Document:

exv10w7

 

Exhibit 10.7

HINES-SUMISEI NY CORE OFFICE TRUST

ARTICLES OF AMENDMENT AND RESTATEMENT

HINES-SUMISEI NY CORE OFFICE TRUST, a Maryland real estate investment trust (the “Trust”),
hereby certifies to the State Department of Assessments and Taxation of Maryland as follows:

     FIRST: The Trust desires to, and does hereby, amend and restate its Amended and
Restated Declaration of Trust (the “Declaration of Trust”) as currently in effect and as
hereinafter amended.

     SECOND: Attached hereto as Exhibit A are all the provisions of the Declaration of
Trust currently in effect and as hereinafter amended and restated.

     THIRD: The amendment and restatement of the Declaration of Trust as set forth on
Exhibit A hereto have been duly advised by the Board of Trustees and approved by the shareholders
of the Trust as required by law.

     FOURTH: The total number of shares of beneficial interest which the Trust has
authority to issue is not increased by the foregoing amendment and restatement of the Declaration
of Trust.

     FIFTH: The name and address of the current resident agent of the Trust is set forth
in Article IV of the attached amendment and restatement of the Declaration of Trust.

     SIXTH: The number of trustees of the Trust is currently seven and the names of those
currently in office are set forth in Section 5.2(b) of Article V of the attached amendment and
restatement of the Declaration of Trust.

     SEVENTH: The undersigned President acknowledges these Articles of Amendment and
Restatement to be the act of the Trust and as to all matters or facts required to be verified under
oath, the undersigned President acknowledges that to the best of his knowledge, information and
belief, these matters and facts are true in all material respects and that this statement is made
under the penalties for perjury.

 

 

     IN WITNESS WHEREOF, the Trust has caused these Articles of Amendment and Restatement to be
signed in its name and on its behalf by its President and attested to by its Secretary on this
21st day of December, 2005.

	 	 	 	 	 	 	 
	 	 	HINES-SUMISEI NY CORE OFFICE TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles N. Hazen	 	 
	 

	 	 	 	 

Charles N. Hazen
	 	 
	 

	 	 	 	President	 	 

ATTEST:

	 	 	 
	/s/ Sherri W. Schugart
	 	 
	 

Sherri W. Schugart

	 	 
	Secretary
	 	 

 

 

EXHIBIT A

(attached)

 

 

HINES-SUMISEI NY CORE OFFICE TRUST

THIRD AMENDED AND RESTATED DECLARATION OF TRUST

ARTICLE I

ORGANIZATION

     The Trust is a real estate investment trust within the meaning of Title 8 of the Corporations
and Associations Article of the Annotated Code of Maryland (the “Maryland REIT Law”). The
Trust shall not be deemed to be a general partnership, limited partnership, joint venture, joint
stock company or a corporation (but nothing herein shall preclude the Trust from being treated for
tax purposes as an association under the Internal Revenue Code of 1986, as amended (the
“Code”)).

ARTICLE II

NAME AND CERTAIN DEFINITIONS

     Section 2.1. Name. The name of the Trust is “Hines-Sumisei NY Core Office Trust.”
Under circumstances in which the Board of Trustees of the Trust (the “Board of Trustees” or
“Board”) determines that the use of the name of the Trust is not practicable, the Trust
may, subject to Section 10.2(b), use any other designation or name for the Trust.

     Section 2.2. Certain Definitions. As used in this Amended and Restated Declaration of
Trust (this “Declaration of Trust”), the terms set forth below have the meanings indicated.
Other capitalized terms used in this Declaration of Trust are defined elsewhere herein.

          “Affiliate”: With respect to any Person, a Person which, directly or indirectly,
controls, is controlled by or is under common control with such Person. As used in the immediately
preceding sentence, “control” shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

          “Appraised Value”: As defined in the Investor Rights Agreement.

          “Bylaws”: The Bylaws of the Trust, as the same may be amended from time to time.

          “Business Day”: As defined in the Organization Agreement.

          “Class B Notice Date”: As defined in Section 6.7(a).

          “Class B Preferred Capital Amount”: As of any date, the product of (A) the Issue
Price (as adjusted for stock, dividends, stock splits, reverse stock splits, combinations,
recapitalizations and other similar changes in the capital structure of the Trust) multiplied by
(B) the aggregate number of Class B Preferred Shares (as defined in Section 6.3) issued and
outstanding as of such date. For all purposes under this Declaration of Trust, as of any date, the
Class B Preferred Capital Amount will be deemed to have been distributed when the Trust has

 

 

distributed cash to the holders of the Class B Preferred Shares, pursuant to the applicable
provisions of this Declaration of Trust, in an aggregate amount equal to the Class B Preferred
Capital Amount, taking into account all distributions of cash by the Trust to the holders of Class
B Preferred Shares prior to and as of such date.

          “Class B Redemption Amount”: As of any time, the sum of (i) the Class B Redemption
Capital Component, plus (ii) the amount, if any, of the accrued but unpaid Class B Redemption
Interest Component.

          “Class B Redemption Capital Component”: The sum of the Class B Redemption Portions
for each Property owned by the Trust on the Class B Notice Date.

          “Class B Redemption Date”: As defined in Section 6.7(a).

          “Class B Redemption Interest Component”: An amount equal to the interest that would
have accrued on the unpaid portion of the Class B Redemption Amount had such amount accrued
interest at the Default Rate, compounded quarterly, from the Class B Redemption Date to the date
such amount is distributed to the holders of the Class B Preferred Shares and Class B Common
Shares, less any amounts previously distributed to such holders pursuant to Section 6.6(c).

          “Class B Redemption Portion”: With respect to each Property owned by the Trust on the
Class B Notice Date, the amount that would have been distributed to the holders of the Class B
Preferred Shares and the Class B Common Shares had such Property been sold for its Appraised Value
as of the Class B Notice Date and the Projected Net Proceeds from such sale distributed in
accordance with Section 6.6; provided, however, if a Property is sold by the Trust
after the Class B Notice Date and prior to the Class B Redemption Date to a Person that is not an
Affiliate of HILP, Holding Partnership or any holder of Class B Shares, then the “Class B
Redemption Portion” with respect to such Property shall be the amount which would have been
distributed to the holders of the Class B Preferred Shares and the Class B Common Shares had the
actual net proceeds to the Trust from the sale of such Property been distributed to the
Shareholders in accordance with Section 6.6(b).

          “Class B Unit”: One Class B Preferred Share and a portion of a Class B Common Share
equal to a fraction the numerator of which is the number of Class B Common Shares then outstanding
and the denominator of which is the number of Class B Preferred Shares then outstanding.

          “Department”: The State Department of Assessments and Taxation of the State of
Maryland.

          Default Rate”: As defined in the Investor Rights Agreement.

          “HILP”: As defined in the Organization Agreement.

          “Holding Partnership”: As defined in the Organization Agreement.

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          “Initial Date”: The date as of which the Trust’s election to be taxed as a REIT
becomes effective.

          “Investor Rights Agreement”: The Second Amended and Restated Investor Rights
Agreement of Hines US Core Office Fund and GMIMCo, dated October 12, 2005, as such agreement may be
amended from time to time.

          “Issue Price”: $1,000.00.

          “Non-Managing General Partner”: As defined in the partnership agreement of the
Holding Partnership.

          “Organization Agreement”: The Amended and Restated Organization Agreement, dated as
of December 23, 2003, among the Trust and the other parties thereto providing for, among other
things, the contribution of capital to the Trust in connection with the acquisition of the First
Closing Properties (as defined therein) and the issuance of Shares in respect thereof, as such
agreement may be amended from time to time.

          “Person”: An individual, a partnership of any kind having a separate legal status, a
corporation (including a business trust), limited liability company, a joint stock company, a
trust, an unincorporated organization or association, a mutual company, a joint venture, a sole
proprietorship or any other entity of any type whatsoever, or any government or any agency or
political subdivision thereof; provided that, for the purposes of Article VII, the term
“Person” shall have the meaning as set forth in Section 7.1.

          “Projected Net Proceeds”: As defined in the Investor Rights Agreement.

          “Property”: Any of the First Closing Properties or Manhattan Tower (in each case, as
defined in the Organization Agreement).

          “Quarterly Payment Date” Each March 31, June 30, October 31 and December 31;
provided that if in any year any such date is not a Business Day, then, for such year, such
Quarterly Payment Date shall be the first Business Day that precedes such date.

          “REIT”: A “real estate investment trust” as defined in Section 856 of the Code and
applicable Treasury Regulations.

          “Shareholder”: A record holder of one or more Shares.

          “Shareholders Agreement”: Second Amended and Restated Shareholders Agreement for
Hines-Sumisei NY Core Office Trust, dated December 21, 2005, among the Trust and the Shareholders.

ARTICLE III

POWERS AND PURPOSE

     Section 3.1. Powers. The Trust is organized as a real estate investment trust under
the Maryland REIT Law for the purpose of engaging in any activity permitted to real estate

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investment trusts generally by the Maryland REIT Law and shall have all further powers
consistent with law and appropriate to attain its purposes, including, without limitation or
obligation, qualifying as a REIT.

     Section 3.2. Purpose. The purpose of the Trust is to acquire, own, hold, manage,
operate, lease, mortgage, finance, alter, repair and sell or otherwise dispose of, and in all other
respects act as an owner of, whether directly or indirectly through one or more subsidiaries, the
Properties. The Trust may engage in any activities that the Board of Trustees deems necessary or
advisable in connection with this purpose. The Trust will not engage in any business that is not
related to this purpose.

     Section 3.3. Tax Classification. Prior to the Initial Date, the Trust shall take such
steps as are necessary for the Trust to be classified as a partnership for U.S. federal income tax
purposes. After the Initial Date, the Trust promptly shall take such steps as are necessary in
order for the Trust to qualify as a REIT under the Code.

ARTICLE IV

RESIDENT AGENT

     The name of the resident agent of the Trust in the State of Maryland is The Corporation Trust
Incorporated, whose address is 300 East Lombard Street, Baltimore, Maryland 21202. The resident
agent is a Maryland corporation. The Trust may have such offices or places of business within or
outside the State of Maryland as the Board of Trustees may from time to time determine.

ARTICLE V

BOARD OF TRUSTEES

     Section 5.1. Powers.

          (a) Subject to the limitations set forth in this Declaration of Trust or in the Bylaws, (i)
the business and affairs of the Trust shall be managed under the direction of the Board of
Trustees, (ii) the Board of Trustees shall have the full, exclusive and absolute power, control and
authority over the property of the Trust and over the business of the Trust, and (iii) the Board of
Trustees may take any actions as in its sole judgment and discretion are necessary or desirable to
conduct the business of the Trust. This Declaration of Trust shall be construed with a presumption
in favor of the grant of power and authority to the Board of Trustees. Any construction of this
Declaration of Trust or determination made in good faith by the Board of Trustees concerning its
powers and authority hereunder shall be conclusive. The enumeration and definition of particular
powers of the Board of Trustees included in this Declaration of Trust or in the Bylaws shall in no
way be construed or deemed by inference or otherwise in any manner to exclude or limit the powers
conferred upon the Board of Trustees under the Maryland REIT Law, the general laws of the State of
Maryland or any other applicable laws.

          (b) Without limiting the foregoing general powers, except as otherwise provided in this
Declaration of Trust or in the Bylaws, the Board of Trustees, without any action by the
Shareholders, shall have and may exercise, on behalf of the Trust, without limitation, the power
to:

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               (i) acquire (through one or more subsidiaries), hold, sell, transfer and dispose of the
Properties, and exercise all rights, powers, privileges and other incidents of ownership or
possession with respect thereto, including the institution and settlement or compromise of suits
and administrative proceedings and other similar matters;

               (ii) manage the Properties generally, including, but not limited to, owning, holding,
financing, managing, servicing, operating, maintaining, improving, developing, rehabilitating,
leasing and otherwise dealing with the Properties; selling, exchanging, compromising, collecting,
mortgaging or otherwise disposing of all or any portion of the Properties and, in connection
therewith, accepting, collecting, holding, selling, exchanging, mortgaging, pledging or otherwise
disposing of evidences of indebtedness or other property received pursuant thereto;

               (iii) open, maintain and close bank accounts and draw checks or other orders for the payment
of money and open, maintain and close brokerage, money market fund and similar accounts;

               (iv) hire for usual and customary payments and expenses consultants, brokers, appraisers,
attorneys, accountants and such other agents for the Trust as it may deem necessary or advisable,
including, without limitation, for any management, construction, leasing and other property
management services, and authorize any such agent to act for and on behalf of the Trust;

               (v) enter into, execute, maintain and/or terminate contracts, undertakings, agreements and any
and all other documents and instruments in the name of the Trust, and do or perform all such things
as may be necessary or advisable in furtherance of the Trust’s powers, objects or purposes or to
the conduct of the Trust’s activities, including entering into agreements to dispose of any
Property which may include such representations, warranties, covenants, indemnities and guaranties
as the Board of Trustees deems necessary or advisable;

               (vi) incur indebtedness and provide indemnities in connection therewith, on a recourse (only
with respect to the assets of the Trust or any of its subsidiaries) or non-recourse basis, on
behalf of the Trust, either by the Trust or by an entity in which the Trust has an interest and, in
its discretion, secure any and all of such indebtedness with the assets of the Trust or any
Property or any entity in which the Trust holds an interest;

               (vii) make, in its sole discretion, any and all elections for U.S. federal, state, local and
foreign tax matters, including any election to adjust the basis of Trust property pursuant to
Sections 734(b), 743(b) and 754 of the Code or comparable provisions of state, local or foreign
law;

               (viii) adopt, amend and repeal Bylaws;

               (ix) elect officers in the manner prescribed in the Bylaws;

               (x) solicit proxies from Shareholders;

               (xi) approve the financial statements of the Trust;

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               (xii) approve or modify any annual capital or operating budget of the Trust; and

               (xiii) to do any other acts and deliver any other documents necessary or appropriate to the
foregoing powers.

          (c) After the Initial Date, it shall be the duty of the Board of Trustees to ensure that the
Trust, as promptly as practicable, satisfies the requirements for qualification as a REIT under the
Code, including, but not limited to, the requirements relating to the ownership of outstanding
Shares (as defined in Section 6.1), the nature of its assets, the sources of its income and the
amount and timing of its distributions to its Shareholders. After the Initial Date, the Board of
Trustees shall take no action to disqualify the Trust as a REIT or to otherwise revoke the Trust’s
election to be taxed as a REIT without the affirmative vote or consent of holders of Shares having
at least two-thirds of the voting power of the Shares entitled to vote on such matter at a meeting
of the Shareholders; provided that the Trust shall redeem the Class B Preferred Shares and
the Class B Common Shares in accordance with Section 6.7, notwithstanding any effect any such
redemption may have on the qualification or disqualification of the Trust as a REIT.

          (d) ERISA. It shall be the duty of the Board of Trustees to cause the Trust to use
reasonable best efforts at all times to ensure that it is a “real estate operating company” within
the meaning of 29 CFR § 2510.3-101.

          (e) Notwithstanding the foregoing, the Trust shall not take any action which, pursuant to any
provision of this Declaration of Trust, cannot be taken unless approved or consented to by a
majority or other specified percentage of the voting power of the outstanding Shares or of a
specified class or classes of Shares, unless each such specified approval or consent has been
obtained.

     Section 5.2. Number and Classification.

          (a) Subject to the rights of any class of Preferred Shares with respect to the election,
removal and replacement of members of the Board of Trustees, the Board of Trustees shall have a
number of members (the “Trustees”) fixed by, or in the manner provided in, the Bylaws, and
may be increased or decreased from time to time in the manner prescribed in the Bylaws.
Shareholder votes to elect Trustees shall be conducted at each annual meeting of Shareholders in
the manner provided in the Bylaws. Each Trustee shall hold office until the next annual meeting of
Shareholders and until a successor has been duly elected and qualified. Trustees may be elected to
an unlimited number of successive terms.

          (b) The Board of Trustees shall, as of the date of this Declaration of Trust, have seven
members, and the name and address of the Trustees who shall serve, subject to the provisions of
this Declaration of Trust, until the next annual meeting of Shareholders after the effective date
hereof and until their successors are duly elected and qualified are:

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	 	Name
	 	 	 	Address
	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 

	 	Jeffrey C. Hines
	 	 	 	2800 Post Oak Blvd., Suite 5000	 	 
	 

	 	 	 	 	 	Houston, Texas 77056	 	 
	 
	 

	 	C. Hastings Johnson
	 	 	 	2800 Post Oak Blvd., Suite 5000	 	 
	 

	 	 	 	 	 	Houston Texas 77056	 	 
	 
	 

	 	Charles M. Baughn
	 	 	 	2800 Post Oak Blvd., Suite 5000	 	 
	 

	 	 	 	 	 	Houston, Texas 77056	 	 
	 
	 

	 	Charles N. Hazen
	 	 	 	2800 Post Oak Blvd., Suite 5000	 	 
	 

	 	 	 	 	 	Houston, Texas 77056	 	 
	 
	 

	 	Edmund A. Donaldson
	 	 	 	2800 Post Oak Blvd., Suite 5000	 	 
	 

	 	 	 	 	 	Houston, Texas 77056	 	 
	 
	 

	 	Norio Morimoto
	 	 	 	101 East 52nd Street, 2nd Floor	 	 
	 

	 	 	 	 	 	New York, New York 10022	 	 
	 
	 

	 	Shinichi Kawanishi
	 	 	 	101 East 52nd Street, 2nd Floor	 	 
	 

	 	 	 	 	 	New York, New York 10022	 	 

          (c) Subject to the rights of holders of any class or series of Preferred Shares with respect
to the election, removal or replacement of Trustees, if a vacancy on the Board of Trustees shall
occur or be created (whether arising through death, retirement, resignation or removal or through
an increase in the number of Trustees), the vacancy shall be filled by the affirmative vote of a
majority of the remaining Trustees, at any regular meeting or any special meeting called for that
purpose, even though less than a quorum of the Board of Trustees may exist.

     Section 5.3. Resignation or Removal. Any Trustee may resign by written notice to the
Board, effective upon execution and delivery to the Trust of such written notice or upon any future
date specified in the notice. Subject to the rights of holders of any class or series of Preferred
Shares with respect to the election, removal or replacement of Trustees, a Trustee may be removed
at any time, with or without cause, by holders of a majority of the voting power of all outstanding
Shares entitled to be voted generally for the election of Trustees.

     Section 5.4. Determination of Best Interests of Trust. In determining what is in the
best interests of the Trust, a Trustee shall consider the interests of the Shareholders and, in his
sole and absolute discretion, may consider any other factors or interests allowed by the Maryland
REIT Law or other applicable law.

ARTICLE VI

SHARES OF BENEFICIAL INTEREST

     Section 6.1. Authorized Shares. The beneficial interest in the Trust shall be divided
into shares (the “Shares”). The total number of Shares which the Trust has authority to
issue is 1,500,000 Shares, consisting of (a) 750,000 common shares, $0.001 par value per share

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(“Common Shares”), and (b) 750,000 preferred shares, $0.001 par value per share
(“Preferred Shares”). Subject to Section 8.2, the Board of Trustees may amend this
Declaration of Trust to increase or decrease the aggregate number of Shares that the Trust is
authorized to issue. Pursuant to §8-203 of the Maryland REIT Law, the Board of Trustees may,
subject to Section 8.2, classify or reclassify any authorized but unissued Shares from time to time
by setting or changing the preferences, conversion or other rights, voting powers, restrictions,
limitations as to dividends or distributions, qualifications or terms and conditions of redemption
of the Shares without amending this Declaration of Trust. All Shares shall be personal property
entitling the Shareholders only to those rights provided in this Declaration of Trust or designated
by the Board of Trustees in accordance with this Declaration of Trust. The Shareholders shall have
no interest in the property of the Trust and shall have no right to compel any partition, division,
dividend or distribution of the Trust or the Trust’s assets except as specifically set forth in
this Declaration of Trust. The death or liquidation of a Shareholder shall not terminate the
Trust. All Shareholders are subject to the provisions of this Declaration of Trust and the Bylaws.

     Section 6.2. Common Shares. 300,000 of the Common Shares shall be of a class
designated “Class A Common Shares” (the “Class A Common Shares”) and 300,000 of the Common
Shares shall be of a class designated “Class B Common Shares” (the “Class B Common
Shares”). Each Class A Common Share and each Class B Common Share shall be identical in all
respects, except that each Class B Common Share shall be subject to redemption pursuant to Section
6.7. Common Shares shall not entitle the holder thereof to vote on any matter upon which holders
of Shares are entitled to vote. Subject to Section 8.2, the Board of Trustees may classify any
authorized but unissued Common Shares and reclassify any previously classified but unissued Common
Shares of any class or series, from time to time, into one or more classes or series of Shares.
The holders of all Common Shares will participate equally in (i) dividends payable to holders of
Common Shares when and as authorized and declared by the Board of Trustees and (ii) the Trust’s net
assets available for distribution to holders of Common Shares upon liquidation or dissolution.
Neither the consolidation or merger of the Trust with or into any other Person or Persons nor the
sale, transfer or lease of all or substantially all of the assets of the Trust shall itself be
deemed to be a liquidation, dissolution or winding up of the Trust within the meaning of this
Section 6.2.

     Section 6.3. Preferred Shares. 300,000 of the Preferred Shares shall be of a class
designated “Class A Preferred Shares” (the “Class A Preferred Shares”), 300,000 of the
Preferred Shares shall be of a class designated “Class B Preferred Shares” (the “Class B
Preferred Shares”), and 250 of the Preferred Shares shall be of a class designated “12.5% Class
D Cumulative Non-Voting Preferred Shares” (the “Class D Preferred Shares”). The rights,
preferences, privileges, and restrictions granted to and imposed on the Class A Preferred Shares,
the Class B Preferred Shares and the Class D Preferred Shares are set forth below in this Section
6.3 and elsewhere in this Declaration of Trust. Subject to Section 8.2, the Board of Trustees may
classify any authorized but unissued Preferred Shares and reclassify any previously classified but
unissued Preferred Shares of any class or series, from time to time, into one or more classes or
series of Shares.

          (a) Voting.

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               (i) Subject to the provisions of Article VII, each Class A Preferred Share and each Class B
Preferred Share shall entitle the holder thereof to one vote on each matter upon which holders of
such class of Preferred Shares are entitled to vote. Except for the separate voting rights of the
holders of the specified classes of Preferred Shares provided below in this Section 6.3(a) and
elsewhere in this Declaration of Trust, and as may otherwise be required by the laws of the State
of Maryland, the holders of outstanding Class A Preferred Shares and the holders of outstanding
Class B Preferred Shares entitled to vote thereon shall vote as one class with respect to the
election of Trustees and with respect to all other matters to be voted on by Shareholders of the
Trust, and no separate vote or consent of the holders of Class A Preferred Shares or the holders of
Class B Preferred Shares shall be required for the approval of any such matter. Holders of
Preferred Shares may not engage in cumulative voting in the election of Trustees.

               (ii) So long as any Class A Preferred Shares are outstanding, the Trust shall not, without
first obtaining the approval (by vote or written consent, as provided by law) of the holders of at
least a majority of the then outstanding Class A Preferred Shares voting as a separate class, take
any of the following actions:

                    (A) alter or change the rights, preferences or privileges herein of the Class A Preferred
Shares so as to affect adversely such Shares, including without limitation making any amendment to
Section 10.2(b) of this Declaration of Trust, or

                    (B) authorize any other equity security, including any other security convertible into or
exercisable for any equity security, having a preference over, or on a parity with, the Class A
Preferred Shares with respect to dividends, voting or upon liquidation.

               (iii) So long as any Class B Preferred Shares are outstanding, the Trust shall not, without
first obtaining the approval (by vote or written consent, as provided by law) of the holders of at
least a majority of the then outstanding Class B Preferred Shares voting as a separate class, take
any of the following actions:

                    (A) alter or change the rights, preferences or privileges herein of the Class B Preferred
Shares so as to affect adversely such Shares, including without limitation making any amendment to
Section 6.6, Section 6.7 or Section 10.2(b) of this Declaration of Trust,

                    (B) authorize any other equity security, including any other security convertible into or
exercisable for any equity security, having a preference over, or on a parity with, the Class B
Preferred Shares with respect to dividends or upon liquidation, or

                    (C) sell or otherwise dispose of any of the Properties to HILP or any of its Affiliates or to
Holding Partnership or any of its Affiliates, unless such sale or disposition is being made to fund
the redemption of Class B Preferred Shares and Class B Common Shares pursuant to Section 6.7 or to
fund payments required under Article 3 or Section 7.02 of the Investor Rights Agreement.

          (b) Liquidation and Dissolution. In the event of a liquidation, dissolution or
winding up of the Trust, whether voluntary or involuntary, after payment or provision for

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payment of the debts and liabilities of the Trust, the assets of the Trust remaining for
distribution shall be distributed in accordance with the provisions of Section 6.3(c)(iii) and
subsections (b), (c), and (d) of Section 6.6, as applicable. Neither the consolidation or merger
of the Trust with or into any other Person or Persons nor the sale, transfer or lease of all or
substantially all of the assets of the Trust shall itself be deemed to be a liquidation,
dissolution or winding up of the Trust within the meaning of this Section 6.3(b).

          (c) Class D Preferred Shares.

               (i) Rank. The Class D Preferred Shares shall, with respect to dividend rights and
rights upon liquidation, dissolution or winding up of the Trust, rank senior to all classes or
series of Common Shares, other classes or series of Preferred Shares of the Trust (including,
without limitation, Class A Preferred Shares and Class B Preferred Shares), and to all other equity
securities issued by the Trust; provided, however, that the term “equity
securities” shall not include convertible debt securities.

               (ii) Dividends.

                    (A) Holders of the then outstanding Class D Preferred Shares shall be entitled to receive,
when and as declared by the Board of Trustees, out of funds legally available for the payment of
dividends, cumulative preferential cash dividends at the rate of 12.5% of the total of $1,000.00
liquidation preference per annum plus all accumulated and unpaid dividends thereon. Such dividends
shall accrue on a daily basis and be cumulative from the first date on which any Class D Preferred
Share is issued, such issue date to be contemporaneous with the receipt by the Trust of
subscription funds for the Class D Preferred Shares (the “Original Issue Date”), and shall
be payable semi-annually in arrears on or before June 30 and December 31 of each year or, if not a
business day, the next succeeding business day (each, a “Dividend Payment Date”). Any
dividend payable on the Class D Preferred Shares for any partial dividend period will be computed
on the basis of a 360-day year consisting of twelve 30-day months (it being understood that the
dividend payable on June 30, 2005 will be for less than the full dividend period). A “dividend
period” shall mean, with respect to the first “dividend period,” the period from and including
the Original Issue Date to and including the first Dividend Payment Date, and with respect to each
subsequent “dividend period,” the period from but excluding a Dividend Payment Date to and
including the next succeeding Dividend Payment Date or other date as of which accrued dividends are
to be calculated. Dividends will be payable to holders of record as they appear in the shares
records of the Trust at the close of business on the applicable record date, which shall be the
fifteenth day of the calendar month in which the applicable Dividend Payment Date falls or on such
other date designated by the Board of Trustees of the Trust for the payment of dividends that is
not more than 30 nor less than 10 days prior to such Dividend Payment Date (each, a “Dividend
Record Date”).

                    (B) No dividends on Class D Preferred Shares shall be declared by the Trust or paid or set
apart for payment by the Trust at such time as the terms and provisions of any agreement of the
Trust, including any agreement relating to its indebtedness, prohibit such declaration, payment or
setting apart for payment or provide that such declaration, payment or setting apart for payment
would constitute a breach thereof or a default thereunder, or if such declaration or payment shall
be restricted or prohibited by law.

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                    (C) Notwithstanding the foregoing, dividends on the Class D Preferred Shares shall accrue
whether or not the terms and provisions set forth in Section 6.3(c)(ii)(B) hereof at any time
prohibit the current payment of dividends, whether or not the Trust has earnings, whether or not
there are funds legally available for the payment of such dividends and whether or not such
dividends are authorized or declared. Furthermore, dividends will be declared and paid when due in
all events to the fullest extent permitted by law and, if revaluation of the Trust or its assets
would permit payment of dividends which would otherwise be prohibited, then such revaluation shall
be done. Accrued but unpaid dividends on the Class D Preferred Shares will accumulate as of the
Dividend Payment Date on which they first become payable.

                    (D) Except as provided in Section 6.3(c)(ii)(E) below, unless full cumulative dividends on the
Class D Preferred Shares have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past dividend periods and the
then current dividend period, no dividends (other than in Common Shares or in shares of any class
or series of Preferred Shares ranking junior to the Class D Preferred Shares as to dividends and
upon liquidation (including, without limitation, Class A Preferred Shares and Class B Preferred
Shares)) shall be declared or paid or set aside for payment nor shall any other distribution be
declared or made upon the Common Shares, or any Preferred Shares of the Trust ranking junior to the
Class D Preferred Shares as to dividends or upon liquidation, nor shall any Common Shares, or any
Preferred Shares of the Trust ranking junior to the Class D Preferred Shares as to dividends or
upon liquidation be redeemed, purchased or otherwise acquired for any consideration (or any moneys
be paid to or made available for a sinking fund for the redemption of any such shares) by the Trust
(except by conversion into or exchange for other shares of beneficial interest of the Trust ranking
junior to the Class D Preferred Shares as to dividends and upon liquidation and except for
transfers made pursuant to the provisions of Article VII).

                    (E) When dividends are not paid in full (or a sum sufficient for such full payment is not so
set apart) on the Class D Preferred Shares, all dividends declared upon the Class D Preferred
Shares shall be declared pro rata.

                    (F) Any dividend payment made on shares of the Class D Preferred Shares shall first be
credited against the earliest accrued but unpaid dividend due with respect to such shares which
remains payable. Holders of the Class D Preferred Shares shall not be entitled to any dividend,
whether payable in cash, property or shares in excess of full cumulative dividends on the Class D
Preferred Shares as described above.

               (iii) Liquidation Preference.

                    (A) Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of
the Trust, the holders of Class D Preferred Shares then outstanding are entitled to be paid out of
the assets of the Trust, legally available for distribution to its shareholders, a liquidation
preference of $1,000.00 per share, plus an amount equal to any accrued and unpaid dividends to the
date of payment, plus, if applicable, the Redemption Premium (as defined below) then in effect,
before any distribution of assets is made to holders of

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Common Shares or any class or series of Preferred Shares of the Trust that ranks junior to the
Class D Preferred Shares as to liquidation rights.

                    (B) In the event that, upon any such voluntary or involuntary liquidation, dissolution or
winding up, the available assets of the Trust are insufficient to pay the amount of the liquidating
distributions on all outstanding Class D Preferred Shares, then the holders of the Class D
Preferred Shares shall share ratably in any such distribution of assets in proportion to the full
liquidating distributions to which they would otherwise be respectively entitled.

                    (C) After payment of the full amount of the liquidating distributions to which they are
entitled, the holders of Class D Preferred Shares will have no right or claim to any of the
remaining assets of the Trust.

                    (D) Written notice of any such liquidation, dissolution or winding up of the Trust, stating
the payment date or dates when, and the place or places where, the amounts distributable in such
circumstances shall be payable, shall be given by first class mail, postage pre-paid, not less than
15 nor more than 60 days prior to the payment date stated therein, to each record holder of the
Class D Preferred Shares at the respective addresses of such holders as the same shall appear on
the shares transfer records of the Trust.

                    (E) The consolidation or merger of the Trust with or into any other corporation, trust or
entity or of any other entity with or into the Trust, or the sale, lease or conveyance of all or
substantially all of the assets or business of the Trust, shall not be deemed to constitute a
liquidation, dissolution or winding up of the Trust.

               (iv) Redemption.

                    (A) Right of Optional Redemption. The Trust, at its option and upon not less than 15
nor more than 60 days’ written notice, may redeem shares of the Class D Preferred Shares, in whole
or in part, at any time or from time to time, for cash at a redemption price of $1,000.00 per
share, plus all accrued and unpaid dividends thereon, whether or not declared, to and including the
date fixed for redemption (except as provided in Section 6.3(c)(iv)(C) below), plus a redemption
premium per share (each, a “Redemption Premium”) as follows: (1) until December 31, 2006,
$200; (2) from January 1, 2007 to December 31, 2007, $150; (3) from January 1, 2008 to December 31,
2008, $100; (4) from January 1, 2009 to December 31, 2009, $50; and (5) thereafter, no Redemption
Premium. If less than all of the outstanding Class D Preferred Shares are to be redeemed, the
Class D Preferred Shares to be redeemed shall be selected pro rata (as nearly as may be practicable
without creating fractional shares) or by any other equitable method determined by the Trust.

                    (B) Limitations on Redemption. Unless full cumulative dividends on all Class D
Preferred Shares shall have been, or contemporaneously are, declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all past dividend periods and the then
current dividend period, no Class D Preferred Shares shall be redeemed unless all outstanding Class
D Preferred Shares are simultaneously redeemed, and the Trust shall not purchase or otherwise
acquire directly or indirectly any Class D Preferred Shares (except by

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exchange for shares of beneficial interest of the Trust ranking junior to the Class D
Preferred Shares as to dividends and upon liquidation); provided, however, that the
foregoing shall not prevent the purchase by the Trust of shares transferred to a Charitable Trust
(as defined in Section 7.1) pursuant to Article VII in order to ensure that the Trust remains
qualified as a REIT for federal income tax purposes or the purchase or acquisition of Class D
Preferred Shares pursuant to a purchase or exchange offer made on the same terms to holders of all
outstanding Class D Preferred Shares.

                    (C) Rights to Dividends on Shares Called for Redemption. Immediately prior to or upon
any redemption of Class D Preferred Shares, the Trust shall pay, in cash, any accumulated and
unpaid dividends to and including the redemption date, unless a redemption date falls after a
Dividend Record Date and prior to the corresponding Dividend Payment Date, in which case each
holder of Class D Preferred Shares at the close of business on such Dividend Record Date shall be
entitled to the dividend payable on such shares on the corresponding Dividend Payment Date
notwithstanding the redemption of such shares before such Dividend Payment Date.

                    (D) Procedures for Redemption.

                         (I) Notice of redemption will be mailed by or on behalf of the Trust, postage prepaid, not
less than 15 nor more than 60 days prior to the redemption date, addressed to the respective
holders of record of the Class D Preferred Shares to be redeemed at their respective addresses as
they appear on the shares transfer records of the Trust. No failure to give such notice or any
defect therein or in the mailing thereof shall affect the validity of the proceedings for the
redemption of any Class D Preferred Shares except as to the holder to whom notice was defective or
not given.

                         (II) In addition to any information required by law or by the applicable rules of any exchange
upon which Class D Preferred Shares may be listed or admitted to trading, such notice shall state:
(a) the redemption date; (b) the redemption price; (c) the number of Class D Preferred Shares to be
redeemed; (d) the place or places where the Class D Preferred Shares are to be surrendered (if so
required in the notice) for payment of the redemption price; and (e) that dividends on the shares
to be redeemed will cease to accrue on such redemption date. If less than all of the Class D
Preferred Shares held by any holder is to be redeemed, the notice mailed to such holder shall also
specify the number of Class D Preferred Shares held by such holder to be redeemed.

                         (III) If notice of redemption of any Class D Preferred Shares has been given and if the funds
necessary for such redemption have been set aside by the Trust in trust for the benefit of the
holders of any Class D Preferred Shares so called for redemption, then, from and after the
redemption date, dividends will cease to accrue on such Class D Preferred Shares, such Class D
Preferred Shares shall no longer be deemed outstanding and all rights of the holders of such shares
will terminate, except the right to receive the redemption price. Holders of Class D Preferred
Shares to be redeemed shall surrender such Class D Preferred Shares at the place designated in such
notice and, upon surrender in accordance with said notice of the certificates for Class D Preferred
Shares so redeemed (properly endorsed or assigned for transfer, if the Trust shall so require and
the notice shall so state), such Class D Preferred Shares shall be

13

 

redeemed by the Trust at the redemption price plus any accrued and unpaid dividends payable
upon such redemption. In case less than all the Class D Preferred Shares represented by any such
certificate are redeemed, a new certificate or certificates shall be issued evidencing the
unredeemed Class D Preferred Shares without cost to the holder thereof.

                         (IV) The deposit of funds with a bank or trust corporation for the purpose of redeeming Class
D Preferred Shares shall be irrevocable except that:

                              (a) the Trust shall be entitled to receive from such bank or trust corporation the interest or
other earnings, if any, earned on any money so deposited in trust, and the holders of any shares
redeemed shall have no claim to such interest or other earnings; and

                              (b) any balance of monies so deposited by the Trust and unclaimed by the holders of the Class
D Preferred Shares entitled thereto at the expiration of two years from the applicable redemption
dates shall be repaid, together with any interest or other earnings thereon, to the Trust, and
after any such repayment, the holders of the shares entitled to the funds so repaid to the Trust
shall look only to the Trust for payment without interest or other earnings.

                    (E) Application of Article VII. The Class D Preferred Shares are subject to the
provisions of Article VII, including, without limitation, the provision for the redemption of
shares transferred to the Charitable Trust.

                    (F) Status of Redeemed Shares. Any Class D Preferred Shares that shall at any time
have been redeemed or otherwise acquired by the Trust shall, after such redemption or acquisition,
have the status of authorized but unissued Preferred Shares, without designation as to classes or
series until such shares are once more classified and designated as part of a particular class or
series by the Board of Trustees.

               (v) Voting Rights. Holders of the Class D Preferred Shares will not have any voting
rights.

               (vi) Conversion. The Class D Preferred Shares are not convertible into or
exchangeable for any other property or securities of, or interest in, the Trust.

     Section 6.4. Classified or Reclassified Shares. Prior to the issuance of Shares
classified or reclassified by the Board pursuant to Section 6.1, the Board of Trustees by
resolution shall, subject to Section 8.2, (a) designate that class or series to distinguish it from
all other classes and series of Shares; (b) specify the number of Shares to be included in the
class or series; (c) set, subject to the provisions of Article VI and VII and subject to the
express terms, rights, powers and preferences of any class or series of Shares outstanding at the
time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to
dividends or other distributions, qualifications and terms and conditions of redemption for each
class or series; and (d) cause the Trust to file articles supplementary with the Department
pursuant to §8-203(b) of the Maryland REIT Law. Any of the terms of any class or series of Shares
established pursuant to clause (c) of this Section 6.4 or otherwise in this Declaration of Trust
may be made dependent upon facts or events ascertainable outside this Declaration of Trust
(including

14

 

determinations or actions by the Board of Trustees) and may vary among holders thereof,
provided that the manner in which such facts, events or variations shall operate upon the
terms of such class or series of Shares is clearly and expressly set forth in this Declaration of
Trust.

     Section 6.5. Authorization by Board of Share Issuance.

          (a) Except for the limitations set forth in this Article VI, the Board of Trustees may
authorize the issuance from time to time of Shares of any class or series, whether now or hereafter
authorized, or securities or rights convertible into Shares of any class or series, whether now or
hereafter authorized, for such consideration (whether in cash, property, past or future services,
obligation for future payment or otherwise) as the Board of Trustees may deem advisable (or without
consideration in the case of a share split, share dividend or as otherwise allowed by the Maryland
REIT Law in order to qualify as a REIT), subject to Section 8.2 hereof and such other restrictions
or limitations, if any, as may be set forth in this Declaration of Trust or the Bylaws.

          (b) Notwithstanding any other provision in this Declaration of Trust, no determination shall
be made by the Board of Trustees and no transaction shall be entered into by the Trust that would
cause any Shares or other beneficial interest in the Trust not to constitute “transferable shares”
or “transferable certificates of beneficial interest” under Section 856(a)(2) of the Code or which
would cause any distribution to constitute a preferential dividend as described in Section 562(c)
of the Code. Additionally, the Trust may, without the consent or approval of any Shareholder,
issue fractional Shares, eliminate a fraction of a Share by rounding up or down to a full Share,
arrange for the disposition of a fraction of a Share by the person entitled to it, or pay cash for
the fair value of a fraction of a Share. When issued, all Shares shall be non-assessable.

          (c) The Trust shall not issue any Class B Preferred Shares or Class B Common Shares other than
as required or permitted under the Organization Agreement and Section 8.2 hereof.

     Section 6.6. Dividends and Distributions.

          (a) Subject to the preferences and rights of any class or series of Preferred Shares, the
Board of Trustees may from time to time authorize and declare to Shareholders such dividends and
distributions, in cash or, subject to Section 8.2, other assets of the Trust, or in securities of
the Trust or from any other source as the Board of Trustees in its discretion shall determine.
After the Initial Date, the Board of Trustees shall endeavor to declare and pay promptly such
dividends and distributions as shall be necessary for the Trust to qualify as a REIT;
provided, however, that Shareholders shall have no right to any dividend or
distribution unless and until authorized and declared by the Board. The exercise of the powers and
rights of the Board of Trustees pursuant to this Section 6.6 shall be subject to the provisions of
any class or series of Shares at the time outstanding. Dividends shall be payable only as and when
declared by the Board of Trustees out of assets of the Trust legally available therefor.

15

 

          (b) Prior to the Class B Redemption Date, but subject to subsections (c) and (d) of this
Section 6.6, any dividends authorized and declared by the Board of Trustees, including liquidating
dividends, but excluding share dividends, shall be declared and paid as follows:

               (i) first, to the holders of Class A Preferred Shares and Class B Preferred Shares, prior and
in preference to any declaration or payment of any dividends to the holders of Common Shares, pro
rata based on the number of such Preferred Shares held by each such holder, until the holders of
the Class B Preferred Shares have received the Class B Preferred Capital Amount; and

               (ii) thereafter, any remaining amount available to be distributed and all subsequent dividends
declared and paid by the Trust shall be paid to the holders of Common Shares pro rata based on the
number of Common Shares held by each such holder.

          (c) After the Class B Redemption Date, so long as any Class B Preferred Shares are
outstanding, any dividends, including liquidating dividends, but excluding share dividends, shall
be declared and paid as follows:

               (i) first, prior and in preference to the declaration or payment of any dividends to the
holders of any other class of Preferred Shares or Common Shares, the Class B Redemption Interest
Component to the holders of Class B Units pro rata, based on the number of Class B Units held by
each such holder;

               (ii) second, prior and in preference to the declaration or payment of any dividends to the
holders of any other class of Preferred or Common Shares, to the holders of Class B Units until
they have received an amount equal to the Class B Redemption Capital Component, less any amounts
distributed to such holders prior to the Class B Redemption Date from the proceeds of the sale or
other disposition of a Property which was sold or otherwise disposed of after the Class B Notice
Date and any amounts previously distributed to such holders pursuant to this Section 6.6(c)(ii),
pro rata based on the number of Class B Units held by each such holder; and

               (iii) thereafter, any dividends authorized and declared by the Board of Trustees, including
liquidating dividends, but excluding share dividends, shall be paid to the holders of Common Shares
other than Class B Common Shares, pro rata, based on the number of Common Shares held by each such
holder.

          (d) Notwithstanding the foregoing provisions of this Section 6.6, no dividends (other than in
Common Shares or in shares of any class or series of Preferred Shares ranking junior to the Class D
Preferred Shares as to dividends and upon liquidation (including, without limitation, Class A
Preferred Shares and Class B Preferred Shares)) shall be paid on the Class A Preferred Shares or
the Class B Preferred Shares unless full cumulative dividends on the Class D Preferred Shares have
been or contemporaneously are declared and paid or declared and a sum sufficient for the payment
thereof is set apart for payment for all past dividend periods and the then current dividend
period.

     Section 6.7. Mandatory Redemption of Class B Units.

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          (a) On or prior to the tenth anniversary of the date of the First Closing (as defined in the
Organization Agreement (the “First Closing Date”) (the date of such anniversary, the
“Scheduled Class B Redemption Date”), but no earlier than the ninth anniversary of the
First Closing Date (the date of such earlier anniversary, the “Class B Notice Date”), the
Trust shall redeem all outstanding Class B Units, unless, prior to the Class B Notice Date, the
holders of Class B Preferred Shares elect, by a majority vote or consent of all such holders voting
as a separate class, to extend the Scheduled Class B Redemption Date and evidence of such vote or
consent is delivered to the Secretary of the Trust on or before the Business Day first preceding
the Class B Notice Date. Upon delivery of such notice, the Scheduled Class B Redemption Date and
the Class B Notice Date shall each be extended by one year, and the provisions of this Section 6.7
shall apply as such dates have been so extended. The Scheduled Class B Redemption Date and the
Class B Notice Date may be extended by any number of one year periods by a new vote or consent of
the holders of Class B Preferred Shares pursuant to this Section 6.7(a) prior to each successive
Class B Notice Date and delivery of notice thereof as provided herein. If, in any year, the
Scheduled Class B Redemption Date is not extended as provided in this Section 6.7(a), then the
Scheduled Class B Redemption Date for such year shall be deemed the “Class B Redemption
Date.”

          (b) The redemption price to be paid for each outstanding Class B Unit shall be determined by
reference to the Class B Redemption Portion attributable to each Property held by the Trust on the
Class B Notice Date which is allocable to such Share.

          (c) The Trust shall accomplish the redemption of all outstanding Class B Preferred Shares and
all outstanding Class B Common Shares by paying the Class B Redemption Amount to the registered
holders of the outstanding Class B Preferred Shares pro rata based on the number of Class B
Preferred Shares held by each such holder by wire transfer of immediately available funds to an
account designated by such holders or to an escrow account established by the Trust to receive such
funds and distribute them to such holders. Upon payment in full of the Class B Redemption Amount
pursuant to the preceding sentence, each outstanding Class B Preferred Share and each outstanding
Class B Common Share shall automatically be cancelled and retired and shall cease to exist, and the
holders of any certificate representing Class B Preferred Shares or Class B Common Shares shall
cease to have any rights with respect thereto, except that holders of certificates representing
Class B Preferred Shares shall be entitled to receive a pro rata portion of the Class B Redemption
Amount based on the number of such Shares represented by such certificates.

ARTICLE VII

RESTRICTIONS ON TRANSFER AND OWNERSHIP

     Section 7.1. Definitions. For the purpose of this Article VII, the following terms
shall have the following meanings:

          “Aggregate Share Ownership Limit”: 9.9% in value of the aggregate of the outstanding
Shares. The value of the outstanding Shares shall be determined by the Board of Trustees in good
faith, which determination shall be conclusive for all purposes hereof.

17

 

          “Beneficial Ownership”: Ownership of Shares by a Person, whether the interest in
Shares is held directly or indirectly (including by a nominee), and shall include interests that
would be treated as owned through the application of Section 544 of the Code, as modified by
Section 856(h)(1)(B) of the Code. The terms “Beneficial Owner,” “Beneficially Owns” and
“Beneficially Owned” shall have the correlative meanings.

          “Charitable Beneficiary”: One or more beneficiaries of a Charitable Trust as
determined pursuant to Section 7.3(g), provided that each such organization must be
described in Section 501(c)(3) of the Code and contributions to each such organization must be
eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

          “Charitable Trust”: Any trust created by the Board for the purposes of Section 7.3.

          “Charitable Trust Trustee”: The trustee of a Charitable Trust. The Charitable Trust
Trustee shall be appointed by the Trust and shall be a Person unaffiliated with the Trust and any
Prohibited Owner.

          “Common Share Ownership Limit”: 9.9% (in value or in number of shares, whichever is
more restrictive) of the aggregate number of the outstanding Common Shares. The number and value of
outstanding Common Shares shall be determined by the Board of Trustees in good faith, which
determination shall be conclusive for all purposes hereof.

          “Control”: With respect to a Person, the possession (directly or indirectly) of the
power to direct or cause the direction of the management and policies of such Person, whether
through ownership of voting securities, by contract or otherwise.

          “Constructive Ownership”: Ownership of Shares by a Person, whether the interest in
Shares is held directly or indirectly (including by a nominee), and shall include interests that
would be treated as owned through the application of Section 318(a) of the Code, as modified by
Section 856(d)(5) of the Code. The terms “Constructive Owner,” “Constructively Owns” and
“Constructively Owned” shall have the correlative meanings.

          “Excepted Holder”: A Shareholder of the Trust for whom an Excepted Holder Limit is
created by this Article VII or by the Board of Trustees pursuant to Section 7.2(g).

          “Excepted Holder Limit”: Provided that the affected Excepted Holder agrees to
comply with the requirements established by the Board of Trustees pursuant to Section 7.2(g), the
percentage limit established by the Board of Trustees for such Excepted Holder pursuant to Section
7.2(g).

          “Market Price” With respect to any Share as of any date, the amount that would be
distributed to the holder of such Share if the Trust sold or caused to be sold its interest in each
of the Properties as of such date for its fair market value as of such date (as determined in good
faith by the Board of Trustees) and the net proceeds of such a sale (taking into account expected
closing and transaction costs, as determined in good faith by the Board of Trustees) were
distributed to the Shareholders in accordance with Section 6.6.

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          “Person”: An individual, corporation, partnership, estate, trust, a portion of a
trust permanently set aside for or to be used exclusively for the purposes described in Section
642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the
Code, joint stock company or other entity and also includes a group as that term is used for
purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and (for purposes
of Article VII) a group to which an Excepted Holder Limit applies.

          “Prohibited Owner”: With respect to any purported Transfer, any Person who, but for
the provisions of Section 7.2(a), would Beneficially Own or Constructively Own Shares in violation
of the provisions of Section 7.2(a)(i), and if appropriate in the context, shall also mean any
Person who would have been the record owner of Shares that the Prohibited Owner would have so
owned.

          “Restriction Termination Date”: The first day after the Initial Date on which the
Board of Trustees determines that it is no longer in the best interests of the Trust to attempt to,
or continue to, qualify as a REIT or that compliance with the restrictions and limitations on
Beneficial Ownership, Constructive Ownership and Transfers of Shares set forth herein is no longer
required in order for the Trust to qualify as a REIT.

          “Transfer”: Any direct or indirect issuance, sale, transfer, gift, assignment, devise
or other disposition, as well as any other event that causes any Person to acquire Beneficial
Ownership or Constructive Ownership, or any agreement to take any such actions or cause any such
events, of Shares or the right to vote or receive dividends on Shares, including (a) the granting
or exercise of any option (or any disposition of any option), (b) any disposition of any securities
or rights convertible into or exchangeable for Shares or any interest in Shares or any exercise of
any such conversion or exchange right and (c) Transfers of interests in other entities that result
in changes in Beneficial or Constructive Ownership of Shares; in each case, whether voluntary or
involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by
operation of law or otherwise. The terms “Transferring” and “Transferred” shall have the
correlative meanings.

     Section 7.2. Ownership and Transfer Restrictions.

          (a) Ownership Limitations. During the period commencing on the Initial Date and prior
to the Restriction Termination Date:

               (i) Basic Restrictions.

                    (A) (1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own
Shares in excess of the Aggregate Share Ownership Limit, (2) no Person, other than an Excepted
Holder, shall Beneficially Own or Constructively Own Common Shares in excess of the Common Share
Ownership Limit and (3) no Excepted Holder shall Beneficially Own or Constructively Own Shares in
excess of the Excepted Holder Limit for such Excepted Holder.

                    (B) No Person shall Beneficially or Constructively Own Shares to the extent that such
Beneficial or Constructive Ownership of Shares would result in the Trust being “closely held”
within the meaning of Section 856(h) of the Code (without regard to

19

 

whether the ownership interest is held during the last half of a taxable year), or otherwise
failing to qualify as a REIT (including, but not limited to, Beneficial or Constructive Ownership
that would result in the Trust owning (actually or Constructively) an interest in a tenant that is
described in Section 856(d)(2)(B) of the Code if the income derived by the Trust from such tenant
would cause the Trust to fail to satisfy any of the gross income requirements of Section 856(c) of
the Code).

                    (C) No Person shall Beneficially or Constructively Own Shares to the extent that such
Beneficial or Constructive Ownership of Shares would result in the Trust failing to qualify as a
“domestically-controlled REIT” as defined in Section 897(h)(4) of the Code.

                    (D) Notwithstanding any other provisions contained herein, any Transfer of Shares that, if
effective, would result in Shares being beneficially owned by less than 100 Persons (determined
under the principles of Section 856(a)(5) of the Code) shall be void ab initio, and the intended
transferee shall acquire no rights in such Shares.

               (ii) Transfer in Trust. If any Transfer of Shares occurs which, if effective, would
result in any Person Beneficially Owning or Constructively Owning Shares in violation of Section
7.2(a)(i)(A) — (C),

                    (A) then that number of Shares the Beneficial or Constructive Ownership of which otherwise
would cause such Person to violate Section 7.2(a)(i)(A) — (C) (rounded to the nearest whole share)
shall be automatically transferred to a Charitable Trust for the benefit of a Charitable
Beneficiary, as described in Section 7.3, effective as of the close of business on the Business Day
prior to the date of such Transfer, and such Person shall acquire no rights in such Shares, or

                    (B) if the transfer to the Charitable Trust described in clause (A) of this sentence would not
be effective for any reason to prevent the violation of Section 7.2(a)(i)(A) — (C), then the
Transfer of that number of Shares that otherwise would cause any Person to violate Section
7.2(a)(i)(A) — (C) shall be void ab initio, and the intended transferee shall acquire no rights in
such Shares.

          (b) Remedies for Breach. If the Board of Trustees or any duly authorized committee
thereof shall at any time determine in good faith that a Transfer or other event has taken place
that results in a violation of Section 7.2(a) or that a Person intends to acquire or has attempted
to acquire Beneficial or Constructive Ownership of any Shares in violation of Section 7.2(a)
(whether or not such violation is intended), the Board of Trustees or a committee thereof shall
take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or
other event, including, without limitation, causing the Trust to redeem Shares, refusing to give
effect to such Transfer on the books of the Trust or instituting proceedings to enjoin such
Transfer or other event; provided, however, that any Transfers or attempted
Transfers or other events in violation of Section 7.2(a) shall automatically result in the transfer
to the Charitable Trust described in Sections 7.2(a)(ii) and 7.3, and, where applicable, such
Transfer (or other event) shall be void ab initio as provided above irrespective of any action (or
non-action) by the Board of Trustees or a committee thereof.

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          (c) Notice of Restricted Transfer. Any Person who acquires or attempts or intends to
acquire Beneficial Ownership or Constructive Ownership of Shares that will or may violate Section
7.2(a)(i), any Person that is an entity whose stock or equity interests are being transferred,
redeemed, acquired or issued in a manner that will or may violate Section 7.2(a)(i), or any Person
who would have owned Shares that resulted in a transfer to the Charitable Trust pursuant to the
provisions of Section 7.2(a)(ii), shall immediately give written notice to the Trust of such event,
or in the case of such a proposed or attempted transaction, give at least 15 days’ prior written
notice, and shall provide to the Trust such other information as the Trust may request in order to
determine the effect, if any, of such Transfer on the Trust’s status as a REIT.

          (d) Owners Required To Provide Information. From the Initial Date and prior to the
Restriction Termination Date:

               (i) Every owner of more than one-half of one percent (0.5%) (or such lower percentage as
required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding Shares,
within 30 days after the end of each taxable year, shall give written notice to the Trust stating
the name and address of such owner, the number of Shares Beneficially Owned by such owner and a
description of the manner in which such Shares are held. Each such owner shall provide to the Trust
such additional information as the Trust may request in order to determine the effect, if any, of
such Beneficial Ownership on the Trust’s status as a REIT and to ensure compliance with the
Aggregate Share Ownership Limit. In cases where such owner holds Shares on behalf of another
Person (the “Actual Owner”) who is required to include the dividends or distributions
received from such Shares in its tax return, the foregoing information shall be furnished for, by
or on behalf of each Actual Owner.

               (ii) Each Person who is a Beneficial or Constructive Owner of Shares and each Person
(including the Shareholder of record) who is holding Shares for a Beneficial or Constructive Owner
shall provide to the Trust such information as the Trust may request, in good faith, in order to
determine the Trust’s status as a REIT and to comply with requirements of any taxing authority or
governmental authority or to determine such compliance.

          (e) Remedies Not Limited. Subject to Section 5.1 of this Declaration of Trust,
nothing contained in this Section 7.2 shall limit the authority of the Board of Trustees to take
such other action as it deems necessary or advisable to protect the Trust and the interests of its
Shareholders in preserving the Trust’s status as a REIT.

          (f) Ambiguity. In the case of an ambiguity in the application of any of the
provisions of any sections of this Article VII, the Board of Trustees shall have the power to
determine the application of the provisions of such sections with respect to any situation based on
the facts known to it. In the event any section of this Article VII requires an action by the
Board of Trustees and this Declaration of Trust fails to provide specific guidance with respect to
such action, the Board of Trustees shall have the power to determine the action to be taken so long
as such action is not contrary to the provisions of this Article VII.

          (g) Exceptions.

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               (i) Subject to Section 7.2(a)(i)(B), the Board of Trustees, in its sole discretion, may exempt
a Person from the Aggregate Share Ownership Limit and/or the Common Share Ownership Limit, as the
case may be, and may establish or increase an Excepted Holder Limit for such Person if:

                    (A) the Board of Trustees obtains such representations and undertakings from such Person as
are reasonably necessary to ascertain that no individual’s Beneficial or Constructive Ownership of
such Shares will violate Section 7.2(a)(i)(B);

                    (B) such Person does not own, actually or Constructively, an interest in a tenant of the Trust
(or a tenant of any entity owned or Controlled by the Trust) that would cause the Trust to own,
actually or Constructively, more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the
Code) in such tenant, and the Board of Trustees obtains such representations and undertakings from
such Person as are reasonably necessary to ascertain this fact and as the Board of Trustees
otherwise determines to be necessary or advisable (for this purpose, a tenant from whom the Trust
(or an entity owned or Controlled by the Trust) derives (and is expected to continue to derive) a
sufficiently small amount of revenue such that, in the opinion of the Board of Trustees, rent from
such tenant would not adversely affect the Trust’s ability to qualify as a REIT, shall not be
treated as a tenant of the Trust); and

                    (C) such Person agrees that any violation or attempted violation of such representations or
undertakings (or other action which is contrary to the restrictions contained in Sections 7.2(a)
through 7.2(f)) will result in such Shares being automatically transferred to a Charitable Trust in
accordance with Sections 7.2(a)(ii) and 7.3.

               (ii) Prior to granting any exception pursuant to Section 7.2(g)(i), the Board of Trustees may
require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in
form and substance satisfactory to the Board of Trustees in its sole discretion, as it may deem
necessary or advisable in order to determine or ensure the Trust’s status as a REIT.
Notwithstanding receipt of any ruling or opinion, the Board of Trustees may impose such conditions
or restrictions as it deems appropriate in connection with granting such exception.

               (iii) Subject to Section 7.2(a)(i)(B), an underwriter which participates in a public offering
or a private placement of Shares (or securities convertible into or exchangeable for Shares) may
Beneficially Own or Constructively Own Shares (or securities convertible into or exchangeable for
Shares) in excess of the Aggregate Share Ownership Limit, the Common Share Ownership Limit or both
such limits, but only to the extent necessary to facilitate such public offering or private
placement.

               (iv) The Board of Trustees may only reduce the Excepted Holder Limit for an Excepted Holder:
(A) with the written consent of such Excepted Holder at any time, or (B) pursuant to the terms and
conditions of the agreements and undertakings entered into with such Excepted Holder in connection
with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder
Limit shall be reduced to a percentage that is less than the Common Share Ownership Limit.

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          (h) Increase in Aggregate Share Ownership and Common Share Ownership Limits. The
Board of Trustees may from time to time, in its sole discretion, increase the Common Share
Ownership Limit and the Aggregate Share Ownership Limit.

          (i) Legend. If the Trust issues certificates for Shares, each certificate for Shares
shall bear substantially the following legend:

“The shares represented by this certificate are subject to
restrictions on Beneficial and Constructive Ownership and Transfer
for the purpose of the Trust’s maintenance of its status as a Real
Estate Investment Trust (a “REIT”) under the Internal Revenue Code
of 1986, as amended (the “Code”). Subject to certain further
restrictions and except as expressly provided in the Trust’s
Declaration of Trust, (i) no Person may Beneficially or
Constructively Own Common Shares of the Trust in excess of 9.9% (in
value or number of shares) of the outstanding Common Shares of the
Trust unless such Person is an Excepted Holder (in which case the
Excepted Holder Limit shall be applicable); (ii) no Person may
Beneficially or Constructively Own Shares of the Trust in excess of
9.9% of the value of the total outstanding Shares of the Trust,
unless such Person is an Excepted Holder (in which case the Excepted
Holder Limit shall be applicable); (iii) no Person may Beneficially
or Constructively Own Shares that would result in the Trust being
“closely held” under Section 856(h) of the Code or otherwise cause
the Trust to fail to qualify as a REIT; (vi) no Person shall
Beneficially or Constructively Own Shares to the extent that such
Beneficial or Constructive Ownership of Shares would result in the
Trust failing to qualify as a “domestically-controlled REIT” as
defined in Section 897(h)(4) of the Code; and (v) no Person may
Transfer Shares if such Transfer would result in Shares of the Trust
being owned by fewer than 100 Persons. Any Person who Beneficially
or Constructively Owns or attempts to Beneficially or Constructively
Own Shares which cause or will cause a Person to Beneficially or
Constructively Own Shares in excess or in violation of the above
limitations must immediately notify the Trust. If any of the
foregoing restrictions on transfer or ownership are violated, the
Shares represented hereby will be automatically transferred to a
Trustee of a Charitable Trust for the benefit of one or more
Charitable Beneficiaries. In addition, upon the occurrence of
certain events, attempted Transfers in violation of the restrictions
described above may be void ab initio. All capitalized terms in this
legend have the meanings defined in the Trust’s Declaration of
Trust, as the same may be amended from time to time, a copy of
which, including the restrictions on transfer and ownership, will be
furnished to each holder of Shares of the Trust on request and
without charge. In addition, the Trust will furnish a full statement
of the designations, preferences, rights,

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restrictions, limitations and other terms and conditions of each
class of Shares of the Trust, as required by Section 8-203(d) of the
Maryland REIT Law, to any holder of Shares upon request and without
charge.

The Shares represented by this certificate have not been registered
under the Securities Act of 1933, as amended, and may not be
offered, sold, assigned, pledged, transferred or otherwise disposed
of except (a) pursuant to an effective registration statement under
said act or pursuant to an available exemption from registration
under said act and, if requested, upon delivery of an opinion of
counsel reasonably satisfactory to the Trust that the proposed
transfer is exempt from registration under said act, and (b) in
accordance with the Declaration of Trust.”

     Instead of the foregoing legend, the certificate may state that the Trust will furnish a full
statement about certain restrictions on transferability to a Shareholder on request and without
charge.

     Section 7.3. Transfer of Shares in Trust.

          (a) Ownership in Trust. Upon any purported Transfer or other event described in
Section 7.2(a)(ii) that would result in a transfer of Shares to a Charitable Trust, such Shares
shall be deemed to have been transferred to the Charitable Trust Trustee for the exclusive benefit
of one or more Charitable Beneficiaries. Such transfer to the Charitable Trust Trustee shall be
deemed to be effective as of the close of business on the Business Day prior to the purported
Transfer or other event that results in the transfer to the Charitable Trust pursuant to Section
7.2(a)(ii). Each Charitable Beneficiary shall be designated by the Trust as provided in Section
7.3(g).

          (b) Status of Shares Held by the Charitable Trust Trustee. Shares held by the
Charitable Trust Trustee shall be issued and outstanding Shares of the Trust. The Prohibited Owner
shall have no rights in the shares held by the Charitable Trust Trustee. The Prohibited Owner shall
not benefit economically from ownership of any shares held in trust by the Charitable Trust
Trustee, shall have no rights to dividends or other distributions and shall not possess any rights
to vote or other rights attributable to the Shares held in the Charitable Trust.

          (c) Dividend and Voting Rights. The Charitable Trust Trustee shall have all voting
rights and rights to dividends or other distributions with respect to Shares held in the Charitable
Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any
dividend or other distribution paid to a Prohibited Owner prior to the discovery by the Trust that
Shares have been transferred to the Charitable Trust Trustee shall be paid with respect to such
Shares by the Prohibited Owner to the Charitable Trust Trustee upon demand and any dividend or
other distribution authorized but unpaid shall be paid when due to the Charitable Trust Trustee.
Any dividends or distributions so paid over to the Charitable Trust Trustee shall be held in trust
for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to
Shares held in the Charitable Trust and, subject to Maryland law, effective as of

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the date that Shares have been transferred to the Charitable Trust Trustee, the Charitable
Trust Trustee shall have the authority (at the Charitable Trust Trustee’s sole discretion) (i) to
rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Trust that Shares
have been transferred to the Charitable Trust Trustee and (ii) to recast such vote in accordance
with the desires of the Charitable Trust Trustee acting for the benefit of the Charitable
Beneficiary; provided, however, that if the Trust has already taken irreversible
trust action, then the Charitable Trust Trustee shall not have the authority to rescind and recast
such vote. Notwithstanding the provisions of this Article VII, until the Trust has received
notification that Shares have been transferred into a Charitable Trust, the Trust shall be entitled
to rely on its share transfer and other Shareholder records for purposes of preparing lists of
Shareholders entitled to vote at meetings, determining the validity and authority of proxies and
otherwise conducting votes of Shareholders.

          (d) Sale of Shares by Trustee. Within a reasonable time after (but no earlier than 30
days) receiving notice from the Trust that Shares have been transferred to the Charitable Trust,
the Charitable Trust Trustee shall sell the shares held in the Charitable Trust to a Person,
designated by the Charitable Trust Trustee, whose ownership of the Shares will not violate the
ownership limitations set forth in Section 7.2(a)(i). Upon such sale, the interest of the
Charitable Beneficiary in the Shares sold shall terminate and the Charitable Trust Trustee shall
distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary
as provided in this Section 7.3(d). The Prohibited Owner shall receive the lesser of (i) the price
paid by the Prohibited Owner for the Shares or, if the Prohibited Owner did not give value for the
shares in connection with the event causing the Shares to be held in the Charitable Trust (e.g., in
the case of a gift, devise or other such transaction), the Market Price of the Shares effective on
the day of the event causing the Shares to be held in the Charitable Trust and (ii) the price
received by the Charitable Trust Trustee from the sale or other disposition of the Shares held in
the Charitable Trust. Any net sales proceeds in excess of the amount payable to the Prohibited
Owner shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the
Trust that Shares have been transferred to the Charitable Trust Trustee, such Shares are sold by a
Prohibited Owner, then (x) such Shares shall be deemed to have been sold on behalf of the
Charitable Trust and (y) to the extent that the Prohibited Owner received an amount for such Shares
that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section
7.3(d), such excess shall be paid to the Charitable Trust Trustee upon demand.

          (e) Purchase Right in Shares Transferred to the Charitable Trust Trustee. Shares
transferred to the Charitable Trust Trustee shall be deemed to have been offered for sale to the
Trust, or its designee, at a price per share equal to the lesser of (i) the price per share in the
transaction that resulted in such transfer to the Charitable Trust (or, in the case of a devise or
gift, the Market Price at the time of such devise or gift) and (ii) the Market Price on the date
the Trust, or its designee, accepts such offer. The Trust shall have the right to accept such offer
until the Charitable Trust Trustee has sold the Shares held in the Charitable Trust pursuant to
Section 7.3(d). Upon such a sale to the Trust, the proceeds therefrom shall be distributed to the
Charitable Beneficiary in the manner described in Section 7.3(d).

          (f) Rights Upon Liquidation. Upon any voluntary or involuntary liquidation,
dissolution or winding up (or any other distribution of the assets) of the Trust, the Charitable
Beneficiary shall be entitled to receive, ratably with each other holder of Shares of the class or

25

 

series of the Shares that is held in the Charitable Trust, that portion of the assets of the
Trust available for distribution to the holders of such class or series (determined based upon the
ratio that the number of Shares held by the Charitable Trustee bears to the total number of
applicable Shares then outstanding). The Charitable Trustee shall distribute any such assets
received in respect of the Shares held in the Charitable Trust pursuant to this Section 7.3(f) in
the same manner as proceeds from the sale of Shares are distributed pursuant to Section 7.3(d)
above.

          (g) Designation of Charitable Beneficiaries. By written notice to the Charitable
Trust Trustee, the Trust shall designate one or more nonprofit organizations to be the Charitable
Beneficiary of the interest in the Charitable Trust such that (i) Shares held in the Charitable
Trust would not violate the restrictions set forth in Section 7.2(a)(i) in the hands of such
Charitable Beneficiary and (ii) each such organization must be described in Section 501(c)(3) of
the Code and contributions to each such organization must be eligible for deduction under each of
Sections 170(b)(1)(A), 2055 and 2522 of the Code.

     Section 7.4. Enforcement. The Trust is authorized specifically to seek equitable
relief, including injunctive relief, to enforce the provisions of this Article VII. No delay or
failure on the part of the Trust or the Board of Trustees in exercising any right hereunder shall
operate as a waiver of any right of the Trust or the Board of Trustees, as the case may be, except
to the extent specifically waived in writing.

     Section 7.5. Redemptions Excepted. Notwithstanding anything in this Article VII or
any other provision of this Declaration of Trust to the contrary, the Trust shall redeem the Class
B Preferred Shares and the Class B Common Shares in accordance with Section 6.7, notwithstanding
any effect any such redemption may have on the qualification or disqualification of the Trust as a
REIT.

ARTICLE VIII

SHAREHOLDERS

     Section 8.1. Meetings. There shall be an annual meeting of Shareholders, to be held
upon written notice at such time (after the delivery of the annual report) and convenient location
as shall be determined in the manner prescribed in the Bylaws, for the election of the Trustees, to
review and discuss the business and affairs of the Trust, and for the transaction of any other
business within the powers of the Trust that is properly brought before such meeting in accordance
with the Bylaws. Except as otherwise provided in this Declaration of Trust, special meetings of
Shareholders may be called in the manner provided in the Bylaws. If there are no Trustees, the
officers of the Trust shall promptly call a special meeting of the Shareholders entitled to vote
for the election of successor Trustees. Any meeting may be adjourned and reconvened as the Trustees
determine or as provided in the Bylaws.

     Section 8.2. Voting Rights. Subject to the rights and powers of any class or series
of Shares then outstanding, the Shareholders shall be entitled to vote on (and only on) the
following matters:

          (a) the election of Trustees as provided in Section 5.2 and the removal of Trustees as
provided in Section 5.3;

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          (b) an amendment of this Declaration of Trust as provided in Article X;

          (c) the termination of the Trust as provided in Section 12.2;

          (d) a merger or consolidation of the Trust, or the sale or disposition of substantially all of
the Trust’s assets, as provided in Article XI;

          (e) the termination of the Trust’s status as a REIT for federal income tax purposes as
provided by Section 5.1(c);

          (f) the authorization of any additional Shares and any classification or reclassification of
classes or series of Shares;

          (g) the issuance of any Shares, or securities of the Trust that are convertible into,
exchangeable for or evidence the right to purchase Shares, other than the Shares required or
permitted to be issued under the terms of the Organization Agreement or pursuant to Section 4.2 of
the Shareholders Agreement;

          (h) the making of any dividend or distribution to Shareholders other than dividends or
distributions paid only in cash; and

          (i) such other matters with respect to which the Board of Trustees has adopted a resolution
declaring that a proposed action is advisable and directing that the matter be submitted to the
Shareholders for approval or ratification.

Except with respect to the foregoing matters, no action taken by the Shareholders at any meeting
shall in any way bind the Board of Trustees. Except where this Declaration of Trust or the Bylaws
require a higher percentage vote or give separate voting rights to a specified class or classes of
Shares, action with respect to any of the foregoing matters may be taken only if such action is
approved by holders of a majority of the voting power of all Shares entitled to vote on such
matter; provided that action on the matters described in subsections (b), (c), (d), (e),
(f), (g) and (h) of this Section 8.2 shall require the approval of two-thirds of the voting power
of all Shares entitled to vote on such matter.

     Section 8.3. Preemptive and Appraisal Rights. Except as may be provided by the Board
of Trustees in establishing the terms of any class of Shares pursuant to Section 6.4, or as may
otherwise be provided by contract, no holder of Shares shall, as such holder, (a) have any
preemptive right to purchase or subscribe for any additional Shares of the Trust or any other
security of the Trust which it may issue or sell or (b) have any right to require the Trust to pay
such holder the fair value of such holder’s Shares in an appraisal or similar proceeding.

     Section 8.4. Extraordinary Actions. Except as otherwise expressly provided in this
Declaration of Trust and notwithstanding any provision of law permitting or requiring any action to
be taken or authorized by the affirmative vote of the holders of a greater number of votes, any
Shareholder action shall be effective and valid if approved by the affirmative vote of holders of
Shares having a majority of the voting power of the Shares entitled to vote on the matter.

27

 

     Section 8.5. Action By Shareholders Without a Meeting. Any action required or
permitted under this Declaration of Trust or the Bylaws to be taken by the Shareholders at a
meeting may be taken without a meeting by the written consent of Shareholders entitled to vote on
such matter having the number of votes that would be required to approve the matter as required by
statute, this Declaration of Trust or the Bylaws, as the case may be, at a meeting at which all
Shares entitled to be voted on such matter were present, in person or by proxy.

ARTICLE IX

LIABILITY LIMITATION, INDEMNIFICATION

AND TRANSACTIONS WITH THE TRUST

     Section 9.1. Limitation of Shareholder Liability. No Shareholder shall be liable for
any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the
Trust by reason of being a Shareholder, nor shall any Shareholder be subject to any personal
liability whatsoever, in tort, contract or otherwise, to any person in connection with the property
or the affairs of the Trust by reason of being a Shareholder.

     Section 9.2. Limitation of Trustee and Officer Liability. To the maximum extent that
Maryland law in effect from time to time permits limitation of the liability of trustees and
officers of a real estate investment trust, no Trustee or officer of the Trust shall be liable to
the Trust or to any Shareholder for money damages. Neither the amendment nor repeal of this Section
9.2, nor the adoption or amendment of any other provision of this Declaration of Trust inconsistent
with this Section 9.2, shall apply to or affect in any respect the applicability of the preceding
sentence with respect to any act or failure to act which occurred prior to such amendment, repeal
or adoption. In the absence of any Maryland statute limiting the liability of trustees and
officers of a Maryland real estate investment trust for money damages in a suit by or on behalf of
the Trust or by any Shareholder, no Trustee or officer of the Trust shall be liable to the Trust or
to any Shareholder for money damages except to the extent that (a) the Trustee or officer actually
received an improper benefit or profit in money, property or services, for the amount of the
benefit or profit in money, property or services actually received; or (b) a judgment or other
final adjudication adverse to the Trustee or officer is entered in a proceeding based on a finding
in the proceeding that the Trustee’s or officer’s action or failure to act was the result of active
and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding.

     Section 9.3. Indemnification. The Trust, to the fullest extent permitted by law,
shall indemnify and hold harmless, each Indemnified Person from and against any loss, liability,
expense, judgment, settlement cost, fees and related expenses (including reasonable attorneys’ fees
and expenses), costs or damages arising out of or in connection with any act taken or omitted to be
taken in respect of the affairs of the Trust, unless it is established that (i) such act or
omission was material to the matter giving rise to the claim, and was (A) committed in bad faith,
or (B) the result of active and deliberate dishonesty; (ii) the Indemnified Person actually
received an improper personal benefit in money, property, or services; or (iii) in the case of any
criminal proceeding, the Indemnified Person had reasonable cause to believe that such act or
omission was unlawful; provided that the Trust shall not indemnify any Indemnified Person
that is an employee, officer or director of HILP or of an Affiliate of HILP (other than an
independent director of the general partner of the Non-Managing General Partner of the Holding
Partnership)

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for any act or omission by such Indemnified Person which (A) following the admission of the
Non-Managing General Partner to the Holding Partnership, as long as the Non-Managing Partner
retains a partnership interest in the Holding Partnership, constitutes misconduct or negligence, or
(B) at any other time, constitutes gross negligence, recklessness, willful misconduct, bad faith or
a knowing violation of law. The termination of any action, suit or proceeding by settlement shall
not, of itself, create a presumption that an Indemnified Person did not act in good faith or in a
manner that was reasonably believed to be in, or not opposed to, the best interests of the Trust,
or was deliberately dishonest or had reasonable cause to believe that such act or omission was
unlawful. The Trust shall, to the extent permitted by applicable law and without requiring a
preliminary determination of the ultimate entitlement to indemnification, advance to any
Indemnified Person reasonable attorneys’ fees and other costs and expenses incurred in connection
with the defense of any action or proceeding which arises out of conduct which is the subject of
the indemnification provided hereunder; provided, however, that the Indemnified
Person shall agree as a condition to receiving any such advance, that in the event such Indemnified
Person receives any advance, the Indemnified Person shall reimburse the Trust for the advance to
the extent that it is judicially determined, in a final, non-appealable judgment or binding
arbitration, that the Indemnified Person was not entitled to indemnification under this Section
9.3. As used herein the term “Indemnified Person” means any individual who (a) is a
present or former Shareholder, Trustee or officer of the Trust, or (b) while a Trustee or officer
of the Trust and at the request of the Trust, serves or has served as a director, officer, partner,
manager, trustee, employee or agent of another real estate investment trust, corporation, limited
liability company, partnership, joint venture, trust, employee benefit plan or any other entity.

     Section 9.4. Transactions Between the Trust and its Trustees, Officers, Employees and
Agents. Subject to any express restrictions in this Declaration of Trust or the Bylaws, or an
express restriction adopted by the Trustees by resolution, the Trust may enter into any contract or
transaction of any kind with any person, including any Trustee, officer, employee or agent of the
Trust or any person affiliated with a Trustee, officer, employee or agent of the Trust, whether or
not any of them has a financial interest in such transaction; provided that the terms of
the transactions are: (i) no less favorable to the Trust than would be obtained in a transaction
with an unaffiliated party; (ii) approved by the Advisory Committee (as defined in the Amended and
Restated Agreement of Limited Partnership of the Holding Partnership (as amended or restated from
time to time, the “HP Partnership Agreement”)); or (iii) contemplated by the HP Partnership
Agreement.

ARTICLE X

AMENDMENTS

     Section 10.1. General. Subject to the terms of this Declaration of Trust, the Trust
reserves the right from time to time to make any amendment to this Declaration of Trust, now or
hereafter authorized by law. All rights and powers conferred by this Declaration of Trust on
Shareholders, Trustees and officers are granted subject to this reservation. An amendment to this
Declaration of Trust (a) shall be signed and acknowledged by at least a majority of the Trustees,
an officer duly authorized by at least a majority of the Trustees, or signed and acknowledged by
the Chairman of the Board of Trustees, and witnessed by the Secretary, (b) shall be filed for
record as provided in Section 13.6 and (c) shall become effective as of the later of the time the
Department accepts the amendment for record or the time established in the amendment, not to

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exceed 30 days after the amendment is accepted for record. All references to this Declaration
of Trust shall include all effective amendments thereto.

     Section 10.2. By Trustees. The Board of Trustees may:

          (a) with the approval of two-thirds of its members, and without any action by the
Shareholders, amend this Declaration of Trust from time to time as may be necessary to qualify the
Trust as a REIT under the Code or as a real estate investment trust under the Maryland REIT Law;
and

          (b) with the approval of a majority of the entire Board of Trustees, change the name of the
Trust; provided that any such name change must be approved by (i) holders of a majority of
the voting power of the outstanding Class A Preferred Shares voting as a separate class and (ii)
holders of a majority of the outstanding Class B Preferred Shares voting as a separate class.

     Section 10.3. By Shareholders. Except as otherwise provided in this Declaration of
Trust, and subject to the separate class voting rights of any class or series of Preferred Shares,
any amendment to this Declaration of Trust shall be valid only if approved by the affirmative vote
of Shareholders representing at least two-thirds of the voting power of all Shares entitled to vote
on the matter. Notwithstanding anything to the contrary in this Declaration of Trust, any separate
class voting rights of any class or series of Preferred Shares (including, without limitation, the
voting rights in Section 6.3(a) hereof) may be amended only with the consent of the holders of at
least a majority of such class or series of Preferred Shares, as applicable.

ARTICLE XI

MERGER, CONSOLIDATION OR SALE OF TRUST PROPERTY

     Subject to the rights, powers or privileges of any class or series of Shares at the time
outstanding, the Board of Trustees may (a) merge the Trust into another entity, (b) consolidate the
Trust with one or more other entities into a new entity or (c) sell, lease, exchange or otherwise
transfer all or substantially all of the Trust’s assets. Any such action must be approved by the
Board of Trustees and, after notice to all Shareholders entitled to vote on the matter, by the
affirmative vote of holders of Shares representing two-thirds of the voting power of all the Shares
entitled to vote on the matter.

ARTICLE XII

DURATION AND TERMINATION OF TRUST

     Section 12.1. Duration. The Trust shall continue perpetually unless terminated
pursuant to Section 12.2 or pursuant to any applicable provision of the Maryland REIT Law.

     Section 12.2. Termination.

          (a) Subject to the provisions of any class or series of Shares at the time outstanding, after
approval by a majority of the Board of Trustees, the Trust may be terminated if holders of Shares
representing two-thirds of the outstanding voting power of all outstanding Shares vote to terminate
the Trust. Upon the termination of the Trust:

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               (i) The Trust shall carry on no business except for the purpose of winding up its affairs.

               (ii) The Trustees shall proceed to wind up the affairs of the Trust and all of the powers of
the Trustees under this Declaration of Trust shall continue, including the powers to fulfill or
discharge the Trust’s contracts, collect its assets, sell, convey, assign, exchange, transfer or
otherwise dispose of all or any part of the remaining property of the Trust to one or more persons
at public or private sale for consideration which may consist in whole or in part of cash,
securities or other property of any kind, discharge or pay its liabilities and do all other acts
appropriate to liquidate its business.

After paying or adequately providing for the payment of all liabilities, and upon receipt of such
releases, indemnities and agreements as they deem necessary for their protection, the Trust may
distribute the remaining property of the Trust among the Shareholders so that after payment in full
or the setting apart for payment of such preferential amounts, if any, to which the holders of any
Shares at the time outstanding shall be entitled, the remaining property of the Trust shall,
subject to any participating or similar rights of Shares at the time outstanding, be distributed
ratably among the holders of Common Shares at the time outstanding.

          (b) If the liquidation of the Trust occurs prior to the Initial Date, the property of the
Trust shall be distributed among the Shareholders in accordance with their respective capital
accounts maintained in accordance with Section 13.7.

          (c) After termination of the Trust, the liquidation of its business and the distribution to
the Shareholders as herein provided, a majority of the Trustees shall execute and file with the
Trust’s records a document certifying that the Trust has been duly terminated, and the Trustees
shall be discharged from all liabilities and duties hereunder, and the rights and interests of all
Shareholders shall cease.

ARTICLE XIII

MISCELLANEOUS

     Section 13.1. Governing Law. This Declaration of Trust is executed by the undersigned
Trustees and delivered in the State of Maryland with reference to the laws thereof, and the rights
of all parties and the validity, construction and effect of every provision hereof shall be subject
to and construed according to the laws of the State of Maryland without regard to conflicts of laws
provisions thereof.

     Section 13.2. Reports to Shareholders.

          (a) After the end of each fiscal year, the Trust shall have an independent certified public
accountant prepare audited financial statements of the Trust as of the close of the fiscal year,
including a balance sheet, a statement of income or loss and a statement of cash flows. A copy of
such audited financial statements for each fiscal year shall be furnished to each person who was a
Shareholder at the end of such fiscal year not later than 90 days after the end of the fiscal year.
The financial statements shall also contain a cash flow statement for such year and a summary of
all payments made to the Holding Partnership, HILP or either of their

31

 

Affiliates during such fiscal year. The annual report shall be prepared in accordance with
generally accepted accounting principles consistently applied.

          (b) Within 45 days after the end of each fiscal quarter (excluding the fourth quarter), the
Trust will send to each Shareholder (i) an unaudited current value balance sheet as of the end of
the fiscal quarter and related unaudited statements of income or loss and changes in assets,
liabilities and Shareholders’ equity for the fiscal quarter just ended, and (ii) a status report
relating to the Trust’s investments, activities and asset valuations.

     Section 13.3. Reliance by Third Parties. Any certificate shall be final and
conclusive as to any person dealing with the Trust if executed by the Secretary or an Assistant
Secretary of the Trust or a Trustee, and if certifying to: (a) the number or identity of Trustees,
officers of the Trust or Shareholders; (b) the due authorization of the execution of any document;
(c) the action or vote taken, and the existence of a quorum, at a meeting of the Board of Trustees
or Shareholders; (d) a copy of this Declaration of Trust or of the Bylaws as a true and complete
copy as then in force; (e) an amendment to this Declaration of Trust; (f) the termination of the
Trust; or (g) the existence of any fact relating to the affairs of the Trust. No purchaser, lender,
transfer agent or other person shall be bound to make any inquiry concerning the validity of any
transaction purporting to be made by the Trust on its behalf or by any officer, employee or agent
of the Trust.

     Section 13.4. Severability.

          (a) The provisions of this Declaration of Trust are severable, and if the Board of Trustees
shall determine, with the advice of counsel, that any one or more of such provisions (the
“Conflicting Provisions”) are in conflict with the Code, Maryland REIT Law or other
applicable federal or state laws, the Conflicting Provisions, to the extent of the conflict, shall
be deemed never to have constituted a part of this Declaration of Trust, even without any amendment
of this Declaration of Trust pursuant to Article X and without affecting or impairing any of the
remaining provisions of this Declaration of Trust or rendering invalid or improper any action taken
or omitted prior to such determination. No Trustee shall be liable for making or failing to make
such a determination. In the event of any such determination by the Board of Trustees, the Board
shall amend this Declaration of Trust in the manner provided in Section 10.2.

          (b) If any provision of this Declaration of Trust shall be held invalid or unenforceable in
any jurisdiction, such holding shall apply only to the extent of any such invalidity or
unenforceability and shall not in any manner affect, impair or render invalid or unenforceable such
provision in any other jurisdiction or any other provision of this Declaration of Trust in any
jurisdiction.

     Section 13.5. Construction. In this Declaration of Trust, unless the context
otherwise requires, words used in the singular or in the plural include both the plural and
singular and words denoting any gender include all genders. The title and headings of different
parts are inserted for convenience and shall not affect the meaning, construction or effect of this
Declaration of Trust. Unless otherwise specified, references in this Declaration of Trust to
‘Sections” are to Sections of this Declaration of Trust. In defining or interpreting the powers
and duties of the Trust and its Trustees and officers, reference may be made by the Trustees or

32

 

officers, to the extent appropriate and not inconsistent with the Code or the Maryland REIT
Law, to Titles 1 through 3 of the Corporations and Associations Article of the Annotated Code of
Maryland. In furtherance and not in limitation of the foregoing, in accordance with the provisions
of Title 3, Subtitles 6 and 7, of the Corporations and Associations Article of the Annotated Code
of Maryland, the Trust shall be included within the definition of “corporation” for purposes of
such provisions; provided, however, that the Trust shall not be subject to Section
3-602 thereof to the extent the Board of Trustees adopts a resolution exempting the Trust
therefrom, as permitted by Section 3-603 thereof.

     Section 13.6. Recordation. This Declaration of Trust and any amendment hereto shall
be filed for record with the Department and may also be filed or recorded in such other places as
the Trustees deem appropriate, but failure to file for record this Declaration of Trust or any
amendment hereto in any office other than the Department shall not affect or impair the validity or
effectiveness of this Declaration of Trust or any amendment hereto. A restated Declaration of
Trust shall, upon filing, be conclusive evidence of all amendments contained therein and may
thereafter be referred to in lieu of the original Declaration of Trust and the various amendments
thereto.

     Section 13.7. Counterparts. This Declaration of Trust may be signed in multiple
counterparts which, taken together, shall constitute one and the same instrument.

33exv10w10

 

Exhibit
10.10

Second Amended and Restated Shareholder Agreement

for

Hines-Sumisei NY Core Office Trust

          This Second Amended and Restated Shareholder Agreement (this “Agreement”) is entered
into as of December 21, 2005, by and among General Motors Investment Management Corporation, a
Delaware corporation,    *   ,
   *   ,
   *   , Hines US Core Office Capital Associates III Limited Partnership, a
Texas limited partnership, Hines-Sumisei U.S. Core Office Fund, L.P., a Delaware limited
partnership, and Hines-Sumisei NY Core Office Trust, a Maryland real estate investment trust.

          The parties hereto entered into a Shareholder Agreement for Hines-Sumisei NY Core Office Trust
on August 19, 2003 (the “Original Agreement”);

          The Original Agreement was amended and restated as provided in the Amended and Restated
Shareholder Agreement, dated December 23, 2003 (the “First Restated Agreement”);

          The parties hereto desire to amend and restate the First Restated Agreement as provided in
this Agreement.

          In consideration of the terms and conditions set forth herein, the mutual benefits to be
gained by the performance thereof and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

ARTICLE I

Definitions

          SECTION 1.1 Defined Terms. As used in this Agreement, the following terms have the meanings
indicated:

          “Agreement”: As defined in the Preamble.

          “Affiliate”: With respect to any Person, a Person which, directly or indirectly,
Controls, is Controlled by or is under common Control with such Person; provided, that, for
purposes of this Agreement, (i) the Fund Partnership and Persons Controlled by the Fund Partnership
shall be deemed not to be Affiliates of HILP, and HILP and Persons Controlled by HILP shall be
deemed not to be Affiliates of the Fund Partnership, and (ii) each of the parties to this Agreement
shall be deemed not to be an Affiliate of the Trust or of any Person Controlled by the Trust.

          “Appraised Value”: As defined in Section 3.2(a).

 

 

          “Beneficial Owner”: A beneficial owner within the meaning of Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934, as amended, as interpreted by the Securities and
Exchange Commission. “Beneficially Own” and “Beneficial Ownership” have
correlative meanings.

          “Board”: The Board of Trustees of the Trust.

          “Board Designees”: Fund Designees, Hines Designees, SLR Designees and any Replacement
Designee, as applicable.

          “Business Day”: Any day other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which banking institutions in New York City are authorized or required by law,
regulation or executive order to close.

          “Bylaws”: The Bylaws of the Trust, as amended from time to time.

          “Capital Contribution”: As defined in Section 4.2(a).

          “Common Shares”: As defined in the Declaration of Trust.

          “Control”: With respect to any Person, the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

          “Declaration of Trust”: The Declaration of Trust of the Trust, as amended from time
to time.

          “Fair Market Value”: As defined in Section 3.2(a).

          “Finding of Cause”: As defined in Section 2.2(c).

          “Fund Partnership”: Hines-Sumisei U.S. Core Office Fund, L.P., a Delaware limited
partnership, and its successors.

          “Fund Partnership Agreement”: The Agreement of Limited Partnership of the Fund
Partnership, as amended from time to time.

          “Fund Designee”: Any person designated for election to the Board by the Fund
Partnership pursuant to Section 2.2(a)(i), including each Hines Designee and each SLR Designee.

          “Fund General Partner”: Hines US Core Office Capital LLC, a Delaware limited
liability company, and its successors, and any Person hereafter admitted as General Partner (or if
more than one General Partner, the Managing General Partner) of the Fund Partnership.

          “GM Group”: GMIMCo and any Person Controlled by GMIMCo.

          “GM Investors”: As defined in the Investor Rights Agreement.

-2-

 

          “GMIMCo”: General Motors Investment Management Corporation, a Delaware corporation.

          “HILP”: Hines Interests Limited Partnership, a Delaware limited partnership, and its
successors.

          “Hines Control Conditions”: As defined in Section 2.2(d).

          “Hines Controlled Entity”: Any partnership, limited liability company, corporation,
trust or other entity which is, directly or indirectly, Controlled by (a) HILP and/or (b) Jeffrey
C. Hines and/or Gerald D. Hines or, in the event of the death or disability of Jeffrey C. Hines
and/or Gerald D. Hines, the heirs, legal representatives or estates of either or both of them.

          “Hines Designees”: Fund Designees who are employees or agents of HILP.

          “Hines Group”: HILP, Gerald D. Hines, Jeffrey C. Hines, the estates, spouses,
children and grandchildren of Gerald D. Hines and Jeffrey C. Hines, present and former employees of
HILP, and any trust for the benefit of any of the foregoing.

          “Hines Investor”: Hines US Core Office Capital Associates III Limited Partnership, a
Texas limited partnership, and its successors and any Hines Controlled Entity to which Hines
Investor Transfers any Shares in accordance with the terms of this Agreement.

          “hold”: With respect to any Shares, to be (i) the record holder of such Shares as
shown on the books and records of the Trust, or (ii) the Beneficial Owner of such Shares. The
terms “held” and “holder” have correlative meanings.

          “Investor Rights Agreement”: The Second Amended and Restated Investor Rights
Agreement, of Hines US Core Office Fund and GMIMCo, dated October 12, 2005, as such agreement may
be amended from time to time.

          “Issue Price”: As defined in Section 4.2(c).

          “Majority Shareholder Vote” A vote by holders of more than 50% of the total voting
power of all outstanding Shares.

          “Master Agreement”: That certain Amended and Restated Master Agreement, dated as of
March 31, 2003, among HILP, US Core Properties, and Sumitomo Life Realty (N.Y.), Inc., as modified
by two letter agreements dated March 31, 2003 and an extension letter agreement dated June 26,
2003, and as amended by the amendment thereto dated as of July 22, 2003 and letter agreement dated
July 22, 2003 and by the letter agreement dated as of August 19, 2003.

          “Merger” The merger of Trust II with and into Trust I pursuant to an Agreement and
Plan of Merger approved by the Shareholders.

-3-

 

          “Officer”: An Officer of the Trust.

          “Optional Call Amount”: As defined in Section 4.2(a).

          “Organization Agreement”: The Amended and Restated Organization Agreement for the
Hines-Sumisei NY Core Office Trust, dated as of December 23, 2003, among the parties hereto and
HILP, as such agreement may be amended from time to time.

          “Original Agreement”: As defined in the Recitals.

          “Participating Shareholder”: As defined in Section 4.2(a).

          “Party”: Each Person who is a party to this Agreement that is a Shareholder or
otherwise has the power to vote or grant consent with respect to any Shares.

          “Percentage Interest”: As to any Shareholder, the total number of Preferred Shares
held by such Shareholder divided by the total number of Preferred Shares outstanding.

          “Person”: An individual, corporation, partnership, limited liability company, estate,
trust, association, joint stock company or other legal entity.

          “Preferred Shares”: As defined in the Declaration of Trust.

          “Prime Rate”: As defined in Section 3.2(b).

          “Projected Net Proceeds”: As defined in Section 3.2(a).

          “Promote Shares”: As defined in Section 3.2(a).

          “Properties”: The real estate properties in which the Trust has an indirect ownership
interest known as 425 Lexington Avenue and 499 Park Avenue in New York City and 1200 19th Street in
Washington D.C. and, following the Merger, 600 Lexington Avenue in New York City (to the extent the
Trust continues to have an interest in such properties).

          “Removal Date”: As defined in Section 3.2(a).

          “Replacement Designee”: As defined in Section 2.2(a)(iv).

          “Shareholder”: A record holder of Shares.

          “Shares”: As defined in the Declaration of Trust.

          “SLR”: Sumitomo Life Realty (N.Y.), Inc., a New York corporation, and its successors.

          “SLR Designees”: Fund Designees who are employees of or agents of SLR.

-4-

 

          “Transaction Agreements”: This Agreement, the Organization Agreement and the Investor
Rights Agreement.

          “Transfer”: As to any Shares, to sell, or in any other way directly or indirectly
transfer, assign, distribute, pledge, encumber or otherwise dispose of, either voluntarily or
involuntarily.

          “Trust”: Hines-Sumisei NY Core Office Trust, a Maryland real estate investment trust,
and its successors.

          “Trust II”: Hines-Sumisei NY Core Office Trust II, a Maryland real estate investment
trust.

          “Trustee”: A member of the Board of Trustees.

          SECTION 1.2 Interpretation; Terms Generally. The definitions set forth in Section 1.1 and
elsewhere in this Agreement shall apply equally to both the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. Unless otherwise indicated, the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The words “herein”,
“hereof” and “hereunder” and words of similar import shall be deemed to refer to this Agreement in
its entirety and not to any part hereof, unless the context shall otherwise require. All references
herein to Articles, Sections and Schedules shall be deemed to refer to Articles and Sections of and
Schedules to this Agreement, unless the context shall otherwise require. Unless the context shall
otherwise require, any references to any agreement or other instrument or statute or regulation are
to it as amended and supplemented from time to time (and, in the case of a statute or regulation,
to any corresponding provisions of successor statutes or regulations). Any reference in this
Agreement to a “day” or number of “days” (that does not refer explicitly to a “Business Day” or
“Business Days”) shall be interpreted as a reference to a calendar day or number of calendar days.
If any action or notice is to be taken or given on or by a particular calendar day, and such
calendar day is not a Business Day, then such action or notice shall be deferred until, or may be
taken or given on, the next Business Day.

ARTICLE II

Voting of Shares

          SECTION 2.1 Voting Generally. When any action is required to be taken by a Party pursuant to
this Agreement, such Party shall take all steps reasonably necessary to implement such action
including, without limitation, voting at any meeting of Shareholders all Shares held by such Party
and entitled to vote at such meeting in favor of such action and/or executing or causing to be
executed, as promptly as practicable, a consent in writing to the taking of such action. Any
agreement by a Party to vote any Shares held by such Party in a certain manner shall be deemed, in
each instance, to include an agreement by such Party to use its commercially reasonable efforts to
take all actions necessary to call, or to cause the Trust and the appropriate Trustees and Officers
to call, as promptly as practicable, a special or annual meeting

-5-

 

of Shareholders to consider such action (and such Party shall attend any such annual or
special meeting in person or by proxy), or to cause a written consent to the taking of such action
to be circulated among the Shareholders (and to execute and deliver any such consent to such
action). Each Party further agrees to vote all of its Shares entitled to vote, and to take all
other actions necessary, to ensure that the Declaration of Trust and Bylaws facilitate and do not
at any time prohibit the actions contemplated by this Agreement.

          SECTION 2.2 Board of Trustees. The Trust shall be managed by a Board of Trustees having at
least seven members. All members of the Board shall be designated and elected as provided in this
Section 2.2.

          (a) Designation.

     (i) Fund Designees. For as long as the Hines Control Conditions are
met, (A) the Fund Partnership shall be entitled to designate all members of the
Board of Trustees, (B) there shall at all times be at least five Fund Designees, all
of whom shall be employees or agents of HILP, and (C) notwithstanding clause (B) of
this sentence, for as long as the Fund Partnership is obligated to designate
employees or agents of SLR for election to the Board pursuant to the terms of the
Fund Partnership Agreement or the Master Agreement, there shall be at least seven
Fund Designees, at least five of whom shall be employees or agents of HILP and two
of whom shall be employees or agents of SLR. If at any time the Hines Control
Conditions are not met, then the Fund Partnership shall not be entitled to designate
all members of the Board but (1) for as long as the Fund Partnership is obligated to
designate employees or agents of SLR for election to the Board pursuant to the terms
of the Fund Partnership Agreement or the Master Agreement, the Fund Partnership
shall be entitled to designate two SLR Designees for election to the Board, and (2)
for as long as the Fund Partnership Beneficially Owns at least 20% of the
outstanding Shares, the Fund Partnership shall be entitled to designate one Fund
Designee for election to the Board in addition to the two SLR Designees designated
pursuant to clause (1) of this sentence.

     (ii) Vacancies. If any Board Designee shall be elected or appointed as
a member of the Board but shall thereafter cease to serve as a member of the Board
(whether as a result of his or her death or resignation or for any other reason)
prior to the expiration of his or her term of office, the Person who designated such
Board Designee shall (to the extent such person remains entitled to designate Board
Designees pursuant to clause (i) of this Section 2.2(a)) have the right to designate
another person (a “Replacement Designee”) to fill the resulting vacancy in
the Board; provided, that, the Fund Partnership may replace a Hines Designee
only with an employee or agent of HILP; provided further that, a vacancy
created by the removal of any Hines Designee pursuant to Section 2.2(c) or 2.2(d)
shall be filled by the Shareholders pursuant to a Majority Shareholder Vote or by
the Fund Partnership pursuant to clause (2) of the second sentence of

-6-

 

Section 2.2(a)(i) as applicable, (in which case, the Fund Partnership may
replace a removed Hines Designee with a person that is not an employee or agent of
HILP).

          (b) Trust Action. The Trust shall use its best efforts and take all action within its power
to cause each Board Designee to be elected or appointed to serve as a member of the Board as
promptly as practicable after the date upon which he or she has been so designated. Without
limiting the generality of the foregoing, the Trust shall take any of the following actions if
required in order to effect the election or appointment of a Board Designee:

     (i) If there exists a vacancy on the Board, the Trust shall take all necessary
action within its power to cause such vacancy to be filled through the appointment
of such Board Designee.

     (ii) If the Board is authorized by law to increase the number of members of the
Board without approval of the Shareholders, the Trust shall take all necessary
action within its power to increase the size of the Board and cause each newly
created trusteeship to be filled by the appointment of a Board Designee.

     (iii) The Trust shall nominate such Board Designee for election as a member of
the Board at the next meeting of the Shareholders at which members of the Board are
to be elected and, in connection therewith, shall recommend to the Shareholders the
election of such Board Designee and vote in favor of such Board Designee all legally
effective proxies received from Shareholders that authorize or direct any Officer or
Trustee, as proxy holder, to vote in the election of Trustees for such Board
Designee or which grant to any Officer or Trustee the power to exercise his or her
discretion in voting in the election of Trustees.

          (c) Removal for Cause. Any Trustee may be removed by the Shareholders by a Majority
Shareholder Vote, and the Shareholders may, by a Majority Shareholder Vote, require the removal of
any Officer, if a Finding of Cause with respect to such Trustee or Officer shall have been made and
shall have become effective and shall not have been withdrawn or rescinded in accordance with the
provisions of this Section 2.2(c). For purposes of this Agreement, the term “Finding of
Cause” means (i) a written determination by the Shareholders by a Majority Shareholder Vote
that a Trustee or Officer has committed (A) willful malfeasance in the performance of any of such
Trustee’s or Officer’s material duties in his or her capacity as such (B) willful misconduct or
fraud or (C) gross negligence which is the primary cause of a material adverse effect on the Trust,
which written determination identifies with reasonable particularity the actions by such Trustee or
Officer constituting such willful malfeasance, willful misconduct, fraud or gross negligence, and,
in the case of gross negligence, the material adverse effect on the Trust resulting therefrom, and
(ii) in the case of gross negligence, the material adverse effect resulting therefrom has continued
without being substantially cured for a period of at least thirty Business Days after the date upon
which such written determination was given to the Board and such Trustee or Officer; provided,
however, that, (1) at least 10 days prior to submitting any such written determination, GMIMCo
and the GM Investors shall consult with the President of the Trust and the senior most employee of
HILP that is a Hines Designee regarding the

-7-

 

circumstances deemed by GMIMCo and the GM Investors to be a possible basis for a Finding of
Cause, and (2) any such Trustee or Officer shall have the right to dispute any determination that
such willful malfeasance, willful misconduct, fraud or gross negligence has occurred and, in the
case of gross negligence, that such gross negligence is the primary cause of a material adverse
effect on the Trust that has not been substantially cured, and, if such Trustee or Officer
commences legal action for declaratory or injunctive relief with respect to such Finding of Cause
within 15 Business Days after written determination of such is delivered to the Trust and such
Trustee or Officer (which 15 Business Days may, in the case of gross negligence, be extended for an
additional 30 Business Days if such Officer or Trustee is diligently prosecuting a cure of such
gross negligence), then the applicable Finding of Cause shall not become effective until the date
upon which the dispute with respect to such determination has been resolved (whether by agreement
among such Trustee or Officer, the Trust and the Shareholders by a Majority Shareholder Vote or as
a result of a judgment or award in the judicial proceeding filed by such Officer or Trustee). Any
determination by the Shareholders, and the effectiveness, of any Finding of Cause, may be rescinded
or withdrawn at any time by the Shareholders by a Majority Shareholder Vote.

          (d) Hines Control Conditions. The “Hines Control Conditions” shall be met as long as
all of the following conditions are met:

     (i) No Hines Designee or Officer that is an employee of HILP has been removed
from office pursuant to a Finding of Cause in accordance with Section 2.2(c);

     (ii) The Fund General Partner is a Hines Controlled Entity;

     (iii) Neither Hines Investor nor the Fund Partnership defaults in its
obligation to make any capital contribution required to be made by it to the Trust
under terms of the Organization Agreement, which default is not cured within 10
Business Days after notice thereof; and

     (iv) The Hines Group Beneficially Owns at least 1% of the outstanding Shares.

          If at any time the Hines Control Conditions are not met, then (i) the Shareholders may, by
Majority Shareholder Vote, remove all Hines Designees from office and require the removal of all
employees of HILP as Officers of the Trust, and (ii) each vacancy created by such removal (in the
case of Trustees) shall be filled by a person designated by the Shareholders by Majority
Shareholder Vote, subject to the right of the Fund Partnership to designate an Fund Designee
pursuant to clause (2) of the second sentence of Section 2.2(a)(i). Notwithstanding the foregoing,
if the Hines Control Condition described in clause (iv) of this Section 2.2(d) fails to be met as a
result of dilution, in connection with transfers due to admission of new partners to the Fund
Partnership or of new shareholders to the Trust, then the Hines Control Conditions shall
nonetheless be deemed to be met so long as the Hines Group’s Beneficial Ownership of Shares is
restored to at least 1% of the outstanding Shares as soon as practicable after the Fund Partnership
or Hines Investor becomes aware of such condition. If any Hines Designees or Officers who are

-8-

 

employees or agents of HILP are required to be removed from office pursuant to this Section
2.2(d), the Trust shall use its best efforts to cause such removal, and to cause the vacancies
created by such removal to be filled in accordance with the applicable provisions of this Section
2.2, as promptly as practical following the Majority Shareholder Vote requiring such removal.

          (e) Observer Rights.

     (i) At any time the Fund Partnership is entitled to designate a Board Designee
pursuant to the second sentence of Section 2.2(a)(i) and no Fund Designee other than
the SLR Designees is a member of the Board, then the Fund Partnership shall be
entitled to have one observer attend each meeting of the Board.

     (ii) At any time the Fund Partnership is entitled to designate an SLR Designee
pursuant to Section 2.2(a)(i) and no SLR Designee is a member of the Board, then, in
addition to any other observer or Fund Designee, the Fund Partnership is entitled to
designate, the Fund Partnership shall be entitled to have one observer who is an
employee or agent of SLR attend each meeting of the Board.

     (iii) The Trust shall send to any Party entitled to designate an observer
pursuant to clause (i) or (ii) of this Section 2.2(e) and its designated observer
the notice of the time and place of any meeting of the Board, and of any written
consent being solicited from the Board, in the same manner and at the same time as
notice is sent to the members of the Board. The Trust shall also provide to each
such party copies of all notices, reports, minutes, consents and other documents at
the time and in the manner as they are provided to the Board.

     (iv) Any observer who attends any meetings of the Board, as a condition to his
or her right to attend such meeting, shall execute and comply with an agreement with
the Trust containing such restrictions on the use and disclosure of confidential
information and other matters as the Trust may reasonably request.

          SECTION 2.3 Shareholder Action.

          (a) Except as otherwise provided in subsections (b), (c), (d), (e) and (f) of this Section
2.3, as to any proposal properly brought before the Shareholders for a vote or consent in
accordance with the Bylaws and the Declaration of Trust, each Party may vote, or give its consent
with respect to, all Shares entitled to vote held by such Party for or against such proposal as
such Party may determine in its sole and absolute discretion.

          (b) Each Party shall vote all Shares held by it entitled to vote for the election of Trustees
at any meeting of Shareholders called for the election of Trustees, and shall give its consent with
respect to all such Shares held by it in response to any solicitation of Shareholder consents to
the election of Trustees, in favor of the election to the Board of any Board Designee nominated by
a Party for election to the Board in accordance with Section 2.2(a) that is the subject of such
vote or consent. In addition, except for a proposal to remove a Trustee made in

-9-

 

accordance with Section 2.2(c) or Section 2.2(d), each Party shall vote all Shares entitled to
vote held by it against any resolution which may be proposed to remove any Board Designee that is
serving as a member of the Board, unless the Person that designated such Board Designee otherwise
requests in writing.

          (c) For so long as a majority of the Board is composed of Hines Designees, each Party shall
vote, or give its consent with respect to, all Shares entitled to vote held by such Party for or
against any proposal brought before the Shareholders for their vote or consent with respect to a
merger or consolidation of the Trust, or the sale or disposition of substantially all of the
Trust’s assets, pursuant to which the consideration to be received by Shareholders consists solely
of cash, in the manner the Board recommends that the Shareholders vote with respect to such
proposal.

          (d) Notwithstanding subsection (c) of this Section 2.3, but subject to subsection (e) of this
Section 2.3, as to any vote or consent which, under the terms of the Declaration of Trust, is
required to be obtained from any class or classes of Shares voting as a separate class, the holders
of such class or classes of Shares may vote, or give their consent with respect to, such Shares in
such separate class vote in any manner they may elect in their sole and absolute discretion;
provided, that, notwithstanding the foregoing, each Shareholder shall vote in favor of or
consent to the authorization and issuance of Shares by the Trust in accordance with Section 4.2 of
this Agreement to the extent such vote or consent is required under any provision of the
Declaration of Trust.

          (e) Notwithstanding anything in any other Transaction Agreement to the contrary, except as
contemplated by Section 4.2 of this Agreement, no Party shall, without the prior written consent of
Hines Investor, vote any Shares held by it in favor of

     (i) the authorization of any additional Shares or any additional classes or
series of Shares; or

     (ii) the issuance of any Shares, or securities of the Trust that are
convertible into, exchangeable for or evidence the right to purchase Shares, other
than the Shares required or permitted to be issued under the terms of the
Organization Agreement.

          (f) Notwithstanding subsection (a) of this Section 2.3, if the approval of Shareholders is
required in order for the Trust to take any action required to be taken by the Trust under the
terms of this Agreement or any other Transaction Agreement, then each Party shall vote or give its
consent with respect to all Shares entitled to vote held by it in favor of such action. Each Party
hereby consents to the Trust taking any action which it is required to take under the terms of this
Agreement or any other Transaction Agreement.

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ARTICLE III

Share Ownership and Transfer

          SECTION 3.1 Conditions to Transfer. In addition to any restrictions imposed by the
Organization Agreement or the Declaration of Trust, it shall be a condition to any Transfer of
Shares by any Party that the applicable Transferee becomes, pursuant to a written instrument
reasonably acceptable to the Trust, a party to this Agreement bound by the provisions of this
Agreement applicable to the Transferor. No such Transferee shall, without the consent of the other
parties hereto, be entitled to any benefits under this Agreement, unless such Transferee is (i) a
party to this Agreement entitled to the benefits hereof prior to such Transfer, (ii) a member of
the GM Group, in the case of any Transfer by a member of the GM Group, or (iii) a Hines Controlled
Entity, in the case of any Transfer by a Hines Controlled Entity or the Fund Partnership. Any
Transfer made in violation of this Section 3.1 shall be null and void ab initio, and the Trust
shall not recognize any such Transfer or record it on the books of the Trust.

          SECTION 3.2 Call on Promote Shares.

          (a) If the Hines Control Conditions fail to be met, and the Shareholders by Majority
Shareholder Vote elect to remove all Hines Designees from the Board and require the removal of all
employees of HILP as Officers pursuant to Section 2.2(d), then GMIMCo shall have the right to
acquire, or cause its designee to acquire, from Hines Investor a number of Common Shares equal to,
but not less than, the number of Common Shares issued to Hines Investor pursuant to the
Organization Agreement in excess of the number of Preferred Shares issued to Hines Investor
pursuant to the Organization Agreement (such excess number of Common Shares, the “Promote
Shares”) for a purchase price equal to the Fair Market Value of such Common Shares as of the
date (the “Removal Date”) of the Majority Shareholder Vote by which the Hines Designees and
such Officers were removed. In order to exercise such right, GMIMCo must give written notice to
Hines Investor of its election to do so within 10 days after the Removal Date. The “Fair
Market Value” of the Promote Shares, as of any date, means an amount equal to the product of
(x) the number of Promote Shares and (y) the amount in cash that would be distributed in respect of
each Common Share if, on such date, all assets of the Trust were sold for their Appraised Value and
the Projected Net Proceeds of such sales were distributed to the Shareholders in accordance with
Section 6.6 of the Declaration of Trust. For purposes hereof, the terms “Projected Net
Proceeds” and “Appraised Value” have the meanings given to such terms in the Investor
Rights Agreement; provided, that Hines Investor shall have the right to require a new
appraisal with respect to any asset to the same extent as GMIMCo would have such right under
Article 4 of the Investor Rights Agreement with respect to any appraisal obtained pursuant to the
Investor Rights Agreement.

          (b) The closing of the purchase and sale of the Promote Shares pursuant to this Section 3.2
shall take place within 30 days after the Fair Market Value of the Promote Shares has been finally
determined. At such closing, Hines Investor shall deliver the Promote Shares to GMIMCo or its
designee free and clear of any liens or encumbrances, other than such liens and encumbrances as are
created by the Declaration of Trust, any of the Transaction Agreements or GMIMCo or any of its
Affiliates, in exchange for an amount in cash equal to the

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Fair Market Value of the Promote Shares or a promissory note from a credit-worthy entity
having a principal face amount equal to the Fair Market Value of the Promote Shares and a term of
not more than three years which bears interest at the Prime Rate. For purposes hereof, the term
“Prime Rate” has the meaning given to such term in the Investor Rights Agreement.

ARTICLE IV

Distribution Policy; Capital Contributions

          SECTION 4.1 Distribution Policy. It is the intention of the Shareholders that, subject to the
provisions of the Declaration of Trust and the Investor Rights Agreement, the Trust pay quarterly
dividends in an amount equal to the Trust’s net cash flow, less such amount as the Board of
Trustees determines to retain as a reasonable reserve for contingencies or to fund capital
expenditures with respect to the Properties.

          SECTION 4.2 Capital Contributions.

          (a) The Trust may, upon determination by the Board, from time to time, seek to meet the
capital requirements of the Trust by requesting that the Shareholders contribute additional capital
to the Trust (any such contribution, a “Capital Contribution”). In such event, each
Shareholder shall be entitled, but not required, to contribute a portion of the total amount of
capital requested by the Trust (the “Optional Call Amount”) in an amount equal to its
Percentage Interest of the Optional Call Amount. If any Shareholder elects not to contribute
capital in response to such a request, then each Shareholder that does elect to contribute (a
“Participating Shareholder”) will be entitled to contribute its pro rata share (based on
its Percentage Interest relative to the Percentage Interests of the other Participating
Shareholders) of the deficiency, and its pro rata share of any remaining deficiency resulting from
any Participating Shareholders declining to fund its share of the initial deficiency. If the
aggregate amount that Participating Shareholders elect to contribute is less than the Optional Call
Amount, then the Trust shall take such further action as it deems appropriate, such as, for
example, reducing the Optional Call Amount to the aggregate amount Participating Shareholders are
willing to contribute, seeking other sources of funds, or foregoing some or all of the expenditures
for which Capital Contributions were being requested.

          (b) If the Trust determines to request Capital Contributions as contemplated by Section
4.2(a), the following procedures shall be followed:

     (i) The Trust will give the Shareholders notice of such determination at least
45 days in advance of the date it anticipates calling for such capital. Such notice
(an “Advance Capital Call Notice”) shall include (1) the anticipated date on
which Capital Contributions will be funded, (2) the aggregate amount of Capital
Contributions that will be called and each Shareholder’s pro rata share thereof
(based on the Shareholders’ respective Percentage Interests), (3) a reasonably
detailed explanation of the expenses to be paid with the proceeds of such
Capital Contributions, and (4) the Current Share Price (as defined below) as of the
most

-12-

 

     recent practicable date and a reasonably detailed explanation of the
calculation of such Current Share Price.

     (ii) If the Trust issues an Advance Capital Call Notice, then each Shareholder
that wishes to contribute capital in response to such Advance Capital Call Notice
must give notice to such effect to the Trust on or before the 10th Business Day
after the date of the Advance Capital Call Notice or by such later date, if any,
that the Trust may specify. Each Shareholder that delivers such notice within the
required time period will be deemed a Participating Shareholder with respect to such
Advance Capital Call Notice and will be required to contribute its share of the
Optional Call Amount as determined pursuant to Section 4.2(a).

     (iii) After the Trust has determined the actual payment date for Capital
Contributions as to which it has delivered an Advance Capital Call Notice and the
amount to be contributed by each Shareholder, it shall deliver a notice (a
“Capital Call Notice”) to the Shareholders setting forth (1) the date on
which the Capital Contributions must be funded (the “Payment Date”), which
date shall be no more than 20 days after the date of the Capital Call Notice, (2)
the amount to be contributed by each Shareholder, (3) the account to which Capital
Contributions are to be paid and (4), if not all Shareholders are Participating
Shareholders making contributions equal to their Percentage Interest of the Optional
Call Amount, the Current Share Price as of the Payment Date and a reasonably
detailed explanation of calculation of such Current Share Price. All Capital
Contributions made on or before the Payment Date specified in a Capital Call Notice
shall be deemed made on the Payment Date.

     (iv) The “Current Share Price” as of any date shall be determined by
dividing the total equity value of the Trust as of such date (determined by the
Board by reference to the Appraised Value of the Properties as of such date and the
assets and liabilities of the Trust other than its interests in the Properties as of
such date) by the number of Preferred Shares outstanding. The Trust shall provide
the Shareholders with a reasonably detailed explanation of the Board’s determination
of Current Share Price as soon as practicable on or before any date as of which its
use is required. If GMIMCo is not satisfied with the Appraised Value used by the
Board in its determination of the Current Share Price, it shall be entitled to seek
a new determination of the Appraised Value pursuant to Sections 4.02 and 4.03 of the
Investor Rights Agreement, and the Current Share Price will be re-calculated based
on the Appraised Value so determined.

          (c) In consideration of any Capital Contributions received by the Trust pursuant to this
Section 4.2, the Trust shall issue Shares to each Shareholder making a Capital Contribution as
follows:

     (i) In respect of capital contributed by Hines Investor or the Fund
Partnership, the Trust will issue to the Person making the contribution (i) a

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     number of Class A Preferred Shares equal to the total amount contributed by such Person
divided by the Issue Price (as defined below), and (ii) a number of Class A Common
Shares equal to such number of Class A Preferred Shares.

     (ii) In respect of capital contributed by any GM Investor, the Trust (i) will
issue to such GM Investor (A) a number Class B Preferred Shares equal to the total
amount contributed by such GM Investor divided by the Issue Price and (B) a number
of Class B Common Shares equal to 0.925 of such number of Class B Preferred Shares
and (ii) will issue to Hines Investor a number of Class A Common Shares equal to
0.075 of the number of Class B Preferred Shares issued to such GM Investor.

     (iii) As long as all Capital Contributions are made by all Shareholders pro
rata in proportion to their applicable ownership percentages, the “Issue
Price” shall be $1000.00 per Share, and, if Capital Contributions are not made
by all Shareholders pro rata in proportion to their applicable ownership
percentages, the “Issue Price” shall be determined the Current Share Price.
If the determination of Current Share Price is delayed pursuant to Section 4.03 or
4.04 of the Investor Rights Agreement until after Capital Contributions are made,
the Issue Price and corresponding adjustments to Shareholders’ Shares shall be
determined and made as soon as practicable after the Current Share Price is
determined.

          (d) Notwithstanding any other provision of this Agreement to the contrary, the Trust, the Fund
Partnership and GMIMCo may from time to time adopt capital call procedures in addition to or as an
alternative to the procedures provided in Section 4.2 (b). Any such procedures adopted by
agreement between GMIMCo, the Fund Partnership, and the Trust shall be binding on all Shareholders.

          (e) Notwithstanding any other provision of this Agreement to the contrary, if the Trust
determines to call for additional Capital Contributions for the purpose of redeeming the Class B
Preferred Shares pursuant to the applicable provisions of the Declaration of Trust, the holders of
Class B Preferred Shares will not have any right or obligation to make Capital Contributions in
respect of such capital call and shall be excluded from any Anticipated Call Notice or Capital Call
Notice issued in respect thereof.

ARTICLE V

Miscellaneous

          SECTION 5.1 Entire Agreement. This Agreement restates and supersedes the First Restated
Agreement in its entirety, and the First Restated Agreement shall have no further force or effect.
This Agreement and the other Transaction Agreements constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and supersede any prior agreement or
understanding among or between them with respect to such subject matter.

          SECTION 5.2 Severability. Each provision of this Agreement shall be considered severable and
if for any reason any provision which is not essential to the effectuation

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of the basic purposes of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable
and contrary to existing or future applicable law, such invalidity shall not impair the operation
of or affect those provisions of this Agreement which are valid. In that case, this Agreement
shall be construed so as to limit any term or provision so as to make it enforceable or valid
within the requirements of any applicable law, and in the event such term or provision cannot be so
limited, this Agreement shall be construed to omit such invalid or unenforceable provisions.

     SECTION 5.3 Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (i) mailed, registered mail,
first-class postage paid, (ii) sent by overnight mail or courier, or (iii) delivered by hand, if to
any Person, at such Person’s address, or to such Person’s facsimile number, as set forth in the
Organization Agreement or as otherwise provided to the other parties hereto in accordance with this
Section 5.3. Any party may change the address to which notices, requests, demands or other
communications under this Agreement are to be delivered by giving the other parties notice pursuant
to this Section 5.3. Any notice shall be deemed to have been duly given if personally delivered or
sent by the mails or courier or by facsimile confirmed by letter and will be deemed received,
unless earlier received, (i) if sent by certified or registered mail, return receipt requested,
when actually received, (ii) if sent by overnight mail or courier, when actually received, and
(iii) if delivered by hand, on the date of receipt.

     SECTION 5.4 Amendments and Waivers. No amendment to any provisions of this Agreement shall be
valid unless it is in writing and signed by all the parties hereto. No waiver by any party of any
default, misrepresentation or breach or warranty or covenant hereunder, whether intentional or not,
shall be deemed to extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or
subsequent occurrence. No waiver shall be effective hereunder unless contained in a writing signed
by the party to be charged with such waiver.

     SECTION 5.5 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

     SECTION 5.6 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their legal representatives, heirs, successors and permitted
assigns. No party hereto may assign any of its rights or obligations hereunder without the consent
of the other parties, except to the extent such assignment is permitted or required in connection
with a Transfer of Shares made in accordance with the provisions of Article III.

     SECTION 5.7 Construction. Each party hereto acknowledges that is has been represented by
counsel during the negotiation, preparation and execution of this Agreement and, therefore, waives
the application of any law, regulation, holding or rule of construction providing that ambiguities
in an agreement or document will be construed against the party drafting such agreement or
document.

-15-

 

          SECTION 5.8 Headings. The Article and Section headings in this Agreement are for convenience
of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any
provisions hereof.

          SECTION 5.9 No Third Party Beneficiaries. Nothing in this Agreement, expressly or implied, is
intended to confer upon any Person other than the parties hereto or their respective successors and
permitted assigns any rights, benefits, remedies, obligations or liabilities under this Agreement.

          SECTION 5.10 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which, when taken together, shall constitute one
and the same instrument.

[Signature Pages Follow]

-16-

 

Exhibit 10.10

          IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered
as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	HINES-SUMISEI U.S. CORE OFFICE FUND, L.P.
	 
	 	 	 	 	 	 
	 	 	By: Hines US Core Office Capital LLC
	 
	 	 	 	 	 	 
	 	 	 	 	By: Hines Interests Limited Partnership
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	By: Hines Holdings, Inc.

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles N. Hazen
 

Charles N. Hazen
	 	 
	 

	 	 	 	Senior Vice President	 	 

	 	 	 	 	 
	 	 	HINES-SUMISEI NY CORE OFFICE TRUST
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles N. Hazen
	 

	 	 	 	 
	 

	 	 	 	Charles N. Hazen
	 

	 	 	 	President

	 	 	 	 	 	 	 
	 	 	HINES US CORE OFFICE CAPITAL
	 	 	ASSOCIATES III LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	 	 	By: Hines Interests Limited Partnership
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	By: Hines Holdings, Inc.

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles M. Baughn	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Charles M. Baughn

Executive Vice President.
	 	 

-17-

 

	 	 	 	 	 	 	 
	 	 	GENERAL MOTORS INVESTMENT
	 	 	MANAGEMENT CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Z. Jamie Behar
	 

	 	 	 	 
	 

	 	 	 	Z. Jamie Behar
	 

	 	 	 	Authorized Signatory
	 
	 

	 	 	 	           *
	 

	 	By:	 	/s/       *	 	 
	 

	 	 	 	 

Name: *
		
	 

	 	 	 	 

Title:   *
	 	 

-18-

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