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Exhibit 4.3  

APEX SILVER MINES LIMITED  

 
 

2004 Equity Incentive Plan    
    

1.    Purposes.  

	(a)
	Background. This Plan was adopted on April 22, 2004, and approved by shareholders effective May 27, 2004.

	(b)
	Eligible Share Award Recipients. The persons eligible to receive Share Awards are the Employees, Directors and Consultants of the
Company and its Affiliates.

	(c)
	Available Share Awards. The purpose of the Plan is to provide a means by which eligible recipients may be given an opportunity to
benefit from increases in value of the Ordinary Shares through the granting of the following: (i) Incentive Share Options, (ii) Nonqualified Share Options, (iii) rights to acquire
restricted shares, and (iv) share appreciation rights.

	(d)
	General Purpose. The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Share
Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 

2.    Definitions.  

	(a)
	"Affiliate" means any entity that controls, is controlled by, or is under common control with the Company.

	(b)
	"Board" means the Board of Directors of the Company.

	(c)
	"Code" means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated
thereunder.

	(d)
	"Committee" means a pre-existing or newly formed committee of members of the Board appointed by the
Board in accordance with subsection 3(c).

	(e)
	"Company" means Apex Silver Mines Limited, a Cayman Islands company.

	(f)
	"Consultant" means any person, including an advisor, (i) engaged by the Company or an Affiliate to
render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate.

	(g)
	"Continuous Service" means that the Participant's service with the Company or an Affiliate, whether as an
Employee, Director or Consultant, is not interrupted or terminated. Unless otherwise provided in a Share Award Agreement or Option Agreement, as applicable, the Participant's Continuous Service shall
not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change
in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant's service to the Company or an Affiliate as an Employee, Director
or Consultant. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate may not constitute an interruption of Continuous Service. The Board, in its sole
discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence, including sick leave, military leave or any other personal leave. 

	(h)
	"Covered Employee" means the Company's chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to shareholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

	(i)
	"Director" means a member of the Board of Directors of the Company.

	(j)
	"Disability" means the Participant's inability, due to illness, accident, injury, physical or mental incapacity
or other disability, to carry out effectively the duties and obligations to the Company and its Affiliates performed by such person immediately prior to such disability for a period of at least six
(6) months, as determined in the good faith judgment of the Board.

	(k)
	"Dollars" or "$" or  "US$" means
United States dollars.

	(l)
	"Employee" means any person employed by the Company or an Affiliate. Service as a Director or payment of a
director's fee by the Company or an Affiliate alone shall not be sufficient to constitute "employment" by the Company or an Affiliate.

	(m)
	"Exchange Act" means the Securities Exchange Act of 1934, as amended.

	(n)
	"Fair Market Value" means, as of any date, the value of the Ordinary Shares determined as follows:

	(i)
	If the Ordinary Shares are listed on any established share exchange, or traded on the Nasdaq National Market or the
Nasdaq SmallCap Market, the Fair Market Value of Ordinary Shares shall be the closing sales price for such share (or the closing bid, if no sales were reported) as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in Ordinary Shares if such shares are traded on more than one such exchange or market) on the last market trading day prior to the day of
determination, as reported by such exchange or market or such other source as the Board reasonably deems reliable.

	(ii)
	In the absence of such markets for the Ordinary Shares, the Fair Market Value shall be determined in good faith by the
Board.

 

	(o)
	"Incentive Share Option" means an Option designated as an incentive share option in an Option Agreement and
that is granted in accordance with the requirements of, and that conforms to the applicable provisions of, Section 422 of the Code.

	(p)
	"Independent Director" means (i) a Director who satisfies the definition of Independent Director or
similar definition under the applicable share exchange or Nasdaq rules and regulations upon which the Ordinary Shares are traded from time to time and (ii) a Director who either (A) is
not a current employee of the Company or an "affiliated corporation" (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the
Company or an "affiliated corporation" receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an "affiliated
corporation" at any time and is not currently receiving direct or indirect remuneration from the Company or an "affiliated corporation" for services in any capacity other than as a Director or
(B) is otherwise considered an "outside director" for purposes of Section 162(m) of the Code.

	(q)
	"Nonqualified Share Option" means an Option that is not designated in an Option Agreement as an Incentive Share
Option or was not granted in accordance with the requirements of, and does not conform to the applicable provisions of, Section 422 of the Code.

	(r)
	"Officer" means a person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

	(s)
	"Option" means an Incentive Share Option or a Nonqualified Share Option granted pursuant to the Plan. 

	(t)
	"Option Agreement" means a written agreement between the Company and an Optionholder evidencing the terms and
conditions of an individual Option grant.

	(u)
	"Optionholder" means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other
person who holds an outstanding Option.

	(v)
	"Ordinary Shares" means the Company's ordinary shares par value US$0.01 and other rights with respect to such
shares.

	(w)
	"Participant" means a person to whom a Share Award is granted pursuant to the Plan or, if applicable, such
other person who holds an outstanding Share Award.

	(x)
	"Plan" means this Apex Silver Mines Limited 2004 Equity Incentive Plan.

	(y)
	"Retirement" means an Employee's retirement from the Company or an Affilitate, (i) on or after attaining
age 55 and completing at least ten (10) years of service; or (ii) on or after attaining age 65.

	(z)
	"Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or any
successor to Rule 16b-3, as in effect from time to time.

	(aa)
	"Securities Act" means the Securities Act of 1933, as amended.

	(bb)
	"Share Award" means any right granted under the Plan, including an Option, a right to acquire restricted
Ordinary Shares, and a share appreciation right.

	(cc)
	"Share Award Agreement" means a written agreement between the Company and a holder of a Share Award (other
than an Option) evidencing the terms and conditions of an individual Share Award grant.

	(dd)
	"Ten Percent Shareholder" means a person who owns (or is deemed to own pursuant to Section 424(d) of
the Code) shares possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or any parent corporation or any subsidiary corporation, both as
defined in Section 424 of the Code. 

3.    Administration.  

	(a)
	Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as
provided in subsection 3(c). The Board may, at any time and for any reason in its sole discretion, rescind some or all of such delegation.

	(b)
	Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

	(i)
	To determine from time to time which of the persons eligible under the Plan shall be granted Share Awards; when and how
each Share Award shall be granted; what type or combination of types of Share Award shall be granted; the provisions of each Share Award granted (which need not be identical), including the time or
times when a person shall be permitted to receive Ordinary Shares pursuant to a Share Award; and the number of Ordinary Shares with respect to which a Share Award shall be granted to each such person.

	(ii)
	To construe and interpret the Plan, Share Awards granted under it, Option Agreements and Share Award Agreements, and to
establish, amend and revoke rules and regulations for their administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Option
Agreement or Share Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

	(iii)
	To amend the Plan, a Share Award, a Share Award Agreement or an Option Agreement as provided in Section 12. 

	(iv)
	Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the
best interests of the Company which are not in conflict with the provisions of the Plan. 

(c)   Delegation to Committee.  

	(i)
	General. The Board may delegate administration of the Plan and its powers and duties thereunder to a Committee or
Committees, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. Upon such delegation, the Committee
shall have the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in
this Plan to the Board shall thereafter be deemed to include the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under this Plan, except respecting
matters under Rule 16b-3 of the Exchange Act or Section 162(m) of the Code, or any rules or regulations issued thereunder, which are required to be determined in the sole
discretion of the Committee.

	(ii)
	Committee Composition. A Committee shall consist solely of two or more Independent Directors. Within the scope of its
authority, the Board or the Committee may (1) delegate to a committee of one or more members of the Board who are not Independent Directors the authority to grant Share Awards to eligible
persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Share Award or (b) not persons
with respect to whom the Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate to a committee of one or more members of the Board who are not Independent
Directors or to the Company's Chief Executive Officer the authority to grant Share Awards to eligible persons who are not then subject to Section 16 of the Exchange Act.

 

	(d)
	Effect of Board's Decision; No Liability. All determinations, interpretations and constructions made by the Board in good faith shall
not be subject to review by any person and shall be final, binding and conclusive on all persons. No member of the Board or the Committee or any person to whom duties hereunder have been delegated
shall be liable for any action, interpretation or determination made in good faith, and such persons shall be entitled to full indemnification and reimbursement consistent with applicable law and in
the manner provided in the Company's Memorandum and Articles of Association, as the same may be amended from time to time, or as otherwise provided in any agreement between any such member and the
Company. 

4.    Shares Subject to the Plan.  

	(a)
	Share Reserve. Subject to the provisions of Section 11 relating to adjustments upon changes in Ordinary Shares, the Ordinary
Shares that may be issued pursuant to Share Awards shall not exceed in the aggregate Two Million (2,000,000) Ordinary Shares. Share appreciation rights provided for in Section 7(b) hereof that
are payable only in cash will not reduce the number of Ordinary Shares available for Share Awards granted under the Plan.

	(b)
	Reversion of Shares to the Share Reserve. If any Share Award shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, the Ordinary Shares not acquired under such Share Award shall revert to and again become available for issuance under the Plan.

	(c)
	Source of Shares. The Ordinary Shares subject to the Plan may be unissued shares or reacquired shares, bought on the market or
otherwise. 

5.    Eligibility.  

	(a)
	Eligibility for Specific Share Awards. Incentive Share Options may be granted only to Employees. Share Awards other than Incentive
Share Options may be granted to Employees, Directors and Consultants.

	(b)
	Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Share Option unless the exercise price of such
Option is at least one hundred ten percent (110%) of the Fair Market Value of the Ordinary Shares at the date of grant and the Option is not exercisable after the expiration of five (5) years
from the date of grant.

	(c)
	Limitations on Share Awards. No Participant shall be eligible to be granted Share Awards covering more than 150,000 Ordinary Shares
during any calendar year.

	(d)
	Consultants.  
	(i)
	A Consultant shall not be eligible for the grant of a Share Award if, at the time of grant, a Form S-8 Registration Statement
under the Securities Act ("Form S-8") is not available to register a resale of the Company's securities issued to such Consultant
because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the rules governing the use of
Form S-8, unless the Board determines both (i) that such grant (A) shall be registered in another manner under the Securities Act
(e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions.

	(ii)
	Form S-8 generally is available to consultants and advisors only if (i) they are natural
persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or majority-owned subsidiaries of the issuer's parent; and (iii) the services
are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the issuer's securities. 

6.    Option Provisions.  

        Each
Option Agreement shall be subject to the terms and conditions of this Plan. Each Option and Option Agreement shall be in such form and shall contain such terms and conditions as the
Board shall deem appropriate. All Options shall be separately designated Incentive Share Options or Nonqualified Share Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates will be issued for Ordinary Shares purchased on exercise of each type of Option. The provisions of separate Options need not be identical. 

	(a)
	Provisions Applicable to All Options.

	(i)
	Consideration. The purchase price of Ordinary Shares acquired pursuant to an Option shall be paid in cash in Dollars at
the time the Option is exercised.

	(ii)
	Vesting Generally. The total number of Ordinary Shares subject to an Option may (A) vest, and therefore become
exercisable, in periodic installments that may, but need not, be equal, or (B) be fully vested at the time of grant. The Option may be subject to such other terms and conditions on the time or
times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions, if any, of individual Options may vary. The provisions
of this subsection 6(a)(ii) are subject to any Option Agreement provisions governing the minimum number of Ordinary Shares as to which an Option may be exercised.

	(iii)
	Termination of Continuous Service. Unless otherwise provided in the Option Agreement, in the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death, Disability, Retirement or as a result of a Change of Control), all 

Options
held by the Optionholder shall immediately terminate; provided, however, if an Optionholder's Continuous Service is terminated for reasons other than for cause, all vested Options held by such
person shall continue to be exercisable until the earlier of the expiration date of such Option or 180 days after the date of such termination. All such vested Options not exercised within the
period described in the preceding sentence shall terminate. 

	(iv)
	Disability or Death of Optionholder. Unless otherwise provided in the Option Agreement, in the event that an
Optionholder's Disability or death, all unvested Options shall immediately terminate, and all vested Options held by such person shall continue to be exercisable until 12 months after the date
of such Disability or death. All such vested Option not exercised within such 12-month period shall terminate.

	(v)
	Retirement. Unless otherwise provided in the Option Agreement, in the event of the Optionholder's Retirement, all
unvested Options shall automatically vest on the date of such Retirement and all Options shall be exercisable until the earlier of 24 months after such Retirement date or the expiration date of
such Options. All such Options not exercised within the period described in the preceding sentence shall terminate.

 

	(b)
	Provisions Applicable to Incentive Share Options.

	(i)
	Term. Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders, no Incentive Share Option shall be
exercisable after the expiration of ten (10) years from the date it was granted. Further, no grant of an Incentive Share Option shall be made under this Plan more than ten (10) years
after the date the Plan is approved by the shareholders of the Company.

	(ii)
	Exercise Price of an Incentive Share Option. Subject to the provisions of subsection 5(b) regarding Ten Percent
Shareholders, the exercise price of each Incentive Share Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Ordinary Shares subject to the Option on the date the
Option is granted.

	(iii)
	Transferability of an Incentive Share Option. An Incentive Share Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.

	(iv)
	Incentive Share Option $100,000 Limitation. Notwithstanding any other provision of the Plan or an Option Agreement, the
aggregate Fair Market Value of the Ordinary Shares with respect to which Incentive Share Options are exercisable for the first time by an Optionholder in any calendar year, under the Plan or any other
option plan of the Company or its Affiliates, shall not exceed $100,000. For this purpose, the Fair Market Value of the Ordinary Shares shall be determined as of the time an Option is granted. The
Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonqualified Share Options.

 

	(c)
	Provisions Applicable to Nonqualified Share Options.

	(i)
	Exercise Price of a Nonqualified Share Option. To assure sufficient Board discretion, the exercise price of each
Nonqualified Share Option shall be not less than eighty-five percent (85%) of the Fair Market Value of the Ordinary Shares subject to the Option on the date the Option is granted,
provided, however, that the exercise price of each Nonqualified Share Option granted to a Covered Employee shall not be less than one hundred percent (100%) of the Fair Market Value of the Ordinary
Shares subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonqualified Share Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

	(ii)
	Transferability of a Nonqualified Share Option. A Nonqualified Share Option shall be transferable, if at all, to the
extent provided in the Option Agreement. If the Option Agreement does not provide for transferability, then the Nonqualified Share Option shall not be transferable except by will or by the laws of
descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. 

7.    Provisions of Share Awards other than Options.  

	(a)
	Restricted Share Awards. Each restricted share award agreement shall be in such form and shall contain such restrictions, terms and
conditions, if any, as the Board shall deem appropriate and shall be subject to the terms and conditions of this Plan. The terms and conditions of restricted share award agreements may change from
time to time, and the terms and conditions of separate restricted share award agreements need not be identical, but each restricted share award agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

	(i)
	Consideration. A restricted share award may be awarded in consideration for past services actually rendered, or for
future services to be rendered, to the Company or an Affiliate for its benefit.

	(ii)
	Vesting. Ordinary Shares awarded under the restricted share award agreement may (A) be subject to a vesting
schedule to be determined by the Board, or (B) be fully vested at the time of grant.

	(iii)
	Termination of Participant's Continuous Service. Unless otherwise provided in the restricted share award agreement, in
the event a Participant's Continuous Service terminates prior to a vesting date set forth in the restricted share award agreement, any unvested restricted share award shall be forfeited and
automatically transferred to and reacquired by the Company at no cost to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors shall have any right or
interest in the restricted share award. Notwithstanding the foregoing, unless otherwise provided in the restricted share award agreement, in the event a Participant's Continuous Service terminates as
a result of (A) being terminated by the Company for reasons other than for cause, (B) death, (C) Disability, (D) Retirement, or (E) a Change of Control (subject to
the provisions of Section 11(c) hereof), then any unvested restricted share award shall vest immediately upon such date.

	(iv)
	Transferability. Rights to acquire Ordinary Shares under the restricted share award agreement shall be transferable by
the Participant only upon such terms and conditions as are set forth in the restricted share award agreement, as the Board shall determine in its discretion, so long as Ordinary Shares awarded under
the restricted share award agreement remain subject to the terms of the restricted share award agreement.

 

	(b)
	Grant of Share Appreciation Rights. Share appreciation rights to receive in cash (or its equivalent in Ordinary Shares) the excess of
the Fair Market Value of Ordinary Shares on the date the rights are surrendered over the Fair Market Value of Ordinary Shares on the date of grant may be granted to any Employee, Director or
Consultant selected by the Board. A share appreciation right may be granted (i) in connection and simultaneously with the grant of another Share Award, (ii) with respect to a previously
granted Share Award, or (iii) independent of another Share Award. A share appreciation right shall be subject to such terms and conditions not inconsistent with this Plan as the Board shall
impose and shall be evidenced by a written share appreciation right agreement, which shall be executed by the Participant and an authorized officer of the Company. The Board, in its discretion, may
determine whether a share appreciation right is to qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code and share appreciation right agreements evidencing
share appreciation rights intended to so qualify shall contain such terms and 

conditions
as may be necessary to meet the applicable provisions of Section 162(m) of the Code. The Board may, in its discretion and on such terms as it deems appropriate, require as a
condition of the grant of a share appreciation right that the Participant surrender for cancellation some or all of the Share Awards previously granted to such person under this Plan or otherwise. A
share appreciation right, the grant of which is conditioned upon such surrender, may have an exercise price lower (or higher) than the exercise price of the surrendered Share Award, may contain such
other terms as the Board deems appropriate, and shall be exercisable in accordance with its terms, without regard to the number of shares, price, exercise period or any other term or condition of such
surrendered Share Award. 

	8.
	Availability of Shares. During the terms of the Share Awards, the Company shall keep available at all times the number of Ordinary
Shares required to satisfy such Share Awards. 

9.    Use of Proceeds from Share.  

        Proceeds
from the sale of Ordinary Shares pursuant to Share Awards shall constitute general funds of the Company. 

10.    Miscellaneous.  

	(a)
	Exercise of Awards. Share Awards shall be exercisable at such times, or upon the occurrence of such event or events as the Board shall
determine at or subsequent to grant. Share Awards may be exercised in whole or in part. Ordinary Shares purchased upon the exercise of a Share Award shall be paid for in full at the time of such
purchase.

	(b)
	Acceleration of Exercisability and Vesting. The Board shall have the power to accelerate the time at which a Share Award may first be
exercised or the time during which a Share Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Share Award stating the time at which it may first be
exercised or the time during which it will vest.

	(c)
	Shareholder Rights.

	(i)
	Options. Unless otherwise provided in and upon the terms and conditions in the Option Agreement, no Participant shall be
deemed to be the holder of, or to have any of the rights of a holder with respect to, any Ordinary Shares subject to an Option unless and until such Participant has satisfied all requirements for
exercise of, and has exercised, the Option pursuant to its terms.

	(ii)
	Restricted Shares. Unless otherwise provided in and upon the terms and conditions in the restricted share award
agreement, a Participant shall have the right to receive all dividends and other distributions paid or made respecting such restricted shares, provided, however, no unvested restricted shares shall
have any voting rights of a shareholder respecting such unvested restricted shares unless and until such unvested restricted shares become vested.

 

	(d)
	No Employment or other Service Rights. Nothing in the Plan or any instrument executed or Share Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Share Award was granted, or any other capacity, or shall affect the
right of the Company or an Affiliate to terminate with or without notice and with or without cause (i) the employment of an Employee, (ii) the service of a Consultant to the Company or
an Affiliate or (iii) the service of a Director of the Company or an Affiliate.

	(e)
	Withholding Obligations. If the Company has or will have a legal obligation to withhold the taxes related to the grant, vesting or
exercise of the Share Award, such Award may not be granted, vested or exercised in whole or in part, unless such tax obligation is first satisfied in a 

manner
satisfactory to the Company. To the extent provided by the terms of a Share Award Agreement or Option Agreement, the Participant may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of Ordinary Shares under a Share Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to
the Participant by the Company) or by a combination of such means: (i) tendering a cash payment in Dollars; (ii) authorizing the Company to withhold Ordinary Shares from the Ordinary
Shares otherwise issuable to the Participant as a result of the exercise or acquisition of Ordinary Shares under the Share Award, provided, however, that no Ordinary Shares are withheld with a value
exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered Ordinary Shares. 

	(f)
	Listing and Qualification of Shares. This Plan and grant and exercise of Share Awards hereunder, and the obligation of the Company to
sell and deliver Ordinary Shares under such Share Awards, shall be subject to all applicable United States federal and state laws, rules and regulations and to such approvals by any government or
regulatory agency as may be required. The Company, in its discretion, may postpone the issuance or delivery of Ordinary Shares upon any exercise of a Share Award until completion of any stock exchange
listing, or other qualification of such Ordinary Shares under any United States federal or state law rule or regulation as the Company may consider appropriate, and may require any individual to whom
a Share Award is granted, such individual's beneficiary or legal representative, as applicable, to make such representations and furnish such information as the Board may consider necessary, desirable
or advisable in connection with the issuance or delivery of the Ordinary Shares in compliance with applicable laws, rules and regulations.

	(g)
	Non-Uniform Determinations. The Board's determinations under this Plan (including, without limitation, determinations of
the persons to receive Share Awards, the form, term, provisions, amount and timing of the grant of such Share Awards and of the agreements evidencing the same) need not be uniform and may be made by
it selectively among persons who receive, or are eligible to receive, Share Awards under this Plan, whether or not such persons are similarly situated. 

11.    Adjustments upon Changes in Share.  

	(a)
	Capitalization Adjustments. If any change is made in the Ordinary Shares subject to the Plan, or subject to any Share Award, without
the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, share dividend, dividend in property other than cash, share split,
liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction), the Plan will be appropriately adjusted in the class(es) and maximum number of
securities subject to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection 5(c), and the outstanding Share Awards will be
appropriately adjusted in the class(es) and number of securities and price per share of Ordinary Shares subject to such outstanding Share Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction "without receipt of consideration" by the
Company.)

	(b)
	Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Share Awards shall
terminate immediately prior to such event.

	(c)
	Asset Sale, Merger, Consolidation or Reverse Merger. In the event of (i) a sale, lease or other disposition of all or
substantially all of the assets of the Company, (ii) a merger or consolidation of the Company with or into any other corporation or entity or person, or any other corporate reorganization, in
which the shareholders of the Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the Company's 

outstanding
voting power of the surviving entity (or its parent) following the consolidation, merger, or reorganization or (iii) any transaction (or series of related transactions involving a
person or entity, or a group of affiliated persons or entities) in which in excess of fifty percent (50%) of the Company's outstanding voting power is transferred (individually, a
"Change of Control"), then any unvested Share Awards shall vest immediately prior to the closing of the Change of Control, and the Board shall have the
power and discretion to provide for the Participant's election alternatives regarding the terms and conditions for the exercise of, or modification of, any outstanding Share Awards granted hereunder,
provided, however, such alternatives shall not affect the then current exercise provisions without such Participant's consent. The Board may provide that Share Awards granted hereunder must be
exercised in connection with the closing of such transaction, and that if not so exercised such Share Awards will expire. Any such determinations by the Board may be made generally with respect to all
Participants, or may be made on a case-by-case basis with respect to particular Participants. The provisions of this Section 11(c) shall not apply to any transaction
undertaken for the purpose of reincorporating the Company under the laws of another jurisdiction, if such transaction does not materially affect the beneficial ownership of the Company's capital
stock. 

12.    Amendment of the Plan and Share Awards.  

	(a)
	Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11
relating to adjustments upon changes in Ordinary Shares, no amendment shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy
the requirements of Section 422 of the Code, Rule 16b-3 or any applicable Nasdaq or securities exchange listing requirements.

	(b)
	Shareholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder approval,
including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers.

	(c)
	Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or
advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Share
Options and/or to bring the Plan and/or Incentive Share Options granted under it into compliance therewith.

	(d)
	No Impairment of Rights. Rights under any Share Award granted before amendment of the Plan shall not be impaired by any amendment of
the Plan unless the Participant consents in writing.

	(e)
	Amendment of Share Awards. The Board at any time, and from time to time, may amend the terms of any one or more Share Awards; provided,
however, that the rights under any Share Award shall not be impaired by any such amendment unless the applicable Participant consents in writing. 

13.    Termination or Suspension of the Plan.  

	(a)
	Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day
before the tenth (10th) anniversary of the date the Plan is adopted by the shareholders of the Company. No Share Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

	(b)
	No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Share Award granted
while the Plan is in effect except with the written consent of the Participant. 

	(c)
	Savings Clause. This Plan is intended to comply in all aspects with applicable laws and regulations. In case any one more of the
provisions of this Plan shall be held invalid, illegal or unenforceable in any respect under applicable law or regulation, the validity, legality and enforceability of the remaining provisions shall
not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provision shall be deemed null and void; however, to the extent permissible by law, any provision which could
be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Plan to be construed in compliance with all applicable laws so as to foster the intent of this
Plan. 

14.    Effective Date of Plan.  

        The
Plan shall become effective as determined by the Board, but no Share Award shall be exercised (or, in the case of a restricted share award, shall be granted) unless and until the
Plan has been approved by the shareholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 

15.    Choice of Law.  

        The
law of the Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state's conflict of laws rules. 

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Exhibit 10.1  

FORM OF AMENDED AND RESTATED 

AGREEMENT
OF LIMITED PARTNERSHIP 

OF 

KITE
REALTY GROUP, L.P. 

Dated
as of                , 2004 

 
 

TABLE OF CONTENTS    
    

	ARTICLE I DEFINED TERMS	 	1
	

ARTICLE II ORGANIZATIONAL MATTERS	
 	

13
	 	Section 2.1	 	Organization	 	13
	 	Section 2.2	 	Name	 	14
	 	Section 2.3	 	Registered Office And Agent; Principal Office	 	14
	 	Section 2.4	 	Term	 	14
	

ARTICLE III PURPOSE	
 	

14
	 	Section 3.1	 	Purpose And Business	 	14
	 	Section 3.2	 	Powers	 	15
	

ARTICLE IV CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS	
 	

15
	 	Section 4.1	 	Capital Contributions Of The Partners	 	15
	 	Section 4.2	 	Issuances Of Partnership Interests	 	16
	 	Section 4.3	 	No Preemptive Rights	 	17
	 	Section 4.4	 	Other Contribution Provisions	 	17
	 	Section 4.5	 	No Interest On Capital	 	17
	

ARTICLE V DISTRIBUTIONS	
 	

18
	 	Section 5.1	 	Requirement And Characterization Of Distributions	 	18
	 	Section 5.2	 	Amounts Withheld	 	20
	 	Section 5.3	 	Distributions Upon Liquidation	 	20
	 	Section 5.4	 	Revisions To Reflect Issuance Of Partnership Interests	 	20
	

ARTICLE VI ALLOCATIONS	
 	

21
	 	Section 6.1	 	Allocations For Capital Account Purposes	 	21
	 	Section 6.2	 	Revisions To Allocations To Reflect Issuance Of Partnership Interests	 	23
	

ARTICLE VII MANAGEMENT AND OPERATIONS OF BUSINESS	
 	

23
	 	Section 7.1	 	Management	 	23
	 	Section 7.2	 	Certificate of Limited Partnership	 	27
	 	Section 7.3	 	Title to Partnership Assets	 	28
	 	Section 7.4	 	Reimbursement of the General Partner	 	28
	 	Section 7.5	 	Outside Activities of the General Partner; Relationship of Shares to Partnership Units; Funding Debt	 	31
	 	Section 7.6	 	Transactions With Affiliates	 	33
	 	Section 7.7	 	Indemnification	 	33
	 	Section 7.8	 	Liability of the General Partner	 	35
	 	Section 7.9	 	Other Matters Concerning the General Partner	 	36
	 	Section 7.10	 	Reliance By Third Parties	 	37
	 	Section 7.11	 	Restrictions on General Partner's Authority	 	37
	 	Section 7.12	 	Loans by Third Parties	 	38

 

	

ARTICLE VIII RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS	
 	

38
	 	Section 8.1	 	Limitation of Liability	 	38
	 	Section 8.2	 	Management of Business	 	38
	 	Section 8.3	 	Outside Activities of Limited Partners	 	38
	 	Section 8.4	 	Return of Capital	 	39
	 	Section 8.5	 	Rights of Limited Partners Relating to the Partnership	 	39
	 	Section 8.6	 	Redemption Right	 	41
	

ARTICLE IX BOOKS, RECORDS, ACCOUNTING AND REPORTS	
 	

44
	 	Section 9.1	 	Records and Accounting	 	44
	 	Section 9.2	 	Fiscal Year	 	44
	 	Section 9.3	 	Reports	 	44
	

ARTICLE X TAX MATTERS	
 	

45
	 	Section 10.1	 	Preparation of Tax Returns	 	45
	 	Section 10.2	 	Tax Elections	 	45
	 	Section 10.3	 	Tax Matters Partner	 	45
	 	Section 10.4	 	Organizational Expenses	 	46
	 	Section 10.5	 	Withholding	 	46
	

ARTICLE XI TRANSFERS AND WITHDRAWALS	
 	

47
	 	Section 11.1	 	Transfer	 	47
	 	Section 11.2	 	Transfers of Partnership Interests of General Partner	 	48
	 	Section 11.3	 	Limited Partners' Rights to Transfer	 	48
	 	Section 11.4	 	Substituted Limited Partners	 	50
	 	Section 11.5	 	Assignees	 	51
	 	Section 11.6	 	General Provisions	 	51
	

ARTICLE XII ADMISSION OF PARTNERS	
 	

53
	 	Section 12.1	 	Admission of a Successor General Partner	 	53
	 	Section 12.2	 	Admission of Additional Limited Partners	 	53
	 	Section 12.3	 	Amendment of Agreement and Certificate of Limited Partnership	 	54
	

ARTICLE XIII DISSOLUTION AND LIQUIDATION	
 	

54
	 	Section 13.1	 	Dissolution	 	54
	 	Section 13.2	 	Winding Up	 	55
	 	Section 13.3	 	Compliance With Timing Requirements of Regulations; Restoration of Deficit Capital Accounts	 	56
	 	Section 13.4	 	Rights of Limited Partners	 	58
	 	Section 13.5	 	Notice of Dissolution	 	58
	 	Section 13.6	 	Cancellation of Certificate of Limited Partnership	 	58
	 	Section 13.7	 	Reasonable Time for Winding Up	 	59
	 	Section 13.8	 	Waiver of Partition	 	59
	 	Section 13.9	 	Liability Of Liquidator	 	59

ii

 

	

ARTICLE XIV AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS	
 	

59
	 	Section 14.1	 	Amendments	 	59
	 	Section 14.2	 	Meetings of the Partners	 	61
	

ARTICLE XV GENERAL PROVISIONS	
 	

62
	 	Section 15.1	 	Addresses and Notice	 	62
	 	Section 15.2	 	Titles and Captions	 	62
	 	Section 15.3	 	Pronouns And Plurals	 	62
	 	Section 15.4	 	Further Action	 	62
	 	Section 15.5	 	Binding Effect	 	62
	 	Section 15.6	 	Creditors	 	62
	 	Section 15.7	 	Waiver	 	62
	 	Section 15.8	 	Counterparts	 	63
	 	Section 15.9	 	Applicable Law	 	63
	 	Section 15.10	 	Invalidity Of Provisions	 	63
	 	Section 15.11	 	Power Of Attorney	 	63
	 	Section 15.12	 	Entire Agreement	 	64
	 	Section 15.13	 	No Rights As Shareholders	 	64
	 	Section 15.14	 	Limitation To Preserve REIT Status	 	65
	
EXHIBITS	
 	

 
	
EXHIBIT C	
 	

SPECIAL ALLOCATION RULES	
 	

 
	EXHIBIT D	 	NOTICE OF REDEMPTION	 	 
	EXHIBIT E	 	DRO PARTNERS AND DRO AMOUNTS	 	 

iii

 
 

FORM OF AMENDED AND RESTATED
  AGREEMENT OF LIMITED PARTNERSHIP
  OF
  KITE REALTY GROUP, L.P.    
    

        THIS
AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP, dated as of                , 2004, is entered into by and among Kite Realty Group Trust, a Maryland real estate
investment trust, as the General Partner, and the Persons whose names are set forth on the Partner Registry (as hereinafter defined) as Limited Partners, together with any other Persons who become
Partners in the Partnership as provided herein. 

        WHEREAS,
the General Partner and the Organizational Limited Partner entered into an Agreement of Limited Partnership of Kite Realty Group, L.P. dated as of March 29, 2004,
pursuant to which the Partnership was formed (the "Original Agreement"); 

        NOW,
THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree to amend and restate the Original Agreement in its entirety and agree to continue the Partnership as a limited partnership under the Delaware Revised Uniform Limited
Partnership Act, as amended from time to time, as follows: 

ARTICLE I

DEFINED TERMS  

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

        "Act"
means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time, and any successor to such statute. 

        "Additional
Limited Partner" means a Person admitted to the Partnership as a Limited Partner pursuant to Section 12.2 hereof and who is shown as a Limited Partner on the
Partnership Registry. 

        "Adjusted
Capital Account" means the Capital Account maintained for each Partner as of the end of each Fiscal Year (i) increased by any amounts which such Partner is obligated to
restore pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5) and (ii) decreased by the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and
1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith. 

        "Adjusted
Capital Account Deficit" means, with respect to any Partner, the deficit balance, if any, in such Partner's Adjusted Capital Account as of the end of the relevant Fiscal Year. 

 

        "Adjusted
Property" means any property the Carrying Value of which has been adjusted pursuant to Exhibit B. 

        "Affiliate"
means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with such Person, (ii) any Person
owning or controlling ten percent (10%) or more of the outstanding voting interests of such Person, (iii) any Person of which such Person owns or controls ten percent (10%) or more of the
voting interests or (iv) any officer, director, general partner or trustee of such Person or any Person referred to in clauses (i), (ii), and (iii) above. For purposes of this
definition, "control," when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 

        "Aggregate
DRO Amount" means the aggregate balances of the DRO Amounts, if any, of all DRO Partners, if any, as determined on the date in question. 

        "Agreed
Value" means (i) in the case of any Contributed Property, the Section 704(c) Value of such property as of the time of its contribution to the Partnership, reduced
by any liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed; and (ii) in the case of any property distributed to a Partner
by the Partnership, the Partnership's Carrying Value of such property at the time such property is distributed, reduced by any indebtedness either assumed by such Partner upon such distribution or to
which such property is subject at the time of distribution as determined under Section 752 of the Code and the regulations thereunder. 

        "Agreement"
means this Amended and Restated Agreement of Limited Partnership, as it may be amended, supplemented or restated from time to time. 

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

        "Available
Cash" means, with respect to any period for which such calculation is being made: 

	(a)
	all
cash revenues and funds received by the Partnership from whatever source (excluding the proceeds of any Capital Contribution, unless otherwise determined by the General Partner in
its sole and absolute discretion) plus the amount of any reduction (including, without limitation, a reduction resulting because the General Partner determines such amounts are no longer necessary) in
reserves of the Partnership, which reserves are referred to in clause (b)(iv) below;

	(b)
	less
the sum of the following (except to the extent made with the proceeds of any Capital Contribution):

	(i)
	all
interest, principal and other debt payments made during such period by the Partnership, 

2

 

	(ii)
	all
cash expenditures (including capital expenditures) made by the Partnership during such period,

	(iii)
	investments
in any entity (including loans made thereto) to the extent that such investments are permitted under this Agreement and are not otherwise described in
clauses (b)(i) or (ii), and

	(iv)
	the
amount of any increase in reserves established during such period which the General Partner determines is necessary or appropriate in its sole and absolute
discretion (including any reserves that may be necessary or appropriate to account for distributions required with respect to Partnership Interests having a preference over other classes of
Partnership Interests). 

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

        "Book-Tax
Disparities" means, with respect to any item of Contributed Property or Adjusted Property, as of the date of any determination, the difference between the Carrying
Value of such Contributed Property or Adjusted Property and the adjusted basis thereof for federal income tax purposes as of such date. A Partner's share of the Partnership's Book-Tax
Disparities in all of its Contributed Property and Adjusted Property will be reflected by the difference between such Partner's Capital Account balance as maintained pursuant to Exhibit B and
the hypothetical balance of such Partner's Capital Account computed as if it had been maintained strictly in accordance with federal income tax accounting principles. 

        "Business
Day" means any day except a Saturday, Sunday or other day on which commercial banks in Indianapolis, Indiana are authorized or required by law to close. 

        "Capital
Account" means the Capital Account maintained for a Partner pursuant to Exhibit B. The initial Capital Account balance for each Partner who is a Partner on the date
hereof shall be the amount set forth opposite such Partner's name on the Partner Registry. 

        "Capital
Contribution" means, with respect to any Partner, any cash, cash equivalents or the Agreed Value of Contributed Property which such Partner contributes or is deemed to
contribute to the Partnership. 

        "Carrying
Value" means (i) with respect to a Contributed Property or Adjusted Property, the Section 704(c) Value of such property reduced (but not below zero) by all
Depreciation with respect to such Contributed Property or Adjusted Property, as the case may be, charged to the Partners' Capital Accounts and (ii) with respect to any other Partnership
property, the adjusted basis of such property for
federal income tax purposes, all as of the time of determination. The Carrying Value of any property shall be adjusted from time to time in accordance with Exhibit B, and to reflect changes,
additions (including capital improvements thereto) or other adjustments to the Carrying Value for dispositions and acquisitions of Partnership properties, as deemed appropriate by the General Partner. 

3

 

        "Cash
Amount" means an amount of cash equal to the Value on the Valuation Date of the Shares Amount. 

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

        "Class
A" has the meaning set forth in Section 5.1.C. 

        "Class A
Share" has the meaning set forth in Section 5.1.C. 

        "Class A
Unit" means any Partnership Unit that is not specifically designated by the General Partner as being of another specified class of Partnership Units. 

        "Class
B" has the meaning set forth in Section 5.1.C. 

        "Class B
Share" has the meaning set forth in Section 5.1.C. 

        "Class B
Unit" means a Partnership Unit that is specifically designated by the General Partner as being a Class B Unit. 

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

        "Consent"
means the consent or approval of a proposed action by a Partner given in accordance with Article XIV. 

        "Consent
of the Outside Limited Partners" means the Consent of Limited Partners (excluding for this purpose (i) any Limited Partnership Interests held by the General Partner or
the General Partner Entity, (ii) any Person of which the General Partner or the General Partner Entity directly or indirectly owns or controls more than fifty percent (50%) of the voting
interests and (iii) any Person directly or indirectly owning or controlling more than fifty percent (50%) of the outstanding voting interests of the General Partner or the General Partner
Entity) holding Partnership Interests representing more than fifty percent (50%) of the Percentage Interest of the Class A Units of all Limited Partners who are not excluded for the purposes
hereof. 

        "Contributed
Property" means each property or other asset contributed to the Partnership, in such form as may be permitted by the Act, but excluding cash contributed or deemed
contributed to the Partnership. Once the Carrying Value of a Contributed Property is adjusted pursuant to Exhibit B, such property shall no longer constitute a Contributed Property for purposes
of Exhibit B, but shall be deemed an Adjusted Property for such purposes. 

        "Conversion
Factor" means 1.0; provided that, if the General Partner Entity (i) declares or pays a dividend on its outstanding Shares in Shares or makes a distribution to all
holders of its outstanding Shares in Shares, (ii) subdivides its outstanding Shares or (iii) combines its outstanding Shares into a smaller number of Shares, the Conversion Factor shall
be adjusted by 

4

 

multiplying
the Conversion Factor by a fraction, the numerator of which shall be the number of Shares issued and outstanding on the record date for such dividend, distribution, subdivision or
combination (assuming for such purposes that such dividend, distribution, subdivision or combination has occurred as of such time) and the denominator of which shall be the actual number of Shares
(determined without the above assumption) issued and outstanding on the record date for such dividend, distribution, subdivision or combination; and provided further that if an entity shall cease to
be the General Partner Entity (the "Predecessor Entity") and another entity shall become the General Partner Entity (the "Successor Entity"), the Conversion Factor shall be adjusted by multiplying the
Conversion Factor by a fraction, the numerator of which is the Value of one Share of the Predecessor Entity, determined as of the date when the Successor Entity becomes the General Partner Entity, and
the denominator of which is the Value of one Share of the Successor Entity, determined as of that same date. (For purposes of the second proviso in the preceding sentence, if any shareholders of the
Predecessor Entity will receive consideration in connection with the transaction in which the Successor Entity becomes the General Partner Entity, the numerator in the fraction described above for
determining the adjustment to the Conversion Factor (that is, the Value of one Share of the
Predecessor Entity) shall be the sum of the greatest amount of cash and the fair market value (as determined in good faith by the General Partner) of any securities and other consideration that the
holder of one Share in the Predecessor Entity could have received in such transaction (determined without regard to any provisions governing fractional shares).) Any adjustment to the Conversion
Factor shall become effective immediately after the effective date of the event retroactive to the record date, if any, for the event giving rise thereto, it being intended that (x) adjustments
to the Conversion Factor are to be made to avoid unintended dilution or anti-dilution as a result of transactions in which Shares are issued, redeemed or exchanged without a corresponding
issuance, redemption or exchange of Partnership Units and (y) if a Specified Redemption Date shall fall between the record date and the effective date of any event of the type described above,
that the Conversion Factor applicable to such redemption shall be adjusted to take into account such event. 

        "Convertible
Funding Debt" has the meaning set forth in Section 7.5.F. 

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

        "Declaration
of Trust" means the Declaration of Trust relating to the General Partner filed in the State of Maryland, as amended or restated from time to time. 

        "Depreciation"
means, for each fiscal year, an amount equal to the federal income tax depreciation, amortization, or other cost recovery deduction allowable with respect to an asset 

5

 

for
such year, except that if the Carrying Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, Depreciation shall be an
amount which bears the same ratio to such beginning Carrying Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such year bears to such beginning adjusted
tax basis; provided, however, that if the federal income tax depreciation, amortization, or other cost recovery deduction for such year is zero, Depreciation shall be determined with reference to such
beginning Carrying Value using any reasonable method selected by the General Partner. 

        "Distribution
Period" has the meaning set forth in Section 5.1.C. 

        "DRO
Amount" means the amount specified in the DRO Registry with respect to any DRO Partner, as such DRO Registry may be amended from time to time. 

        "DRO
Partner" means a Partner who has agreed in writing to be a DRO Partner and has agreed and is obligated to make certain contributions, not in excess of such DRO Partner's DRO Amount,
to the Partnership with respect to any deficit balance in such Partner's Capital Account upon the occurrence of certain events. A DRO Partner who is obligated to make any such contribution only upon
liquidation of the Partnership shall be designated in the DRO Registry as a Part I DRO Partner and a DRO Partner who is obligated to make any such contribution to the Partnership either upon
liquidation of the Partnership or upon liquidation of such DRO Partner's Partnership Interest shall be designated in the DRO Registry as a Part II DRO Partner. 

        "DRO
Registry" means the DRO Registry maintained by the General Partner in the books and records of the Partnership containing substantially the same information as would be necessary to
complete the Form of DRO Registry attached hereto as Exhibit E. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        "Fiscal
Year" means the fiscal year of the Partnership, which shall be the calendar year as provided in Section 9.2. 

        "Funding
Debt" means the incurrence of any Debt for the purpose of providing funds to the Partnership by or on behalf of the General Partner Entity, or any wholly owned subsidiary of
either the General Partner or the General Partner Entity. 

        "General
Partner" means Kite Realty Group Trust, a Maryland real estate investment trust, or its successor or permitted assignee, as general partner of the Partnership. 

        "General
Partner Entity" means the General Partner; provided, however, that if (i) the common shares of beneficial interest (or other comparable equity interests) of the General
Partner are at any time not Publicly Traded and (ii) the common shares of beneficial interest (or other comparable equity interests) of an entity that owns, directly or indirectly, fifty
percent (50%) or more of the common shares of beneficial interest (or other comparable equity interests) of the General Partner are Publicly Traded, the term "General Partner Entity" shall refer to
such entity whose common shares of beneficial interest (or other comparable equity securities) are Publicly Traded. If both requirements set forth in clauses
(i) and (ii) above are not satisfied, then the term "General Partner Entity" shall mean the General Partner. 

6

 

        "General
Partnership Interest" means a Partnership Interest held by the General Partner that is a general partnership interest. A General Partnership Interest may be expressed as a
number of Partnership Units. 

        "General
Partner Payment" has the meaning set forth in Section 15.14 hereof. 

        "IRS"
means the Internal Revenue Service, which administers the internal revenue laws of the United States. 

        "Immediate
Family" means, with respect to any natural Person, such natural Person's spouse, parents, descendants, nephews, nieces, brothers, and sisters. 

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

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

7

 

        "Limited
Partner" means any Person named as a Limited Partner in the Partner Registry or any Substituted Limited Partner or Additional Limited Partner, in such Person's capacity as a
Limited Partner in the Partnership. 

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

        "Liquidating
Event" has the meaning set forth in Section 13.1. 

        "Liquidator"
has the meaning set forth in Section 13.2.A. 

        "Net
Income" means, for any taxable period, the excess, if any, of the Partnership's items of income and gain for such taxable period over the Partnership's items of loss and deduction
for such taxable period. The items included in the calculation of Net Income shall be determined in accordance with Exhibit B. If an item of income, gain, loss or deduction that has been
included in the initial computation of Net Income is subjected to the special allocation rules in Exhibit C, Net Income or the resulting Net Loss, whichever the case may be, shall be recomputed
without regard to such item. 

        "Net
Loss" means, for any taxable period, the excess, if any, of the Partnership's items of loss and deduction for such taxable period over the Partnership's items of income and gain for
such taxable period. The items included in the calculation of Net Loss shall be determined in accordance with
Exhibit B. If an item of income, gain, loss or deduction that has been included in the initial computation of Net Loss is subjected to the special allocation rules in Exhibit C, Net Loss
or the resulting Net Income, whichever the case may be, shall be recomputed without regard to such item. 

        "New
Securities" means (i) any rights, options, warrants or convertible or exchangeable securities having the right to subscribe for or purchase Shares, excluding grants under any
Share Option Plan, or (ii) any Debt issued by the General Partner Entity that provides any of the rights described in clause (i). 

        "Nonrecourse
Built-in Gain" means, with respect to any Contributed Properties or Adjusted Properties that are subject to a mortgage or negative pledge securing a Nonrecourse
Liability, the amount of any taxable gain that would be allocated to the Partners pursuant to Section 2.B of Exhibit C if such properties were disposed of in a taxable transaction in
full satisfaction of such liabilities and for no other consideration. 

        "Nonrecourse
Deductions" has the meaning set forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Fiscal Year shall be determined
in accordance with the rules of Regulations Section 1.704-2(c). 

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

8

 

        "Notice
of Redemption" means a Notice of Redemption substantially in the form of Exhibit D. 

        "Organizational
Limited Partner" means Alvin Kite. 

        "Partner"
means the General Partner or a Limited Partner, and "Partners" means the General Partner and the Limited Partners. 

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

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

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

        "Partner
Registry" means the Partner Registry maintained by the General Partner in the books and records of the Partnership, which contains substantially the same information as would be
necessary to complete the form of the Partner Registry attached hereto as Exhibit A. 

        "Partnership"
means the limited partnership formed under the Act upon the terms and conditions set forth in the Original Agreement and continued pursuant to this Agreement, or any
successor to such limited partnership. 

        "Partnership
Interest" means a Limited Partnership Interest or a General Partnership Interest and includes any and all benefits to which the holder of such a Partnership Interest may be
entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Partnership Interest may be expressed as a number of
Partnership Units. 

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

        "Partnership
Record Date" means the record date established by the General Partner either (i) for the distribution of Available Cash pursuant to Section 5.1 hereof, which
record date shall be the same as the record date established by the General Partner Entity for a distribution to its shareholders of some or all of its portion of such distribution, or (ii) if
applicable, for determining the Partners entitled to vote on or consent to any proposed action for which the consent or approval of the Partners is sought pursuant to Section 14.2 hereof. 

9

 

        "Partnership
Unit" means a fractional, undivided share of the Partnership Interests of all Partners issued pursuant to Sections 4.1 and 4.2, and includes Class A Units,
Class B Units, and any other classes or series of Partnership Units established after the date hereof. The number of Partnership Units outstanding and the Percentage Interests in the
Partnership represented by such Partnership Units are set forth in the Partner Registry. 

        "Percentage
Interest" means, as to a Partner holding a class of Partnership Interests, its interest in such class, determined by dividing the Partnership Units of such class owned by
such Partner by the total number of Partnership Units of such class then outstanding. For purposes of determining the Percentage Interest of the Class A Units at any time when there are
Class B Units outstanding, all Class B Units shall be treated as Class A Units. 

        "Person"
means a natural person, partnership (whether general or limited), trust, estate, association, corporation, limited liability company, unincorporated organization, custodian,
nominee or any other individual or entity in its own or any representative capacity. 

        "Predecessor
Entity" has the meaning set forth in the definition of "Conversion Factor" herein. 

        "Publicly
Traded" means listed or admitted to trading on the New York Stock Exchange, the American Stock Exchange or another national securities exchange or designated for quotation on
the NASDAQ National Market, or any successor to any of the foregoing. 

        "Qualified
Assets" means any of the following assets: (i) Interests, rights, options, warrants or convertible or exchangeable securities of the Partnership; (ii) Debt
issued by the Partnership or any Subsidiary thereof in connection with the incurrence of Funding Debt; (iii) equity interests in Qualified REIT Subsidiaries and limited liability companies
whose assets consist solely of Qualified Assets; (iv) up to a one percent (1%) equity interest in any partnership or limited liability company at least ninety-nine percent (99%) of
the equity of which is owned, directly or indirectly, by the Partnership; (v) cash held for payment of administrative expenses or pending distribution to security holders of the General Partner
Entity or any wholly owned Subsidiary thereof or pending contribution to the Partnership; and (vi) other tangible and intangible assets that, taken as a whole, are de
minimis in relation to the net assets of the Partnership and its Subsidiaries. 

        "Qualified
REIT Subsidiary" means any Subsidiary of the General Partner that is a "qualified REIT subsidiary" within the meaning of Section 856(i) of the Code. 

        "Recapture
Income" means any gain recognized by the Partnership (computed without regard to any adjustment required by Section 734 or Section 743 of the Code) upon the
disposition of any property or asset of the Partnership, which gain is characterized either as ordinary income or as "unrecaptured
Section 1250 gain" (as defined in Section 1(h)(6) of the Code) because it represents the recapture of depreciation deductions previously taken with respect to such property or asset. 

        "Recourse
Liabilities" means the amount of liabilities owed by the Partnership (other than Nonrecourse Liabilities and liabilities to which Partner Nonrecourse Deductions are
attributable in accordance with Section 1.704-(2)(i) of the Regulations). 

10

 

        "Redeeming
Partner" has the meaning set forth in Section 8.6.A. 

        "Redemption
Amount" means either the Cash Amount or the Shares Amount, as determined by the General Partner, in its sole and absolute discretion; provided that if the Shares are not
Publicly Traded at the time a Redeeming Partner exercises its Redemption Right, the Redemption Amount shall be paid only in the form of the Cash Amount unless the Redeeming Partner, in its sole and
absolute discretion, consents to payment of the Redemption Amount in the form of the Shares Amount. A Redeeming Partner shall have no right, without the General Partner's consent, in its sole and
absolute discretion, to receive the Redemption Amount in the form of the Shares Amount. 

        "Redemption
Right" has the meaning set forth in Section 8.6.A. 

        "Regulations"
means the Treasury Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding
regulations). 

        "REIT"
means an entity that qualifies as a real estate investment trust under the Code. 

        "REIT
Requirements" has the meaning set forth in Section 5.1.A. 

        "Residual
Gain" or "Residual Loss" means any item of gain or loss, as the case may be, of the Partnership recognized for federal income tax purposes resulting from a sale, exchange or
other disposition of Contributed Property or Adjusted Property, to the extent such item of gain or loss is not allocated pursuant to Section 2.B.1(a) or 2.B.2(a) of Exhibit C to
eliminate Book-Tax Disparities. 

        "Safe
Harbor" has the meaning set forth in Section 11.6.F. 

        "Securities
Act" means the Securities Act of 1933, as amended. 

        "Section 704(c)
Value" of any Contributed Property means the fair market value of such property at the time of contribution as determined by the General Partner using such
reasonable method of valuation as they may adopt; provided, however, subject to Exhibit B, the General Partner shall, in its sole and absolute discretion, use such method as it deems reasonable
and appropriate to allocate the aggregate of the Section 704(c) Value of Contributed Properties in a single or integrated transaction among each separate property on a basis proportional to its
fair market values. 

        "Share"
means a share of beneficial interest (or other comparable equity interest) of the General Partner Entity. Shares may be issued in one or more classes or series in accordance with
the terms of the Declaration of Trust (or, if the General Partner is not the General Partner Entity, the organizational documents of the General Partner Entity). If there is more than one class or
series of Shares, the term "Shares" shall, as the context requires, be deemed to refer to the class or series of Shares that corresponds to the class or series of Partnership Interests for which the
reference to Shares is made. When used with reference to Class A Units, the term "Shares" refers to common shares of beneficial interest (or other comparable equity interest) of the General
Partner Entity. 

11

 

        "Share
Option Plan" means any equity incentive plan of the General Partner, the General Partner Entity, the Partnership and/or any Affiliate of the Partnership. 

        "Shares
Amount" means a number of Shares equal to the product of the number of Partnership Units offered for redemption by a Redeeming Partner times the Conversion Factor; provided that,
if the General Partner Entity issues to holders of Shares securities, rights, options, warrants or convertible or exchangeable securities entitling such holders to subscribe for or purchase Shares or
any other securities or property (collectively, the "rights"), then the Shares Amount shall also include such rights that a holder of that number of Shares would be entitled to receive unless the
Partnership issues corresponding rights to holders of Partnership Units. 

        "Specified
Redemption Date" means the tenth Business Day after receipt by the General Partner of a Notice of Redemption or such shorter period as the General Partner, in its sole and
absolute discretion may determine; provided that, if the Shares are not Publicly Traded, the Specified Redemption Date means the thirtieth Business Day after receipt by the General Partner of a Notice
of Redemption. 

        "Subsidiary"
means, with respect to any Person, any corporation, limited liability company, trust, partnership or joint venture, or other entity of which a majority of (i) the
voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person. 

        "Substituted
Limited Partner" means a Person who is admitted as a Limited Partner to the Partnership pursuant to Section 11.4 and who is shown as a Limited Partner in the Partner
Registry. 

        "Successor
Entity" has the meaning set forth in the definition of "Conversion Factor" herein. 

        "Termination
Transaction" has the meaning set forth in Section 11.2.B. 

        "Unrealized
Gain" attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the fair market value of such property (as
determined under Exhibit B) as of such date, over (ii) the Carrying Value of such property (prior to any adjustment to be made pursuant to Exhibit B) as of such date. 

        "Unrealized
Loss" attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the Carrying Value of such property (prior to
any adjustment to be made pursuant to Exhibit B) as of such date, over (ii) the fair market value of such property (as determined under Exhibit B) as of such date. 

        "Valuation
Date" means the date of receipt by the General Partner of a Notice of Redemption or, if such date is not a Business Day, the first Business Day thereafter. 

        "Value"
means, with respect to one Share of a class of outstanding Shares of the General Partner Entity that are Publicly Traded, the average of the daily market price for the ten
consecutive trading days immediately preceding the date with respect to which value must be determined. The market price for each such trading day shall be the closing price, regular way, 

12

 

on
such day, or if no such sale takes place on such day, the average of the closing bid and asked prices on such day. If the outstanding Shares of the General Partner Entity are Publicly Traded and
the Shares Amount includes, in addition to the Shares, rights or interests that a holder of Shares has received or would be entitled to receive, then the Value of such rights shall be determined by
the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate. If the Shares of the General Partner Entity are
not Publicly Traded, the Value of the Shares Amount per Partnership Unit offered for redemption (which will be the Cash Amount per Partnership Unit offered for redemption payable pursuant to
Section 8.6.A) means the amount that a holder of one Partnership Unit would receive if each of the assets of the Partnership were to be sold for its fair market value on the Specified
Redemption Date, the Partnership were to pay all of its outstanding liabilities, and the remaining proceeds were to be distributed to the Partners in accordance with the terms of this Agreement. Such
Value shall be determined by the General Partner, acting in good faith and based upon a commercially reasonable estimate of the amount that would be realized by the Partnership if each asset of the
Partnership (and each asset of each partnership, limited liability company, trust, joint venture or other entity in which the Partnership owns a direct or indirect interest) were sold to an unrelated
purchaser in an arms' length transaction where neither the purchaser nor the seller were under economic compulsion to enter into the transaction (without regard to any discount in value as a result of
the Partnership's minority interest in any property or any illiquidity of the Partnership's interest in any property). 

 
 

ARTICLE II
  ORGANIZATIONAL MATTERS    
    

Section 2.1 Organization  

        A.    Organization, Status and Rights.    The Partnership is a limited partnership organized pursuant to the
provisions of the Act and upon the terms and conditions set forth in the Original Agreement, as amended by this Agreement. The Partners hereby confirm and agree to their status as Members of the
Partnership and to continue the business of the Partnership on the terms set forth in this Agreement. Except as expressly provided herein, the rights and obligations of the Partners and the
administration and termination of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes. 

        B.    Qualification of Partnership.    The Partners (i) agree that if the laws of any jurisdiction in which the
Partnership transacts business so require, the appropriate officers or other authorized representatives of the Partnership shall file, or shall cause to be filed, with the appropriate office in that
jurisdiction, any documents necessary for the Partnership to qualify to transact business under such laws; and (ii) agree
and obligate themselves to execute, acknowledge and cause to be filed for record, in the place or places and manner prescribed by law, any amendments to the Certificate of Limited Partnership as may
be required, either by the Act, by the laws of any jurisdiction in which the Partnership transacts business, or by this Agreement, to reflect changes in the information contained therein or otherwise
to comply with the requirements of law for the continuation, preservation and operation of the Partnership as a limited partnership under the Act. 

13

  

        C.    Representations.    Each Partner represents and warrants that such Partner is duly authorized to execute,
deliver and perform its obligations under this Agreement and that the Person, if any, executing this Agreement on behalf of such Partner is duly authorized to do so and that this Agreement is binding
on and enforceable against such Partner in accordance with its terms. 

Section 2.2    Name  

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

Section 2.3    Registered Office And Agent; Principal Office  

        The address of the registered office of the Partnership in the State of Delaware shall be located at Corporation Trust Center, 1209 Orange Street, Wilmington,
County of New Castle, Delaware 19801, and the registered agent for service of process on the Partnership in the State of Delaware at such registered office shall be Corporation Trust Company. The
principal office of the Partnership shall be 30 South Meridian Street, Suite 1100, Indianapolis, Indiana 46204, or such other place as the General Partner may from time to time designate by notice to
the Limited Partners. The Partnership may maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable. 

Section 2.4    Term  

        The term of the Partnership commenced on March 29, 2004, and shall continue until dissolved pursuant to the provisions of Article XIII or as
otherwise provided by law. 

 
 

ARTICLE III
  PURPOSE    
    

Section 3.1 Purpose And Business  

        The purpose and nature of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited
partnership organized pursuant to the Act; (ii) to enter into any corporation, partnership, joint venture, trust, limited liability company or other similar arrangement to engage in any of the
foregoing or the ownership of interests in any entity engaged, directly or indirectly, in any of the foregoing; and (iii) to do anything necessary or incidental to the foregoing; provided,
however, that any business shall be limited to and conducted in such a manner as to permit the General Partner and, if 

14

 

different,
the General Partner Entity at all times to be classified as a REIT, unless the General Partner or General Partner Entity, as applicable, in its sole and absolute discretion has chosen to
cease to qualify as a REIT or has chosen not to attempt to qualify as a REIT for any reason or reasons whether or not related to the business conducted by the Partnership. In connection with the
foregoing, and without limiting the General Partner or the General Partner Entity's right, in its sole and absolute self discretion, to cease qualifying as a REIT, the Partners acknowledge that the
status of the General Partner Entity as a REIT inures to the benefit of all the Partners and not solely to the General Partner, the General Partner Entity or their Affiliates. 

Section 3.2    Powers  

        The Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and
accomplishment of the purposes and business described herein and for the protection and benefit of the Partnership, including, without limitation, full power and authority, directly or through its
ownership interest in other entities, to enter into, perform and carry out contracts of any kind, borrow money and issue evidences of indebtedness, whether or not secured by mortgage, deed of trust,
pledge or other lien, acquire, own, manage, improve
and develop real property, and lease, sell, transfer and dispose of real property; provided, however, that the Partnership shall not take, or shall refrain from taking, any action which, in the
judgment of the General Partner, in its sole and absolute discretion, (i) could adversely affect the ability of the General Partner Entity to continue to qualify as a REIT, (ii) could
subject the General Partner Entity to any taxes under Section 857 or Section 4981 of the Code or (iii) could violate any law or regulation of any governmental body or agency
having jurisdiction over either the General Partner or the General Partner Entity or its securities, unless such action (or inaction) shall have been specifically consented to by the General Partner
in writing. 

 
 

ARTICLE IV
  CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS    
    

Section 4.1 Capital Contributions Of The Partners  

        Prior to the execution of this Agreement, the Partners have made the Capital Contributions as set forth in the Partner Registry. On the dater hereof, the Partners
own Partnership Units in the amounts set forth in the Partner Registry and have Percentage Interests in the Partnership as set forth in the Partner Registry. The number of Partnership Units and
Percentage Interest shall be adjusted in the Partner Registry from time to time by the General Partner to the extent necessary to reflect accurately exchanges, redemptions, Capital Contributions, the
issuance of additional Partnership Units or similar events having an effect on a Partner's Percentage Interest occurring after the date hereof in accordance with the terms of this Agreement. To the
extent the Partnership acquires any property by the merger of any other Person into the Partnership or any of its Subsidiaries, Persons who receive Partnership Interests in exchange for their
interests in the Person merging into the Partnership or any Subsidiary shall become Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement and
as set forth in the Partner Registry. One thousand (1,000) 

15

 

Partnership
Units shall be deemed to be the General Partner's Partnership Units and shall be the General Partnership Interest of the General Partner. All other Partnership Units held by the General
Partner shall be deemed to be Limited Partnership Interests and shall be held by the General Partner in its capacity as a Limited Partner in the Partnership. Except as provided in Sections 7.5, 10.5,
and 13.3 hereof, the Partners shall have no obligation to make any additional Capital Contributions or provide any additional funding to the Partnership (whether in the form of loans, repayments of
loans or otherwise). Except as otherwise set forth in Section 13.3 hereof, no Partner shall have any obligation to
restore any deficit that may exist in its Capital Account, either upon a liquidation of the Partnership or otherwise. 

Section 4.2    Issuances Of Partnership Interests  

        A.    General.    The General Partner is hereby authorized to cause the Partnership from time to time to issue to
Partners (including the General Partner and its Affiliates) or other Persons (including, without limitation, in connection with the contribution of property to the Partnership or any of its
Subsidiaries) Partnership Units or other Partnership Interests in one or more classes, or in one or more series of any of such classes, with such designations, preferences and relative, participating,
optional or other special rights, powers and duties, including rights, powers and duties senior to one or more other classes of Partnership Interests, all as shall be determined, subject to applicable
Delaware law, by the General Partner in its sole and absolute discretion, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to
each such class or series of Partnership Interests, (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions, (iii) the rights of each
such class or series of Partnership Interests upon dissolution and liquidation of the Partnership, (iv) the rights, if any, of each such class to vote on matters that require the vote or
Consent of the Limited Partners, and (v) the consideration, if any, to be received by the Partnership; provided that no such Partnership Units or other Partnership Interests shall be issued to
the General Partner unless either (a) the Partnership Interests are issued in connection with the grant, award or issuance of Shares or other equity interests in the General Partner having
designations, preferences and other rights such that the economic interests attributable to such Shares or other equity interests are substantially similar to the designations, preferences and other
rights (except voting rights) of the Partnership Interests issued to the General Partner in accordance with this Section 4.2.A or (b) the additional Partnership Interests are issued to
all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such class. If the Partnership issues Partnership Interests pursuant to this
Section 4.2.A, the General Partner shall make such revisions to this Agreement (including but not limited to the revisions described in Section 5.4, Section 6.2 and
Section 8.6) as it deems necessary to reflect the issuance of such Partnership Interests. The designation of any newly issued class or series of Partnership Interests may provide a formula for
treating such Partnership Interests solely for purposes of voting on or consenting to any matter that requires the vote or Consent of the Limited Partners as set forth in one or more of Sections
7.5.A, 7.11.A, 7.11.B, 11.2.B, 13.1(i), 13.1(ii), 13.1(vi), 14.1.A, 14.1.C, 14.2.A, and 14.2.B of this Agreement as the equivalent of a specified number (including any fraction thereof) of
Class A Units. 

        B.    Classes of Partnership Units.    From and after the date of the Agreement, the Partnership shall have two
classes of Partnership Units entitled "Class A Units" and "Class B 

16

 

Units"
and such additional classes of Partnership Units as may be created by the General Partner pursuant to Section 4.2.A. Class A Units, Class B Units, or a class of Partnership
Interests created pursuant to Section 4.2.A, at the election of the General Partner, in its sole and absolute discretion, may be issued to newly admitted Partners in exchange for the
contribution by such Partners of cash, real estate partnership interests, stock, notes or other assets or consideration; provided that any Partnership Unit that is not specifically designated by the
General Partner as being of a particular class shall be deemed to be a Class A Unit. Each Class B Unit shall be converted automatically into a Class A Unit on the day immediately
following the Partnership Record Date for the Distribution Period (as defined in Section 5.1.C) in which such Class B Unit was issued, without the requirement for any action by the
General Partner, the Partnership or the Partner holding the Class B Unit. 

Section 4.3    No Preemptive Rights  

        Except to the extent expressly granted by the Partnership pursuant to another agreement, no Person shall have any preemptive, preferential or other similar right
with respect to (i) additional Capital Contributions or loans to the Partnership or (ii) issuance or sale of any Partnership Units or other Partnership Interests. 

Section 4.4    Other Contribution Provisions  

        A.    General.    If any Partner is admitted to the Partnership and is given a Capital Account in exchange for
services rendered to the Partnership, such transaction shall be treated by the Partnership and the affected Partner as if the Partnership had compensated such Partner in cash, and the Partner had made
a Capital Contribution of such cash to the capital of the Partnership. 

        B.    Mergers.    To the extent the Partnership acquires any property (or an indirect interest therein) by the merger
of any other Person into the Partnership or with or into a Subsidiary of the Partnership in a triangular merger, Persons who receive Partnership Interests in exchange for their interest in the Person
merging into the Partnership or with or into a Subsidiary of the Partnership shall become Partners and shall be deemed to have made Capital Contributions as provided in the applicable merger agreement
(or if not so provided, as determined by the General Partner in its sole and absolute discretion) and as set forth in the Partner Registry. 

Section 4.5    No Interest On Capital  

        No Partner shall be entitled to interest on its Capital Contributions or its Capital Account. 

17

 
 
 

ARTICLE V
  DISTRIBUTIONS    
    

Section 5.1 Requirement And Characterization Of Distributions  

        A.    General.    The General Partner shall distribute at least quarterly an amount equal to one hundred percent
(100%) of the Available Cash of the Partnership with respect to such quarter or shorter period to the Partners in accordance with the terms established for the class or classes of Partnership
Interests held by such Partners who are Partners on the respective Partnership Record Date with respect to such quarter or shorter period as provided in Sections 5.1.B, 5.1.C and 5.1.D and in
accordance with the respective terms established for each class of Partnership Interest. Notwithstanding anything to the contrary contained herein, in no event may a Partner receive a distribution of
Available Cash with respect to a Partnership Unit for a quarter or shorter period if such Partner is entitled to receive a distribution with respect to a Share for which such Partnership Unit has been
redeemed or exchanged. Unless otherwise expressly provided for herein, or in the terms established for a new class or series of Partnership Interests created in accordance with Article IV
hereof, no Partnership Interest shall be entitled to a distribution in preference to any other Partnership Interest. The General Partner shall make such reasonable efforts, as determined by it in its
sole and absolute discretion and consistent with the qualification of the General Partner Entity as a REIT, to distribute Available Cash (a) to Limited Partners so as to preclude any such
distribution or portion thereof from being treated as part of a sale of property to the Partnership by a Limited Partner under Section 707 of the Code or the Regulations thereunder; provided,
that, the General Partner and the Partnership shall not have liability to a Limited Partner under any circumstances as a result of any distribution to a Limited Partner being so treated, and
(b) to the General Partner in an amount sufficient to enable the General Partner Entity to make distributions to its shareholders that will enable the General Partner Entity to
(1) satisfy the requirements for qualification as a REIT under the Code and the Regulations (the "REIT Requirements"), and (2) avoid any federal income or excise tax liability. 

        B.    Method.    (i) Each holder of Partnership Interests that is entitled to any preference in distribution
shall be entitled to a distribution in accordance with the rights of any such class of Partnership Interests (and, within such class, pro rata in proportion to the respective Percentage Interests on
such Partnership Record Date); and 

        (ii)   To
the extent there is Available Cash remaining after the payment of any preference in distribution in accordance with the foregoing clause (i), with respect to
Partnership Interests that are not entitled to any preference in distribution, pro rata to each such class in accordance with the terms of such class (and, within each such class, pro rata in
proportion to the respective Percentage Interests on such Partnership Record Date). 

        C.    Distributions When Class B Units Are Outstanding.    If for any quarter or shorter period with respect to
which a distribution is to be made (a "Distribution Period") Class B Units are outstanding on the Partnership Record Date for such Distribution Period, the General Partner shall allocate the
Available Cash with respect to such Distribution Period available for distribution with respect to the Class A Units and Class B Units collectively between the Partners who are holders
of Class A Units ("Class A") and the Partners who are holders of Class B Units ("Class B") as follows: 

18

 

	(1)
	Class A
shall receive that portion of the Available Cash (the "Class A Share") determined by multiplying the amount of Available Cash by the following fraction: 

	 	 	A x Y
 (A x Y) + (B x X)

	 	 

	(2)
	Class B
shall receive that portion of the Available Cash (the "Class B Share") determined by multiplying the amount of Available Cash by the following fraction: 

	 	 	B x X
 (A x Y) + (B x X)

	 	 

	(3)
	For
purposes of the foregoing formulas, (i) "A" equals the number of Class A Units outstanding on the Partnership Record Date for such Distribution Period;
(ii) "B" equals the number of Class B Units outstanding on the Partnership Record Date for such Distribution Period; (iii) "Y" equals the number of days in the Distribution
Period; and (iv) "X" equals the number of days in the Distribution Period for which the Class B Units were issued and outstanding. 

        The
Class A Share shall be distributed pro rata among Partners holding Class A Units on the Partnership Record Date for the Distribution Period in accordance with the
number of Class A Units held by each Partner on such Partnership Record Date; provided that in no event may a Partner receive a distribution of Available Cash with respect to a Class A
Unit if a Partner is entitled to receive a distribution with respect to a Share for which such Class A Unit has been redeemed or exchanged. If Class B Shares were issued on the same
date, the Class B Share shall be distributed pro rata among the Partners holding Class B Units on the Partnership Record Date for the Distribution Period in accordance with the number of
Class B Units held by each Partner on such Partnership Record Date. In no event shall any Class B Units be entitled to receive any distribution of Available Cash for any Distribution
Period ending prior to the date on which such Class B Units are issued. 

        D.    Distributions When Class B Units Have Been Issued on Different Dates.    If Class B Units which
have been issued on different dates are outstanding on the Partnership Record Date for any Distribution Period, then the Class B Units issued on each particular date shall be treated as a
separate series of Partnership Units for purposes of making the allocation of Available Cash for such Distribution Period among the holders of Partnership Units (and the formula for making such
allocation, and the definitions of variables used therein, shall be modified accordingly). Thus, for example, if two series of Class B Units are outstanding on the Partnership Record Date for
any Distribution Period, the allocation formula for each series, "Series B1" and "Series B2" would be as follows: 

	(1)
	Series
B1 shall receive that portion of the Available Cash determined by multiplying the amount of Available Cash by the following fraction: 

19

 

	 	 	B1 x X1
 (A x Y) + (B1 x X1) + (B2 x X2)

	 	 

	(2)
	Series
B2 shall receive that portion of the Available Cash determined by multiplying the amount of Available Cash by the following fraction: 

	 	 	B2 x X2
 (A x Y) + (B1 x X1) + (B2 x X2)

	 	 

	(3)
	For
purposes of the foregoing formulas the definitions set forth in Section 5.1.C.3 remain the same except that (i) "B1" equals the number of Partnership Units in Series
B1 outstanding on the Partnership Record Date for such Distribution Period; (ii) "B2" equals the number of Partnership Units in Series B2 outstanding on the Partnership Record Date for such
Distribution Period; (iii) "X1" equals the number of days in the Distribution Period for which the Partnership Units in Series B1 were issued and outstanding; and (iv) "X2" equals the
number of days in the Distribution Period for which the Partnership Units in Series B2 were issued and outstanding. 

        E.    Minimum Distributions if Shares Not Publicly Traded.    In addition (and without regard to the amount of
Available Cash), if the Shares of the General Partner Entity are not Publicly Traded, the General Partner shall make cash distributions with respect to the Class A Units at least annually for
each taxable year of the Partnership beginning prior to                        , 2019 in an aggregate amount with respect to each
such taxable year at least equal to 95% of the Partnership's taxable income
for such year allocable to the Class A Units, with such distributions to be made not later than 60 days after the end of such year. 

Section 5.2    Amounts Withheld  

        All amounts withheld pursuant to the Code or any provisions of any state or local tax law and Section 10.5 with respect to any allocation, payment or
distribution to the General Partner, the Limited Partners or Assignees shall be treated as amounts distributed to the General Partner, Limited Partners or Assignees, as the case may be, pursuant to
Section 5.1 for all purposes under this Agreement. 

Section 5.3    Distributions Upon Liquidation  

        Proceeds from a Liquidating Event shall be distributed to the Partners in accordance with Section 13.2. 

Section 5.4    Revisions To Reflect Issuance Of Partnership Interests  

        If the Partnership issues Partnership Interests to the General Partner or any Additional Limited Partner pursuant to Article IV hereof, the General Partner
shall make such revisions to this Article V and the Partner Registry in the books and records of the Partnership as it deems 

20

 

necessary
to reflect the issuance of such additional Partnership Interests without the consent or approval of any other Partner. 

 
 

ARTICLE VI
  ALLOCATIONS    
    

Section 6.1 Allocations For Capital Account Purposes  

        For purposes of maintaining the Capital Accounts and in determining the rights of the Partners among themselves, the Partnership's items of income, gain, loss and
deduction (computed in accordance with Exhibit B) shall be allocated among the Partners in each taxable year (or portion thereof) as provided herein below. 

        A.    Net Income.    After giving effect to the special allocations set forth in Section 1 of Exhibit C
of the Partnership Agreement, Net Income shall be allocated: 

	(1)
	first,
to the General Partner to the extent that Net Losses previously allocated the General Partner pursuant to Section 6.1.B(6) exceed Net Income previously allocated to the
General Partner pursuant to this clause (1);

	(2)
	second,
to each DRO Partner until the cumulative Net Income allocated such DRO Partner under this clause (2) equals the cumulative Net Losses allocated such DRO Partner under
Section 6.1.B(5) (and, among the DRO Partners, pro rata in proportion to their respective percentages of the cumulative Net Losses allocated to all DRO Partners pursuant to
Section 6.1.B(5) hereof);

	(3)
	third,
to the General Partner until the cumulative Net Income allocated under this clause (3) equals the cumulative Net Losses allocated the General Partner under
Section 6.1.B(4);

	(4)
	fourth,
to the holders of any Partnership Interests that are entitled to any preference upon liquidation until the cumulative Net Income allocated under this clause (4) equals
the cumulative Net Losses allocated to such Partners under Section 6.1.B(3);

	(5)
	fifth,
to the holders of any Partnership Interests that are entitled to any preference in distribution in accordance with the rights of any other class of Partnership Interests until
each such Partnership Interest has been allocated, on a cumulative basis pursuant to this clause (5), Net Income equal to the amount of distributions payable that are attributable to the
preference of such class of Partnership Interests whether or not paid (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last day of the period for which
such allocation is being made); and

	(6)
	finally,
with respect to Partnership Interests that are not entitled to any preference in distribution or with respect to which distributions are not limited to any 

21

 

preference
in distribution, pro rata to each such class in accordance with the terms of such class (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last
day of the period for which such allocation is being made). 

        B.    Net Losses.    After giving effect to the special allocations set forth in Section 1 of Exhibit C,
Net Losses shall be allocated: 

	(1)
	first,
to the holders of Partnership Interests, in proportion to, and to the extent that, their share of the Net Income previously allocated pursuant to Section 6.1.A(6)
exceeds, on a cumulative basis, the sum of (a) distributions with respect to such Partnership Interests pursuant to clause (ii) of Section 5.1.B and (b) Net Losses
allocated under this clause (1);

	(2)
	second,
with respect to classes of Partnership Interests that are not entitled to any preference in distribution upon distribution, pro rata to each such class in accordance with the
terms of such class (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last day of the period for which such allocation is being made); provided that Net
Losses shall not be allocated to any Partner pursuant to this Section 6.1.B(2) to the extent that such allocation would cause such Partner to have an Adjusted Capital Account Deficit (or
increase any existing Adjusted Capital Account Deficit) (determined in each case (i) by not including in the Partners' Adjusted Capital Accounts any amount that a Partner is obligated to
contribute to the Partnership with respect to any deficit in its Capital Account pursuant to Section 13.3 and (ii) in the case of a Partner who also holds classes of Partnership
Interests that are entitled to any preferences in distribution upon liquidation, by subtracting from such Partners' Adjusted Capital Account the amount of such preferred distribution to be made upon
liquidation) at the end of such taxable year (or portion thereof);

	(3)
	third,
with respect to classes of Partnership Interests that are entitled to any preference in distribution upon liquidation, in reverse order of the priorities of each such class
(and within each such class, pro rata in proportion to their respective Percentage Interests as of the last day of the period for which such allocation is being made); provided that Net Losses shall
not be allocated to any Partner pursuant to this Section 6.1.B(3) to the extent that such allocation would cause such Partner to have an Adjusted Capital Account Deficit (or increase any
existing Adjusted Capital Account Deficit) (determined in each case by not including in the Partners' Adjusted Capital Accounts any amount that a Partner is obligated to contribute to the Partnership
with respect to any deficit in its Capital Account pursuant to Section 13.3) at the end of such taxable year (or portion thereof);

	(4)
	fourth,
to the General Partner in an amount equal to the excess of (a) the amount of the Partnership Recourse Liabilities over (b) the Aggregate DRO Amount; 

22

 

	(5)
	fifth,
to and among the DRO Partners, in proportion to their respective DRO Amounts, until such time as the DRO Partners as a group have been allocated cumulative Net Losses pursuant
to this clause (5) equal to the Aggregate DRO Amount; and

	(6)
	thereafter,
to the General Partner. 

        C.    Allocation of Nonrecourse Debt.    For purposes of Regulation Section 1.752-3(a), the
Partners agree that Nonrecourse Liabilities of the Partnership in excess of the sum of (i) the amount of Partnership Minimum Gain and (ii) the total amount of Nonrecourse
Built-in Gain shall be allocated by the General Partner by taking into account facts and circumstances relating to each Partner's respective interest in the profits of the Partnership. For
this purpose, the General Partner shall have the sole and absolute discretion in any fiscal year to allocate such excess Nonrecourse Liabilities among the Partners in any manner permitted under Code
Section 752 and the Regulations thereunder. 

        D.    Recapture Income.    Any gain allocated to the Partners upon the sale or other taxable disposition of any
Partnership asset shall, to the extent possible after taking into account other required allocations of gain pursuant to Exhibit C, be characterized as Recapture Income in the same proportions
and to the same extent as such Partners have been allocated any deductions directly or indirectly giving rise to the treatment of such gains as Recapture Income. 

Section 6.2    Revisions To Allocations To Reflect Issuance Of Partnership Interests  

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

 
 

ARTICLE VII
  MANAGEMENT AND OPERATIONS OF BUSINESS    
    

Section 7.1 Management  

        A.    Powers of General Partner.    Except as otherwise expressly provided in this Agreement, all management powers
over the business and affairs of the Partnership are and shall be exclusively vested in the General Partner, and no Limited Partner shall have any right to participate in or exercise control or
management power over the business and affairs of the Partnership. The General Partner may not be removed by the Limited Partners with or without cause (unless the Shares of the General Partner Entity
corresponding to Partnership Units are not Publicly Traded, in which case the General Partner may be removed with or without cause by the Consent of the Partners holding Partnership Interests
representing more than fifty percent (50%) of the Percentage Interest of the Class A Units). In addition to the powers now or hereafter granted a general partner of a limited partnership under
applicable law or which are granted to 

23

 

the
General Partner under any other provision of this Agreement, the General Partner, subject to Section 7.11, shall have full power and authority to do all things deemed necessary or desirable
by it to conduct the business of the Partnership, to exercise all powers set forth in Section 3.2 and to effectuate the purposes set forth in Section 3.1, including, without limitation: 

	(1)
	the
making of any expenditures, the lending or borrowing of money (including, without limitation, making prepayments on loans and borrowing money to permit the Partnership to make
distributions to its Partners in such amounts as are required under Section 5.1.A or will permit the General Partner Entity (so long as the General Partner Entity qualifies as a REIT) to avoid
the payment of any federal income tax (including, for this purpose, any excise tax pursuant to Section 4981 of the Code) and to make distributions to its shareholders sufficient to permit the
General Partner Entity to maintain its REIT status), the assumption or guarantee of, or other contracting for, indebtedness and other liabilities including, without limitation, the assumption or
guarantee of the debt of the General Partner, its Subsidiaries or the Partnership's Subsidiaries, the issuance of evidences of indebtedness (including the securing of same by mortgage, deed of trust
or other lien or encumbrance on the Partnership's assets) and the incurring of any obligations the General Partner deems necessary for the conduct of the activities of the Partnership;

	(2)
	the
making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the
Partnership;

	(3)
	the
acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any or all of the assets of the Partnership (including acquisition of any new assets, the
exercise or grant of any conversion, option, privilege or subscription right or other right available in connection with any assets at any time held by the Partnership) or the merger or other
combination of the Partnership or any Subsidiary with or into another entity on such terms as the General Partner deems proper;

	(4)
	the
use of the assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with the terms of this Agreement and on any terms it sees fit,
including, without limitation, the financing of the conduct of the operations of the General Partner, the Partnership or any of the Partnership's Subsidiaries, the lending of funds to other Persons
(including, without limitation, the General Partner, its Subsidiaries and the Partnership's Subsidiaries) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person
in which the Partnership has an equity investment and the making of capital contributions to its Subsidiaries;

	(5)
	the
management, operation, leasing, landscaping, repair, alteration, demolition or improvement of any real property or improvements owned by the Partnership or any Subsidiary of the
Partnership or any Person in which the Partnership has made a direct or indirect equity investment; 

24

 

	(6)
	the
negotiation, execution, and performance of any contracts, conveyances or other instruments that the General Partner considers useful or necessary to the conduct of the
Partnership's operations or the implementation of the General Partner's powers under this Agreement, including contracting with contractors, developers, consultants, accountants, legal counsel, other
professional advisors and other agents and the payment of their expenses and compensation out of the Partnership's assets;

	(7)
	the
mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership;

	(8)
	the
distribution of Partnership cash or other Partnership assets in accordance with this Agreement;

	(9)
	the
holding, managing, investing and reinvesting of cash and other assets of the Partnership;

	(10)
	the
collection and receipt of revenues and income of the Partnership;

	(11)
	the
selection, designation of powers, authority and duties and the dismissal of employees of the Partnership (including, without limitation, employees having titles such as
"president," "vice president," "secretary" and "treasurer") and agents, outside attorneys, accountants, consultants and contractors of the Partnership and the determination of their compensation and
other terms of employment or hiring;

	(12)
	the
maintenance of such insurance for the benefit of the Partnership and the Partners as it deems necessary or appropriate;

	(13)
	the
formation of, or acquisition of an interest (including non-voting interests in entities controlled by Affiliates of the Partnership or third parties) in, and the
contribution of property to, any further limited or general partnerships, joint ventures, limited liability companies or other relationships that it deems desirable (including, without limitation, the
acquisition of interests in, and the contributions of funds or property to, or making of loans to, its Subsidiaries and any other Person in which it has an equity investment from time to time, or the
incurrence of indebtedness on behalf of such Persons or the guarantee of the obligations of such Persons); provided that, as long as the General Partner has determined to continue to qualify as a
REIT, the Partnership may not engage in any such formation, acquisition or contribution that would cause the General Partner to fail to qualify as a REIT;

	(14)
	the
control of any matters affecting the rights and obligations of the Partnership, including the settlement, compromise, submission to arbitration or any other form of dispute
resolution or abandonment of any claim, cause of action, liability, debt or damages due or owing to or from the Partnership, the commencement or defense of suits, legal proceedings, administrative
proceedings, arbitrations or other forms of dispute resolution, the representation of the Partnership in all suits 

25

 

or
legal proceedings, administrative proceedings, arbitrations or other forms of dispute resolution, the incurring of legal expense and the indemnification of any Person against liabilities and
contingencies to the extent permitted by law; 

	(15)
	the
determination of the fair market value of any Partnership property distributed in kind, using such reasonable method of valuation as the General Partner may adopt;

	(16)
	the
exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right, including the right to
vote, appurtenant to any assets or investment held by the Partnership;

	(17)
	the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary of the Partnership or any other Person in
which the Partnership has a direct or indirect interest, individually or jointly with any such Subsidiary or other Person;

	(18)
	the
exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in which the Partnership does not have any interest pursuant to
contractual or other arrangements with such Person;

	(19)
	the
making, executing and delivering of any and all deeds, leases, notes, deeds to secure debt, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees,
warranties, indemnities, waivers, releases or other legal instruments or agreements in writing necessary or appropriate in the judgment of the General Partner for the accomplishment of any of the
powers of the General Partner enumerated in this Agreement;

	(20)
	the
distribution of cash to acquire Partnership Units held by a Limited Partner in connection with a Limited Partner's exercise of its Redemption Right under Section 8.6;

	(21)
	the
determination regarding whether a payment to a Partner who exercises its Redemption Right under Section 8.6 that is assumed by the General Partner will be paid in the form
of the Cash Amount or the Shares Amount, except as such determination may be limited by Section 8.6.

	(22)
	the
acquisition of Partnership Interests in exchange for cash, debt instruments and other property;

	(23)
	the
maintenance of the Partner Registry in the books and records of the Partnership to reflect the Capital Contributions and Percentage Interests of the Partners as the same are
adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of Partnership Units, the admission of any Additional Limited Partner or any Substituted
Limited Partner or otherwise; and 

26

 

	(24)
	the
registration of any class of securities of the Partnership under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended, and the listing of any
debt securities of the Partnership on any exchange. 

        B.    No Approval by Limited Partners.    Except as provided in Section 7.11, each of the Limited Partners
agrees that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership without any further act, approval or vote of
the Partners, notwithstanding any other provision of this Agreement, the Act or any applicable law, rule or regulation, to the full extent permitted under the Act or other applicable law. The
execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this Agreement shall be in the sole and absolute discretion of the General
Partner without consideration of any other obligation or duty, fiduciary or otherwise, of the Partnership or the Limited Partners and shall not constitute a breach by the General Partner of any duty
that the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity. 

        C.    Insurance.    At all times from and after the date hereof, the General Partner may cause the Partnership to
obtain and maintain (i) casualty, liability and other insurance on the properties of the Partnership and (ii) liability insurance for the Indemnitees hereunder and (iii) such
other insurance as the General Partner, in its sole and absolute discretion, determines to be necessary. 

        D.    Working Capital and Other Reserves.    At all times from and after the date hereof, the General Partner may
cause the Partnership to establish and maintain working capital reserves in such amounts as the General Partner, in its sole and absolute discretion, deems appropriate and reasonable from time to
time, including upon liquidation of the Partnership under Section 13. 

        E.    No Obligations to Consider Tax Consequences of Limited Partners.    In exercising their authority under this
Agreement, the General Partner (which for the purposes of this Section 7.1.E shall include, the board of trustees of the General Partner) may, but shall be under no obligation to, take into
account the tax consequences to any Partner (including the General Partner) of any action taken (or not taken) by the General Partner. The General Partner and the Partnership shall not have liability
to a Limited Partner for monetary or other damages or otherwise for losses sustained, liabilities incurred or benefits not derived by such Limited Partner in connection with any decisions, provided
that the General Partner has acted in good faith and pursuant to its authority under this Agreement and any decisions or actions taken or not taken in accordance with the terms of this Agreement shall
not constitute a
breach of any duty owed to the Partnership or the Limited Partners by law or equity, fiduciary or otherwise. 

Section 7.2    Certificate of Limited Partnership  

        The General Partner has previously filed the Certificate of Limited Partnership with the Secretary of State of Delaware. To the extent that such action is
determined by the General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and restatements of the Certificate of Limited Partnership and do all the
things to maintain the Partnership as a limited partnership (or a partnership in which the limited partners have limited 

27

 

liability)
under the laws of the State of Delaware and each other state, the District of Columbia or other jurisdiction in which the Partnership may elect to do business or own property. Subject to
the terms of Section 8.5.A(4), the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate of Limited Partnership or any amendment thereto to
any Limited Partner. The General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents as may be reasonable and necessary or appropriate for the formation,
continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and any other state, the District of
Columbia or other jurisdiction in which the Partnership may elect to do business or own property. 

Section 7.3    Title to Partnership Assets  

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

Section 7.4    Reimbursement of the General Partner  

        A.    No Compensation.    Except as provided in this Section 7.4 and elsewhere in this Agreement (including the
provisions of Articles V and VI regarding distributions, payments and allocations to which it may be entitled), the General Partner shall not receive payments from the Partnership or otherwise be
compensated for its services as the general partner of the Partnership. 

        B.    Responsibility for Partnership and General Partner and General Partner Entity Expenses.    The Partnership shall
be responsible for and shall pay all expenses relating to the Partnership's organization, the ownership of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or
such other basis as the General Partner may determine in its sole and absolute discretion, for all expenses it incurs relating to or resulting from the ownership and operation of, or for the benefit
of, the Partnership (including, without limitation, expenses related to the operations of the General Partner and the General Partner Entity and to the management and administration of any
Subsidiaries of the General Partner, the General Partner Entity or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees); provided that (i) the amount of
any such reimbursement shall be reduced by (x) any interest earned by the General Partner with respect to bank accounts or other instruments or accounts held by it on behalf of the Partnership
as permitted in Section 7.5.A (which interest is considered to belong to the Partnership and shall be paid over to the Partnership to the extent not applied to reimburse the General Partner for
expenses hereunder); and (y) any amount derived by 

28

 

the
General Partner from any investments permitted in Section 7.5.A; (ii) the Partnership shall not be responsible for any taxes that the General Partner or General Partner Entity would
not have been required to pay if that entity qualified as a REIT for federal income tax purposes or any taxes imposed on the General Partner or General Partner Entity by reason of that entity's
failure to distribute to its shareholders an amount equal to its taxable income; (iii) the Partnership shall not be responsible for expenses or liabilities incurred by the General Partner in
connection with any business or assets of the General Partner other than its ownership of Partnership Interests or operation of the business of the Partnership or ownership of interests in Qualified
Assets to the extent permitted in Section 7.5.A; and (iv) the Partnership shall not be responsible for any expenses or liabilities of the General Partner that are excluded from the scope
of the indemnification provisions of Section 7.7.A by reason of the provisions of clause (i), (ii) or (iii) thereof. The General Partner shall determine in good faith the
amount of expenses incurred by it or the General Partner Entity related to the ownership of Partnership Interests or operation of, or for the benefit of, the Partnership. If certain expenses are
incurred that are related both to the ownership of Partnership Interests or operation of, or for the benefit of, the Partnership and to the ownership of other assets (other than Qualified Assets as
permitted under
Section 7.7.A) or the operation of other businesses, such expenses will be allocated to the Partnership and such other entities (including the General Partner and General Partner Entity) owning
such other assets or businesses in such a manner as the General Partner in its sole and absolute discretion deems fair and reasonable. Such reimbursements shall be in addition to any reimbursement to
the General Partner and the General Partner Entity pursuant to Section 10.3.C and as a result of indemnification pursuant to Section 7.7. All payments and reimbursements hereunder shall
be characterized for federal income tax purposes as expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner or General Partner Entity. 

        C.    Partnership Interest Issuance Expenses.    The General Partner shall also be reimbursed for all expenses it
incurs relating to any issuance of Partnership Interests, Shares, Debt of the Partnership, Funding Debt of the General Partner or rights, options, warrants or convertible or exchangeable securities
pursuant to Article IV (including, without limitation, all costs, expenses, damages and other payments resulting from or arising in connection with litigation related to any of the foregoing),
all of which expenses are considered by the Partners to constitute expenses of, and for the benefit of, the Partnership. 

        D.    Purchases of Shares by the General Partner Entity.    If the General Partner Entity exercises its rights under
the Declaration of Trust to purchase Shares or otherwise elects to purchase from its shareholders Shares in connection with a share repurchase or similar program or for the purpose of delivering such
Shares to satisfy an obligation under any dividend reinvestment or equity purchase program adopted by the General Partner Entity, any employee equity purchase plan adopted by the General Partner
Entity or any similar obligation or arrangement undertaken by the General Partner Entity in the future, the purchase price paid by the General Partner Entity for those Shares and any other expenses
incurred by the General Partner Entity in connection with such purchase shall be considered expenses of the Partnership and shall be reimbursable to the General Partner Entity, subject to the
conditions that: (i) if those Shares subsequently are to be sold by the General Partner Entity, the General Partner Entity shall pay to the Partnership any proceeds received by the General
Partner Entity for those Shares (provided that a transfer of Shares for Partnership Units pursuant to Section 8.6 would not be considered a sale for such purposes); and (ii) if such
Shares are not retransferred by the General 

29

 

Partner
Entity within thirty (30) days after the purchase thereof, the General Partner Entity shall cause the Partnership to cancel a number of Partnership Units (rounded to the nearest whole
Partnership Unit) held by the General Partner Entity equal to the product attained by multiplying the number of those Shares by a fraction, the numerator of which is one and the denominator of which
is the Conversion Factor. 

        E.    Reimbursement not a Distribution.    Except as set forth in the succeeding sentence, if and to the extent any
reimbursement made pursuant to this Section 7.4 is determined for federal income tax purposes not to constitute a payment of expenses of the Partnership, the amount so determined shall
constitute a guaranteed payment with respect to capital within the meaning of Section 707(c) of the Code, shall be
treated consistently therewith by the Partnership and all Partners and shall not be treated as a distribution for purposes of computing the Partners' Capital Accounts. Amounts deemed paid by the
Partnership to the General Partner in connection with redemption of Partnership Units pursuant to clause (ii) of subparagraph (D) above shall be treated as a distribution for purposes of
computing the Partner's Capital Accounts. 

        F.    Funding for Certain Capital Transactions.    In the event that the General Partner Entity shall undertake to
acquire (whether by merger, consolidation, purchase, or otherwise) the assets or equity interests of another Person and such acquisition shall require the payment of cash by the General Partner Entity
(whether to such Person or to any other selling party or parties in such transaction or to one or more creditors, if any, of such Person or such selling party or parties), (i) the Partnership
shall advance to the General Partner Entity the cash required to consummate such acquisition if, and to the extent that, such cash is not to be obtained by the General Partner Entity through an
issuance of Shares described in Section 4.2 or pursuant to a transaction described in Section 7.5.B, (ii) the General Partner Entity shall immediately, upon consummation of such
acquisition, transfer to the Partnership (or cause to be transferred to the Partnership), in full and complete satisfaction of such advance and as required by Section 7.5, the assets or equity
interests of such Person acquired by the General Partner Entity in such acquisition, and (iii) pursuant to and in accordance with Section 4.2 and Section 7.5.B, the Partnership
shall issue to the General Partner Partnership Interests and/or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights
that are substantially the same as those of any additional Shares, other equity securities, New Securities and/or Convertible Funding Debt, as the case may be, issued by the General Partner Entity in
connection with such acquisition (whether issued directly to participants in the acquisition transaction or to third parties in order to obtain cash to complete the acquisition). In addition to, and
without limiting the foregoing, in the event that the General Partner Entity engages in a transaction in which (x) the General Partner Entity (or a wholly owned direct or indirect Subsidiary of
the General Partner Entity) merges with another entity (referred to as the "Parent Entity") that is organized in the "UPREIT format" (i.e., where the Parent Entity holds substantially all of its
assets and conducts substantially all of its operations through a partnership, limited liability company or other entity (referred to as an "Operating Entity")) and the General Partner Entity survives
such merger, (y) such Operating Entity merges with or is otherwise acquired by the Partnership in exchange in whole or in part for Partnership Interests, and (z) the General Partner
Entity is required or elects to pay part of the consideration in connection with such merger involving the Parent Entity in the form of cash and part of the consideration in the form of Shares, the
Partnership shall distribute to the General Partner with respect to its existing Partnership Interest an amount of cash sufficient to complete such 

30

 

transaction
and the General Partner shall cause the Partnership to cancel a number of Partnership Units (rounded to the nearest whole number) held by the General Partner equal to the product attained
by multiplying the number of additional Shares of the General Partner Entity that the General Partner Entity would have issued to the Parent Entity or the owners of the Parent Entity in such
transaction if the entire consideration therefor were to have been paid in Shares by a fraction, the numerator of which is one and the denominator of which is the Conversion Factor. 

Section 7.5    Outside Activities of the General Partner; Relationship of Shares to Partnership Units; Funding Debt  

        A.    General.    Without the Consent of the Outside Limited Partners, the General Partner shall not, directly or
indirectly, enter into or conduct any business other than in connection with the ownership, acquisition and disposition of Partnership Interests as General Partner or Limited Partner and the
management of the business of the Partnership and such activities as are incidental thereto. Without the Consent of the Outside Limited Partners, the assets of the General Partner shall be limited to
Partnership Interests and permitted debt obligations of the Partnership (as contemplated by Section 7.5.F), so that Shares and Partnership Units are completely fungible except as otherwise
specifically provided herein; provided that the General Partner shall be permitted to hold such bank accounts or similar instruments or accounts in its name as it deems necessary to carry out its
responsibilities and purposes as contemplated under this Agreement and its organizational documents (provided that accounts held on behalf of the Partnership to permit the General Partner to carry out
its responsibilities under this Agreement shall be considered to belong to the Partnership and the interest earned thereon shall, subject to Section 7.4.B, be applied for the benefit of the
Partnership); and, provided further that, the General Partner shall be permitted to acquire Qualified Assets. 

        B.    Repurchase of Shares and Other Securities.    If the General Partner Entity exercises its rights under the
Declaration of Trust to purchase Shares or otherwise elects to purchase from the holders thereof Shares, other equity securities of the General Partner Entity, New Securities or Convertible Funding
Debt, then the General Partner shall cause the Partnership to purchase from the General Partner (i) in the case of a purchase of Shares, that number of Partnership Units of the appropriate
class equal to the product obtained by multiplying the number of Shares purchased by the General Partner Entity times a fraction, the numerator of which is one and the denominator of which is the
Conversion Factor, or (ii) in the case of the purchase of any other securities on the same terms and for the same aggregate price that the General Partner Entity purchased such securities. 

        C.    Forfeiture of Shares.    If the Partnership or the General Partner acquires Shares as a result of the forfeiture
of such Shares under a restricted or similar share, share bonus or similar share plan, then the General Partner shall cause the Partnership to cancel, without payment of any consideration to the
General Partner, that number of Partnership Units of the appropriate class equal to the number of Shares so acquired, and, if the Partnership acquired such Shares, it shall transfer such Shares to the
General Partner for cancellation. 

        D.    Issuances of Shares and Other Securities.    The General Partner shall not grant, award, or issue any additional
Shares (other than Shares issued pursuant to Section 8.6 hereof or pursuant to a dividend or distribution (including any share split) of Shares to all of its 

31

 

shareholders
that results in an adjustment to the Conversion Factor pursuant to clause (i), (ii) or (iii) of the definition thereof), other equity securities of the General
Partner, New Securities or Convertible Funding Debt unless (i) the General Partner shall cause, pursuant to Section 4.2.A hereof, the Partnership to issue to the General Partner,
Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights, all such that the economic interests
are substantially the same as those of such additional Shares, other equity securities, New Securities or Convertible Funding Debt, as the case may be, and (ii) the General Partner transfers to
the Partnership, as an additional Capital Contribution, the proceeds from the grant, award, or issuance of such additional Shares, other equity securities, New Securities or Convertible Funding Debt,
as the case may be, or from the exercise of rights contained in such additional Shares, other equity securities, New Securities or Convertible Funding Debt, as the case may be. Without limiting the
foregoing, the General Partner is expressly authorized to issue additional Shares, other equity securities, New Securities or Convertible Funding Debt, as the case may be, for less than fair market
value, and the General Partner is expressly authorized, pursuant to Section 4.2.A hereof, to cause the Partnership to issue to the General Partner corresponding Partnership Interests, (for
example, and not by way of limitation, the issuance of Shares and corresponding Partnership Units pursuant to a share purchase plan providing for purchases of Shares, either by employees or
shareholders, at a discount from fair market value or pursuant to employee share options that have an exercise price that is less than the fair market value of the Shares, either at the time of
issuance or at the time of exercise) as long as (a) the General Partner concludes in good faith that such issuance is in the interests of the General Partner and the Partnership and
(b) the General Partner transfers all proceeds from any such issuance or exercise to the Partnership as an additional Capital Contribution. 

        E.    Share Option Plan.    If at any time or from time to time, the General Partner sells or otherwise issues Shares
pursuant to any Share Option Plan, the General Partner shall transfer the proceeds of the sale of such Shares, if any, to the Partnership as an additional Capital Contribution in exchange for an
amount of additional Partnership Units equal to the number of Shares so sold divided by the Conversion Factor. 

        F.    Funding Debt.    The General Partner or the General Partner Entity or any wholly owned Subsidiary of either of
them may incur a Funding Debt, including, without limitation, a Funding Debt that is convertible into Shares or otherwise constitutes a class of New Securities ("Convertible Funding Debt"), subject to
the condition that the General Partner, the General Partner Entity or such Subsidiary, as the case may be, lend to the Partnership the net proceeds of such Funding Debt; provided that Convertible
Funding Debt shall be issued in accordance with the provisions of Section 7.5.D above; and, provided further that the General Partner, the General Partner Entity or such Subsidiary shall not be
obligated to lend the net proceeds of any Funding Debt to the Partnership in a manner that would be inconsistent with the General Partner's or General Partner Entity's ability to remain qualified as a
REIT. If the General Partner, General Partner Entity or such Subsidiary enters into any Funding Debt, the loan to the Partnership shall be on comparable terms and conditions, including interest rate,
repayment schedule, costs and expenses and other financial terms, as are applicable with respect to or incurred in connection with such Funding Debt. 

32

  

        G.    Capital Contributions of the General Partner.    The Capital Contributions by the General Partner pursuant to
Sections 7.5.D and 7.5.E will be deemed to equal the cash contributed by the General Partner plus (a) in the case of cash contributions funded by an offering of any equity interests in or other
securities of the General Partner, the offering costs attributable to the cash contributed to the Partnership, and (b) in the case of Partnership Units issued pursuant to Section 7.5.E,
an amount equal to the difference between the Value of the Shares sold pursuant to any Share Option Plan and the net proceeds of such sale. 

        H.    Tax Loans.    The General Partner or the General Partner Entity may in its sole and absolute discretion, cause
the Partnership to make an interest free loan to the General Partner or the General Partner Entity, as applicable, provided that the proceeds of such loans are used to satisfy any tax liabilities of
the General Partner or the General Partner Entity, as applicable. 

Section 7.6    Transactions With Affiliates  

        A.    Transactions with Certain Affiliates.    Except as expressly permitted by this Agreement with respect to any
non-arms' length transaction with an Affiliate, the Partnership shall not, directly or indirectly, sell, transfer or convey any property to, or purchase any property from, or borrow funds
from, or lend funds to, any Partner or any Affiliate of the Partnership that is not also a Subsidiary of the Partnership, except pursuant to transactions that are determined in good faith by the
General Partner to be on terms that are fair and reasonable and no less favorable to the Partnership than would be obtained from an unaffiliated third party. 

        B.    Conflict Avoidance.    The General Partner is expressly authorized to enter into, in the name and on behalf of
the Partnership, a non-competition arrangement and other conflict avoidance agreements with various Affiliates of the Partnership and General Partner on such terms as the General Partner,
in its sole and absolute discretion, believes are advisable. 

        C.    Benefit Plans Sponsored by the Partnership.    The General Partner in its sole and absolute discretion and
without the approval of the Limited Partners, may propose and adopt on behalf of the Partnership employee benefit plans funded by the Partnership for the benefit of employees of the General Partner,
the Partnership, Subsidiaries of the Partnership or any Affiliate of any of them. 

Section 7.7    Indemnification  

        A.    General.    The Partnership shall indemnify each Indemnitee to the fullest extent provided by the Act from and
against any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, attorneys fees and other legal fees and expenses), judgments, fines, settlements
and other amounts arising from or in connection with any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, incurred by the Indemnitee and
relating to the Partnership or the General Partner or the General Partner Entity or the operation of, or the ownership of property by, the Indemnitee, Partnership or the General Partner or the General
Partner Entity as set forth in this Agreement in which any such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is established by a final determination
of a court of competent jurisdiction that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the 

33

 

proceeding
and either was committed in bad faith or was the result of active and deliberate dishonesty, (ii) the Indemnitee actually received an improper personal benefit in money, property or
services or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. Without limitation, the foregoing indemnity shall
extend to any liability of any Indemnitee, pursuant to a loan guarantee, contractual obligation for any indebtedness or other obligation or otherwise, for any indebtedness of the Partnership or any
Subsidiary of the Partnership (including, without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General Partner is
hereby authorized and empowered, on behalf of the Partnership, to enter into one or more indemnity agreements consistent with the provisions of this Section 7.7 in favor of any Indemnitee
having or potentially having liability for any such indebtedness. The termination of any proceeding by judgment, order or settlement does not create a presumption that the Indemnitee did not meet the
requisite standard of conduct set forth in this Section 7.7.A. The termination of any proceeding by conviction or upon a plea of nolo contendere or its equivalent, or an entry of an order of
probation prior to judgment, creates a rebuttable presumption that the Indemnitee acted in a manner contrary to that specified in this Section 7.7.A with respect to the subject matter of such
proceeding. Any indemnification pursuant to this Section 7.7 shall be made only out of the assets of the Partnership, and any insurance proceeds from the liability policy covering the General
Partner and any Indemnitee, and neither the General Partner nor any Limited Partner shall have any obligation to contribute to the capital of the Partnership or otherwise provide funds to enable the
Partnership to fund its obligations under this Section 7.7. 

        B.    Reimbursement of Expenses.    Reasonable expenses expected to be incurred by an Indemnitee shall be paid or
reimbursed by the Partnership in advance of the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative made or threatened
against an Indemnitee upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee's good faith belief that the standard of conduct necessary for
indemnification by the Partnership as authorized in this Section 7.7.A has been met and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall
ultimately be determined that the standard of conduct has not been met. 

        C.    No Limitation of Rights.    The indemnification provided by this Section 7.7 shall be in addition to any
other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an
Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant to which such Indemnitee is indemnified. 

        D.    Insurance.    The Partnership may purchase and maintain insurance on behalf of the Indemnitees and such other
Persons as the General Partner shall determine against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership's activities,
regardless of whether the Partnership would have the power to indemnify such Indemnitee or Person against such liability under the provisions of this Agreement. 

        E.    No Personal Liability for Limited Partners.    In no event may an Indemnitee subject any of the Partners to
personal liability by reason of the indemnification provisions set forth in this Agreement. 

34

 

        F.    Interested Transactions.    An Indemnitee shall not be denied indemnification in whole or in part under this
Section 7.7 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this
Agreement. 

        G.    Benefit.    The provisions of this Section 7.7 are for the benefit of the Indemnitees, their employees,
officers, directors, trustees, heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of
this Section 7.7, or any provision hereof, shall be prospective only and shall not in any way affect the limitation on the Partnership's liability to any Indemnitee under this
Section 7.7 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or related to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

        H.    Indemnification Payments Not Distributions.    If and to the extent any payments to the General Partner pursuant
to this Section 7.7 constitute gross income to the General Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall constitute guaranteed payments
within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership and all Partners, and shall not be treated as distributions for purposes of
computing the Partners' Capital Accounts. 

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

Section 7.8    Liability of the General Partner  

        A.    General.    Notwithstanding anything to the contrary set forth in this Agreement, the General Partner (which for
the purposes of this Section 7.8 shall include the directors, trustees and officers of the General Partner) shall not be liable for monetary or other damages to the Partnership, any Partners or
any Assignees for losses sustained, liabilities incurred or benefits not derived as a result of errors in judgment or mistakes of fact or law or of any act or omission unless the General Partner acted
in bad faith and the act or omission was material to the matter giving rise to the loss, liability or benefit not derived. 

        B.    Obligation to Consider Interests of General Partner Entity.    The Limited Partners expressly acknowledge that
the General Partner, in considering whether to dispose of any of the Partnership assets, shall take into account the tax consequences to the General Partner Entity of any such disposition and shall
have no liability whatsoever to the Partnership or any Limited Partner for decisions that are based upon or influenced by such tax consequences. 

        C.    No Obligation to Consider Separate Interests of Limited Partners or Shareholders.    The Limited Partners
expressly acknowledge that the General Partner is acting on behalf of the Partnership and the shareholders of the General Partner Entity, that the General Partner is under no obligation to consider
the separate interests of the Limited Partners (including, without limitation, the tax consequences to Limited Partners or Assignees) in deciding whether to cause 

35

 

the
Partnership to take (or decline to take) any actions, and that the General Partner shall not be liable for monetary or other damages for losses sustained, liabilities incurred or benefits not
derived by Limited Partners in connection with any decisions or actions made or taken or declined to be made or taken, provided that the General Partner has acted pursuant to its authority under this
Agreement. 

        D.    Actions of Agents.    Subject to its obligations and duties as General Partner set forth in
Section 7.1.A, the General Partner may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its
agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the General Partner in good faith. 

        E.    Effect of Amendment.    Notwithstanding any other provision contained herein, any amendment, modification or
repeal of this Section 7.8 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner's liability to the Partnership and the
Limited Partners under this Section 7.8 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole
or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

        F.    Limitations of Fiduciary Duty.    Sections 7.1.B, 7.1.E and this Section 7.8 and any other Section of
this Agreement limiting the liability of the General Partner and/or its trustees, directors and officers shall constitute an express limitation of any duties, fiduciary or otherwise, that they would
owe the Partnership or the Limited Partners if such duty would be imposed by any law, in equity or otherwise. 

Section 7.9    Other Matters Concerning the General Partner  

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

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

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

36

 

        D.    Actions to Maintain REIT Status or Avoid Taxation of the General Partner Entity.    Notwithstanding any other
provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership
undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the General Partner Entity to qualify as a REIT or
(ii) to allow the General Partner Entity to avoid incurring any liability for taxes under Section 857 or 4981 of the Code, is expressly authorized under this Agreement and is deemed
approved by all of the Limited Partners. 

Section 7.10    Reliance By Third Parties  

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

Section 7.11    Restrictions on General Partner's Authority  

        A.    Consent Required.    The General Partner may not take any action in contravention of an express prohibition or
limitation of this Agreement without the written Consent of (i) all Partners adversely affected or (ii) such lower percentage of the Partnership Interests held by Limited Partners as may
be specifically provided for under a provision of this Agreement or the Act. The preceding sentence shall not apply to any limitation or prohibition in this Agreement that expressly authorizes the
General Partner to take action (either in its discretion or in specified circumstances) so long as the General Partner acts within the scope of such authority. 

        B.    Sale of All Assets of the Partnership.    Except as provided in Article XIII, the General Partner may
not, directly or indirectly, cause the Partnership to sell, exchange, transfer or otherwise dispose of all or substantially all of the Partnership's assets in a single transaction or 

37

 

a
series of related transactions (including by way of merger (including a triangular merger), consolidation or other combination with any other Persons) without the Consent of the Partners holding
Partnership Interests representing more than fifty percent (50%) of the Percentage Interest of the Class A Units, provided, however, that the foregoing limitation shall not apply to any leases
of all or substantially all of the Partnership's assets entered into by the Partnership in order to satisfy any REIT Requirements. 

Section 7.12    Loans by Third Parties  

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

 
 

ARTICLE VIII
  RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS    
    

Section 8.1    Limitation of Liability  

        The Limited Partners shall have no liability under this Agreement except as expressly provided in this Agreement, including Section 10.5, or under the Act. 

Section 8.2    Management of Business  

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

Section 8.3    Outside Activities of Limited Partners  

        Subject to Section 7.5 hereof, and subject to any agreements entered into pursuant to Section 7.6.B hereof and to any other agreements entered into
by a Limited Partner or its Affiliates with the Partnership or a Subsidiary, any Limited Partner (other than the General Partner) and any officer, director, employee, agent, trustee, Affiliate or
shareholder of any Limited Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests
and activities in direct or indirect competition with the Partnership. Neither the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any 

38

 

Limited
Partner or Assignee. None of the Limited Partners (other than the General Partner) or any other Person shall have any rights by virtue of this Agreement or the partnership relationship
established hereby in any business ventures of any other Person (other than the General Partner to the extent expressly provided herein), and no Person (other than the General Partner) shall have any
obligation pursuant to this Agreement to offer any interest in any such business venture to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character
which, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person. 

Section 8.4    Return of Capital  

        Except pursuant to the right of redemption set forth in Section 8.6, no Limited Partner shall be entitled to the withdrawal or return of its Capital
Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. No Limited Partner or Assignee shall have priority over
any other Limited Partner or Assignee either as to the return of Capital Contributions (except as permitted by Section 4.2.A) or, except to the extent provided by Exhibit C or as
permitted by Sections 4.2.A, 5.1.B(i), 6.1.A and 6.1.B, or otherwise expressly provided in this Agreement, as to profits, losses, distributions or credits. 

Section 8.5    Rights of Limited Partners Relating to the Partnership  

        A.    General.    In addition to other rights provided by this Agreement or by the Act, and except as limited by
Section 8.5.D, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner's interest as a limited partner in the Partnership, upon written demand with a
statement of the purpose of such demand and at such Limited Partner's own expense: 

	(1)
	to
obtain a copy of the most recent annual and quarterly reports filed with the Securities and Exchange Commission by either the General Partner Entity or the Partnership, if any,
pursuant to the Exchange Act;

	(2)
	to
obtain a copy of the Partnership's federal, state and local income tax returns for each Fiscal Year;

	(3)
	to
obtain a current list of the name and last known business, residence or mailing address of each Partner;

	(4)
	to
obtain a copy of this Agreement and the Certificate of Limited Partnership and all amendments thereto, together with executed copies of all powers of attorney pursuant to which
this Agreement, the Certificate of Limited Partnership and all amendments thereto have been executed;

	(5)
	to
obtain true and full information regarding the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Partner and
which each Partner has agreed to contribute in the future, and the date on which each Partner became a Partner; and 

39

 

	(6)
	other
information regarding the affairs of the Partnership as is just and reasonable. 

        B.    Notice of Conversion Factor.    The Partnership shall notify each Limited Partner upon request (i) of the
then current Conversion Factor and (ii) of any changes to the Conversion Factor. 

        C.    Notice of Extraordinary Transaction of the General Partner Entity.    The General Partner Entity shall not make
any extraordinary distributions of cash or property to its shareholders or effect a merger (including, without limitation, a triangular merger), consolidation or other combination with or into another
Person, a sale of all or substantially all of its assets or any other similar extraordinary transaction without providing written notice to the Limited Partners of its intention to make such
distribution or effect such merger, consolidation, combination, sale or other extraordinary transaction at least twenty (20) Business Days prior to the record date to determine shareholders
eligible to receive such distribution or to vote upon the approval of such merger, sale or other extraordinary transaction (or, if no such record date is applicable, at least twenty
(20) Business Days before consummation of such merger, sale or other extraordinary transaction), which notice shall describe in reasonable detail the action to be taken; provided, however, that
the General Partner, in its sole and absolute discretion, may shorten the required notice period of not less than twenty (20) Business Days prior to the record
date to determine the shareholders eligible to vote upon a merger transaction (but not any of the other transactions covered by this Section 8.5.C.) to a period of not less than ten
(10) calendar days (thereby continuing to afford the holders of Partnership Units the opportunity to redeem Partnership Units under Section 8.6 on or prior to the record date for the
shareholder vote on the merger transaction) so long as (i) the General Partner Entity will be the surviving entity in such merger transaction, (ii) immediately following the merger
transaction, Persons who held voting securities of the General Partner Entity immediately prior to such merger transaction will hold, solely by reason of the ownership of voting securities of the
General Partner Entity immediately prior to the merger transaction, voting securities of the General Partner Entity representing not less than fifty-one percent (51%) of the total combined
voting power of all outstanding voting securities of the General Partner Entity after such merger, and (iii) in the event that in connection with such merger transaction the Partnership will
merge with another entity, the Partnership will be the surviving entity in such merger. This provision for such notice shall not be deemed (i) to permit any transaction that otherwise is
prohibited by this Agreement or requires a Consent of the Partners or (ii) to require a Consent on the part of any one or more of the Limited Partners to a transaction that does not otherwise
require Consent under this Agreement. Each Limited Partner agrees, as a condition to the receipt of the notice pursuant hereto, to keep confidential the information set forth therein until such time
as the General Partner Entity has made public disclosure thereof and to use such information during such period of confidentiality solely for purposes of determining whether to exercise the Redemption
Right; provided, however, that a Limited Partner may disclose such information to its attorney, accountant and/or financial advisor for purposes of obtaining advice with respect to such exercise so
long as such attorney, accountant and/or financial advisor agrees to receive and hold such information subject to this confidentiality requirement. 

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

40

 

General
Partner reasonably believes to be in the nature of trade secrets or other information the disclosure of which the General Partner in good faith believes is not in the best interests of the
Partnership or could damage the Partnership or its business or (ii) the Partnership is required by law or by agreements with unaffiliated third parties to keep confidential, provided that this
Section 8.5.D shall not affect the notice requirements set forth in Section 8.5.C above. 

Section 8.6    Redemption Right  

        A.    General.    (i) Subject to Section 8.6.C, at any time on or after one year following the date of
the initial issuance thereof (which, in the event of the transfer of a Class A Unit or Class B Unit, shall be deemed to be the date that the Class A Unit (or corresponding
Class B Unit) or such Class B Unit, as the case may be, was issued to the original recipient thereof for purposes of this Section 8.6), the holder of a Partnership Unit (if other
than the General Partner or the General Partner Entity or any Subsidiary of either the General Partner or the General Partner Entity) shall have the right (the "Redemption Right") to require the
Partnership to redeem such Partnership Unit, with such redemption to occur on the Specified Redemption Date and at a redemption price equal to and in the form of the Cash Amount to be paid by the
Partnership. Any such Redemption Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the holder of the Partnership Units
who is exercising the Redemption Right (the "Redeeming Partner"). A Limited Partner may exercise the Redemption Right from time to time, without limitation as to frequency, with respect to part or all
of the Partnership Units that it owns, as selected by the Limited Partner, provided that a Limited Partner may not exercise the Redemption Right for less than one thousand (1,000) Partnership Units of
a particular class unless such Redeeming Partner then holds less than one thousand (1,000) Partnership Units in that class, in which event the Redeeming Partner must exercise the Redemption Right for
all of the Partnership Units held by such Redeeming Partner in that class, and provided further that, with respect to a Limited Partner which is an entity, such Limited Partner may exercise the
Redemption Right for less than one thousand (1,000) Partnership Units without regard to whether or not such Limited Partner is exercising the Redemption Right for all of the Partnership Units held by
such Limited Partner as long as such Limited Partner is exercising the Redemption Right on behalf of one or more of its equity owners in respect of one hundred percent (100%) of such equity owners'
interests in such Limited Partner. For purposes hereof, a Class A Unit issued upon conversion of a Class B Unit shall be deemed to have been issued when the Class B Unit was
issued. 

        (ii)   The
Redeeming Partner shall have no right with respect to any Partnership Units so redeemed to receive any distributions paid in respect of a Partnership Record Date
for distributions in respect of Partnership Units after the Specified Redemption Date with respect to such Partnership Units. 

        (iii)  The
Assignee of any Limited Partner may exercise the rights of such Limited Partner pursuant to this Section 8.6, and such Limited Partner shall be deemed to
have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such Limited Partner's Assignee. In connection with any exercise of such rights by such Assignee on
behalf of such Limited Partner, the Cash Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner. 

41

 

        (iv)  If
the General Partner Entity provides notice to the Limited Partners, pursuant to Section 8.5.C hereof, the Redemption Right shall be exercisable, without
regard to whether the Partnership Units have been outstanding for any specified period, during the period commencing on the date on which the General Partner Entity provides such notice and ending on
the record date to determine shareholders eligible to receive such distribution or to vote upon the approval of such merger, sale or
other extraordinary transaction (or, if no such record date is applicable, at least twenty (20) Business Days before the consummation of such merger, sale or other extraordinary transaction).
If this subparagraph (iv) applies, the Specified Redemption Date is the date on which the Partnership and the General Partner receive notice of exercise of the Redemption Right, rather than ten
(10) Business Days after receipt of the notice of redemption. 

        B.    General Partner Assumption of Right.    (i) If a Limited Partner has delivered a Notice of Redemption,
the General Partner Entity may, in its sole and absolute discretion (subject to the limitations on ownership and transfer of Shares set forth in the Declaration of Trust), elect to assume directly and
satisfy a Redemption Right. If such election is made by the General Partner Entity, the Partnership shall determine whether the General Partner Entity shall pay the Redemption Amount in the form of
the Cash Amount or the Shares Amount. The Partnership's decision regarding whether such payment shall be made in the form of the Cash Amount or the Shares Amount shall be made by the General Partner,
in its capacity as the general partner of the Partnership and in its sole and absolute discretion. Payment of the Redemption Amount in the form of Shares shall be in Shares registered for resale under
Section 12 of the Exchange Act and listed for trading on the exchange or national market on which the Shares are Publicly Traded and the issuance of Shares upon redemption shall be registered
under the Securities Act or, at the election of the General Partner Entity resale of the Shares issued upon redemption shall be registered (so long as the Redeeming Partner provides all information
required for such registration), and, provided further that, if the Shares are not Publicly Traded at the time a Redeeming Partner exercises its Redemption Right, the Redemption Amount shall be paid
only in the form of the Cash Amount unless the Redeeming Partner, in its sole and absolute discretion, consents to payment of the Redemption Amount in the form of the Shares Amount), on the Specified
Redemption Date, upon such payment the General Partner Entity shall acquire the Partnership Units offered for redemption by the Redeeming Partner and shall be treated for all purposes of this
Agreement as the owner of such Partnership Units. Unless the General Partner Entity, in its sole and absolute discretion, shall exercise its right to assume directly and satisfy the Redemption Right,
the General Partner Entity shall not have any obligation to the Redeeming Partner or to the Partnership with respect to the Redeeming Partner's exercise of the Redemption Right. If the General Partner
Entity shall exercise its right to assume directly and satisfy the Redemption Right in the manner described in the first sentence of this Section 8.6B and shall fully perform its obligations in
connection therewith, the Partnership shall have no right or obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner's exercise of the Redemption Right, and each
of the Redeeming Partner, the Partnership and the General Partner Entity shall, for federal income tax purposes, treat the transaction between the General Partner Entity and the Redeeming Partner as a
sale of the Redeeming Partner's Partnership Units to the General Partner Entity. Nothing contained in this Section 8.6.B shall imply any right of the General Partner Entity to require any
Limited Partner to exercise the Redemption Right afforded to such Limited Partner pursuant to Section 8.6.A. 

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        (ii)   If
the General Partner Entity determines to pay the Redeeming Partner the Redemption Amount in the form of Shares, the total number of Shares to be paid to the
Redeeming Partner in exchange for the Redeeming Partner's Partnership Units shall be the applicable Shares Amount. If this amount is not a whole number of Shares, the Redeeming Partner shall be paid
(i) that number of Shares which equals the nearest whole number less than such amount plus (ii) an amount of cash which the General Partner
Entity determines, in its reasonable discretion, to represent the fair value of the remaining fractional Share which would otherwise be payable to the Redeeming Partner. 

        (iii)  Each
Redeeming Partner agrees to execute such documents as the General Partner Entity may reasonably require in connection with the issuance of Shares upon exercise of
the Redemption Right. 

        C.    Exceptions to Exercise of Redemption Right.    Notwithstanding the provisions of Sections 8.6.A and 8.6.B, a
Partner shall not be entitled to exercise the Redemption Right pursuant to Section 8.6.A if (but only as long as) the delivery of Shares to such Partner on the Specified Redemption Date would
be (i) prohibited under the restrictions on the ownership or transfer of Shares in the Declaration of Trust (or, if the General Partner is not the General Partner Entity, the organizational
documents of the General Partner Entity) or (ii) prohibited under applicable federal or state securities laws or regulations (in each case regardless of whether the General Partner Entity would
in fact assume and satisfy the Redemption Right). 

        D.    No Liens on Partnership Units Delivered for Redemption.    Each Limited Partner covenants and agrees with the
General Partner that all Partnership Units delivered for redemption shall be delivered to the Partnership or the General Partner Entity, as the case may be, free and clear of all liens; and,
notwithstanding anything contained herein to the contrary, neither the General Partner Entity nor the Partnership shall be under any obligation to acquire Partnership Units which are or may be subject
to any liens. Each Limited Partner further agrees that, if any state or local property transfer tax is payable as a result of the transfer of its Partnership Units to the Partnership or the General
Partner Entity, such Limited Partner shall assume and pay such transfer tax. 

        E.    Additional Partnership Interests; Modification of Holding Period.    If the Partnership issues Partnership
Interests to any Additional Limited Partner pursuant to Article IV, the General Partner shall make such revisions to this Section 8.6 as it determines are necessary to reflect the
issuance of such Partnership Interests (including setting forth any restrictions on the exercise of the Redemption Right with respect to such Partnership Interests) which differ from those set forth
in this Agreement), provided that no such revisions shall materially adversely affect the rights of any other Limited Partner to exercise its Redemption Right without that Limited Partner's prior
written consent. In addition, the General Partner may, with respect to any holder or holders of Partnership Units, at any time and from time to time, as it shall determine in its sole and absolute
discretion, (i) reduce or waive the length of the period prior to which such holder or holders may not exercise the Redemption Right or (ii) reduce or waive the length of the period
between the exercise of the Redemption Right and the Specified Redemption Date. 

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ARTICLE IX
  BOOKS, RECORDS, ACCOUNTING AND REPORTS    
    

Section 9.1    Records and Accounting  

        The General Partner shall keep or cause to be kept at the principal office of the Partnership appropriate books and records with respect to the Partnership's
business, including, without limitation, all books and records necessary to provide to the Limited Partners any information, lists and copies of documents required to be provided pursuant to
Section 9.3. Any records maintained by or on behalf of the Partnership in the regular course of its business may be kept on, or be in the form of, punch cards, magnetic tape, photographs,
micrographics or any other information storage device, provided that the records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the
Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with generally accepted accounting principles. 

Section 9.2    Fiscal Year  

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

Section 9.3    Reports  

        A.    Annual Reports.    As soon as practicable, but in no event later than the date on which the General Partner
Entity mails its annual report to its shareholders, the General Partner Entity shall cause to be mailed to each Limited Partner an annual report, as of the close of the most recently ended Fiscal
Year, containing financial statements of the Partnership, or of the General Partner Entity if such statements are prepared on a consolidated basis with the Partnership, for such Fiscal Year, presented
in accordance with generally accepted accounting principles, such statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner Entity. 

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

44

 
 
 

ARTICLE X
  TAX MATTERS    
    

Section 10.1    Preparation of Tax Returns  

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

Section 10.2    Tax Elections  

        Except as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available election pursuant to
the Code (including the election under Section 754 of the Code). The General Partner shall have the right to seek to revoke any such election
upon the General Partner's determination in its sole and absolute discretion that such revocation is in the best interests of the Partners. 

Section 10.3    Tax Matters Partner  

        A.    General.    The General Partner shall be the "tax matters partner" of the Partnership for federal income tax
purposes. Pursuant to Section 6223(c)(3) of the Code, upon receipt of notice from the IRS of the beginning of an administrative proceeding with respect to the Partnership, the tax matters
partner shall furnish the IRS with the name, address, taxpayer identification number and profit interest of each of the Limited Partners and any Assignees; provided, however, that such information is
provided to the Partnership by the Limited Partners. 

        B.    Powers.    The tax matters partner is authorized, but not required: 

	(1)
	to
enter into any settlement with the IRS with respect to any administrative or judicial proceedings for the adjustment of Partnership items required to be taken into account by a
Partner for income tax purposes (such administrative proceedings being referred to as a "tax audit" and such judicial proceedings being referred to as "judicial review"), and in the settlement
agreement the tax matters partner may expressly state that such agreement shall bind all Partners, except that such settlement agreement shall not bind any Partner (i) who (within the time
prescribed pursuant to the Code and Regulations) files a statement with the IRS providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of
such Partner or (ii) who is a "notice partner" (as defined in Section 6231(a)(8) of the Code) or a member of a "notice group" (as defined in Section 6223(b)(2) of the Code);

	(2)
	if
a notice of a final administrative adjustment at the Partnership level of any item required to be taken into account by a Partner for tax purposes (a "final adjustment") is mailed
to the tax matters partner, to seek judicial review of such 

45

 

	

	final
adjustment, including the filing of a petition for readjustment with the Tax Court or the filing of a complaint for refund with the United States Claims Court or the
District Court of the United States for the district in which the Partnership's principal place of business is located;

	(3)
	to
intervene in any action brought by any other Partner for judicial review of a final adjustment;

	(4)
	to
file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not allowed by the IRS, to file an appropriate pleading
(petition or complaint) for judicial review with respect to such request;

	(5)
	to
enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item required to be taken into account by a Partner for tax purposes,
or an item affected by such item; and

	(6)
	to
take any other action on behalf of the Partners of the Partnership in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or
regulations. 

        The
taking of any action and the incurring of any expense by the tax matters partner in connection with any such proceeding, except to the extent required by law, is a matter in the sole
and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner set forth in Section 7.7 shall be fully applicable to the tax matters
partner in its capacity as such. 

        C.    Reimbursement.    The tax matters partner shall receive no compensation for its services. All third party costs
and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be
construed to restrict the Partnership from engaging an accounting firm and/or law firm to assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the
Partnership for such services is reasonable. 

Section 10.4 Organizational Expenses  

        The Partnership shall elect to deduct expenses, if any, incurred by it in organizing the Partnership ratably over a sixty (60) month period as provided in
Section 709 of the Code. 

Section 10.5    Withholding  

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

46

 

Limited
Partner, which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment must be made unless (i) the
Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner or (ii) the General Partner determines, in its sole and absolute discretion, that
such payment may be satisfied out of the available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner. Any amounts withheld pursuant to the foregoing
clauses (i) or (ii) shall be treated as having been distributed to such Limited Partner. Each Limited Partner hereby unconditionally and irrevocably grants to the Partnership a security
interest in such Limited Partner's Partnership Interest to secure such Limited Partner's obligation to pay to the Partnership any amounts required to be paid pursuant to this Section 10.5. If a
Limited Partner fails to pay any amounts owed to the Partnership pursuant to this Section 10.5 when due, the General Partner may, in its sole and absolute discretion, elect to make the payment
to the Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner and shall succeed to all rights and
remedies of the Partnership as against such defaulting Limited Partner (including, without limitation, the right to receive distributions). Any amounts payable by a Limited Partner hereunder shall
bear interest at the base rate on corporate loans at large United States money center commercial banks, as published from time to time in The Wall Street Journal, plus four (4) percentage
points (but not higher than the maximum lawful rate that may be charged under the law) from the date such amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full.
Each Limited Partner shall take such actions as the Partnership or the General Partner shall request to perfect or enforce the security interest created hereunder. 

 
 

ARTICLE XI
  TRANSFERS AND WITHDRAWALS    
    

Section 11.1    Transfer  

        A.    Definition.    The term "transfer," when used in this Article XI with respect to a Partnership Interest
or a Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partnership Interest to another Person or by which a
Limited Partner purports to assign all or any part of its Limited Partnership Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange
or any other disposition by law or otherwise. The term "transfer" when used in this Article XI does not include any redemption or repurchase of Partnership Units by the Partnership from a
Partner or acquisition of Partnership Units from a Limited Partner by the General Partner Entity pursuant to Section 8.6 or otherwise. No part of the interest of a Limited Partner shall be
subject to the claims of any creditor, any spouse for alimony or support, or to legal process, and may not be voluntarily or involuntarily alienated or encumbered except as may be specifically
provided for in this Agreement. 

        B.    General.    No Partnership Interest shall be transferred, in whole or in part, except in accordance with the
terms and conditions set forth in this Article XI. Any transfer or purported transfer of a Partnership Interest not made in accordance with this Article XI shall be null and void. 

47

 

Section 11.2    Transfers of Partnership Interests of General Partner  

        A.    General.    The General Partner may not transfer any of its Partnership Interests except in connection with
(i) a transaction permitted under Section 11.2.B, (ii) any merger (including a triangular merger), consolidation or other combination with or into another Person following the
consummation of which the equity holders of the surviving entity are substantially identical to the shareholders of the General Partner Entity, or (iii) as otherwise expressly permitted under
this Agreement, nor shall the General Partner withdraw as General Partner except in connection with a transaction permitted under Section 11.2.B or any merger, consolidation, or other
combination permitted under clause (ii) of this Section 11.2.A. 

        B.    Specific Transactions Prohibited.    The General Partner Entity shall not engage in any merger (including a
triangular merger), consolidation or other combination with or into another Person (other than any transaction permitted by Section 11.2.A), sale of all or substantially all of its assets or
any reclassification, recapitalization or change of outstanding Shares (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination as described
in the definition of "Conversion Factor") ("Termination Transaction"), unless (i) the Termination Transaction has been approved by the Consent of Partners holding Partnership Interests
representing more than fifty percent (50%) of the Percentage Interest of the Class A Units, (ii) following such merger or other consolidation, substantially all of the assets of the
surviving entity consist of Partnership Units and (iii) in connection with which all Partners either will receive, or will have the right to receive, for each Unit an amount of cash,
securities, or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid to a holder of Shares, if any, corresponding to such Unit
in consideration of one such Share at any time during the period from and after the date on which the Termination Transaction is consummated; provided that, if, in connection with the Termination
Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of the percentage required for the approval of mergers under the charter documents of the General
Partner Entity, each holder of Partnership Units shall receive, or shall have the right to receive without any right of Consent set forth above in this subsection B, the greatest amount of cash,
securities, or other property which such holder would have received had it exercised the Redemption Right and received Shares in exchange for its Partnership Units immediately prior to the expiration
of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange offer. The General Partner shall not enter into an agreement or other arrangement providing for
or facilitating the creation of a General Partner Entity other than the General Partner, unless the successor General Partner Entity executes and delivers a counterpart to this Agreement in which such
General Partner Entity agrees to be fully bound by all of the terms and conditions contained herein that are applicable to a General Partner Entity. 

Section 11.3    Limited Partners' Rights to Transfer  

        A.    General.    Except to the extent expressly permitted in Sections 11.3.B and 11.3.C or in connection with the
exercise of a Redemption Right pursuant to Section 8.6, a Limited Partner may not transfer all or portion of its Partnership Interest, or any of such Limited Partner's rights as a Limited
Partner, without the prior written consent of the General Partner, which consent may be withheld in the General Partner's sole and absolute discretion. Any transfer 

48

 

otherwise
permitted under Sections 11.3.B and 11.3.C shall be subject to the conditions set forth in Section 11.3.D, 11.3.E and 11.3.F, and all permitted transfers shall be subject to
Section 11.5. 

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

        C.    Permitted Transfers.    A Limited Partner may transfer, with or without the consent of the General Partner, all
or a portion of its Partnership Interest (i) in the case of a Limited Partner who is an individual, to a member of his Immediate Family, any trust formed for the benefit of himself and/or
members of his Immediate Family, or any partnership, limited liability company, joint venture, corporation or other business entity comprised only of himself and/or members of his Immediate Family and
entities the ownership interests in which are owned by or for the benefit of himself and/or members of his Immediate Family, (ii) in the case of a Limited Partner which is a trust, to the
beneficiaries of such trust, (iii) in the case of a Limited Partner which is a partnership, limited liability company, joint venture, corporation or other business entity to which Units were
transferred pursuant to clause (i) above, to its partners, owners or stockholders, as the case may be, who are members of the Immediate Family of or are actually the Person(s) who transferred
Partnership Units to it pursuant to clause (i) above, (iv) in the case of a Limited Partner which acquired Partnership Units as of the date hereof and which is a partnership, limited
liability company, joint venture, corporation or other business entity, to its partners, owners, stockholders or Affiliates thereof, as the case may be, or the Persons owning the beneficial interests
in any of its partners, owners or stockholders or Affiliates thereof (it being understood that this clause (iv) will apply to all of each Person's Interests whether the Partnership Units
relating thereto were acquired on the date hereof or hereafter), (v) in the case of a Limited Partner which is a partnership, limited liability company, joint venture, corporation or other
business entity other than any of the foregoing described in clause (iii) or (iv), in accordance with the terms of any agreement between such Limited Partner and the Partnership pursuant to
which such Partnership Interest was issued, (vi) pursuant to a gift or other transfer without consideration, (vii) pursuant to applicable laws of descent or distribution,
(viii) to another Limited Partner and (ix) pursuant to a grant of security interest or other encumbrance effectuated in a bona fide transaction or as a result of the exercise of remedies
related thereto, subject to the provisions of Section 11.3.F hereof. A trust or other entity will be considered formed "for the benefit" of a Partner's Immediate Family even though some other
Person has a remainder interest under or with respect to such trust or other entity. 

        D.    No Transfers Violating Securities Laws.    The General Partner may prohibit any transfer of Partnership Units by
a Limited Partner unless it receives a written opinion of legal counsel (which opinion and counsel shall be reasonably satisfactory to the Partnership) to such Limited Partner to the effect that
such transfer would not require filing of a registration statement under the Securities Act or would not otherwise violate any federal or state securities laws or regulations applicable to the
Partnership or the Partnership Unit or, at the option of the Partnership, an opinion of legal counsel to the Partnership to the same effect. 

49

 

        E.    No Transfers Affecting Tax Status of Partnership.    No transfer of Partnership Units by a Limited Partner
(including a redemption or exchange pursuant to Section 8.6) may be made to any Person if (i) in the opinion of legal counsel for the Partnership, it would result in the Partnership
being treated as an association taxable as a corporation for federal income tax purposes or would result in a termination of the Partnership for federal income tax purposes (except as a result of the
redemption or exchange for Shares of all Partnership Units held by all Limited Partners other than the General Partner or the General Partner Entity or any Subsidiary of the General Partner or the
General Partner Entity or pursuant to a transaction expressly permitted under Section 7.11.B or Section 11.2), (ii) in the opinion of legal counsel for the Partnership, it would
adversely affect the ability of the General Partner Entity to continue to qualify as a REIT or would subject the General Partner Entity to any additional taxes under Section 857 or
Section 4981 of the Code or (iii) such transfer is effectuated through an "established securities market" or a "secondary market (or the substantial equivalent thereof)" within the
meaning of Section 7704 of the Code (provided that this clause (iii) shall not be the basis for limiting or restricting in any manner the exercise of the Redemption Right under
Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a
significant risk that the Partnership will be treated as a "publicly traded partnership" and, by reason thereof, taxable as a corporation). 

        F.    No Transfers to Holders of Nonrecourse Liabilities.    No pledge or transfer of any Partnership Units may be
made to a lender to the Partnership or any Person who is related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender to the Partnership whose loan
constitutes a Nonrecourse Liability unless (i) the General Partner is provided prior written notice thereof and (ii) the lender enters into an arrangement with the Partnership and the
General Partner to exchange or redeem for the Redemption Amount any Partnership Units in which a security interest is held simultaneously with the time at which such lender would be deemed to be a
partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code. 

Section 11.4    Substituted Limited Partners  

        A.    Consent of General Partner.    No Limited Partners shall have the right to substitute a transferee as a Limited
Partner in its place. The General Partner shall, however, have the right to consent to the
admission of a transferee of the interest of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld by the General Partner in
its sole and absolute discretion. The General Partner's failure or refusal to permit a transferee of any such interests to become a Substituted Limited Partner shall not give rise to any cause of
action against the Partnership or any Partner. The General Partner hereby grants its consent to the admission as a Substituted Limited Partner to any bona fide financial institution that loans money
or otherwise extends credit to a holder of Partnership Units and thereafter becomes the owner of such Partnership Units pursuant to the exercise by such financial institution of its rights under a
pledge of such Partnership Units granted in connection with such loan or extension of credit. 

        B.    Rights of Substituted Partner.    A transferee who has been admitted as a Substituted Limited Partner in
accordance with this Article XI shall have all the rights and powers and be 

50

 

subject
to all the restrictions and liabilities of a Limited Partner under this Agreement. The admission of any transferee as a Substituted Limited Partner shall be conditioned upon the transferee
executing and delivering to the Partnership an acceptance of all the terms and conditions of this Agreement (including, without limitation, the provisions of Section 15.11) and such other
documents or instruments as may be required to effect the admission. 

        C.    Partner Registry.    Upon the admission of a Substituted Limited Partner, the General Partner shall update the
Partner Registry in the books and records of the Partnership as it deems necessary to reflect such admission in the Partner Registry. 

Section 11.5    Assignees  

        If the General Partner, in its sole and absolute discretion, does not consent to the admission of any permitted transferee under Section 11.3 as a
Substituted Limited Partner, as described in Section 11.4, such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be entitled to all the rights of an
assignee of a limited partnership interest under the Act, including the right to receive distributions from the Partnership and the share of Net Income, Net Losses, gain, loss and Recapture Income
attributable to the Partnership Units assigned to such transferee, and shall have the rights granted to the Limited Partners under Section 8.6, but shall not be deemed to be a holder of
Partnership Units for any other purpose under this Agreement, and shall not be entitled to vote such Partnership Units in any matter presented to the Limited Partners for a vote (such Partnership
Units being deemed to have been voted on such matter in the same proportion as all other Partnership Units held by Limited Partners are voted). If any such transferee desires to make a further
assignment of any such Partnership Units, such transferee shall be subject to all the provisions of this Article XI to the
same extent and in the same manner as any Limited Partner desiring to make an assignment of Partnership Units. 

Section 11.6    General Provisions  

        A.    Withdrawal of Limited Partner.    No Limited Partner may withdraw from the Partnership other than as a result of
a permitted transfer of all of such Limited Partner's Partnership Units in accordance with this Article XI or pursuant to redemption of all of its Partnership Units under Section 8.6. 

        B.    Termination of Status as Limited Partner.    Any Limited Partner who shall transfer all of its Partnership Units
in a transfer permitted pursuant to this Article XI or pursuant to redemption of all of its Partnership Units under Section 8.6 shall cease to be a Limited Partner. 

        C.    Timing of Transfers.    Transfers pursuant to this Article XI may only be made upon three
(3) Business Days prior notice, unless the General Partner otherwise agrees. 

        D.    Allocations.    If any Partnership Interest is transferred during any quarterly segment of the Partnership's
fiscal year in compliance with the provisions of this Article XI or redeemed or transferred pursuant to Section 8.6, Net Income, Net Losses, each item thereof and all other items
attributable to such interest for such fiscal year shall be divided and allocated between the transferor Partner and the transferee Partner by taking into account their varying 

51

 

interests
during the fiscal year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion,
elects to adopt a daily, weekly, or a monthly proration period, in which event Net Income, Net Losses, each item thereof and all other items attributable to such interest for such fiscal year shall be
prorated based upon the applicable method selected by the General Partner). Solely for purposes of making such allocations, each of such items for the calendar month in which the transfer or
redemption occurs shall be allocated to the Person who is a Partner as of midnight on the last day of said month. All distributions of Available Cash attributable to any Partnership Unit with respect
to which the Partnership Record Date is before the date of such transfer, assignment or redemption shall be made to the transferor Partner or the Redeeming Partner, as the case may be, and, in the
case of a transfer or assignment
other than a redemption, all distributions of Available Cash thereafter attributable to such Partnership Unit shall be made to the transferee Partner. 

        E.    Additional Restrictions.    In addition to any other restrictions on transfer herein contained, including
without limitation the provisions of this Article XI and Article VII, in no event may any transfer or assignment of a Partnership Interest by any Partner (including pursuant to
Section 8.6) be made without the express consent of the General Partner, in its sole and absolute discretion, (i) to any person or entity who lacks the legal right, power or capacity to
own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion of a Partnership Interest, such as the Capital Account, or rights to distributions,
separate and apart from all other components of a Partnership Interest; (iv) if in the opinion of legal counsel to the Partnership such transfer would cause a termination of the Partnership for
federal or state income tax purposes (except as a result of the redemption or exchange for Shares of all Partnership Units held by all Limited Partners other than the General Partner, the General
Partner Entity, or any Subsidiary of either, or pursuant to a transaction expressly permitted under Section 7.11.B or Section 11.2); (v) if in the opinion of counsel to the
Partnership, such transfer would cause the Partnership to cease to be classified as a partnership for federal income tax purposes (except as a result of the redemption or exchange for Shares of all
Units held by all Limited Partners other than the General Partner, the General Partner Entity, or any Subsidiary of either, or pursuant to a transaction expressly permitted under Section 7.11.B
or Section 11.2); (vi) if such transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (vii) if such transfer
is effectuated through an "established securities market" or a "secondary market (or the substantial equivalent thereof)" within the meaning of Section 7704 of the Code or such transfer causes
the Partnership to become a "publicly traded partnership," as such term is defined in Section 469(k)(2) or Section 7704(b) of the Code (provided that, this clause (vii) shall not
be the basis for limiting or restricting in any manner the exercise of the Redemption Right under Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General
Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a "publicly traded partnership" and, by
reason thereof, taxable as a corporation); (viii) if such transfer subjects the Partnership or the activities of the Partnership to regulation under the Investment Company Act of 1940, the
Investment Advisors Act of 1940 or ERISA, each as amended; (ix) if such transfer could adversely affect the ability of the General Partner Entity to fail to remain qualified as a REIT; or
(x) if in the opinion of legal counsel for the transferring Partner (which opinion and counsel shall be reasonably satisfactory to the Partnership) or legal counsel for the Partnership, such
transfer would cause the General Partner Entity to fail to continue to qualify as a REIT or 

52

 

subject
the General Partner Entity to any additional taxes under Section 857 or Section 4981 of the Code. 

        F.    Avoidance of "Publicly Traded Partnership" Status.    The General Partner shall monitor the transfers of
interests in the Partnership to determine (i) if such interests are being traded on an "established securities market" or a "secondary market (or the substantial equivalent thereof)" within the
meaning of Section 7704 of the Code and (ii) whether additional transfers of interests would result in the
Partnership being unable to qualify for at least one of the "safe harbors" set forth in Regulations Section 1.7704-1 (or such other guidance subsequently published by the IRS
setting forth safe harbors under which interests will not be treated as "readily tradable on a secondary market (or the substantial equivalent thereof)" within the meaning of Section 7704 of
the Code) (the "Safe Harbors"). The General Partner shall take all steps reasonably necessary or appropriate to prevent any trading of interests or any recognition by the Partnership of transfers made
on such markets and, except as otherwise provided herein, to insure that at least one of the Safe Harbors is met; provided, however, that the foregoing shall not authorize the General Partner to limit
or restrict in any manner the right of any holder of a Partnership Unit to exercise the Redemption Right in accordance with the terms of Section 8.6 unless, and only to the extent that, outside
tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a
"publicly traded partnership" and, by reason thereof, taxable as a corporation. 

 
 

ARTICLE XII
  ADMISSION OF PARTNERS    
    

Section 12.1    Admission of a Successor General Partner  

        A successor to all of the General Partner's General Partnership Interest pursuant to Section 11.2 who is proposed to be admitted as a successor General
Partner shall be admitted to the Partnership as the General Partner, effective upon such transfer. Any such successor shall carry on the business of the Partnership without dissolution. In such case,
the admission shall be subject to such successor General Partner executing and delivering to the Partnership an acceptance of all of the terms and conditions of this Agreement and such other documents
or instruments as may be required to effect the admission. 

Section 12.2    Admission of Additional Limited Partners  

        A.    General.    No Person shall be admitted as an Additional Limited Partner without the consent of the General
Partner, which consent shall be given or withheld in the General Partner's sole and absolute discretion. A Person who makes a Capital Contribution to the Partnership in accordance with this Agreement
or who exercises an option to receive Partnership Units shall be admitted to the Partnership as an Additional Limited Partner only with the consent of the General Partner and only upon furnishing to
the General Partner (i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement, including, without limitation, the power of
attorney granted in Section 15.11 and (ii) such other documents or instruments as may be required in the discretion of the General Partner to effect 

53

 

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

        B.    Allocations to Additional Limited Partners.    If any Additional Limited Partner is admitted to the Partnership
on any day other than the first day of a Fiscal Year, then Net Income, Net Losses, each item thereof and all other items allocable among Partners and Assignees for such Fiscal Year shall be allocated
among such Additional Limited Partner and all other Partners and Assignees by taking into account their varying interests during the Fiscal Year in accordance with Section 706(d) of the Code,
using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a daily, weekly or monthly proration method, in which event Net Income,
Net Losses, and each item thereof would be prorated based upon the applicable period selected by the General Partner). Solely for purposes of making such allocations, each of such items for the
calendar month in which an admission of any Additional Limited Partner occurs shall be allocated among all the Partners and Assignees including such Additional Limited Partner. All distributions of
Available Cash with respect to which the Partnership Record Date is before the date of such admission shall be made solely to Partners and Assignees other than the Additional Limited Partner, and all
distributions of Available Cash thereafter shall be made to all the Partners and Assignees including such Additional Limited Partner. 

Section 12.3    Amendment of Agreement and Certificate of Limited Partnership  

        For the admission to the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the
Partnership and, if necessary, to prepare as soon as practical an amendment of this Agreement (including an amendment to the Partner Registry) and, if required by law, shall prepare and file an
amendment to the Certificate of Limited Partnership and may for this purpose exercise the power of attorney granted pursuant to Section 15.11 hereof. 

 
 

ARTICLE XIII
  DISSOLUTION AND LIQUIDATION    
    

Section 13.1    Dissolution  

        The Partnership shall not be dissolved by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of a successor General
Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General Partner shall continue the business of the Partnership. The Partnership shall
dissolve, and its affairs shall be wound up, upon the first to occur of any of the following ("Liquidating Events"): 

	(i)
	an
event of withdrawal of the General Partner (other than an event of bankruptcy), unless within ninety (90) days after the withdrawal, the written Consent of the
Outside Limited Partners to continue the business of the Partnership and to the 

54

 

	

	appointment,
effective as of the date of withdrawal, of a substitute General Partner is obtained;

	(ii)
	through
December 31, 2054, an election to dissolve the Partnership made by the General Partner with the Consent of Partners holding Partnership Interests
representing ninety percent (90%) of the Percentage Interest of the Class A Units;

	(iii)
	an
election to dissolve the Partnership made by the General Partner, in its sole and absolute discretion after December 31, 2054;

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

	(v)
	the
sale of all or substantially all of the assets and properties of the Partnership for cash or for marketable securities; or

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

Section 13.2    Winding Up  

        A.    General.    Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes
of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall take any action that is inconsistent with, or not
necessary to or appropriate for, the winding up of the Partnership's business and affairs. The General Partner (or, if there is no remaining General Partner, any Person elected by a majority in
interest of the Limited Partners (the "Liquidator")) shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership's liabilities
and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to the extent determined by the
General Partner, include equity or other securities of the General Partner or any other entity) shall be applied and distributed in the following order: 

	(1)
	First,
to the payment and discharge of all of the Partnership's debts and liabilities to creditors other than the Partners;

	(2)
	Second,
to the payment and discharge of all of the Partnership's debts and liabilities to the General Partner; 

55

 

	(3)
	Third,
to the payment and discharge of all of the Partnership's debts and liabilities to the Limited Partners;

	(4)
	Fourth,
to the holders of Partnership Interests that are entitled to any preference in distribution upon liquidation in accordance with the rights of any such class or series of
Partnership Interests (and, within each such class or series, to each holder thereof pro rata based on its Percentage Interest in such class); and

	(5)
	The
balance, if any, to the Partners in accordance with their Capital Accounts, after giving effect to all contributions, distributions, and allocations for all periods. 

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

        B.    Deferred Liquidation.    Notwithstanding the provisions of Section 13.2.A which require liquidation of
the assets of the Partnership, but subject to the order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or
all of the Partnership's assets would be impractical or would cause undue loss to the Partners, the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of
any assets except those necessary to satisfy liabilities of the Partnership (including to those Partners as creditors) or distribute to the Partners, in lieu of cash, as tenants in common and in
accordance with the provisions of Section 13.2.A, undivided interests in such Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions in kind shall be
made only if, in the good faith judgment of the Liquidator, such distributions in kind are in the best interest of the Partners, and shall be subject to such conditions relating to the disposition and
management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. The Liquidator shall determine the fair
market value of any property distributed in kind using such reasonable method of valuation as it may adopt. 

Section 13.3    Compliance With Timing Requirements of Regulations; Restoration of Deficit Capital Accounts  

        A.    Timing of Distributions.    If the Partnership is "liquidated" within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(g), distributions shall be made under this Article XIII to the General Partner and Limited Partners who have positive Capital Accounts in compliance
with Regulations Section 1.704-1(b)(2)(ii)(b)(2). In the discretion of the General Partner, a pro rata portion of the distributions that would otherwise be made to the General
Partner and Limited Partners pursuant to this Article XIII may be: (A) distributed to a trust established for the benefit of the General Partner and Limited Partners for the purposes of
liquidating Partnership assets, collecting amounts owed to the Partnership and paying any contingent or unforeseen liabilities or obligations of the Partnership or of the General Partner arising out
of or in connection with the Partnership (in which case the assets of any such trust shall be distributed to the General Partner and Limited Partners from time to time, in the reasonable discretion of
the General Partner, in the same proportions as the amount distributed to such trust by the Partnership would otherwise have been distributed to the General Partner and Limited Partners pursuant to
this Agreement); or (B) 

56

 

withheld
to provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership; provided
that such withheld amounts shall be distributed to the General Partner and Limited Partners as soon as practicable. 

        B.    Restoration of Deficit Capital Accounts Upon Liquidation of the Partnership.    If any Partner has a deficit
balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which such liquidation occurs), such Partner
shall have no obligation to make any contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any
other Person for any purpose whatsoever, except as otherwise set forth in this Section 13.3.B, or as otherwise expressly agreed in writing by the affected Partner and the Partnership after the
date hereof. Notwithstanding the foregoing, (i) if the General Partner has a deficit balance in its Capital Account (after giving effect to all contributions, distributions, and allocations for
all Partnership Years or portions thereof, including the year during which such liquidation occurs), the General Partner shall contribute to the capital of the Partnership the amount necessary to
restore such deficit balance to zero in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(3); (ii) if a DRO Partner has
a deficit balance in its Capital Account (after giving effect to all contributions, distributions, and allocations for all Partnership Years or portions thereof, including the year during which such
liquidation occurs), such DRO Partner shall be obligated to make a contribution to the Partnership with respect to any such deficit balance in such DRO Partner's Capital Account upon a liquidation of
the Partnership in an
amount equal to the lesser of such deficit balance or such DRO Partner's DRO Amount; and (iii) the first sentence of this Section 13.3.B shall not apply with respect to any other Partner
to the extent, but only to such extent, that such Partner previously has agreed in writing, with the consent of the General Partner, to undertake an express obligation to restore all or any portion of
a deficit that may exist in its Capital Account upon a liquidation of the Partnership. No Limited Partner shall have any right to become a DRO Partner, to increase its DRO Amount, or otherwise agree
to restore any portion of any deficit that may exist in its Capital Account without the express written consent of the General Partner, in its sole and absolute discretion. Any contribution required
of a Partner under this Section 13.3.B. shall be made on or before the later of (i) the end of the Partnership Year in which the interest is liquidated or (ii) the ninetieth
(90th) day following the date of such liquidation. The proceeds of any contribution to the Partnership made by a DRO Partner with respect to a deficit in such DRO Partner's Capital Account balance
shall be treated as a Capital Contribution by such DRO Partner and the proceeds thereof shall be treated as assets of the Partnership to be applied as set forth in Section 13.2.A. 

        C.    Restoration of Deficit Capital Accounts Upon a Liquidation of a Partner's Interest by Transfer.    If a DRO
Partner's interest in the Partnership is "liquidated" within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) (other than in connection with a liquidation of the Partnership)
which term shall include a redemption by the Partnership of such DRO Partner's interest upon exercise of the Redemption Right, and such DRO Partner is designated on Exhibit E as Part II
DRO Partner, such DRO Partner shall be required to contribute cash to the Partnership equal to the lesser of (i) the amount required to increase its Capital Account balance as of such date to
zero, or (ii) such DRO Partner's DRO Amount. For this purpose, (i) the DRO Partner's deficit Capital Account balance shall be determined by taking into account all 

57

 

contributions,
distributions, and allocations for the portion of the Fiscal Year ending on the date of the liquidation or redemption, and (ii) solely for purposes of determining such DRO
Partner's Capital Account balance, the General Partner shall redetermine the Carrying Value of the Partnership's assets on such date based upon the principles set forth in Sections 1.D.(3) and
(4) of Exhibit B hereto, and shall take into account the DRO Partner's allocable share of any Unrealized Gain or Unrealized Loss resulting from such redetermination in determining the
balance of its Capital Account. The amount of any payment required hereunder shall be due and payable within the time period specified in the second to last sentence of Section 13.3.B. 

        D.    Effect of the Death of a DRO Partner.    After the death of a DRO Partner who is an individual, the executor of
the estate of such DRO Partner may elect to reduce (or eliminate) the DRO Amount of such DRO Partner. Such elections may be made by such executor by delivering to the General Partner within two
hundred and seventy (270) days of the death of such Limited Partner, a written notice setting forth the maximum deficit balance in its Capital Account that such executor agrees to restore under
this Section 13.3, if any. If such executor does not make a timely election pursuant to this Section 13.3 (whether or not the balance in the applicable Capital Account is negative at
such time), then the DRO Partner's estate (and the beneficiaries thereof who receive distributions of Partnership Interests
therefrom) shall be deemed a DRO Partner with a DRO Amount in the same amount as the deceased DRO Partner. Any DRO Partner which itself is a partnership for federal income tax purposes may likewise
elect, after the date of its partner's death to reduce (or eliminate) its DRO Amount by delivering a similar notice to the General Partner within the time period specified above, and in the absence of
any such notice the DRO Amount of such DRO Partner shall not be reduced to reflect the death of any of its partners. 

Section 13.4    Rights of Limited Partners  

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

Section 13.5    Notice of Dissolution  

        If a Liquidating Event occurs or an event occurs that would, but for provisions of an election or objection by one or more Partners pursuant to
Section 13.1, result in a dissolution of the Partnership, the General Partner shall, within thirty (30) days thereafter, provide written notice thereof to each of the Partners and to all
other parties with whom the Partnership regularly conducts business (as determined in the discretion of the General Partner). 

Section 13.6    Cancellation of Certificate of Limited Partnership  

        Upon the completion of the liquidation of the Partnership cash and property as provided in Section 13.2, the Partnership shall be terminated and the
Certificate of Limited Partnership and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than 

58

 

the
State of Delaware shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken. 

Section 13.7    Reasonable Time for Winding Up  

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

Section 13.8    Waiver of Partition  

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

Section 13.9    Liability Of Liquidator  

        The Liquidator shall be indemnified and held harmless by the Partnership in the same manner and to the same degree as an Indemnitee may be indemnified pursuant to
Section 7.7. 

 
 

ARTICLE XIV
  AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS    
    

Section 14.1    Amendments  

        A.    General.    Amendments to this Agreement may be proposed by the General Partner or by any Limited Partner
holding Partnership Interests representing twenty-five percent (25%) or more of the Percentage Interest of the Class A Units. Following such proposal (except an amendment governed
by Section 14.1.B), the General Partner shall submit any proposed amendment to the Limited Partners. The General Partner shall seek the written Consent of the Partners as set forth in this
Section 14.1 on the proposed amendment or shall call a meeting to vote thereon and to transact any other business that it may deem appropriate. For purposes of obtaining a written Consent, the
General Partner may require a response within a reasonable specified time, but not less than fifteen (15) days, and failure to respond in such time period shall constitute a vote in favor of
the recommendation of the General Partner. A proposed amendment shall be adopted and be effective as an amendment hereto if it is approved by the General Partner and, except as provided in
Section 14.1.B, 14.1.C or 14.1.D, it receives the Consent of the Partners holding Partnership Interests representing more than fifty percent (50%) of the Percentage Interest of the
Class A Units. 

        B.    Amendments Not Requiring Limited Partner Approval.    Notwithstanding Section 14.1.A but subject to
Section 14.1.C, the General Partner shall have the power, without the consent of the Limited Partners, to amend this Agreement as may be required to facilitate or implement any of the following
purposes: 

59

  

	(1)
	to
add to the obligations of the General Partner or surrender any right or power granted to the General Partner or any Affiliate of the General Partner for the benefit of the Limited
Partners;

	(2)
	to
reflect the admission, substitution, termination, or withdrawal of Partners in accordance with this Agreement (which may be affected through the replacement of the Partner Registry
with an amended Partner Registry);

	(3)
	to
set forth the designations, rights, powers, duties, and preferences of the holders of any additional Partnership Interests issued pursuant to Article IV;

	(4)
	to
reflect a change that does not adversely affect the Limited Partners in any material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not
inconsistent with law or with other provisions of this Agreement, or make other changes with respect to matters arising under this Agreement that will not be inconsistent with law or with the
provisions of this Agreement; and

	(5)
	to
satisfy any requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a federal, state or local agency or contained in federal,
state or local law. 

        The
General Partner shall notify the Limited Partners in writing when any action under this Section 14.1.B is taken in the next regular communication to the Limited Partners or
within 90 days of the date thereof, whichever is earlier. 

        C.    Amendments Requiring Limited Partner Approval (Excluding the General Partner).    Notwithstanding
Section 14.1.A, without the Consent of the Outside Limited Partners, the General Partner shall not amend Section 4.2.A, Section 5.1.E, Section 7.1.A (second sentence only),
Section 7.5, Section 7.6, Section 7.8, Section 7.11.B, Section 11.2, Section 13.1 (other than Section 13.1(ii) which can be amended only with a
Consent of Partners holding Partnership Interests representing 90% or more of the Percentage Interest of the Class A Units (including Partnership Units held by the General Partner)), the
last sentence of Section 11.4.A (provided that no such amendment shall in any event adversely affect the rights of any lender who made a loan or who extended credit and received in connection
therewith a pledge of Partnership Units prior to the date such amendment is adopted unless, and only to the extent such lender consents thereto), this Section 14.1.C or Section 14.2. 

        D.    Other Amendments Requiring Certain Limited Partner Approval.    Notwithstanding anything in this
Section 14.1 to the contrary, this Agreement shall not be amended with respect to any Partner adversely affected without the Consent of such Partner adversely affected, or any Assignee who is a
bona fide financial institution that loans money or otherwise extends credit to a holder of Partnership Units, adversely affected if such amendment would (i) convert such Limited Partner's
interest in the Partnership into a general partner's interest, (ii) modify the limited liability of such Limited Partner, (iii) amend Section 7.11.A, (iv) amend
Article V or Article VI (except as permitted pursuant to Sections 4.2, 5.1.E, 5.4, 6.2 and 14.1(B)(3)), (v) amend Section 8.6 or any defined terms set forth in
Article I that relate to the 

60

 

Redemption
Right (except as permitted in Section 8.6.E), or (vi) amend Sections 11.3 or 11.5, or add any additional restrictions to Section 11.6.E or amend
Section 14.1.B(4) or this Section 14.1.D. 

        E.    Amendment and Restatement of Partner Registry Not an Amendment.    Notwithstanding anything in this
Article XIV or elsewhere in this Agreement to the contrary, any amendment and restatement of the Partner Registry by the General Partner to reflect events or changes otherwise authorized or
permitted by this Agreement shall not be deemed an amendment of this Agreement and may be done at any time and from time to time, as determined by the General Partner without the Consent of the
Limited Partners and without any notice requirement. 

Section 14.2 Meetings of the Partners  

        A.    General.    Meetings of the Partners may be called by the General Partner and shall be called upon the receipt
by the General Partner of a written request by Limited Partners holding Partnership Interests representing twenty-five percent (25%) or more of the Percentage Interest of the
Class A Units. The call shall state the nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than
thirty (30) days prior to the date of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the vote or Consent of Partners is permitted or required under this
Agreement, such vote or Consent may be given at a meeting of Partners or may be given in accordance with the procedure prescribed in Section 14.1.A. Except as otherwise expressly provided in
this Agreement, the Consent of holders of Partnership Interests representing a majority of the Percentage Interests of the Class A Units shall control. 

        B.    Actions Without a Meeting.    Except as otherwise expressly provided by this Agreement, any action required or
permitted to be taken at a meeting of the Partners may be taken without a meeting if a written consent setting forth the action so taken is signed by Partners holding Partnership Interests
representing more than fifty percent (50%) (or such other percentage as is expressly required by this Agreement) of the Percentage Interest of the Class A Units. Such consent may be in one
instrument or in several instruments, and shall have the same force and effect as a vote of Partners. Such consent shall be filed with the General Partner. An action so taken shall be deemed to have
been taken at a meeting held on the date on which written consents from the Partners holding the required Percentage Interest of the Class A Units have been filed with the General Partner. 

        C.    Proxy.    Each Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in
which a Limited Partner is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited Partner or its
attorney-in-fact. No proxy shall be valid after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall be
revocable at the pleasure of the Limited Partner executing it, such revocation to be effective upon the Partnership's receipt of written notice thereof. 

        D.    Conduct of Meeting.    Each meeting of Partners shall be conducted by the General Partner or such other Person
as the General Partner may appoint pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deem appropriate. 

61

 
 
 

ARTICLE XV
  GENERAL PROVISIONS    
    

Section 15.1 Addresses and Notice  

        Any notice, demand, request or report required or permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and shall be
deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication to
the Partner or Assignee at the address set forth in the Partner Registry or such other address as the Partners shall notify the General Partner in writing. 

Section 15.2 Titles and Captions  

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

Section 15.3 Pronouns And Plurals  

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

Section 15.4 Further Action  

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

Section 15.5 Binding Effect  

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

Section 15.6 Creditors  

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

Section 15.7 Waiver  

        No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a 

62

 

breach
thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition. 

Section 15.8 Counterparts  

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

Section 15.9 Applicable Law  

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

Section 15.10 Invalidity Of Provisions  

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

Section 15.11 Power Of Attorney  

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

	(1)
	execute,
swear to, acknowledge, deliver, file and record in the appropriate public offices (a) all certificates, documents and other instruments (including, without limitation,
this Agreement and the Certificate of Limited Partnership and all amendments or restatements thereof) that the General Partner or any Liquidator deems appropriate or necessary to form, qualify or
continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and in all other
jurisdictions in which the Partnership may conduct business or own property, (b) all instruments that the General Partner or any Liquidator deem appropriate or necessary to reflect any
amendment, change, modification or restatement of this Agreement in accordance with its terms, (c) all conveyances and other instruments or documents that the General Partner or any Liquidator
deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including, without limitation, a certificate of cancellation,
(d) all instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other events described in, Article XI, XII or XIII hereof or the Capital
Contribution of any 

63

 

Partner
and (e) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; and 

	(2)
	execute,
swear to, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of
the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action which is made or given by the Partners hereunder or is
consistent with the terms of this Agreement or appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to effectuate the terms or intent of this
Agreement. 

        Nothing
contained in this Section 15.11 shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except in accordance with
Article XIV hereof or as may be otherwise expressly provided for in this Agreement. 

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

Section 15.12 Entire Agreement  

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

Section 15.13 No Rights As Shareholders  

        Nothing contained in this Agreement shall be construed as conferring upon the holders of the Partnership Units any rights whatsoever as shareholders of 

64

 

the
General Partner, including, without limitation, any right to receive dividends or other distributions made to shareholders of the General Partner or to vote or to consent or receive notice as
shareholders in respect to any meeting of shareholders for the election of trustees of the General Partner or any other matter. 

Section 15.14 Limitation To Preserve REIT Status  

        To the extent that any amount paid or credited to the General Partner or any of its officers, trustees, employees or agents pursuant to Section 7.4 or
Section 7.7 would constitute gross income to the General Partner for purposes of Section 856(c)(2) or 856(c)(3) of the Code (a "General Partner Payment") then, notwithstanding any other
provision of this Agreement, the amount of such General Partner Payment for any fiscal year shall not exceed the lesser of: 

	(i)
	an
amount equal to the excess, if any, of (a) 4% of the General Partner's total gross income (within the meaning of Section 856(c)(3) of the Code but not
including the amount of any General Partner Payments) for the fiscal year which is described in subsections (A) though (H) of Section 856(c)(2) of the Code over (b) the
amount of gross income (within the meaning of Section 856(c)(2) of the Code) derived by the General Partner from sources other than those described in subsections (A) through
(H) of Section 856(c)(2) of the Code (but not including the amount of any General Partner Payments); or

	(ii)
	an
amount equal to the excess, if any of (a) 24% of the General Partner's total gross income (but not including the amount of any General Partner Payments) for
the fiscal year which is described in subsections (A) through (I) of Section 856(c)(3) of the Code over (b) the amount of gross income (within the meaning of
Section 856(c)(3) of the Code but not including the amount of any General Partner Payments) derived by the General Partner from sources other than those described in subsections
(A) through (I) of Section 856(c)(3) of the Code; provided, however, that General Partner Payments in excess of the amounts set forth in subparagraphs (i) and
(ii) above may be made if the General Partner, as a condition precedent, obtains an opinion of tax counsel that the receipt of such excess amounts would not adversely affect the General
Partner's ability to qualify as a REIT. To the extent General Partner Payments may not be made in a year due to the foregoing limitations, such General Partner Payments shall carry over and be treated
as arising in the following year, provided, however, that such amounts shall not carry over for more than five years, and if not paid within such five year period, shall expire; provided further, that
(i) as General Partner Payments are made, such payments shall be applied first to carry over amounts outstanding, if any, and (ii) with respect to carry over amounts for more than one
Fiscal Year, such payments shall be applied to the earliest Fiscal Year first. 

65

   
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

	

 	
 	

GENERAL PARTNER:
	

 	
 	

KITE REALTY GROUP TRUST
	

 	
 	

By:	

	

 	
 	

Name:	

	

 	
 	

Title:	

	

 	
 	

 	

 
	

 	
 	

LIMITED PARTNERS:
	

 	
 	

By:	

Kite Realty Group Trust,

as Attorney-in-Fact for the

Limited Partners
	

 	
 	

By:	

	

 	
 	

Name:	

	

 	
 	

Title:	

	

 	
 	

For purposes of Section 8.6 hereof:
	

 	
 	

KITE REALTY GROUP TRUST
	

 	
 	

By:	

	

 	
 	

Name:	

	

 	
 	

Title:	

66

   EXHIBIT A

FORM OF PARTNER REGISTRY

	 
	 	CLASS A AND CLASS B UNITS
	 
	Name And Address Of Partner
 
	 	Partnership

Units
	 	Initial

Capital

Account
	 	Percentage

Interest (1)
	 
	GENERAL PARTNER:	 	 	 	 	 	 	 
	Kite Realty Group Trust	 	 	 	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 	
 
	

 	
 	

 	
 	

 	
 	

 	
 
	

 	
 	

 	
 	

 	
 	

 	
 
	

 	
 	

 	
 	

 	
 	

 	
 
	

 	
 	

 	
 	

 	
 	

 	
 
	LIMITED PARTNERS:	 	 	 	 	 	 	 
	

 	
 	

 	
 	

 	
 	

 	
 
	

 	
 	

 	
 	

 	
 	

 	
 
	TOTAL CLASS A AND CLASS B UNITS	 	 	 	 	 	100.00000	%

NOTES:

	(1)
	For
purposes of this calculation, the Class A Units and Class B Units are treated as one class. 

A-1

   EXHIBIT B

CAPITAL ACCOUNT MAINTENANCE

1.     Capital Accounts of the Partners  

        A.    The Partnership shall maintain for each Partner a separate Capital Account in accordance with the rules of Regulations
Section l.704-l(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of all Capital Contributions and any other deemed contributions made by such Partner to
the Partnership pursuant to this Agreement and (ii) all items of Partnership income and gain (including income and gain exempt from tax) computed in accordance with Section 1.B hereof
and allocated to such Partner pursuant to Section 6.1 of the Agreement and Exhibit C thereof, and decreased by (x) the amount of cash or Agreed Value of all actual and deemed
distributions of cash or property made to such Partner pursuant to this Agreement and (y) all items of Partnership deduction and loss computed in accordance with Section 1.B hereof and
allocated to such Partner pursuant to Section 6.1 of the Agreement and Exhibit C thereof. 

        B.    For
purposes of computing the amount of any item of income, gain, deduction or loss to be reflected in the Partners' Capital Accounts, unless otherwise specified in this
Agreement, the determination, recognition and classification of any such item shall be the same as its determination, recognition and classification for federal income tax purposes determined in
accordance with Section 703(a) of the Code (for this purpose all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a) (1) of the
Code shall be included in taxable income or loss), with the following adjustments: 

        (1)    Except
as otherwise provided in Regulations Section 1.704-1(b)(2)(iv)(m), the computation of all items of income, gain, loss and deduction shall be
made without regard to any election under Section 754 of the Code which may be made by the Partnership, provided that the amounts of any adjustments to the adjusted bases of the assets of the
Partnership made pursuant to Section 734 of the Code as a result of the distribution of property by the Partnership to a Partner (to the extent that such adjustments have not previously been
reflected in the Partners' Capital Accounts) shall be reflected in the Capital Accounts of the Partners in the manner and subject to the limitations prescribed in Regulations
Section l.704-1(b)(2)(iv)(m)(4). 

        (2)    The
computation of all items of income, gain, and deduction shall be made without regard to the fact that items described in Sections 705(a)(l)(B) or 705(a)(2)(B) of the
Code are not includible in gross income or are neither currently deductible nor capitalized for federal income tax purposes. 

        (3)    Any
income, gain or loss attributable to the taxable disposition of any Partnership property shall be determined as if the adjusted basis of such property as of such
date of disposition were equal in amount to the Partnership's Carrying Value with respect to such property as of such date. 

B-1

 

        (4)    In
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into
account Depreciation for such fiscal year. 

        (5)    In
the event the Carrying Value of any Partnership Asset is adjusted pursuant to Section 1.D hereof, the amount of any such adjustment shall be taken into account
as gain or loss from the disposition of such asset. 

        (6)    Any
items specially allocated under Section 2 of Exhibit C to the Agreement hereof shall not be taken into account. 

        C.    A
transferee (including any Assignee) of a Partnership Unit shall succeed to a pro rata portion of the Capital Account of the transferor. 

        D.    (1)    Consistent
with the provisions of Regulations Section 1.704-1(b)(2)(iv)(f), and as provided in Section 1.D(2), the Carrying
Values of all Partnership assets shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the times of the adjustments
provided in Section 1.D(2) hereof, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such property and allocated pursuant to Section 6.1 of the
Agreement. 

                (2)    Such
adjustments shall be made as of the following times: (a) immediately prior to the acquisition of an additional interest in the Partnership by
any new or existing Partner in exchange for more than a de minimis Capital Contribution; (b) immediately prior to the distribution by the
Partnership to a Partner
of more than a de minimis amount of property as consideration for an interest in the Partnership; and (c) immediately prior to the liquidation of
the Partnership within the meaning of Regulations Section 1.704-l(b)(2)(ii)(g), provided, however, that adjustments pursuant to clauses (a) and (b) above shall be made
only if the General Partner determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership. 

                (3)    In
accordance with Regulations Section 1.704- l(b)(2)(iv)(e), the Carrying Value of Partnership assets distributed in kind shall be
adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the time any such asset is distributed. 

                (4)    In
determining Unrealized Gain or Unrealized Loss for purposes of this Exhibit B, the aggregate cash amount and fair market value of all Partnership
assets (including cash or cash equivalents) shall be determined by the General Partner using such reasonable method of valuation as it may adopt, or in the case of a liquidating distribution pursuant
to Article XIII of the Agreement, shall be determined and allocated by the Liquidator using such reasonable methods of valuation as it may adopt. The General Partner, or the Liquidator, as the
case may be, shall allocate such aggregate fair market value among the assets of the Partnership in such manner as it determines in its sole and absolute discretion to arrive at a fair market value
for individual properties. 

        E.    The
provisions of the Agreement (including this Exhibit B and the other Exhibits to the Agreement) relating to the maintenance of Capital Accounts are intended to
comply with 

B-2

 

Regulations
Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. In the event the General Partner shall determine that it is
prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are secured by contributed
or distributed property or which are assumed by the Partnership, the General Partner, or the Limited Partners) are computed in order to comply with such Regulations, the General Partner may make such
modification without regard to Article XIV of the Agreement, provided that it is not likely to have a material effect on the amounts distributable to any Person pursuant to Article XIII
of the Agreement upon the dissolution of the Partnership. The General Partner also shall (i) make any adjustments that are necessary or appropriate to maintain equality between the Capital
Accounts of the Partners and the amount of Partnership capital reflected on the Partnership's balance sheet, as computed for book purposes, in accordance with Regulations
Section l.704-l(b)(2)(iv)(q), and (ii) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with
Regulations Section l.704-1(b). 

2.     No Interest  

        No interest shall be paid by the Partnership on Capital Contributions or on balances in Partners' Capital Accounts. 

3.     No Withdrawal  

        No Partner shall be entitled to withdraw any part of its Capital Contribution or Capital Account or to receive any distribution from the Partnership, except as
provided in Articles IV, V, VII and XIII of the Agreement. 

B-3

   EXHIBIT C

SPECIAL ALLOCATION RULES

1.     Special Allocation Rules.  

        Notwithstanding any other provision of the Agreement or this Exhibit C, the following special allocations shall be made in the following order: 

        A.    Minimum
Gain Chargeback. Notwithstanding the provisions of Section 6.1 of the Agreement or any other provisions of this
Exhibit C, if there is a net decrease in Partnership Minimum Gain during any Fiscal Year, each Partner shall be specially allocated items of Partnership income and gain for such year (and, if
necessary, subsequent years) in an amount equal to such Partner's share of the net decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g).
Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be
determined in accordance with Regulations Section 1.704-2(f)(6). This Section 1.A is intended to comply with the minimum gain chargeback requirements in Regulations
Section 1.704-2(f) and for purposes of this Section 1.A only, each Partner's Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant to
Section 6.1 of this Agreement with respect to such Fiscal Year and without regard to any decrease in Partner Minimum Gain during such Fiscal Year. 

        B.    Partner
Minimum Gain Chargeback. Notwithstanding any other provision of Section 6.1 of this Agreement or any other provisions of this
Exhibit C (except Section 1.A hereof), if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Fiscal Year, each Partner who has a share
of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of
Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner's share of the net decrease in Partner Minimum Gain attributable to such Partner
Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5). Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each General Partner and Limited
Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(i)(4). This Section 1.B is intended to comply with
the minimum gain chargeback requirement in such Section of the Regulations and shall be interpreted consistently therewith. Solely for purposes of this Section 1.B, each Partner's Adjusted
Capital Account Deficit shall be determined prior to any other allocations pursuant to Section 6.1 of the Agreement or this Exhibit with respect to such Fiscal Year, other than allocations
pursuant to Section 1.A hereof. 

        C.    Qualified
Income Offset. In the event any Partner unexpectedly receives any adjustments, allocations or distributions described in
Regulations Sections 1.704-l(b)(2)(ii)(d)(4), l.704-1(b)(2)(ii)(d)(5), or 1.704-l(b)(2)(ii)(d)(6), and after giving effect to the allocations required under
Sections 1.A and 1.B hereof with respect to such Fiscal Year, such Partner has an Adjusted Capital Account Deficit, items of Partnership income and gain (consisting of a pro rata portion of each item
of Partnership income, including gross income and gain for the Fiscal Year) 

C-1

 

shall
be specifically allocated to such Partner in an amount and manner sufficient to eliminate, to the extent required by the Regulations, its Adjusted Capital Account Deficit created by such
adjustments, allocations or distributions as quickly as possible. This Section 1.C is intended to constitute a "qualified income offset" under Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

        D.    Gross
Income Allocation. In the event that any Partner has an Adjusted Capital Account Deficit at the end of any Fiscal Year (after taking
into account allocations to be made under the preceding paragraphs hereof with respect to such Fiscal Year), each such Partner shall be specially allocated items of Partnership income and gain
(consisting of a pro rata portion of each item of Partnership income, including gross income and gain for the Fiscal Year) in an amount and manner sufficient to eliminate, to the extent required by
the Regulations, its Adjusted Capital Account Deficit. 

        E.    Nonrecourse
Deductions. Except as may otherwise be expressly provided by the General Partner pursuant to Section 4.2 with respect to
other classes of Partnership Units, Nonrecourse Deductions for any Fiscal Year shall be allocated only to the Partners holding Class A Units and Class B Units in accordance with their
respective Percentage Interests. If the General Partner determines in its good faith discretion that the Partnership's Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe
harbor requirements of the Regulations promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice to the Limited Partners, to revise the prescribed ratio for
such Fiscal Year to the numerically closest ratio which would satisfy such requirements. 

        F.    Partner
Nonrecourse Deductions. Any Partner Nonrecourse Deductions for any Fiscal Year shall be specially allocated to the Partner who bears
the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Regulations Sections 1.704-2(b)(4)
and 1.704-2(i). 

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

2.     Allocations for Tax Purposes  

        A.    Except as otherwise provided in this Section 2, for federal income tax purposes, each item of income, gain, loss and deduction shall be
allocated among the Partners in the same manner as its correlative item of "book" income, gain, loss or deduction is allocated pursuant to Section 6.1 of the Agreement and Section 1 of
this Exhibit C. 

C-2

 

        B.
In an attempt to eliminate Book-Tax Disparities attributable to a Contributed Property or Adjusted Property, items of income, gain, loss, and deduction shall be allocated
for federal income tax purposes among the Partners as follows: 

        (1)    (a)    In
the case of a Contributed Property, such items attributable thereto shall be allocated among the Partners consistent with the principles of
Section 704(c) of the Code to take into account the variation between the Section 704(c) Value of such property and its adjusted basis at the time of contribution (taking into account
Section 2.C of this Exhibit C); and 

        (b)    any
item of Residual Gain or Residual Loss attributable to a Contributed Property shall be allocated among the Partners in the same manner as its correlative item of
"book" gain or loss is allocated pursuant to Section 6.1 of the Agreement and Section 1 of this Exhibit C. 

                (2)    (a)    In
the case of an Adjusted Property, such items shall 

        (i)    first,
be allocated among the Partners in a manner consistent with the principles of Section 704(c) of the Code to take into account the Unrealized Gain or
Unrealized Loss attributable to such property and the allocations thereof pursuant to Exhibit B; 

        (ii)    second,
in the event such property was originally a Contributed Property, be allocated among the Partners in a manner consistent with Section 2.B(1) of this
Exhibit C; and 

        (b)    any
item of Residual Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the Partners in the same manner its correlative item of "book"
gain or loss is allocated pursuant to Section 6.1 of the Agreement and Section 1 of this Exhibit C. 

        (3)    all
other items of income, gain, loss and deduction shall be allocated among the Partners the same manner as their correlative item of "book" gain or loss is allocated
pursuant to Section 6.1 of the Agreement and Section 1 of this Exhibit C. 

        C.    To
the extent Regulations promulgated pursuant to Section 704(c) of the Code permit a Partnership to utilize alternative methods to eliminate the disparities
between the Carrying Value of property and its adjusted basis, the General Partner shall, subject to any agreements between the Partnership and a Partner, have the authority to elect the method to be
used by the Partnership and such election shall be binding on all Partners. 

C-3

   EXHIBIT D

NOTICE OF REDEMPTION

        The
undersigned hereby irrevocably (i) redeems                        Partnership Units in Kite Realty Group, L.P. in accordance
with the terms of the Agreement of Limited Partnership of
Kite Realty Group, L.P., as amended, and the Redemption Right referred to therein, (ii) surrenders such Partnership Units and all right, title and interest therein and (iii) directs that
the Cash Amount or Shares Amount (as determined by the General Partner) deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if Shares are to be
delivered, such Shares be registered or placed in the name(s) and at the address(es) specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has
marketable and unencumbered title to such Partnership Units, free and clear of the rights of or interests of any other person or entity, (b) has the full right, power and authority to redeem
and surrender such Partnership Units as provided herein and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consult or approve such redemption
and surrender. 

	Dated:  
	 	Name of Limited Partner:
	

 	
 	

 
	

 	
 	

 (Signature of Limited Partner)
	

 	
 	

 
	

 	
 	

 (Street Address)
	

 	
 	

 
	

 	
 	

 (City)                (State)
                (Zip Code)
	

 	
 	

 
	 	 	Signature Guaranteed by:
	

 	
 	

 
	

 	
 	

	

 	
 	

 
	IF SHARES ARE TO BE ISSUED, ISSUE TO:	 	 
	

 	
 	

 
	

Name:  
	
 	

 
	

 	
 	

 
	

Social Security or tax identifying number:  

D-1

   EXHIBIT E

FORM OF DRO REGISTRY

	PART I DRO PARTNERS	 	DRO AMOUNT
	

 	
 	

 
	

PART II DRO PARTNERS	
 	

 

E-1

QuickLinks

TABLE OF CONTENTS

FORM OF AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF KITE REALTY GROUP, L.P.

ARTICLE II ORGANIZATIONAL MATTERS

ARTICLE III PURPOSE

ARTICLE IV CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS

ARTICLE V DISTRIBUTIONS

ARTICLE VI ALLOCATIONS

ARTICLE VII MANAGEMENT AND OPERATIONS OF BUSINESS

ARTICLE VIII RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

ARTICLE IX BOOKS, RECORDS, ACCOUNTING AND REPORTS

ARTICLE X TAX MATTERS

ARTICLE XI TRANSFERS AND WITHDRAWALS

ARTICLE XII ADMISSION OF PARTNERS

ARTICLE XIII DISSOLUTION AND LIQUIDATION

ARTICLE XIV AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS

ARTICLE XV GENERAL PROVISIONS

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