificates.  The Committee, in its sole discretion, may legend the certificates representing Restricted Stock during the Period of Restriction to give appropriate notice of such restrictions.  For example, the Committee may determine that some or all certificates representing Shares of Restricted Stock shall bear the following legend: “The sale or other transfer of the shares of stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the General Maritime Corporation 2012 Equity Incentive Plan (the “Plan”), and in a Restricted Stock Award Agreement (as defined by the Plan).  A copy of the Plan and such Restricted Stock Award Agreement may be obtained from the Chief Financial Officer of General Maritime Corporation.

 

7.6           Removal of Restrictions.  Shares of Restricted Stock covered by a Restricted Stock Award made under the Plan shall be released from escrow as soon as practicable after the termination of the Period of Restriction and, subject to the Company’s right to require payment of any taxes, a certificate or certificates evidencing ownership of the requisite number of Shares shall be delivered to the Participant.

 

7.7           Voting Rights.  During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless otherwise provided in the Award Agreement.

 

7.8           Dividends and Other Distributions.  Unless otherwise provided in an Award Agreement, Participants shall not be entitled to participate in any dividends and other distributions paid with respect to Shares underlying Stock Awards prior to the date that such Shares are issued to the Participant.

 

  

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ARTICLE VIII

STOCK APPRECIATION RIGHTS

 

8.1           Grant of SARs.  Subject to the provisions of the Plan, SARs may be granted to such Participants at such times, and subject to such terms and conditions, as shall be determined by the Committee in its sole discretion.

 

8.2           Base Price and Other Terms.  The Committee, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan.  Without limiting the foregoing, the Base Price with respect to Shares subject to a tandem SAR shall be the same as the Exercise Price with respect to the Shares subject to the related Option.

 

8.3           SAR Agreement.  Each SAR grant shall be evidenced by an Award Agreement that shall specify the Base Price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine.

 

8.4           Expiration Dates.  Each SAR shall terminate no later than the tenth (10th) anniversary of its Grant Date; provided, however, that the expiration date with respect to a tandem SAR shall not be later than the expiration date of the related Option.

 

8.5           Exercisability.

 

8.5.1         Method of Exercise.  Unless otherwise specified in the Award Agreement pertaining to a SAR, a SAR may be exercised (a) by the Participant’s delivery of a written notice of exercise to the General Counsel of the Company (or his or her designee) setting forth the number of whole SARs which are being exercised, (b) in the case of a tandem SAR, by surrendering to the Company any Options which are cancelled by reason of the exercise of such SAR, and (c) by executing such documents as the Company may reasonably request.

 

8.5.2         Tandem SARs.  Tandem SARs (i.e., SARs issued in tandem with Options) shall be exercisable only at such time or times and to the extent that the Options to which they relate shall be exercisable in accordance with the provisions of Article VI.  The related Options which have been surrendered by the exercise of a tandem SAR, in whole or in part, shall no longer be exercisable to the extent the related tandem SARs have been exercised.

 

8.5.3         Discretionary Limitations.  If the Committee provides, in its discretion, that any such right is exercisable subject to certain limitations (including, without limitation, that it is exercisable only in installments or within certain time periods), the Committee may waive such limitations on the exercisability at any time at or after grant in whole or in part (including, without limitation, waiver of the installment exercise provisions or acceleration of the time at which such right may be exercised), based on such factors, if any, as the Committee shall determine, in its sole discretion.

 

8.6           Payment.  Except as otherwise provided in the relevant Award Agreement, upon exercise of a SAR, the Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: (i) the amount by which the Fair Market Value of a Share on the date of exercise exceeds the Base Price specified in the Award Agreement pertaining to such SAR by (ii) the number of Shares with respect to which the SAR is exercised.

 

  

13

  

8.7           Payment Upon Exercise of SAR.  Payment to a Participant upon the exercise of the SAR shall be made, as determined by the Participant, either (a) in cash, (b) in Shares with a Fair Market Value equal to the amount of the payment or (c) in a combination thereof, as set forth in the applicable Award Agreement.

 

ARTICLE IX

OTHER STOCK-BASED AWARDS

 

9.1           Grant.  Subject to the provisions of the Plan, the Committee may grant Other Stock-Based Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares, including, but not limited to, Shares awarded purely as a bonus and not subject to any restrictions or conditions, Shares in payment of the amounts due under an incentive or performance plan sponsored or maintained by the Company or a Subsidiary, performance units, dividend equivalent units, stock equivalent units, and deferred stock units.  To the extent permitted by law, the Committee may, in its sole discretion, permit Eligible Individuals to defer all or a portion of their cash compensation in the form of Other Stock-Based Awards granted under this Plan, subject to the terms and conditions of any deferred compensation arrangement established by the Company, which shall be intended to comply with Section 409A of the Code.  Other Stock-Based Awards may be granted either alone or in addition to or in tandem with other Awards granted under the Plan.

 

9.2           Non-Transferability.  Subject to the applicable provisions of the Award Agreement and this Plan, Shares subject to Awards made under this Article IX may not be Transferred prior to the date on which the Shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

 

9.3           Dividends.  Unless otherwise provided in an Award Agreement, Participants shall not be entitled to participate in any dividends and other distributions paid with respect to Shares underlying Awards issued under this Article IX  prior to the date that such Shares are issued to the Participant.

 

9.4           Vesting.  Any Award under this Article IX and any Shares covered by any such Award shall vest or be forfeited to the extent so provided in the Award Agreement, as determined by the Committee, in its sole discretion.

 

9.5           Price.  Shares issued on a bonus basis under this Article IX may be issued for no cash consideration.  Shares purchased pursuant to a purchase right awarded under this Article IX shall be priced, as determined by the Committee in its sole discretion.

 

9.6           Payment.  The form of payment for Other Stock-Based Awards shall be specified in the Award Agreement.

 

  

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ARTICLE X

CHANGE IN CONTROL; CALL RIGHTS

 

10.1         Vesting.  In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award Agreement, a Participant’s unvested Award shall vest, and all restrictions to which any shares of Restricted Stock or any other Award granted prior to the Change in Control are subject shall lapse, and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee, in its sole discretion:

 

10.1.1       Awards shall be continued, assumed, have new rights substituted therefor or be treated in accordance with Section 4.3 hereof, as determined by the Committee.

 

10.1.2       The Committee, in its sole discretion, may provide for the purchase of any Awards by the Company or an Affiliate for an amount of cash equal to the excess of the Change in Control Price of the Shares covered by such Awards, over the aggregate exercise price of such Awards (if any).

 

10.2         No Limitation.  Notwithstanding anything else herein, the Committee may, in its sole discretion, provide for accelerated vesting or lapse of restrictions, of an Award at any time.

 

10.3         Company Call Rights.  Except as otherwise provided by the Committee in an Award Agreement, in the event of a Participant’s Termination for any reason, the Company shall have a period of ninety (90) days (the “Call Period”) from the later of the 6-month anniversary following (x) such Termination, and (y) the last date of delivery to the Participant of any Shares deliverable pursuant to any outstanding Award, in which to elect to repurchase from the Participant (or the estate or other legally appointed representative of the Participant, if such Termination was on account of the Participant’s death or Disability) all or any portion of the Shares theretofore acquired by the Participant pursuant to the Plan (together with any Equity Securities at any time issued or distributed in respect of any such Shares in connection with a stock dividend, stock split, consolidation, reclassification, recapitalization, reorganization or other similar event, the “Call Shares”).

 

10.4         Call Price.

 

10.4.1       Termination for Cause.  Except as otherwise provided by the Committee in an Award Agreement, in the event of a Termination by the Company for Cause, the Company may repurchase the Call Shares during the Call Period from all holders of the Call Shares at a purchase price equal to the lesser of (i) the original purchase price or exercise price (as applicable), if any, and (ii) Fair Market Value as of the date of repurchase.

 

10.4.2       Other Terminations.  Except as otherwise provided by the Committee in an Award Agreement, in the event of a Termination for any reason other than as described in Section 10.4.1, the Company may repurchase the Call Shares during the Call Period from the holders thereof at a purchase price equal to Fair Market Value as of the date of repurchase.  In addition to the Call Shares, in the event of a Termination for any reason other than as described in Section 10.4.1, during the Call Period, the Company may repurchase from a Participant (or the estate or other legally appointed representative of the Participant, if such Termination was on account of the Participant’s death or Disability), each outstanding vested Stock Option based on the difference between the exercise price of a Share relating to such Stock Option and the Fair Market Value of a Share on the date of repurchase.

 

  

15

  

10.5         Call Procedures.  If the Company elects to exercise the rights under Section 10.3, the Company shall do so by delivering to the Participant (or the estate or other legally appointed representative of the Participant, if such Termination was on account of the Participant’s death or Disability) during the Call Period a notice of such election, specifying the number of Call Shares and/or Stock Options to be purchased and the closing date and time of such purchase.  Such closing shall take place within 10 days of such notice at the Company’s principal executive offices.  At such closing, each holder of Call Shares and/or Stock Options shall deliver to the Company (a) the original certificates, if any, representing the Call Shares, (b) duly executed instruments transferring to the Company title to the Call Shares and/or Stock Options, if any, free and clear of all liens and encumbrances (except under applicable state and federal securities laws and under this Agreement), and (c) customary written representations and warranties by such person, and in exchange therefor  the Company shall pay the holders thereof the repurchase price as specified in Section 10.4 in cash, by the issuance of a promissory note or by cancellation of indebtedness of the Participant.  Any promissory note shall be payable in installments over not longer than three years and shall provide for interest at a rate equal to Company’s cost of borrowing.  If the holders of the Call Shares and/or Stock Options fail to deliver all or any of the Call Shares and/or Stock Options, as applicable, within the time period set forth herein then the Secretary of the Company shall be authorized to effect the Company’s repurchase on the Company’s books and records, without further notice and cancel any outstanding Stock Option.

 

10.6         Effect of Public Offering.  Notwithstanding the foregoing, the Company shall cease to have rights pursuant to Sections 10.3 following the date on which the Company sells its Shares in a bona fide, firm commitment underwriting pursuant to a registration statement under the Securities Act.

 

ARTICLE XI

AMENDMENT, TERMINATION AND DURATION

 

11.1         Amendment, Suspension or Termination.  The Board, in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any reason, subject to any requirement of stockholder approval required by applicable law, rule or regulation, including, without limitation, Section 422 of the Code and the rules of the applicable securities exchange; provided, however, the Board may amend the Plan and any Award Agreement without shareholder approval as necessary to avoid the imposition of any taxes under Section 409A of the Code.  Subject to the preceding sentence, the amendment, suspension or termination of the Plan shall not, without the consent of the Participant, materially adversely alter or impair any rights or obligations under any Award theretofore granted to such Participant.  Notwithstanding the foregoing, the Committee may, but shall not be required to, amend or modify any Award to the extent necessary to avoid the imposition of taxes under Section 409A of the Code.  The Company intends to administer the Plan and all Awards granted thereunder in a manner that complies with Code Section 409A, however, the Company shall not be responsible for any additional tax imposed pursuant to Code Section 409A, nor will the Company indemnify or otherwise reimburse a Participant for any liability incurred as a result of Code Section 409A.  No Award may be granted during any period of suspension or after termination of the Plan.

 

  

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11.2         Duration of the Plan.  The Plan shall, subject to Section 11.1, terminate 10 years after adoption by the Board, unless earlier terminated by the Board and no further Awards shall be granted under the Plan.  The termination of the Plan shall not affect any Awards granted prior to the termination of the Plan.

 

ARTICLE XII

MISCELLANEOUS

 

12.1         Restrictions on Transfer.  Except as otherwise provided by the Committee in an Award Agreement, no Participant that is or was at any time a director, officer, employee or consultant of the Company or any Subsidiary shall Transfer any interest in any Equity Securities issued by the Company to such Shareholder on account of any Award, other than (a) as specifically provided in the Shareholders’ Agreement or to the Company pursuant to repurchase rights in favor of the Company set forth in the Plan or any Award Agreement, as applicable, (x) pursuant to any underwritten public offering in accordance with the Registration Rights Agreement, dated the date hereof, by and among the Company, the Shareholders, and the other parties thereto, as amended from time to time (the “Registration Agreement”), (y) to any of its Permitted Transferees or (z) with the prior written consent of Oaktree, which consent may be withheld in Oaktree’s sole discretion; provided that in any case, as a condition precedent to any such Transfer, the Tranferor of such Equity Securities shall cause each prospective Transferee thereof to execute and deliver to the Company a joinder to the Shareholders’ Agreement and Registration Agreement in form and substance reasonably satisfactory to the Company.  The provisions of this Section 12.1 shall cease to apply after any sale, in an underwritten public offering registered under the Securities Act, of the Company’s (or any successor’s) Equity Securities.

 

12.2         No Effect on Employment or Service.  Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, for any reason and with or without cause.

 

12.3         Unfunded Status.  The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.  With respect to any payments not yet made to a Participant by the Company, nothing set forth herein shall give any Participant any right that is greater than the rights of a general creditor of the Company.  In its sole and absolute discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Shares or payments in lieu of or with respect to Awards hereunder; provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

 

12.4         Successors.  All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business or assets of the Company.

 

  

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12.5         Beneficiary Designations.  Subject to the restrictions in Section 0, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant’s death.  For purposes of this Section, a beneficiary may include a designated trust having as its primary beneficiary a family member of a Participant.  Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee.  In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the Participant’s estate.

 

12.6         No Rights as Shareholder.  No Participant (nor any beneficiary) shall have any of the rights or privileges of a shareholder of the Company with respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until certificates representing such Shares, if any, or in the event the Shares are non-certificate, such other method of recording beneficial ownership, shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant (or beneficiary).

 

12.7         No Corporate Action Restriction.  The existence of the Plan, any Award Agreement and/or the Awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or authorize (a) any adjustment, recapitalization, reorganization or other change in the Company’s or any Subsidiary’s or Affiliate’s capital structure or business, (b) any merger, consolidation or change in the ownership of the Company or any Subsidiary or Affiliate, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Company’s or any Subsidiary’s or Affiliate’s capital stock or the rights thereof, (d) any dissolution or liquidation of the Company or any Subsidiary or Affiliate, (e) any sale or transfer of all or any part of the Company’s or any Subsidiary’s or Affiliate’s assets or business, or (f) any other corporate act or proceeding by the Company or any Subsidiary or Affiliate.  No Participant, beneficiary or any other person shall have any claim against any member of the Board or the Committee, the Company or any Subsidiary or Affiliate, or any employees, officers, shareholders or agents of the Company or any Subsidiary or Affiliate, as a result of any such action.

 

12.8         Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

 

12.9         Severability.  In the event any provision of the Plan or of any Award Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan or the Award Agreement, and the Plan and/or the Award Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

 

12.10       Requirements of Law.  The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

  

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12.11       Governing Law.  The Plan and all determinations made and actions taken pursuant hereto to the extent not otherwise governed by the Code or the securities laws of the United States, shall be governed by the law of the State of Delaware and construed accordingly.

 

12.12       Jurisdiction; Waiver of Jury Trial.  Any suit, action or proceeding with respect to this Plan or any Award Agreement, or any judgment entered by any court of competent jurisdiction in respect of any thereof, shall be resolved only in the courts of the State of Delaware or the United States District Court for the District of Delaware and the appellate courts having jurisdiction of appeals in such courts.  In that context, and without limiting the generality of the foregoing, the Company and each Participant shall irrevocably and unconditionally (a) submit in any proceeding relating to this Plan or any Award Agreement, or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the courts of the State of Delaware, the court of the United States of America for the District of Delaware, and appellate courts having jurisdiction of appeals from any of the foregoing, and agree that all claims in respect of any such Proceeding shall be heard and determined in such Delaware State court or, to the extent permitted by law, in such federal court, (b) consent that any such Proceeding may and shall be brought in such courts and waives any objection that the Company and each Participant may now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agree not to plead or claim the same, (c) waive all right to trial by jury in any Proceeding (whether based on contract, tort or otherwise) arising out of or relating to this Plan or any Award Agreement, (d) agree that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party, in the case of a Participant, at the Participant’s address shown in the books and records of the Company or, in the case of the Company, at the Company’s principal offices, attention General Counsel, and (e) agree that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the laws of the State of Delaware.

 

12.13       Captions.  Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

 

12.14       Payments to Minors.  Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of receipt thereof shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Company, its Affiliates and their employees, agents and representatives with respect thereto.

 

12.15       Section 409A of the Code.  The Plan is intended to comply with the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent.  To the extent that any Award is subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto.  Notwithstanding anything herein to the contrary, any provision in the Plan that is inconsistent with Section 409A of the Code shall be deemed to be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such provision shall be null and void.  The Company shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Code Section 409A is not so exempt or compliant or for any action taken by the Committee or the Company and, in the event that any amount or benefit under the Plan becomes subject to penalties under Section 409A, responsibility for payment of such penalties shall rest solely with the affected Participant(s) and not with the Company.

 

  

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12.16       Section 16(b) of the Exchange Act.  All elections and transactions under this Plan by persons subject to Section 16 of the Exchange Act involving Shares are intended to comply with any applicable exemptive condition under Rule 16b-3.  The Committee may, in its sole discretion, establish and adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and operation of this Plan and the transaction of business thereunder.

 

12.17       Other Benefits.  No Award granted or paid out under this Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation.

 

12.18       Costs.  The Company shall bear all expenses associated with administering this Plan, including expenses of issuing Shares pursuant to any Awards hereunder.

 

12.19       Award Agreement.  Notwithstanding any other provision of the Plan, to the extent the provisions of any Award Agreement are inconsistent with terms of the Plan and such inconsistency is a result of compliance with laws of the jurisdiction in which the Participant is resident or is related to taxation of such Award in such jurisdiction, the relevant provisions of the particular Award Agreement shall govern.

 

12.20       Notices.  Any notice which may be required or permitted under this Plan shall be in writing, and shall be delivered in person or via facsimile transmission, overnight courier service or certified mail, return receipt requested, postage prepaid, properly addressed as follows:

 

12.20.1     If such notice is to the Company, to the attention of the Chief Financial Officer of the Company or at such other address as the Company, by notice to the Participant, shall designate in writing from time to time.

 

12.20.2     If such notice is to the Participant, at his/her address as shown on the Company’s records, or at such other address as the Participant, by notice to the Company, shall designate in writing from time to time.

 

 

20AGREEMENT
OF LIMITED PARTNERSHIP

OF

AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP IV, L.P.

Date as of _______ [●], 2012

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	Article 1. DEFINED TERMS	1
	 	 
	Article 2. ORGANIZATIONAL MATTERS	16
	 	2.1	Formation	16
	 	2.2	Name	16
	 	2.3	Registered Office and Agent; Principal Office	17
	 	2.4	Power of Attorney	17
	 	2.5	Term	18
	 	 	 	 
	Article 3. PURPOSE	19
	 	3.1	Purpose and Business	19
	 	3.2	Powers	19
	 	 	 	 
	Article 4. CAPITAL CONTRIBUTIONS	20
	 	4.1	Capital Contributions of the Partners	20
	 	4.2	Additional Funds; Restrictions on the General Partner	20
	 	4.3	Issuance of Additional Partnership Interests; Admission of Additional Limited Partners	22
	 	4.4	Contribution of Proceeds of Issuance of Common Stock	23
	 	4.5	Repurchase of Common Stock; Shares-In-Trust	23
	 	4.6	No Third-Party Beneficiary	24
	 	4.7	No Interest; No Return	24
	 	4.8	No Preemptive Rights.	24
	 	 	 	 
	Article 5. DISTRIBUTIONS	25
	 	5.1	Distributions	25
	 	5.2	Qualification as a REIT	28
	 	5.3	Withholding	29
	 	5.4	Additional Partnership Interests	29
	 	 	 	 
	Article 6. ALLOCATIONS	29
	 	6.1	Allocations	29
	 	6.2	Revisions to Allocations to Reflect Issuance of Partnership Interests	29
	 	 	 	 
	Article 7. MANAGEMENT AND OPERATIONS OF BUSINESS	29
	 	7.1	Management	29
	 	7.2	Certificate of Limited Partnership	34
	 	7.3	Reimbursement of the General Partner	34
	 	7.4	Outside Activities of the General Partner	35
	 	7.5	Contracts with Affiliates	36
	 	7.6	Indemnification	36
	 	7.7	Liability of the General Partner	39
	 	7.8	Other Matters Concerning the General Partner	40
	 	7.9	Title to Partnership Assets	40

 

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	 	7.10	Reliance by Third Parties	41
	 	7.11	Loans By Third Parties	42
	 	 	 	 
	Article 8. RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	42
	 	8.1	Limitation of Liability	42
	 	8.2	Management of Business	42
	 	8.3	Outside Activities of Limited Partners	42
	 	8.4	Return of Capital	43
	 	8.5	Rights of Limited Partners Relating to the Partnership	43
	 	8.6	Exchange Rights Agreements	43
	 	 	 	 
	Article 9. BOOKS, RECORDS, ACCOUNTING AND REPORTS	44
	 	9.1	Records and Accounting	44
	 	9.2	Fiscal Year	44
	 	9.3	Reports	44
	 	 	 	 
	Article 10. TAX MATTERS	45
	 	10.1	Preparation of Tax Returns	45
	 	10.2	Tax Elections	45
	 	10.3	Tax Matters Partner	46
	 	10.4	Organizational Expenses	47
	 	10.5	Withholding	47
	 	 	 	 
	Article 11. TRANSFERS AND WITHDRAWALS	49
	 	11.1	Transfer	49
	 	11.2	Transfer of the General Partner’s General Partner Interest	49
	 	11.3	Limited Partners’ Rights to Transfer	51
	 	11.4	Substituted Limited Partners	52
	 	11.5	Assignees	53
	 	11.6	General Provisions	54
	 	 	 	 
	Article 12. ADMISSION OF PARTNERS	56
	 	12.1	Admission of Successor General Partner	56
	 	12.2	Admission of Additional Limited Partners	57
	 	12.3	Amendment of Agreement and Certificate of Limited Partnership	58
	 	 	 	 
	Article 13. DISSOLUTION, LIQUIDATION AND TERMINATION	58
	 	13.1	Dissolution	58
	 	13.2	Winding Up	59
	 	13.3	No Obligation to Contribute Deficit	60
	 	13.4	Rights of Limited Partners	61
	 	13.5	Notice of Dissolution	61
	 	13.6	Termination of Partnership and Cancellation of Certificate of Limited Partnership	61
	 	13.7	Reasonable Time for Winding-Up	61
	 	13.8	Waiver of Partition	61

 

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	Article 14. AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	61
	 	14.1	Amendments	61
	 	14.2	Meetings of the Partners	63
	 	 
	Article 15. GENERAL PROVISIONS	64
	 	15.1	Addresses and Notice	64
	 	15.2	Titles and Captions	64
	 	15.3	Pronouns and Plurals	64
	 	15.4	Further Action	64
	 	15.5	Binding Effect	65
	 	15.6	Creditors	65
	 	15.7	Waiver	65
	 	15.8	Counterparts	65
	 	15.9	Applicable Law	65
	 	15.10	Invalidity of Provisions	65
	 	15.11	Entire Agreement	65
	 	15.12	Merger	65
	 	15.13	No Rights as Stockholders	66

 

EXHIBITS

 

Exhibit A – Partners’ Contributions and Partnership
Interests

Exhibit B – Allocations

 

 

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AGREEMENT
OF LIMITED PARTNERSHIP OF

AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP IV, L.P.

 

THIS AGREEMENT OF LIMITED PARTNERSHIP OF
AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP IV, L.P. (this “Agreement”) dated as of [●], 2012, is entered
into among AMERICAN REALTY CAPITAL TRUST IV, INC., a Maryland corporation, as general partner (the “General Partner”),
and AMERICAN REALTY CAPITAL TRUST IV SPECIAL LIMITED PARTNER, LLC, a Delaware limited liability company, as Limited Partner (the
“Initial Limited Partner” and “Special Limited Partner”), and the Limited Partners party
hereto from time to time.

 

WHEREAS, the General Partner formed American
Realty Capital Operating Partnership IV, L.P. (the “Partnership”) as a limited partnership on , 2012, pursuant
to the Revised Uniform Limited Partnership Act of the State of Delaware and filed a certificate of limited partnership with the
Secretary of State of the State of Delaware.

 

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

 

Article
1.

DEFINED TERMS

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

 

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

 

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

 

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

 

“Affiliate” means,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

over

 

(b)          the
sum of the following:

 

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

 

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

 

(iii)      all
fees provided for under this Agreement;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)       such
Partner’s Capital Contributions;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Certificate”
means the Certificate of Limited Partnership relating to the Partnership filed
on           , 2012 in the office of the Delaware Secretary of State, as amended from time to time in accordance with the terms hereof and the Act.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“First Level Return”
means, on any Distribution Date, the difference of (a) a cumulative non-compounded return of 6% per year from the Effective Date
until such Distribution Date on the Average Net Investment Balance (based on a year of 365 days) minus (b) distributions made under
Sections 5.1(a) and (b)(ii).

 

“General Partner”
means American Realty Capital Trust IV, Inc., a Maryland corporation, and any successor as general partner of the Partnership.

 

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

 

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

 

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(a)          the
initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such
asset, without reduction for liabilities, as determined by the contributing Partner and the Partnership on the date of contribution
thereof;

 

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

 

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

 

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

 

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

 

(c)          the
Gross Asset Values of Partnership assets distributed to any Partner shall be the gross fair market values of such assets (taking
Section 7701(g) of the Code into account) without reduction for liabilities, as determined by the General Partner as of the date
of distribution; and

 

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

 

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

 

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

 

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“Incapacity” or
“Incapacitated” means,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indemnitee” means

 

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

 

(i)        the
General Partner,

 

(ii)       a
Limited Partner,

 

(iii)      the
Service Provider,

 

(iv)      an
investment advisor to the General Partner,

 

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

 

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

 

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

 

(b)          such
other Persons (including Affiliates of the General Partner, a Limited Partner, the Partnership or the Service Provider) as the
General Partner may designate from time to time (whether before or after the event giving rise to potential liability), in its
sole and absolute discretion.

 

“Initial Limited Partner”
means American Realty Capital Trust IV Special Limited Partner, LLC.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Person” means
an individual or Entity.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Stockholder”
means a holder of Common Stock.

 

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

 

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

 

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

 

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(b)        the
outstanding equity interests (whether or not voting), is owned, directly or indirectly, by such Person.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Article
2.

ORGANIZATIONAL MATTERS

 

2.1          Formation

 

The General Partner has formed
the Partnership by filing the Certificate on           , 2012 in the office
of the Delaware Secretary of State. The Partnership is a limited partnership organized pursuant to the provision of the Act
and upon the terms and conditions set forth in this Agreement. Except as expressly provided herein to the contrary, the
rights and obligations of the Partners and the administration and termination of the Partnership shall be governed by the
Act. The Partnership Interest of each Partner shall be personal property for all purposes.

 

2.2          Name

 

The name of the Partnership is American
Realty Capital Operating Partnership IV, L.P. The Partnership’s business may be conducted under any other name or names deemed
advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited
Partnership,” “LP,” “Ltd.” or similar words or letters shall be included in the Partnership’s
name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its
sole and absolute discretion may change the name of the Partnership and shall notify the Limited Partners of such change in the
next regular communication to the Limited Partners.

 

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2.3         Registered
Office and Agent; Principal Office

 

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

 

2.4         Power
of Attorney

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)        Each
Limited Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within fifteen (15) days after
receipt of the General Partner’s or Liquidator’s request therefore, such further designation, powers of attorney and
other instruments as the General Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and
the purposes of the Partnership.

 

2.5          Term

 

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

 

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Article
3.

PURPOSE

 

3.1         Purpose
and Business

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3.2         Powers

 

(a)         The
Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient
for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the
Partnership including, without limitation, full power and authority to enter into, perform, and carry out contracts of any kind,
to borrow money and to issue evidences of indebtedness, whether or not secured by mortgage, trust deed, pledge or other Lien, and,
directly or indirectly, to acquire, own, improve, develop and construct real property, and lease, sell, transfer and dispose of
real property; provided, that the Partnership shall not take, or refrain from taking, any action which, in the judgment
of the General Partner, in its sole and absolute discretion,

 

(i)        could
adversely affect the ability of the General Partner to continue to qualify as a REIT, unless the General Partner otherwise ceases
to qualify as a REIT;

 

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

 

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

 

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

 

Article
4.

CAPITAL CONTRIBUTIONS

 

4.1          Capital
Contributions of the Partners

 

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

 

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

 

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

 

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

 

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

 

4.2          Additional
Funds; Restrictions on the General Partner

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	21

    	 

    

  

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

 

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

 

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

 

4.3          Issuance
of Additional Partnership Interests; Admission of Additional Limited Partners

 

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

 

    	22

    	 

    

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

 

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

 

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

 

4.4          Contribution
of Proceeds of Issuance of Common Stock

 

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

 

4.5          Repurchase
of Common Stock; Shares-In-Trust

 

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

 

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

 

    	23

    	 

    

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

 

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

 

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

 

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

 

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

 

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

 

4.6          No
Third-Party Beneficiary

 

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

 

4.7          No
Interest; No Return

 

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

 

(b)          Except
as provided herein or by law, no Partner shall have any right to demand or receive the return of its Capital Contribution from
the Partnership.

 

4.8          No
Preemptive Rights.

 

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

 

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

 

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

 

    	24

    	 

    

 

 

Article
5.

DISTRIBUTIONS

 

5.1          Distributions

 

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

 

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

 

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

 

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

 

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

 

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

 

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(d)          Termination
Amounts.

 

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

 

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

 

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

 

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

 

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(e)          Coordination.

 

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

 

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

 

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

 

5.2          Qualification
as a REIT

 

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

 

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

 

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

 

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

 

(x)          violate
applicable Delaware law or

 

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

 

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5.3          Withholding

 

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

 

5.4          Additional
Partnership Interests

 

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

 

Article
6.

ALLOCATIONS

 

6.1          Allocations

 

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

 

6.2          Revisions
to Allocations to Reflect Issuance of Partnership Interests

 

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

 

Article
7.

MANAGEMENT AND OPERATIONS OF BUSINESS

 

7.1          Management

 

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

 

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

 

(iii)          In
addition to the powers now or hereafter granted a general partner of a limited partnership under applicable law or which are granted
to the General Partner under any other provision of this Agreement, the General Partner, subject to Section 7.11, shall have full
power and authority to do all things deemed necessary or desirable by it to conduct the business of the Partnership, to exercise
all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including, without limitation:

 

(A)          (1)          the
making of any expenditures, the lending or borrowing of money, including, without limitation, making prepayments on loans and borrowing
money to permit the Partnership to make distributions to its Partners in such amounts as will permit the General Partner (so long
as the General Partner qualifies as a REIT) to avoid the payment of any federal income tax (including, for this purpose, any excise
tax pursuant to Section 4981 of the Code) and to make distributions to its stockholders in amounts sufficient to permit the General
Partner to maintain REIT status,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	31

    	 

    

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

 

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

 

(1)          the
settlement, compromise, submission to arbitration or any other form of dispute resolution, or abandonment of, any claim, cause
of action, liability, debt or damages, due or owing to or from the Partnership,

 

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

 

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

 

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

 

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

 

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

 

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

 

    	32

    	 

    

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

 

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

 

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

 

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

 

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

 

(b)          (i)          Each
of the Limited Partners agree that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements
and transactions on behalf of the Partnership without any further act, approval or vote of the Partners, notwithstanding any other
provision of this Agreement to the fullest extent permitted under the Act or other applicable law, rule or regulation.

 

(ii)          The
execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this
Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or
the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity.

 

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

 

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

 

(ii)          liability
insurance for the Indemnitees hereunder; and

 

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

 

    	33

    	 

    

 

 

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

 

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

 

(ii)          The
General Partner and the Partnership shall not have liability to the any Limited Partner under any circumstances as a result of
an income tax liability incurred by such Limited Partner as a result of an action (or inaction) by the General Partner taken pursuant
to its authority under and in accordance with this Agreement.

 

7.2          Certificate
of Limited Partnership

 

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

 

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

 

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

 

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

 

7.3          Reimbursement
of the General Partner

 

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

 

    	34

    	 

    

 

 

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

 

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

 

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

 

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

 

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

 

7.4          Outside
Activities of the General Partner

 

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

 

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

 

7.5          Contracts
with Affiliates

 

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

 

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

 

(b)          Except
as provided in Section 7.4, the Partnership may Transfer assets to Entities in which it is or thereby becomes a participant upon
such terms and subject to such conditions consistent with this Agreement and applicable law as the General Partner, in its sole
and absolute discretion, may determine.

 

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

 

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

 

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

 

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7.6          Indemnification

 

(a)          (i)          To
the fullest extent permitted by Delaware law or as provided herein, the Partnership shall indemnify each Indemnitee from and against
any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, reasonable attorneys’
fees and other legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative (collectively, “Claims”), that
relate to the operations of the Partnership or the General Partner as set forth in this Agreement, in which such Indemnitee may
be involved, or is threatened to be involved, as a party or otherwise, so long as (w) the course of conduct which gave rise to
the Claim was taken, in the reasonable determination of the Indemnitee made in good faith, in the best interests of the Partnership
or the General Partner, (x) such Claim was not the result of negligence or misconduct by the Indemnitee, (y) the Indemnitee
(if other than the General Partner) was acting on behalf or performing services for the Partnership and (z) such indemnification
is not satisfied or recoverable from the assets of the stockholders of the General Partner. Notwithstanding the foregoing, no Indemnitee
(other than the General Partner) shall be indemnified for any Claim arising from or out of an alleged violation of federal or state
securities laws unless (x) there has been a successful adjudication on the merits of each count involving alleged securities law
violations as to such Indemnitee, (y) such allegations have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to such Indemnitee, or (z) a court of competent jurisdiction approves a settlement of such allegations against
such Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering
the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published
position of any state securities regulatory authority in which the Common Stock was offered or sold as to indemnification for violations
of securities law.

 

(ii)          Without
limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty (except a guaranty
by a limited partner of nonrecourse indebtedness of the Partnership or as otherwise provided in any such loan guaranty), contractual
obligation for any indebtedness or other obligation or otherwise for any indebtedness of the Partnership or any Subsidiary of the
Partnership (including, without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed
or taken subject to), and the General Partner is hereby authorized and empowered, on behalf of the Partnership, to enter into one
or more indemnity agreements consistent with the provisions of this Section 7.6 in favor of any Indemnitee having or potentially
having liability for any such indebtedness.

 

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

 

(b)          Reasonable
expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership in advance of
the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative
made or threatened against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the
Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized
in this Section 7.6 has been met; and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met.

 

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

 

    	37

    	 

    

 

 

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

 

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

 

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

 

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

 

(h)          (i)          The
provisions of this Section 7.6 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and
shall not be deemed to create any rights for the benefit of any other Persons.

 

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

 

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

 

    	38

    	 

    

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

 

7.7          Liability
of the General Partner

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	39

    	 

    

 

 

7.8          Other
Matters Concerning the General Partner

 

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

 

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

 

(c)          (i)          The
General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and duly appointed attorneys-in-fact.

 

(ii)          Each
such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power and authority to do
and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder.

 

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

 

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

 

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

 

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

 

7.9          Title
to Partnership Assets

 

(a)          Title
to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership
as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof.

 

    	40

    	 

    

 

 

(b)          (i)          Title
to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees,
as the General Partner may determine, including Affiliates of the General Partner.

 

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

 

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

 

7.10          Reliance
by Third Parties

 

(a)          Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General
Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise
use in any manner any and all assets of the Partnership and to enter into any contracts on behalf of the Partnership, and take
any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the
General Partner were the Partnership’s sole party in interest, both legally and beneficially.

 

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

 

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

 

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

 

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

 

(ii)          the
Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on
behalf of the Partnership; and

 

(iii)          such
certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement
and is binding upon the Partnership.

 

    	41

    	 

    

 

 

7.11          Loans
By Third Parties

 

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

 

Article
8.

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

 

8.1          Limitation
of Liability

 

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

 

8.2          Management
of Business

 

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

 

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

 

8.3          Outside
Activities of Limited Partners

 

(a)          Subject
to any agreements entered into pursuant to Section 7.5 hereof and any other agreements entered into by a Limited Partner or its
Affiliates with the Partnership or any of its Subsidiaries, and any Limited Partner and any officer, director, employee, agent,
trustee, Affiliate or shareholder of any Limited Partner shall be entitled to and may have business interests and engage in business
activities in addition to those relating to the Partnership, including business interests and activities that are in direct competition
with the Partnership or that are enhanced by the activities of the Partnership.

 

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

 

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

 

    	42

    	 

    

 

 

8.4          Return
of Capital

 

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

 

(b)          Except
as provided in Articles 5 and 13 hereof, no Limited Partner or Assignee shall have priority over any other Limited Partner or Assignee,
either as to the return of Capital Contributions or as to profits, losses or distributions.

 

8.5          Rights
of Limited Partners Relating to the Partnership

 

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

 

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

 

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

 

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

 

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

 

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

 

8.6          Exchange
Rights Agreements

 

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

 

    	43

    	 

    

 

 

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

 

Article
9.

BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

9.1          Records
and Accounting

 

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

 

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

 

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

 

9.2          Fiscal
Year

 

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

 

9.3          Reports

 

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

 

    	44

    	 

    

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

 

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

 

Article
10.

TAX MATTERS

 

10.1        Preparation
of Tax Returns

 

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

 

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

 

10.2        Tax
Elections

 

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

 

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

 

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

 

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10.3        Tax
Matters Partner

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	46

    	 

    

 

 

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

 

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

 

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

 

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

 

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

 

(ii)          All
third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting
fees and expenses) shall be borne by the Partnership.

 

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

 

10.4        Organizational
Expenses

 

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

 

10.5        Withholding

 

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

 

    	47

    	 

    

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	48

    	 

    

 

 

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

 

Article
11.

TRANSFERS AND WITHDRAWALS

 

11.1         Transfer

 

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

 

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

 

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

 

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

 

11.2         Transfer
of the General Partner’s General Partner Interest

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(A)          exercised
its Exchange Right and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11.3         Limited
Partners’ Rights to Transfer

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)          such
Transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA, a “party-in-interest”
(as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in Section 4975(c) of the Code);

 

(iv)          such
Transfer would, in the opinion of legal counsel for the Partnership, cause any portion of the assets of the Partnership to constitute
assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101;

 

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

 

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

 

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

 

(e)          No
transfer of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within the meaning of
Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse liability (within the meaning
of Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute
discretion, provided that as a condition to such consent the lender will be required to enter into an arrangement with the Partnership
and the General Partner to exchange for the Cash Amount any Partnership Units in which a security interest is held simultaneously
with the time at which such lender would be deemed to be a partner in the Partnership for purposes of allocating liabilities to
such lender under Section 752 of the Code.

 

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

 

11.4         Substituted
Limited Partners

 

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

 

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

 

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

 

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

 

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

 

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

 

11.5        Assignees

 

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

 

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

 

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

 

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11.6          General
Provisions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(e)          In
addition to any other restrictions on transfer herein contained, including without limitation the provisions of this Article 11,
in no event may any Transfer or assignment of a Partnership Interest by any Partner (including pursuant to Section 8.6) be made
without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks
the legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion
of a Partnership Interest, such as the Capital Account, or rights to distributions, separate and apart from all other components
of a Partnership Interest; (iv) if in the opinion of legal counsel to the Partnership such transfer would cause a termination of
the Partnership for federal or state income tax purposes (except as a result of the exchange for Common Stock of all Partnership
Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 7.11 or Section 11.2); (v) if
in the opinion of counsel to the Partnership, there would be a significant risk that such transfer would cause the Partnership
to cease to be classified as a partnership for federal income tax purposes (except as a result of the exchange for Common Stock
of all Partnership Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 7.11 or Section
11.2); (vi) if such transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state
securities laws; (vii) if such transfer is effectuated through an “established securities market” or a “secondary
market” (or the substantial equivalent thereof) within the meaning of Section 7704 of the Code or such transfer causes the
Partnership to become a “publicly traded partnership,” as such term is defined in Section 469(k)(2) or Section 7704(b)
of the Code (provided that this clause (vii) shall not be the basis for limiting or restricting in any manner the exercise of the
Exchange Right under Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion
to the effect that, in the absence of such limitation or restriction, there is a significant risk that the Partnership will be
treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation); (viii) such transfer
could adversely affect the ability of the General Partner to remain qualified as a REIT; or (ix) if in the opinion of legal counsel
of the transferring Partner (which opinion and counsel are reasonably satisfactory to the Partnership), or legal counsel of the
Partnership, such transfer would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject
the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, if the General Partner has elected to
be qualified as a REIT.

 

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

 

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Article
12.

ADMISSION OF PARTNERS

 

12.1          Admission
of Successor General Partner

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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12.2          Admission
of Additional Limited Partners

 

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

 

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

 

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

 

(b)          (i)          Notwithstanding
anything to the contrary in this Section 12.2, no Person shall be admitted as an Additional Limited Partner without the consent
of the General Partner, which consent may be given or withheld in the General Partner’s sole and absolute discretion.

 

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

 

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

 

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

 

(B)          distributions
pursuant to Section 5.1(a) with respect to which the Partnership Record Date is before the date of such admission shall be made
solely to Partners and Assignees, other than the Additional Limited Partner, and all distributions pursuant to Section 5.1(a) thereafter
shall be made to all of the Partners and Assignees, including such Additional Limited Partner.

 

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

 

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12.3          Amendment
of Agreement and Certificate of Limited Partnership

 

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

 

Article
13.

DISSOLUTION, LIQUIDATION AND TERMINATION

 

13.1          Dissolution

 

(a)          The
Partnership shall not be dissolved by the admission of Substituted Limited Partners, Additional Limited Partners or by the admission
of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any
successor General Partner shall continue the business of the Partnership.

 

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

 

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

 

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

 

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

 

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

 

(v)          a
Capital Transaction;

 

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

 

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

 

13.2          Winding
Up

 

(a)          (i)          Upon
the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in an orderly
manner, liquidating its assets, and satisfying the claims of its creditors and Partners.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(b)          (i)          Notwithstanding
the provisions of Section 13.2(a) hereof which require liquidation of the assets of the Partnership, but subject to the order of
priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale
of part or all of the Partnership’s assets would be impractical or would cause undue loss to the Partners (including the
Special Limited Partner), the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation
of any asset except those necessary to satisfy liabilities of the Partnership (including to those Partners, including the Special
Limited Partner, as creditors) or distribute to the Partners (including the Special Limited Partner), in lieu of cash, as tenants
in common and in accordance with the provisions of Section 13.2(a) hereof, undivided interests in such Partnership assets as the
Liquidator deems not suitable for liquidation.

 

(ii)          Any
such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are
in the best interests of the Partners (including the Special Limited Partner), and shall be subject to such conditions relating
to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing
the operation of such properties at such time.

 

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

 

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

 

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

 

(B)          withheld
or escrowed to provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized
portion of any installment obligations owed to the Partnership, provided that such withheld or escrowed amounts shall be distributed
to the General Partner, the Limited Partners and the Special Limited Partner in the manner and order of priority set forth in Section
13.2(a), as soon as practicable.

 

13.3         No
Obligation to Contribute Deficit

 

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

 

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13.4          Rights
of Limited Partners

 

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

 

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

 

13.5        Notice
of Dissolution

 

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

 

13.6         Termination
of Partnership and Cancellation of Certificate of Limited Partnership

 

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

 

13.7         Reasonable
Time for Winding-Up

 

A reasonable time shall be allowed for the
orderly winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to Section 13.2 hereof
in order to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement shall remain in
effect among the Partners (including the Special Limited Partner) during the period of liquidation.

 

13.8          Waiver
of Partition

 

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

 

Article
14.

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS

 

14.1         Amendments

 

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

 

    	61

    	 

    

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(A)          alter
or change Exchange Rights;

 

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

 

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

 

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

 

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

 

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

 

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

 

    	62

    	 

    

 

 

14.2         Meetings
of the Partners

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)          (i)          Subject
to Section 14.2(a)(vi), any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting
if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or
such other percentage as is expressly required by this Agreement).

 

(ii)          Such
consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote of a majority of
the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement).

 

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

 

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

 

(c)          (i)          Each
Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting.

 

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

 

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

 

    	63

    	 

    

 

 

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

 

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

 

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

 

Article
15.

GENERAL PROVISIONS

 

15.1        Addresses
and Notice

 

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

 

15.2        Titles
and Captions

 

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

 

15.3        Pronouns
and Plurals

 

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

 

15.4        Further
Action

 

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

 

    	64

    	 

    

 

 

15.5        Binding
Effect

 

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

 

15.6        Creditors

 

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

 

15.7        Waiver

 

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

 

15.8       Counterparts

 

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

 

15.9        Applicable
Law

 

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

 

15.10      Invalidity
of Provisions

 

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

 

15.11      Entire
Agreement

 

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

 

15.12      Merger

 

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

 

    	65

    	 

    

 

15.13      No
Rights as Stockholders

 

Nothing contained in this Agreement shall
be construed as conferring upon the holders of the Partnership Units any rights whatsoever as stockholders of the General Partner,
including, without limitation, any right to receive dividends or other distributions made to shareholders or to vote or to consent
or receive notice as shareholders in respect to any meeting or shareholders for the election of directors of the General Partner
or any other matter.

 

[SIGNATURE PAGE FOLLOWS]

 

    	66

    	 

    

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

 

	 	GENERAL PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL TRUST IV, INC.
	 	 	 
	 	By: 	 
	 	Name:  Nicholas S. Schorsch
	 	Title:  Chairman, President and Chief Executive Officer
	 	 	 
	 	INITIAL LIMITED PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL TRUST IV SPECIAL LIMITED PARTNER, LLC
	 	 
	 	By:  AR Capital, LLC, its Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 
	 	AMERICAN REALTY CAPITAL TRUST IV SPECIAL LIMITED PARTNER, LLC
	 	 
	 	By:  AR Capital, LLC, its Member
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

    	67

    	 

    

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

 

	Dated:  ____________ __, 20___	[Name of Corporation/LLC]
	 	 
	 	By:          	 
	 	Name: 	 
	 	Title:	 

    	68

    	 

    

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

 

	Dated:  ____________ __, 20___	 	 

    	69

    	 

    

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

 

	Dated:  ____________ __, 20___	[Name of LP]
	 	 
	 	By:          	 
	 	Name:	 
	 	Title:	 

 

    	70

    	 

    

  

Exhibit
A

 

Partners’ Contributions and Partnership Interests

 

	Name and Address of Partner	 	Type of Interest	 	 	Capital 
 Contribution	 	Number of 
 Partnership Units	 	Percentage
 Interest	 
	American Realty Capital Trust IV, Inc.
 405 Park Avenue
 New York, New York 10022	 	General Partnership Interest	 	$	200,000	 	8,888	 	100	% 
	 	 	 	 	 	 	 	 	 	 	 
	American Realty Capital 
 Trust IV Special Limited Partner, LLC
 405 Park Avenue
 New York, New York 10022	 	Special Limited Partnership Interest	 	 	None	 	Not applicable	 	Not applicable	 

 

    	A-1

    	 

    

Exhibit
B

 

Allocations

 

1.          Allocation
of Net Income and Net Loss.

 

(a)          General.

 

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

 

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

 

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

 

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

 

    	B-1

    	 

    

 

 

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

 

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

 

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

 

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

 

(d)          Other
Chargeback of Impermissible Negative Capital Account. To the extent any Partner has an Adjusted Capital Account Deficit at
the end of any Partnership fiscal year, each such Partner shall be specially allocated items of Partnership income (including gross
income) and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this paragraph 2(d)
shall be made if and only to the extent that such Partner would have an Adjusted Capital Account Deficit after all other allocations
provided for in this Exhibit B have been tentatively made as if this paragraph 2(d) were not in the Agreement.

 

    	B-2

    	 

    

 

 

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

 

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

 

(g)          Section
754 Adjustment. To the extent an adjustment to the adjusted tax basis of any asset of the Partnership pursuant to Section 734(b)
of the Code or Section 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations, to be taken
into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or
loss shall be specially allocated among the Partners in a manner consistent with the manner in which each of their respective Capital
Accounts are required to be adjusted pursuant to such section of the Regulations.

 

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

 

4.           Tax
Allocations.

 

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

 

(b)          Section
1245/1250 Recapture. If any portion of gain from the sale of Partnership assets is treated as gain which is ordinary income
by virtue of the application of Code Sections 1245 or 1250 (“Affected Gain”), then such Affected Gain shall be
allocated among the Partners in the same proportion that the depreciation and amortization deductions giving rise to the Affected
Gain were allocated. This subparagraph 3(b) shall not alter the amount of Net Income (or items thereof) allocated among the Partners,
but merely the character of such Net Income (or items thereof). For purposes hereof, in order to determine the proportionate allocations
of depreciation and amortization deductions for each fiscal year or other applicable period, such deductions shall be deemed allocated
on the same basis as Net Income and Net Loss for such respective period.

 

    	B-3

    	 

    

  

(c)          Precontribution
Gain, Revaluations. With respect to any Contributed Property, the Partnership shall use any permissible method contained in
the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in its sole discretion, to take into
account any variation between the adjusted basis of such asset and the fair market value of such asset as of the time of the contribution
(“Precontribution Gain”). Each Partner hereby agrees to report income, gain, loss and deduction on such Partner’s
federal income tax return in a manner consistent with the method used by the Partnership. If any asset has a Gross Asset Value
which is different from the Partnership’s adjusted basis for such asset for federal income tax purposes because the Partnership
has revalued such asset pursuant to Regulations Section 1.704-1(b)(2)(iv)(f), the allocations of Tax Items shall be made in accordance
with the principles of Section 704(c) of the Code and the Regulations and the methods of allocation promulgated thereunder. The
intent of this subparagraph 3(c) is that each Partner who contributed to the capital of the Partnership a Contributed Property
will bear, through reduced allocations of depreciation, increased allocations of gain or other items, the tax detriments associated
with any Precontribution Gain. This subparagraph 3(c) is to be interpreted consistently with such intent.

 

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

 

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

 

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

 

    	B-4

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